Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Trading Symbol | SIMO |
Entity Registrant Name | SILICON MOTION TECHNOLOGY CORP |
Entity Central Index Key | 1,329,394 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 139,521,260 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 180,519 | $ 194,211 |
Short-term investments | 4,681 | 703 |
Notes and accounts receivable, net | 58,979 | 28,854 |
Inventories | 47,110 | 44,076 |
Restricted assets-current | 19,328 | 19,322 |
Prepaid expenses and other current assets | 4,559 | 3,274 |
Total current assets | 315,176 | 290,440 |
Long-term investments | 133 | 133 |
Property and equipment, net | 50,469 | 35,537 |
Deferred income tax assets, net | 610 | 1,521 |
Goodwill | 68,660 | 35,467 |
Intangible assets, net | 7,330 | |
Other assets | 3,250 | 3,436 |
Total assets | 445,628 | 366,534 |
Current Liabilities | ||
Notes and accounts payable | 22,541 | 14,246 |
Income tax payable | 13,395 | 17,696 |
Current portion of long-term payable | 270 | 478 |
Accrued expenses and other current liabilities | 52,081 | 23,646 |
Total current liabilities | 88,287 | 56,066 |
Long-term payable, net of current portion | 78 | 284 |
Other long-term liabilities | 12,765 | 6,084 |
Total liabilities | $ 101,130 | $ 62,434 |
Commitments and Contingencies (Note 16) | ||
Shareholders' Equity | ||
Ordinary Shares at US$ 0.01 par value per share Authorized: 500,000 thousand shares Issued and outstanding: 135,622 thousand shares in 2014 and 139,521 thousand shares in 2015 | $ 1,395 | $ 1,356 |
Additional paid-in capital | 209,243 | 190,783 |
Accumulated other comprehensive income | 633 | 2,505 |
Retained Earnings | 133,227 | 109,456 |
Total shareholders' equity | 344,498 | 304,100 |
Total liabilities and shareholders' equity | $ 445,628 | $ 366,534 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Ordinary Shares, par value | $ 0.01 | $ 0.01 |
Ordinary Shares, Authorized | 500,000,000 | 500,000,000 |
Ordinary Shares, Issued | 139,521,000 | 135,622,000 |
Ordinary Shares, outstanding | 139,521,000 | 135,622,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 361,297 | $ 289,323 | $ 225,308 |
COST OF SALES | 176,765 | 139,625 | 118,698 |
GROSS PROFIT | 184,532 | 149,698 | 106,610 |
OPERATING EXPENSES | |||
Research and development | 71,161 | 60,949 | 46,460 |
Sales and marketing | 20,173 | 16,324 | 13,597 |
General and administrative | 15,714 | 13,355 | 11,250 |
Amortization of intangible assets | 1,051 | 0 | 0 |
Total operating expenses | 108,099 | 90,628 | 71,307 |
OPERATING INCOME | 76,433 | 59,070 | 35,303 |
NON-OPERATING INCOME (EXPENSES) | |||
Gain from disposal of short-term investments | 3 | 4 | 122 |
Interest income | 2,025 | 2,215 | 1,845 |
Foreign exchange gain (loss), net | 76 | (606) | (25) |
Interest expense | (47) | (114) | (110) |
Other income, net | 10 | (1) | 13 |
Total non-operating income | 2,067 | 1,498 | 1,845 |
INCOME BEFORE INCOME TAX | 78,500 | 60,568 | 37,148 |
INCOME TAX EXPENSE | 18,249 | 16,101 | 9,772 |
NET INCOME | $ 60,251 | $ 44,467 | $ 27,376 |
EARNINGS PER ORDINARY SHARE: | |||
Basic | $ 0.44 | $ 0.33 | $ 0.21 |
Diluted | $ 0.43 | $ 0.33 | $ 0.20 |
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING | |||
Basic (Thousands) | 138,100 | 134,604 | 132,259 |
Diluted (Thousands) | 139,634 | 136,787 | 134,567 |
EARNINGS PER ADS (one ADS equals four ordinary shares): | |||
Basic | $ 1.75 | $ 1.32 | $ 0.83 |
Diluted | $ 1.73 | $ 1.30 | $ 0.81 |
WEIGHTED AVERAGE ADS OUTSTANDING | |||
Basic (Thousands) | 34,525 | 33,651 | 33,065 |
Diluted (Thousands) | 34,909 | 34,197 | 33,642 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 60,251 | $ 44,467 | $ 27,376 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX EFFECT OF NIL | |||
Change in net foreign currency translation adjustments | (1,868) | (1,202) | 633 |
Change in deferred pension gain (loss) | (4) | (388) | (203) |
OTHER COMPREHENSIVE INCOME (LOSS) | (1,872) | (1,590) | 430 |
TOTAL COMPREHENSIVE INCOME | $ 58,379 | $ 42,877 | $ 27,806 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (accumulated deficit) | Treasury Stock |
BEGINNING BALANCE (in shares) at Dec. 31, 2012 | 130,040 | |||||
BEGINNING BALANCE at Dec. 31, 2012 | $ 262,266 | $ 1,300 | $ 173,852 | $ 3,665 | $ 83,449 | |
Net income | 27,376 | 27,376 | ||||
Other comprehensive income | 430 | 430 | ||||
Stock-based compensation expenses | 10,262 | 10,262 | ||||
Issuance of ordinary shares upon exercise of employee stock options and restricted stock units, shares | 5,154 | |||||
Issuance of ordinary shares upon exercise of employee stock options and restricted stock units | 346 | $ 52 | 294 | |||
Share repurchase | (10,018) | $ (10,018) | ||||
Dividends declared (US$0.15 per ordinary share) | (19,965) | (19,965) | ||||
Treasury stock retired, shares | (3,564) | |||||
Treasury stock retired | $ (36) | (4,392) | (5,590) | $ 10,018 | ||
Ending Balance (in shares) at Dec. 31, 2013 | 131,630 | |||||
Ending Balance at Dec. 31, 2013 | 270,697 | $ 1,316 | 180,016 | 4,095 | 85,270 | |
Net income | 44,467 | 44,467 | ||||
Other comprehensive income | (1,590) | (1,590) | ||||
Stock-based compensation expenses | 10,347 | 10,347 | ||||
Issuance of ordinary shares upon exercise of employee stock options and restricted stock units, shares | 3,992 | |||||
Issuance of ordinary shares upon exercise of employee stock options and restricted stock units | 460 | $ 40 | 420 | |||
Dividends declared (US$0.15 per ordinary share) | (20,281) | (20,281) | ||||
Ending Balance (in shares) at Dec. 31, 2014 | 135,622 | |||||
Ending Balance at Dec. 31, 2014 | 304,100 | $ 1,356 | 190,783 | 2,505 | 109,456 | |
Net income | 60,251 | 60,251 | ||||
Other comprehensive income | (1,872) | (1,872) | ||||
Issuance of ordinary shares for Shannon Systems acquisition | 7,640 | $ 16 | 7,624 | |||
Issuance of ordinary shares for Shannon Systems acquisition, Shares | 1,560 | |||||
Stock-based compensation expenses | 10,418 | 10,418 | ||||
Issuance of ordinary shares upon exercise of employee stock options and restricted stock units, shares | 2,339 | |||||
Issuance of ordinary shares upon exercise of employee stock options and restricted stock units | 441 | $ 23 | 418 | |||
Dividends declared (US$0.15 per ordinary share) | (36,480) | (36,480) | ||||
Ending Balance (in shares) at Dec. 31, 2015 | 139,521 | |||||
Ending Balance at Dec. 31, 2015 | $ 344,498 | $ 1,395 | $ 209,243 | $ 633 | $ 133,227 |
Consolidated Statements Of Cha7
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | Nov. 02, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Dividends declared, per share | $ 0.15 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.2625 | $ 0.15 | $ 0.15 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 60,251 | $ 44,467 | $ 27,376 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,936 | 6,917 | 6,429 |
Amortization of intangible assets | 1,051 | 0 | 0 |
Gain from disposal of short-term investments | (3) | (4) | (122) |
Stock-based compensation | 10,418 | 10,347 | 10,262 |
Loss on disposal of property and equipment | 10 | 18 | 5 |
Deferred income taxes | 911 | 471 | 1,181 |
Changes in operating assets and liabilities: | |||
Short-term investments | 14,265 | ||
Notes and accounts receivable | (29,179) | 2,359 | 5,572 |
Inventories | (410) | (10,410) | (1,523) |
Prepaid expenses and other current assets | (664) | (678) | (403) |
Other assets | 136 | 67 | (143) |
Notes and accounts payable | 7,651 | (415) | (11,981) |
Accrued expenses and other current liabilities | 11,020 | 5,543 | (7,415) |
Income tax payable | (4,301) | 9,507 | 3,520 |
Other liabilities | 1,119 | 536 | 2,105 |
Net cash provided by operating activities | 65,946 | 68,725 | 49,128 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of held-to-maturity financial assets | (4,000) | ||
Business acquisition-net of cash and cash equivalents acquired | (30,287) | ||
Increase of prepaid expenses and other current assets | (508) | ||
Return of capital from long-term investments | 46 | ||
Purchase of property and equipment | (23,664) | (11,596) | (12,772) |
Changes in restricted assets | 45 | (3,817) | (89) |
Net cash used in investing activities | (58,414) | (15,413) | (12,815) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of ordinary shares upon exercise of employee stock options | 494 | 514 | 422 |
Share repurchase | (10,018) | ||
Dividends paid | (20,765) | (20,224) | (19,897) |
Net cash used in financing activities | (20,271) | (19,710) | (29,493) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (12,739) | 33,602 | 6,820 |
EFFECT OF EXCHANGE RATE CHANGES | (953) | (1,111) | 166 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 194,211 | 161,720 | 154,734 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 180,519 | 194,211 | 161,720 |
SUPPLEMENTAL INFORMATION | |||
Interest paid | 6 | 71 | 86 |
Income taxes paid | 20,494 | $ 5,892 | $ 2,947 |
Cash paid for Shannon Systems acquisition | 30,287 | ||
Shannon Systems | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Business acquisition-net of cash and cash equivalents acquired | (30,287) | ||
SUPPLEMENTAL INFORMATION | |||
Fair value of assets acquired, net of cash and cash equivalents acquired | 43,662 | ||
Other long-term liabilities | (5,735) | ||
Issuance of stock | (7,640) | ||
Cash paid for Shannon Systems acquisition | $ 30,287 |
Organization and Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Operations | 1. ORGANIZATION AND OPERATIONS Silicon Motion Technology Corporation (“SMTC”, collectively with its subsidiaries the “Company”) was incorporated in the Cayman Islands on January 27, 2005. The Company is a fabless semiconductor company that designs, develops and markets, high-performance, low-power semiconductor solutions to OEMs and other customers in the mobile storage and mobile communications markets. In the mobile storage market, the Company’s key products are controllers used in embedded storage products such as SSDs, and eMMCs, as well as expandable storage products such as flash memory cards and USB flash drives. For the mobile communications market, the Company’s key products are handset transceivers and mobile TV SoCs. The Company acquired SMI Taiwan in April 2005. Originally SMI Taiwan was known as Feiya Technology Corporation (“Feiya”), a Taiwan corporation which was incorporated in April 1997 but had changed its name to SMI Taiwan after acquiring in August 2002 Silicon Motion, Inc., a California corporation (“SMI USA”), which was incorporated in November 1995. Feiya was originally a flash memory products company and SMI USA a graphics processor company. In April 2007, the Company acquired FCI, a leading designer of RF ICs for mobile TV and wireless communications based in South Korea. The Company established Silicon Motion BV in the Netherlands in 2011 with the purpose of expanding its business activities in Europe, as well as providing supervisory, financing, legal support, accounting services and shareholding for the Company’s businesses in other parts of the world. In July 2015, the Company acquired Shanghai Baocun Information Technology Co., Ltd. (“Shannon Systems”), China’s leading enterprise-class PCIe SSD company based in Shanghai, China. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The consolidated financial statements include the accounts of SMTC and its wholly-owned subsidiaries. The Company owns 100% of the outstanding shares in all of its subsidiaries, except for FCI which the Company owns over 99.9%. All significant intercompany balances and transactions have been eliminated upon consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. The actual results could differ from those estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investment in debt securities and accounts receivable. Cash is deposited with high credit-quality financial institutions. For accounts receivable, the Company performs ongoing credit evaluations of its customers’ financial condition and the Company maintains an allowance for doubtful accounts receivable based upon a review of the expected collectibility of individual accounts. The Company sells the semiconductor solutions to leading OEMs and module makers, worldwide. Most of the Company’s solid state storage controllers are supplied to NAND flash manufacturers. The Company is the leading merchant supplier of controllers used in client SSD for PCs and eMMC used in smartphones and a leading supplier of controllers used in flash memory cards and USB flash drives. The Company provides the specialty RF ICs primarily to Samsung and other OEMs. Sales to two customers in 2013 and 2014, and one customer in 2015 accounted for 10% or more of the Company’s net sales, represented 46%, 47% and 30% of the Company’s net sales in 2013, 2014 and 2015, respectively. In 2013 and 2014, the significant customers were Samsung and SK Hynix and in 2015, SK Hynix. The Company’s top ten customers in 2013, 2014 and 2015 accounted for approximately 76%, 76% and 72% of net sales. Fair Value of Financial Instruments The carrying amount of the Company’s financial instruments, including cash and cash equivalents, notes and accounts receivable and notes and accounts payables approximates fair value due to the short-term maturity of the instruments. Fair values of short-term investments represent quoted market prices, if available. If no quoted market prices are available, fair values are estimated based on discounted cash flow, or other valuation techniques. Long-term investments are privately-held companies where there is no readily determinable market value and are recorded using the cost method, since the cost of obtaining verifiable fair value is unreasonably high. The Company periodically evaluates these investments for impairment. If it is determined that an other-than-temporary decline has occurred in the carrying value, an impairment loss is recorded for that period. The Company’s long-term liabilities approximate their fair values as they contain interest rates that vary according to market interest rates. Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that assets or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the Company. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 — Use unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Use observable inputs other than Level 1 prices such as quoted prices for identical or similar instruments in markets that are not active, quoted prices for similar instruments in active markets, and model-based valuation in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Use inputs that are generally unobservable and reflect the use of significant management judgments and estimates. See Note 18, “Fair Value Measurement”, for the related disclosure. Cash Equivalents The Company considers all highly liquid investments to be cash equivalents. Short-term Investments The Company’s short-term investments are short-term income yielding investments with original maturities greater than three months from the purchase date and remaining maturities less than one year. These short-term investments consist primarily of bond funds that are bought and held principally for the purpose of selling them in the near term and are classified as trading securities, structured notes designated at the fair value and senior notes classified as held-to-maturity investment with maturities less than one year. Trading securities and structured notes are reported at fair value with the subsequent changes in fair value recorded in earnings as unrealized gains and losses. Senior notes are measured at amortized cost using the effective interest method less any impairment. Allowance for Doubtful Receivables An allowance for doubtful receivables is provided based on a review of the collectability of accounts receivables. The Company determines the amount of allowance for doubtful receivables by examining the historical collection experience and current trends in the credit quality of its customers as well as its internal credit policies. Inventories Inventories are stated at the lower of cost or market value. Inventories are recorded at standard cost and adjusted to the approximate weighted-average cost at the balance sheet date. Market value represents the current replacement cost for raw materials, work in process and finished goods. The Company assesses its inventory for estimated obsolescence or unmarketable inventory based upon management’s assumptions about future demand and market conditions. In estimating reserves for obsolescence, the Company primarily evaluates estimates based on the timing of the introduction of new products and the quantities remaining of old products and provides reserves for inventory on hand in excess of the estimated demand. Estimated losses on slow-moving items are recognized and included in the allowance for losses. Long-term Investments The Company has long-term investments in companies that it does not exercise significant influence and accounts for these investments under the cost method. Management regularly evaluates financial information related to these investments to determine whether an other than temporary decline in their value exists. Factors indicative of an other than temporary decline include recurring operating losses, credit defaults and subsequent rounds of financings at an amount below the cost basis of the investment. Management periodically weighs all quantitative and qualitative factors in determining if any impairment loss exists. When a decline in value is deemed to be other-than-temporary, the Company recognizes an impairment loss in other income and expense. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Significant additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Depreciation is computed using the straight-line method over estimated useful lives that range as follows: buildings — 25 to 50 years; machinery and equipment — 3 to 6 years; furniture and fixtures — 3 to 8 years; software — 1 to 5 years; leasehold and buildings improvement — the shorter of the estimated useful life or lease term, which is generally 2 to 6 years. Depreciation expense recognized for the years ended December 31, 2013, 2014 and 2015 was approximately US$6,429 thousand, US$6,917 thousand and US$7,936 thousand, respectively. Upon the sale or other disposal of property and equipment, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is credited or charged to operating income. Government Grants Grants received by the Company from the Korean government to assist with specific research and development activities are deducted from those research and development costs incurred, in the period in which the related expenses are incurred, to the extent that they are non-refundable. Government grants that were used for the acquisition of fixed assets are deducted from the acquisition costs of the acquired assets and amortized over the useful lives of the related assets. The Company recognizes refundable government grants as long-term payable and current portion of long-term payable on its consolidated balance sheet. Goodwill and Intangible Assets Goodwill is the excess of the purchase price paid over the fair value of the net tangible and intangible assets acquired in a business combination. Intangible assets, which consist primarily of development technology, are amortized over their estimated useful lives, of 3.5 to 4.5 years. Impairment of Goodwill and Long-Lived Assets The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. Estimates of undiscounted cash flows may differ from actual cash flows due to, among other things, technological changes, economic conditions, changes to the business model or changes in operating performance. If the sum of the undiscounted cash flows is less than the carrying value, an impairment loss is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined by reference to quoted market prices, if available, or discounted cash flows, as appropriate. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing in fiscal year 2013, 2014 and 2015. The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or sooner if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company conducts its annual impairment test of goodwill on November 30. Reporting units may be operating segments as a whole or an operation one level below an operating segment, referred to as a component. Goodwill impairment is tested using a two-step approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchases price over the amounts assigned to assets and liabilities. Estimating fair value is performed by utilizing various valuation approaches, such as income approach or market approach. The total of all reporting unit fair values was also compared to the Company’s market capitalization plus control premium for reasonableness. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing. Other Assets Other assets primarily consist of industrial property right and deposits for office leases. Restricted Assets Restricted assets consist of deposits required for litigation and restricted cash. Restricted cash represents cash set aside as collateral for obtaining capacity and borrowings as well as cash received from government grants with restriction on its usage. Other long-term liabilities Other long-term liabilities primarily consist of payable to former shareholders of Shannon Systems and unrecognized tax benefit. Pension Costs For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees’ individual pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on actuarial calculations. Revenue Recognition Revenue from product sales is generally recognized upon shipment to the customer provided that the Company has received a signed purchase order, the price is fixed or determinable, transfer of title has occurred in accordance with the shipping terms specified in the arrangement with the customer, collectibility from the customer is considered reasonably assured, product returns are reasonably estimable and there are no remaining significant obligations or customer acceptance requirements. Revenue on development service orders is generally recognized upon completion and customer acceptance of contractually agreed milestones. The Company grants certain distributors limited rights of return and price protection rights on unsold products. The return rights are generally limited to five percent of the monetary value of products purchased within the preceding six months, provided that the distributor places a corresponding restocking order of equal or greater value. An allowance for sales returns for distributors and all customers is recorded at the time of sale based on historical returns information available, management’s judgment and any known factors at the time the financial statements are prepared that would significantly affect the allowance. Price protection rights are based on the inventory products the distributors have on hand at the date the price protection is offered. A reserve for price adjustments is recorded based on the estimated products on hand at the distributors and historical experience. The Company incurred actual price adjustments to distributors are minimal. The Company provides a warranty period of one year for manufacturing defects of its products. Warranty returns have been infrequent and relate to defective or off-specification parts. The Company estimates a reserve for warranty based on historical experience and records this amount to cost of sales. For the years ended December 31, 2013, 2014 and 2015, the Company did not experience significant costs associated with warranty returns. Research and Development Research and development costs consist of expenditures incurred during the course of planned research and investigation aimed at the discovery of new knowledge that will be useful in developing new products or at significantly enhancing existing products as well as expenditures incurred for the design and testing of product alternatives. All expenditures related to research and development activities of the Company are charged to operating expenses when incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Income Taxes The provision for income tax represents income tax paid and payable for the current year plus the changes in the deferred income tax assets and liabilities during the years. Deferred income tax assets are recognized for net operating loss carryforwards, research and development credits, and temporary differences. The Company believes that uncertainty exists regarding the realizability of certain deferred income tax assets and, accordingly, has established a valuation allowance for those deferred income tax assets to the extent the realizability is not deemed to be more likely than not. Deferred income tax assets and liabilities are measured using enacted tax rates. The Company has classified deferred tax assets and liabilities as noncurrent on the consolidated balance sheets as of December 31, 2015 and 2014 as the Company has early adopted Accounting Standards Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes, on a retrospective basis. The Company utilizes a two step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained in a dispute with taxing authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. SMI Taiwan, the Company’s largest operating company is a Taiwan registered company. Under Taiwan tax regulations, the current year’s earnings, on an after tax basis, that are not distributed in the following year are subject to a 10% surtax income tax. This 10% surtax income tax is recognized in the period during which the related earnings are generated. The Taiwan government enacted the Income Basic Tax Act (“the IBT Act”), which became effective on January 1, 2006. The alternative minimum tax (“AMT”) imposed under the IBT Act is a supplemental tax levied at a rate of 10% which is payable if the income tax payable determined pursuant to the Income Tax Law is below the minimum amount prescribed under the IBT Act. The taxable income for calculating the AMT includes most of the income that is exempted from income tax under various laws and statutes. The Company has considered the impact of the IBT Act in the determination of its tax liabilities. Under the IBT Act amended in August 2012, the standard deduction and the tax rate of AMT were amended from NT$1,000 thousand to be NT$500 thousand and from 10% to 12%, respectively. The amended IBT Act is effective on January 1, 2013. Foreign Currency Transactions Foreign currency transactions are recorded at the rates of exchange in effect when the transaction occurs. Gains or losses, resulting from the application of different foreign exchange rates when cash in foreign currency is converted into the entities’ functional currency, or when foreign currency receivables and payables are settled, are credited or charged to income in the period of conversion or settlement. At the balance sheet date, assets and liabilities denominated in foreign currencies are remeasured based on prevailing exchange rates and any resulting gains or losses are credited or charged to income. Translation of Foreign Currency Financial Statements The reporting currency of the Company is the U.S. dollars. The functional currency of some of the Company’s subsidiaries is the local currency of the respective entity. Accordingly, the financial statements of the foreign subsidiaries were translated into U.S. dollars at the following exchange rates: assets and liabilities — current rate on the balance sheet date; shareholders’ equity — historical rates; income and expenses — average rate during the period. The resulting translation adjustment is recorded as a separate component of comprehensive income. Comprehensive Income (Loss) Comprehensive income and loss represents net income (loss) plus the results of certain changes in shareholders’ equity during a period from non-owner sources. The following table presents the components of accumulated other comprehensive income (loss) as of December 31, 2013, 2014 and 2015: Year Ended December 31, 2013 Year Ended December 31, 2014 Year Ended December 31, 2015 US$ US$ US$ Foreign currency items Defined benefit pension plans Accumulated other comprehensive income (loss) Foreign currency items Defined benefit pension plans Accumulated other comprehensive income (loss) Foreign currency items Defined benefit pension plans Accumulated other comprehensive income (loss) Beginning balance 3,923 (258 ) 3,665 4,556 (461 ) 4,095 3,354 (849 ) 2,505 Current-period change 633 (203 ) 430 (1,202 ) (388 ) (1,590 ) (1,868 ) (4 ) (1,872 ) Ending balance 4,556 (461 ) 4,095 3,354 (849 ) 2,505 1,486 (853 ) 633 Legal Contingencies The Company is currently involved in various claims and legal proceedings. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to the pending claims and litigation and revises these estimates as appropriate. Such revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position. Earnings Per Share Basic earnings per share are computed by dividing net earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if stock options and other dilutive securities were exercised. Dilutive securities are excluded from the computation of the diluted income per share in periods when their effect is anti-dilutive. The Company’s dilutive securities consist of employee stock options and restricted stock units. The effect of dilutive securities including employee stock options and restricted stock units were 2,308 thousand shares (577 thousand ADSs), 2,183 thousand shares (546 thousand ADSs) and 1,534 thousand shares (384 thousand ADSs) for the years ended December 31, 2013, 2014 and 2015, respectively. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718 Compensation — Stock Compensation. The Company uses the Black-Scholes valuation model for the valuation of stock options and recognizes compensation expense on a straight-line basis over the requisite service period of the award. The value of our restricted stock units is based on the fair value of our shares on the date of grant and expensed over the vesting period. Prior to the initial declaration of a quarterly cash dividend on January 22, 2013, the fair value of restricted stock units (“RSUs”) was measured based on the grant date share price, as the Company did not historically pay cash dividends on our common stock. For awards granted on or subsequent to January 22, 2013, the fair value of RSUs was measured based on the grant date share price, less the present value of expected dividends during the vesting period, discounted at a risk-free interest rate. Treasury Stock Treasury stock is stated at cost and shown as a reduction to shareholders’ equity. The Company retires ordinary shares repurchased under a share repurchase plan. Accordingly, upon retirement the excess of the purchase price over par value is allocated between additional paid-in capital and retained earnings based on the average issuance price of the shares repurchased. A repurchase of ADSs is recorded as treasury stock until the Company completes the withdrawal of the underlying ordinary shares from the ADS program. Dividends Our Board of Directors declared payment of our first quarterly dividend on our common stock in January 2013 and the first dividend payment was made on March 4, 2013. Our Board of Directors has subsequently declared and paid dividends in each successive quarter. On November 2, 2015, our Board of Directors, instead of declaring a quarterly dividend, declared an annual dividend payable in four quarterly installments. The payment of future cash dividends are subject to the Board’s continuing determination that the payment of dividends are in the best interests of the Company’s shareholders and are in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends. Recent Accounting Pronouncements In April 10, 2014, the FASB issued an accounting update, which changes the criteria for reporting discontinued operations for all public and nonpublic entities. The guidance requires only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. The guidance also requires entities 1) to expand their disclosures about discontinued operations to include more information about assets, liabilities, income, and expenses and 2) to disclose the pre-tax income attributable to a disposal of “of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements.” The guidance is effective for fiscal years beginning after December 15, 2014 and early adoption is prohibited. The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or cash flow. In May 2014, the FASB issued a new standard related to revenue recognition. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an amendment to defer the effective date. The new standard is effective for fiscal years beginning after December 15, 2017 and early adoption is permitted for annual reporting periods beginning after December 15, 2016. In March and April 2016, the FASB issued two accounting updates to clarify the implementation guidance on principal versus agent considerations, performance obligations and the licensing. The new guidance is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The Company is in the process of evaluating this guidance to determine the impact it will have on the consolidated financial statements. In June 2014, the FASB issued an accounting update, which clarifies the accounting for share-based payments. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. The guidance is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In August 2014, the FASB issued new standard related to the presentation of financial statements when there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for fiscal years beginning after December 15, 2016 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In February 2015, the FASB issued an accounting update to amend the consolidation analysis. All legal entities are subject to reevaluation under the revised consolidation model. The amendment is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In April 2015, the FASB issued an accounting update regarding the measurement date of a defined benefit obligation and plan assets. The amendment permits the entity with a fiscal year-end that does not coincide with a month-end to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end. If a contribution or significant event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. This amendment is effective for fiscal years beginning after December 15, 2016 and early application is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In May 2015, the FASB issued an accounting update regarding disclosures for investments that calculate net asset value per share. The amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. Instead, an entity is required to include those investments as a reconciling line item so that the total fair value amount of investments in the disclosure is consistent with the amount on the balance sheet. Further, the amendment removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using the practical expedient. The amendment is effective for fiscal years beginning after December 15, 2015. The amendment must be applied retrospectively and early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s financial statement disclosure. In July 2015, the FASB issued an accounting update to simplify the measurement of inventory. The amendment requires the measurement of inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendment applies to inventories for which cost is determined by methods other than the last-in first-out and the retail inventory methods. This amendment is effective prospectively for annual periods beginning after December 15, 2016 and early application is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In September 2015, the FASB issued an accounting update regarding simplifying the accounting for measurement period adjustments attributable to an acquisition. The amendment requires an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adjustments should reflect the impact on earnings of changes in depreciation, amortization, or other income effects, if any, as if the accounting had been completed as of the acquisition date. Additionally, amounts recorded in the current period that would have been reflected in prior reporting periods if the adjustments had been recognized as of the acquisition date |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition | 3. BUSINESS ACQUISITION On July 1, 2015, the Company completed its acquisition of Shannon Systems, China’s leading enterprise-class PCIe SSD company based in Shanghai, China. In exchange for 100% of outstanding shares of common stock of Shannon Systems, the Company issued 1,560 thousand ordinary shares with fair value of US$7,640 thousand and paid approximately US$37,925 thousand in cash. The value of the 1,560 thousand ordinary shares issued was determined based on the average market price of the Company’s ordinary shares over the 20-day period before the terms of the acquisition were agreed to and announced. In 2015, the Company incurred US$359 thousand of acquisition costs which comprise primarily of transaction fees and direct acquisition costs, including legal, accounting, and other professional fees. These costs are included in the line item of “operating expenses - general and administrative” on the consolidated statements of income. The acquisition will expand the Company’s portfolio of embedded storage products. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: US$ Cash and cash equivalents 1,903 Accounts receivable, net 946 Inventories 2,624 Other current assets 289 Property and equipment 71 Goodwill 33,204 Identifiable intangible assets 8,381 Accounts payable (644 ) Accrued expenses and other current liabilities (1,209 ) Net assets acquired 45,565 As of December 31, 2015, of the cash consideration of approximately US$37,925 thousand, US$5,735 thousand has not been paid to the former shareholders of Shannon Systems as of December 31, 2015 and are included in other long-term liabilities on the consolidated balance sheets. The excess of the purchase price over the fair value of the net tangible assets acquired has been reflected as identifiable intangible assets. The identifiable intangible assets and respective useful lives are as follows: US$ Useful Life Developed technology 3,789 3.5 In-process research and development (“IPR&D”) 4,592 indefinite Total identifiable intangible assets 8,381 Developed technology represented the existing know-how in enterprise-class PCIe SSD including all the developed and in-process products for the Shannon Systems business. The estimated fair value of IPR&D was defined as research and development projects related to enterprise-class PCIe SSDs in-process at the time of the transaction that had not demonstrated their technological feasibility and that do not have an alternative future use. Goodwill represents the excess of the purchase price over the estimated fair values of the net tangible and intangible assets. The factors that contributed to the recognition of goodwill primarily relate to expansion into new product areas and potential synergies created from combined capabilities, and goodwill is not expected to be deductible for tax purposes. The results of Shannon Systems since the acquisition date included on the consolidated statement of income for the year ended December 31, 2015 were as follows: US$ Net sales 9,049 Net income 421 The operating results of Shannon Systems have been included in the Company’s operations beginning July 1, 2015. The following unaudited pro forma information represents a summary of the results of operations as if the acquisition occurred on January 1, 2014 and 2015 and includes certain pro forma adjustments, including amortization of identifiable intangibles from that date (in thousands except earnings per share): Year Ended December 31 2014 2015 Net sales 293,562 364,670 Net income 42,483 58,468 Earnings per share Basic 0.31 0.42 Diluted 0.31 0.42 Weighted average ordinary shares outstanding (thousand) Basic 136,164 138,880 Diluted 138,347 140,414 The pro forma results are based on various assumptions and are not necessarily indicative of what would have occurred had the acquisition closed on January 1, 2014 and 2015. |
Cash And Cash Equivalents
Cash And Cash Equivalents | 12 Months Ended |
Dec. 31, 2015 | |
Cash And Cash Equivalents | 4. CASH AND CASH EQUIVALENTS December 31 2014 2015 US$ US$ Cash and deposits in bank 38,851 28,780 Time deposits 155,360 151,739 194,211 180,519 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2015 | |
Short-Term Investments | 5. SHORT-TERM INVESTMENTS December 31 2014 2015 US$ US$ Trading securities 703 681 Held-to-maturity investments — 4,000 703 4,681 The Company classified certain short-term investments as trading securities in 2013, 2014 and 2015. Realized gains on sales of these trading securities were US$4 thousand, US$4 thousand and US$3 thousand for the years ended December 31, 2013, 2014 and 2015, respectively. The amount of unrealized losses related to trading securities at year end was nil for the years ended December 31, 2013, 2014 and 2015, respectively. Structured notes matured in May 2013 and the Company recognized the gain of US$118 thousand. The held-to-maturity investments are senior notes. In July 2015, the Company purchased senior notes which will be matured in July 2016 with a coupon rate of 1.65% and an effective interest rate of 1.65%, at par value of US$4,000 thousand. |
Notes and Accounts Receivable
Notes and Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Notes and Accounts Receivable | 6. NOTES AND ACCOUNTS RECEIVABLE December 31 2014 2015 US$ US$ Notes receivable 192 16 Trade accounts receivable 31,256 61,293 31,448 61,309 Allowance for doubtful accounts (1,167 ) (775 ) Allowance for sales returns and discounts (1,427 ) (1,555 ) 28,854 58,979 The changes in the allowances are summarized as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Allowances for doubtful accounts Balance, beginning of year 1,634 1,275 1,167 Reversals charged to expense, net (359 ) (108 ) (392 ) Write-offs — — — Balance, end of year 1,275 1,167 775 Year Ended December 31 2013 2014 2015 US$ US$ US$ Allowances for sales returns and discounts Balance, beginning of year 1,919 1,059 1,427 Additions charged to expense, net 1,320 1,600 1,753 Actual sales return and discount (2,180 ) (1,232 ) (1,625 ) Balance, end of year 1,059 1,427 1,555 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories | 7. INVENTORIES The components of inventories are as follows: December 31 2014 2015 US$ US$ Finished goods 9,787 13,860 Work in process 20,835 21,201 Raw materials 13,454 12,049 44,076 47,110 The Company wrote down US$2,503 thousand, US$4,561 thousand and US$2,525 thousand in 2013, 2014 and 2015, respectively, for estimated obsolete or unmarketable inventory. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Investments | 8. LONG-TERM INVESTMENTS As of December 31, 2014 and 2015, the Company held equity investments in several privately-held companies with the carrying value as follows: Percentage of Ownership December 31 2014 2015 2014 2015 US$ US$ Cost method: Cashido Corp. (Cashido) 2.1 % 2.1 % 104 104 Vastview Technology, Corp. (Vastview) 2.9 % 2.9 % 29 29 133 133 In July 2001, the Company invested in the common stock of Cashido. At the time of our investment, Cashido manufactured flash memory storage devices. Cashido currently focuses on the manufacture of computer accessories and ozone based sterilization devices. In December 2006 and February 2007, the Company invested US$3,360 thousand in the common stock of Vastview. Vastview is a fabless semiconductor company that develops and markets driver ICs and other ICs for the TFT-LCD industry. In 2009 and 2013, the Company received US$808 thousand and US$46 thousand from Vastview which reduced its share capital. From 2008 to 2010, the Company had recognized impairment charges of US$2,462 thousand in its investment in Vastview. No impairment charges were incurred since 2011. The Company accounts for these investments using the cost method. These investments are evaluated for impairment on an annual basis or as circumstances warrant. The Company believed there was no other than temporary impairment for the years ended December 31, 2013, 2014 and 2015, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment | 9. PROPERTY AND EQUIPMENT December 31 2014 2015 US$ US$ Cost: Land 8,058 8,813 Buildings 19,813 21,254 Machinery and equipment 13,443 15,995 Furniture and fixtures 5,131 6,446 Leasehold and buildings improvement 4,229 4,656 Software 29,796 17,505 Total 80,470 74,669 Accumulated depreciation: Buildings 2,240 2,648 Machinery and equipment 10,573 11,983 Furniture and fixtures 3,492 3,980 Leasehold and buildings improvement 3,064 3,358 Software 25,807 14,421 45,176 36,390 Prepayment and construction in progress 243 12,190 35,537 50,469 In April 2006, the Company leased properties located in Taipei, Taiwan, to a third party under a three-year operating lease. Net carrying value of the properties as of December 31, 2015 was US$746 thousand. The lessee renewed the three year operating lease with the Company in March 2012 and 2015. Annual rental income from the lease is about US$41 thousand each year. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Acquired Intangible Assets | 10. GOODWILL AND ACQUIRED INTANGIBLE ASSETS Intangible assets: December 31 2014 2015 US$ US$ Cost Accumulated Impairment Accumulated Amortization Net Carrying Amount Cost Accumulated Impairment Accumulated Amortization Net Carrying Amount Core technology 15,809 (4,474 ) (11,335 ) — 15,809 (4,474 ) (11,335 ) — Customer relationship 8,325 — (8,325 ) — 8,325 — (8,325 ) — Order backlog 1,243 — (1,243 ) — 1,243 — (1,243 ) — Developed technology — — — — 8,381 — (1,051 ) 7,330 Total 25,377 (4,474 ) (20,903 ) — 33,758 (4,474 ) (21,954 ) 7,330 No impairment losses were recognized in 2013, 2014 and 2015. Amortization expense of acquisition-related intangible assets for the years ended December 31, 2013, 2014 and 2015 was nil, nil and US$ 1,051 thousand, respectively. Goodwill: December 31 2014 2015 US$ US$ Cost Accumulated Impairment Foreign Currency Adjustment Net Carrying Amount Cost Accumulated Impairment Foreign Currency Adjustment Net Carrying Amount Goodwill 66,300 (30,808 ) (25 ) 35,467 99,504 (30,808 ) (36 ) 68,660 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses and Other Current Liabilities | 11. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31 2014 2015 US$ US$ Wages and bonus 12,093 20,365 Dividends 153 15,839 Research and development payable 2,468 2,953 License fees and royalties 2,982 4,173 Professional fees 1,714 2,126 Equipment 1,170 1,285 Others 3,066 5,340 23,646 52,081 |
Pension Plan
Pension Plan | 12 Months Ended |
Dec. 31, 2015 | |
Pension Plan | 12. PENSION PLAN SMI Taiwan, the Company’s largest operating company is a Taiwan registered company and subject to Taiwan’s Labor Pension Act (the “Act”), which became effective on July 1, 2005, and the pension mechanism under the Act is deemed a defined contribution plan. The employees who were subject to the Labor Standards Law prior to July 1, 2005 were allowed to choose to be subject to the pension mechanism under the Act or continue to be subject to the pension mechanism under the Labor Standards Law. For those employees who were subject to the Labor Standards Law prior to July 1, 2005 and still work for the same company after July 1, 2005 and have chosen to be subject to the pension mechanism under the Act, their seniority as of July 1, 2005 were maintained. The Act prescribes that the rate of contribution by an employer to employees’ pension accounts per month will not be less than 6% of each employee’s monthly salary. According to the Act, SMI Taiwan made monthly contributions and recognized pension costs of US$788 thousand, US$872 thousand and US$1,015 thousand for the years ended December 31, 2013, 2014 and 2015, respectively. The Company provides a defined benefit plan to the employees of SMI Taiwan under the Labor Standards Law that offers benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to a pension funds (the “Funds”), which is administered by the Labor Pension Fund Supervisory Committee established by the government (the “Committee”) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefit for employees who conform to retirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The government is responsible for the administration of all the defined benefit plans for the companies in Taiwan under the Labor Standards Law. The government also sets investment policies and strategies, determines investment allocation and selects investment managers. As of December 31, 2014 and 2015, the asset allocation was primarily in cash, equity securities and debt securities. Furthermore, under the Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks. The government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. However, information on how investment allocation decisions are made, inputs and valuation techniques used to measure the fair value of plan assets, the effect of fair value measurements using significant unobservable inputs on changes in plan assets for the period and significant concentrations of risk within plan assets is not fully made available to the Company by the government. Therefore, the Company is unable to provide the required fair value disclosures related to pension plan assets. Future contributions will be based on 2% of the employee salaries at that time. The Company estimates its contribution for the year ending December 31, 2016 to be US$57 thousand which was determined based on 2% of estimated salaries in 2016. Starting in 2010, the Company provides a defined benefit pension plan to the Korean employees of FCI, the Company’s second largest operating subsidiary with at least one year of service. FCI’s overall investment strategy is to avoid a negative return on plan assets. FCI estimates its contribution for the year ending December 31, 2016 to be US$745 thousand. For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees’ individual pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on actuarial calculations. Determining the cost associated with such benefits is dependent on various actuarial assumptions, including discount rate, expected return on plan assets, compensation increase, employee mortality and turnover rates. The Company reviewed its actuarial assumptions at the measurement date on December 31 every year. The effect of modifications to assumptions is recorded in accumulated other comprehensive loss and amortized to net periodic cost over future periods using the corridor method. The Company believes that assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. Independent actuaries perform the required calculations to determine expense in accordance with U.S. GAAP. Actual results may differ from the actuarial assumptions and are generally accumulated and amortized into earnings over future periods. The net periodic costs are recognized as employees render services necessary to earn the benefits. The changes in benefits obligation and plan assets and the reconciliation of funded status are as follows: December 31 2013 2014 2015 US$ US$ US$ Change in benefit obligation Projected benefit obligation at beginning of year 1,897 2,098 3,320 Service cost 440 437 273 Interest cost 58 58 57 Actuarial loss(gain) (202 ) 814 79 Benefits paid (95 ) (87 ) (97 ) Projected benefit obligation at end of year 2,098 3,320 3,632 Change in plan assets Fair value of plan assets at beginning of year 1,925 2,319 2,556 Actual return on plan assets 43 31 33 Employer contributions 433 282 328 Benefits paid (82 ) (76 ) (117 ) Fair value of plan assets at end of year 2,319 2,556 2,800 Funded status recognized as an other asset (liabilities) 221 (764 ) (832 ) Amounts recognized in accumulated other comprehensive income consist of the following: Year Ended December 31 2013 2014 2015 US$ US$ US$ Net loss 460 848 852 Transition obligation 1 1 1 Total recognized in accumulated other comprehensive income 461 849 853 The accumulated benefit obligation for all defined benefit pension plans was US$1,369 thousand, US$1,762 thousand and US$2,098 thousand at December 31, 2013, 2014 and 2015, respectively. The components of net periodic benefit cost are as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Service cost 440 437 273 Interest cost 58 58 57 Projected return on plan assets (47 ) (51 ) (47 ) Amortization of unrecognized net transition obligation and unrecognized net actuarial gain (3 ) (19 ) 27 Net periodic benefit cost 448 425 310 Other changes in plan assets and benefit obligation recognized in other comprehensive loss: 2013 2014 2015 US$ US$ US$ Recognize the decrease in net gain 203 388 4 Amortization of net gain — — — Total recognized in other comprehensive loss 203 388 4 The estimated net gain for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is US$19 thousand. Expected benefit payments: US$ 2016 146 2017 290 2018 175 2019 140 2020 120 2021 and thereafter 748 The actuarial assumptions to determine the benefit obligations were as follows: 2013 2014 2015 Taiwan Korea Taiwan Korea Taiwan Korea Weighted-average assumptions used to determine benefit obligations: Discount rate 1.88 % 5.20 % 2.00 % 4.10 % 1.75 % 3.90 % Rate of compensation increase 4.25 % 2.60 % 4.25 % 5.00 % 4.25 % 4.00 % Weighted-average assumptions used to determine net projected benefit cost: Discount rate 1.88 % 5.20 % 2.00 % 4.10 % 1.75 % 3.90 % Expected long-term return on plan assets 2.00 % 3.00 % 2.00 % 2.00 % 2.00 % 1.20 % Rate of compensation increase 4.25 % 2.60 % 4.25 % 5.00 % 4.25 % 4.00 % In 2014 and 2015, FCI’s pension plan assets were invested in principal guaranteed interest insurance contracts and fixed bank deposits, which are principal and interest guaranteed products and are classified as Level 2. These Level 2 securities were valued by discounting future cash flows using benchmark yield rates. The fair values of FCI’s pension plan assets at December 31, 2014 and 2015 are as follows: December 31 2014 2015 US$ US$ Guaranteed interest contract Kyobo Life Insurance Co. Ltd. 730 823 Fixed deposit Industrial Bank of Korea 875 980 1,605 1,803 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | 13. INCOME TAXES The components of income tax expense are as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Current 8,591 15,630 17,338 Deferred 1,181 471 911 Income tax expense 9,772 16,101 18,249 The income (loss) before income taxes for domestic and foreign entities is as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Domestic (8,080 ) (12,761 ) (12,037 ) Foreign 45,228 73,329 90,537 37,148 60,568 78,500 Since the Company is based in the Cayman Islands, a British overseas territory with no corporate income tax, domestic tax on pretax income is calculated at the Cayman Islands statutory rate of zero for each year. The Company and its subsidiaries file separate income tax returns. A reconciliation of income tax expense on pretax income at statutory rate and income tax expense is shown below: Year Ended December 31 2013 2014 2015 US$ US$ US$ Cayman statutory rate — — — Tax on pretax income at statutory rate 6,788 15,727 18,765 Tax-exempt income (4,325 ) (2,573 ) (906 ) Permanent differences 1,730 (396 ) (1,065 ) Temporary differences 1,732 (344 ) (330 ) Alternative minimum tax 2,203 1,170 4 Income tax (10%) on undistributed earnings 3,396 2,491 2,460 Net changes in income tax credit 708 (899 ) (897 ) Net changes in valuation allowance of deferred income tax assets (2,364 ) 733 1,621 Net operating loss carryforwards (189 ) (1,298 ) (2,052 ) Liabilities related to unrealized tax benefits (39 ) 91 672 Adjustment of prior years’ taxes and others 132 1,399 (23 ) Income tax expense 9,772 16,101 18,249 Deferred income tax assets (liabilities) are as follows: December 31 2014 2015 As Adjusted (Note 2) US$ US$ Notes and accounts receivable 141 82 Stock-based compensation 615 544 Allowance for sales return 105 173 Inventory reserve 814 1,478 Foreign currency translation (1,273 ) (1,949 ) Property and equipment 452 360 Investment tax credits 7,823 8,295 Net operating loss carryforwards 9,621 10,651 Others 14 20 Valuation allowance (16,791 ) (19,044 ) 1,521 610 The valuation allowance shown in the table above relates to net operating loss carryforwards, tax credits and temporary differences for which the Company believes that realization is uncertain. The change in the valuation allowance was an increase of US$1,075 thousand, an increase of US$515 thousand, and an increase of US$2,253 thousand for the years ended December 31, 2013, 2014, and 2015, respectively. The increase in valuation allowance in 2013, 2014 and 2015 are primarily due to the uncertainty in generating sufficient taxable income in the future and utilization of operating loss carryforwards and research and development credits before they expire. In addition, profits generated from certain products of SMI Taiwan are exempted from income tax for five years beginning January 1, 2010 and January 1, 2012. As of December 31, 2015, FCI had unused research and development tax credits of approximately US$4,139 thousand which will expire in the period from 2015 to 2019. As of December 31, 2015, the Company’s United States federal net operating loss carryforwards for federal income tax purposes were approximately US$9,427 thousand. If not utilized, the federal net operating loss carryforwards will expire in 2035. As of December 31, 2015, the Company’s United States federal and state research and development tax credit carryforwards for federal and state income tax purposes were approximately US$2,444 thousand and US$1,711 thousand, respectively. If not utilized, the federal tax credit carryforwards will expire starting in 2035 while the state tax credit carryforward has no expiration date. Current United States federal and California state laws include substantial restrictions on the utilization of net operating losses and credits in the event of an “ownership change” of a corporation. Accordingly, the Company’s ability to utilize net operating loss and tax credit carryforwards may be limited as a result of such “ownership change”. Such a limitation could result in the expiration of carryforwards before they are utilized. As of December 31, 2015, the Company had accumulated undistributed earnings from a foreign subsidiary of US$242 million. No deferred tax liability was recorded in respect of those amounts as these earnings are considered indefinitely reinvested. It is not practicable to estimate the amount of unrecognized deferred tax liabilities for these undistributed foreign earnings. Unrecognized Tax Benefit A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Balance, beginning of year 3,520 5,815 4,655 Increases in tax positions taken in current year 2,947 446 2,337 Decrease in tax position taken in prior year primarily related to the resolution of tax audit (652 ) (1,606 ) (1,353 ) Balance, end of year 5,815 4,655 5,639 At December 31, 2015, the Company had US$5,639 thousand of unrecognized tax benefits that if recognized would affect the effective tax rate. For the years ended December 31, 2013, 2014 and 2015, the total amount of interest expense and penalties related to uncertain tax positions recorded in the provision for income tax expense was approximately US$627 thousand, US$343 thousand and US$363 thousand, respectively. The total amount of accrued interest and penalties recognized as of December 31, 2014 and 2015 was US$1,674 thousand and US$1,977 thousand, respectively. The Company does not expect uncertain tax positions to change in the next twelve months, except in the case of settlements with tax authorities, the likelihood and timing of which are difficult to estimate. The Company files income tax returns in United States and foreign jurisdictions. The following table summarizes the Company’s major jurisdictions and tax year that remain subject to examination by tax authorities as of December 31, 2015: Tax Jurisdiction Tax Years Hong Kong 2013 and onward Taiwan 2010 and onward Korea 2010 and onward United States 2007 onward |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity | 14. SHAREHOLDERS’ EQUITY Appropriations from Earnings Pursuant to the laws and regulations of the ROC and the respective Articles of Incorporation, SMI Taiwan, the Company’s largest subsidiary, must make appropriations from annual earnings to non-distributable reserve which could affect the Company’s ability to pay cash or stock dividends, if any. SMI Taiwan subsidiary may only distribute dividends after it has made allowances as determined under ROC GAAP at each year-end for: a. Payment of taxes; b. Recovery of prior years’ deficits, if any; c. 10% of remaining balance after deduction for a and b as legal reserve; d. Special reserve based on relevant laws or regulations or 10% of remaining balance for deduction from above a to c as special reserve when necessary; e. Cash or stock bonus to employees at 0.01% of any remaining earnings after the above reserves have been appropriated, based on a resolution of the board of directors. If bonus to employees is in the form of stock, the bonus may also be appropriated to employees of subsidiaries under the board of directors’ approval; The existing Articles of Incorporation of SMI Taiwan stipulates to distribute bonus to employees at 0.01% of net income (net of the bonus and remuneration). In accordance with the amendments to the Company Act in May 2015, the recipients of dividends and bonuses are limited to shareholders and do not include employees. The consequential amendments to the Articles of Incorporation of SMI Taiwan will be approved by the SMI Taiwan’s board of directors by June 30, 2016. The proposed amended Articles of Incorporation of SMI Taiwan will stipulate to distribute employees’ compensation and remuneration to directors and supervisors at rates no less than certain percentage or amount and no higher than certain percentage or amount, respectively, of net profit before income tax, employees’ compensation, and remuneration to directors and supervisors. Dividends The Company declared cash dividends per ordinary share during the periods presented as follows: 2014 2015 Dividends Per Share (US$) Amount (in US$ thousands) Dividends Per Share (US$) Amount (in US$ thousands) First quarter $ 0.0375 $ 5,056 $ 0.0375 $ 5,156 Second quarter $ 0.0375 5,060 $ 0.0375 5,166 Third quarter $ 0.0375 5,081 $ 0.0375 5,230 Fourth quarter $ 0.0375 5,084 $ 0.0375 5,232 $ 20,281 $ 20,784 On November 2, 2015, our Board of Directors, instead of declaring a quarterly dividend, declared an annual dividend of US$0.6 per ADS, equivalent to US$0.15 per ordinary share, which will be paid in four quarterly installments staring the forth quarter of 2015. Future dividends, if any, on the Company’s outstanding ADSs and ordinary shares will be declared by and subject to the discretion of the Company’s board of directors. If the Company’s board of directors decides to distribute dividends, the form, frequency and amount of such dividends will depend upon the Company’s future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors our board of directors may deem relevant. Any future dividend the Company declares will be paid to the holders of ADSs, subject to the terms of the deposit agreement, to the same extent as holders of the Company’s ordinary shares, to the extent permitted by applicable laws and regulations, less the fees and expenses payable under the deposit agreement. Any dividend the Company declares will be distributed by the depositary bank to the holders of our ADSs. Cash dividends on our ordinary shares, if any, will be paid in U.S. dollars. Treasury Stock On January 21, 2013, our Board of Directors approved share buyback plans to repurchase up to US$40 million of the Company’s ADSs during the period from January 22, 2013 to January 21, 2014. The program did not obligate the Company to acquire any particular amount of ADS and the program may be modified or suspended at any time at the Company’s discretion. All the treasury stock under this share repurchase program was retired in July 2013. In the year ended December 31, 2013, the Company repurchased 891 thousand of ADSs for a total cost of US$10.0 million. The weighted average purchase price per ADS repurchased was US$11.24. |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Dec. 31, 2015 | |
Equity Incentive Plan | 15. EQUITY INCENTIVE PLAN 2005 Equity Incentive Plan and 2015 Equity Incentive Plan On April 22, 2005, the Company adopted its 2005 Equity Incentive Plan (“the 2005 Plan”). The 2005 Plan provides for the grant of stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights, which may be granted to employees (including officers), directors and consultants. The 2005 Plan reserved 10,000 thousand shares of ordinary shares, inclusive of the number of assumed share options under the 2004 Plan, for issuance upon the exercise of stock options. In 2006, the Company amended the 2005 Plan to reserve an additional 15,000 thousand ordinary shares for issuance upon exercise of stock options and restricted stock units. In 2009, the Company amended the Plan to reserve an additional 15,000 thousand ordinary shares for issuance upon exercise of stock options and restricted stock units. Restricted stock units are converted into shares of the Company’s ordinary shares upon vesting on one-for-one basis. The vesting of restricted stock unit is subject to the employee’s continuing service to the Company. The cost of these awards is determined using the fair value of the Company’s ordinary share on the date of the grant, and compensation is recognized on a straight-line basis over the requisite service period. The Company’s restricted stock units are considered non-vested share awards as defined under ASC 718. In April 2010, the Company’s Board of Directors and Compensation Committee approved an employee stock option exchange program that required certain employees to exchange eligible stock options for a lesser number of new stock options that have approximately the same fair values as the options surrendered. Eligible options included stock options granted between August 17, 2005 and July 31, 2008 that had an exercised price above US$1.85. In 2010, 4,369 thousand eligible stock options were exchanged for 3,785 thousand new stock options granted. The new stock options have an exercise price of US$1.47, which was equal to the market price of the Company’s ordinary share on April 26, 2010, the date eligible stock options were surrendered and new stock options granted. The new stock options were issued under the 2005 Plan and are subject to its terms and conditions. The new stock options will continue to vest according to the original vesting schedule. Using the Black-Scholes option pricing model, the Company determined that the fair value of the surrendered stock options on a grant-by-grant basis was approximately equal, as of the date of the exchange, to the fair value of the new stock options granted, resulting in insignificant incremental share-based compensation. On June 3, 2015, the Company adopted its 2015 Equity Incentive Plan (“the 2015 Plan”). The 2015 Plan provides for the grant of stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights, which may be granted to employees (including officers), directors and consultants. The 2015 Plan reserved 20,000 thousand shares of ordinary shares for issuance upon exercise of stock options and restricted stock units. Stock Option and Restricted Stock Units Activity The following is a summary of, the 2005 Plan and the 2015 Plan, which includes stock options and restricted stock units: Unit Available for grant at January 1, 2013 5,336 Restricted stock units granted (1,893 ) Option and restricted stock units forfeited 123 Available for grant at December 31, 2013 3,566 Restricted stock units granted (1,923 ) Option and restricted stock units forfeited 44 Available for grant at December 31, 2014 1,687 Authorized 20,000 Restricted stock units granted (2,000 ) Option and restricted stock units forfeited 175 Available for grant at December 31, 2015 19,862 Stock Options A summary of the stock option activity and related information is as follows: Number of Shares Weighted Weighted (Years) Outstanding at January 1, 2013 1,697 1.47 Options forfeited — — Options exercised (287 ) 1.47 Outstanding at December 31, 2013 1,410 1.47 2.14 Options vested and expected to vest after December 31, 2013 1,410 1.47 2.14 Options forfeited — — Options exercised (352 ) 1.46 Outstanding at December 31, 2014 1,058 1.47 1.35 Options vested and expected to vest after December 31, 2014 1,058 1.47 1.35 Options forfeited (143 ) 1.47 Options exercised (336 ) 1.47 Outstanding at December 31, 2015 579 1.47 0.92 Options vested and expected to vest after December 31, 2015 579 1.47 0.92 Options exercisable at December 31, 2015 579 1.47 0.92 No stock options were granted in 2013, 2014 and 2015. The intrinsic value of options exercised, determined as of the date of option exercise, was US$594, US$1,565 and US$3,688 thousand in 2013, 2014 and 2015, respectively. As of December 31, 2015, total unrecognized compensation cost related to non-vested share-based compensation awards granted under the Company’s stock option plans, net of estimated forfeitures, was nil. The aggregate intrinsic value represents the total intrinsic value (the difference between the Company’s closing stock price on the last trading day of fiscal year 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. Intrinsic value will change in future periods based on the fair market value of the Company’s stock and the number of shares outstanding. The total cash received from employees as a result of employee stock option exercises were US$422, US$514 and US$494 thousand for the years ended December 31, 2013, 2014 and 2015, respectively. The related tax effect for stock-based compensation benefit (expense) were US$343 thousand, (US$24) thousand, and US$561 thousand for 2013, 2014 and 2015, respectively. The related tax effect for stock-based compensation expense for option and restricted stock units exercised during 2013, 2014 and 2015 was US$1,599 thousand, US$1,231 thousand and US$1,647 thousand, respectively. The related tax effect was determined using the applicable tax rates in jurisdictions to which this expense relates. Determining Fair Value The Company estimated the fair value of each option grant on the date of grant using the Black-Scholes option pricing model. The Black-Scholes option valuation model was developed for estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, the option valuation model requires the input of highly subjective assumptions, including the expected stock price volatility. Risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatilities are determined based on historical volatilities of the stock prices of the Company. Expected life represents the periods that the Company’s share-based awards are expected to be outstanding and was determined based on historical experience regarding similar awards, giving consideration to the contractual term of the share based awards. The dividend yield is zero for the options granted prior to 2013 as the Company has never declared or paid dividends on the ordinary shares or other securities prior to 2013. Restricted Stock Units A summary of the status of restricted stock units and changes is as follows: Number of Weighted Fair Weight Non-vested at January 1, 2013 7,018 2.68 Restricted stock units granted 1,893 3.13 Restricted stock units vested (4,867 ) 2.60 Restricted stock units forfeited (123 ) 2.60 Non-vested at December 31, 2013 3,921 2.90 0.43 Restricted stock units granted 1,923 5.13 Restricted stock units vested (3,640 ) 2.96 Restricted stock units forfeited (44 ) 4.92 Non-vested at December 31, 2014 2,160 4.90 0.31 Restricted stock units granted 2,000 6.83 Restricted stock units vested (2,003 ) 4.96 Restricted stock units forfeited (32 ) 5.85 Non-vested at December 31, 2015 2,125 6.65 0.73 As of December 31, 2015, there was US$5,112 thousand of total unrecognized compensation cost related to restricted stock units granted under the 2005 Plan and the 2015 Plan. Stock-based Compensation Expense The following table shows total stock-based compensation expense included in the Consolidated Statements of Income for the years ended December 31, 2013, 2014 and 2015. Year Ended December 31 2013 2014 2015 US$ US$ US$ Cost of sales 308 282 261 Research and development 6,351 6,773 6,565 Sales and marketing 2,197 1,746 1,790 General and administrative 1,406 1,546 1,802 10,262 10,347 10,418 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | 16. COMMITMENTS AND CONTINGENCIES FCI provided their employees with collateral for personal loans which is deposited at a designated bank and the amount deposited was US$455 thousand and US$425 thousand at December 31, 2014 and 2015, respectively. Such amounts were accounted for as restricted cash. Operating Leases The Company entered into various operating lease agreements for office space that expire on various dates through April 2019. The Company recognized rent expense for the years ended December 31, 2013, 2014 and 2015 of US$1,763 thousand, US$1,981 thousand and US$2,453 thousand, respectively. The minimum operating lease payments expected under these leases as of December 31, 2015 were US$1,771 thousand, US$786 thousand, US$580 thousand, US$184 thousand, and nil for the years ending December 31, 2016, 2017, 2018, 2019 and 2020, respectively. Litigation The Company is subject to legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. Although the outcome of such proceedings and claims cannot be predicted with certainty, management does not believe that the outcome of any of these matters will have a material adverse effect on our business, results of operations, financial position or cash flows. Any litigation, however, involves potential risk and potentially significant litigation costs, and therefore there can be no assurance that any litigation which is now pending or which may arise in the future would not have such a material adverse effect on our business, financial position, results of operations or cash flows. All American Semiconductor, Inc. (“All American” or “AASI”) was a former distributor for the Company. On April 25, 2007, All American filed for Chapter 11 bankruptcy protection. At the time of the filing, the Company had US$256 thousand of unpaid accounts receivable from All American. On April 17, 2009, SMI USA and related entities were named as defendants in an adversary proceeding filed by the AASI Creditor Liquidating Trust (“CLT”) in the bankruptcy case pending in the U.S. Bankruptcy Court for the Southern District of Florida. The CLT was seeking the return of allegedly avoidable transfers in the amount of US$854 thousand. The Company filed answer and affirmative defenses. In March 2010, SMI USA settled with the CLT by paying the amount of US$220 thousand and on April 1, 2010, the Bankruptcy Court granted the motion to approve stipulations to compromise controversy. On August 23, 2010, the Court entered an order dismissing the adversary proceeding. In June 2011, Liquidating Trustee for the CLT filed the AASI Creditor Liquidating Trustee’s Seventeenth Omnibus Objection to Claims but in August 2011, withdrew it with respect to SMI USA’s proof of claim. According to the CLT’s letter dated September 9, 2011, it was finalizing its claims review process and preparing for distribution to beneficiaries who are holders of allowed claims and have rights to a distribution pursuant to the bankruptcy plan. In January 2012, January 2014, December 2014, July 2015 and October 2015, the Company received distributions of US$21 thousand, US$36 thousand, US$12 thousand, US$51 thousand and US$31 thousand, respectively. On March 29, 2016, we received a final distribution of US$112 thousand. In 2006, FCI joined with other technology companies and invested in the Pangyo Silicon Park Construction Project Cooperative (“Pangyo Cooperative”) in Korea. In July 2010, FCI, TLi Inc. (“TLI”), OCI Materials Co., Ltd (“OCI”) and other companies withdrew from the Pangyo Cooperative and forfeited 10% of their total investment. FCI believes its loss was caused by bad will actions taken by TLI. In December 2011, FCI and OCI together filed a complaint against TLI at the Suwon District Court in Korea. In April 2013, the court dismissed the plaintiffs’ complaints. The plaintiffs have decided not to appeal the court’s decision. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information | 17. SEGMENT INFORMATION The Company designs, develops and markets high performance, low-power semiconductor products for the multimedia consumer electronics market. The Company currently operates as one reportable segment. The chief operating decision maker is the Chief Executive Officer. The Company groups its products into three categories, based on the markets in which they may be used. The following summarizes the Company’s revenue by product category: Year Ended December 31 2013 2014 2015 US$ US$ US$ Mobile Storage 185,488 241,614 302,910 Mobile Communications 31,022 40,034 50,896 Others 8,798 7,675 7,491 225,308 289,323 361,297 Revenue is attributed to a geographic area based on the bill-to location. The following summarizes the Company’s revenue by geographic area: Year Ended December 31 2013 2014 2015 US$ US$ US$ Taiwan 47,653 57,244 71,387 United States 22,528 26,265 39,558 Japan 3,936 11,180 19,636 Korea 115,287 150,557 150,118 China 29,129 35,008 69,623 Others 6,775 9,069 10,975 225,308 289,323 361,297 Major customers representing at least 10% of net sales Year Ended December 31 2013 2014 2015 US$ % US$ % US$ % SK Hynix 67,977 30 107,227 37 108,645 30 Samsung 36,037 16 30,065 10 * * * Less than 10% Long-lived assets (property and equipment, net) by geographic area were as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Taiwan 24,066 28,739 32,014 United States 54 142 274 Korea 1,773 2,477 1,891 China 4,266 4,163 16,268 Japan 36 16 22 30,195 35,537 50,469 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement | 18. FAIR VALUE MEASUREMENT The following section describes the valuation methodologies the Company uses to measure assets and liabilities at fair value. The Company uses quoted prices in active markets for identical assets to determine fair value where applicable. This pricing methodology applies to Level 1 investments such as bond funds. For the years ended December 31, 2014 and 2015, none of the Company’s assets measured on a recurring basis was determined by using significant unobservable inputs. The following table presents our assets measured at fair value on a recurring basis as of December 31, 2014 and 2015: December 31, 2014 Level 1 Level 2 Level 3 Total US$ US$ US$ US$ Assets Short-term investments — trading bond funds 703 — — 703 December 31, 2015 Level 1 Level 2 Level 3 Total US$ US$ US$ US$ Assets Short-term investments — trading bond funds 681 — — 681 The carrying amount of the held-to-maturity investments purchased in July 2015 that will be matured in July 2016 approximates their fair value due to the short-term maturity of the investments. Those assets required to be measured at fair value on a nonrecurring basis were nil during the years ended December 31, 2013, 2014 and 2015 and please refer to Note 2, “Summary of Significant Accounting Policy” and Note 10, “Goodwill and Acquired Intangible Assets” for the significant assumption were used. The Company reviews the carrying values of financial assets carried at cost when impairment indicators are present. The fair values of assets without quoted market price are determined based on management judgment with the best available information. Any impairment charge determined is based on the difference between the Company’s carrying value and the proportionate ownership of the investee’s net assets at year end. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The consolidated financial statements include the accounts of SMTC and its wholly-owned subsidiaries. The Company owns 100% of the outstanding shares in all of its subsidiaries, except for FCI which the Company owns over 99.9%. All significant intercompany balances and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. The actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investment in debt securities and accounts receivable. Cash is deposited with high credit-quality financial institutions. For accounts receivable, the Company performs ongoing credit evaluations of its customers’ financial condition and the Company maintains an allowance for doubtful accounts receivable based upon a review of the expected collectibility of individual accounts. The Company sells the semiconductor solutions to leading OEMs and module makers, worldwide. Most of the Company’s solid state storage controllers are supplied to NAND flash manufacturers. The Company is the leading merchant supplier of controllers used in client SSD for PCs and eMMC used in smartphones and a leading supplier of controllers used in flash memory cards and USB flash drives. The Company provides the specialty RF ICs primarily to Samsung and other OEMs. Sales to two customers in 2013 and 2014, and one customer in 2015 accounted for 10% or more of the Company’s net sales, represented 46%, 47% and 30% of the Company’s net sales in 2013, 2014 and 2015, respectively. In 2013 and 2014, the significant customers were Samsung and SK Hynix and in 2015, SK Hynix. The Company’s top ten customers in 2013, 2014 and 2015 accounted for approximately 76%, 76% and 72% of net sales. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of the Company’s financial instruments, including cash and cash equivalents, notes and accounts receivable and notes and accounts payables approximates fair value due to the short-term maturity of the instruments. Fair values of short-term investments represent quoted market prices, if available. If no quoted market prices are available, fair values are estimated based on discounted cash flow, or other valuation techniques. Long-term investments are privately-held companies where there is no readily determinable market value and are recorded using the cost method, since the cost of obtaining verifiable fair value is unreasonably high. The Company periodically evaluates these investments for impairment. If it is determined that an other-than-temporary decline has occurred in the carrying value, an impairment loss is recorded for that period. The Company’s long-term liabilities approximate their fair values as they contain interest rates that vary according to market interest rates. Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that assets or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the Company. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 — Use unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Use observable inputs other than Level 1 prices such as quoted prices for identical or similar instruments in markets that are not active, quoted prices for similar instruments in active markets, and model-based valuation in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Use inputs that are generally unobservable and reflect the use of significant management judgments and estimates. See Note 18, “Fair Value Measurement”, for the related disclosure. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments to be cash equivalents. |
Short-term Investments | Short-term Investments The Company’s short-term investments are short-term income yielding investments with original maturities greater than three months from the purchase date and remaining maturities less than one year. These short-term investments consist primarily of bond funds that are bought and held principally for the purpose of selling them in the near term and are classified as trading securities, structured notes designated at the fair value and senior notes classified as held-to-maturity investment with maturities less than one year. Trading securities and structured notes are reported at fair value with the subsequent changes in fair value recorded in earnings as unrealized gains and losses. Senior notes are measured at amortized cost using the effective interest method less any impairment. |
Allowance for Doubtful Receivables | Allowance for Doubtful Receivables An allowance for doubtful receivables is provided based on a review of the collectability of accounts receivables. The Company determines the amount of allowance for doubtful receivables by examining the historical collection experience and current trends in the credit quality of its customers as well as its internal credit policies. |
Inventories | Inventories Inventories are stated at the lower of cost or market value. Inventories are recorded at standard cost and adjusted to the approximate weighted-average cost at the balance sheet date. Market value represents the current replacement cost for raw materials, work in process and finished goods. The Company assesses its inventory for estimated obsolescence or unmarketable inventory based upon management’s assumptions about future demand and market conditions. In estimating reserves for obsolescence, the Company primarily evaluates estimates based on the timing of the introduction of new products and the quantities remaining of old products and provides reserves for inventory on hand in excess of the estimated demand. Estimated losses on slow-moving items are recognized and included in the allowance for losses. |
Long-term Investments | Long-term Investments The Company has long-term investments in companies that it does not exercise significant influence and accounts for these investments under the cost method. Management regularly evaluates financial information related to these investments to determine whether an other than temporary decline in their value exists. Factors indicative of an other than temporary decline include recurring operating losses, credit defaults and subsequent rounds of financings at an amount below the cost basis of the investment. Management periodically weighs all quantitative and qualitative factors in determining if any impairment loss exists. When a decline in value is deemed to be other-than-temporary, the Company recognizes an impairment loss in other income and expense. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Significant additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Depreciation is computed using the straight-line method over estimated useful lives that range as follows: buildings — 25 to 50 years; machinery and equipment — 3 to 6 years; furniture and fixtures — 3 to 8 years; software — 1 to 5 years; leasehold and buildings improvement — the shorter of the estimated useful life or lease term, which is generally 2 to 6 years. Depreciation expense recognized for the years ended December 31, 2013, 2014 and 2015 was approximately US$6,429 thousand, US$6,917 thousand and US$7,936 thousand, respectively. Upon the sale or other disposal of property and equipment, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is credited or charged to operating income. |
Government Grants | Government Grants Grants received by the Company from the Korean government to assist with specific research and development activities are deducted from those research and development costs incurred, in the period in which the related expenses are incurred, to the extent that they are non-refundable. Government grants that were used for the acquisition of fixed assets are deducted from the acquisition costs of the acquired assets and amortized over the useful lives of the related assets. The Company recognizes refundable government grants as long-term payable and current portion of long-term payable on its consolidated balance sheet. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the excess of the purchase price paid over the fair value of the net tangible and intangible assets acquired in a business combination. Intangible assets, which consist primarily of development technology, are amortized over their estimated useful lives, of 3.5 to 4.5 years. |
Impairment of Goodwill and Long-Lived Assets | Impairment of Goodwill and Long-Lived Assets The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. Estimates of undiscounted cash flows may differ from actual cash flows due to, among other things, technological changes, economic conditions, changes to the business model or changes in operating performance. If the sum of the undiscounted cash flows is less than the carrying value, an impairment loss is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined by reference to quoted market prices, if available, or discounted cash flows, as appropriate. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing in fiscal year 2013, 2014 and 2015. The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or sooner if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company conducts its annual impairment test of goodwill on November 30. Reporting units may be operating segments as a whole or an operation one level below an operating segment, referred to as a component. Goodwill impairment is tested using a two-step approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchases price over the amounts assigned to assets and liabilities. Estimating fair value is performed by utilizing various valuation approaches, such as income approach or market approach. The total of all reporting unit fair values was also compared to the Company’s market capitalization plus control premium for reasonableness. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing. |
Other Assets | Other Assets Other assets primarily consist of industrial property right and deposits for office leases. |
Restricted Assets | Restricted Assets Restricted assets consist of deposits required for litigation and restricted cash. Restricted cash represents cash set aside as collateral for obtaining capacity and borrowings as well as cash received from government grants with restriction on its usage. |
Other Long-Term Liabilities | Other long-term liabilities Other long-term liabilities primarily consist of payable to former shareholders of Shannon Systems and unrecognized tax benefit. |
Pension Costs | Pension Costs For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees’ individual pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on actuarial calculations. |
Revenue Recognition | Revenue Recognition Revenue from product sales is generally recognized upon shipment to the customer provided that the Company has received a signed purchase order, the price is fixed or determinable, transfer of title has occurred in accordance with the shipping terms specified in the arrangement with the customer, collectibility from the customer is considered reasonably assured, product returns are reasonably estimable and there are no remaining significant obligations or customer acceptance requirements. Revenue on development service orders is generally recognized upon completion and customer acceptance of contractually agreed milestones. The Company grants certain distributors limited rights of return and price protection rights on unsold products. The return rights are generally limited to five percent of the monetary value of products purchased within the preceding six months, provided that the distributor places a corresponding restocking order of equal or greater value. An allowance for sales returns for distributors and all customers is recorded at the time of sale based on historical returns information available, management’s judgment and any known factors at the time the financial statements are prepared that would significantly affect the allowance. Price protection rights are based on the inventory products the distributors have on hand at the date the price protection is offered. A reserve for price adjustments is recorded based on the estimated products on hand at the distributors and historical experience. The Company incurred actual price adjustments to distributors are minimal. The Company provides a warranty period of one year for manufacturing defects of its products. Warranty returns have been infrequent and relate to defective or off-specification parts. The Company estimates a reserve for warranty based on historical experience and records this amount to cost of sales. For the years ended December 31, 2013, 2014 and 2015, the Company did not experience significant costs associated with warranty returns. |
Research and Development | Research and Development Research and development costs consist of expenditures incurred during the course of planned research and investigation aimed at the discovery of new knowledge that will be useful in developing new products or at significantly enhancing existing products as well as expenditures incurred for the design and testing of product alternatives. All expenditures related to research and development activities of the Company are charged to operating expenses when incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. |
Income Taxes | Income Taxes The provision for income tax represents income tax paid and payable for the current year plus the changes in the deferred income tax assets and liabilities during the years. Deferred income tax assets are recognized for net operating loss carryforwards, research and development credits, and temporary differences. The Company believes that uncertainty exists regarding the realizability of certain deferred income tax assets and, accordingly, has established a valuation allowance for those deferred income tax assets to the extent the realizability is not deemed to be more likely than not. Deferred income tax assets and liabilities are measured using enacted tax rates. The Company has classified deferred tax assets and liabilities as noncurrent on the consolidated balance sheets as of December 31, 2015 and 2014 as the Company has early adopted Accounting Standards Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes, on a retrospective basis. The Company utilizes a two step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained in a dispute with taxing authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. SMI Taiwan, the Company’s largest operating company is a Taiwan registered company. Under Taiwan tax regulations, the current year’s earnings, on an after tax basis, that are not distributed in the following year are subject to a 10% surtax income tax. This 10% surtax income tax is recognized in the period during which the related earnings are generated. The Taiwan government enacted the Income Basic Tax Act (“the IBT Act”), which became effective on January 1, 2006. The alternative minimum tax (“AMT”) imposed under the IBT Act is a supplemental tax levied at a rate of 10% which is payable if the income tax payable determined pursuant to the Income Tax Law is below the minimum amount prescribed under the IBT Act. The taxable income for calculating the AMT includes most of the income that is exempted from income tax under various laws and statutes. The Company has considered the impact of the IBT Act in the determination of its tax liabilities. Under the IBT Act amended in August 2012, the standard deduction and the tax rate of AMT were amended from NT$1,000 thousand to be NT$500 thousand and from 10% to 12%, respectively. The amended IBT Act is effective on January 1, 2013. |
Foreign Currency Transactions | Foreign Currency Transactions Foreign currency transactions are recorded at the rates of exchange in effect when the transaction occurs. Gains or losses, resulting from the application of different foreign exchange rates when cash in foreign currency is converted into the entities’ functional currency, or when foreign currency receivables and payables are settled, are credited or charged to income in the period of conversion or settlement. At the balance sheet date, assets and liabilities denominated in foreign currencies are remeasured based on prevailing exchange rates and any resulting gains or losses are credited or charged to income. |
Translation of Foreign Currency Financial Statements | Translation of Foreign Currency Financial Statements The reporting currency of the Company is the U.S. dollars. The functional currency of some of the Company’s subsidiaries is the local currency of the respective entity. Accordingly, the financial statements of the foreign subsidiaries were translated into U.S. dollars at the following exchange rates: assets and liabilities — current rate on the balance sheet date; shareholders’ equity — historical rates; income and expenses — average rate during the period. The resulting translation adjustment is recorded as a separate component of comprehensive income. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income and loss represents net income (loss) plus the results of certain changes in shareholders’ equity during a period from non-owner sources. The following table presents the components of accumulated other comprehensive income (loss) as of December 31, 2013, 2014 and 2015: Year Ended December 31, 2013 Year Ended December 31, 2014 Year Ended December 31, 2015 US$ US$ US$ Foreign currency items Defined benefit pension plans Accumulated other comprehensive income (loss) Foreign currency items Defined benefit pension plans Accumulated other comprehensive income (loss) Foreign currency items Defined benefit pension plans Accumulated other comprehensive income (loss) Beginning balance 3,923 (258 ) 3,665 4,556 (461 ) 4,095 3,354 (849 ) 2,505 Current-period change 633 (203 ) 430 (1,202 ) (388 ) (1,590 ) (1,868 ) (4 ) (1,872 ) Ending balance 4,556 (461 ) 4,095 3,354 (849 ) 2,505 1,486 (853 ) 633 |
Legal Contingencies | Legal Contingencies The Company is currently involved in various claims and legal proceedings. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to the pending claims and litigation and revises these estimates as appropriate. Such revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position. |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed by dividing net earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if stock options and other dilutive securities were exercised. Dilutive securities are excluded from the computation of the diluted income per share in periods when their effect is anti-dilutive. The Company’s dilutive securities consist of employee stock options and restricted stock units. The effect of dilutive securities including employee stock options and restricted stock units were 2,308 thousand shares (577 thousand ADSs), 2,183 thousand shares (546 thousand ADSs) and 1,534 thousand shares (384 thousand ADSs) for the years ended December 31, 2013, 2014 and 2015, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718 Compensation — Stock Compensation. The Company uses the Black-Scholes valuation model for the valuation of stock options and recognizes compensation expense on a straight-line basis over the requisite service period of the award. The value of our restricted stock units is based on the fair value of our shares on the date of grant and expensed over the vesting period. Prior to the initial declaration of a quarterly cash dividend on January 22, 2013, the fair value of restricted stock units (“RSUs”) was measured based on the grant date share price, as the Company did not historically pay cash dividends on our common stock. For awards granted on or subsequent to January 22, 2013, the fair value of RSUs was measured based on the grant date share price, less the present value of expected dividends during the vesting period, discounted at a risk-free interest rate. |
Treasury Stock | Treasury Stock Treasury stock is stated at cost and shown as a reduction to shareholders’ equity. The Company retires ordinary shares repurchased under a share repurchase plan. Accordingly, upon retirement the excess of the purchase price over par value is allocated between additional paid-in capital and retained earnings based on the average issuance price of the shares repurchased. A repurchase of ADSs is recorded as treasury stock until the Company completes the withdrawal of the underlying ordinary shares from the ADS program. |
Dividends | Dividends Our Board of Directors declared payment of our first quarterly dividend on our common stock in January 2013 and the first dividend payment was made on March 4, 2013. Our Board of Directors has subsequently declared and paid dividends in each successive quarter. On November 2, 2015, our Board of Directors, instead of declaring a quarterly dividend, declared an annual dividend payable in four quarterly installments. The payment of future cash dividends are subject to the Board’s continuing determination that the payment of dividends are in the best interests of the Company’s shareholders and are in compliance with all laws and agreements of the Company applicable to the declaration and payment of cash dividends. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 10, 2014, the FASB issued an accounting update, which changes the criteria for reporting discontinued operations for all public and nonpublic entities. The guidance requires only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. The guidance also requires entities 1) to expand their disclosures about discontinued operations to include more information about assets, liabilities, income, and expenses and 2) to disclose the pre-tax income attributable to a disposal of “of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements.” The guidance is effective for fiscal years beginning after December 15, 2014 and early adoption is prohibited. The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or cash flow. In May 2014, the FASB issued a new standard related to revenue recognition. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an amendment to defer the effective date. The new standard is effective for fiscal years beginning after December 15, 2017 and early adoption is permitted for annual reporting periods beginning after December 15, 2016. In March and April 2016, the FASB issued two accounting updates to clarify the implementation guidance on principal versus agent considerations, performance obligations and the licensing. The new guidance is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The Company is in the process of evaluating this guidance to determine the impact it will have on the consolidated financial statements. In June 2014, the FASB issued an accounting update, which clarifies the accounting for share-based payments. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. The guidance is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In August 2014, the FASB issued new standard related to the presentation of financial statements when there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for fiscal years beginning after December 15, 2016 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In February 2015, the FASB issued an accounting update to amend the consolidation analysis. All legal entities are subject to reevaluation under the revised consolidation model. The amendment is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In April 2015, the FASB issued an accounting update regarding the measurement date of a defined benefit obligation and plan assets. The amendment permits the entity with a fiscal year-end that does not coincide with a month-end to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end. If a contribution or significant event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. This amendment is effective for fiscal years beginning after December 15, 2016 and early application is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In May 2015, the FASB issued an accounting update regarding disclosures for investments that calculate net asset value per share. The amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. Instead, an entity is required to include those investments as a reconciling line item so that the total fair value amount of investments in the disclosure is consistent with the amount on the balance sheet. Further, the amendment removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using the practical expedient. The amendment is effective for fiscal years beginning after December 15, 2015. The amendment must be applied retrospectively and early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s financial statement disclosure. In July 2015, the FASB issued an accounting update to simplify the measurement of inventory. The amendment requires the measurement of inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendment applies to inventories for which cost is determined by methods other than the last-in first-out and the retail inventory methods. This amendment is effective prospectively for annual periods beginning after December 15, 2016 and early application is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s results of operations, financial position or cash flow. In September 2015, the FASB issued an accounting update regarding simplifying the accounting for measurement period adjustments attributable to an acquisition. The amendment requires an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The adjustments should reflect the impact on earnings of changes in depreciation, amortization, or other income effects, if any, as if the accounting had been completed as of the acquisition date. Additionally, amounts recorded in the current period that would have been reflected in prior reporting periods if the adjustments had been recognized as of the acquisition date must be disclosed either on the face of the income statement or in the notes to financial statements. This amendment is effective prospectively for annual periods beginning after December 15, 2015 and early application is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s financial condition, results of operations, cash flow and financial statement disclosures. In November 2015, the FASB issued an accounting update to simplify the presentation of deferred income taxes. The amendment requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this guidance. This amendment is effective prospectively or retrospectively for annual periods beginning after December 15, 2016 and early application is permitted. The Company has elected to adopt the amendment as of December 31, 2015, and the retrospective adoption is applied to prior reporting period presented. The adoption of this amendment did not have a material impact on the Company’s financial position. Prior to the adoption, noncurrent deferred income tax assets and current deferred income tax liabilities for the year ended December 31, 2014 are US$1,909 thousand and US$388 thousand, respectively. To early adopt ASU 2015-17, the Company has reclassified current deferred income tax liabilities of US$388 thousand to noncurrent deferred tax liabilities by presenting against the noncurrent deferred income tax assets of US$1,909 thousand. After the adjustment, the noncurrent deferred income tax assets are US$1,521 thousand as of December 31, 2014. In February 2016, the FASB issued a new standard regarding leases. The new standard requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases other than that the entity elects the short-term lease recognition and measurement exemption. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. This standard is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. The Company is in the process of evaluating this guidance to determine the impact it will have on the consolidated financial statements. In March 2016, the FASB issued an accounting update to simplify several aspects of the accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment is effective for fiscal years beginning after December 15, 2016, and earlier adoption is permitted. The Company is currently evaluating the impact that the adoption will have on its results of operations, financial position, cash flow and disclosures. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table presents the components of accumulated other comprehensive income (loss) as of December 31, 2013, 2014 and 2015: Year Ended December 31, 2013 Year Ended December 31, 2014 Year Ended December 31, 2015 US$ US$ US$ Foreign currency items Defined benefit pension plans Accumulated other comprehensive income (loss) Foreign currency items Defined benefit pension plans Accumulated other comprehensive income (loss) Foreign currency items Defined benefit pension plans Accumulated other comprehensive income (loss) Beginning balance 3,923 (258 ) 3,665 4,556 (461 ) 4,095 3,354 (849 ) 2,505 Current-period change 633 (203 ) 430 (1,202 ) (388 ) (1,590 ) (1,868 ) (4 ) (1,872 ) Ending balance 4,556 (461 ) 4,095 3,354 (849 ) 2,505 1,486 (853 ) 633 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: US$ Cash and cash equivalents 1,903 Accounts receivable, net 946 Inventories 2,624 Other current assets 289 Property and equipment 71 Goodwill 33,204 Identifiable intangible assets 8,381 Accounts payable (644 ) Accrued expenses and other current liabilities (1,209 ) Net assets acquired 45,565 |
Identifiable Intangible Assets and Useful Lives | The identifiable intangible assets and respective useful lives are as follows: US$ Useful Life Developed technology 3,789 3.5 In-process research and development (“IPR&D”) 4,592 indefinite Total identifiable intangible assets 8,381 |
Results of Shannon Included on Consolidated Statement of Income | The results of Shannon Systems since the acquisition date included on the consolidated statement of income for the year ended December 31, 2015 were as follows: US$ Net sales 9,049 Net income 421 |
Unaudited Proforma Information of Summary of Results of Operations | The following unaudited pro forma information represents a summary of the results of operations as if the acquisition occurred on January 1, 2014 and 2015 and includes certain pro forma adjustments, including amortization of identifiable intangibles from that date (in thousands except earnings per share): Year Ended December 31 2014 2015 Net sales 293,562 364,670 Net income 42,483 58,468 Earnings per share Basic 0.31 0.42 Diluted 0.31 0.42 Weighted average ordinary shares outstanding (thousand) Basic 136,164 138,880 Diluted 138,347 140,414 |
Cash And Cash Equivalents (Tabl
Cash And Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Details of Cash and Cash Equivalents | December 31 2014 2015 US$ US$ Cash and deposits in bank 38,851 28,780 Time deposits 155,360 151,739 194,211 180,519 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Short Term Investments | December 31 2014 2015 US$ US$ Trading securities 703 681 Held-to-maturity investments — 4,000 703 4,681 |
Notes and Accounts Receivable (
Notes and Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Notes and Accounts Receivable | December 31 2014 2015 US$ US$ Notes receivable 192 16 Trade accounts receivable 31,256 61,293 31,448 61,309 Allowance for doubtful accounts (1,167 ) (775 ) Allowance for sales returns and discounts (1,427 ) (1,555 ) 28,854 58,979 |
Changes in Allowances | The changes in the allowances are summarized as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Allowances for doubtful accounts Balance, beginning of year 1,634 1,275 1,167 Reversals charged to expense, net (359 ) (108 ) (392 ) Write-offs — — — Balance, end of year 1,275 1,167 775 Year Ended December 31 2013 2014 2015 US$ US$ US$ Allowances for sales returns and discounts Balance, beginning of year 1,919 1,059 1,427 Additions charged to expense, net 1,320 1,600 1,753 Actual sales return and discount (2,180 ) (1,232 ) (1,625 ) Balance, end of year 1,059 1,427 1,555 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Inventory | The components of inventories are as follows: December 31 2014 2015 US$ US$ Finished goods 9,787 13,860 Work in process 20,835 21,201 Raw materials 13,454 12,049 44,076 47,110 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Investments with Carrying Value | As of December 31, 2014 and 2015, the Company held equity investments in several privately-held companies with the carrying value as follows: Percentage of Ownership December 31 2014 2015 2014 2015 US$ US$ Cost method: Cashido Corp. (Cashido) 2.1 % 2.1 % 104 104 Vastview Technology, Corp. (Vastview) 2.9 % 2.9 % 29 29 133 133 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment | December 31 2014 2015 US$ US$ Cost: Land 8,058 8,813 Buildings 19,813 21,254 Machinery and equipment 13,443 15,995 Furniture and fixtures 5,131 6,446 Leasehold and buildings improvement 4,229 4,656 Software 29,796 17,505 Total 80,470 74,669 Accumulated depreciation: Buildings 2,240 2,648 Machinery and equipment 10,573 11,983 Furniture and fixtures 3,492 3,980 Leasehold and buildings improvement 3,064 3,358 Software 25,807 14,421 45,176 36,390 Prepayment and construction in progress 243 12,190 35,537 50,469 |
Goodwill and Acquired Intangi36
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets Acquired from Acquisition | The intangible assets acquired from the Company’s acquisition of FCI and Centronix in 2007 and Shannon Systems in 2015 are as follows: December 31 2014 2015 US$ US$ Cost Accumulated Impairment Accumulated Amortization Net Carrying Amount Cost Accumulated Impairment Accumulated Amortization Net Carrying Amount Core technology 15,809 (4,474 ) (11,335 ) — 15,809 (4,474 ) (11,335 ) — Customer relationship 8,325 — (8,325 ) — 8,325 — (8,325 ) — Order backlog 1,243 — (1,243 ) — 1,243 — (1,243 ) — Developed technology — — — — 8,381 — (1,051 ) 7,330 Total 25,377 (4,474 ) (20,903 ) — 33,758 (4,474 ) (21,954 ) 7,330 |
Carrying Value of Goodwill | December 31 2014 2015 US$ US$ Cost Accumulated Impairment Foreign Currency Adjustment Net Carrying Amount Cost Accumulated Impairment Foreign Currency Adjustment Net Carrying Amount Goodwill 66,300 (30,808 ) (25 ) 35,467 99,504 (30,808 ) (36 ) 68,660 |
Accrued Expenses and Other Cu37
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses and Other Current Liabilities | December 31 2014 2015 US$ US$ Wages and bonus 12,093 20,365 Dividends 153 15,839 Research and development payable 2,468 2,953 License fees and royalties 2,982 4,173 Professional fees 1,714 2,126 Equipment 1,170 1,285 Others 3,066 5,340 23,646 52,081 |
Pension Plan (Tables)
Pension Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Change in Benefits Obligation and Plan Assets and Reconciliation of Funded Status | The changes in benefits obligation and plan assets and the reconciliation of funded status are as follows: December 31 2013 2014 2015 US$ US$ US$ Change in benefit obligation Projected benefit obligation at beginning of year 1,897 2,098 3,320 Service cost 440 437 273 Interest cost 58 58 57 Actuarial loss(gain) (202 ) 814 79 Benefits paid (95 ) (87 ) (97 ) Projected benefit obligation at end of year 2,098 3,320 3,632 Change in plan assets Fair value of plan assets at beginning of year 1,925 2,319 2,556 Actual return on plan assets 43 31 33 Employer contributions 433 282 328 Benefits paid (82 ) (76 ) (117 ) Fair value of plan assets at end of year 2,319 2,556 2,800 Funded status recognized as an other asset (liabilities) 221 (764 ) (832 ) |
Amounts Recognized in Accumulated Other Comprehensive Income | Amounts recognized in accumulated other comprehensive income consist of the following: Year Ended December 31 2013 2014 2015 US$ US$ US$ Net loss 460 848 852 Transition obligation 1 1 1 Total recognized in accumulated other comprehensive income 461 849 853 |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Service cost 440 437 273 Interest cost 58 58 57 Projected return on plan assets (47 ) (51 ) (47 ) Amortization of unrecognized net transition obligation and unrecognized net actuarial gain (3 ) (19 ) 27 Net periodic benefit cost 448 425 310 |
Other Changes in Plan Assets And Benefit Obligation Recognized In Other Comprehensive Loss | Other changes in plan assets and benefit obligation recognized in other comprehensive loss: 2013 2014 2015 US$ US$ US$ Recognize the decrease in net gain 203 388 4 Amortization of net gain — — — Total recognized in other comprehensive loss 203 388 4 |
Expected Benefit Payments | Expected benefit payments: US$ 2016 146 2017 290 2018 175 2019 140 2020 120 2021 and thereafter 748 |
Actuarial Assumptions to Determine Benefit Obligations | The actuarial assumptions to determine the benefit obligations were as follows: 2013 2014 2015 Taiwan Korea Taiwan Korea Taiwan Korea Weighted-average assumptions used to determine benefit obligations: Discount rate 1.88 % 5.20 % 2.00 % 4.10 % 1.75 % 3.90 % Rate of compensation increase 4.25 % 2.60 % 4.25 % 5.00 % 4.25 % 4.00 % Weighted-average assumptions used to determine net projected benefit cost: Discount rate 1.88 % 5.20 % 2.00 % 4.10 % 1.75 % 3.90 % Expected long-term return on plan assets 2.00 % 3.00 % 2.00 % 2.00 % 2.00 % 1.20 % Rate of compensation increase 4.25 % 2.60 % 4.25 % 5.00 % 4.25 % 4.00 % |
Fair Values Of FCI's Pension Plan Assets | The fair values of FCI’s pension plan assets at December 31, 2014 and 2015 are as follows: December 31 2014 2015 US$ US$ Guaranteed interest contract Kyobo Life Insurance Co. Ltd. 730 823 Fixed deposit Industrial Bank of Korea 875 980 1,605 1,803 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Components of Income Tax Expense | The components of income tax expense are as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Current 8,591 15,630 17,338 Deferred 1,181 471 911 Income tax expense 9,772 16,101 18,249 |
Income (Loss) Before Income Taxes for Domestic and Foreign Entities | The income (loss) before income taxes for domestic and foreign entities is as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Domestic (8,080 ) (12,761 ) (12,037 ) Foreign 45,228 73,329 90,537 37,148 60,568 78,500 |
Reconciliation of Income Tax Expense on Pretax Income at Statutory Rate and Income Tax Expense | The Company and its subsidiaries file separate income tax returns. A reconciliation of income tax expense on pretax income at statutory rate and income tax expense is shown below: Year Ended December 31 2013 2014 2015 US$ US$ US$ Cayman statutory rate — — — Tax on pretax income at statutory rate 6,788 15,727 18,765 Tax-exempt income (4,325 ) (2,573 ) (906 ) Permanent differences 1,730 (396 ) (1,065 ) Temporary differences 1,732 (344 ) (330 ) Alternative minimum tax 2,203 1,170 4 Income tax (10%) on undistributed earnings 3,396 2,491 2,460 Net changes in income tax credit 708 (899 ) (897 ) Net changes in valuation allowance of deferred income tax assets (2,364 ) 733 1,621 Net operating loss carryforwards (189 ) (1,298 ) (2,052 ) Liabilities related to unrealized tax benefits (39 ) 91 672 Adjustment of prior years’ taxes and others 132 1,399 (23 ) Income tax expense 9,772 16,101 18,249 |
Deferred Income Tax Assets (Liabilities) | Deferred income tax assets (liabilities) are as follows: December 31 2014 2015 As Adjusted (Note 2) US$ US$ Notes and accounts receivable 141 82 Stock-based compensation 615 544 Allowance for sales return 105 173 Inventory reserve 814 1,478 Foreign currency translation (1,273 ) (1,949 ) Property and equipment 452 360 Investment tax credits 7,823 8,295 Net operating loss carryforwards 9,621 10,651 Others 14 20 Valuation allowance (16,791 ) (19,044 ) 1,521 610 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Balance, beginning of year 3,520 5,815 4,655 Increases in tax positions taken in current year 2,947 446 2,337 Decrease in tax position taken in prior year primarily related to the resolution of tax audit (652 ) (1,606 ) (1,353 ) Balance, end of year 5,815 4,655 5,639 |
Summary of Major Jurisdictions and Tax Year Subject to Examination by Tax Authorities | The following table summarizes the Company’s major jurisdictions and tax year that remain subject to examination by tax authorities as of December 31, 2015: Tax Jurisdiction Tax Years Hong Kong 2013 and onward Taiwan 2010 and onward Korea 2010 and onward United States 2007 onward |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash Dividends Declared Per Ordinary Share | The Company declared cash dividends per ordinary share during the periods presented as follows: 2014 2015 Dividends Per Share (US$) Amount (in US$ thousands) Dividends Per Share (US$) Amount (in US$ thousands) First quarter $ 0.0375 $ 5,056 $ 0.0375 $ 5,156 Second quarter $ 0.0375 5,060 $ 0.0375 5,166 Third quarter $ 0.0375 5,081 $ 0.0375 5,230 Fourth quarter $ 0.0375 5,084 $ 0.0375 5,232 $ 20,281 $ 20,784 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Plan Includes Stock Options and Restricted Stock Units | The following is a summary of, the 2005 Plan and the 2015 Plan, which includes stock options and restricted stock units: Unit Available for grant at January 1, 2013 5,336 Restricted stock units granted (1,893 ) Option and restricted stock units forfeited 123 Available for grant at December 31, 2013 3,566 Restricted stock units granted (1,923 ) Option and restricted stock units forfeited 44 Available for grant at December 31, 2014 1,687 Authorized 20,000 Restricted stock units granted (2,000 ) Option and restricted stock units forfeited 175 Available for grant at December 31, 2015 19,862 |
Summary of Stock Option Activity | A summary of the stock option activity and related information is as follows: Number of Shares Weighted Weighted (Years) Outstanding at January 1, 2013 1,697 1.47 Options forfeited — — Options exercised (287 ) 1.47 Outstanding at December 31, 2013 1,410 1.47 2.14 Options vested and expected to vest after December 31, 2013 1,410 1.47 2.14 Options forfeited — — Options exercised (352 ) 1.46 Outstanding at December 31, 2014 1,058 1.47 1.35 Options vested and expected to vest after December 31, 2014 1,058 1.47 1.35 Options forfeited (143 ) 1.47 Options exercised (336 ) 1.47 Outstanding at December 31, 2015 579 1.47 0.92 Options vested and expected to vest after December 31, 2015 579 1.47 0.92 Options exercisable at December 31, 2015 579 1.47 0.92 |
Summary of Restricted Stock Units and Changes | A summary of the status of restricted stock units and changes is as follows: Number of Weighted Fair Weight Non-vested at January 1, 2013 7,018 2.68 Restricted stock units granted 1,893 3.13 Restricted stock units vested (4,867 ) 2.60 Restricted stock units forfeited (123 ) 2.60 Non-vested at December 31, 2013 3,921 2.90 0.43 Restricted stock units granted 1,923 5.13 Restricted stock units vested (3,640 ) 2.96 Restricted stock units forfeited (44 ) 4.92 Non-vested at December 31, 2014 2,160 4.90 0.31 Restricted stock units granted 2,000 6.83 Restricted stock units vested (2,003 ) 4.96 Restricted stock units forfeited (32 ) 5.85 Non-vested at December 31, 2015 2,125 6.65 0.73 |
Stock-based Compensation Expense | The following table shows total stock-based compensation expense included in the Consolidated Statements of Income for the years ended December 31, 2013, 2014 and 2015. Year Ended December 31 2013 2014 2015 US$ US$ US$ Cost of sales 308 282 261 Research and development 6,351 6,773 6,565 Sales and marketing 2,197 1,746 1,790 General and administrative 1,406 1,546 1,802 10,262 10,347 10,418 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Lived Assets (Property and Equipment, Net) by Geographic Area | Long-lived assets (property and equipment, net) by geographic area were as follows: Year Ended December 31 2013 2014 2015 US$ US$ US$ Taiwan 24,066 28,739 32,014 United States 54 142 274 Korea 1,773 2,477 1,891 China 4,266 4,163 16,268 Japan 36 16 22 30,195 35,537 50,469 |
Customer Lists | |
Net Sales | Major customers representing at least 10% of net sales Year Ended December 31 2013 2014 2015 US$ % US$ % US$ % SK Hynix 67,977 30 107,227 37 108,645 30 Samsung 36,037 16 30,065 10 * * * Less than 10% |
Product | |
Net Sales | The following summarizes the Company’s revenue by product category: Year Ended December 31 2013 2014 2015 US$ US$ US$ Mobile Storage 185,488 241,614 302,910 Mobile Communications 31,022 40,034 50,896 Others 8,798 7,675 7,491 225,308 289,323 361,297 |
Country | |
Net Sales | The following summarizes the Company’s revenue by geographic area: Year Ended December 31 2013 2014 2015 US$ US$ US$ Taiwan 47,653 57,244 71,387 United States 22,528 26,265 39,558 Japan 3,936 11,180 19,636 Korea 115,287 150,557 150,118 China 29,129 35,008 69,623 Others 6,775 9,069 10,975 225,308 289,323 361,297 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Assets Measured at Fair Value on Recurring Basis | The following table presents our assets measured at fair value on a recurring basis as of December 31, 2014 and 2015: December 31, 2014 Level 1 Level 2 Level 3 Total US$ US$ US$ US$ Assets Short-term investments — trading bond funds 703 — — 703 December 31, 2015 Level 1 Level 2 Level 3 Total US$ US$ US$ US$ Assets Short-term investments — trading bond funds 681 — — 681 |
Summary Of Significant Accoun44
Summary Of Significant Accounting Policies - Additional Information (Detail) shares in Thousands, TWD in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($)Customershares | Dec. 31, 2015TWDCustomershares | Dec. 31, 2014USD ($)Customershares | Dec. 31, 2013USD ($)Customershares | Dec. 31, 2012TWD | |
Significant Accounting Policies [Line Items] | |||||
Consolidated interest acquire in subsidiary | 100.00% | 100.00% | |||
Top ten customer sales in percentage | 72.00% | 72.00% | 76.00% | 76.00% | |
Number of customers accounted for 10% or more sales | Customer | 1 | 1 | 2 | 2 | |
Depreciation and amortization | $ 7,936 | $ 6,917 | $ 6,429 | ||
Warranty period for manufacturing defects of products | 1 year | 1 year | |||
Evaluation of tax benefits realized upon settlement | 50.00% | 50.00% | |||
Income tax under IBT act effective date | Jan. 1, 2006 | Jan. 1, 2006 | |||
Minimum alternative tax on income under IBT act | 10.00% | 10.00% | |||
Standard deduction tax amount | TWD | TWD 1,000 | ||||
Standard deduction tax rate | 10.00% | ||||
Deferred income tax liabilities, noncurrent | $ 0 | ||||
Deferred income tax assets, net | $ 610 | 1,521 | |||
Scenario, Previously Reported | |||||
Significant Accounting Policies [Line Items] | |||||
Deferred income tax assets, noncurrent | 1,909 | ||||
Deferred income tax liabilities, current | 388 | ||||
Scenario, Adjustment | |||||
Significant Accounting Policies [Line Items] | |||||
Deferred income tax liabilities, noncurrent | $ 388 | ||||
Customers accounted for 10% or more | Net sales | |||||
Significant Accounting Policies [Line Items] | |||||
Major customers percentage of net sales | 30.00% | 30.00% | 47.00% | 46.00% | |
Amended in August 2012 | |||||
Significant Accounting Policies [Line Items] | |||||
Standard deduction tax amount | TWD | TWD 500 | ||||
Standard deduction tax rate | 12.00% | 12.00% | |||
Amendment Effective Date | Jan. 1, 2013 | Jan. 1, 2013 | |||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Short term investment maturity period | 3 months | 3 months | |||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Short term investment maturity period | 1 year | 1 year | |||
Held-to-maturity investment maturity period | 1 year | 1 year | |||
American Depositary Shares | |||||
Significant Accounting Policies [Line Items] | |||||
The effect of dilutive securities of employee stock options and restricted stock units | shares | 384 | 384 | 546 | 577 | |
Ordinary Shares | |||||
Significant Accounting Policies [Line Items] | |||||
The effect of dilutive securities of employee stock options and restricted stock units | shares | 1,534 | 1,534 | 2,183 | 2,308 | |
Software | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 1 year | 1 year | |||
Software | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 5 years | 5 years | |||
Development technology | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible asset amortized over estimated useful lives | 3 years 6 months | 3 years 6 months | |||
Development technology | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Intangible asset amortized over estimated useful lives | 4 years 6 months | 4 years 6 months | |||
Buildings | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 25 years | 25 years | |||
Buildings | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 50 years | 50 years | |||
Machinery and Equipment | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 3 years | 3 years | |||
Machinery and Equipment | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 6 years | 6 years | |||
Furniture and Fixtures | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 3 years | 3 years | |||
Furniture and Fixtures | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 8 years | 8 years | |||
Leasehold And Building Improvement | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 2 years | 2 years | |||
Leasehold And Building Improvement | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property plant and equipment estimated useful life | 6 years | 6 years | |||
FCI | |||||
Significant Accounting Policies [Line Items] | |||||
Consolidated interest acquire in subsidiary | 99.90% | 99.90% |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, Foreign currency items | $ 3,354 | $ 4,556 | $ 3,923 |
Current-period change, Foreign currency items | (1,868) | (1,202) | 633 |
Ending balance, Foreign currency items | 1,486 | 3,354 | 4,556 |
Beginning balance, Defined benefit pension plans | (849) | (461) | (258) |
Current-period change, Defined benefit pension plans | (4) | (388) | (203) |
Ending balance, Defined benefit pension plans | (853) | (849) | (461) |
Beginning balance, Accumulated other comprehensive income (loss) | 2,505 | 4,095 | 3,665 |
Current-period change, Accumulated other comprehensive income (loss) | (1,872) | (1,590) | 430 |
Ending balance, Accumulated other comprehensive income (loss) | $ 633 | $ 2,505 | $ 4,095 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | Jul. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Consolidated interest acquire in subsidiary | 100.00% | ||
Other long-term liabilities | $ 12,765 | $ 6,084 | |
Shannon Systems | |||
Business Acquisition [Line Items] | |||
Consolidated interest acquire in subsidiary | 100.00% | ||
Business acquisition shares issued, shares | 1,560 | ||
Business acquisition shares issued, value | $ 7,640 | ||
Business acquisition, cash paid to acquire interest | 37,925 | ||
Business acquisition costs | 359 | ||
Shannon Systems | Other Noncurrent Liabilities | |||
Business Acquisition [Line Items] | |||
Other long-term liabilities | $ 5,735 |
Estimated Fair Values of Assets
Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Jul. 01, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 68,660 | $ 35,467 | |
Shannon Systems | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1,903 | ||
Accounts receivable, net | 946 | ||
Inventories | 2,624 | ||
Other current assets | 289 | ||
Property and equipment | 71 | ||
Goodwill | 33,204 | ||
Identifiable intangible assets | 8,381 | ||
Accounts payable | (644) | ||
Accrued expenses and other current liabilities | (1,209) | ||
Net assets acquired | $ 45,565 |
Identifiable Intangible Assets
Identifiable Intangible Assets and Useful Lives (Detail) - Shannon Systems $ in Thousands | Jul. 01, 2015USD ($) |
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |
Developed technology | $ 3,789 |
In-process research and development ("IPR&D") | 4,592 |
Total identifiable intangible assets | $ 8,381 |
Developed technology | 3 years 6 months |
In-process research and development ("IPR&D") | indefinite |
Results of Shannon Included on
Results of Shannon Included on Consolidated Statement of Income (Detail) - Shannon Systems $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Business Acquisition Information [Line Items] | |
Net sales | $ 9,049 |
Net income | $ 421 |
Unaudited Proforma Information
Unaudited Proforma Information of Summary of Results of Operations (Detail) - Shannon Systems - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales | $ 364,670 | $ 293,562 |
Net income | $ 58,468 | $ 42,483 |
Earnings per share | ||
Basic | $ 0.42 | $ 0.31 |
Diluted | $ 0.42 | $ 0.31 |
Weighted average ordinary shares outstanding (thousand) | ||
Basic | 138,880 | 136,164 |
Diluted | 140,414 | 138,347 |
Details of Cash and Cash Equiva
Details of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and deposits in bank | $ 28,780 | $ 38,851 | ||
Time deposits | 151,739 | 155,360 | ||
Cash and Cash Equivalents, at Carrying Value | $ 180,519 | $ 194,211 | $ 161,720 | $ 154,734 |
Short Term Investments (Detail)
Short Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Senior notes coupon rate | $ 681 | $ 703 |
Held-to-maturity investments | 4,000 | |
Short-term investments | $ 4,681 | $ 703 |
Short Term Investments - Additi
Short Term Investments - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Investments [Line Items] | ||||
Realized gains on sales of short-term investments, trading securities | $ 3 | $ 4 | $ 4 | |
Unrealized holding loss on short-term investment | $ 0 | 0 | $ 0 | |
Gain on structured notes | $ 118 | |||
Senior Notes | ||||
Gain (Loss) on Investments [Line Items] | ||||
Senior notes coupon rate | 1.65% | |||
Effective interest rate | 1.65% | |||
Par value | $ 4,000 | |||
Investment maturity date | 2016-07 | 2016-07 |
Summary of Notes and Accounts R
Summary of Notes and Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts and Other Receivables [Line Items] | ||||
Notes receivable | $ 16 | $ 192 | ||
Trade accounts receivable | 61,293 | 31,256 | ||
Trade Accounts And Notes Receivable Gross Current | 61,309 | 31,448 | ||
Allowance for doubtful accounts | (775) | (1,167) | $ (1,275) | $ (1,634) |
Allowance for sales returns and discounts | (1,555) | (1,427) | $ (1,059) | $ (1,919) |
Notes and accounts receivable, net | $ 58,979 | $ 28,854 |
Change in Allowances (Detail)
Change in Allowances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowances for doubtful accounts | |||
Balance, beginning of year | $ 1,167 | $ 1,275 | $ 1,634 |
Reversals charged to expense, net | (392) | (108) | (359) |
Write-offs | 0 | 0 | 0 |
Balance, end of year | 775 | 1,167 | 1,275 |
Allowances for sales returns and discounts | |||
Balance, beginning of year | 1,427 | 1,059 | 1,919 |
Additions charged to expense, net | 1,753 | 1,600 | 1,320 |
Actual sales return and discount | (1,625) | (1,232) | (2,180) |
Balance, end of year | $ 1,555 | $ 1,427 | $ 1,059 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Finished goods | $ 13,860 | $ 9,787 |
Work in process | 21,201 | 20,835 |
Raw materials | 12,049 | 13,454 |
Inventory, Net | $ 47,110 | $ 44,076 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory [Line Items] | |||
Inventory written down | $ 2,525 | $ 4,561 | $ 2,503 |
Equity Investments with Carryin
Equity Investments with Carrying Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Cost-method Investments [Line Items] | ||
Long-term investments | $ 133 | $ 133 |
Cashido Corp. (Cashido) | ||
Schedule of Cost-method Investments [Line Items] | ||
Long-term investments | $ 104 | $ 104 |
Equity Investments Percentage of Ownership | 2.10% | 2.10% |
Vastview Technology, Corp. (Vastview) | ||
Schedule of Cost-method Investments [Line Items] | ||
Long-term investments | $ 29 | $ 29 |
Equity Investments Percentage of Ownership | 2.90% | 2.90% |
Long-term Investment - Addition
Long-term Investment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | 48 Months Ended | |||
Feb. 28, 2007 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2010 | Dec. 31, 2014 | |
Schedule of Cost-method Investments [Line Items] | |||||||
Cost method investment impairments other than temporary | $ 0 | $ 0 | $ 0 | ||||
Vastview Technology, Corp. (Vastview) | |||||||
Schedule of Cost-method Investments [Line Items] | |||||||
Invested in common stock | $ 3,360 | ||||||
Cost method investment capital return | $ 46 | $ 808 | |||||
Recognized an impairment charges | $ 2,462 | $ 0 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 8,813 | $ 8,058 | |
Buildings | 21,254 | 19,813 | |
Machinery and equipment | 15,995 | 13,443 | |
Furniture and fixtures | 6,446 | 5,131 | |
Leasehold and buildings improvement | 4,656 | 4,229 | |
Software | 17,505 | 29,796 | |
Total | 74,669 | 80,470 | |
Accumulated Depreciation | 36,390 | 45,176 | |
Prepayment and construction in progress | 12,190 | 243 | |
Property, Plant and Equipment, Net | 50,469 | 35,537 | $ 30,195 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | 14,421 | 25,807 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | 2,648 | 2,240 | |
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | 11,983 | 10,573 | |
Furniture and Fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | 3,980 | 3,492 | |
Leasehold and buildings improvement | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | $ 3,358 | $ 3,064 |
Property And Equipment - Additi
Property And Equipment - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Operating Leased Assets [Line Items] | |
Operating leased renewal period of land and buildings | 3 years |
Net carrying value lease asset | $ 746 |
Annual lease and rental income | $ 41 |
Intangible Assets Acquired from
Intangible Assets Acquired from Acquisition (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets [Line Items] | ||
Accumulated Impairment | $ (30,808) | $ (30,808) |
FCI, Centronix and Shannon | ||
Intangible Assets [Line Items] | ||
Cost | 33,758 | 25,377 |
Accumulated Impairment | (4,474) | (4,474) |
Accumulated Amortization | (21,954) | (20,903) |
Net Carrying Amount | 7,330 | |
FCI, Centronix and Shannon | Core Technology | ||
Intangible Assets [Line Items] | ||
Cost | 15,809 | 15,809 |
Accumulated Impairment | (4,474) | (4,474) |
Accumulated Amortization | (11,335) | (11,335) |
FCI, Centronix and Shannon | Customer Relationships | ||
Intangible Assets [Line Items] | ||
Cost | 8,325 | 8,325 |
Accumulated Amortization | (8,325) | (8,325) |
FCI, Centronix and Shannon | Order backlog | ||
Intangible Assets [Line Items] | ||
Cost | 1,243 | 1,243 |
Accumulated Amortization | (1,243) | $ (1,243) |
FCI, Centronix and Shannon | Development technology | ||
Intangible Assets [Line Items] | ||
Cost | 8,381 | |
Accumulated Amortization | (1,051) | |
Net Carrying Amount | $ 7,330 |
Goodwill And Acquired Intangi63
Goodwill And Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | 60 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Jul. 01, 2015 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization of intangible assets | $ 1,051 | $ 0 | $ 0 | ||
Intangible asset impairment losses | 0 | 0 | 0 | ||
Goodwill impairment | 0 | 0 | $ 0 | ||
Goodwill | 68,660 | $ 35,467 | |||
FCI, Centronix and BTL | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill acquired during period | $ 66,300 | ||||
Shannon Systems | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill acquired during period | $ 33,204 | ||||
Goodwill | $ 33,204 |
Carrying Value of Goodwill (Det
Carrying Value of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Cost | $ 99,504 | $ 66,300 |
Accumulated Impairment | (30,808) | (30,808) |
Foreign Currency Adjustment | (36) | (25) |
Net Carrying Amount | $ 68,660 | $ 35,467 |
Accrued Expenses and Other Cu65
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Wages and bonus | $ 20,365 | $ 12,093 |
Dividends | 15,839 | 153 |
Research and development payable | 2,953 | 2,468 |
License fees and royalties | 4,173 | 2,982 |
Professional fees | 2,126 | 1,714 |
Equipment | 1,285 | 1,170 |
Others | 5,340 | 3,066 |
Accrued expenses and other current liabilities | $ 52,081 | $ 23,646 |
Pension Plan - Additional Infor
Pension Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | $ 2,098 | $ 1,762 | $ 1,369 |
Estimated amortization of net gain from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | 19 | ||
Taiwan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions and Recognized Pension Costs under Labor Pension Act | $ 1,015 | $ 872 | $ 788 |
Contributions Based on Percentage Employee Salaries under Labor Standards Law | 2.00% | ||
The contribution under defined benefit plans | $ 57 | ||
FCI | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
The contribution under defined benefit plans | $ 745 | ||
Minimum | Taiwan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of Contribution by an Employer to Employees Pension | 6.00% |
Changes in Benefits Obligation
Changes in Benefits Obligation And Plan Assets And Reconciliation of Funded Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | $ 3,320 | $ 2,098 | $ 1,897 |
Service cost | 273 | 437 | 440 |
Interest cost | 57 | 58 | 58 |
Actuarial loss (gain) | 79 | 814 | (202) |
Benefits paid | (97) | (87) | (95) |
Projected benefit obligation at end of year | 3,632 | 3,320 | 2,098 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 2,556 | 2,319 | 1,925 |
Actual return on plan assets | 33 | 31 | 43 |
Employer contributions | 328 | 282 | 433 |
Benefits paid | (117) | (76) | (82) |
Fair value of plan assets at end of year | 2,800 | 2,556 | 2,319 |
Funded status recognized as an other asset (liabilities) | $ (832) | $ (764) | $ 221 |
Amounts Recognized in Accumulat
Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net loss | $ 852 | $ 848 | $ 460 | |
Transition obligation | 1 | 1 | 1 | |
Total recognized in accumulated other comprehensive income | $ 853 | $ 849 | $ 461 | $ 258 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Periodic Benefit Cost: | |||
Service cost | $ 273 | $ 437 | $ 440 |
Interest cost | 57 | 58 | 58 |
Projected return on plan assets | (47) | (51) | (47) |
Amortization of unrecognized net transition obligation and unrecognized net actuarial gain | 27 | (19) | (3) |
Net periodic benefit cost | $ 310 | $ 425 | $ 448 |
Other Changes in Plan Assets an
Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss): | |||
Recognize the decrease in net gain | $ 4 | $ 388 | $ 203 |
Amortization of net gain | 0 | 0 | 0 |
Total recognized in other comprehensive loss | $ 4 | $ 388 | $ 203 |
Expected Benefit Payments (Deta
Expected Benefit Payments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2,016 | $ 146 |
2,017 | 290 |
2,018 | 175 |
2,019 | 140 |
2,020 | 120 |
2021 and thereafter | $ 748 |
Actuarial Assumptions to Determ
Actuarial Assumptions to Determine Benefit Obligations (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taiwan | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 1.75% | 2.00% | 1.88% |
Rate of compensation increase | 4.25% | 4.25% | 4.25% |
Weighted-average assumptions used to determine net projected benefit cost: | |||
Discount rate | 1.75% | 2.00% | 1.88% |
Expected long-term return on plan assets | 2.00% | 2.00% | 2.00% |
Rate of compensation increase | 4.25% | 4.25% | 4.25% |
Korea | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 3.90% | 4.10% | 5.20% |
Rate of compensation increase | 4.00% | 5.00% | 2.60% |
Weighted-average assumptions used to determine net projected benefit cost: | |||
Discount rate | 3.90% | 4.10% | 5.20% |
Expected long-term return on plan assets | 1.20% | 2.00% | 3.00% |
Rate of compensation increase | 4.00% | 5.00% | 2.60% |
Fair Values Of FCI's Pension Pl
Fair Values Of FCI's Pension Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||
Fair value of pension plan assets | $ 2,800 | $ 2,556 | $ 2,319 | $ 1,925 |
FCI | ||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||
Fair value of pension plan assets | 1,803 | 1,605 | ||
FCI | Guaranteed interest contract | Kyobo Life Insurance Co. Ltd. | ||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||
Fair value of pension plan assets | 823 | 730 | ||
FCI | Fixed Deposit | Industrial Bank of Korea | ||||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||||
Fair value of pension plan assets | $ 980 | $ 875 |
Components of Income Tax Expens
Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current | $ 17,338 | $ 15,630 | $ 8,591 |
Deferred | 911 | 471 | 1,181 |
Income tax expense | $ 18,249 | $ 16,101 | $ 9,772 |
Income (loss) Before Income Tax
Income (loss) Before Income Taxes for Domestic and Foreign Entities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
Income (loss) before income taxes, domestic | $ (12,037) | $ (12,761) | $ (8,080) |
Income (loss) before income taxes, foreign | 90,537 | 73,329 | 45,228 |
INCOME BEFORE INCOME TAX | $ 78,500 | $ 60,568 | $ 37,148 |
Reconciliation of Income Tax Ex
Reconciliation of Income Tax Expense on Pretax Income at Statutory Rate and Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Of Income Taxes [Line Items] | |||
Cayman statutory rate | $ 0 | $ 0 | $ 0 |
Tax on pretax income at statutory rate | 18,765 | 15,727 | 6,788 |
Tax-exempt income | (906) | (2,573) | (4,325) |
Permanent differences | (1,065) | (396) | 1,730 |
Temporary differences | (330) | (344) | 1,732 |
Alternative minimum tax | 4 | 1,170 | 2,203 |
Income tax (10%) on undistributed earnings | 2,460 | 2,491 | 3,396 |
Net changes in income tax credit | (897) | (899) | 708 |
Net changes in valuation allowance of deferred income tax assets | 1,621 | 733 | (2,364) |
Net operating loss carryforwards | (2,052) | (1,298) | (189) |
Liabilities related to unrealized tax benefits | 672 | 91 | (39) |
Adjustment of prior years' taxes and others | (23) | 1,399 | 132 |
Income tax expense | $ 18,249 | $ 16,101 | $ 9,772 |
Deferred Income Tax Assets (lia
Deferred Income Tax Assets (liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Components of Deferred Tax Provision [Line Items] | ||
Notes and accounts receivable | $ 82 | $ 141 |
Stock-based compensation | 544 | 615 |
Allowance for sales return | 173 | 105 |
Inventory reserve | 1,478 | 814 |
Foreign currency translation | (1,949) | (1,273) |
Property and equipment | 360 | 452 |
Investment tax credits | 8,295 | 7,823 |
Net operating loss carryforwards | 10,651 | 9,621 |
Others | 20 | 14 |
Valuation allowance | (19,044) | (16,791) |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | $ 610 | $ 1,521 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax Credit Carryforward [Line Items] | |||
Change in valuation allowance | $ 2,253 | $ 515 | $ 1,075 |
Income tax holiday description | Profits generated from certain products of SMI Taiwan are exempted from income tax for five years beginning January 1, 2010 and January 1, 2012. | ||
Accumulated undistributed earnings from a foreign subsidiary | $ 242,000 | ||
Deferred tax liability | 0 | ||
Unrecognized tax benefits that would affect effective tax rate | 5,639 | ||
Total amount of interest expense and penalties | 363 | 343 | $ 627 |
Total amount of accrued interest and penalties | 1,977 | $ 1,674 | |
Federal | |||
Tax Credit Carryforward [Line Items] | |||
Net operating loss carryforwards for income tax purposes | $ 9,427 | ||
Federal net operating loss carryforwards expiration year | 2,035 | ||
Research And Development | Federal | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax assets tax credit carryforwards | $ 2,444 | ||
Tax credit carryforward expiration year for federal | 2,035 | ||
Research And Development | State | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax assets tax credit carryforwards | $ 1,711 | ||
Tax credit carryforward expiration year for state | No expiration date | ||
Taiwan | |||
Tax Credit Carryforward [Line Items] | |||
Income tax exemption term | 5 years | ||
FCI | Research And Development | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax assets tax credit carryforwards | $ 4,139 | ||
FCI | Research And Development | Minimum | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward expiration year for federal | 2,015 | ||
FCI | Research And Development | Maximum | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward expiration year for federal | 2,019 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Balance, beginning of year | $ 4,655 | $ 5,815 | $ 3,520 |
Increases in tax positions taken in current year | 2,337 | 446 | 2,947 |
Decrease in tax position taken in prior year primarily related to the resolution of tax audit | (1,353) | (1,606) | (652) |
Balance, end of year | $ 5,639 | $ 4,655 | $ 5,815 |
Summary of Major Jurisdictions
Summary of Major Jurisdictions and Tax Year Subject to Examination Tax Authorities (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
HONG KONG | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2013 and onward |
Taiwan | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2010 and onward |
Korea | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2010 and onward |
United States | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2007 onward |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands | Nov. 02, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 21, 2013 |
Retained Earnings Adjustments [Line Items] | |||||||||||||
Dividend distribution allowance description | SMI Taiwan subsidiary may only distribute dividends after it has made allowances as determined under ROC GAAP at each year-end for: a. Payment of taxes; b. Recovery of prior years’ deficits, if any; c. 10% of remaining balance after deduction for a and b as legal reserve; d. Special reserve based on relevant laws or regulations or 10% of remaining balance for deduction from above a to c as special reserve when necessary; e. Cash or stock bonus to employees at 0.01% of any remaining earnings after the above reserves have been appropriated, based on a resolution of the board of directors. If bonus to employees is in the form of stock, the bonus may also be appropriated to employees of subsidiaries under the board of directors’ approval; | ||||||||||||
Dividend declared | $ 0.15 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.2625 | $ 0.15 | $ 0.15 | |
Treasury stock, share repurchase program retire period | 2013-07 | ||||||||||||
Taiwan | |||||||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||
Bonus distribution to employees | 0.01% | ||||||||||||
American Depositary Shares | |||||||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||
Dividend declared | $ 0.6 | ||||||||||||
ADSs repurchased during period, shares | 891 | ||||||||||||
ADSs repurchased during period, cost | $ 10,000,000 | ||||||||||||
Average purchase price per ADS | $ 11.24 | ||||||||||||
American Depositary Shares | Maximum | |||||||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||
Repurchase of shares | $ 40,000,000 |
Cash Dividends Declared Per Ord
Cash Dividends Declared Per Ordinary Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 02, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Dividends [Line Items] | ||||||||||||
Dividend Per Share | $ 0.15 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.2625 | $ 0.15 | $ 0.15 |
Amount | $ 5,232 | $ 5,230 | $ 5,166 | $ 5,156 | $ 5,084 | $ 5,081 | $ 5,060 | $ 5,056 | $ 20,784 | $ 20,281 |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2006 | Jun. 03, 2015 | Apr. 22, 2005 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ordinary shares for issuance upon exercise of stock options and restricted stock units | 579,000 | |||||||
Stock option exchange for new stock option granted | 4,369,000 | |||||||
Stock options exercise price | $ 1.47 | |||||||
Eligible stock options exchanged for new stock options granted | 3,785,000 | |||||||
Stock Option Granted | 0 | 0 | 0 | |||||
Stock Option Granted Intrinsic Value | $ 3,688 | $ 1,565 | $ 594 | |||||
Total unrecognized compensation cost related to non-vested share-based compensation | 0 | |||||||
Cash received from employee toward stock option exercise | 494 | 514 | 422 | |||||
Tax effect for stock-based compensation benefit (expense) | $ 561 | (24) | 343 | |||||
Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock option granted exercise price | $ 1.85 | |||||||
2005 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ordinary shares for issuance upon exercise of stock options and restricted stock units | 10,000,000 | |||||||
Ordinary shares for issuance upon exercise of stock options and restricted stock units | 15,000,000 | 15,000,000 | ||||||
Conversion ratio of restricted stock unit to ordinary shares | One-for-one | |||||||
2015 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ordinary shares for issuance upon exercise of stock options and restricted stock units | 20,000,000 | |||||||
Restricted Stock Units | The 2005 Plan and The 2015 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total unrecognized compensation cost related to non-vested share-based compensation | $ 5,112 | |||||||
Stock Options And Restricted Stock Units Exercised | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Tax effect for stock-based compensation benefit (expense) | $ 1,647 | $ 1,231 | $ 1,599 |
Summary of Plan Includes Stock
Summary of Plan Includes Stock Options and Restricted Stock Units (Detail) - Stock Option And Restricted Stock Unit Plans - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Available for grant at beginning date | 1,687,000 | 3,566,000 | 5,336,000 |
Authorized | 20,000,000 | ||
Restricted stock units granted | (2,000,000) | (1,923,000) | (1,893,000) |
Option and restricted stock units forfeited | 175,000 | 44,000 | 123,000 |
Available for grant at ending balance | 19,862,000 | 1,687,000 | 3,566,000 |
Summary of Stock Option Activit
Summary of Stock Option Activity and Related Information (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Options Shares | |||
Outstanding at beginning period | 1,058 | 1,410 | 1,697 |
Options forfeited | (143) | ||
Options exercised | (336) | (352) | (287) |
Outstanding at ending period | 579 | 1,058 | 1,410 |
Options vested and expected to vest after ending period | 579 | 1,058 | 1,410 |
Options exercisable at ending period | 579 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning period | $ 1.47 | $ 1.47 | $ 1.47 |
Options forfeited | 1.47 | ||
Options exercised | 1.47 | 1.46 | 1.47 |
Outstanding at ending period | 1.47 | 1.47 | $ 1.47 |
Options vested and expected to vest after ending period | 1.47 | 1.47 | |
Options exercisable at ending period | 1.47 | ||
Options vested and expected to vest after ending period | $ 1.47 | $ 1.47 | |
Weighted Average Remaining Contractual Life | |||
Outstanding at ending period | 11 months 1 day | 1 year 4 months 6 days | 2 years 1 month 21 days |
Options vested and expected to vest after ending period | 11 months 1 day | 1 year 4 months 6 days | 2 years 1 month 21 days |
Options exercisable at ending period | 11 months 1 day |
Summary of Status of Restricted
Summary of Status of Restricted Stock Units and Changes (Detail) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Nonvested Stock Units | |||
Nonvested at beginning period | 2,160 | 3,921 | 7,018 |
Restricted stock units granted | 2,000 | 1,923 | 1,893 |
Restricted stock units vested | (2,003) | (3,640) | (4,867) |
Restricted stock units forfeited | (32) | (44) | (123) |
Nonvested at ending period | 2,125 | 2,160 | 3,921 |
Weighted Average Grant Date Fair Value | |||
Nonvested at beginning period | $ 4.90 | $ 2.90 | $ 2.68 |
Restricted stock units granted | 6.83 | 5.13 | 3.13 |
Restricted stock units vested | 4.96 | 2.96 | 2.60 |
Restricted stock units forfeited | 5.85 | 4.92 | 2.60 |
Nonvested at ending period | $ 6.65 | $ 4.90 | $ 2.90 |
Weighted Average Remaining Recognition Period (Years) | |||
Nonvested at ending period | 8 months 23 days | 3 months 22 days | 5 months 5 days |
Table Of Stock-based Compensati
Table Of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 10,418 | $ 10,347 | $ 10,262 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 261 | 282 | 308 |
Research and Development Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 6,565 | 6,773 | 6,351 |
Selling and Marketing Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 1,790 | 1,746 | 2,197 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 1,802 | $ 1,546 | $ 1,406 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 29, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2012 | Jul. 31, 2010 | Mar. 31, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 17, 2009 | Apr. 25, 2007 |
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Operating lease rental expenses | $ 2,453 | $ 1,981 | $ 1,763 | ||||||||||
Minimum operating lease payment, 2016 | 1,771 | ||||||||||||
Minimum operating lease payment, 2017 | 786 | ||||||||||||
Minimum operating lease payment, 2018 | 580 | ||||||||||||
Minimum operating lease payment, 2019 | 184 | ||||||||||||
Minimum operating lease payment, 2020 | 0 | ||||||||||||
Unpaid accounts receivable from distributor, filed for Chapter 11 bankruptcy protection | $ 31,256 | 61,293 | 31,256 | ||||||||||
Adversary proceeding pending on litigation filled by AASI creditor liquidating trust | $ 854 | ||||||||||||
Litigation settlement expenses | $ 220 | ||||||||||||
Percentage of total investment forfeited from FCI, TLi Inc. ("TLI"), OCI Materials Co., Ltd ("OCI")upon withdrew from the Pangyo Cooperative | 10.00% | ||||||||||||
FCI | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Restricted cash deposited | 455 | $ 425 | $ 455 | ||||||||||
All American | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Unpaid accounts receivable from distributor, filed for Chapter 11 bankruptcy protection | $ 256 | ||||||||||||
All American | Subsequent Event | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Distribution claim received as beneficiary | $ 112 | ||||||||||||
All American | First Distribution | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Distribution claim received as beneficiary | $ 21 | ||||||||||||
All American | Second Distribution | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Distribution claim received as beneficiary | $ 36 | ||||||||||||
All American | Third Distribution | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Distribution claim received as beneficiary | $ 12 | ||||||||||||
All American | Forth Target Distribution | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Distribution claim received as beneficiary | $ 51 | ||||||||||||
All American | Fifth Target Distribution | |||||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||||
Distribution claim received as beneficiary | $ 31 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Segment | |
Reportable segment | 1 |
Revenue by Product Category (De
Revenue by Product Category (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 361,297 | $ 289,323 | $ 225,308 |
Mobile Storage | |||
Segment Reporting Information [Line Items] | |||
Net sales | 302,910 | 241,614 | 185,488 |
Mobile Communications | |||
Segment Reporting Information [Line Items] | |||
Net sales | 50,896 | 40,034 | 31,022 |
Others | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 7,491 | $ 7,675 | $ 8,798 |
Revenue by Geographic Area (Det
Revenue by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 361,297 | $ 289,323 | $ 225,308 |
Taiwan | |||
Net sales | 71,387 | 57,244 | 47,653 |
United States | |||
Net sales | 39,558 | 26,265 | 22,528 |
Japan | |||
Net sales | 19,636 | 11,180 | 3,936 |
Korea | |||
Net sales | 150,118 | 150,557 | 115,287 |
China | |||
Net sales | 69,623 | 35,008 | 29,129 |
Others | |||
Net sales | $ 10,975 | $ 9,069 | $ 6,775 |
Major customers representing at
Major customers representing at least 10% of net sales (Detail) - Net sales - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Samsung | ||||
Receivables From Major Customers [Line Items] | ||||
Revenue major customer | [1] | $ 30,065 | $ 36,037 | |
Major customers percentage of net sales | [1] | 10.00% | 16.00% | |
SK Hynix | ||||
Receivables From Major Customers [Line Items] | ||||
Revenue major customer | $ 108,645 | $ 107,227 | $ 67,977 | |
Major customers percentage of net sales | 30.00% | 37.00% | 30.00% | |
[1] | Less than 10% |
Long-lived Assets (Property And
Long-lived Assets (Property And Equipment, net) by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 50,469 | $ 35,537 | $ 30,195 |
Taiwan | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 32,014 | 28,739 | 24,066 |
United States | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 274 | 142 | 54 |
Korea | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 1,891 | 2,477 | 1,773 |
China | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 16,268 | 4,163 | 4,266 |
Japan | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 22 | $ 16 | $ 36 |
Assets Measured at Fair Value o
Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Short-term investments - trading bond funds | $ 681 | $ 703 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Short-term investments - trading bond funds | $ 681 | $ 703 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Assets fair value disclosure nonrecurring basis | $ 0 | $ 0 | $ 0 | |
Assets measured at fair value nonrecurring basis, loss incurred | $ 0 | $ 0 | $ 0 | |
Senior Notes | ||||
Held-to-maturity investments, investment maturity date | 2016-07 | 2016-07 |