Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MAGNACHIP SEMICONDUCTOR Corp | |
Entity Central Index Key | 0001325702 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, State or Province | DE | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | MX | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 35,065,248 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 157,293 | $ 151,657 |
Accounts receivable, net | 60,688 | 47,447 |
Inventories, net | 37,130 | 41,404 |
Other receivables | 8,297 | 10,200 |
Prepaid expenses | 11,148 | 9,003 |
Hedge collateral (Note 9) | 13,270 | 9,820 |
Other current assets (Notes 10 and 18) | 6,762 | 10,013 |
Current assets held for sale (Note 2) | 201,619 | 99,821 |
Total current assets | 496,207 | 379,365 |
Property, plant and equipment, net | 67,201 | 73,068 |
Operating lease right-of-use assets | 1,413 | 1,876 |
Intangible assets, net | 2,583 | 2,769 |
Long-term prepaid expenses | 4,117 | 5,757 |
Other non-current assets | 8,439 | 9,059 |
Non-current assets held for sale (Note 2) | 123,434 | |
Total assets | 579,960 | 595,328 |
Current liabilities | ||
Accounts payable | 40,206 | 40,376 |
Other accounts payable | 6,379 | 6,410 |
Accrued expenses | 41,489 | 44,799 |
Operating lease liabilities | 1,301 | 1,625 |
Current portion of long-term borrowings, net | 82,328 | |
Other current liabilities (Note 10) | 6,982 | 3,583 |
Current liabilities held for sale (Note 2) | 142,013 | 37,040 |
Total current liabilities | 320,698 | 133,833 |
Long-term borrowings, net | 223,012 | 304,743 |
Accrued severance benefits, net | 48,765 | 51,181 |
Other non-current liabilities (Note 6) | 8,641 | 9,671 |
Non-current liabilities held for sale (Note 2) | 110,881 | |
Total liabilities | 601,116 | 610,309 |
Commitments and contingencies (Note 18) | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 150,000,000 shares authorized, 44,160,355 shares issued and 35,054,682 outstanding at March 31, 2020 and 43,851,991 shares issued and 34,800,312 outstanding at December 31, 2019 | 442 | 439 |
Additional paid-in capital | 153,286 | 152,404 |
Accumulated deficit | (81,880) | (58,131) |
Treasury stock, 9,105,673 shares at March 31, 2020 and 9,051,679 shares at December 31, 2019, respectively | (107,649) | (107,033) |
Accumulated other comprehensive income (loss) | 14,645 | (2,660) |
Total stockholders' deficit | (21,156) | (14,981) |
Total liabilities and stockholders' equity | $ 579,960 | $ 595,328 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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 | 44,160,355 | 43,851,991 |
Common stock, shares outstanding | 35,054,682 | 34,800,312 |
Treasury stock, shares | 9,105,673 | 9,051,679 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales | $ 120,473 | $ 107,267 |
Cost of sales | 91,343 | 88,244 |
Gross profit | 29,130 | 19,023 |
Operating expenses | ||
Selling, general and administrative expenses | 12,102 | 12,036 |
Research and development expenses | 10,509 | 12,044 |
Other charges | 554 | |
Total operating expenses | 23,165 | 24,080 |
Operating income (loss) | 5,965 | (5,057) |
Interest expense | (5,607) | (5,637) |
Foreign currency loss, net | (30,971) | (10,610) |
Loss on early extinguishment of long-term borrowings, net | (42) | |
Other income, net | 838 | 587 |
Loss from continuing operations before income tax expense | (29,775) | (20,759) |
Income tax expense | 1,303 | 796 |
Loss from continuing operations | (31,078) | (21,555) |
Income (loss) from discontinued operations, net of tax | 7,329 | (12,570) |
Net loss | $ (23,749) | $ (34,125) |
Basic and diluted earnings (loss) per common share – | ||
Continuing operations | $ (0.89) | $ (0.63) |
Discontinued operations | 0.21 | (0.37) |
Total | $ (0.68) | $ (1) |
Weighted average number of shares – basic and diluted | 34,893,157 | 34,194,878 |
Standard Products Group [Member] | ||
Net sales | $ 110,736 | $ 100,264 |
Cost of sales | 81,606 | 81,241 |
Gross profit | 29,130 | 19,023 |
Fab Three Foundry Services [Member] | ||
Net sales | 9,737 | 7,003 |
Cost of sales | 9,737 | $ 7,003 |
Gross profit |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (23,749) | $ (34,125) |
Other comprehensive income (loss) | ||
Foreign currency translation adjustments | 22,251 | 7,304 |
Derivative adjustments | ||
Fair valuation of derivatives | (5,004) | (499) |
Reclassification adjustment for loss on derivatives included in net loss | 58 | 187 |
Total other comprehensive income | 17,305 | 6,992 |
Total comprehensive loss | $ (6,444) | $ (27,133) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock Outstanding [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Deficit) [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance beginning at Dec. 31, 2018 | $ (17,310) | $ 431 | $ 142,600 | $ (36,305) | $ (103,926) | $ (20,110) | |
Balance, Shares beginning at Dec. 31, 2018 | 34,441,232 | ||||||
Stock-based compensation | 669 | 669 | |||||
Exercise of stock options | 48 | 0 | 48 | ||||
Exercise of stock options, Shares | 8,624 | ||||||
Settlement of restricted stock units | 2 | (2) | |||||
Settlement of restricted stock units, Shares | 167,453 | ||||||
Acquisition of treasury stock | (2,585) | (2,585) | |||||
Acquisition of treasury stock, Shares | (393,807) | ||||||
Other comprehensive income, net | 6,992 | 6,992 | |||||
Net loss | (34,125) | ||||||
Balance ending at Mar. 31, 2019 | (46,311) | 433 | 143,315 | (70,430) | (106,511) | (13,118) | |
Balance, Shares ending at Mar. 31, 2019 | 34,223,502 | ||||||
Balance beginning at Dec. 31, 2019 | $ (14,981) | 439 | 152,404 | (58,131) | (107,033) | (2,660) | |
Balance, Shares beginning at Dec. 31, 2019 | 34,800,312 | 34,800,312 | |||||
Stock-based compensation | $ 885 | 885 | |||||
Settlement of restricted stock units | 3 | (3) | |||||
Settlement of restricted stock units, Shares | 308,364 | ||||||
Acquisition of treasury stock | (616) | (616) | |||||
Acquisition of treasury stock, Shares | (53,994) | ||||||
Other comprehensive income, net | 17,305 | 17,305 | |||||
Net loss | (23,749) | (23,749) | |||||
Balance ending at Mar. 31, 2020 | $ (21,156) | $ 442 | $ 153,286 | $ (81,880) | $ (107,649) | $ 14,645 | |
Balance, Shares ending at Mar. 31, 2020 | 35,054,682 | 35,054,682 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (23,749) | $ (34,125) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 7,935 | 8,303 |
Provision for severance benefits | 5,071 | 3,117 |
Amortization of debt issuance costs and original issue discount | 598 | 571 |
Loss on foreign currency, net | 38,480 | 11,720 |
Restructuring and other charges | 2,138 | 2,822 |
Provision for inventory reserves | 570 | 4,645 |
Stock-based compensation | 885 | 669 |
Loss on early extinguishment of long-term borrowings, net | 42 | |
Other | 107 | 96 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (10,430) | (12,844) |
Unbilled accounts receivable, net | 6,937 | 9,726 |
Inventories | (4,863) | (15,230) |
Other receivables | 1,982 | (4,205) |
Other current assets | 909 | 1,836 |
Accounts payable | 1,988 | 20,874 |
Other accounts payable | (1,817) | 2,797 |
Accrued expenses | (6,611) | (5,365) |
Other current liabilities | 1,062 | (6,293) |
Other non-current liabilities | 1,808 | 1,085 |
Payment of severance benefits | (2,080) | (2,263) |
Other | 148 | 347 |
Net cash provided by (used in) operating activities | 21,068 | (11,675) |
Cash flows from investing activities | ||
Proceeds from settlement of hedge collateral | 4,239 | 2,242 |
Payment of hedge collateral | (7,841) | |
Purchase of property, plant and equipment | (3,351) | (11,207) |
Payment for intellectual property registration | (229) | (232) |
Collection of guarantee deposits | 47 | 298 |
Payment of guarantee deposits | (892) | |
Other | 8 | (10) |
Net cash used in investing activities | (7,127) | (9,801) |
Cash flows from financing activities | ||
Repurchase of long-term borrowings | (1,175) | |
Proceeds from exercise of stock options | 48 | |
Acquisition of treasury stock | (1,021) | (2,353) |
Repayment of financing related to water treatment facility arrangement | (135) | (143) |
Repayment of principal portion of finance lease liabilities | (60) | (59) |
Net cash used in financing activities | (1,216) | (3,682) |
Effect of exchange rates on cash and cash equivalents | (7,089) | (1,468) |
Net increase (decrease) in cash and cash equivalents | 5,636 | (26,626) |
Cash and cash equivalents | ||
Beginning of the period | 151,657 | 132,438 |
End of the period | 157,293 | 105,812 |
Supplemental cash flow information | ||
Cash paid for interest | 9,522 | 9,549 |
Cash paid for income taxes | 1,534 | 1,556 |
Non-cash investing and financing activities | ||
Property, plant and equipment additions in other accounts payable | $ 687 | 2,643 |
Acquisition Of Treasury Stock Related To Tax With holding For Share Based Compensation | $ (232) |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 On March 30, 2020, the Company entered into a definitive Business Transfer Agreement (the “BTA”) for the sale of its Foundry Services Group business and its fabrication facility located in Cheongju (“Fab 4”), the larger of the Company’s two 8-inch manufacturing facilities, to Magnus Semiconductor, LLC, a Korean limited liability company, or one of its wholly owned subsidiaries (the “Buyer”) for a purchase price equal to the KRW equivalent o f $344.7 million in cash, subject to working capital adjustments set forth in the BTA. The Buyer is a special purpose company formed by Alchemist Capital Partners Korea Co., Ltd. and Credian Partners, Inc. This planned divestiture of the Foundry Services Group business and Fab 4 will allow the Company to strategically shift its operational focus to its standard products business. The Foundry Services Group was historically a reportable segment. As a result of the entry into the BTA, the results of the Foundry Services Group were classified as discontinued operations in the Company’s consolidated statements of operations and excluded from both continuing operations and segment results for all periods presented. Accordingly, commencing with the first quarter of 2020, the Company has one reportable segment: its standard products business, together with transitional foundry services associated with its fabrication facility located in Gumi, Korea, known as “Fab 3,” that it expects to perform for the Buyer for a period of up to three years (the “Transitional Fab 3 Foundry Services”). The Company’s standard products business includes its Display Solutions and Power Solutions business lines. The Company’s Display Solutions products provide panel display solutions to major suppliers of large and small rigid and flexible panel displays, and mobile, automotive applications and home appliances. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in communications, consumer and industrial applications. Basis of Presentation The 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” and, accordingly, do not include all of the information and note disclosures required by US GAAP for complete financial statements, except for the changes below. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for a full year or for any other periods. The Company has reclassified certain prior year amounts to conform to the current year’s presentation for discontinued operations to reflect the anticipated divestiture of its Foundry Services Group business and Fab 4. The assets to be acquired and liabilities to be transferred to the Buyer, as specified in the BTA, have been classified as assets and liabilities held for sale in the Company’s consolidated balance sheets, subject to adjustments set forth in the BTA. See Note 2 “Discontinued Operations and Assets Held for Sale” for additional information. The consolidated statements of cash flows have not been adjusted to separately disclose cash flows related to discontinued operations, but the material items in the operating and investing activities of cash flows relating to discontinued operations are disclosed in Note 2. Unless otherwise stated, information in these notes to consolidated financial statements relates to the Company’s continuing operations and excludes the discontinued operations. There have been no material changes to the Company’s significant accounting policies as of and for the three months ended March 31, 2020, except for those related to discontinued operations and assets held for sale as described below, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K Discontinued Operations and Assets Held for Sale The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standard Codification (“ASC”) 205, “Presentation of Financial Statements” (“ASC 205”) and ASC 360, “Property, Plant and Equipment” (“ASC 360”). Assets and liabilities of a business classified as held for sale are recorded at the lower of its carrying amount or estimated fair value less costs to sell. If the carrying amount of the business exceeds its estimated fair value less costs to sell, a loss is recognized. Assets and liabilities related to discontinued operations classified as held for sale are segregated in the current and prior balance sheets in the period in which the business is classified as held for sale. The results of discontinued operations are reported in “Income (loss) from discontinued operations, net of tax” in the accompanying consolidated statements of operations for the current and prior periods commencing in the period in which the business meets the criteria. Recent Accounting Pronouncements Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12, 2019-12”). 2019-12 2019-12 2019-12 Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13, 2016-13”). 2016-13 No. 2019-04, 2019-04”), No. 2019-11, 2019-11”) 2016-13. No. 2020-02, 2020-02”), 2019-04, 2019-11 2020-02 In August 2018, the FASB issued Accounting Standards Update No. 2018-13 2018-13”). 2018-13 |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Assets Held for Sale [Abstract] | |
Discontinued Operations and Assets Held for Sale | 2. Discontinued Operations and Assets Held for Sale On March 30, 2020, the Company entered into the BTA for the sale of its Foundry Services Group business and Fab 4. Following the consummation of the sale, and for up to three years, the Company is expected to provide the Transitional Fab 3 Foundry Services. For the periods prior to the closing of the sale, revenue from providing the Transitional Fab 3 Foundry Services to the Foundry Services Group is recorded at cost on both of the continuing and discontinued businesses. The sale is expected to close within approximately four to six months from the date of the BTA, subject to customary closing conditions. The following table summarizes the results from discontinued operations, net of tax, for the three months ended March 31, 2020 and 2019. Three Months Ended March 31, March 31, (In thousands of US dollars) Revenues: Net sales – Foundry Services Group $ 86,279 $ 57,116 Net sales – transitional Fab 3 foundry services (9,737 ) (7,003 ) Total revenues 76,542 50,113 Cost of sales: Cost of sales – Foundry Services Group 65,583 53,438 Cost of sales – transitional Fab 3 foundry services (9,737 ) (7,003 ) Total cost of sales 55,846 46,435 Gross profit 20,696 3,678 Operating expenses: Selling, general and administrative expenses 5,644 6,034 Research and development expenses 7,403 7,974 Restructuring and other charges 2,115 2,894 Total operating expenses 15,162 16,902 Operating income (loss) from discontinued operations 5,534 (13,224 ) Foreign currency gain, net 2,097 613 Other income 107 86 Income (loss) from discontinued operations before income tax expense 7,738 (12,525 ) Income tax expense 409 45 Income (loss) from discontinued operations, net of tax $ 7,329 $ (12,570 ) For the three months ended March 31, 2020 and 2019, the Company recorded $2,115 thousand and $743 thousand, respectively, in professional fees incurred in connection with the Foundry Services Group business and Fab 4, and recorded such costs as restructuring and other charges in the above. For the three months ended March 31, 2019, the Company also recorded in the same line a $2,151 thousand restructuring-related charge to its fab employees. The following table provides a reconciliation of the aggregate carrying amounts of major classes of assets and liabilities relating to the Foundry Services Group business and Fab 4, which are included in assets and liabilities held for sale in the accompanying consolidated balance sheets for each of the periods presented: March 31, December 31, (In thousands of US dollars) Assets Current assets Accounts receivable, net $ 40,735 $ 48,194 Unbilled accounts receivable, net 9,374 16,463 Inventories, net 34,968 31,863 Other current assets 2,891 3,301 Other assets of the disposal group classified as held for sale 1,461 — Total current assets held for sale $ 89,429 $ 99,821 Property, plant and equipment, net 99,604 109,506 Intangible assets, net 1,202 1,245 Other non-current 11,384 12,683 Total assets held for sale $ 201,619 $ 223,255 Liabilities Current liabilities Accounts payable $ 20,462 $ 20,503 Other current liabilities 14,773 16,537 Total current liabilities held for sale $ 35,235 $ 37,040 Accrued severance benefits, net 93,121 95,547 Other non-current 13,657 15,334 Total liabilities held for sale $ 142,013 $ 147,921 As of March 31, 2020, all The following table provides supplemental cash flows information related to discontinued operations: Three Months Ended March 31, March 31, (In thousands of US dollars) Significant non - Depreciation and amortization $ 5,365 $ 5,752 Provision for severance benefits 3,052 1,803 Stock-based compensation 123 106 Investing activities: Capital expenditures $ (1,479 ) $ (4,469 ) |
Sales of Accounts Receivable an
Sales of Accounts Receivable and Receivable Discount Program | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Sales of Accounts Receivable and Receivable Discount Program | 3. 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. There was no sale of these accounts receivable for the three months ended March 31, 2020. For the three months ended March 31, 2019, the proceeds from the sales of these accounts receivable totaled $7,989 thousand 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, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories as of March 31, 2020 and December 31, 2019 consist of the following (in thousands): March 31, December 31, Finished goods $ 8,448 $ 10,087 Semi-finished goods and work-in-process 25,342 28,815 Raw materials 7,916 8,449 Materials in-transit 231 — Less: inventory reserve (4,807 ) (5,947 ) Inventories, net $ 37,130 $ 41,404 Changes in inventory reserve for the three months ended March 31, 2020 and 2019 are as follows (in thousands): Three Months Ended March 31, March 31, Beginning balance $ (5,947 ) $ (4,845 ) Change in reserve Inventory reserve charged to costs of sales (1,275 ) (5,073 ) Sale of previously reserved inventory 906 476 (369 ) (4,597 ) Write off 499 592 Translation adjustments 316 160 Reclassified to assets held for sale 694 — Ending balance $ (4,807 ) $ (8,690 ) 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, work-in-process |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 5. Property, Plant and Equipment Property, plant and equipment as of March 31, 2020 and December 31, 2019 are comprised of the following (in thousands): March 31, December 31, Buildings and related structures $ 21,309 $ 22,502 Machinery and equipment 85,213 89,453 Finance lease right-of-use 306 323 Others 20,863 22,242 127,691 134,520 Less: accumulated depreciation (73,987 ) (75,704 ) Land 13,497 14,252 Property, plant and equipment, net $ 67,201 $ 73,068 Aggregate depreciation expenses totaled $2,409 thousand and $2,412 thousand for the three months ended March 31, 2020 and 2019, respectively. Concurrent with the execution of the BTA, the Company executed a factory (kun) mortgage agreement under which the real property owned by the Company in respect of the Fab 3 fabrication facility located in Gumi, Korea and other material assets located in, attached to or forming part of such facility were pledged as collateral for purposes of securing the payment of its termination fee of $34,470 thousand under the BTA. The Company has a right to replace the factory (kun) mortgage at any time with a deposit of $34,470 thousand cash into escrow . |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets Intangible assets as of March 31, 2020 and December 31, 2019 are comprised of the following (in thousands): March 31, 2020 Gross Accumulated Net Technology $ 6,226 $ (6,226 ) $ — Customer relationships 9,641 (9,641 ) — Intellectual property assets 8,314 (5,731 ) 2,583 Intangible assets, net $ 24,181 $ (21,598 ) $ 2,583 December 31, 2019 Gross Accumulated Net Technology $ 6,575 $ (6,575 ) $ — Customer relationships 10,180 (10,180 ) — Intellectual property assets 8,637 (5,868 ) 2,769 Intangible assets, net $ 25,392 $ (22,623 ) $ 2,769 Aggregate amortization expenses for intangible assets totaled $161 thousand and $139 thousand for the three months ended March 31, 2020 and 2019, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 7. Leases The Company has operating and finance leases for buildings and other assets such as vehicles and office equipment. The Company’s leases have remaining lease terms ranging from 1 year to 4 years. The tables below present financial information related to the Company’s leases. The Company adopted the new lease accounting standard as of January 1, 2019, using the modified retrospective transition method. The tables below present financial information related to the Company’s leases Supplemental balance sheets information related to leases as of March 31, 2020 and December 31, 2019 are as follows (in thousands): Leases Classification March 31, 2020 December 31, 2019 Assets Operating lease Operating lease right-of-use $ 1,413 $ 1,876 Finance lease Property, plant and equipment, net 229 258 Total lease assets $ 1,642 $ 2,134 Liabilities Current Operating Operating lease liabilities $ 1,301 $ 1,625 Finance Other current liabilities 58 60 Non-current Operating Other non-current 112 251 Finance Other non-current 182 208 Total lease liabilities $ 1,653 $ 2,144 The following table presents the weighted average remaining lease term and discount rate: March 31, 2020 December 31, 2019 Weighted average remaining lease term Operating leases 1.0 years 1.1 years Finance leases 3.8 years 4.0 years Weighted average discount rate Operating leases 7.35 % 7.19 % Finance leases 7.75 % 7.75 % The components of lease cost included in the Company’s consolidated statements of operations, are as follows (in thousands): Three Months March 31, March 31, Operating lease cost $ 468 $ 525 Finance lease cost Amortization of right-of-use 16 17 Interest on lease liabilities 5 6 Total lease cost $ 489 $ 548 The above table does not include an immaterial cost of short-term leases for the three months ended March 31, 2020 and 2019. Other lease information is as follows (in thousands): Three Months March 31, March 31, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 468 $ 525 Operating cash flows from finance leases 5 6 Financing cash flows from finance leases 14 14 The aggregate future lease payments for operating and finance leases as of March 31, 2020 are as follows (in thousands): Operating Finance 2020 $ 1,192 $ 55 2021 254 74 2022 21 74 2023 1 74 Thereafter — — Total future lease payments 1,468 277 Less: Imputed interest (55 ) (37 ) Present value of future payments $ 1,413 $ 240 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 8. Accrued Expenses Accrued expenses as of March 31, 2020 and December 31, 2019 are comprised of the following (in thousands): March 31, December 31, Payroll, benefits and related taxes, excluding severance benefits $ 8,992 $ 8,493 Withholding tax attributable to intercompany interest income 23,771 23,371 Interest on senior notes 3,444 8,205 Outside service fees 1,224 1,996 Others 4,058 2,734 Accrued expenses $ 41,489 $ 44,799 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 9. 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 US dollar denominated revenues. Details of derivative contracts as of March 31, 2020 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement August 13, 2019 Zero cost collar $ 30,000 April 2020 to June 2020 September 27, 2019 Zero cost collar $ 21,000 April 2020 to June 2020 December 4, 2019 Zero cost collar $ 30,000 July 2020 to December 2020 January 31, 2020 Zero cost collar $ 30,000 July 2020 to December 2020 February 3, 2020 Zero cost collar $ 18,000 July 2020 to December 2020 February 21, 2020 Zero cost collar $ 30,000 July 2020 to December 2020 Details of derivative contracts as of December 31, 2019 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement August 13, 2019 Zero cost collar $ 60,000 January 2020 to June 2020 September 27, 2019 Zero cost collar $ 42,000 January 2020 to June 2020 December 4, 2019 Zero cost collar $ 30,000 July 2020 to December 2020 The zero cost collar 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 fair values of the Company’s outstanding zero cost collar contracts recorded as assets and liabilities as of March 31, 2020 and December 31, 2019 are as follows (in thousands): Derivatives designated as hedging instruments: March 31, December 31, Asset Derivatives: Zero cost collars Other current assets $ — $ 1,456 Liability Derivatives: Zero cost collars Other current liabilities $ 3,500 $ — Offsetting of derivative liabilities as of March 31, 2020 is as follows (in thousands): As of March 31, 2020 Gross amounts of Gross amounts Net amounts of Gross amounts not offset Net amount Financial Cash collateral Liability Derivatives: Zero cost collars $ 3,500 $ — $ 3,500 $ — $ (2,720 ) $ 780 Offsetting of derivative assets as of December 31, 2019 is as follows (in thousands): As of December 31, 2019 Gross amounts of Gross amounts Net amounts of Gross amounts not offset Net amount Financial Cash collateral Asset Derivatives: Zero cost collars $ 1,456 $ — $ 1,456 $ — $ 1,070 $ 2,526 For derivative instruments that are designated and qualify as cash flow hedges, gains or losses on the derivative aside from components excluded from the assessment of effectiveness are 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 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 statements of operations for the three months ended March 31, 2020 and 2019 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location/Amount of Loss Into Statement of Operations Location/Amount of Gain (Loss) Three Months Ended Three Months Ended Three Months Ended 2020 2019 2020 2019 2020 2019 Zero cost collars $ (5,004 ) $ 34 Net sales $ (58 ) $ — Other income, net $ 117 $ — Forwards $ — $ (533 ) Net sales $ — $ (89 ) Other income, net $ — $ (56 ) Forwards—excluded time value Net sales $ — $ (98 ) $ (5,004 ) $ (499 ) $ (58 ) $ (187 ) $ 117 $ (56 ) As of March 31, 2020, the amount expected to be reclassified from accumulated other comprehensive income into loss within the next twelve months is $3,401 thousand. The Company set aside $10,550 thousand and $8,750 thousand of cash deposits to the counterparties, Nomura Financial Investment (Korea) Co., Ltd. (“NFIK”) and Deutsche Bank AG, Seoul Branch (“DB”), as required for the zero cost collar contracts outstanding as of March 31, 2020 and December 31, 2019, 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 and DB for any exposure in excess of $500 thousand, and $2,720 thousand and $1,070 thousand of additional cash collateral were required and recorded as hedge collateral on the consolidated balance sheets as of March 31, 2020 and December 31, 2019, respectively. These cost collar contracts may be terminated by the counterparty in a number of circumstances, including if the Company’s borrowing rating falls below B-/B3 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements Fair Value of Financial Instruments As of March 31, 2020, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Quoted Prices in Significant Significant Liabilities: Derivative liabilities (other current liabilities) $ 3,500 $ 3,500 — $ 3,500 — As of December 31, 2019, the following table represents the Company’s assets measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Quoted Prices in Significant Significant Assets: Derivative assets (other current assets) $ 1,456 $ 1,456 — $ 1,456 — Items not reflected in the table above include cash equivalents, accounts receivable, other receivables, accounts payable, and other accounts payable, fair value of which approximate carrying values due to the short-term nature of these instruments. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs. Fair Value of Borrowings March 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (In thousands of US dollars) Borrowings: 5.0% Exchangeable Senior Notes due March 2021 (Level 2) $ 82,328 $ 94,479 $ 81,959 $ 116,078 6.625% Senior Notes due July 2021 (Level 2) $ 223,012 $ 210,795 $ 222,784 $ 224,250 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. In December 2018 and February 2019, MagnaChip Semiconductor S.A. repurchased a principal amount equal to $1,590 thousand and $920 thousand, respectively, of the Exchangeable Notes in the open market. 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 11, “Borrowings.” On July 18, 2013, the Company issued 6.625% Senior Notes due July 15, 2021 (the “2021 Notes”) of $225,000 thousand, which represents the principal amount, excluding $1,125 thousand of original issue discount and $5,039 thousand of debt issuance costs. In December 2018 and January 2019, the Company repurchased a principal amount equal to $500 thousand and $250 thousand, respectively, of the 2021 Notes in the open market. 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 11, “Borrowings.” Fair Values Measured on a Non-recurring The Company’s non-financial non-recurring |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | 11. Borrowings Borrowings as of March 31, 2020 and December 31, 2019 are as follows (in thousands): March 31, December 31, 5.0% Exchangeable Senior Notes due March 2021 $ 83,740 $ 83,740 6.625% Senior Notes due July 2021 224,250 224,250 Less: unamortized discount and debt issuance costs (2,650 ) (3,247 ) Total borrowings, net 305,340 304,743 Less: current portion of long-term borrowings, net (82,328 ) — Long-term borrowings, net $ 223,012 $ 304,743 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, 2020 and 2019 were $1,416 thousand and $1,408 thousand, respectively. In December 2018, the Company repurchased a principal amount equal to $1,590 thousand of the Exchangeable Notes in the open market, resulting in a loss of $234 thousand, which was recorded as loss on early extinguishment of long-term borrowings, net in the consolidated statements of operations for the year ended December 31, 2018. In February 2019, the Company repurchased a principal amount equal to $920 thousand of the Exchangeable Notes in the open market, resulting in a loss of $63 thousand, which was recorded as loss on early extinguishment of long-term borrowings, net in the consolidated statements of operations for the year ended December 31, 2019. 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. On or after July 15, 2019, the Company can optionally redeem all or a part of the 2021 Notes at a redemption price equal to 100% of the principal amount of the notes 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 expense related to the 2021 Notes for the three months ended March 31, 2020 and 2019 were $3,943 thousand and $3,930 thousand, respectively. In December 2018, the Company repurchased a principal amount equal to $500 thousand of the 2021 Notes in the open market, resulting in a net gain of $28 thousand, which was recorded as loss on early extinguishment of long-term borrowings, net in the consolidated statements of operations for the year ended December 31, 2018. In January 2019, the Company repurchased a principal amount equal to $250 thousand of the 2021 Notes in the open market, resulting in a net gain of $21 thousand, which was recorded as loss on early extinguishment of long-term borrowings, net in the consolidated statements of operations for the year ended December 31, 2019. |
Accrued Severance Benefits
Accrued Severance Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Accrued Severance Benefits | 12. 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, 2020, 98% of all employees of the Company were eligible for severance benefits. Changes in accrued severance benefits are as follows (in thousands): Three Months Ended March 31, March 31, Beginning balance $ 53,344 $ 55,691 Provisions 2,019 1,314 Severance payments (1,952 ) (1,496 ) Translation adjustments (2,801 ) (956 ) 50,610 54,553 Less: Cumulative contributions to severance insurance deposit accounts (1,557 ) (869 ) The National Pension Fund (75 ) (87 ) Group severance insurance plan (213 ) (243 ) Accrued severance benefits, net $ 48,765 $ 53,354 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. In the Company began contributing to certain severance insurance deposit accounts a certain percentage of severance benefits that are accrued for eligible employees for their services from January 1, 2018. These accounts consist of time deposits and other guaranteed principal and interest, and are maintained at insurance companies, banks or security companies for the benefit of employees. The Company deducts the contributions made to these severance insurance deposit accounts from its accrued severance benefits. The Company is liable to pay the following future benefits to its non-executive Severance benefit Remainder of 2020 $ 369 2021 626 2022 823 2023 580 2024 788 2025 2,201 2026 – 2030 19,439 The above amounts were determined based on the non-executive non-executive Korea’s mandatory retirement age is 60 under the Employment Promotion for the Aged Act. |
Foreign Currency Loss, Net
Foreign Currency Loss, Net | 3 Months Ended |
Mar. 31, 2020 | |
Foreign Currency [Abstract] | |
Foreign Currency Loss, | 13. Foreign Currency Loss, Net Net foreign currency gain or loss includes non-cash non-cash |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14 . Income Taxes The Company and its subsidiaries file income tax returns in Korea, Japan, Taiwan, the US and in various other jurisdictions. The Company is subject to income- or non-income A loss from continuing operations before income tax expense for the three months ended March 31, 2020 and 2019 was $29,775 thousand and $20,759 thousand, respectively. For the three months ended March 31, 2020 and 2019, the Company recorded an income tax expense on continuing of $1,303 thousand and $796 thousand, respectively, primarily attributable to interest on intercompany loan balances. Income tax expense was recorded for the Company’s Korean subsidiary based on the estimated taxable income for the respective periods, combined with its ability to utilize net operating loss carryforwards up to 60% in 2019 and 2020. |
Geographic and Other Informatio
Geographic and Other Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic and Segment Information | 15. Geographic and Other Historically, the Company operated in two reportable segments: Foundry Services Group and Standard Products Group. The Company’s Foundry Services Group provides specialty analog and mixed-signal foundry services mainly for fabless and Integrated Device Manufacturer (“IDM”) semiconductor companies that primarily serve communications, IoT, consumer, industrial and automotive applications. The Company’s Standard Products Group is comprised of two business lines: Display Solutions and Power Solutions. The Company’s Display Solutions products provide panel display solutions to major suppliers of large and small rigid and flexible panel displays, and mobile, automotive applications and home appliances. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in communications, consumer and industrial applications. On March 30, 2020, the Company entered into the BTA to sell its Foundry business and Fab 4. The planned divestiture of its Foundry business and Fab 4 allows the Company to strategically shift its operational focus to its standard products business. As a result, the results of the Foundry Services Group were classified as discontinued operations in the Company’s consolidated statements of operations and thus excluded from both continuing operations and segment results for all periods presented. Please see “Item 1. Financial Statements and Supplementary Data—Notes to Consolidated Financial Statements—Note 2. Discontinued Operations and Assets Held for Sale” for additional information on the results of discontinued operations. Accordingly, the Company now has one reportable segment. The Company’s chief operating decision maker is its Chief Executive Officer, who allocates resources and assesses performance of the business and other activities based on gross profit. The following sets forth information relating to the single continuing operating segment (in thousands): Three Months Ended March 31, March 31, Revenues Standard products business Display Solutions $ 77,593 $ 58,230 Power Solutions 33,143 42,034 Total standard products business $ 110,736 $ 100,264 Transitional Fab 3 foundry services 9,737 7,003 Total revenues $ 120,473 $ 107,267 Three Months Ended March 31, March 31, Gross Profit Standard products business $ 29,130 $ 19,023 Transitional Fab 3 foundry services — — Total gross profit $ 29,130 $ 19,023 The following is a summary of net sales – standard products business (which does not include the Transitional Fab 3 Foundry Services) by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended March 31, March 31, Korea $ 30,817 $ 34,646 Asia Pacific (other than Korea) 77,542 63,747 United States 709 462 Europe 971 1,133 Others 697 276 Total $ 110,736 $ 100,264 For the three months ended March 31, 2020 and 2019, of the Company’s net sales – standard products business in Asia Pacific (other than Korea) and net sales – standard products business in Greater China (China, Hong Kong and Macau) represented 95.3% and 94.1 % of total net sales – standard products business, respectively. Net sales from the Company’s top ten largest customers in the standard products business (which does not include the Transitional Fab 3 Foundry Services) accounted for 90% and 88 % for the three months ended March 31, 2020 and 2019, respectively. For the three months ended March 31, 2020, the Company had two customers that represented 52.8% and 15.8% of its net sales – standard products business. For the three months ended March 31, 2019, the Company had two customers that represented 45.0% and 11.6% of its net sales – standard products business. 95% of the Company’s property, plant and equipment from continuing operations are located in Korea as of March 31, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 16. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of the following as of March 31, 2020 and December 31, 2019, respectively (in thousands): March 31, December 31, Foreign currency translation adjustments $ 18,046 $ (4,205 ) Derivative adjustments (3,401 ) 1,545 Total $ 14,645 $ (2,660 ) Changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2020 and 2019 are as follows (in thousands): Three Months Ended March 31, 2020 Foreign Derivative Total Beginning balance $ (4,205 ) $ 1,545 $ (2,660 ) Other comprehensive income (loss) before reclassifications 22,251 (5,004 ) 17,247 Amounts reclassified from accumulated other comprehensive loss — 58 58 Net current-period other comprehensive income (loss) 22,251 (4,946 ) 17,305 Ending balance $ 18,046 $ (3,401 ) $ 14,645 Three Months Ended March 31, 2019 Foreign Derivative Total Beginning balance $ (20,061 ) $ (49 ) $ (20,110 ) Other comprehensive income (loss) before reclassifications 7,304 (499 ) 6,805 Amounts reclassified from accumulated other comprehensive loss — 187 187 Net current-period other comprehensive income (loss) 7,304 (312 ) 6,992 Ending balance $ (12,757 ) $ (361 ) $ (13,118 ) There was no income tax impact related to changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2020 and 2019 due to net operating loss carry-forwards available to offset taxable income and full allowance for deferred tax assets. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 17. Loss Per Share The following table illustrates the computation of basic and diluted loss per common share for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, March 31, (In thousands of US dollars, except share data) Basic and diluted loss per share Loss from continuing operations $ (31,078 ) $ (21,555 ) Income (loss) from discontinued operations, net of tax 7,329 (12,570 ) Net loss $ (23,749 ) $ (34,125 ) Weighted average number of shares – basic and diluted 34,893,157 34,194,878 Basic and diluted earnings (loss) per common share Continuing operations $ (0.89 ) $ (0.63 ) Discontinued operations 0.21 (0.37 ) Total $ (0.68 ) $ (1.00 ) The following outstanding instruments were excluded from the computation of diluted loss per share, as they have an anti-dilutive effect on the calculation: Three Months Ended March 31, March 31, Options 2,163,845 2,632,300 Restricted Stock Units 729,939 508,943 For the three months ended March 31, 2020 and 2019, 10,144,155 shares and 10,182,542 shares, respectively, of potential common stock from the assumed conversion of Exchangeable Notes were excluded from the computation of diluted loss per share as the effects were anti-dilutive for the periods. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 The Company, from time to time, may make advances in form of prepayments or deposits to suppliers to procure materials to meet its planned production. The Company recorded advances of $5,118 thousand and $6,593 thousand as other current assets as of March 31, 2020 and December 31, 2019, respectively. COVID-19 In December 2019, a strain of coronavirus causing a disease known as COVID-19 COVID-19 shelter-in-place While the Company experienced some minor disruption in its Power business from assembly and test subcontractors located in China in the first quarter of 2020 as a result of COVID-19, sub-contractors COVID-19 COVID-19 The Company continues to closely monitor and evaluate the nature and scope of the impact on COVID-19 |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 On March 30, 2020, the Company entered into a definitive Business Transfer Agreement (the “BTA”) for the sale of its Foundry Services Group business and its fabrication facility located in Cheongju (“Fab 4”), the larger of the Company’s two 8-inch manufacturing facilities, to Magnus Semiconductor, LLC, a Korean limited liability company, or one of its wholly owned subsidiaries (the “Buyer”) for a purchase price equal to the KRW equivalent o f $344.7 million in cash, subject to working capital adjustments set forth in the BTA. The Buyer is a special purpose company formed by Alchemist Capital Partners Korea Co., Ltd. and Credian Partners, Inc. This planned divestiture of the Foundry Services Group business and Fab 4 will allow the Company to strategically shift its operational focus to its standard products business. The Foundry Services Group was historically a reportable segment. As a result of the entry into the BTA, the results of the Foundry Services Group were classified as discontinued operations in the Company’s consolidated statements of operations and excluded from both continuing operations and segment results for all periods presented. Accordingly, commencing with the first quarter of 2020, the Company has one reportable segment: its standard products business, together with transitional foundry services associated with its fabrication facility located in Gumi, Korea, known as “Fab 3,” that it expects to perform for the Buyer for a period of up to three years (the “Transitional Fab 3 Foundry Services”). The Company’s standard products business includes its Display Solutions and Power Solutions business lines. The Company’s Display Solutions products provide panel display solutions to major suppliers of large and small rigid and flexible panel displays, and mobile, automotive applications and home appliances. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in communications, consumer and industrial applications. |
Basis of Presentation | Basis of Presentation The 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” and, accordingly, do not include all of the information and note disclosures required by US GAAP for complete financial statements, except for the changes below. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for a full year or for any other periods. The Company has reclassified certain prior year amounts to conform to the current year’s presentation for discontinued operations to reflect the anticipated divestiture of its Foundry Services Group business and Fab 4. The assets to be acquired and liabilities to be transferred to the Buyer, as specified in the BTA, have been classified as assets and liabilities held for sale in the Company’s consolidated balance sheets, subject to adjustments set forth in the BTA. See Note 2 “Discontinued Operations and Assets Held for Sale” for additional information. The consolidated statements of cash flows have not been adjusted to separately disclose cash flows related to discontinued operations, but the material items in the operating and investing activities of cash flows relating to discontinued operations are disclosed in Note 2. Unless otherwise stated, information in these notes to consolidated financial statements relates to the Company’s continuing operations and excludes the discontinued operations. There have been no material changes to the Company’s significant accounting policies as of and for the three months ended March 31, 2020, except for those related to discontinued operations and assets held for sale as described below, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K |
Discontinued Operations and Assets Held for Sale | Discontinued Operations and Assets Held for Sale The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results when the business is sold and classified as held for sale, in accordance with the criteria of Accounting Standard Codification (“ASC”) 205, “Presentation of Financial Statements” (“ASC 205”) and ASC 360, “Property, Plant and Equipment” (“ASC 360”). Assets and liabilities of a business classified as held for sale are recorded at the lower of its carrying amount or estimated fair value less costs to sell. If the carrying amount of the business exceeds its estimated fair value less costs to sell, a loss is recognized. Assets and liabilities related to discontinued operations classified as held for sale are segregated in the current and prior balance sheets in the period in which the business is classified as held for sale. The results of discontinued operations are reported in “Income (loss) from discontinued operations, net of tax” in the accompanying consolidated statements of operations for the current and prior periods commencing in the period in which the business meets the criteria. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12, 2019-12”). 2019-12 2019-12 2019-12 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13, 2016-13”). 2016-13 No. 2019-04, 2019-04”), No. 2019-11, 2019-11”) 2016-13. No. 2020-02, 2020-02”), 2019-04, 2019-11 2020-02 In August 2018, the FASB issued Accounting Standards Update No. 2018-13 2018-13”). 2018-13 |
Discontinued Operations and A_2
Discontinued Operations and Assets Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations and Assets Held for Sale [Abstract] | |
Schedule Of Results From Discontinued Operations | The following table summarizes the results from discontinued operations, net of tax, for the three months ended March 31, 2020 and 2019. Three Months Ended March 31, March 31, (In thousands of US dollars) Revenues: Net sales – Foundry Services Group $ 86,279 $ 57,116 Net sales – transitional Fab 3 foundry services (9,737 ) (7,003 ) Total revenues 76,542 50,113 Cost of sales: Cost of sales – Foundry Services Group 65,583 53,438 Cost of sales – transitional Fab 3 foundry services (9,737 ) (7,003 ) Total cost of sales 55,846 46,435 Gross profit 20,696 3,678 Operating expenses: Selling, general and administrative expenses 5,644 6,034 Research and development expenses 7,403 7,974 Restructuring and other charges 2,115 2,894 Total operating expenses 15,162 16,902 Operating income (loss) from discontinued operations 5,534 (13,224 ) Foreign currency gain, net 2,097 613 Other income 107 86 Income (loss) from discontinued operations before income tax expense 7,738 (12,525 ) Income tax expense 409 45 Income (loss) from discontinued operations, net of tax $ 7,329 $ (12,570 ) |
Schedule Of Results From Discontinued Operations Balance Sheet | The following table provides a reconciliation of the aggregate carrying amounts of major classes of assets and liabilities relating to the Foundry Services Group business and Fab 4, which are included in assets and liabilities held for sale in the accompanying consolidated balance sheets for each of the periods presented: March 31, December 31, (In thousands of US dollars) Assets Current assets Accounts receivable, net $ 40,735 $ 48,194 Unbilled accounts receivable, net 9,374 16,463 Inventories, net 34,968 31,863 Other current assets 2,891 3,301 Other assets of the disposal group classified as held for sale 1,461 — Total current assets held for sale $ 89,429 $ 99,821 Property, plant and equipment, net 99,604 109,506 Intangible assets, net 1,202 1,245 Other non-current 11,384 12,683 Total assets held for sale $ 201,619 $ 223,255 Liabilities Current liabilities Accounts payable $ 20,462 $ 20,503 Other current liabilities 14,773 16,537 Total current liabilities held for sale $ 35,235 $ 37,040 Accrued severance benefits, net 93,121 95,547 Other non-current 13,657 15,334 Total liabilities held for sale $ 142,013 $ 147,921 |
Schedule Of Results From Discontinued Operations Alternative Cash Flow Information | The following table provides supplemental cash flows information related to discontinued operations: Three Months Ended March 31, March 31, (In thousands of US dollars) Significant non - Depreciation and amortization $ 5,365 $ 5,752 Provision for severance benefits 3,052 1,803 Stock-based compensation 123 106 Investing activities: Capital expenditures $ (1,479 ) $ (4,469 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories as of March 31, 2020 and December 31, 2019 consist of the following (in thousands): March 31, December 31, Finished goods $ 8,448 $ 10,087 Semi-finished goods and work-in-process 25,342 28,815 Raw materials 7,916 8,449 Materials in-transit 231 — Less: inventory reserve (4,807 ) (5,947 ) Inventories, net $ 37,130 $ 41,404 |
Changes in Inventory Reserve | Changes in inventory reserve for the three months ended March 31, 2020 and 2019 are as follows (in thousands): Three Months Ended March 31, March 31, Beginning balance $ (5,947 ) $ (4,845 ) Change in reserve Inventory reserve charged to costs of sales (1,275 ) (5,073 ) Sale of previously reserved inventory 906 476 (369 ) (4,597 ) Write off 499 592 Translation adjustments 316 160 Reclassified to assets held for sale 694 — Ending balance $ (4,807 ) $ (8,690 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment as of March 31, 2020 and December 31, 2019 are comprised of the following (in thousands): March 31, December 31, Buildings and related structures $ 21,309 $ 22,502 Machinery and equipment 85,213 89,453 Finance lease right-of-use 306 323 Others 20,863 22,242 127,691 134,520 Less: accumulated depreciation (73,987 ) (75,704 ) Land 13,497 14,252 Property, plant and equipment, net $ 67,201 $ 73,068 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets as of March 31, 2020 and December 31, 2019 are comprised of the following (in thousands): March 31, 2020 Gross Accumulated Net Technology $ 6,226 $ (6,226 ) $ — Customer relationships 9,641 (9,641 ) — Intellectual property assets 8,314 (5,731 ) 2,583 Intangible assets, net $ 24,181 $ (21,598 ) $ 2,583 December 31, 2019 Gross Accumulated Net Technology $ 6,575 $ (6,575 ) $ — Customer relationships 10,180 (10,180 ) — Intellectual property assets 8,637 (5,868 ) 2,769 Intangible assets, net $ 25,392 $ (22,623 ) $ 2,769 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related To Leases [Table Text Block] | Supplemental balance sheets information related to leases as of March 31, 2020 and December 31, 2019 are as follows (in thousands): Leases Classification March 31, 2020 December 31, 2019 Assets Operating lease Operating lease right-of-use $ 1,413 $ 1,876 Finance lease Property, plant and equipment, net 229 258 Total lease assets $ 1,642 $ 2,134 Liabilities Current Operating Operating lease liabilities $ 1,301 $ 1,625 Finance Other current liabilities 58 60 Non-current Operating Other non-current 112 251 Finance Other non-current 182 208 Total lease liabilities $ 1,653 $ 2,144 |
Lease, Cost [Table Text Block] | The components of lease cost included in the Company’s consolidated statements of operations, are as follows (in thousands): Three Months March 31, March 31, Operating lease cost $ 468 $ 525 Finance lease cost Amortization of right-of-use 16 17 Interest on lease liabilities 5 6 Total lease cost $ 489 $ 548 |
Other Lease Information [Table Text Block] | The following table presents the weighted average remaining lease term and discount rate: March 31, 2020 December 31, 2019 Weighted average remaining lease term Operating leases 1.0 years 1.1 years Finance leases 3.8 years 4.0 years Weighted average discount rate Operating leases 7.35 % 7.19 % Finance leases 7.75 % 7.75 % Other lease information is as follows (in thousands): Three Months March 31, March 31, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 468 $ 525 Operating cash flows from finance leases 5 6 Financing cash flows from finance leases 14 14 |
Schedule Of Future Lease Payments [Table Text Block] | The aggregate future lease payments for operating and finance leases as of March 31, 2020 are as follows (in thousands): Operating Finance 2020 $ 1,192 $ 55 2021 254 74 2022 21 74 2023 1 74 Thereafter — — Total future lease payments 1,468 277 Less: Imputed interest (55 ) (37 ) Present value of future payments $ 1,413 $ 240 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses as of March 31, 2020 and December 31, 2019 are comprised of the following (in thousands): March 31, December 31, Payroll, benefits and related taxes, excluding severance benefits $ 8,992 $ 8,493 Withholding tax attributable to intercompany interest income 23,771 23,371 Interest on senior notes 3,444 8,205 Outside service fees 1,224 1,996 Others 4,058 2,734 Accrued expenses $ 41,489 $ 44,799 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Details of Derivative Contracts | Details of derivative contracts as of March 31, 2020 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement August 13, 2019 Zero cost collar $ 30,000 April 2020 to June 2020 September 27, 2019 Zero cost collar $ 21,000 April 2020 to June 2020 December 4, 2019 Zero cost collar $ 30,000 July 2020 to December 2020 January 31, 2020 Zero cost collar $ 30,000 July 2020 to December 2020 February 3, 2020 Zero cost collar $ 18,000 July 2020 to December 2020 February 21, 2020 Zero cost collar $ 30,000 July 2020 to December 2020 Details of derivative contracts as of December 31, 2019 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement August 13, 2019 Zero cost collar $ 60,000 January 2020 to June 2020 September 27, 2019 Zero cost collar $ 42,000 January 2020 to June 2020 December 4, 2019 Zero cost collar $ 30,000 July 2020 to December 2020 |
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 contracts recorded as assets and liabilities as of March 31, 2020 and December 31, 2019 are as follows (in thousands): Derivatives designated as hedging instruments: March 31, December 31, Asset Derivatives: Zero cost collars Other current assets $ — $ 1,456 Liability Derivatives: Zero cost collars Other current liabilities $ 3,500 $ — |
Offsetting of Derivative Liabilities | Offsetting of derivative liabilities as of March 31, 2020 is as follows (in thousands): As of March 31, 2020 Gross amounts of Gross amounts Net amounts of Gross amounts not offset Net amount Financial Cash collateral Liability Derivatives: Zero cost collars $ 3,500 $ — $ 3,500 $ — $ (2,720 ) $ 780 |
Offsetting of Derivative Assets | Offsetting of derivative assets as of December 31, 2019 is as follows (in thousands): As of December 31, 2019 Gross amounts of Gross amounts Net amounts of Gross amounts not offset Net amount Financial Cash collateral Asset Derivatives: Zero cost collars $ 1,456 $ — $ 1,456 $ — $ 1,070 $ 2,526 |
Impact of Derivative Instruments on Consolidated Statement of Operations | The following table summarizes the impact of derivative instruments on the consolidated statements of operations for the three months ended March 31, 2020 and 2019 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location/Amount of Loss Into Statement of Operations Location/Amount of Gain (Loss) Three Months Ended Three Months Ended Three Months Ended 2020 2019 2020 2019 2020 2019 Zero cost collars $ (5,004 ) $ 34 Net sales $ (58 ) $ — Other income, net $ 117 $ — Forwards $ — $ (533 ) Net sales $ — $ (89 ) Other income, net $ — $ (56 ) Forwards—excluded time value Net sales $ — $ (98 ) $ (5,004 ) $ (499 ) $ (58 ) $ (187 ) $ 117 $ (56 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | As of March 31, 2020, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Quoted Prices in Significant Significant Liabilities: Derivative liabilities (other current liabilities) $ 3,500 $ 3,500 — $ 3,500 — As of December 31, 2019, the following table represents the Company’s assets measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Quoted Prices in Significant Significant Assets: Derivative assets (other current assets) $ 1,456 $ 1,456 — $ 1,456 — |
Schedule of Fair Value of Long-term Borrowings | Fair Value of Borrowings March 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (In thousands of US dollars) Borrowings: 5.0% Exchangeable Senior Notes due March 2021 (Level 2) $ 82,328 $ 94,479 $ 81,959 $ 116,078 6.625% Senior Notes due July 2021 (Level 2) $ 223,012 $ 210,795 $ 222,784 $ 224,250 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Components of Long-term Borrowings | Borrowings as of March 31, 2020 and December 31, 2019 are as follows (in thousands): March 31, December 31, 5.0% Exchangeable Senior Notes due March 2021 $ 83,740 $ 83,740 6.625% Senior Notes due July 2021 224,250 224,250 Less: unamortized discount and debt issuance costs (2,650 ) (3,247 ) Total borrowings, net 305,340 304,743 Less: current portion of long-term borrowings, net (82,328 ) — Long-term borrowings, net $ 223,012 $ 304,743 |
Accrued Severance Benefits (Tab
Accrued Severance Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Changes in Accrued Severance Benefits | Changes in accrued severance benefits are as follows (in thousands): Three Months Ended March 31, March 31, Beginning balance $ 53,344 $ 55,691 Provisions 2,019 1,314 Severance payments (1,952 ) (1,496 ) Translation adjustments (2,801 ) (956 ) 50,610 54,553 Less: Cumulative contributions to severance insurance deposit accounts (1,557 ) (869 ) The National Pension Fund (75 ) (87 ) Group severance insurance plan (213 ) (243 ) Accrued severance benefits, net $ 48,765 $ 53,354 |
Future Benefits Payments to Employees | The Company is liable to pay the following future benefits to its non-executive Severance benefit Remainder of 2020 $ 369 2021 626 2022 823 2023 580 2024 788 2025 2,201 2026 – 2030 19,439 |
Geographic and Other Informat_2
Geographic and Other Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | The following sets forth information relating to the single continuing operating segment (in thousands): Three Months Ended March 31, March 31, Revenues Standard products business Display Solutions $ 77,593 $ 58,230 Power Solutions 33,143 42,034 Total standard products business $ 110,736 $ 100,264 Transitional Fab 3 foundry services 9,737 7,003 Total revenues $ 120,473 $ 107,267 Three Months Ended March 31, March 31, Gross Profit Standard products business $ 29,130 $ 19,023 Transitional Fab 3 foundry services — — Total gross profit $ 29,130 $ 19,023 |
Net Sales by Region, Based on Location of Products are Billed | The following is a summary of net sales – standard products business (which does not include the Transitional Fab 3 Foundry Services) by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended March 31, March 31, Korea $ 30,817 $ 34,646 Asia Pacific (other than Korea) 77,542 63,747 United States 709 462 Europe 971 1,133 Others 697 276 Total $ 110,736 $ 100,264 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive income (loss) consists of the following as of March 31, 2020 and December 31, 2019, respectively (in thousands): March 31, December 31, Foreign currency translation adjustments $ 18,046 $ (4,205 ) Derivative adjustments (3,401 ) 1,545 Total $ 14,645 $ (2,660 ) |
Changes in Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2020 and 2019 are as follows (in thousands): Three Months Ended March 31, 2020 Foreign Derivative Total Beginning balance $ (4,205 ) $ 1,545 $ (2,660 ) Other comprehensive income (loss) before reclassifications 22,251 (5,004 ) 17,247 Amounts reclassified from accumulated other comprehensive loss — 58 58 Net current-period other comprehensive income (loss) 22,251 (4,946 ) 17,305 Ending balance $ 18,046 $ (3,401 ) $ 14,645 Three Months Ended March 31, 2019 Foreign Derivative Total Beginning balance $ (20,061 ) $ (49 ) $ (20,110 ) Other comprehensive income (loss) before reclassifications 7,304 (499 ) 6,805 Amounts reclassified from accumulated other comprehensive loss — 187 187 Net current-period other comprehensive income (loss) 7,304 (312 ) 6,992 Ending balance $ (12,757 ) $ (361 ) $ (13,118 ) |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Loss Per Common Share | The following table illustrates the computation of basic and diluted loss per common share for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, March 31, (In thousands of US dollars, except share data) Basic and diluted loss per share Loss from continuing operations $ (31,078 ) $ (21,555 ) Income (loss) from discontinued operations, net of tax 7,329 (12,570 ) Net loss $ (23,749 ) $ (34,125 ) Weighted average number of shares – basic and diluted 34,893,157 34,194,878 Basic and diluted earnings (loss) per common share Continuing operations $ (0.89 ) $ (0.63 ) Discontinued operations 0.21 (0.37 ) Total $ (0.68 ) $ (1.00 ) |
Schedule of Antidilutive Securities Excluded from the Computation of Loss Per Common Share | The following outstanding instruments were excluded from the computation of diluted loss per share, as they have an anti-dilutive effect on the calculation: Three Months Ended March 31, March 31, Options 2,163,845 2,632,300 Restricted Stock Units 729,939 508,943 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) $ in Millions | Mar. 30, 2020USD ($) | Mar. 31, 2020Facilities |
Foundry Services Group And Fab Four [Member] | Manufacturing Facility [Member] | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Number of facilities | Facilities | 2 | |
Foundry Services Group [Member] | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Proceeds from Sale of Business | $ | $ 344.7 |
Discontinued Operations and A_3
Discontinued Operations and Assets Held for Sale - Schedule Of Results From Discontinued Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Expenses [Abstract] | ||
Selling, general and administrative expenses | $ 12,102 | $ 12,036 |
Research and development expenses | 10,509 | 12,044 |
Total operating expenses | 23,165 | 24,080 |
Foreign currency gain, net | (30,971) | (10,610) |
Income (loss) from discontinued operations, net of tax | 7,329 | (12,570) |
Discontinued Operations [Member] | ||
Revenues: | ||
Total revenues | 76,542 | 50,113 |
Cost of sales: | ||
Total cost of sales | 55,846 | 46,435 |
Gross profit | 20,696 | 3,678 |
Operating Expenses [Abstract] | ||
Selling, general and administrative expenses | 5,644 | 6,034 |
Research and development expenses | 7,403 | 7,974 |
Restructuring and other charges | 2,115 | 2,894 |
Total operating expenses | 15,162 | 16,902 |
Operating income (loss) from discontinued operations | 5,534 | (13,224) |
Foreign currency gain, net | 2,097 | 613 |
Other income | 107 | 86 |
Income (loss) from discontinued operations before income tax expense | 7,738 | (12,525) |
Income tax expense | 409 | 45 |
Income (loss) from discontinued operations, net of tax | 7,329 | (12,570) |
Foundry Services Group [Member] | Discontinued Operations [Member] | ||
Revenues: | ||
Total revenues | 86,279 | 57,116 |
Cost of sales: | ||
Total cost of sales | 65,583 | 53,438 |
Fab Three Foundry Services [Member] | Discontinued Operations [Member] | ||
Revenues: | ||
Total revenues | (9,737) | (7,003) |
Cost of sales: | ||
Total cost of sales | $ (9,737) | $ (7,003) |
Discontinued Operations and A_4
Discontinued Operations and Assets Held for Sale - Additional Information (Detail) - Foundry Services Group And Fab Four [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule Of Disposal Group Not Discontinued Operation Income Statement [Line Items] | ||
Income (loss) from discontinued operations before income tax expense | $ 2,115 | $ (743) |
Income tax expense | $ 2,151 |
Discontinued Operations and A_5
Discontinued Operations and Assets Held for Sale - Schedule Of Results From Discontinued Operations Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Total current assets held for sale | $ 201,619 | $ 99,821 |
Current liabilities | ||
Total current liabilities held for sale | 142,013 | 37,040 |
Foundry Services Group And Fab Three Foundry Services [Member] | ||
Current assets | ||
Accounts receivable, net | 40,735 | 48,194 |
Unbilled accounts receivable, net | 9,374 | 16,463 |
Inventories, net | 34,968 | 31,863 |
Other current assets | 2,891 | 3,301 |
Other assets of the disposal group classified as held for sale | 1,461 | |
Total current assets held for sale | 89,429 | 99,821 |
Property, plant and equipment, net | 99,604 | 109,506 |
Intangible assets, net | 1,202 | 1,245 |
Other non-current assets | 11,384 | 12,683 |
Total assets held for sale | 201,619 | 223,255 |
Current liabilities | ||
Accounts payable | 20,462 | 20,503 |
Other current liabilities | 14,773 | 16,537 |
Total current liabilities held for sale | 35,235 | 37,040 |
Accrued severance benefits, net | 93,121 | 95,547 |
Other non-current liabilities | 13,657 | 15,334 |
Total liabilities held for sale | $ 142,013 | $ 147,921 |
Discontinued Operations and A_6
Discontinued Operations and Assets Held for Sale - Schedule Of Results From Discontinued Operations Alternative Cash Flow Information (Detail) - Foundry Services Group And Fab Three Foundry Services [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Significant non-cash operating activities: | ||
Depreciation and amortization | $ 5,365 | $ 5,752 |
Provision for severance benefits | 3,052 | 1,803 |
Stock-based compensation | 123 | 106 |
Investing activities: | ||
Capital expenditures | $ (1,479) | $ (4,469) |
Sales of Accounts Receivable _2
Sales of Accounts Receivable and Receivable Discount Program - Additional Information (Detail) - Trade Accounts Receivable [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Proceeds from sale of accounts receivable | $ 7,989 |
Selling, General and Administrative Expenses [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Pre-tax losses on accounts receivable | $ 25 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||||
Finished goods | $ 8,448 | $ 10,087 | ||
Semi-finished goods and work-in-process | 25,342 | 28,815 | ||
Raw materials | 7,916 | 8,449 | ||
Materials in-transit | 231 | |||
Less: inventory reserve | (4,807) | (5,947) | $ (8,690) | $ (4,845) |
Inventories, net | $ 37,130 | $ 41,404 |
Inventories - Changes in Invent
Inventories - Changes in Inventory Reserve (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | ||
Beginning balance | $ (5,947) | $ (4,845) |
Change in reserve | ||
Inventory reserve charged to costs of sales | (1,275) | (5,073) |
Sale of previously reserved inventory | 906 | 476 |
Change in reserve | (369) | (4,597) |
Write off | 499 | 592 |
Translation adjustments | 316 | 160 |
Reclassified to assets held for sale | 694 | |
Ending balance | $ (4,807) | $ (8,690) |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expenses | $ 2,409 | $ 2,412 |
Payment of Termination Fee | 34,470 | |
Escrow Deposit | $ 34,470 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 127,691 | $ 134,520 |
Less: accumulated depreciation | (73,987) | (75,704) |
Property, plant and equipment, net | 67,201 | 73,068 |
Buildings and Related Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 21,309 | 22,502 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 85,213 | 89,453 |
Finance Lease Right Of Use Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 306 | 323 |
Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 20,863 | 22,242 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 13,497 | $ 14,252 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense for intangible assets | $ 161 | $ 139 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | $ 24,181 | $ 25,392 |
Accumulated amortization | (21,598) | (22,623) |
Intangible asset, Net amount | 2,583 | 2,769 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 6,226 | 6,575 |
Accumulated amortization | (6,226) | (6,575) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 9,641 | 10,180 |
Accumulated amortization | (9,641) | (10,180) |
Intellectual Property Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 8,314 | 8,637 |
Accumulated amortization | (5,731) | (5,868) |
Intangible asset, Net amount | $ 2,583 | $ 2,769 |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Maximum [Member] | |
Lease Agreements Remaining Term of Lease | 4 years |
Minimum [Member] | |
Lease Agreements Remaining Term of Lease | 1 year |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease | $ 1,413 | $ 1,876 |
Total leased assets | 1,642 | 2,134 |
Current | ||
Operating | 1,301 | 1,625 |
Non-current | ||
Total lease liabilities | 1,653 | 2,144 |
Operating Lease Right Of Use Assets [Member] | ||
Assets | ||
Operating lease | 1,413 | 1,876 |
Property, Plant and Equipment, Net [Member] | ||
Assets | ||
Finance lease | 229 | 258 |
Current Operating Lease Liabilities [Member] | ||
Current | ||
Operating | 1,301 | 1,625 |
Other Current Liabilities [Member] | ||
Current | ||
Finance | 58 | 60 |
Non Current Operating Lease Liabilities [Member] | ||
Non-current | ||
Operating | 112 | 251 |
Other Noncurrent Liabilities [Member] | ||
Non-current | ||
Finance | $ 182 | $ 208 |
Leases - Components of lease co
Leases - Components of lease cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 468 | $ 525 |
Finance lease cost [Abstract] | ||
Amortization of right-of-use assets | 16 | 17 |
Interest on lease liabilities | 5 | 6 |
Total lease cost | $ 489 | $ 548 |
Leases - Other lease informatio
Leases - Other lease information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 468 | $ 525 | |
Operating cash flows from finance leases | 5 | 6 | |
Financing cash flows from finance leases | $ 14 | $ 14 | |
Weighted average remaining lease term | |||
Operating leases | 1 year | 1 year 1 month 6 days | |
Finance leases | 3 years 9 months 18 days | 4 years | |
Weighted average discount rate | |||
Operating leases | 7.35% | 7.19% | |
Finance leases | 7.75% | 7.75% |
Leases - Aggregate future lease
Leases - Aggregate future lease payment (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Operating Leases, 2020 | $ 1,192 |
Operating Leases, 2021 | 254 |
Operating Leases, 2022 | 21 |
Operating Leases, 2023 | 1 |
Operating Leases, Thereafter | 0 |
Operating Leases, Total future lease payments | 1,468 |
Less: Present value adjustment | (55) |
Present value of future payments | 1,413 |
Finance Leases [Abstract] | |
Finance Leases, 2020 | 55 |
Finance Leases, 2021 | 74 |
Finance Leases, 2022 | 74 |
Finance Leases, 2023 | 74 |
Finance Leases, Thereafter | 0 |
Finance Leases, Total future lease payments | 277 |
Less: Present value adjustment | (37) |
Present value of future payments | $ 240 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Payroll, benefits and related taxes, excluding severance benefits | $ 8,992 | $ 8,493 |
Withholding tax attributable to intercompany interest income | 23,771 | 23,371 |
Interest on senior notes | 3,444 | 8,205 |
Outside service fees | 1,224 | 1,996 |
Others | 4,058 | 2,734 |
Accrued expenses | $ 41,489 | $ 44,799 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
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 | $ 3,401 | |
Zero Cost Collar and Forward Contracts [Member] | Nomura Financial Investment (Korea) Co., Ltd. [Member] | ||
Derivative [Line Items] | ||
Deposit with counterparty | 10,550 | $ 8,750 |
Threshold amount of cash collateral | 500 | |
Cash collateral for credit exposure in derivatives | 2,720 | $ 1,070 |
Termination provisions for cash and cash equivalents | $ 30,000 | |
Debt Instrument, Credit Rating | B-/B3 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Details of Derivative Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Zero Cost Collar One [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Aug. 13, 2019 | Aug. 13, 2019 |
Type of derivative | Zero cost collar | Zero cost collar |
Total notional amount | $ 30,000 | $ 60,000 |
Month of settlement, start | 2020-04 | 2020-01 |
Month of settlement, end | 2020-06 | 2020-06 |
Zero Cost Collar Two [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Sep. 27, 2019 | Sep. 27, 2019 |
Type of derivative | Zero cost collar | Zero cost collar |
Total notional amount | $ 21,000 | $ 42,000 |
Month of settlement, start | 2020-04 | 2020-01 |
Month of settlement, end | 2020-06 | 2020-06 |
Zero Cost Collar Three [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Dec. 4, 2019 | Dec. 4, 2019 |
Type of derivative | Zero cost collar | Zero cost collar |
Total notional amount | $ 30,000 | $ 30,000 |
Month of settlement, start | 2020-07 | 2020-07 |
Month of settlement, end | 2020-12 | 2020-12 |
Zero Cost Collar Four [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Jan. 31, 2020 | |
Type of derivative | Zero cost collar | |
Total notional amount | $ 30,000 | |
Month of settlement, start | 2020-07 | |
Month of settlement, end | 2020-12 | |
Zero Cost Collar Five [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Feb. 3, 2020 | |
Type of derivative | Zero cost collar | |
Total notional amount | $ 18,000 | |
Month of settlement, start | 2020-07 | |
Month of settlement, end | 2020-12 | |
Zero Cost Collar Six [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Feb. 21, 2020 | |
Total notional amount | $ 30,000 | |
Month of settlement, start | 2020-07 | |
Month of settlement, end | 2020-12 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities (Detail) - Zero Cost Collars [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Asset Derivatives: | ||
Other current assets | $ 3,500 | |
Liability Derivatives: | ||
Other current liabilities | $ 1,456 | |
Other Current Assets [Member] | ||
Asset Derivatives: | ||
Other current assets | $ 1,456 | |
Other Current Liabilities [Member] | ||
Liability Derivatives: | ||
Other current liabilities | $ 3,500 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Offsetting of Derivative Assets (Detail) - Zero Cost Collars [Member] $ in Thousands | Mar. 31, 2020USD ($) |
Derivative [Line Items] | |
Asset Derivatives, Gross amounts of recognized assets | $ 3,500 |
Asset Derivatives, Net amounts of assets presented in the balance sheets | 3,500 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Cash collateral pledged | (2,720) |
Asset Derivatives, Net amount | $ 780 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Offsetting of Derivative Liabilities (Detail) - Zero Cost Collars [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Derivative [Line Items] | |
Liability Derivatives, Gross amounts of recognized liabilities | $ 1,456 |
Liability Derivatives, Net amounts of liabilities presented in the balance sheets | 1,456 |
Liability Derivatives, Gross amounts not offset in the balance sheets, Cash collateral pledged | 1,070 |
Liability Derivatives, Net amount after master netting | $ 2,526 |
Derivative Financial Instrume_8
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, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Amount of Loss Recognized in AOCI on Derivatives (Effective Portion) | $ (5,004) | $ (499) |
Other income, net [Member] | ||
Derivative [Line Items] | ||
Amount of Loss Recognized in Statement of Operations on Derivatives (Ineffective Portion) | 117 | (56) |
Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | (58) | (187) |
Zero Cost Collars [Member] | ||
Derivative [Line Items] | ||
Amount of Loss Recognized in AOCI on Derivatives (Effective Portion) | (5,004) | 34 |
Zero Cost Collars [Member] | Other income, net [Member] | ||
Derivative [Line Items] | ||
Amount of Loss Recognized in Statement of Operations on Derivatives (Ineffective Portion) | 117 | |
Zero Cost Collars [Member] | Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | $ (58) | |
Forward [Member] | ||
Derivative [Line Items] | ||
Amount of Loss Recognized in AOCI on Derivatives (Effective Portion) | (533) | |
Forward [Member] | Other income, net [Member] | ||
Derivative [Line Items] | ||
Amount of Loss Recognized in Statement of Operations on Derivatives (Ineffective Portion) | (56) | |
Forward [Member] | Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | (89) | |
Forwards - excluded time value [Member] | Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | $ (98) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Jan. 17, 2017 | Jul. 18, 2013 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | Dec. 31, 2018 |
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% | |||||
Aggregate principal amount | $ 225,000,000 | |||||||
Debt issuance costs paid | 5,039,000 | |||||||
Original debt issue discount | $ 1,125,000 | |||||||
Principal Repurchase Amount Of Exchangeable Notes | $ 250,000 | $ 500,000 | ||||||
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% | |||||
Aggregate principal amount | $ 86,250,000 | |||||||
Debt issuance costs paid | $ 5,902,000 | $ 5,902,000 | ||||||
Principal Repurchase Amount Of Exchangeable Notes | $ 920,000 | $ 1,590,000 | ||||||
Other Asset Class [Member] | Fair Value, Measurements, Nonrecurring [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 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Value [Member] | Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | $ 1,456 | |
Carrying Value [Member] | Other Current Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 3,500 | |
Estimate of Fair Value Measurement [Member] | Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | 1,456 | |
Estimate of Fair Value Measurement [Member] | Other Current Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 3,500 | |
Significant Other Observable Inputs (Level 2) [Member] | Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | $ 1,456 | |
Significant Other Observable Inputs (Level 2) [Member] | Other Current Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 3,500 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Long-term Borrowings (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Long-term Borrowings: | ||
Carrying amount of senior notes | $ 223,012 | $ 304,743 |
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 | 82,328 | 81,959 |
Estimated fair value of senior notes | 94,479 | 116,078 |
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 | 223,012 | 222,784 |
Estimated fair value of senior notes | $ 210,795 | $ 224,250 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Jan. 17, 2017 | Jan. 17, 2017 | Jul. 18, 2013 | Feb. 28, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2019 |
Debt Instrument [Line Items] | ||||||||||
Repurchase of common stock, shares | 1,795,444 | |||||||||
Repurchase of common stock | $ 616,000 | $ 2,585,000 | $ 11,401,000 | |||||||
Loss on early extinguishment of long-term borrowings, net | (42,000) | |||||||||
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. 1, 2021 | Jul. 1, 2021 | |||||||
Aggregate principal amount of senior notes pricing | 99.50% | |||||||||
Debt issuance costs paid | $ 5,039,000 | |||||||||
Interest expense related to the Exchangeable Notes | $ 3,943,000 | 3,930,000 | ||||||||
Original debt issue discount | $ 1,125,000 | |||||||||
Debt Instrument, Repurchased Face Amount | $ 500,000 | $ 250,000 | ||||||||
Loss on early extinguishment of long-term borrowings, net | $ 21,000 | 28,000 | ||||||||
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 | $ 86,250,000 | ||||||||
Interest rate | 5.00% | 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 | $ 1,000,000 | |||||||||
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 | $ 1,416,000 | $ 1,408,000 | ||||||||
Debt Instrument, Repurchased Face Amount | $ 920,000 | 1,590,000 | ||||||||
Loss on early extinguishment of long-term borrowings, net | $ 63,000 | $ 234,000 |
Borrowings - Components of Long
Borrowings - Components of Long-term Borrowings (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Less: unamortized discount and debt issuance costs | $ (2,650) | $ (3,247) |
Total borrowings, net | 305,340 | 304,743 |
Less: current portion of long-term borrowings, net | (82,328) | |
Long-term borrowings, net | 223,012 | 304,743 |
Exchangeable Senior Notes [Member] | 5.0% Exchangeable Senior Notes due March 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 83,740 | 83,740 |
Senior Notes [Member] | 6.625% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 224,250 | $ 224,250 |
Borrowings - Components of Lo_2
Borrowings - Components of Long-term Borrowings (Parenthetical) (Detail) | Jan. 17, 2017 | Jul. 18, 2013 | Mar. 31, 2020 | Dec. 31, 2019 |
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 July 2021 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.625% | 6.625% | 6.625% | |
Due date | Jul. 15, 2021 | Jul. 1, 2021 | Jul. 1, 2021 |
Accrued Severance Benefits - Ad
Accrued Severance Benefits - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |||
Beginning balance | $ 53,344 | $ 55,691 | |
Provisions | 2,019 | 1,314 | |
Severance payments | (1,952) | (1,496) | |
Translation adjustments | (2,801) | (956) | |
Ending balance | 50,610 | 54,553 | |
Less: Cumulative contributions to severance insurance deposit accounts | (1,557) | (869) | |
The National Pension Fund | (75) | (87) | |
Group severance insurance plan | (213) | (243) | |
Accrued severance benefits, net | $ 48,765 | $ 53,354 | $ 51,181 |
Accrued Severance Benefits - Fu
Accrued Severance Benefits - Future Benefits Payments to Employees (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |
Remainder of 2020 | $ 369 |
2021 | 626 |
2022 | 823 |
2023 | 580 |
2024 | 788 |
2025 | 2,201 |
2026 – 2030 | $ 19,439 |
Foreign Currency Loss, Net - Ad
Foreign Currency Loss, Net - Additional Information (Detail) $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Foreign Currency Transaction [Abstract] | ||
Exchange rates using first base rate | 1,222,600 | 1,157,800 |
Intercompany loan balances | $ 684,021 | $ 686,485 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Income tax expenses (benefits) | $ 1,303 | $ 796 |
Income tax expenses | $ (29,775) | $ (20,759) |
Korean Subsidiary [Member] | ||
Income Tax Contingency [Line Items] | ||
The net operating income carry forwards of the taxable income | 60.00% | 60.00% |
Geographic and Other Informat_3
Geographic and Other Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Ten Customers [Member] | Standard Products Group [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 90.00% | 88.00% |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer One [Member] | Standard Products Group [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 52.80% | 45.00% |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer Two [Member] | Standard Products Group [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 15.80% | 11.60% |
Geographic Concentration Risk [Member] | Net Sales [Member] | Asia Pacific Other Than Korea [Member] | Standard Products Group [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 95.30% | |
Geographic Concentration Risk [Member] | Net Sales [Member] | CHINA | Standard Products Group [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 94.10% | |
Geographic Concentration Risk [Member] | Property, Plant and Equipment [Member] | Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk, percentage | 95.00% |
Geographic and Other Informat_4
Geographic and Other Information - Schedule of Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 120,473 | $ 107,267 |
Total gross profit | 29,130 | 19,023 |
Standard Products Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 110,736 | 100,264 |
Total gross profit | 29,130 | 19,023 |
Fab Three Foundry Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 9,737 | 7,003 |
Total gross profit | ||
Operating Segments [Member] | Standard Products Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 110,736 | 100,264 |
Operating Segments [Member] | Standard Products Group [Member] | Display Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 77,593 | 58,230 |
Operating Segments [Member] | Standard Products Group [Member] | Power Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 33,143 | $ 42,034 |
Geographic and Other Informat_5
Geographic and Other Information - Net Sales by Region, Based on Location of Products are Billed (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | $ 120,473 | $ 107,267 |
Standard products business [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 110,736 | 100,264 |
Standard products business [Member] | Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 30,817 | 34,646 |
Standard products business [Member] | Asia Pacific (Other Than Korea) [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 77,542 | 63,747 |
Standard products business [Member] | United States. [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 709 | 462 |
Standard products business [Member] | Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | 971 | 1,133 |
Standard products business [Member] | Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenues | $ 697 | $ 276 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Income tax related to accumulated other comprehensive loss | $ 0 | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ 18,046 | $ (4,205) |
Derivative adjustments | (3,401) | 1,545 |
Total | $ 14,645 | $ (2,660) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance beginning | $ (14,981) | $ (17,310) |
Total other comprehensive income | 17,305 | 6,992 |
Balance ending | (21,156) | (46,311) |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance beginning | (4,205) | (20,061) |
Other comprehensive income (loss) before reclassifications | 22,251 | 7,304 |
Total other comprehensive income | 22,251 | 7,304 |
Balance ending | 18,046 | (12,757) |
Derivative Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance beginning | 1,545 | (49) |
Other comprehensive income (loss) before reclassifications | (5,004) | (499) |
Amounts reclassified from accumulated other comprehensive loss | 58 | 187 |
Total other comprehensive income | (4,946) | (312) |
Balance ending | (3,401) | (361) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance beginning | (2,660) | (20,110) |
Other comprehensive income (loss) before reclassifications | 17,247 | 6,805 |
Amounts reclassified from accumulated other comprehensive loss | 58 | 187 |
Total other comprehensive income | 17,305 | 6,992 |
Balance ending | $ 14,645 | $ (13,118) |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Conversion Of Exchangeable Notes | 10,144,155 | 10,182,542 |
Loss Per Share - Schedule of Co
Loss Per Share - Schedule of Computation of Basic and Diluted Loss Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic and diluted loss per share | ||
Loss from continuing operations | $ (31,078) | $ (21,555) |
Income (loss) from discontinued operations, net of tax | 7,329 | (12,570) |
Net loss | $ (23,749) | $ (34,125) |
Weighted average number of shares – basic and diluted | 34,893,157 | 34,194,878 |
Basic and diluted earnings (loss) per common share | ||
Continuing operations | $ (0.89) | $ (0.63) |
Discontinued operations | 0.21 | (0.37) |
Total | $ (0.68) | $ (1) |
Loss Per Share - Schedule of An
Loss Per Share - Schedule of Antidilutive Securities Excluded from the Computation of Loss Per Common Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding units and warrants excluded from computation of diluted loss per share/unit | 10,144,155 | 10,182,542 |
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 | 2,163,845 | 2,632,300 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding units and warrants excluded from computation of diluted loss per share/unit | 729,939 | 508,943 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Other Current Assets [Member] | ||
Loss Contingencies [Line Items] | ||
Prepayments to suppliers | $ 5,118 | $ 6,593 |