Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MX | |
Entity Registrant Name | MAGNACHIP SEMICONDUCTOR Corp | |
Entity Central Index Key | 1,325,702 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,377,293 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 123,136 | $ 128,575 |
Accounts receivable, net | 88,854 | 92,026 |
Unbilled accounts receivable | 39,161 | |
Inventories, net | 56,658 | 73,073 |
Other receivables | 7,885 | 4,292 |
Prepaid expenses | 13,807 | 9,250 |
Hedge collateral (Note 7) | 2,700 | 7,600 |
Other current assets (Notes 8 and 18) | 11,972 | 15,444 |
Total current assets | 344,173 | 330,260 |
Property, plant and equipment, net | 205,076 | 205,903 |
Intangible assets, net | 4,290 | 4,061 |
Long-term prepaid expenses | 14,306 | 12,791 |
Deferred income tax assets | 312 | 264 |
Other non-current assets | 6,511 | 5,510 |
Total assets | 574,668 | 558,789 |
Current liabilities | ||
Accounts payable | 69,540 | 65,940 |
Other accounts payable | 10,023 | 10,261 |
Accrued expenses | 44,908 | 51,746 |
Deferred revenue | 13,202 | 8,335 |
Other current liabilities | 1,296 | 1,860 |
Total current liabilities | 138,969 | 138,142 |
Long-term borrowings, net | 303,948 | 303,416 |
Accrued severance benefits, net | 151,889 | 148,905 |
Other non-current liabilities | 9,796 | 7,963 |
Total liabilities | 604,602 | 598,426 |
Commitments and contingencies (Note 18) | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 150,000,000 shares authorized, 42,749,168 shares issued and 34,374,959 outstanding at March 31, 2018 and 42,563,808 shares issued and 34,189,599 outstanding at December 31, 2017 | 428 | 426 |
Additional paid-in capital | 137,869 | 136,259 |
Accumulated deficit | (29,642) | (40,889) |
Treasury stock, 8,374,209 shares at March 31, 2018 and December 31, 2017, respectively | (102,319) | (102,319) |
Accumulated other comprehensive loss | (36,270) | (33,114) |
Total stockholders' deficit | (29,934) | (39,637) |
Total liabilities and stockholders' equity | $ 574,668 | $ 558,789 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 42,749,168 | 42,563,808 |
Common stock, shares outstanding | 34,374,959 | 34,189,599 |
Treasury stock, shares | 8,374,209 | 8,374,209 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 165,819 | $ 161,710 |
Cost of sales | 121,238 | 120,140 |
Gross profit | 44,581 | 41,570 |
Operating expenses | ||
Selling, general and administrative expenses | 17,622 | 23,148 |
Research and development expenses | 19,580 | 17,958 |
Restructuring and other gain | (17,010) | |
Early termination charges | 11,107 | |
Total operating expenses | 37,202 | 35,203 |
Operating income | 7,379 | 6,367 |
Interest expense | (5,463) | (5,173) |
Foreign currency gain, net | 1,318 | 41,786 |
Other income, net | 519 | 1,611 |
Income before income taxes | 3,753 | 44,591 |
Income tax expenses | 990 | 853 |
Net income | $ 2,763 | $ 43,738 |
Earnings per common share- | ||
Basic | $ 0.08 | $ 1.30 |
Diluted | $ 0.08 | $ 1.05 |
Weighted average number of shares- | ||
Basic | 34,253,111 | 33,662,297 |
Diluted | 35,154,693 | 42,892,044 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,763 | $ 43,738 |
Other comprehensive loss | ||
Foreign currency translation adjustments | (483) | (35,324) |
Derivative adjustments | ||
Fair valuation of derivatives | (67) | 2,503 |
Reclassification adjustment for gain on derivatives included in net income | (2,606) | (497) |
Total other comprehensive loss | (3,156) | (33,318) |
Total comprehensive income (loss) | $ (393) | $ 10,420 |
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 Loss [Member] |
Balance, beginning at Dec. 31, 2016 | $ (72,114) | $ 416 | $ 130,189 | $ (125,825) | $ (90,918) | $ 14,024 | |
Balance, Shares beginning at Dec. 31, 2016 | 35,048,338 | ||||||
Stock-based compensation | 830 | 830 | |||||
Exercise of stock options | 1,689 | 2 | 1,687 | ||||
Exercise of stock options, Shares | 233,802 | ||||||
Settlement of restricted stock units | 1 | (1) | |||||
Settlement of restricted stock units, Shares | 66,992 | ||||||
Acquisition of treasury stock | $ (11,401) | (11,401) | |||||
Acquisition of treasury stock, Shares | (1,795,444) | (1,795,444) | |||||
Other comprehensive loss, net | $ (33,318) | (33,318) | |||||
Net income | 43,738 | 43,738 | |||||
Balance, ending at Mar. 31, 2017 | (70,576) | 419 | 132,705 | (82,087) | (102,319) | (19,294) | |
Balance, Shares ending at Mar. 31, 2017 | 33,553,688 | ||||||
Balance, beginning at Dec. 31, 2017 | (39,637) | 426 | 136,259 | (40,889) | (102,319) | (33,114) | |
Impact of adopting the new revenue standard at Dec. 31, 2017 | 8,484 | 8,484 | |||||
Balance as adjusted, beginning at Dec. 31, 2017 | $ (31,153) | 426 | 136,259 | (32,405) | (102,319) | (33,114) | |
Balance, Shares beginning at Dec. 31, 2017 | 34,189,599 | 34,189,599 | |||||
Stock-based compensation | $ 1,469 | 1,469 | |||||
Exercise of stock options | 143 | 1 | 142 | ||||
Exercise of stock options, Shares | 21,894 | ||||||
Settlement of restricted stock units | 1 | (1) | |||||
Settlement of restricted stock units, Shares | 163,466 | ||||||
Other comprehensive loss, net | (3,156) | (3,156) | |||||
Net income | 2,763 | 2,763 | |||||
Balance, ending at Mar. 31, 2018 | $ (29,934) | $ 428 | $ 137,869 | $ (29,642) | $ (102,319) | $ (36,270) | |
Balance, Shares ending at Mar. 31, 2018 | 34,374,959 | 34,374,959 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 2,763 | $ 43,738 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 7,958 | 6,758 |
Provision for severance benefits | 4,512 | 7,386 |
Amortization of debt issuance costs and original issue discount | 532 | 446 |
Gain on foreign currency, net | (1,682) | (49,059) |
Restructuring and other gain | (17,010) | |
Stock-based compensation | 1,469 | 830 |
Other | (337) | 1,185 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | 3,115 | (15,734) |
Unbilled accounts receivable | (639) | |
Inventories, net | (13,150) | 1,077 |
Other receivables | (3,746) | (296) |
Other current assets | (1,071) | (1,155) |
Accounts payable | 3,168 | 1,814 |
Other accounts payable | (2,759) | (3,499) |
Accrued expenses | (7,129) | (7,128) |
Deferred revenue | 4,809 | (73) |
Other current liabilities | (570) | (212) |
Other non-current liabilities | 618 | (62) |
Payment of severance benefits | (2,247) | (7,524) |
Other | 465 | (162) |
Net cash used in operating activities | (3,921) | (38,680) |
Cash flows from investing activities | ||
Proceeds from settlement of hedge collateral | 4,863 | 2,164 |
Payment of hedge collateral | (4,452) | |
Proceeds from disposal of plant, property and equipment | 581 | |
Purchase of plant, property and equipment | (7,329) | (5,368) |
Payment for intellectual property registration | (409) | (216) |
Collection of guarantee deposits | 14 | 295 |
Payment of guarantee deposits | (41) | |
Other | (36) | 20 |
Net cash used in investing activities | (2,897) | (7,017) |
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 | 142 | 1,689 |
Acquisition of treasury stock | (11,401) | |
Net cash provided by financing activities | 142 | 70,636 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 1,237 | 6,082 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (5,439) | 31,021 |
Cash, cash equivalents and restricted cash | ||
Beginning of the period | 128,575 | 101,606 |
End of the period | 123,136 | 132,627 |
Supplemental cash flow information | ||
Cash paid for interest | 9,609 | 7,980 |
Cash paid for income taxes | 6 | 708 |
Non-cash investing activities | ||
Property, plant and equipment additions in other accounts payable | $ 1,202 | $ 1,643 |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation and Significant Accounting Policies | 1. Business, Basis of Presentation and Significant Accounting Policies Business MagnaChip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, Internet of Things (“IoT”) applications, consumer, industrial and automotive applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). These interim consolidated financial statements include normal recurring adjustments and the elimination of all intercompany accounts and transactions which are, in the opinion of management, necessary to provide a fair statement of the Company’s financial condition and results of operations for the periods presented. These interim consolidated financial statements are presented in accordance with Accounting Standards Codification 270, “Interim Reporting” The December 31, 2017 balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by US GAAP. Upon the adoption of Accounting Standards Update No. 2014-09, Revenue Recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Revenue is measured based on a consideration specified in a contract with a customer in exchange for such product or service. The Foundry Services Group of the Company manufactures products based on customers’ specific product designs. The Company recognizes revenue over time for those foundry products without alternative use where the Company has an enforceable right to payment for the related foundry services completed to date. The revenue recognized over time is in proportion of wafer manufacturing costs incurred relative to total estimated costs at completion to measure the Company’s performance to date. However, in certain circumstances, the Company may not have an enforceable right to payment for performed foundry services pursuant to a customer contract or an individual purchase order. In this situation, the Company recognizes revenue when a customer obtains control of the product, which is generally upon product shipment, delivery at the customer’s location or upon customer acceptance, depending on the terms of the arrangement. The Standards Products Group of the Company sells products manufactured based on the Company’s design. The Standard Products Group’s products are either standardized with an alternative use or the Company does not have an enforceable right to payment for the related manufacturing services completed to date. For those products, revenue is recognized when a customer obtains control of the product, which is generally upon product shipment, delivery at the customer’s location or upon customer acceptance, depending on the terms of the arrangement. A portion of the Company’s sales are made through distributors for which the Company applies the same revenue recognition guidance as described above. The Company defers recognition of revenue when it receives cash from certain customers and distributors for the sale of products prior to obtaining an enforceable right to payment for performance completed to date or control of the product being transferred to the customer. In accordance with revenue recognition guidance, any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction, and that is collected by the Company from a customer, is excluded from revenue and presented in the statement of operations on a net basis. 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), cash discounts for early payments, volume rebate 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. Substantially all of the Company’s contracts are one year or less in duration. The standard payment terms with customers is generally thirty to sixty days from the time of shipment, product delivery at the customer’s location or customer acceptance, depending on the terms of the related arrangement. Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2018-02 2018-02”). 2018-02 2018-02 In August 2017, the FASB issued Accounting Standards Update No. 2017-12, 2017-12”). 2017-12 2017-12 2017-12 In July 2017, the FASB issued Accounting Standards Update No. 2017-11, (“ASU 2017-11”), 2017-11 2017-11 In February 2016, the FASB issued Accounting Standards Update No. 2016-02, 2016-02”) 2016-02 right-of-use 2016-02 2018-01, 2018-01”). 2018-01 2016-02 Recently Adopted Accounting Pronouncements In May 2017, the FASB issued Accounting Standards Update No. 2017-09, 2017-09”). 2017-09 ASU 2017-09 2017-09 In November 2016, the FASB issued ASU 2016-18, 2016-18”). 2016-18 2016-18 6-inch 2016-18, 2016-18 In August 2016, the FASB issued Accounting Standards Update No. 2016-15, 2016-15”). 2016-15 2016-15 2016-15 In May 2014, the FASB issued ASU 2014-09. 2014-09 2014-09 2016-08, 2016-10, ASU 2016-12, 2016-20, 2016-08, 2016-10, 2016-12 2016-20 2014-09 Prior to the adoption of the new revenue standard effective on January 1, 2018, the Company had historically recognized revenue when risk and reward of ownership pass to the customer either upon shipment, upon product delivery at the customer’s location or upon customer acceptance, depending on the terms of the related arrangement. After the adoption of the new revenue standard effective on January 1, 2018, the Company recognizes revenue over time for those foundry products without alternative use where the Company has an enforceable right to payment for the related foundry services completed to date. As the Company adopted the new revenue standard using the modified retrospective method, it recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the Company’s equity as of January 1, 2018, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for such period. The cumulative-effect adjustments increased unbilled accounts receivable by $38,307 thousand and decreased inventories, net by $29,823 thousand, resulting in a net increase of $8,484 thousand in the Company’s beginning equity as of January 1, 2018. There was no net income tax impact from those cumulative-effect adjustments due to full allowance on deferred tax assets. Of the recorded unbilled accounts receivable of $38,307 thousand as of January 1, 2018, $32,269 thousand were billed to customers upon shipment, upon product delivery or upon customer acceptance, depending on the terms of the related arrangement, during the three months ended March 31, 2018. Of the recorded deferred revenue of $8,335 thousand as of December 31, 2017, $1,086 thousand was recognized as revenue during the three months ended March 31, 2018. The impacts of adopting the new revenue standard on the Company’s consolidated financial statements for the three months ended March 31, 2018 are as follows (in thousands): As of March 31, 2018 As Reported Adjustments Amounts Without (In thousands of US dollars, except share data) Assets Current assets Unbilled accounts receivable $ 39,161 $ 39,161 $ — Inventories, net 56,658 (30,045 ) 86,703 Total current assets 344,173 9,116 335,057 Total assets 574,668 9,116 565,552 Liabilities and Stockholders’ Equity Stockholders’ equity Retained earnings (accumulated deficit) (29,642 ) 9,063 (38,705 ) Accumulated other comprehensive income (loss) (36,270 ) 53 (36,323 ) Total stockholders’ equity (deficit) (29,934 ) 9,116 (39,050 ) Total liabilities and stockholders’ deficit $ 574,668 $ 9,116 $ 565,552 Unbilled accounts receivable represents the Company’s contractual right to consideration for manufacturing work performed on a customer contract or an individual purchase order basis, which has not been invoiced to the customer. Three Months Ended March 31, 2018 As Reported Adjustments Amounts Without (In thousands of US dollars, except share data) Net sales $ 165,819 $ 639 $ 165,180 Cost of sales 121,238 60 121,178 Gross profit 44,581 579 44,002 Operating income 7,379 579 6,800 Income before income tax expenses 3,753 579 3,174 Net income $ 2,763 $ 579 $ 2,184 Earnings per common share— Basic $ 0.08 $ 0.02 $ 0.06 Diluted $ 0.08 $ 0.02 $ 0.06 |
Sales of Accounts Receivable an
Sales of Accounts Receivable and Receivable Discount Program | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Sales of Accounts Receivable and Receivable Discount Program | 2. Sales of Accounts Receivable and Receivable Discount Program The Company has entered into an agreement to sell selected trade accounts receivable to a financial institution from time to time since March 2012. After the sale, the Company does not retain any interest in the receivables and the applicable financial institution collects these accounts receivable directly from the customer. The proceeds from the sales of these accounts receivable totaled $3,662 thousand and $6,080 thousand for the three months ended March 31, 2018 and 2017, respectively, and these sales resulted in pre-tax The Company uses receivable discount programs with certain customers. These discount arrangements allow the Company to accelerate collection of customers’ receivables. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories as of March 31, 2018 and December 31, 2017 consist of the following (in thousands): March 31, 2018 December 31, 2017 Finished goods $ 10,136 $ 13,737 Semi-finished goods and work-in-process 35,646 53,148 Raw materials 14,823 12,445 Materials in-transit 724 134 Less: inventory reserve (4,671 ) (6,391 ) Inventories, net $ 56,658 $ 73,073 Changes in inventory reserve for the three months ended March 31, 2018 and 2017 are as follows (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Beginning balance $ (6,391 ) $ (7,177 ) Inventory reserve charged to costs of sales (1,620 ) (1,624 ) Sale of previously reserved inventory 831 1,260 (789 ) (364 ) Write off 2,530 175 Translation adjustments (21 ) (600 ) Ending balance $ (4,671 ) $ (7,966 ) 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. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Property, plant and equipment as of March 31, 2018 and December 31, 2017 are comprised of the following (in thousands): March 31, 2018 December 31, 2017 Buildings and related structures $ 70,302 $ 69,958 Machinery and equipment 314,217 308,713 Others 44,598 42,497 429,117 421,168 Less: accumulated depreciation (240,206 ) (231,356 ) Land 16,165 16,091 Property, plant and equipment, net $ 205,076 $ 205,903 Aggregate depreciation expenses totaled $7,757 thousand and $6,616 thousand for the three months ended March 31, 2018 and 2017, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets Intangible assets as of March 31, 2018 and December 31, 2017 are comprised of the following (in thousands): March 31, 2018 Gross amount Accumulated amortization Net amount Technology $ 20,287 $ (20,287 ) $ — Customer relationships 29,135 (29,135 ) — Intellectual property assets 11,773 (7,483 ) 4,290 Intangible assets, net $ 61,195 $ (56,905 ) $ 4,290 December 31, 2017 Gross amount Accumulated amortization Net amount 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 Aggregate amortization expenses for intangible assets totaled $201 thousand and $142 thousand for the three months ended March 31, 2018 and 2017, respectively. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses as of March 31, 2018 and December 31, 2017 are comprised of the following (in thousands): March 31, 2018 December 31, 2017 Payroll, benefits and related taxes, excluding severance benefits $ 15,840 $ 16,724 Withholding tax attributable to intercompany interest income 18,322 18,138 Interest on senior notes 3,463 8,268 Outside service fees 1,371 1,942 Others 5,912 6,674 Accrued expenses $ 44,908 $ 51,746 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 7. Derivative Financial Instruments The Company’s Korean subsidiary from time to time has entered into zero cost collar and forward contracts to hedge the risk of changes in the functional-currency-equivalent cash flows attributable to currency rate changes on U.S. dollar denominated revenues. Details of derivative contracts as of March 31, 2018 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement September 28, 2017 Zero cost collar $ 30,000 April 2018 to June 2018 September 28, 2017 Forward $ 18,000 April 2018 to June 2018 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 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 as of March 31, 2018 and December 31, 2017 are as follows (in thousands): Derivatives designated as hedging instruments: March 31, 2018 December 31, 2017 Asset Derivatives: Zero cost collars Other current assets $ 1,324 $ 2,827 Forward Other current assets $ 1,269 $ 2,352 Offsetting of derivative assets as of March 31, 2018 is as follows (in thousands): As of March 31, 2018 Gross amounts of recognized assets Gross amounts offset in the balance sheets Net amounts of assets presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral received/ pledged Asset Derivatives: Zero cost collars $ 1,324 $ — $ 1,324 $ — $ — $ 1,324 Forward $ 1,269 $ — $ 1,269 $ — $ — $ 1,269 Offsetting of derivative assets as of December 31, 2017 is as follows (in thousands): As of December 31, 2017 Gross amounts of recognized assets Gross amounts offset in the balance sheets Net amounts of assets presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Asset Derivatives: Zero cost collars $ 2,827 $ — $ 2,827 $ — $ — $ 2,827 Forward $ 2,352 $ — $ 2,352 $ — $ — $ 2,352 For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in current earnings. The following table summarizes the impact of derivative instruments on the consolidated statement of operations for the three months ended March 31, 2018 and 2017 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Location of Gain (Loss) Recognized in Statement of Operations on Derivative (Ineffective Portion) Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2018 2017 2018 2017 2018 2017 Zero cost collars $ (132 ) $ 2,503 Net sales $ 1,326 $ 497 Other income (expenses)—Others $ (71 ) $ 637 Forward $ 65 $ — Net sales $ 1,280 $ — Other income (expenses)—Others $ (5 ) $ — Total $ (67 ) $ 2,503 $ 2,606 $ 497 $ (76 ) $ 637 As of March 31, 2018, the amount expected to be reclassified from accumulated other comprehensive income into income within the next twelve months is $2,626 thousand. The Company set aside $2,700 thousand and $7,600 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 March 31, 2018 and December 31, 2017, 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 March 31, 2018 and December 31, 2017, respectively. 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. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements Fair Value of Financial Instruments As of March 31, 2018, 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 March 31, 2018 Fair Value Measurement March 31, 2018 Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Derivative assets (other current assets) $ 2,593 $ 2,593 — $ 2,593 — 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 December 31, 2017 Fair Value Measurement December 31, 2017 Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Derivative assets (other current assets) $ 5,179 $ 5,179 — $ 5,179 — 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 March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In thousands of US dollars) Long-term Borrowings: 5.0% Exchangeable Senior Notes due March 2021 (Level 2) $ 81,909 $ 127,617 $ 81,576 $ 127,617 6.625% Senior Notes due July 2021 (Level 2) $ 222,039 $ 221,906 $ 221,840 $ 224,719 On January 17, 2017, the Company’s wholly-owned subsidiary, MagnaChip Semiconductor S.A., closed an offering (the “Exchangeable Notes Offering”) of 5.0% Exchangeable Senior Notes due March 1, 2021 (the “Exchangeable Notes”) of $86,250 thousand, which represents the principal amount, excluding $5,902 thousand of debt issuance costs. The Company estimates the fair value of the Exchangeable Notes using the market approach, which utilizes quoted market prices that fall under Level 2. For further description of the Exchangeable Notes, see Note 9, “Long-term Borrowings”. On July 18, 2013, the Company issued 6.625% senior notes due July 15, 2021 (the “2021 Notes”) of $225.0 million, which represents the principal amount, excluding $1.1 million of original issue discount and $5.0 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 9, “Long-term Borrowings”. Fair Values Measured on a Non-recurring The Company’s non-financial non-recurring |
Long-Term Borrowings
Long-Term Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | 9. Long-Term Borrowings Long-term borrowings as of March 31, 2018 and December 31, 2017 are as follows (in thousands): March 31, 2018 December 31, 2017 5.0% Exchangeable Senior Notes due March 2021 $ 86,250 $ 86,250 6.625% Senior Notes due July 2021 $ 225,000 $ 225,000 Less: unamortized discount and debt issuance costs (7,302 ) (7,834 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 303,948 $ 303,416 5.0% Exchangeable Senior Notes On January 17, 2017, MagnaChip Semiconductor S.A. closed the Exchangeable Notes Offering of $86,250 thousand aggregate principal amount of 5.0% Exchangeable Notes. Interest on the Exchangeable Notes accrues at a rate of 5.0% per annum, payable semi-annually on March 1 and September 1 of each year, beginning on March 1, 2017. The Exchangeable Notes will mature on March 1, 2021, unless earlier repurchased or converted. Holders may convert their notes at their option at any time prior to the close of business on the business day immediately preceding the stated maturity date. The Company used a portion of the net proceeds from the issuance to repurchase 1,795,444 shares of common stock under its stock repurchase program at an aggregate cost of $11,401 thousand. Upon conversion, the Company will deliver for each $1,000 principal amount of converted notes a number of shares equally to the exchange rate, which will initially be 121.1387 shares of common stock per $1,000 principal amount of Exchangeable Notes, equivalent to an initial exchange price of approximately $8.26 per share of common stock. The exchange rate will be subject to adjustment in some circumstances, but will not be adjusted for any accrued and unpaid interest. In addition, if a “make-whole fundamental change” (as defined in the Exchangeable Notes indenture (the “Exchangeable Notes Indenture”)) occurs prior to the stated maturity date, the Company will increase the exchange rate for a holder who elects to convert its notes in connection with such make-whole fundamental change in certain circumstances. MagnaChip Semiconductor S.A. may also, under certain circumstances, be required to pay additional amounts to holders of Exchangeable Notes if withholding or deduction is required in a relevant tax jurisdiction. If the Company undergoes a fundamental change, subject to certain conditions, holders may require the Company to repurchase for cash all or part of their notes at a purchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change purchase date. In addition, upon certain events of default described in the Exchangeable Notes Indenture, the trustee or holders of at least 25% principal amount of the Exchangeable Notes may declare 100% of the then outstanding Exchangeable Notes due and payable in full, together with all accrued and unpaid interest thereon. Payment of principal on the Exchangeable Notes may also accelerate and become automatically due and payable upon certain events of default involving bankruptcy or insolvency proceedings involving the Company, MagnaChip Semiconductor S.A. and their significant subsidiaries. The Exchangeable Notes are not redeemable at the option of MagnaChip Semiconductor S.A. prior to the maturity date. The Exchangeable Notes Indenture contains covenants that limit the ability of the Company, MagnaChip Semiconductor S.A. and the Company’s other restricted subsidiaries to: (i) declare or pay any dividend or make any payment or distribution on account of or purchase or redeem the Company’s capital stock or equity interests of the restricted subsidiaries; (ii) make any principal payment on, or redeem or repurchase, prior to any scheduled repayment or maturity, any subordinated indebtedness; (iii) make certain investments; (iv) incur additional indebtedness and issue certain types of capital stock; (v) create or incur any lien (except for permitted liens) that secures obligations under any indebtedness; (vi) merge with or into or sell all or substantially all of the Company’s assets to other companies; (vii) enter into certain types of transactions with affiliates; (viii) guarantee the payment of any indebtedness; and (ix) designate unrestricted subsidiaries. These covenants are subject to a number of exceptions and qualifications. Certain of these restrictive covenants will terminate if the Exchangeable Notes are rated investment grade at any time. The Company incurred debt issuance costs of $5,902 thousand related to the issuance of the Exchangeable Notes. The debt issuance costs are recorded as a direct deduction from the long-term borrowings in the consolidated balance sheets and amortized to interest expense using the effective interest method over the term of the Exchangeable Notes. Interest expense related to the Exchangeable Notes for the three months ended March 31, 2018 and 2017 were $1,411 thousand and $1,147 thousand, respectively. 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 $5,039 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 three months ended March 31, 2018 and 2017 were $3,926 thousand and $3,912 thousand, respectively. |
Accrued Severance Benefits
Accrued Severance Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Postemployment Benefits [Abstract] | |
Accrued Severance Benefits | 10. Accrued Severance Benefits The majority of accrued severance benefits are for employees in the Company’s Korean subsidiary. Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of March 31, 2018, 98% of employees of the Company were eligible for severance benefits. Changes in accrued severance benefits are as follows (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Beginning balance $ 149,795 $ 130,144 Provisions 4,512 7,386 Severance payments (2,247 ) (7,524 ) Translation adjustments 719 10,872 152,779 140,878 Less: Cumulative contributions to the National Pension Fund (255 ) (270 ) Group severance insurance plan (635 ) (660 ) Accrued severance benefits, net $ 151,889 $ 139,948 The severance benefits funded through the Company’s National Pension Fund and group severance insurance plan will be used exclusively for payment of severance benefits to eligible employees. These amounts have been deducted from the accrued severance benefit balance. The Company is liable to pay the following future benefits to its non-executive Severance benefit Remainder of 2018 $ — 2019 619 2020 1,125 2021 1,596 2022 1,404 2023 1,889 2024 – 2028 28,825 The above amounts were determined based on the non-executive non-executive The Korea’s mandatory retirement age is 60 under the Employment Promotion for the Aged Act. |
Foreign Currency Gain, Net
Foreign Currency Gain, Net | 3 Months Ended |
Mar. 31, 2018 | |
Foreign Currency [Abstract] | |
Foreign Currency Gain, Net | 11. Foreign Currency Gain, Net Net foreign currency gain or loss includes non-cash non-cash |
Restructuring and other gain
Restructuring and other gain | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other gain | 12. Restructuring and other gain As of December 21, 2016, the Company entered into a purchase and sale agreement to sell a building located in Cheongju, South Korea. The building has historically been used to house the Company’s six-inch “6-inch In March 2017, the Company sold its sensor product business, which was included in and reported as part of Display Solutions line of its Standard Products Group, to a third party for proceeds of $1,295 thousand, in an effort to improve our overall profitability. The Company recorded $375 thousand net gain from this sale after deducting the book values of certain assets transferred to the buyer. |
Early Termination Charges
Early Termination Charges | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Early Termination Charges | 13. Early Termination Charges As of February 22, 2017, the Company’s Board of Directors approved the implementation of a new headcount reduction plan (the “Headcount Reduction Plan”). As of June 30, 2017, 352 employees elected to resign from the Company during the period in which the Headcount Reduction Plan was offered. The total cash cost of approximately $31 million has been fully paid. The Company recorded in its consolidated statement of operations $11,107 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14 . Income Taxes The Company files income tax returns in the U.S., Korea, Japan, Taiwan and various other jurisdictions. The Company is subject to income- or non-income-based Income tax expense recorded for three months ended March 31, 2018 and 2017 was $990 thousand and $853 thousand, respectively, primarily attributable to interest on intercompany loan balances. On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act, was enacted in the U.S (the “Tax Reform Act”). The Tax Reform Act reduces the U.S. federal statutory rate to 21.0% from 35.0% effective January 1, 2018. The key provisions contained in the Tax Reform Act are mandatory deemed repatriation tax, global intangible low tax income and foreign derived intangible income provisions, of which the Company does not expect that the provisions in connection with global intangible low tax income and foreign derived intangible income provisions have any material impact to its income tax expense. The Company is currently reviewing the provision relating to the mandatory deemed repatriation tax and will complete its assessment before the measurement period ends in December 2018. |
Geographic and Segment Informat
Geographic and Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Geographic and Segment Information | 15. Geographic and Segment Information The Company has two operating segments: Foundry Services Group and Standard Products Group. The Company’s chief operating decision maker is its Chief Executive Officer who allocates resources and assesses performance of the business and other activities based on gross profit. In January 2018, as part of the Company’s ongoing portfolio optimization effort to realign business processes and streamline the Company’s organizational structure, the Company transferred a portion of its non-OLED non-OLED The following sets forth information relating to the operating segment (in thousands): Three Months Ended March 31, 2018 March 31, 2017 As Adjusted Net Sales Foundry Services Group $ 77,429 $ 83,542 Standard Products Group Display Solutions 49,696 42,865 Power Solutions 38,667 35,280 Total Standard Products Group $ 88,363 $ 78,145 All other 27 23 Total net sales $ 165,819 $ 161,710 Three Months Ended March 31, 2018 March 31, 2017 As Adjusted Gross Profit Foundry Services Group $ 20,664 $ 23,312 Standard Products Group 24,039 18,235 All other (122 ) 23 Total gross profit $ 44,581 $ 41,570 Upon the adoption of the new revenue standard during the first quarter ended March 31, 2018, the Company’s revenue for Foundry Services Group is disaggregated depending on the timing of revenue recognition (in thousands): Three Month ended March 31, 2018, Revenue recognized at the time of Revenue recognized over time Total Net Sales Foundry Services Group $ 2,797 $ 74,632 $ 77,429 The following is a summary of net sales by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Korea $ 54,689 $ 65,083 Asia Pacific (other than Korea) 89,706 79,464 U.S.A. 9,818 9,167 Europe 10,978 7,853 Others 628 143 Total $ 165,819 $ 161,710 Net sales from the Company’s top ten largest customers accounted for 59% and 62% for the three months ended March 31, 2018 and 2017, respectively. For the three months ended March 31, 2018, the Company had two customers that represented 17.9% and 10.4% of its net sales, respectively. For the three months ended March 31, 2017, the Company had one customer that represented 14.8% of its net sales. 97% of the Company’s property, plant and equipment are located in Korea as of March 31, 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 16. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the following as of March 31, 2018 and December 31, 2017, respectively (in thousands): March 31, 2018 December 31, 2017 Foreign currency translation adjustments $ (38,896 ) $ (38,413 ) Derivative adjustments 2,626 5,299 Total $ (36,270 ) $ (33,114 ) Changes in accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 are as follows (in thousands): Three Months Ended March 31, 2018 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (38,413 ) $ 5,299 $ (33,114 ) Other comprehensive loss before reclassifications (483 ) (67 ) (550 ) Amounts reclassified from accumulated other comprehensive income — (2,606 ) (2,606 ) Net current-period other comprehensive loss (483 ) (2,673 ) (3,156 ) Ending balance $ (38,896 ) $ 2,626 $ (36,270 ) Three Months Ended March 31, 2017 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ 14,460 $ (436 ) $ 14,024 Other comprehensive income (loss) before reclassifications (35,324 ) 2,503 (32,821 ) Amounts reclassified from accumulated other comprehensive income — (497 ) (497 ) Net current-period other comprehensive income (loss) (35,324 ) 2,006 (33,318 ) Ending balance $ (20,864 ) $ 1,570 $ (19,294 ) There was no income tax impact related to changes in accumulated other comprehensive income loss for the three months ended March 31, 2018 and 2017 due to net operating loss carry-forwards available to offset taxable income and full allowance for deferred tax assets. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 17. Earnings per Share The following table illustrates the computation of basic and diluted earnings per common share for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 March 31, 2017 (In thousands of US dollars, except share data) Basic Earnings per Share Net income $ 2,763 $ 43,738 Basic weighted average common stock outstanding 34,253,111 33,662,297 Basic earnings per share $ 0.08 $ 1.30 Diluted Earnings per Share Net income $ 2,763 $ 43,738 Add back: Interest expense on Exchangeable Notes — 1,147 Net income allocated to common stockholders $ 2,763 $ 44,885 Basic weighted average common stock outstanding 34,253,111 33,662,297 Net effect of dilutive equity awards 901,582 638,994 Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock — 8,590,753 Diluted weighted average common stock outstanding 35,154,693 42,892,044 Diluted earnings per share $ 0.08 $ 1.05 The following outstanding instruments were excluded from the computation of diluted earnings per share, as they have an anti-dilutive effect on the calculation: Three Months Ended March 31, 2018 March 31, 2017 Options 810,572 1,256,448 For the three months ended March 31, 2018, 10,448,213 of potential common stock from the assumed conversion of Exchangeable Notes was excluded from the computation of diluted earnings per share as the effect was anti-dilutive for the period. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Long-term Purchase Agreements and Advances to Suppliers 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 adequacy 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 March 31, 2018 and December 31, 2017, respectively. The Company, from time to time, may make prepayments to suppliers to procure materials to meet its planned production. The Company recorded prepayments of $7,264 thousand and $7,404 thousand as other current assets as of March 31, 2018 and December 31, 2017, respectively. 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 3:15-cv-01797) now-former 10b-5 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, out-of-pocket 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. No. 1-15-cv-278614, now-former now-former 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. No. 1-15-CV-281284 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. |
Business, Basis of Presentati26
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Business | Business MagnaChip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, Internet of Things (“IoT”) applications, consumer, industrial and automotive applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). These interim consolidated financial statements include normal recurring adjustments and the elimination of all intercompany accounts and transactions which are, in the opinion of management, necessary to provide a fair statement of the Company’s financial condition and results of operations for the periods presented. These interim consolidated financial statements are presented in accordance with Accounting Standards Codification 270, “Interim Reporting” The December 31, 2017 balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by US GAAP. Upon the adoption of Accounting Standards Update No. 2014-09, |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Revenue is measured based on a consideration specified in a contract with a customer in exchange for such product or service. The Foundry Services Group of the Company manufactures products based on customers’ specific product designs. The Company recognizes revenue over time for those foundry products without alternative use where the Company has an enforceable right to payment for the related foundry services completed to date. The revenue recognized over time is in proportion of wafer manufacturing costs incurred relative to total estimated costs at completion to measure the Company’s performance to date. However, in certain circumstances, the Company may not have an enforceable right to payment for performed foundry services pursuant to a customer contract or an individual purchase order. In this situation, the Company recognizes revenue when a customer obtains control of the product, which is generally upon product shipment, delivery at the customer’s location or upon customer acceptance, depending on the terms of the arrangement. The Standards Products Group of the Company sells products manufactured based on the Company’s design. The Standard Products Group’s products are either standardized with an alternative use or the Company does not have an enforceable right to payment for the related manufacturing services completed to date. For those products, revenue is recognized when a customer obtains control of the product, which is generally upon product shipment, delivery at the customer’s location or upon customer acceptance, depending on the terms of the arrangement. A portion of the Company’s sales are made through distributors for which the Company applies the same revenue recognition guidance as described above. The Company defers recognition of revenue when it receives cash from certain customers and distributors for the sale of products prior to obtaining an enforceable right to payment for performance completed to date or control of the product being transferred to the customer. In accordance with revenue recognition guidance, any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction, and that is collected by the Company from a customer, is excluded from revenue and presented in the statement of operations on a net basis. 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), cash discounts for early payments, volume rebate 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. Substantially all of the Company’s contracts are one year or less in duration. The standard payment terms with customers is generally thirty to sixty days from the time of shipment, product delivery at the customer’s location or customer acceptance, depending on the terms of the related arrangement. In May 2014, the FASB issued ASU 2014-09. 2014-09 2014-09 2016-08, 2016-10, ASU 2016-12, 2016-20, 2016-08, 2016-10, 2016-12 2016-20 2014-09 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2018-02 2018-02”). 2018-02 2018-02 In August 2017, the FASB issued Accounting Standards Update No. 2017-12, 2017-12”). 2017-12 2017-12 2017-12 In July 2017, the FASB issued Accounting Standards Update No. 2017-11, (“ASU 2017-11”), 2017-11 2017-11 In February 2016, the FASB issued Accounting Standards Update No. 2016-02, 2016-02”) 2016-02 right-of-use 2016-02 2018-01, 2018-01”). 2018-01 2016-02 |
Recently Adopted Accounting Pronouncements - Compensation-Stock Compensation | In May 2017, the FASB issued Accounting Standards Update No. 2017-09, 2017-09”). 2017-09 ASU 2017-09 2017-09 |
Recently Adopted Accounting Pronouncements - Restricted Cash | In November 2016, the FASB issued ASU 2016-18, 2016-18”). 2016-18 2016-18 6-inch 2016-18, 2016-18 |
Recently Adopted Accounting Pronouncements - Classification of Certain Cash Receipts and Cash Payments | In August 2016, the FASB issued Accounting Standards Update No. 2016-15, 2016-15”). 2016-15 2016-15 2016-15 |
Business, Basis of Presentati27
Business, Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Standards Update 2014-09 [Member] | |
Impacts of Adopting New Revenue Standard on Company's Consolidated Financial Statements | The impacts of adopting the new revenue standard on the Company’s consolidated financial statements for the three months ended March 31, 2018 are as follows (in thousands): As of March 31, 2018 As Reported Adjustments Amounts Without (In thousands of US dollars, except share data) Assets Current assets Unbilled accounts receivable $ 39,161 $ 39,161 $ — Inventories, net 56,658 (30,045 ) 86,703 Total current assets 344,173 9,116 335,057 Total assets 574,668 9,116 565,552 Liabilities and Stockholders’ Equity Stockholders’ equity Retained earnings (accumulated deficit) (29,642 ) 9,063 (38,705 ) Accumulated other comprehensive income (loss) (36,270 ) 53 (36,323 ) Total stockholders’ equity (deficit) (29,934 ) 9,116 (39,050 ) Total liabilities and stockholders’ deficit $ 574,668 $ 9,116 $ 565,552 Unbilled accounts receivable represents the Company’s contractual right to consideration for manufacturing work performed on a customer contract or an individual purchase order basis, which has not been invoiced to the customer. Three Months Ended March 31, 2018 As Reported Adjustments Amounts Without (In thousands of US dollars, except share data) Net sales $ 165,819 $ 639 $ 165,180 Cost of sales 121,238 60 121,178 Gross profit 44,581 579 44,002 Operating income 7,379 579 6,800 Income before income tax expenses 3,753 579 3,174 Net income $ 2,763 $ 579 $ 2,184 Earnings per common share— Basic $ 0.08 $ 0.02 $ 0.06 Diluted $ 0.08 $ 0.02 $ 0.06 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories as of March 31, 2018 and December 31, 2017 consist of the following (in thousands): March 31, 2018 December 31, 2017 Finished goods $ 10,136 $ 13,737 Semi-finished goods and work-in-process 35,646 53,148 Raw materials 14,823 12,445 Materials in-transit 724 134 Less: inventory reserve (4,671 ) (6,391 ) Inventories, net $ 56,658 $ 73,073 |
Changes in Inventory Reserve | Changes in inventory reserve for the three months ended March 31, 2018 and 2017 are as follows (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Beginning balance $ (6,391 ) $ (7,177 ) Inventory reserve charged to costs of sales (1,620 ) (1,624 ) Sale of previously reserved inventory 831 1,260 (789 ) (364 ) Write off 2,530 175 Translation adjustments (21 ) (600 ) Ending balance $ (4,671 ) $ (7,966 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment as of March 31, 2018 and December 31, 2017 are comprised of the following (in thousands): March 31, 2018 December 31, 2017 Buildings and related structures $ 70,302 $ 69,958 Machinery and equipment 314,217 308,713 Others 44,598 42,497 429,117 421,168 Less: accumulated depreciation (240,206 ) (231,356 ) Land 16,165 16,091 Property, plant and equipment, net $ 205,076 $ 205,903 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets as of March 31, 2018 and December 31, 2017 are comprised of the following (in thousands): March 31, 2018 Gross amount Accumulated amortization Net amount Technology $ 20,287 $ (20,287 ) $ — Customer relationships 29,135 (29,135 ) — Intellectual property assets 11,773 (7,483 ) 4,290 Intangible assets, net $ 61,195 $ (56,905 ) $ 4,290 December 31, 2017 Gross amount Accumulated amortization Net amount 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 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses as of March 31, 2018 and December 31, 2017 are comprised of the following (in thousands): March 31, 2018 December 31, 2017 Payroll, benefits and related taxes, excluding severance benefits $ 15,840 $ 16,724 Withholding tax attributable to intercompany interest income 18,322 18,138 Interest on senior notes 3,463 8,268 Outside service fees 1,371 1,942 Others 5,912 6,674 Accrued expenses $ 44,908 $ 51,746 |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Details of Derivative Contracts | Details of derivative contracts as of March 31, 2018 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement September 28, 2017 Zero cost collar $ 30,000 April 2018 to June 2018 September 28, 2017 Forward $ 18,000 April 2018 to June 2018 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 |
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 as of March 31, 2018 and December 31, 2017 are as follows (in thousands): Derivatives designated as hedging instruments: March 31, 2018 December 31, 2017 Asset Derivatives: Zero cost collars Other current assets $ 1,324 $ 2,827 Forward Other current assets $ 1,269 $ 2,352 |
Offsetting of Derivative Assets | Offsetting of derivative assets as of March 31, 2018 is as follows (in thousands): As of March 31, 2018 Gross amounts of recognized assets Gross amounts offset in the balance sheets Net amounts of assets presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral received/ pledged Asset Derivatives: Zero cost collars $ 1,324 $ — $ 1,324 $ — $ — $ 1,324 Forward $ 1,269 $ — $ 1,269 $ — $ — $ 1,269 Offsetting of derivative assets as of December 31, 2017 is as follows (in thousands): As of December 31, 2017 Gross amounts of recognized assets Gross amounts offset in the balance sheets Net amounts of assets presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Asset Derivatives: Zero cost collars $ 2,827 $ — $ 2,827 $ — $ — $ 2,827 Forward $ 2,352 $ — $ 2,352 $ — $ — $ 2,352 |
Impact of Derivative Instruments on Consolidated Statement of Operations | The following table summarizes the impact of derivative instruments on the consolidated statement of operations for the three months ended March 31, 2018 and 2017 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Location of Gain (Loss) Recognized in Statement of Operations on Derivative (Ineffective Portion) Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2018 2017 2018 2017 2018 2017 Zero cost collars $ (132 ) $ 2,503 Net sales $ 1,326 $ 497 Other income (expenses)—Others $ (71 ) $ 637 Forward $ 65 $ — Net sales $ 1,280 $ — Other income (expenses)—Others $ (5 ) $ — Total $ (67 ) $ 2,503 $ 2,606 $ 497 $ (76 ) $ 637 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured at Fair Value on Recurring Basis | As of March 31, 2018, 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 March 31, 2018 Fair Value Measurement March 31, 2018 Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Derivative assets (other current assets) $ 2,593 $ 2,593 — $ 2,593 — 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 December 31, 2017 Fair Value Measurement December 31, 2017 Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Derivative assets (other current assets) $ 5,179 $ 5,179 — $ 5,179 — |
Schedule of Fair Value of Long-term Borrowings | Fair Value of Long-term Borrowings March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (In thousands of US dollars) Long-term Borrowings: 5.0% Exchangeable Senior Notes due March 2021 (Level 2) $ 81,909 $ 127,617 $ 81,576 $ 127,617 6.625% Senior Notes due July 2021 (Level 2) $ 222,039 $ 221,906 $ 221,840 $ 224,719 |
Long-Term Borrowings (Tables)
Long-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-term Borrowings | Long-term borrowings as of March 31, 2018 and December 31, 2017 are as follows (in thousands): March 31, 2018 December 31, 2017 5.0% Exchangeable Senior Notes due March 2021 $ 86,250 $ 86,250 6.625% Senior Notes due July 2021 $ 225,000 $ 225,000 Less: unamortized discount and debt issuance costs (7,302 ) (7,834 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 303,948 $ 303,416 |
Accrued Severance Benefits (Tab
Accrued Severance Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Postemployment Benefits [Abstract] | |
Changes in Accrued Severance Benefits | Changes in accrued severance benefits are as follows (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Beginning balance $ 149,795 $ 130,144 Provisions 4,512 7,386 Severance payments (2,247 ) (7,524 ) Translation adjustments 719 10,872 152,779 140,878 Less: Cumulative contributions to the National Pension Fund (255 ) (270 ) Group severance insurance plan (635 ) (660 ) Accrued severance benefits, net $ 151,889 $ 139,948 |
Future Benefits Payments to Employees | The Company is liable to pay the following future benefits to its non-executive Severance benefit Remainder of 2018 $ — 2019 619 2020 1,125 2021 1,596 2022 1,404 2023 1,889 2024 – 2028 28,825 |
Geographic and Segment Inform36
Geographic and Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | The following sets forth information relating to the operating segment (in thousands): Three Months Ended March 31, 2018 March 31, 2017 As Adjusted Net Sales Foundry Services Group $ 77,429 $ 83,542 Standard Products Group Display Solutions 49,696 42,865 Power Solutions 38,667 35,280 Total Standard Products Group $ 88,363 $ 78,145 All other 27 23 Total net sales $ 165,819 $ 161,710 Three Months Ended March 31, 2018 March 31, 2017 As Adjusted Gross Profit Foundry Services Group $ 20,664 $ 23,312 Standard Products Group 24,039 18,235 All other (122 ) 23 Total gross profit $ 44,581 $ 41,570 |
Summary of Revenue Disaggregated Depending on Timing of Revenue Recognition | Upon the adoption of the new revenue standard during the first quarter ended March 31, 2018, the Company’s revenue for Foundry Services Group is disaggregated depending on the timing of revenue recognition (in thousands): Three Month ended March 31, 2018, Revenue recognized at the time of Revenue recognized over time Total Net Sales Foundry Services Group $ 2,797 $ 74,632 $ 77,429 |
Net Sales by Region, Based on Location of Products are Billed | The following is a summary of net sales by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended March 31, 2018 March 31, 2017 Korea $ 54,689 $ 65,083 Asia Pacific (other than Korea) 89,706 79,464 U.S.A. 9,818 9,167 Europe 10,978 7,853 Others 628 143 Total $ 165,819 $ 161,710 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following as of March 31, 2018 and December 31, 2017, respectively (in thousands): March 31, 2018 December 31, 2017 Foreign currency translation adjustments $ (38,896 ) $ (38,413 ) Derivative adjustments 2,626 5,299 Total $ (36,270 ) $ (33,114 ) |
Changes in Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 are as follows (in thousands): Three Months Ended March 31, 2018 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (38,413 ) $ 5,299 $ (33,114 ) Other comprehensive loss before reclassifications (483 ) (67 ) (550 ) Amounts reclassified from accumulated other comprehensive income — (2,606 ) (2,606 ) Net current-period other comprehensive loss (483 ) (2,673 ) (3,156 ) Ending balance $ (38,896 ) $ 2,626 $ (36,270 ) Three Months Ended March 31, 2017 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ 14,460 $ (436 ) $ 14,024 Other comprehensive income (loss) before reclassifications (35,324 ) 2,503 (32,821 ) Amounts reclassified from accumulated other comprehensive income — (497 ) (497 ) Net current-period other comprehensive income (loss) (35,324 ) 2,006 (33,318 ) Ending balance $ (20,864 ) $ 1,570 $ (19,294 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table illustrates the computation of basic and diluted earnings per common share for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 March 31, 2017 (In thousands of US dollars, except share data) Basic Earnings per Share Net income $ 2,763 $ 43,738 Basic weighted average common stock outstanding 34,253,111 33,662,297 Basic earnings per share $ 0.08 $ 1.30 Diluted Earnings per Share Net income $ 2,763 $ 43,738 Add back: Interest expense on Exchangeable Notes — 1,147 Net income allocated to common stockholders $ 2,763 $ 44,885 Basic weighted average common stock outstanding 34,253,111 33,662,297 Net effect of dilutive equity awards 901,582 638,994 Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock — 8,590,753 Diluted weighted average common stock outstanding 35,154,693 42,892,044 Diluted earnings per share $ 0.08 $ 1.05 |
Schedule of Antidilutive Securities Excluded from the Computation of Earnings Per Common Share | The following outstanding instruments were excluded from the computation of diluted earnings per share, as they have an anti-dilutive effect on the calculation: Three Months Ended March 31, 2018 March 31, 2017 Options 810,572 1,256,448 |
Business, Basis of Presentati39
Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2018USD ($)SegmentsBusiness_Lines | Mar. 31, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of operating segments | Segments | 2 | ||||
Payment terms, description | The standard payment terms with customers is generally thirty to sixty days from the time of shipment, product delivery at the customer's location or customer acceptance, depending on the terms of the related arrangement. | ||||
Contract duration, description | Substantially all of the Company's contracts are one or less in duration. | ||||
Restricted cash | $ 18,251 | ||||
Net cash (used in) provided by operating activities | $ (3,921) | $ (38,680) | |||
Net cash (used in) provided by investing activities | (2,897) | (7,017) | |||
Effect of exchange rates on cash, cash equivalents and restricted cash | (5,439) | 31,021 | |||
Unbilled accounts receivable | 39,161 | ||||
Inventories, net | (56,658) | $ (73,073) | |||
Total stockholders' equity (deficit) | (29,934) | (70,576) | (39,637) | $ (72,114) | |
Amounts billed to customers | 32,269 | ||||
Deferred revenue | 13,202 | $ 8,335 | |||
Deferred revenue recognized | $ 1,086 | ||||
Minimum [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Payment terms | 30 days | ||||
Maximum [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Payment terms | 60 days | ||||
Contract duration | 1 year | ||||
ASU 2016-18 [Member] | Restatement Adjustment [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Net cash (used in) provided by operating activities | (1,809) | ||||
Net cash (used in) provided by investing activities | (17,625) | ||||
Effect of exchange rates on cash, cash equivalents and restricted cash | $ 1,183 | ||||
Accounting Standards Update 2014-09 [Member] | Adjustments [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Unbilled accounts receivable | $ 39,161 | $ 38,307 | |||
Inventories, net | 30,045 | 29,823 | |||
Total stockholders' equity (deficit) | $ 9,116 | $ 8,484 | |||
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 Presentati40
Business, Basis of Presentation and Significant Accounting Policies - Summary of Consolidated Statement of Balance Sheet Line Items, which Reflect Adoption of New Revenue Recognition Guidance (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | |||||
Unbilled accounts receivable | $ 39,161 | ||||
Inventories, net | 56,658 | $ 73,073 | |||
Total current assets | 344,173 | 330,260 | |||
Total assets | 574,668 | 558,789 | |||
Stockholders' equity | |||||
Retained earnings (accumulated deficit) | (29,642) | (40,889) | |||
Accumulated other comprehensive income (loss) | (36,270) | (33,114) | |||
Total stockholders' equity (deficit) | (29,934) | (39,637) | $ (70,576) | $ (72,114) | |
Total liabilities and stockholders' deficit | 574,668 | $ 558,789 | |||
Adjustments [Member] | Accounting Standards Update 2014-09 [Member] | |||||
Current assets | |||||
Unbilled accounts receivable | 39,161 | $ 38,307 | |||
Inventories, net | (30,045) | (29,823) | |||
Total current assets | 9,116 | ||||
Total assets | 9,116 | ||||
Stockholders' equity | |||||
Retained earnings (accumulated deficit) | 9,063 | ||||
Accumulated other comprehensive income (loss) | 53 | ||||
Total stockholders' equity (deficit) | 9,116 | $ 8,484 | |||
Total liabilities and stockholders' deficit | 9,116 | ||||
Amounts Without Adoption of the New Revenue Standard [Member] | Accounting Standards Update 2014-09 [Member] | |||||
Current assets | |||||
Inventories, net | 86,703 | ||||
Total current assets | 335,057 | ||||
Total assets | 565,552 | ||||
Stockholders' equity | |||||
Retained earnings (accumulated deficit) | (38,705) | ||||
Accumulated other comprehensive income (loss) | (36,323) | ||||
Total stockholders' equity (deficit) | (39,050) | ||||
Total liabilities and stockholders' deficit | $ 565,552 |
Business, Basis of Presentati41
Business, Basis of Presentation and Significant Accounting Policies - Summary of Consolidated Statement of Operations Line Items, which Reflect Adoption of New Revenue Recognition Guidance (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net sales | $ 165,819 | $ 161,710 |
Cost of sales | 121,238 | 120,140 |
Gross profit | 44,581 | 41,570 |
Operating income | 7,379 | 6,367 |
Income before income tax expenses | 3,753 | 44,591 |
Net income | $ 2,763 | $ 43,738 |
Earnings per common share- | ||
Basic | $ 0.08 | $ 1.30 |
Diluted | $ 0.08 | $ 1.05 |
Adjustments [Member] | Accounting Standards Update 2014-09 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net sales | $ 639 | |
Cost of sales | 60 | |
Gross profit | 579 | |
Operating income | 579 | |
Income before income tax expenses | 579 | |
Net income | $ 579 | |
Earnings per common share- | ||
Basic | $ 0.02 | |
Diluted | $ 0.02 | |
Amounts Without Adoption of the New Revenue Standard [Member] | Accounting Standards Update 2014-09 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net sales | $ 165,180 | |
Cost of sales | 121,178 | |
Gross profit | 44,002 | |
Operating income | 6,800 | |
Income before income tax expenses | 3,174 | |
Net income | $ 2,184 | |
Earnings per common share- | ||
Basic | $ 0.06 | |
Diluted | $ 0.06 |
Sales of Accounts Receivable 42
Sales of Accounts Receivable and Receivable Discount Program - Additional Information (Detail) - Trade Accounts Receivable [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Proceeds from sale of accounts receivable | $ 3,662 | $ 6,080 |
Selling, General and Administrative Expenses [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Pre-tax losses on accounts receivable | $ 2 | $ 20 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||||
Finished goods | $ 10,136 | $ 13,737 | ||
Semi-finished goods and work-in-process | 35,646 | 53,148 | ||
Raw materials | 14,823 | 12,445 | ||
Materials in-transit | 724 | 134 | ||
Less: inventory reserve | (4,671) | (6,391) | $ (7,966) | $ (7,177) |
Inventories, net | $ 56,658 | $ 73,073 |
Inventories - Changes in Invent
Inventories - Changes in Inventory Reserve (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | ||
Beginning balance | $ (6,391) | $ (7,177) |
Inventory reserve charged to costs of sales | (1,620) | (1,624) |
Sale of previously reserved inventory | 831 | 1,260 |
Change in reserve | (789) | (364) |
Write off | 2,530 | 175 |
Translation adjustments | (21) | (600) |
Ending balance | $ (4,671) | $ (7,966) |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 429,117 | $ 421,168 |
Less: accumulated depreciation | (240,206) | (231,356) |
Property, plant and equipment, net | 205,076 | 205,903 |
Buildings and Related Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 70,302 | 69,958 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 314,217 | 308,713 |
Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 44,598 | 42,497 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 16,165 | $ 16,091 |
Property, Plant and Equipment46
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses | $ 7,757 | $ 6,616 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | $ 61,195 | $ 60,515 |
Accumulated amortization | (56,905) | (56,454) |
Intangible asset, Net amount | 4,290 | 4,061 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 20,287 | 20,194 |
Accumulated amortization | (20,287) | (20,194) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 29,135 | 29,002 |
Accumulated amortization | (29,135) | (29,002) |
Intellectual Property Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 11,773 | 11,319 |
Accumulated amortization | (7,483) | (7,258) |
Intangible asset, Net amount | $ 4,290 | $ 4,061 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense for intangible assets | $ 201 | $ 142 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payroll, benefits and related taxes, excluding severance benefits | $ 15,840 | $ 16,724 |
Withholding tax attributable to intercompany interest income | 18,322 | 18,138 |
Interest on senior notes | 3,463 | 8,268 |
Outside service fees | 1,371 | 1,942 |
Others | 5,912 | 6,674 |
Accrued expenses | $ 44,908 | $ 51,746 |
Derivative Financial Instrume50
Derivative Financial Instruments - Details of Derivative Contracts (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Zero Cost Collar One [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Sep. 28, 2017 | Jun. 22, 2017 |
Type of derivative | Zero cost collar | Zero cost collar |
Total notional amount | $ 30,000,000 | $ 20,000,000 |
Month of settlement, start | 2018-04 | 2018-01 |
Month of settlement, end | 2018-06 | 2018-02 |
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 | Sep. 28, 2017 |
Type of derivative | Forward | Forward |
Total notional amount | $ 18,000,000 | $ 36,000,000 |
Month of settlement, start | 2018-04 | 2018-01 |
Month of settlement, end | 2018-06 | 2018-06 |
Derivative Financial Instrume51
Derivative Financial Instruments - Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Zero Cost Collars [Member] | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, Asset | $ 1,324 | $ 2,827 |
Forward [Member] | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, Asset | 1,269 | 2,352 |
Other Current Assets [Member] | Zero Cost Collars [Member] | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, Asset | 1,324 | 2,827 |
Other Current Assets [Member] | Forward [Member] | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, Asset | $ 1,269 | $ 2,352 |
Derivative Financial Instrume52
Derivative Financial Instruments - Offsetting of Derivative Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Zero Cost Collars [Member] | ||
Derivative [Line Items] | ||
Asset Derivatives, Gross amounts of recognized assets | $ 1,324 | $ 2,827 |
Asset Derivatives, Gross amounts offset in the balance sheets | 0 | 0 |
Asset Derivatives, Net amounts of assets presented in the balance sheets | 1,324 | 2,827 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Financial instruments | 0 | 0 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Cash collateral pledged | 0 | 0 |
Asset Derivatives, Net amount | 1,324 | 2,827 |
Forward [Member] | ||
Derivative [Line Items] | ||
Asset Derivatives, Gross amounts of recognized assets | 1,269 | 2,352 |
Asset Derivatives, Gross amounts offset in the balance sheets | 0 | 0 |
Asset Derivatives, Net amounts of assets presented in the balance sheets | 1,269 | 2,352 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Financial instruments | 0 | 0 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Cash collateral pledged | 0 | 0 |
Asset Derivatives, Net amount | $ 1,269 | $ 2,352 |
Derivative Financial Instrume53
Derivative Financial Instruments - Impact of Derivative Instruments on Consolidated Statement of Operations (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $ (67) | $ 2,503 |
Other Income (Expenses) - Others [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | (76) | 637 |
Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) | 2,606 | 497 |
Zero Cost Collars [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | (132) | 2,503 |
Zero Cost Collars [Member] | Other Income (Expenses) - Others [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | (71) | 637 |
Zero Cost Collars [Member] | Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) | 1,326 | $ 497 |
Forward [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | 65 | |
Forward [Member] | Other Income (Expenses) - Others [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | (5) | |
Forward [Member] | Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) | $ 1,280 |
Derivative Financial Instrume54
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
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 | $ 2,626,000 | |
Zero Cost Collar and Forward Contracts [Member] | Nomura Financial Investment (Korea) Co., Ltd. [Member] | ||
Derivative [Line Items] | ||
Deposit with counterparty | 2,700,000 | $ 7,600,000 |
Threshold amount of cash collateral | 500,000 | |
Cash collateral for credit exposure in derivatives | 0 | $ 0 |
Termination provisions for cash and cash equivalents | $ 30,000,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Other Current Assets [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Value [Member] | ||
Assets: | ||
Derivative assets | $ 2,593 | $ 5,179 |
Derivative assets | 2,593 | 5,179 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Derivative assets | 2,593 | 5,179 |
Derivative assets | 2,593 | 5,179 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Derivative assets | 2,593 | 5,179 |
Derivative assets | $ 2,593 | $ 5,179 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Long-term Borrowings (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Long-term Borrowings: | ||
Carrying amount of senior notes | $ 303,948 | $ 303,416 |
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 | 81,909 | 81,576 |
Estimated fair value of senior notes | 127,617 | 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 | 222,039 | 221,840 |
Estimated fair value of senior notes | $ 221,906 | $ 224,719 |
Fair Value Measurements - Sch57
Fair Value Measurements - Schedule of Fair Value of Long-term Borrowings (Parenthetical) (Detail) | Jan. 17, 2017 | Jul. 18, 2013 | Mar. 31, 2018 | Dec. 31, 2017 |
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% | 5.00% | |
Due date | Mar. 1, 2021 | 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 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
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 | 5,039,000 | ||||
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% | 5.00% | ||
Due date | Mar. 1, 2021 | Mar. 1, 2021 | Mar. 1, 2021 | ||
Aggregate principal amount | $ 86,250,000 | ||||
Debt issuance costs paid | $ 5,902,000 | 5,902,000 | |||
Other Asset Class [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets fair value on non-recurring basis | $ 0 | 0 | |||
Liabilities fair value on non-recurring basis | $ 0 | $ 0 |
Long-term Borrowings - Componen
Long-term Borrowings - Components of Long-term Borrowings (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Less: unamortized discount and debt issuance costs | $ (7,302) | $ (7,834) |
Long-term borrowings, net of unamortized discount and debt issuance costs | 303,948 | 303,416 |
Exchangeable Senior Notes [Member] | 5.0% Exchangeable Senior Notes due March 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 86,250 | 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 - Compon60
Long-term Borrowings - Components of Long-term Borrowings (Parenthetical) (Detail) | Jan. 17, 2017 | Jul. 18, 2013 | Mar. 31, 2018 | Dec. 31, 2017 |
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.00% | 5.00% | 5.00% | |
Due date | Mar. 1, 2021 | 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 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Repurchase of common stock, shares | 1,795,444 | ||||
Repurchase of common stock | $ 11,401,000 | ||||
Debt issuance costs paid | 5,902,000 | ||||
Interest expense related to the Exchangeable Notes | 1,147,000 | ||||
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 | $ 5,039,000 | ||||
Interest expense related to the Exchangeable Notes | $ 3,926,000 | 3,912,000 | |||
Original debt issue discount | $ 1,125,000 | ||||
6.625% Senior Notes Due 2021 [Member] | Senior Notes [Member] | 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price plus accrued, unpaid interest and special interest to the date of redemption | 103.313% | ||||
6.625% Senior Notes Due 2021 [Member] | Senior Notes [Member] | 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price plus accrued, unpaid interest and special interest to the date of redemption | 101.656% | ||||
6.625% Senior Notes Due 2021 [Member] | Senior Notes [Member] | 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price plus accrued, unpaid interest and special interest to the date of redemption | 100.00% | ||||
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 86,250,000 | ||||
Interest rate | 5.00% | 5.00% | 5.00% | ||
Due date | Mar. 1, 2021 | Mar. 1, 2021 | 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 | $ 1,411,000 | $ 1,147,000 |
Accrued Severance Benefits - Ad
Accrued Severance Benefits - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Percentage of employees eligible for severance benefits | 98.00% |
Korea [Member] | Maximum [Member] | |
Retirement age of employees | 60 years |
Accrued Severance Benefits - Ch
Accrued Severance Benefits - Changes in Accrued Severance Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |||
Beginning balance | $ 149,795 | $ 130,144 | |
Provisions | 4,512 | 7,386 | |
Severance payments | (2,247) | (7,524) | |
Translation adjustments | 719 | 10,872 | |
Ending balance | 152,779 | 140,878 | |
Less: Cumulative contributions to the National Pension Fund | (255) | (270) | |
Group severance insurance plan | (635) | (660) | |
Accrued severance benefits, net | $ 151,889 | $ 139,948 | $ 148,905 |
Accrued Severance Benefits - Fu
Accrued Severance Benefits - Future Benefits Payments to Employees (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
Remainder of 2018 | $ 0 |
2,019 | 619 |
2,020 | 1,125 |
2,021 | 1,596 |
2,022 | 1,404 |
2,023 | 1,889 |
2024 - 2028 | $ 28,825 |
Foreign Currency Gain, Net - Ad
Foreign Currency Gain, Net - Additional Information (Detail) $ in Thousands | Mar. 31, 2018USD ($)₩ / $ | Dec. 31, 2017USD ($)₩ / $ |
Foreign Currency Transaction [Abstract] | ||
Exchange rates using first base rate | ₩ / $ | 1,066.5 | 1,071.4 |
Intercompany loan balances | $ | $ 677,657 | $ 677,267 |
Restructuring and Other Gain -
Restructuring and Other Gain - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restricted cash | $ 18,251 | ||
Gain on sale of machinery and building as part of restructuring | $ 17,010 | ||
Sensor Business [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Proceeds from sale of business | $ 1,295 | ||
Net gain on sale of business | $ 375 | ||
Korea [Member] | Buildings [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Gross proceeds from sale of building | 18,204 | ||
Value-added tax, for sale of the building | 1,655 | ||
Restricted cash | 18,204 | ||
Deposits received | $ 16,549 | ||
Decrease in restricted cash due to release | 18,204 | ||
Korea [Member] | Buildings [Member] | Restructuring Gain [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Gain on sale of machinery and building as part of restructuring | $ 16,635 |
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 ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Early termination charges | $ 11,107 | ||
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 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expenses (benefits) | $ 990 | $ 853 | |
Statutory income tax rate | 21.00% | 35.00% |
Geographic and Segment Inform69
Geographic and Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)CustomerSegments | Mar. 31, 2017USD ($)Customer | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of operating segments | Segments | 2 | |
Total net sales | $ 165,819 | $ 161,710 |
Total gross profit | 44,581 | 41,570 |
Operating Segments [Member] | Standard Products Group [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | 88,363 | 78,145 |
Total gross profit | 24,039 | 18,235 |
Operating Segments [Member] | Restatement Adjustment [Member] | Display Solutions [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | (6,014) | |
Total gross profit | (1,225) | |
Operating Segments [Member] | Restatement Adjustment [Member] | Standard Products Group [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | 6,014 | |
Total gross profit | 1,225 | |
Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | $ 54,689 | $ 65,083 |
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% | |
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 | 2 | 1 |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Ten Customers [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 59.00% | 62.00% |
Number of customers | Customer | 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 | 17.90% | 14.80% |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer Two [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 10.40% |
Geographic and Segment Inform70
Geographic and Segment Information - Schedule of Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total net sales | $ 165,819 | $ 161,710 |
Total gross profit | 44,581 | 41,570 |
Operating Segments [Member] | Foundry Services Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 77,429 | 83,542 |
Total gross profit | 20,664 | 23,312 |
Operating Segments [Member] | Standard Products Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 88,363 | 78,145 |
Total gross profit | 24,039 | 18,235 |
Operating Segments [Member] | Standard Products Group [Member] | Display Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 49,696 | 42,865 |
Operating Segments [Member] | Standard Products Group [Member] | Power Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 38,667 | 35,280 |
All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net sales | 27 | 23 |
Total gross profit | $ (122) | $ 23 |
Geographic and Segment Inform71
Geographic and Segment Information - Summary of Revenue Disaggregated Depending on Timing of Revenue Recognition (Detail) - Foundry Services Group [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total | $ 77,429 |
Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total | 2,797 |
Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Total | $ 74,632 |
Geographic and Segment Inform72
Geographic and Segment Information - Net Sales by Region, Based on Location of Products are Billed (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | $ 165,819 | $ 161,710 |
Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | 54,689 | 65,083 |
Asia Pacific (Other Than Korea) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | 89,706 | 79,464 |
U.S.A. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | 9,818 | 9,167 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | 10,978 | 7,853 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net sales | $ 628 | $ 143 |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (38,896) | $ (38,413) |
Derivative adjustments | 2,626 | 5,299 |
Total | $ (36,270) | $ (33,114) |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning | $ (39,637) | $ (72,114) |
Total other comprehensive loss | (3,156) | (33,318) |
Balance, ending | (29,934) | (70,576) |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning | (38,413) | 14,460 |
Other comprehensive income (loss) before reclassifications | (483) | (35,324) |
Total other comprehensive loss | (483) | (35,324) |
Balance, ending | (38,896) | (20,864) |
Derivative Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning | 5,299 | (436) |
Other comprehensive income (loss) before reclassifications | (67) | 2,503 |
Amounts reclassified from accumulated other comprehensive income | (2,606) | (497) |
Total other comprehensive loss | (2,673) | 2,006 |
Balance, ending | 2,626 | 1,570 |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning | (33,114) | 14,024 |
Other comprehensive income (loss) before reclassifications | (550) | (32,821) |
Amounts reclassified from accumulated other comprehensive income | (2,606) | (497) |
Total other comprehensive loss | (3,156) | (33,318) |
Balance, ending | $ (36,270) | $ (19,294) |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Income tax related to accumulated other comprehensive income (loss) | $ 0 | $ 0 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 2,763 | $ 43,738 |
Basic weighted average common stock outstanding | 34,253,111 | 33,662,297 |
Basic earnings per share | $ 0.08 | $ 1.30 |
Diluted Earnings per Share | ||
Net income | $ 2,763 | $ 43,738 |
Add back: Interest expense on Exchangeable Notes | 1,147 | |
Net income allocated to common stockholders | $ 2,763 | $ 44,885 |
Basic weighted average common stock outstanding | 34,253,111 | 33,662,297 |
Net effect of dilutive equity awards | 901,582 | 638,994 |
Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock | 8,590,753 | |
Diluted weighted average common stock outstanding | 35,154,693 | 42,892,044 |
Diluted earnings per share | $ 0.08 | $ 1.05 |
Earnings per Share - Schedule77
Earnings per Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) | Mar. 31, 2018 | 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% | 5.00% |
Earnings per Share - Schedule78
Earnings per Share - Schedule of Antidilutive Securities Excluded from the Computation of Earnings Per Common Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | 810,572 | 1,256,448 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018shares | |
Common Stock [Member] | Exchangeable Notes [Member] | |
Class of Stock [Line Items] | |
Conversion of exchangeable notes excluded from computation of diluted earnings per share | 10,448,213 |
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, 2016 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||||||||||
Restricted cash | $ 18,251 | |||||||||
Other Current Assets [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Prepayments to suppliers | $ 7,264 | $ 7,404 | ||||||||
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 | |||||||||
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 | |||||||||
Settlement charge paid | $ 3,000 |