Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 03, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Xperi Corporation | ||
Trading Symbol | XPER | ||
Entity Central Index Key | 1,690,666 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 49,050,003 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,469,310,162 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 65,626 | $ 22,599 | |
Short-term investments | 47,379 | 359,145 | |
Accounts receivable, net | 15,863 | 1,784 | |
Unbilled contract receivable | 51,923 | 0 | |
Other current assets | 19,150 | 28,130 | |
Total current assets | 199,941 | 411,658 | |
Property and equipment, net | 38,855 | 3,748 | |
Intangible assets, net | 541,879 | 95,089 | |
Long-term deferred tax assets | 2,742 | 15,649 | |
Goodwill | 382,963 | [1] | 10,136 |
Other assets | 20,056 | 3,072 | |
Total assets | 1,186,436 | 539,352 | |
Current liabilities: | |||
Accounts payable | 7,531 | 1,090 | |
Accrued legal fees | 7,505 | 2,621 | |
Accrued liabilities | 29,086 | 10,262 | |
Current portion of long-term debt | 6,000 | 0 | |
Deferred revenue | 895 | 6,805 | |
Total current liabilities | 51,017 | 20,778 | |
Long-term deferred tax liabilities | 32,565 | 255 | |
Long-term debt, net | 577,239 | 0 | |
Other long-term liabilities | 17,830 | 3,162 | |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Preferred stock: $0.001 par value; 10,000 shares authorized and no shares issued and outstanding | 0 | 0 | |
Common stock: $0.001 par value; 150,000 shares authorized; 59,596 and 58,692 shares issued, respectively, and 48,854 and 50,294 shares outstanding, respectively | 59 | 58 | |
Additional paid-in capital | 644,194 | 599,186 | |
Treasury stock at cost; 10,742 and 8,398 shares of common stock at each period end, respectively | (300,114) | (229,513) | |
Accumulated other comprehensive loss | (148) | (1,437) | |
Retained earnings | 163,794 | 146,863 | |
Total stockholders’ equity | 507,785 | 515,157 | |
Total liabilities and stockholders’ equity | $ 1,186,436 | $ 539,352 | |
[1] | his amount |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 59,596,000 | 58,692,000 |
Common stock, shares outstanding (in shares) | 48,854,000 | 50,294,000 |
Treasury stock, shares (in shares) | 10,742,000 | 8,398,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | |||
Royalty and license fees | $ 259,565 | $ 273,300 | $ 278,807 |
Total revenue | 259,565 | 273,300 | 278,807 |
Operating expenses: | |||
Cost of revenue | 551 | 566 | 384 |
Research, development and other related costs | 44,738 | 32,181 | 32,270 |
Selling, general and administrative | 72,065 | 43,592 | 47,208 |
Amortization expense | 31,870 | 20,624 | 18,471 |
Litigation expense | 20,953 | 14,135 | 25,116 |
Gain on the sale of patents and restructuring | 0 | 0 | (10,338) |
Total operating expenses | 170,177 | 111,098 | 113,111 |
Operating income | 89,388 | 162,202 | 165,696 |
Interest expense | (2,409) | 0 | 0 |
Other income and expense, net | 3,736 | 3,432 | 1,550 |
Income before taxes from continuing operations | 90,715 | 165,634 | 167,246 |
Provision for (benefit from) income taxes | 34,626 | 48,517 | (7,697) |
Income from continuing operations | 56,089 | 117,117 | 174,943 |
Loss from discontinued operations, net of tax | 0 | (101) | (4,489) |
Net income | $ 56,089 | $ 117,016 | $ 170,454 |
Income (loss) per share: | |||
Income from continuing operations - Basic (in dollars per share) | $ 1.14 | $ 2.26 | $ 3.31 |
Income from continuing operations - Diluted (in dollars per share) | 1.12 | 2.23 | 3.27 |
Loss from discontinued operations - Basic (in dollars per share) | 0 | 0 | (0.08) |
Loss from discontinued operations - Diluted (in dollars per share) | 0 | 0 | (0.08) |
Net income: | |||
Net Income - Basic (in dollars per share) | 1.14 | 2.26 | 3.23 |
Net Income - Diluted (in dollars per share) | 1.12 | 2.23 | 3.18 |
Cash dividends declared per share (in dollars per share) | $ 0.8 | $ 0.80 | $ 0.92 |
Weighted average number of shares used in per share calculations-basic (in shares) | 49,187 | 51,802 | 52,819 |
Weighted average number of shares used in per share calculations-diluted (in shares) | 50,190 | 52,586 | 53,563 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 56,089 | $ 117,016 | $ 170,454 |
Other comprehensive income (loss): | |||
Net unrealized gains (losses) on available-for- sale securities, net of tax | 1,289 | (1,104) | (466) |
Other comprehensive income (loss) | 1,289 | (1,104) | (466) |
Comprehensive income | $ 57,378 | $ 115,912 | $ 169,988 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Deficit) |
Beginning balance (in shares) at Dec. 31, 2013 | 53,442 | 2,175 | ||||
Beginning balance at Dec. 31, 2013 | $ 440,437 | $ 55 | $ 530,762 | $ (39,918) | $ 133 | $ (50,595) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 170,454 | 170,454 | ||||
Other comprehensive income (loss) | (466) | (466) | ||||
Cash dividends paid on common stock | (48,335) | (48,335) | ||||
Issuance of common stock in connection with exercise of stock options (in shares) | 1,797 | |||||
Issuance of common stock in connection with exercise of stock options | $ 32,580 | $ 2 | 32,578 | |||
Issuance of common stock in connection with employee common stock purchase plan (in shares) | 137 | 137 | ||||
Issuance of common stock in connection with employee common stock purchase plan | $ 1,700 | 1,700 | ||||
Issuance of restricted stock, net of shares cancelled (in shares) | 249 | |||||
Issuance of restricted stock, net of shares canceled | 1 | $ 1 | ||||
Repurchases of common stock, shares exchanged (in shares) | 29 | |||||
Repurchases of common stock, shares exchanged | (761) | $ (761) | ||||
Repurchases of common stock (in shares) | (2,785) | (2,756) | ||||
Stock-based compensation expense | 65,552 | $ 65,552 | ||||
Tax effect from employee stock option plan | 13,269 | 13,269 | ||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | (1,968) | (1,968) | ||||
Ending balance (in shares) at Dec. 31, 2014 | 52,840 | 4,960 | ||||
Ending balance at Dec. 31, 2014 | 541,359 | $ 58 | 576,341 | $ (106,231) | (333) | 71,524 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 117,016 | 117,016 | ||||
Other comprehensive income (loss) | (1,104) | (1,104) | ||||
Cash dividends paid on common stock | (41,677) | (41,677) | ||||
Issuance of common stock in connection with exercise of stock options (in shares) | 465 | |||||
Issuance of common stock in connection with exercise of stock options | $ 8,995 | 8,995 | ||||
Issuance of common stock in connection with employee common stock purchase plan (in shares) | 77 | 77 | ||||
Issuance of common stock in connection with employee common stock purchase plan | $ 1,665 | 1,665 | ||||
Issuance of restricted stock, net of shares cancelled (in shares) | 350 | |||||
Issuance of restricted stock, net of shares canceled | 0 | |||||
Repurchases of common stock, common stock shares exchanged | $ (105) | |||||
Repurchases of common stock, shares exchanged (in shares) | 105 | |||||
Repurchases of common stock, shares exchanged | $ (4,047) | $ (4,047) | ||||
Repurchases of common stock (in shares) | (8,234) | (3,333) | (3,333) | |||
Stock-based compensation expense | $ 119,235 | $ 119,235 | ||||
Tax effect from employee stock option plan | 11,517 | 11,517 | ||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | (668) | (668) | ||||
Ending balance (in shares) at Dec. 31, 2015 | 50,294 | 8,398 | ||||
Ending balance at Dec. 31, 2015 | 515,157 | $ 58 | 599,186 | $ (229,513) | (1,437) | 146,863 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 56,089 | 56,089 | ||||
Other comprehensive income (loss) | 1,289 | 1,289 | ||||
Cash dividends paid on common stock | (39,158) | (39,158) | ||||
Issuance of common stock in connection with exercise of stock options (in shares) | 350 | |||||
Issuance of common stock in connection with exercise of stock options | $ 6,285 | 6,285 | ||||
Issuance of common stock in connection with employee common stock purchase plan (in shares) | 89 | 89 | ||||
Issuance of common stock in connection with employee common stock purchase plan | $ 1,998 | 1,998 | ||||
Issuance of restricted stock, net of shares cancelled (in shares) | 465 | |||||
Issuance of restricted stock, net of shares canceled | 1 | $ 1 | ||||
Repurchases of common stock, common stock shares exchanged | $ (91) | |||||
Repurchases of common stock, shares exchanged (in shares) | 91 | |||||
Repurchases of common stock, shares exchanged | (2,900) | $ (2,900) | ||||
Repurchases of common stock (in shares) | (2,253) | (2,253) | ||||
Stock-based compensation expense | 67,701 | $ 67,701 | ||||
Tax effect from employee stock option plan | 21,101 | 21,101 | ||||
Fair value of partially vested equity awards assumed in connection with the acq. of DTS | 13,124 | 13,124 | ||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | (2,500) | (2,500) | ||||
Ending balance (in shares) at Dec. 31, 2016 | 48,854 | 10,742 | ||||
Ending balance at Dec. 31, 2016 | $ 507,785 | $ 59 | $ 644,194 | $ (300,114) | $ (148) | $ 163,794 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 56,089 | $ 117,016 | $ 170,454 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization of property and equipment | 2,260 | 1,590 | 1,834 |
Amortization of intangible assets | 31,870 | 20,624 | 18,472 |
Stock-based compensation expense | 21,101 | 11,517 | 13,269 |
Gain on disposal of property and equipment and other assets, net | 0 | 0 | (19,618) |
Non-cash restructuring, impairment of long-lived assets and other charges | 0 | 0 | 820 |
Deferred income tax and other, net | 955 | 18,809 | (44,042) |
Amortization of premium or discount on investments and other | 4,072 | (2,601) | (144) |
Tax effect from employee stock option plan | 6,940 | 668 | (1,968) |
Excess tax benefits from employee stock option plan | (8,228) | (726) | 0 |
Patents acquired through settlement agreements | 0 | 0 | (4,280) |
Changes in operating assets and liabilities, net of business acquisitions: | |||
Accounts receivable, net | 13,957 | 2,694 | (1,217) |
Other assets | 18,067 | (10,051) | 5,307 |
Accounts payable | 1,709 | (2,685) | 566 |
Accrued legal fees | 4,884 | (1,819) | (5,749) |
Accrued and other liabilities | (1,573) | (5,074) | (8,568) |
Deferred revenue | (6,471) | (3,412) | 9,068 |
Net cash from operating activities | 145,632 | 146,550 | 134,204 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (3,794) | (1,002) | (1,769) |
Proceeds from sale of property and equipment and other assets | 0 | 0 | 31,173 |
Purchases of short-term available-for-sale investments | (161,595) | (298,848) | (301,629) |
Proceeds from sales of short-term investments | 299,524 | 149,975 | 34,052 |
Proceeds from maturities of short-term investments | 171,255 | 174,738 | 169,607 |
Acquisition, net of cash acquired | (888,204) | (38,561) | (2,450) |
Purchases of intangible assets | (9,582) | (7,588) | (5,635) |
Net cash from investing activities | (592,396) | (21,286) | (76,651) |
Cash flows from financing activities: | |||
Proceeds from debt, net | 583,039 | 0 | 0 |
Dividend paid | (39,158) | (41,677) | (48,335) |
Excess tax benefit from stock-based compensation | 8,228 | 726 | 0 |
Proceeds from exercise of stock options | 6,285 | 8,995 | 32,581 |
Proceeds from employee stock purchase program | 1,998 | 1,665 | 1,700 |
Repurchase of common stock | (70,601) | (123,282) | (66,313) |
Net cash from financing activities | 489,791 | (153,573) | (80,367) |
Net increase (decrease) in cash and cash equivalents | 43,027 | (28,309) | (22,814) |
Cash and cash equivalents at beginning of period | 22,599 | 50,908 | 73,722 |
Cash and cash equivalents at end of period | 65,626 | 22,599 | 50,908 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid, net of refunds | 7,676 | 36,781 | 29,053 |
Supplemental disclosure of non-cash investing activities: | |||
Fair value of unvested DTS equity awards assumed relating to pre-acquisition services | $ 13,124 | $ 0 | $ 0 |
The Company And Basis Of Presen
The Company And Basis Of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company And Basis Of Presentation | THE COMPANY AND BASIS OF PRESENTATION The Company completed the acquisition of DTS, Inc. ("DTS"), a publicly-traded developer of sound-based technologies, in December 2016. At the time of the acquisition, Tessera Technologies, Inc. and DTS were combined under the newly-formed Tessera Holding Corporation and shares of the combined company traded on the NASDAQ market under Tessera’s ticker symbol "TSRA". During the first quarter of 2017, the Company introduced its new corporate name, “Xperi Corporation”, stock ticker, “XPER”, and launched a new corporate logo. This has resulted in the presentation of the financial statements under the new name of Xperi Corporation (formerly known as Tessera Holding Corporation which is the successor registrant to Tessera Technologies Inc.). For more information on the acquisition of DTS, Inc., see Note 8 - “Business Combinations.” Xperi Corporation licenses its innovative technologies and inventions to global electronic device and manufacturing companies which, in turn, integrate the technologies into their own enterprise, consumer electronics and semiconductor products. The Company's technologies and solutions are widely proliferated. The Company's audio technologies have shipped in billions of devices for the home, mobile and automotive markets. The Company's imaging technologies are embedded in more than 25% of smartphones on the market today. The Company's semiconductor packaging and interconnect technologies have been licensed to more than 100 customers and have shipped in over 100 billion semiconductor chips. Key end-markets enabled by the Company's technology solutions include mobile, home, datacenter, and automotive. The consolidated financial statements include the accounts of Xperi Corporation and each of its wholly owned subsidiaries. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). All significant intercompany balances and transactions are eliminated in consolidation. The Company’s fiscal year ends on December 31. The Company employs a calendar month-end reporting period for its quarterly reporting. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, difficult, and subjective judgment include the recognition and measurement of current and deferred income tax assets and liabilities, the fair value measurements of goodwill, other intangible assets and investments, the assessment of the recoverability of goodwill, the assessment of useful lives and recoverability of other intangible assets and long-lived assets, the assessment of unrecognized tax benefits and the valuation and recognition of stock-based compensation expense, and business combinations, among others. Actual results experienced by the Company may differ from management’s estimates. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions. The Company’s cash equivalents are classified as available-for-sale. Financial Instruments Investments consist primarily of municipal bonds and notes, corporate bonds and notes, treasury and agency notes and bills, commercial paper, certificates of deposit, and money market funds. Investments with remaining maturities from original purchase date greater than three months but less than twelve months are classified as short-term investments. Investments with remaining maturities from original purchase date greater than twelve months are classified as long-term investments. The Company’s cash equivalents and investments are classified as available-for-sale. Unrealized gains and losses on securities, net of tax, are recorded in accumulated other comprehensive income and reported as a separate component of stockholders’ equity. The Company evaluates the investments periodically for possible other-than-temporary impairment and reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, and the Company’s ability and intent to hold the security until maturity on a more-likely-than-not basis. If the declines in the fair value of the investments are determined to be other-than-temporary, the Company reports the credit loss portion of such decline in other income and expense, net, and the remaining noncredit loss portion in accumulated other comprehensive income. The cost of securities sold is based on the specific identification method. Interest and dividend income and realized gains or losses are included in other income and expense, net. Fair Value of Financial Instruments The carrying amount of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term nature of these instruments. Long-term debt approximates fair value due to the variable rate nature of the debt. Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, short-term investments and accounts receivable. The Company follows a corporate investment policy which sets credit, maturity and concentration limits and regularly monitors the composition, market risk and maturities of these investments. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by the Company’s evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary but generally requires no collateral. At December 31, 2016, the Company had two customers representing 14% and 13% of aggregate gross trade receivables. At December 31, 2015, the Company had four customers representing 26% , 21% , 13% and 12% of aggregate gross trade receivables. The following table sets forth revenue generated from customers which comprise 10% or more of total revenue for the periods indicated: Years Ended December 31, 2016 2015 2014 Samsung Electronics, Co. Ltd. 25 % 19 % 24 % Micron Technology, Inc. 17 % 15 % *% Amkor Technologies, Inc. 15 % 14 % *% SK hynix Inc. 12 % 13 % 11 % Powertech Technology Inc. *% *% 34 % * denotes less than 10% of total revenue. Allowance For Doubtful Accounts The Company continually monitors customer payments and maintains a reserve for estimated losses resulting from its customers' inability to make required payments. In determining the reserve, the Company evaluates the collectibility of its accounts receivable based upon a variety of factors. In cases where the Company becomes aware of circumstances that may impair a specific customer's ability to meet its financial obligations, the Company records a specific allowance against amounts due. For all other customers, the Company recognizes allowances for doubtful accounts based on its historical write-off experience in conjunction with the length of time the receivables are past due, customer creditworthiness, geographic risk and the current business environment. Actual future losses from uncollectible accounts may differ from the Company's estimates. At December 31, 2016, the allowance was not material. Goodwill and Identified Intangible Assets Goodwill . Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and identified intangible assets acquired under a business combination. Goodwill also includes acquired assembled workforce, which does not qualify as an identifiable intangible asset. The Company reviews impairment of goodwill annually in the fourth quarter, or more frequently if events or circumstances indicate that the goodwill might be impaired. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If the Company concludes it is more-likely-than-not that the fair value of a reporting unit exceeds its carrying amount, the two-step impairment test is not required. If based on the qualitative assessment, the Company believes it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, a two-step goodwill impairment test is required to be performed. The first step requires the Company to compare the fair value of each reporting unit to its carrying value including allocated goodwill. The Company determines the fair value of its reporting units using an equal weighting of the results derived from an income approach and a market approach. The income approach is estimated through the discounted cash flow method based on assumptions about future conditions such as future revenue growth rates, new product and technology introductions, gross margins, operating expenses, discount rates, future economic and market conditions, and other assumptions. The market approach estimates the fair value of the Company’s equity by utilizing the market comparable method which is based on revenue multiples from comparable companies in similar lines of business. If the carrying value of a reporting unit exceeds the reporting unit’s fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the reporting unit with the carrying value of the reporting unit. An impairment charge is recognized for the excess of the carrying value of the reporting unit over its implied fair value. Determining the fair value of a reporting unit is subjective in nature and requires the use of significant estimates and assumptions, including revenue growth rates and operating margins, discount rates and future market conditions, among others. Identified intangible assets . Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships, trademarks and trade names, and non-compete agreements resulting from business combinations, and acquired patents under asset purchase agreements. The Company’s identified intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 15 years . The Company makes judgments about the recoverability of finite-lived intangible assets whenever facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, the Company assesses recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, the Company would accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. Identified indefinite-lived intangible assets include in-process research and development (IPR&D) resulting from business combinations. The Company evaluates the carrying value of indefinite-lived intangible assets on an annual basis, and an impairment charge would be recognized to the extent that the carrying amount of such assets exceeds their estimated fair value. For further discussion of goodwill and identified intangible assets, see “Note 9 – Goodwill and Identified Intangible Assets .” Debt Issuance Costs Debt issuance costs are presented in the consolidated balance sheet as a deduction from the carrying amount of the long-term debt, and are amortized over the term of the associated debt to interest expense using the effective interest method. Treasury Stock The Company accounts for stock repurchases using the cost method. For reissuance of treasury stock, to the extent that the reissuance price is more than the cost, the excess is recorded as an increase to capital in excess of par value. If the reissuance price is less than the cost, the difference is recorded in capital in excess of par value to the extent there is a cumulative treasury stock paid-in capital balance. Once the cumulative balance is reduced to zero , any remaining difference resulting from the sale of treasury stock below cost is recorded as a reduction of retained earnings. Business Combinations The Company includes the results of operations of the businesses that it has acquired in its consolidated results as of the respective dates of acquisition. The Company allocates the fair value of the purchase consideration of its acquisitions to the tangible assets, liabilities and intangible assets acquired, including IPR&D, based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired companies and the Company and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When the IPR&D project is complete, it is reclassified as an amortizable intangible asset and is amortized over its estimated useful life. If an IPR&D project is abandoned, the Company records a charge for the value of the related intangible asset in its consolidated statement of operations in the period it is abandoned. The fair value of contingent consideration associated with acquisitions is remeasured each reporting period and adjusted accordingly. Acquisition and integration related costs are recognized separately from the business combination and are expensed as incurred. For additional information regarding the Company's acquisitions, refer to "Note 8 – Business Combinations ." Revenue Recognition The Company derives its revenue primarily from royalty and license fees. Revenue is recognized when there is persuasive evidence of an arrangement, delivery has occurred, the fee is fixed or determinable, and collectability of the resulting receivable is reasonably assured. Determining whether and when these criteria have been satisfied requires the Company to make assumptions and judgments that could have a significant impact on the timing and amount of revenue it reports. License revenue is generated from license agreements for certain rights to the Company’s technologies. From time to time the Company enters into license agreements that provide for fixed license fees or royalty payments. The fixed license fees or royalty payments are recognized as revenue ratably over the contract term. Royalty revenues are generated from a licensee's production or shipment of licensed products incorporating the Company’s intellectual property, technologies or software. Licensees with a per-unit arrangement pay a per-unit royalty for each product manufactured or sold, as set forth in each license agreement. Licensees generally report manufacturing or sales information in the quarter subsequent to when such activity takes place. Consequently, the Company recognizes revenue from these per-unit licensing agreements in the quarter following the quarter of manufacture or sale, provided amounts are fixed or determinable and collection is reasonably assured, since the Company cannot reliably estimate the amount of revenue earned prior to the receipt of such reports. Use of this "quarter lag" method allows for the receipt of licensee royalty reports prior to the recognition of revenue. Certain cash collections from licensing arrangements acquired from DTS received or that are expected to be received subsequent to the acquisition date of December 1, 2016 were the result of licensee products manufactured or sold prior to December 1, 2016. Therefore, the Company will not recognize revenue for such cash collections. Accordingly, the Company recognized revenue only from licensing agreements acquired from DTS that resulted from licensee products manufactured or sold after the acquisition date of December 1, 2016. For additional information, refer to "Note 8 – Business Combinations ." Certain licensees of the Company have also entered into minimum guarantee arrangements, whereby licensees pay a minimum fee for the right to incorporate the Company's technology in the licensee's products over the contract term. These agreements stipulate a fee that corresponds to a minimum number of units or dollars that the customers must produce or pay, with additional per-unit fees for any units or dollars exceeding the minimum. For these agreements, the Company recognizes the minimum amount on these agreements as revenue ratably over the contract term. Consistent with the aforementioned policy for per-unit license fee agreements, the Company recognizes revenue relating to any additional per-unit fees on a quarter lag basis, since the Company cannot reliably estimate the amount of revenue earned from additional units manufactured or sold prior to the receipt of licensee reports. Under the acquisition method of purchase accounting, remaining guaranteed payments under existing minimum guarantee arrangements acquired from DTS were recorded as an unbilled contract receivable and other assets as part of the purchase price allocation. Accordingly, such payments will not be recognized as revenue over the remaining term of the contracts. Any new minimum guarantee arrangements with license periods starting subsequent to December 1, 2016 will be recognized as revenue ratably over the contract term in accordance with the policy described above. For additional information, refer to "Note 8 – Business Combinations ." The Company also derives revenue from software licenses for digital and video photography image enhancement technology. In some instances, the Company may enter into license agreements that involve multiple element arrangements to also include technology transfer, design, technical service and unspecified support. For technology and software licenses, revenue is recognized upon delivery or on a straight-line basis over the period in which the unspecified support or service is performed. The Company actively monitors and enforces its intellectual property, and pursues third parties who have under-reported the amount of royalties owed under a license agreement or who utilize its intellectual property without a license. As a result of these activities, the Company may, from time to time, recognize royalty revenue that relate to infringements or under-reporting that occurred in prior periods. Royalty revenue may also include payments resulting from periodic compliance audits of licensees, as part of a settlement of a patent infringement dispute, or judgments of license dispute. These royalty recoveries may cause revenue to be higher than expected during a particular reporting period and may not occur in subsequent periods. The Company recognizes revenue from royalty recoveries when there is persuasive evidence of an arrangement and collectability is reasonably assured. In the case of litigation settlements, the Company recognizes revenue when payments are received which is deemed to be when collectability is reasonably assured. The Company provides payment terms to licensees based upon their financial strength, credit worthiness and the Company’s collection experience with the licensee. If the Company provides extended payment terms, revenue is deferred until payment is due. Indemnification The Company provides indemnification of varying scope to certain customers against claims of intellectual property infringement made by third parties arising from the use of the Company’s technologies. In accordance with authoritative guidance for accounting for guarantees, the Company evaluates estimated losses for such indemnification. The Company considers such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. To date, no such claims have been filed against the Company and, as a result, no liability has been recorded in the Company’s financial statements. As permitted under Delaware law, the Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has Directors’ and Officers’ Liability insurance coverage that is intended to reduce its financial exposure and may enable the Company to recover a portion of any such payments. The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Research, Development and Other Related Costs Research, development and other related costs consist primarily of compensation and related costs for personnel and consultants, as well as costs related to patent applications and examinations, product "tear downs" and reverse engineering, materials, supplies, and equipment depreciation. Research and development is conducted primarily in-house and targets development of chip-scale and multi-chip packaging, circuitry design, 3D-IC architectures, wafer-level packaging technology, advanced substrates, advanced audio technologies and image enhancement technologies. All research, development and other related costs are expensed as incurred. Stock-based Compensation Expense The Company accounts for stock-based compensation expense in accordance with the authoritative guidance on share-based payments. Under the provisions of the guidance, stock-based compensation expense is measured at the grant date based on the fair value of the option using a Black-Scholes option pricing model and is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair value of the Company’s stock awards for non-employees is estimated based on the fair market value on each vesting date, accounted for under the variable-accounting method. The authoritative guidance also requires that the Company measure and recognize stock-based compensation expense upon modification of the term of stock award. The stock-based compensation expense for such modification is the sum of any unamortized expense of the award before modification and the modification expense. The modification expense is the incremental amount of the fair value of the award before the modification and the fair value of the award after the modification, measured on the date of modification. In the case when the modification results in a longer requisite period than in the original award, the Company has elected to apply the pool method where the aggregate of the unamortized expense and the modification expense is amortized over the new requisite period on a straight-line basis. In addition, any forfeiture will be based on the original requisite period prior to the modification. Calculating stock-based compensation expense requires the input of highly subjective assumptions, including the expected term of the stock-based awards, stock price volatility, and the pre-vesting option forfeiture rate. The Company estimates the expected life of options granted based on historical exercise patterns, which are believed to be representative of future behavior. The Company estimates the volatility of the Company’s common stock on the date of grant based on historical volatility. The assumptions used in calculating the fair value of stock-based awards represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, its stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. The Company estimates the forfeiture rate based on historical experience of its stock-based awards that are granted, exercised and cancelled. If the actual forfeiture rate is materially different from the estimate, stock-based compensation expense could be significantly different from what was recorded in the current period. See Note 13 – “Stock-based Compensation Expense” for additional detail. Income Taxes The Company must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, tax benefits, tax deductions, and in the calculation of certain deferred taxes and tax liabilities. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. The provision for income taxes was comprised of the Company’s current tax liability and changes in deferred income tax assets and liabilities. The calculation of the current tax liability involves dealing with uncertainties in the application of complex tax laws and regulations and in determining the liability for tax positions, if any, taken on the Company’s tax returns in accordance with authoritative guidance on accounting for uncertainty in income taxes. Deferred income taxes are determined based on the differences between the financial reporting and tax basis of assets and liabilities. The Company must assess the likelihood that it will be able to recover the Company’s deferred tax assets. If recovery is not likely on a more-likely-than-not basis, the Company must increase its provision for income taxes by recording a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. However, should there be a change in the Company’s ability to recover its deferred tax assets, the provision for income taxes would fluctuate in the period of such change. See Note 14 – “Income Taxes” for additional detail. Contingencies From time to time, the Company may be involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Management reviews these estimates in each accounting period as additional information becomes known and adjusts the loss provision when appropriate. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the consolidated financial statements. If a loss is probable but the amount of loss cannot be reasonably estimated, the Company discloses the loss contingency and an estimate of possible loss or range of loss (unless such an estimate cannot be made). The Company does not recognize gain contingencies until they are realized. Legal costs incurred in connection with loss contingencies are expensed as incurred. See Note 15 – " Commitments and Contingencies ,” for further information regarding the Company’s pending litigation. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets' estimated useful lives: Equipment, furniture and other 1 to 5 years Leasehold improvements Lesser of related lease term or 5 years Building and improvements Up to 30 years Expenditures that materially increase asset life are capitalized, while ordinary maintenance and repairs are expensed as incurred. The Company capitalizes the costs of purchased software licenses, consulting costs and payroll-related costs incurred in developing or implementing internal use computer software. These costs are included in property and equipment, net on the consolidated balance sheets. Costs incurred during the preliminary project and post-implementation stages are charged to expense as incurred. Foreign Currency Translation The functional currency of substantially all of the Company's wholly-owned subsidiaries is the U.S. dollar. Certain subsidiaries have monetary assets and liabilities that are denominated in a currency that is different than the functional currency. The gains and losses resulting from this remeasurement and translation of monetary assets denominated in a currency that is different than the functional currency are reflected in the determination of net income (loss). |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In June 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic No. 718, “Compensation - Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 were adopted effective January 1, 2016. The implementation of this guidance did not have a material impact to the disclosures in the Company’s consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40) (“Update 2014-15”), which requires management to assess a company’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. For public entities, Update 2014-15 was effective for annual reporting periods ending after December 15, 2016. The Company adopted this update in 2016 resulting in no impact on its consolidated results of operations, financial position, cash flows and disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in ASU 2015-03 were adopted effective January 1, 2016. Accordingly, the Company presented its debt issuance costs as a deduction from the carrying amount of long-term debt on its consolidated balance sheet as of December 31, 2016. For additional information, refer to "Note 10 - Debt ." In January 2017, the FASB issued ASU No. 2017-01, "Classifying the Definition of a Business." This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted for transactions for which the acquisition date occurs before the effective date of the ASU only when the transaction has not been reported in financial statements that have been issued. The Company chose to early adopt this standard effective for the year ended December 31, 2016. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The core principle of ASU 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The FASB has further clarified this new guidance for revenue recognition by issuing ASU No. 2016-08 (principal versus agent considerations), ASU No. 2016-10 (identifying performance obligations and licensing), ASU No. 2016-12 (narrow-scope improvements and practical expedients), and ASU No. 2016-20 (technical corrections and improvements to Topic 606). The new standard is effective for the Company beginning January 1, 2018. The Company expects the standard to have a material impact on the timing of revenue recognition and expects that the standard will cause volatility in its quarterly revenue trends. Under the new standard, the current practice of many licensing companies of reporting revenue from per-unit royalty based arrangements one quarter in arrears would no longer be accepted and instead the Company will be expected to estimate royalty-based revenue. The Company also expects the standard to have a significant impact on the timing of revenue recognition associated with its fixed fee and minimum guarantee arrangements, as a majority of such revenue is expected to be recognized at the initiation of the license term. The Company currently expects to adopt this standard using the modified retrospective method, under which the Company would record a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2018 determined on the basis of the impact of the new standard on contracts that are not completed as of January 1, 2018. The Company is currently evaluating and finalizing the full impact of this new standard on its financial statements. In February 2016, the FASB issued ASU 2016-02 "Leases (Topic 842)." The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases while the accounting by a lessor is largely unchanged from that applied under previous GAAP. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of this new standard. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) (“ASU 2016-09”). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact the adoption of this new accounting standard would have on its consolidated financial statements and footnote disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the classification of certain specific cash flow issues including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the effect this standard will have on its consolidated statement of cash flows. In October 2016, the FASB issued ASU No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." This ASU requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements have not been issued. The Company is evaluating the impact of adoption of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 to simplify the measurement of goodwill by eliminating the Step 2 impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently assessing the impact of this new guidance. |
Composition Of Certain Financia
Composition Of Certain Financial Statement Captions | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition Of Certain Financial Statement Captions | COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Other current assets consisted of the following (in thousands): December 31, 2016 December 31, 2015 Prepaid income taxes $ 6,645 $ 22,890 Interest receivable 310 2,427 Other 12,195 2,813 $ 19,150 $ 28,130 Property and equipment, net consisted of the following (in thousands): December 31, 2016 2015 Equipment, furniture and other $ 28,071 $ 18,738 Building and improvements 18,153 455 Land 5,300 — Leasehold improvements 6,346 3,840 57,870 23,033 Less: Accumulated depreciation and amortization (19,015 ) (19,285 ) $ 38,855 $ 3,748 Depreciation and amortization expense for the years ended December 31, 2016, 2015 and 2014 amounted to $2.3 million , $1.6 million and $1.8 million , respectively. Accrued liabilities consisted of the following (in thousands): December 31, 2016 December 31, 2015 Employee compensation and benefits $ 18,584 $ 6,848 Accrued interest 2,200 — Other 8,302 3,414 $ 29,086 $ 10,262 Accumulated other comprehensive loss consisted of the following (in thousands): December 31, 2016 December 31, 2015 Unrealized loss on available-for-sale securities, net of tax $ (148 ) $ (1,437 ) $ (148 ) $ (1,437 ) |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS The following is a summary of marketable securities at December 31, 2016 and December 31, 2015 (in thousands): December 31, 2016 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Values Available-for-sale securities Corporate bonds and notes $ 36,590 $ 7 $ (95 ) $ 36,502 Commercial paper 5,220 — (4 ) 5,216 Treasury and agency notes and bills 6,029 — (57 ) 5,972 Money market funds 14,146 — — 14,146 Total available-for-sale securities $ 61,985 $ 7 $ (156 ) $ 61,836 Reported in: Cash and cash equivalents $ 14,457 Short-term investments 47,379 Total marketable securities $ 61,836 December 31, 2015 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Values Available-for-sale securities Corporate bonds and notes $ 257,461 $ 7 $ (1,286 ) $ 256,182 Municipal bonds and notes 70,772 12 (81 ) 70,703 Commercial paper 5,377 3 — 5,380 Treasury and agency notes and bills 26,973 — (93 ) 26,880 Money market funds 715 — — 715 Total available-for-sale securities $ 361,298 $ 22 $ (1,460 ) $ 359,860 Reported in: Cash and cash equivalents $ 715 Short-term investments 359,145 Total marketable securities $ 359,860 At December 31, 2016 and December 31, 2015, the Company had $113.0 million and $381.7 million , respectively, in cash, cash equivalents and short-term investments. The majority of these amounts were held in marketable securities, as shown above. The remaining balance of $51.2 million and $21.9 million at December 31, 2016 and December 31, 2015, respectively, was cash held in operating accounts not included in the tables above. The gross realized gains and losses on sales of marketable securities were not significant during the years ended December 31, 2016, 2015 and 2014. Unrealized losses (net of unrealized gains) of $0.1 million , net of tax, as of December 31, 2016, were related to a temporary decrease in value of the remaining available-for-sale securities and were due primarily to changes in interest rates and market and credit conditions of the underlying securities. Certain investments with a temporary decline in value are not considered to be other-than-temporarily impaired as of December 31, 2016 because the Company has the ability to hold these investments to allow for recovery, and does not anticipate having to sell these securities with unrealized losses and continues to receive interest at the maximum contractual rate. For the years ended December 31, 2016, 2015 and 2014, respectively, the Company did not record any impairment charges related to its marketable securities. The following table summarizes the fair value and gross unrealized losses related to individual available-for-sale securities at December 31, 2016 and 2015, which have been in a continuous unrealized loss position, aggregated by investment category and length of time (in thousands): December 31, 2016 Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and notes $ 14,678 $ (44 ) $ 13,230 $ (51 ) $ 27,908 $ (95 ) Treasury and agency notes and bills 5,972 (57 ) — — 5,972 (57 ) Commercial paper 5,216 (4 ) — — 5,216 (4 ) Total $ 25,866 $ (105 ) $ 13,230 $ (51 ) $ 39,096 $ (156 ) December 31, 2015 Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and notes $ 183,491 $ (1,162 ) $ 70,447 $ (124 ) $ 253,938 $ (1,286 ) Municipal bonds and notes 60,976 (81 ) — — 60,976 (81 ) Treasury and agency notes 26,880 (93 ) — — 26,880 (93 ) Total $ 271,347 $ (1,336 ) $ 70,447 $ (124 ) $ 341,794 $ (1,460 ) The estimated fair value of marketable securities by contractual maturity at December 31, 2016 is shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. Estimated Fair Value Due in one year or less $ 32,035 Due in one to two years 22,835 Due in two to three years 6,966 Total $ 61,836 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS The following are included in the Company's discontinued operations: • In 2014, the Company announced the cessation of all mems|cam manufacturing operations. As part of these efforts, the Company is no longer operating facilities in Arcadia, California, Rochester, New York, Hsinchu, Taiwan and Japan. As a result of these actions, certain assets were impaired or were written off entirely and restructuring and other charges were taken in 2013. All material assets of these operations were sold or licensed to a third party in December 2014 generating a gain of $7.6 million which is included in discontinued operations. The business discussed above is considered discontinued operations, and accordingly, the Company has reported the results of operations and financial position of these businesses in discontinued operations within all statements of operations presented and the current balance sheet. The results from discontinued operations were as follows (in thousands): Years Ended December 31, 2016 2015 2014 Revenue: Product and service revenues $ — $ — $ 32 Total revenue — — 32 Operating expenses: Cost of revenue — — 21 Research, development and other related costs — — 6,190 Selling, general and administrative — 389 6,254 Restructuring, impairment of long-lived assets and other charges and gain on sale of patents — (371 ) (3,178 ) (1 ) Impairment of goodwill — — — Total operating expenses — 18 9,287 Other income and (expense), net — — 629 Operating loss before taxes — (18 ) (8,626 ) Expense (benefit) from income taxes — 83 (4,137 ) Net loss from discontinued operations $ — $ (101 ) $ (4,489 ) (1) As noted above, the Company underwent restructuring activities in 2014. Additionally, the Company sold assets and the proceeds are netted against expenses. There were no assets or liabilities associated with discontinued operations at December 31, 2016 or 2015. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE The Company follows the authoritative guidance fair value measurement and the fair value option for financial assets and financial liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets. Level 2 Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. When applying fair value principles in the valuation of assets, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. We calculate the fair value of our Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs. There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2015 and December 31, 2016. The following is a list of the Company’s assets required to be measured at fair value on a recurring basis and where they were classified within the hierarchy as of December 31, 2016 (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities Money market funds (1) $ 14,146 $ 14,146 $ — $ — Corporate bonds and notes (2) 36,502 — 36,502 — Treasury and agency notes and bills (2) 5,972 — 5,972 — Commercial paper (2) 5,216 — 5,216 — Total Assets $ 61,836 $ 14,146 $ 47,690 $ — The following footnotes indicate where the noted items were recorded in the Consolidated Balance Sheet at December 31, 2016: (1) Reported as cash and cash equivalents. (2) Reported as short-term investments. The Company also has outstanding debt at December 31, 2016 that is considered a level 2 liability and is measured at fair value on a recurring basis. See Note 10 "Debt" for additional information. At December 31, 2016, the fair value of our debt is not materially different than the outstanding principal amount. The following is a list of the Company’s assets required to be measured at fair value on a recurring basis and where they were classified within the hierarchy as of December 31, 2015 (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities Money market funds (1) $ 715 $ 715 $ — $ — Corporate bonds and notes (2) 256,182 — 256,182 — Municipal bonds and notes (2) 70,703 — 70,703 — Treasury and agency notes and bills (2) 26,880 — 26,880 — Commercial paper (3) 5,380 — 5,380 — Total Assets $ 359,860 $ 715 $ 359,145 $ — The following footnotes indicate where the noted items were recorded in the Consolidated Balance Sheet at December 31, 2015: (1) Reported as cash and cash equivalents. (2) Reported as short-term investments. (3) Reported as either cash and cash equivalents or short-term investments. Non-Recurring Fair Value Measurements The following table represents the activity in level 3 assets (in thousands): Assets held for sale Assets included in discontinued operations and held for sale Other Balance at December 31, 2014 $ — $ — $ 4,280 Assets transferred — — — Assets sold — — — Assets received — — — Balance at December 31, 2015 $ — $ — $ 4,280 Assets transferred — — — Assets sold — — — Assets received — — — Balance at December 31, 2016 $ — $ — $ 4,280 (1 ) (1) This amount represents the value of the patents that were received as part of licensing settlements with customers. These assets were valued using a methodology based on an arms-length purchase price of bulk patent assets, with adjustments based on limited pick rights, the total available market, and remaining average patent life. The value above is gross and the accumulated amortization to date is $1.6 million . |
Business Combinations Business
Business Combinations Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS DTS, Inc. On December 1, 2016, the Company completed its acquisition of DTS, Inc. ("DTS"), pursuant to the Agreement and Plan of Merger (the "Merger Agreement"), dated as of September 19, 2016, among Tessera Technologies, Inc. (“Tessera”), DTS, the Company, Tempe Merger Sub Corporation (“Parent Merger Sub”) and Arizona Merger Sub Corporation (“Company Merger Sub,” and together with Parent Merger Sub, the “Merger Subs”). On December 1, 2016, Tessera implemented a holding company reorganization whereby Parent Merger Sub merged with and into Tessera (the “Parent Merger”), with Tessera as the surviving corporation, and thereafter Company Merger Sub merged with and into DTS (the “Company Merger” and, together with the Parent Merger, the “Mergers”), with DTS as the surviving corporation. As a result of the Mergers, both DTS and Tessera became wholly owned subsidiaries of the Company. Following the Parent Merger, the Company became the successor issuer to Tessera, a Delaware corporation, pursuant to Rule 12g-3(a) promulgated under the Securities Exchange Act of 1934, as amended. DTS is a premier audio technology solutions provider for high-definition entertainment experiences. DTS's audio solutions are designed to enable recording, delivery and playback of simple, personalized, and immersive high-definition audio and are incorporated by hundreds of licensee customers around the world into an array of consumer electronics devices, including televisions, personal computers, smartphones, tablets, automotive audio systems, digital media players, set-top-boxes, soundbars, wireless speakers, video game consoles, Blu-ray Disc players, audio/video receivers, DVD-based products, and home theater systems. The Company expects the transaction to combine DTS's advanced audio technologies with the Company's existing complementary products, technologies, customer channels and intellectual property assets to enable the creation of an expanded, integrated platform to invent the future of smart sight and sound. At the effective time of the Parent Merger, each share of Tessera common stock was converted into an equivalent corresponding share of Company common stock, having the same designations, rights, powers and preferences and the qualifications, limitations and restrictions as the corresponding share of Tessera common stock being converted. Accordingly, upon consummation of the Parent Merger, Tessera’s stockholders immediately prior to the consummation of the Parent Merger became stockholders of the Company. The stockholders of Tessera will not recognize gain or loss for U.S. federal income tax purposes upon the conversion of their shares in the Parent Merger. The Parent Merger was conducted pursuant to Section 251(g) of the General Corporation Law of the State of Delaware (the “DGCL”), which provides for the formation of a holding company without a vote of the stockholders of the constituent corporation. The conversion of Tessera common stock occurred automatically without an exchange of stock certificates. After the Parent Merger, unless exchanged, stock certificates that previously represented shares of Tessera common stock now represent the same number of shares of Company common stock. At the effective time of the Company Merger: (i) each outstanding share of DTS common stock was converted into the right to receive $42.50 in cash; (ii) each then outstanding, in-the-money, vested option to purchase shares of DTS common stock was canceled, and the holder of such option was entitled to receive cash equal to $42.50 less the exercise price of each option multiplied by the number of options outstanding less applicable taxes; (iii) each then outstanding vested DTS restricted stock unit award was canceled, and the holder of such restricted stock unit award was entitled to receive cash equal to $42.50 per unit outstanding less applicable taxes; and (iv) each then outstanding DTS performance-based restricted stock unit award (treating for this purpose any performance-based vesting condition to which such DTS performance-based restricted stock unit award was subject as of the effective time of the acquisition as having been attained at the “target level”) became fully vested and canceled, and the holder of such performance-based restricted stock unit award was entitled to receive cash equal to $42.50 per unit outstanding less applicable taxes. In addition, at the effective time of the acquisition: (i) each then outstanding, out-of-the-money, vested or unvested option and each then outstanding, in-the-money, unvested option to purchase shares of DTS common stock was assumed by the Company and converted into an option to purchase shares of the Company's common stock pursuant to the exchange ratio set forth in the Merger Agreement; and (ii) each then outstanding unvested DTS restricted stock unit award was assumed by the Company and converted into restricted stock unit award of the Company pursuant to the exchange ratio set forth in the Merger Agreement, in each case with substantially the same terms and conditions as applied to such DTS equity award immediately prior to the effective time of the acquisition. Merger Consideration The Company funded the acquisition with a combination of cash and investments and debt proceeds from the new Credit Agreement (see Note 10 - " Debt" for additional information). The aggregate consideration for the acquisition consisted of the following (in thousands): Cash paid for outstanding DTS common stock $ 764,331 Cash paid for payoff of existing DTS debt 128,855 Cash paid for vested DTS equity awards 48,395 Fair value of assumed DTS equity awards relating to pre-acquisition services 13,124 Aggregate purchase price $ 954,705 Preliminary Purchase Price Allocation The acquisition was accounted for under the acquisition method of accounting. The preliminary allocation of the purchase price, which was based on preliminary estimates and valuations of management, was (in thousands): Estimated Useful Life (years) Estimated Fair Value Cash and cash equivalents $ 53,377 Accounts receivable 27,114 Unbilled contracts receivable, short-term 52,845 Other current assets 5,269 Prepaid income taxes 3,278 Property and equipment 33,573 Goodwill 372,827 Identifiable intangible assets: Customer contracts and related relationships 3-7 281,569 Developed technology 5-6 143,639 Trademarks and tradenames 8 38,483 Noncompete agreements 1 2,231 In-process research and development (IPR&D) 3,156 Total identifiable intangible assets 469,078 Long-term deferred tax assets 637 Unbilled contracts receivable, long-term 12,464 Other assets 4,423 Accounts payable (4,006 ) Accrued liabilities (19,727 ) Deferred revenue (561 ) Income taxes payable (727 ) Long-term deferred tax liabilities (39,822 ) Other long-term liabilities (15,337 ) Aggregate purchase price $ 954,705 Customer contracts and related relationships represent existing contracts and relationships with customers or service providers in the home, automobile and mobile markets, broadcast equipment manufacturers and radio broadcasters, content distributors, and others. Developed technology relates to the underlying DTS audio and HD Radio technology solutions and existing features that have reached technological feasibility. Tradenames are primarily related to various DTS and HD Radio consumer brand names. The discount rate utilized to value these intangible assets was 14.0% . IPR&D represents assets that are currently being developed and have not yet been completed or fully commercialized. The discount rate utilized to value IPR&D was 14.5% , which reflects higher technological and operational risk associated with IPR&D assets. The Company will test these intangible assets for impairment in accordance with its policy in Note 2 - " Summary of Significant Accounting Policies. " The fair values of the customer contracts and related relationships were determined using the multi-period excess earnings and replacement cost methods. The fair values of the developed technology, tradenames and IPR&D were determined using the relief-from-royalty method. The discount rate was determined after consideration of the overall enterprise rate of return and the relative risk and importance of the assets to the generation of future cash flows. Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and identifiable intangible assets, and it includes the value of synergies, such as anticipated reduced operating costs, between DTS and the Company and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset. All of the goodwill from the acquisition is assigned to the Company's Product Licensing reporting unit. None of the goodwill recognized upon the acquisition is deductible for tax purposes. Certain amounts of assets and liabilities recorded in the preliminary purchase price allocation above are provisional and are subject to certain working capital and other adjustments, which could potentially be material. The Company has not yet obtained all available information necessary to finalize the measurement of all assets and liabilities acquired. The measurement of unbilled contracts receivable remains provisional, as the Company has not yet obtained all the necessary information to determine the final amounts of cash collected from customers that relate to products manufactured prior to December 1, 2016. The measurement of acquired deferred income taxes has not been finalized as the Company is currently in the process of obtaining the necessary information to complete the analysis related to certain acquired tax attributes. In addition, the Company is waiting on information related to certain pre-acquisition income tax filing positions of DTS that will assist the Company in finalizing the amounts to record for the acquired deferred income taxes. The Company is also waiting on information to assist the Company in finalizing the recording of any assumed uncertain income tax positions. The final allocation of the purchase price is expected to be completed as soon as practicable, but no later than one year from the date of acquisition. Certain cash collections from licensing arrangements acquired from DTS received or expected to be received subsequent to the acquisition date of December 1, 2016 resulted from products manufactured or sold prior to December 1, 2016. The related customer reporting is typically not received until the quarter after manufacture or sale. Due to the application of the acquisition method of accounting, the Company recorded an estimated unbilled contract receivable of $25.3 million in the purchase price allocation, representing the estimate of revenue earned prior to December 1, 2016 that is expected to be reported and paid subsequent to December 1, 2016. This amount was recorded based on initial estimates, and is subject to change once the Company receives all customer royalty reports relating to manufacturing or sales activity prior to December 1, 2016. Under existing minimum guarantee arrangements acquired from DTS, there were approximately $41.7 million of unbilled remaining payments expected to be collected subsequent to the acquisition date, with a vast majority of payments expected to be collected by the end of 2018. Under the acquisition method of purchase accounting, the Company calculated the fair value of these remaining payments to be $40.0 million , and recorded this amount as acquired receivables in the purchase price allocation. Future collections under these contracts will be recorded as a reduction to unbilled contract receivables. Transaction costs to consummate the Mergers, primarily adviser and legal fees, were recognized separately from the business combination and totaled $11.1 million , which is reflected in selling, general and administrative expense on the consolidated statement of operations for the year ended December 31, 2016. In connection with the Mergers, the Company assumed unvested DTS equity awards with a fair value of $45.4 million , of which $13.1 million related to pre-acquisition services and was included in the purchase price, and $32.3 million related to post-acquisition services. The fair value relating to post-acquisition services will be amortized as stock-based compensation expense over the remaining service period for each award. For the year ended December 31, 2016, the Company recognized $4.9 million and $1.7 million in selling, general and administrative and research and development expense, respectively, associated with the unvested DTS equity awards assumed. The fair value of the assumed unvested DTS equity awards was calculated using the same method used to calculate the fair value of all of the Company's stock awards discussed in Note 2 - " Summary of Significant Accounting Policies ." Supplemental Pro Forma Information The following unaudited pro forma financial information assumes the companies were combined as of January 1, 2015 and includes the impact of purchase accounting and other material nonrecurring adjustments directly attributable to the acquisition. The unaudited pro forma financial information as presented below is for informational purposes only and is based on estimates and assumptions that have been made solely for purposes of developing such pro forma information. This is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2015, nor is it necessarily indicative of future results. Consequently, actual results could differ materially from the unaudited pro forma financial information presented below. The following table presents the pro forma operating results as if DTS had been included in the Company's consolidated statements of operations as of January 1, 2015 (unaudited, in thousands): Revenue Earnings Actual for the year ended December 31, 2015 $ 273,300 $ 117,016 Actual for the year ended December 31, 2016 $ 259,565 (1) $ 56,089 (1) Supplemental pro forma for the year ended December 31, 2015 (unaudited) $ 358,911 (2) $ (38,139 ) (2)(3)(4) Supplemental pro forma for the year ended December 31, 2016 (unaudited) $ 434,971 (2) $ 17 (2)(3)(4) (1) Unless otherwise stated, the Company's financial results for 2016 include DTS from December 1, 2016 to December 31, 2016. Revenue recognized from licensing agreements acquired from DTS amounted to $0.2 million for the year ended December 31, 2016. Earnings of DTS included in the consolidated statement of operations for the year ended December 31, 2016 was a loss of $22.7 million . (2) Reflects estimated reduction to historical combined revenue of $52.6 million and $12.6 million for 2015 and 2016, respectively, primarily relating to the estimated impact of purchase accounting on acquired minimum guarantee arrangements and per-unit royalties associated with licensee products manufactured or sold prior to January 1, 2015. (3) Reflects the following pro forma adjustments to historical combined expenses (unaudited, in thousands): 2015 2016 Estimated increase in combined amortization and depreciation expense due to acquired intangible assets and property and equipment measured at fair value $ 75,975 $ 59,092 Estimated increase in combined stock-based compensation expense due to assumed DTS equity awards measured at fair value $ 6,888 $ 4,781 Estimated increase in combined interest and other expense, net due to estimated increase in interest expense (and amortization of debt issuance costs) from new debt obtained to finance the Transaction and estimated lower interest income from lower investment holdings $ 28,964 $ 24,806 Elimination of Tessera and DTS non-recurring transaction costs reflected in historical results $ — $ (27,900 ) Estimated increase (decrease) to combined expense for non-recurring employee-related costs resulting from the acquisition, including severance and retention bonus expense $ 21,100 $ (3,436 ) (4) The tax effects of the pro forma adjustments are estimated using a weighted-average statutory tax rate of 23% . Ziptronix On August 27, 2015, the Company completed its acquisition of Ziptronix, Inc. (“Ziptronix”) for approximately $39 million in cash, net of $1.5 million in working capital (which includes $1.9 million in cash) acquired. Approximately $0.7 million of the consideration was withheld until certain employees complete the term of their employment obligations. The acquisition expands the Company's existing advanced packaging capabilities by adding a low-temperature wafer bonding technology platform that will accelerate delivery of 2.5D and 3D-IC solutions to semiconductor industry customers. Ziptronix’s patented ZiBond® direct bonding and DBI® hybrid bonding technologies deliver scalable, low total cost-of-ownership manufacturing solutions for 3D stacking. Ziptronix’s intellectual property has been licensed to Sony Corporation for volume production of CMOS image sensors. Ziptronix’s technology is also relevant to next-generation stacked memory, 2.5D FPGAs, RF Front-End and MEMS devices, among other semiconductor applications. The significant future market opportunity for the Company to own Ziptronix contributed to a purchase price in excess of the fair value of the underlying net assets and identified intangible assets acquired from Ziptronix and, as a result, the Company has recorded goodwill in connection with this transaction. The business combination transaction was accounted for using the acquisition method of accounting. Purchase Price Allocation In accordance with the accounting guidance on business combinations, the total purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. Based upon the fair values acquired, the purchase price allocation is as follows (in thousands): Estimated Useful Life (Years) Net tangible assets and liabilities: Unbilled contract asset $ 3,380 Deferred tax assets and liabilities, net (7,671 ) (1 ) Other accrued liabilities (385 ) $ (4,676 ) Identified intangible assets: Patents/existing technology $ 32,300 5-8 Trade name 1,300 8 Customer relationships 1,600 2 Goodwill 8,037 (2) N/A $ 43,237 Total purchase price $ 38,561 (1) The $7.7 million of deferred tax assets and liabilities, net is the anticipated tax effect from the amortization of identified intangible assets acquired, net of tax benefits from operating losses the Company expects to utilize. (2) The Company does not anticipate that any of this goodwill will be deductible for tax purposes. The following unaudited pro forma financial information assumes the companies were combined as of January 1, 2014. The unaudited pro forma financial information as presented below is for informational purposes only and is based on estimates and assumptions that have been made solely for purposes of developing such pro forma information. This is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2014, nor is it necessarily indicative of future results. Consequently, actual results could differ materially from the unaudited pro forma financial information presented below. The following table presents the pro forma operating results as if Ziptronix had been included in the Company's consolidated statements of operations as of January 1, 2014 (unaudited, in thousands): Revenue Earnings Actual for the year ended December 31, 2014 $ 278,807 $ 170,454 Actual for the year ended December 31, 2015 $ 273,300 $ 117,016 Supplemental pro forma for the year ended December 31, 2014 (unaudited) $ 282,637 $ 167,165 (1) Supplemental pro forma for the year ended December 31, 2015 (unaudited) $ 304,615 (3) $ 137,595 (1) (2) (3) (1) Includes $5.6 million in pre-tax amortization costs related to the intangible assets acquired. (2) Excludes $3.1 million in acquisition related costs, primarily financial advisor fees and contract settlement costs incurred by Ziptronix in connection with the acquisition. (3) Almost all of the revenue and earnings related to Ziptronix in this period is the result of one -time license fee payments during the three months ended March 31, 2015 (unaudited). |
Goodwill And Identified Intangi
Goodwill And Identified Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Identified Intangible Assets | GOODWILL AND IDENTIFIED INTANGIBLE ASSETS In 2016, the Company assessed goodwill impairment for its reporting units. As of September 30, 2016, the Company assessed goodwill impairment for its reporting units by performing a qualitative assessment and no impairment of goodwill was indicated as the Company concluded that it was more likely than not that the fair value of its reporting units exceeded its carrying amount. In addition, other than the acquisition of DTS which the Company believes did not impact its prior goodwill valuation, there have been no significant events or circumstances affecting the valuation of goodwill subsequent to the qualitative assessment performed in the fourth quarter of the year ended December 31, 2016. The changes to the carrying value of goodwill from January 1, 2015 through December 31, 2016 are reflected below (in thousands): December 31, 2014 $ 2,099 Goodwill acquired through the acquisition of Ziptronix, Inc. (1) 8,037 December 31, 2015 $ 10,136 Goodwill acquired through the acquisition of DTS (1) 372,827 December 31, 2016 $ 382,963 (2) (1) For more information regarding these transactions, see Note 8 - "Business Combinations." (2) Of this amount, approximately $375.3 million is allocated to our Product Licensing reporting unit and approximately $7.7 million is allocated to our Semiconductor and IP Licensing reporting unit. Identified intangible assets consisted of the following (in thousands): December 31, 2016 December 31, 2015 Average Life (Years) Gross Assets Accumulated Amortization Net Gross Accumulated Net Acquired patents / core technology 3-15 $ 140,744 $ (96,896 ) $ 43,848 $ 140,345 $ (79,128 ) $ 61,217 Existing technology (1) 5-10 203,442 (27,315 ) 176,127 50,620 (20,182 ) 30,438 Customer contracts and related relationships(2) 3-9 291,769 (14,011 ) 277,758 10,200 (7,792 ) 2,408 Trademarks/trade name (3) 4-10 40,083 (1,138 ) 38,945 1,600 (574 ) 1,026 Non-competition agreements (4) 1 2,231 (186 ) 2,045 — — — Total amortizable intangible assets 678,269 (139,546 ) 538,723 202,765 (107,676 ) 95,089 IPR&D (4) 3,156 — 3,156 Total intangible assets $ 681,425 $ (139,546 ) $ 541,879 $ 202,765 $ (107,676 ) $ 95,089 (1) In 2016, $143.6 million of existing technology was acquired through the acquisition of DTS. In 2015, $31.7 million of existing technology was acquired through our acquisition of Ziptronix. (2) In 2016, $281.6 million of customer contracts was acquired through the acquisition of DTS. (3) In 2016, $38.5 million of trademarks/trade names was acquired through the acquisition of DTS. (4) In 2016, amount was acquired through the acquisition of DTS. For more information regarding these acquisitions, see Note 8 - " Business Combinations ." Amortization expense for the years ended December 31, 2016, 2015, and 2014 amounted to $31.9 million , $20.6 million and $18.5 million , respectively. As of December 31, 2015, the estimated future amortization expense of intangible assets is as follows (in thousands): 2017 $ 111,813 2018 107,396 2019 98,310 2020 86,595 2021 78,933 Thereafter 55,676 $ 538,723 |
Debt (Notes)
Debt (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | DEBT On December 1, 2016, in connection with the consummation of the acquisition of DTS, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, Royal Bank of Canada, as administrative agent and collateral agent, and the lenders party thereto. The Credit Agreement provides for a $600 million seven-year term B loan facility (the “Term B Loan Facility”). The interest rates applicable to loans outstanding under the Credit Agreement with respect to the Term B Loan Facility are (i) until the delivery of financial statements for the first full fiscal quarter ending after December 1, 2016 equal to, at the Company's option, either a base rate plus a margin of 2.25% per annum or LIBOR plus a margin of 3.25% per annum (the “Effective Date Margin”) and (ii) thereafter, (x) the Effective Date Margin or (y) so long as the ratio of consolidated indebtedness of the Company (minus all unrestricted cash and cash equivalents) to consolidated EBITDA (subject to other customary adjustments) is equal to or less than 1.50 to 1.00 , equal to, at the Company's option either a base rate plus a margin of 2.00% per annum or LIBOR plus a margin of 3.00% per annum. Commencing March 31, 2017, the Term B Loan Facility will amortize in equal quarterly installments in aggregate quarterly amounts equal to 0.25% of the original principal amount of the Term B Loan Facility, with the balance payable on the maturity date of the Term B Loan Facility (in each case subject to adjustment for prepayments). The Term B Loan Facility matures on November 30, 2023 . Upon the closing of the Credit Agreement, the Company borrowed $600 million under the Term B Loan facility. Net proceeds were used on December 1, 2016, together with cash and cash equivalents, to finance the acquisition of DTS. The obligations under the Credit Agreement are guaranteed by the Company pursuant to the Guaranty (the “Guaranty”), dated December 1, 2016, among the Company, Royal Bank of Canada, as administrative agent, and the other subsidiary guarantors party thereto. The obligations under the Credit Agreement are guaranteed by substantially all of the assets of the Company pursuant to the Security Agreement (the “Security Agreement”), dated December 1, 2016, among the Company, Royal Bank of Canada, as collateral agent, and the other pledgors party thereto. The Credit Agreement contains customary events of default, upon the occurrence of which, after any applicable grace period, the lenders will have the ability to accelerate all outstanding loans thereunder. The Credit Agreement contains customary representations and warranties and affirmative and negative covenants that, among other things, restrict the ability of the Company to create or incur certain liens, incur or guarantee additional indebtedness, merge or consolidate with other companies, transfer or sell assets and make restricted payments. These covenants are subject to a number of limitations and exceptions set forth in the Credit Agreement. There were no compliant requirements as of December 31, 2016. At December 31, 2016, $600 million was outstanding with an interest rate, including the amortization of debt issuance costs, of 4.4% . Interest is payable quarterly. There were also $16.8 million of unamortized debt issuance costs. Interest expense for 2016 was $2.4 million which includes $0.2 million in amortized debt issuance costs. As of December 31, 2016, future minimum principal payments for long-term debt, including the current portion, are summarized as follows (in thousands): 2017 $ 6,000 2018 6,000 2019 6,000 2020 6,000 2021 6,000 Thereafter 570,000 Total $ 600,000 Additional payments of debt principal must be made in the event of certain working capital conditions as outlined in the Credit Agreement. There are no penalties for these payments. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NET INCOME (LOSS) PER SHARE The Company has a share-based compensation plan under which employees may be granted share-based awards including shares of restricted stock and restricted stock units ("RSUs"). Non-forfeitable dividends are paid on unvested shares of restricted stock. No dividends are accrued or paid on unvested RSUs. As such, shares of restricted stock are considered participating securities under the two-class method of calculating earnings per share. The two-class method of calculating earnings per share did not have a material impact on the Company’s earnings per share calculation as of December 31, 2016, 2015 and 2014. The following table sets forth the computation of basic and diluted shares (in thousands): Years Ended December 31, 2016 2015 2014 Weighted average common shares outstanding 49,203 51,841 52,898 Unvested common shares subject to repurchase (16 ) (39 ) (79 ) Total common shares-basic 49,187 51,802 52,819 Effect of dilutive securities: Options 357 343 346 Restricted stock awards and units 646 441 398 Total common shares-diluted 50,190 52,586 53,563 Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period, excluding any unvested restricted stock awards that are subject to repurchase. Diluted net income (loss) per share is computed using the treasury stock method to calculate the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential dilutive common shares include unvested restricted stock awards and units and incremental common shares issuable upon the exercise of stock options, less shares from assumed proceeds. The assumed proceeds calculation includes actual proceeds to be received from the employee upon exercise, the average unrecognized stock compensation cost during the period and any tax benefits that will be credited upon exercise to additional paid-in capital. For the years ended December 31, 2016, 2015 and 2014 in the calculation of net income per share, 0.7 million , 0.1 million and 1.5 million shares, respectively, subject to stock options and restricted stock awards and units were excluded from the computation of diluted net income (loss) per share as they were anti-dilutive. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Stock Repurchase Programs In August 2007, the Company’s Board of Directors (“the Board”) authorized a plan to repurchase the Company’s outstanding shares of common stock dependent on market conditions, share price and other factors. As of December 31, 2016, the total amount authorized for repurchases is $450.0 million . As of December 31, 2016, the Company had repurchased a total of approximately 10,488,000 shares of common stock, since inception of the plan, at an average price of $27.83 per share for a total cost of $291.8 million . As of December 31, 2015, the Company had repurchased a total of approximately 8,234,000 shares of common stock, since inception of the plan, at an average price of $27.22 per share for a total cost of $224.1 million . The shares repurchased are recorded as treasury stock and are accounted for under the cost method. No expiration date has been specified for this plan. As of December 31, 2016, the total amount available for repurchase was $158.2 million . The Company plans to continue to execute authorized repurchases from time to time under the plan. Stock Option Plans The 2003 Plan In February 2003, the Board adopted and the Company’s stockholders approved the 2003 Equity Incentive Plan (“2003 Plan”). Under the 2003 Plan, incentive stock options may be granted to the Company’s employees at an exercise price of no less than 100% of the fair value on the date of grant, and non-statutory stock options may be granted to the Company’s employees, non-employee directors and consultants at an exercise price of no less than 85% of the fair value. In both cases, when the optionees own stock representing more than 10% of the voting power of all classes of stock of the Company, the exercise price shall be no less than 110% of the fair value on the date of grant. Options, restricted stock awards, and restricted stock units granted under this plan generally have a term of ten years from the date of grant and vest over a four -year period. Restricted stock, performance awards, dividend equivalents, deferred stock, stock payments and stock appreciation rights may also be granted under the 2003 Plan either alone, in addition to, or in tandem with any options granted thereunder. Restricted stock awards and units are full-value awards that reduce the number of shares reserved for grant under this plan by one and one-half shares for each share granted. The vesting criteria for restricted stock awards and units is generally the passage of time or meeting certain performance-based objectives, and continued employment through the vesting period generally over four years. As of December 31, 2016, there were approximately 3.4 million shares reserved for future grant under this plan. A summary of the stock option activity is presented below (in thousands, except per share amounts): Options Outstanding Number of Shares Subject to Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance at December 31, 2013 3,917 $18.37 Options granted 220 $22.29 Options exercised (1,797 ) $18.13 Options canceled / forfeited / expired (724 ) $18.00 Balance at December 31, 2014 1,616 $19.34 Options granted 84 $36.60 Options exercised (465 ) $19.35 Options canceled / forfeited / expired (93 ) $19.04 Balance at December 31, 2015 1,142 $20.63 Options assumed 586 $29.05 Options exercised (350 ) $20.01 Options canceled / forfeited / expired (46 ) $23.25 Balance at December 31, 2016 1,332 $24.41 5.65 $ 26,366 Vested and expected to vest at December 31, 2016 1,274 5.56 $ 25,230 Exercisable at December 31, 2016 813 4.67 $ 15,039 The following table summarizes information about stock options outstanding and exercisable under all of the Company’s plans at December 31, 2016: Options Outstanding Options Exercisable Range of Exercise Prices per Share Number Outstanding (in thousands) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price per Share Number Exercisable (in thousands) Weighted Average Exercise Price per Share $12.52 - $18.65 139 5.83 $ 16.18 83 $ 14.97 $18.74 - $18.76 15 5.18 $ 18.75 7 $ 18.74 $18.84 - $18.84 367 6.94 $ 18.84 258 $ 18.84 $18.89 - $19.33 141 3.73 $ 19.22 76 $ 19.24 $19.34 - $20.43 201 5.49 $ 19.87 98 $ 19.93 $20.63 - $26.16 145 6.62 $ 22.86 58 $ 23.44 $26.34 - $38.65 121 8.02 $ 34.64 30 $ 34.52 $40.87 - $40.87 4 1.18 $ 40.87 4 $ 40.87 $41.15 - $41.15 10 3.33 $ 41.15 10 $ 41.15 $43.77 - $43.77 189 2.61 $ 43.77 189 $ 43.77 $12.52 - $43.77 1,332 5.65 $ 24.41 813 $ 25.71 Restricted Stock Awards and Units Information with respect to outstanding restricted stock awards and units as of December 31, 2016 is as follows (in thousands, except per share amounts): Restricted Stock and Restricted Stock Units Number of Shares Subject to Time- based Vesting Number of Shares Subject to Performance- based Vesting Total Number of Shares Weighted Average Grant Date Fair Value Per Share Balance at December 31, 2013 737 348 1,085 $ 18.46 Awards and units granted 222 309 531 $ 22.41 Awards and units vested / earned (289 ) — (289 ) $ 18.85 Awards and units canceled / forfeited (168 ) (24 ) (192 ) $ 17.91 Balance at December 31, 2014 502 633 1,135 $ 20.30 Awards and units granted 472 90 562 $ 39.77 Awards and units vested / earned (240 ) (144 ) (384 ) $ 20.17 Awards and units canceled / forfeited (44 ) (60 ) (104 ) $ 21.54 Balance at December 31, 2015 690 519 1,209 $ 29.28 Awards and units granted 596 86 682 $ 30.85 Awards assumed 925 — 925 $ 40.13 Awards and units vested / earned (398 ) (84 ) (482 ) $ 32.18 Awards and units canceled / forfeited (117 ) (137 ) (254 ) $ 29.64 Balance at December 31, 2016 1,696 384 2,080 $ 33.91 Performance Awards and Units Performance awards and units may be granted to employees or consultants based upon, among other things, the contributions, responsibilities and other compensation of the particular employee or consultant. The value and the vesting of such performance awards and units are generally linked to one or more performance goals or other specific performance goals determined by the Company, in each case on a specified date or dates or over any period or periods determined by the Company, and range from zero to 100 percent of the grant. Employee Stock Purchase Plans In August 2003, the Board adopted the 2003 Employee Stock Purchase Plan (the "ESPP"), which was approved by the Company’s stockholders in September 2003 and became effective February 1, 2004. Subsequently, the Board adopted the International Employee Stock Purchase Plan (the “International ESPP”) in June 2008. The ESPP has a series of consecutive, overlapping 24-month offering periods. The first offering period commenced February 1, 2004, the effective date of the ESPP, as determined by the Board of Directors. Individuals who own less than 5% of the Company’s voting stock, are scheduled to work more than 20 hours per week and whose customary employment is for more than five months in any calendar year may join an offering period on the first day of the offering period or the beginning of any semi-annual purchase period within that period. Individuals who become eligible employees after the start date of an offering period may join the ESPP at the beginning of any subsequent semi-annual purchase period. Participants may contribute up to 20% of their cash earnings through payroll deductions, and the accumulated deductions will apply to the purchase of shares on each semi-annual purchase date. The purchase price per share will equal 85% of the fair market value per share on the participant’s entry date into the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date. An eligible employee’s right to buy the Company’s common stock under the ESPP may not accrue at a rate in excess of $25,000 of the fair market value of such shares per calendar year for each calendar year of an offering period. If the fair market value per share of the Company’s common stock on any purchase date is less than the fair market value per share on the start date of the 24 -month offering period, then that offering period will automatically terminate and a new 24 -month offering period will begin on the next business day. All participants in the terminated offering will be transferred to the new offering period. As of December 31, 2016, there were approximately 407,000 shares reserved for grant under the ESPP and the International ESPP, collectively. Dividends Stockholders of the Company’s common stock are entitled to receive dividends when declared by the Company’s Board of Directors. The Company began paying a $0.10 quarterly dividend in the second quarter of 2012 and also paid special dividends in 2013 and 2014. In February 2015, the Company doubled the quarterly dividend to $0.20 per share effective in March 2015. Dividends declared were $0.80 , $0.80 and $0.92 per common share in 2016, 2015 and 2014, respectively. Assumed Plans Certain stock awards plans were assumed in the DTS acquisition. The awards outstanding under these plans are included in the tables above. No future grants will be made under these plans. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | STOCK-BASED COMPENSATION EXPENSE The effect of recording stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands): Years Ended December 31, 2016 2015 2014 Cost of revenue $ — $ — $ 18 Research, development and other related costs 7,104 4,005 2,823 Selling, general and administrative 13,997 7,512 10,428 Total stock-based compensation expense 21,101 11,517 13,269 Tax effect on stock-based compensation expense (6,314 ) (3,107 ) (1,968 ) Net effect on net income $ 14,787 $ 8,410 $ 11,301 Stock-based compensation expense categorized by various equity components for the years ended December 31, 2016, 2015 and 2014 is summarized in the table below (in thousands): Years Ended December 31, 2016 2015 2014 Employee stock options $ 3,249 $ 2,676 $ 3,336 Restricted stock awards and units 17,024 8,232 9,322 Employee stock purchase plan 828 609 611 Total stock-based compensation expense $ 21,101 $ 11,517 $ 13,269 In December 2016, the Company assumed and granted stock awards covering 682,000 shares in connection with the DTS acquisition. During the years ended December 31, 2015 and 2014, the Company granted stock options covering 84,000 and 220,000 shares, respectively. The 2016, 2015 and 2014 estimated per share fair value of those grants was $15.87, $8.57 and $5.71 , respectively, before estimated forfeitures. The total fair value of restricted stock awards vested during the years ended December 31, 2016, 2015 and 2014 was $15.9 million , $7.7 million and $5.5 million , respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $5.5 million , $9.3 million and $13.3 million , respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. As of December 31, 2016, the unrecognized stock-based compensation balance after estimated forfeitures related to unvested stock options was $2.2 million to be recognized over an estimated weighted average amortization period of 1.2 years and $33.7 million related to restricted stock awards and units, including performance-based awards and units, to be recognized over an estimated weighted average amortization period of 2.4 years . As of December 31, 2015, the unrecognized stock-based compensation balance after estimated forfeitures related to unvested stock options was $3.0 million to be recognized over an estimated weighted average amortization period of 2.0 years and $11.1 million related to restricted stock awards and units, including performance-based awards and units, to be recognized over an estimated weighted average amortization period of 2.2 years . The Company uses the Black-Scholes option pricing model to determine the estimated fair value of options. The fair value of each option grant is determined on the date of grant and the expense is recorded on a straight-line basis. The assumptions used in the model include expected life, volatility, risk-free interest rate, and dividend yield. The Company’s determinations of these assumptions are outlined below. Expected life – The expected life assumption is based on analysis of the Company’s historical employee exercise patterns. The expected life of options granted under the ESPP represents the offering period of two years. Volatility – Volatility is calculated using the historical volatility of the Company’s common stock for a term consistent with the expected life. Historical volatility of the Company’s common stock is also utilized for the ESPP. Risk-free interest rate – The risk-free interest rate assumption is based on the U.S. Treasury rate for issues with remaining terms similar to the expected life of the options. Dividend yield – Expected dividend yield is calculated based on cash dividends declared by the Board for the previous four quarters and dividing that result by the average closing price of the Company’s common stock for the quarter. Cash dividends are not paid on options, restricted stock units or unvested restricted stock awards. In addition, the Company estimates forfeiture rates. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Historical data is used to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest. The following assumptions were used to value the awards granted: Years Ended December 31, 2016 2015 2014 Expected life (in years) 3.8 3.8 4.9 Risk-free interest rate 1.7 % 1.1 - 1.4% 1.6 - 1.8% Dividend yield 2.4 % 2.1 - 2.9% 3.4 - 4.1% Expected volatility 29.0 % 34.0 - 35.6% 37.3 - 41.4% The following assumptions were used to value the ESPP shares: Years Ended December 31, 2016 2015 2014 Expected life (years) 2.0 2.0 2.0 Risk-free interest rate 0.5 - 0.8% 0.4 - 0.7% 0.3 - 0.5% Dividend yield 2.4 - 3.0% 2.1 - 3.4% 3.4 - 3.5% Expected volatility 30.0 % 29.7 - 30.0% 27.6 - 30.6% For the years ended December 31, 2016, 2015 and 2014, an aggregate of 89,000 , 77,000 and 137,000 common shares, respectively, were purchased pursuant to the ESPP. Modifications From time to time, the Company enters into consulting agreements with its departing employees. Some of these agreements may include continued vesting of the departing employees’ stock awards and an extension of the exercise period from the standard 90 days from employment termination date to the termination of the consulting agreement. As a result of modifications related to former employees, the Company incurred stock-based compensation expense of $0.3 million , and $(3.0) million for the years ended December 31, 2015 and 2014, respectively. There were no modifications in 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of total income (loss) before taxes from continuing operations are as follows (in thousands): Years ended December 31, 2016 2015 2014 U.S. $ 90,154 $ 151,862 $ 155,757 Foreign 561 13,772 11,489 Total income (loss) before taxes from continuing operations $ 90,715 $ 165,634 $ 167,246 The provision for (benefit from) income taxes consisted of the following (in thousands): Years ended December 31, 2016 2015 2014 Current: U.S. federal $ 9,564 $ 2,737 $ (797 ) Foreign 22,552 26,275 31,824 State and local 8 319 8 Total current 32,124 29,331 31,035 Deferred: U.S. federal 2,365 23,478 (38,732 ) Foreign 392 (4,138 ) — State and local (255 ) (154 ) — Total deferred 2,502 19,186 (38,732 ) Provision for (benefit from) income taxes $ 34,626 $ 48,517 $ (7,697 ) Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of the company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax assets Net operating loss carryforwards $ 40,969 $ 15,268 Research tax credit 9,642 5,438 Foreign tax credit 7,201 5,587 Expenses not currently deductible 5,193 12,453 Basis difference in fixed and intangible assets 3,529 4,227 Gross deferred tax assets 66,534 42,973 Valuation allowance (12,846 ) (13,852 ) Net deferred tax assets 53,688 29,121 Deferred tax liabilities Acquired intangible assets, domestic (70,338 ) Acquired intangible assets, foreign (13,045 ) (13,597 ) Unremitted earnings of foreign subsidiaries (129 ) (130 ) Net deferred tax assets (liabilities) $ (29,824 ) $ 15,394 At December 31, 2016 and 2015, the Company had a valuation allowance of $12.8 million and $13.9 million , respectively, related to federal, state, and foreign tax attributes that the Company believes to be not realizable on a more-likely-than-not basis. The $1.1 million decrease in valuation allowance is primarily related to expired state tax attributes and the tax effects of unrealized capital losses. The need for a valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be objectively verified. After considering both negative and positive evidence to assess the recoverability of the Company's net deferred tax assets during the 2016 year, the Company determined that it was more likely than not that it would not realize certain state deferred tax assets given the substantial amount of tax attributes that will be utilized to offset forecasted future tax liabilities. The Company will continue to monitor the likelihood that it will be able to recover the deferred tax assets in the future, including those for which a valuation allowance is still recorded. This determination includes objectively verifiable positive evidence that outweighs potential negative evidence. A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate is as follows: Years Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State, net of federal benefit (0.5 ) — — Stock-based compensation expense 2.0 0.5 0.3 Tax exempt interest (0.2 ) (0.1 ) — Research tax credit and other (1.2 ) (0.3 ) (0.3 ) Foreign withholding tax 24.7 15.7 18.8 Transaction costs 2.4 — — Foreign tax rate differential 0.4 (2.8 ) (2.2 ) Foreign tax credit (23.5 ) (15.3 ) (17.9 ) Change in valuation allowance — (3.0 ) (38.7 ) Others (0.9 ) (0.4 ) 0.4 Total 38.2 % 29.3 % (4.6 )% As of December 31, 2016, the Company had federal net operating loss carryforwards of approximately $104.2 million and state net operating loss carryforwards of approximately $108.1 million. Substantially all of the federal net operating loss carryforwards are carried over from acquired entities Ziptronix in 2015 and DTS in 2016. The state net operating loss carryforwards are carried over from acquired entities, Siimpel Corporation in 2010, Ziptronix in 2015 and DTS in 2016. The federal net operating loss carryforwards, if not utilized, will begin to expire on various dates beginning in 2024, and will continue to expire through 2034. The state net operating loss carryforwards, if not utilized, will begin to expire on various dates beginning in 2017, and will continue to expire through 2035. In addition, the Company has research tax credit carryforwards of approximately $6.7 million for federal purposes which were carried over from DTS and Ziptronix. The federal research tax credit will start to expire in 2020, and will continue to expire through 2035. The Company also has research tax credit carryforwards of approximately $10.7 million for state purposes and $0.7 million for foreign purposes, which will never expire. The Company has $8.8 million of foreign tax credit carryforwards which will begin to expire in 2019, and will continue to expire through 2024. Under the provisions of the Internal Revenue Code, substantial changes in the Company or its subsidiaries' ownership may limit the amount of net operating loss and research tax credit carryforwards that can be utilized annually in the future to offset taxable income. The need for a valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable; such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be objectively verified. As such, the Company determined that no valuation allowance is required on the majority of its U.S. federal deferred tax assets and it has recorded a valuation allowance on certain state deferred tax assets. The Company considers the earnings of certain foreign subsidiaries to be permanently reinvested outside the United States. The Company recognizes the earnings of these foreign subsidiaries to be indefinitely reinvested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and its specific plans for reinvestment of those subsidiaries’ earnings. The Company has not recorded a deferred tax liability on approximately $79.6 million of undistributed earnings. The determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable, with the exception of the Company's Israel subsidiary, where the closure of this subsidiary is imminent following the Company's announcement to restructure its DigitalOptics business and cease its MEMS manufacturing operations. The Company has accrued a deferred tax liability of $0.1 million for the withholding taxes that would arise on the distribution of the Israel subsidiary's earnings. As of December 31, 2016, unrecognized tax benefits approximated $30.1 million , of which $23.8 million would affect the effective tax rate if recognized. As of December 31, 2015, unrecognized tax benefits approximated $3.1 million , of which $2.4 million would affect the effective tax rate if recognized. As of December 31, 2016, there are no unrecognized tax benefits expected to decrease due to lapses in the relevant statute of limitations. The reconciliation of the Company's unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands): Years Ended December 31, 2016 2015 2014 Total unrecognized tax benefits at January 1 $ 3,071 $ 2,734 $ 5,031 Gross increases and decreases due to acquisition of DTS 27,584 — — Gross increases and decreases due to tax positions taken in prior periods 139 699 (193 ) Gross increases and decreases due to tax positions taken in the current period 264 103 150 Gross increases and decreases due to settlements with taxing authorities — — (2,023 ) Gross increases and decreases due to lapses in applicable statutes of limitations (970 ) (465 ) (231 ) Total unrecognized tax benefits at December 31 $ 30,088 $ 3,071 $ 2,734 It is the Company's policy to classify accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. For the years ended December 31, 2016, 2015, and 2014, the Company recognized an insignificant amount of interest and penalties related to unrecognized tax benefits. For the years ended December 31, 2016 and 2015, the Company accrued $0.5 million and $0.5 million , respectively, of interest and penalties related to unrecognized tax benefits. At December 31, 2016, the Company’s 2011 through 2016 tax years were open and subject to potential examination in one or more jurisdictions. In addition, in the U.S., any net operating losses or credits that were generated in prior years but utilized in an open year may also be subject to examination. The Company is currently under examination by the Internal Revenue Service for tax year 2014. The Company is currently under examination in California for the 2011 and 2012 tax years. We cannot estimate the financial outcome of both examinations. The Company is not currently under foreign income tax examination. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Lease and Purchase Commitments The Company leases office and research facilities and office equipment under operating leases which expire at various dates through 2029. The amounts reflected in the table below are for the aggregate future minimum lease payments under non-cancelable facility and equipment operating leases. Under lease agreements that contain escalating rent provisions, lease expense is recorded on a straight-line basis over the lease term. Rent expense for the years ended December 31, 2016, 2015 and 2014 amounted to $2.8 million , $2.1 million and $3.6 million , respectively. As of December 31, 2016, future minimum lease payments are as follows (in thousands): Lease Obligations 2017 $ 6,227 2018 5,300 2019 4,699 2020 3,936 2021 856 Thereafter 1,378 $ 22,396 Under certain contractual arrangements, the Company may be obligated to pay approximately up to $5.2 million over an estimated period of approximately two years if certain milestones are achieved. Contingencies At each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company is currently unable to predict the final outcome of lawsuits to which it is a party and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. An adverse decision in any of these proceedings could significantly harm the Company’s business and consolidated financial position, results of operations or cash flows. Tessera, Inc. v. Toshiba Corporation, Civil Action No. 5:15-cv-02543-BLF (N.D. Cal.) On May 12, 2015, Tessera, Inc. filed a complaint against Toshiba Corporation (“Toshiba”) in California Superior Court. Tessera, Inc.’s complaint alleges causes of action for breach of contract, breach of the implied covenant of good faith and fair dealing, and declaratory relief, generally alleging that Toshiba underpaid royalties and failed to cooperate with audits conducted pursuant to the parties’ license agreement. On June 8, 2015, Toshiba removed the action to the U.S. District Court for the Northern District of California. On June 18, 2015, Toshiba filed its answer, affirmative defenses, and counterclaims to Tessera, Inc.’s complaint. Toshiba alleges counterclaims for declaratory judgment and breach of the implied warranty of good faith and fair dealing. The counterclaims seek, among other things, judicial determinations about the interpretation of the parties’ agreement, termination of the agreement, an accounting of the amount of alleged overpayments by Toshiba, restitution, and damages. On July 10, 2015, Tessera, Inc. filed its answer and affirmative defenses to Toshiba’s counterclaims. On March 17, 2016, Tessera, Inc. filed an amended complaint adding a claim for declaratory relief regarding a February 12, 2016 letter sent by Toshiba to Tessera, Inc. purporting to terminate the parties’ license agreement. On March 18, 2016, Toshiba filed its amended answer, affirmative defenses, and counterclaims. On April 4, 2016, Tessera, Inc. filed an answer to Toshiba’s amended counterclaims. An initial summary judgment hearing on contract issues took place on September 22, 2016. On November 7, 2016, the Court entered an order granting Toshiba’s motion regarding the definition of “TCC,” and denying summary judgment on the other issues raised by the parties’ cross-motions. On December 6, 2016, Tessera filed a motion pursuant to Federal Rule of Civil Procedure 54(b) seeking authorization to appeal the order and for a stay, which motion is set for hearing on February 23, 2017. Fact discovery is closed, and expert discovery closes April 21, 2017. A hearing on any remaining motions for summary judgment is set for March 16, 2017. A jury trial is scheduled to begin on June 19, 2017. Garfield v. DTS, Inc., et al., Civil Action No. TN6317 (Superior Court of California, Ventura County) On October 26, 2016, an alleged stockholder of DTS, Robert Garfield, filed a putative class action lawsuit in the Superior Court of California, Ventura County, against DTS, Inc. (“DTS”), members of DTS’s board of directors, DTS’s financial advisor in connection with the DTS acquisition, and the Company. The complaint purports to allege claims for breach of fiduciary duties of care, good faith, and loyalty against the DTS directors; breach of the fiduciary duty of disclosure against DTS and the DTS directors; and aiding and abetting the purported breaches of fiduciary duties against the Company and DTS’s financial advisor. The complaint seeks, inter alia, certification as a class action; an order enjoining the merger or, if it is consummated, an order rescinding it; a reduction in the termination fee payable by DTS to the Company; damages; and attorneys’ fees. On October 31, 2016, Garfield filed an application for a temporary restraining order seeking to enjoin the merger and for expedited discovery in aid of a preliminary injunction motion. The defendants opposed the TRO application. The defendants also filed motions to dismiss or stay the case, which motions were scheduled to be heard in January 2017. On November 30, 2016, the Court denied the TRO application. On December 26, 2016, Garfield filed a request to dismiss his case without prejudice and on December 28, 2016, the Court entered an order dismissing the case. This matter is now concluded. Other Litigation Matters The Company and its subsidiaries are involved in litigation matters and claims in the normal course of business. In the past, the Company and its subsidiaries have litigated to enforce their respective patents and other intellectual property rights, to enforce the terms of license agreements, to protect trade secrets, to determine the validity and scope of the proprietary rights of others and to defend against claims of infringement or invalidity. The Company expects it or its subsidiaries will be involved in similar legal proceedings in the future, including proceedings regarding infringement of its patents and proceedings to ensure proper and full payment of royalties by licensees under the terms of its license agreements. The existing and any future legal actions may harm the Company’s business. For example, legal actions could cause an existing licensee or strategic partner to cease making royalty or other payments to the Company, or to challenge the validity and enforceability of patents owned by the Company’s subsidiaries or the scope of license agreements with the Company’s subsidiaries, and could significantly damage the Company’s relationship with such licensee or strategic partner and, as a result, prevent the adoption of the Company’s other technologies by such licensee or strategic partner. Litigation could also severely disrupt or shut down the business operations of licensees or strategic partners of the Company’s subsidiaries, which in turn would significantly harm ongoing relations with them and cause the Company to lose royalty revenue. The costs associated with legal proceedings are typically high, relatively unpredictable and not completely within the Company’s control. These costs may be materially higher than expected, which could adversely affect the Company’s operating results and lead to volatility in the price of its common stock. Whether or not determined in the Company’s favor or ultimately settled, litigation diverts managerial, technical, legal and financial resources from the Company’s business operations. Furthermore, an adverse decision in any of these legal actions could result in a loss of the Company’s proprietary rights, subject the Company to significant liabilities, require the Company to seek licenses from others, limit the value of the Company’s licensed technology or otherwise negatively impact the Company’s stock price or its business and consolidated financial position, results of operations or cash flows. |
Segment And Geographic Informat
Segment And Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment And Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION In connection with the acquisition of DTS, the Company re-evaluated its reportable segments. The Company concluded that it has two reportable segments: (1) Product Licensing and (2) Semiconductor and IP Licensing. There are certain corporate overhead costs that are not allocated to these reportable segments because these operating amounts are not considered in evaluating the operating performance of the Company’s business segments. The Chief Executive Officer is also the Chief Operating Decision Maker (“CODM”) as defined by the authoritative guidance on segment reporting. Each segment has its own executive manager. The Product Licensing segment, including the Company's DTS and FotoNation subsidiaries, licenses its technologies and intellectual property related to audio, digital radio and imaging solutions under the brands DTS, HD Radio and FotoNation. The Product Licensing solutions typically include the delivery of software or hardware based solutions, combined with various other intellectual property, including know how, patents, trademarks, and copyrights. Product Licensing represents revenue derived primarily from the consumer electronics market and related applications servicing the home, automotive and mobile segments. The Semiconductor and IP Licensing segment develops and licenses semiconductor technologies and IP to manufacturers, foundries, subcontract assemblers and others. The segment includes revenue generated from the technology and IP portfolios of Tessera, Inc., Ziptronix and Invensas. Tessera, Inc. pioneered chip-scale packaging solutions. Ziptronix pioneered low-temperature wafer bonding solutions. Invensas develops 3D semiconductor packaging and interconnect solutions for applications such as smartphones, tablets, laptops, PCs, and data centers. The Company expands our technology and IP offerings in this segment through a combination of internal R&D and acquisition. The Company also provide engineering services to our customers in the form of technology demonstrations and technology transfers to assist their evaluation and adoption of the Company's technologies. The Company does not identify or allocate assets by reportable segment, nor does the CODM evaluate reportable segments using discrete asset information. Reportable segments do not record inter-segment revenue and accordingly there are none to report. The Company does not allocate other income and expense to reportable segments. Although the CODM uses operating income to evaluate reportable segments, operating costs included in one segment may benefit other segments. The following table sets forth the Company’s segment revenue, operating expenses and operating income for the years ended December 31, 2016, 2015 and 2014 (in thousands): Years Ended December 31, 2016 2015 2014 Revenue: Semiconductor and IP licensing segment $ 229,066 $ 241,965 $ 252,378 Product licensing segment (1) 30,499 31,335 26,429 Total revenue 259,565 273,300 278,807 Operating expenses: Semiconductor and IP licensing segment 72,812 56,315 64,287 Product licensing segment 25,299 11,191 11,954 Unallocated operating expenses (2) 72,066 (3) 43,592 36,870 Total operating expenses 170,177 111,098 113,111 Operating income: Semiconductor and IP licensing segment 156,254 185,650 188,091 Product licensing segment 5,200 20,144 14,475 Unallocated operating expenses (2) (72,066 ) (43,592 ) (36,870 ) Total operating income $ 89,388 $ 162,202 $ 165,696 (1) Includes $0.1 million , $1.3 million and $3.1 million for 2016, 2015 and 2014, respectively, which are not part of current segment operations. (2) Unallocated operating expenses consist primarily of general and administrative expenses and stock based compensation, and gain on the sale of patents and restructuring. These expenses are not allocated because it is not practical to do so. (3) Includes approximately $23.9 million in one-time expenses related to the DTS acquisition. A significant portion of the Company’s revenue is derived from licensees headquartered outside of the U.S., principally in Asia, and it is expected that this revenue will continue to account for a significant portion of total revenues in future periods. The table below lists the geographic revenue from continuing operations for the periods indicated (in thousands): Years Ended December 31, 2016 2015 2014 U.S. $ 99,594 38 % $ 98,428 36 % $ 39,448 14 % Korea 95,170 37 87,527 32 98,100 35 Taiwan 34,763 13 57,049 21 100,049 36 Other Asia 16,968 6 16,435 6 33,258 12 China 11,747 5 8,199 3 5,735 2 Europe and other 1,323 1 5,662 2 2,217 1 $ 259,565 100 % $ 273,300 100 % $ 278,807 100 % For the years ended December 31, 2016, 2015, and 2014, four , four and three customers, respectively, each accounted for 10% or more of total revenue. As of December 31, 2016, 2015 and 2014 property and equipment, net, by geographical area are presented below (in thousands): Years Ended December 31, 2016 2015 2014 U.S. $ 36,891 $ 3,219 $ 3,802 Europe and other 1,252 529 520 Asia and other 712 — — Total $ 38,855 $ 3,748 $ 4,322 |
Restructuring, Impairment of Lo
Restructuring, Impairment of Long-Lived Assets And Other Charges And Gain on Sale of Patents | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment of Long-Lived Assets And Other Charges And Gain on Sale of Patents | RESTRUCTURING, IMPAIRMENT OF LONG-LIVED ASSETS AND OTHER CHARGES AND GAIN ON SALE OF PATENTS In 2014, the Company recorded a gain of $11.9 million on patents sold in 2014. Prior to the sale, these patents were included in the Company's patent portfolio available for licensing. This gain was partially offset by approximately $1.5 million in restructuring charges for severance and other facility costs related to reduction in administrative personnel. For more information regarding these actions, see Note 6 - " Discontinued Operations " and Note 9 - " Goodwill and Identified Intangible Assets. " |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plan | BENEFIT PLAN The Company maintains 401(k) retirement savings plans that allow voluntary contributions by all employees upon their hire date. Eligible employees may elect to contribute up to the maximum amount allowed under Internal Revenue Service regulations. The Company can make discretionary contributions under the 401(k) plan. During the years ended December 31, 2016, 2015 and 2014, the Company contributed approximately $0.8 million , $0.4 million , and $0.4 million , respectively, to the 401(k) Plan. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Declaration of a Cash Dividend - On January 26, 2017, the Board declared a cash dividend of $0.20 per share of common stock, payable on March 22, 2017, for the stockholders of record at the close of business on March 1, 2017. Name Change On January 26, 2017, the Board approved an amendment to the Company’s Restated Certificate of Incorporation to change its name to “Xperi Corporation” and such amendment became effective on February 23, 2017. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Schedule II Valuation and Qualifying | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II. Valuation and Qualifying Accounts for the Years Ended December 31, 2016, 2015 and 2014 Balance at Beginning of Year Charged (Credited) to Expenses Charged (Credited) to Other Accounts Balance at End of Year Deferred income tax asset: Valuation allowance 2014 $ 91,130 $ (64,043 ) $ — $ 27,087 2015 $ 27,087 $ (6,485 ) $ (6,750 ) $ 13,852 2016 $ 13,852 $ (345 ) $ (660 ) $ 12,847 |
Summary Of Significant Accoun28
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, difficult, and subjective judgment include the recognition and measurement of current and deferred income tax assets and liabilities, the fair value measurements of goodwill, other intangible assets and investments, the assessment of the recoverability of goodwill, the assessment of useful lives and recoverability of other intangible assets and long-lived assets, the assessment of unrecognized tax benefits and the valuation and recognition of stock-based compensation expense, and business combinations, among others. Actual results experienced by the Company may differ from management’s estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions. |
Financial Instruments | Financial Instruments Investments consist primarily of municipal bonds and notes, corporate bonds and notes, treasury and agency notes and bills, commercial paper, certificates of deposit, and money market funds. Investments with remaining maturities from original purchase date greater than three months but less than twelve months are classified as short-term investments. Investments with remaining maturities from original purchase date greater than twelve months are classified as long-term investments. The Company’s cash equivalents and investments are classified as available-for-sale. Unrealized gains and losses on securities, net of tax, are recorded in accumulated other comprehensive income and reported as a separate component of stockholders’ equity. The Company evaluates the investments periodically for possible other-than-temporary impairment and reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, and the Company’s ability and intent to hold the security until maturity on a more-likely-than-not basis. If the declines in the fair value of the investments are determined to be other-than-temporary, the Company reports the credit loss portion of such decline in other income and expense, net, and the remaining noncredit loss portion in accumulated other comprehensive income. The cost of securities sold is based on the specific identification method. Interest and dividend income and realized gains or losses are included in other income and expense, net. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term nature of these instruments. Long-term debt approximates fair value due to the variable rate nature of the debt. |
Concentration of Credit and Other Risks | Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, short-term investments and accounts receivable. The Company follows a corporate investment policy which sets credit, maturity and concentration limits and regularly monitors the composition, market risk and maturities of these investments. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by the Company’s evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary but generally requires no collateral. |
Allowance For Doubtful Accounts | Allowance For Doubtful Accounts The Company continually monitors customer payments and maintains a reserve for estimated losses resulting from its customers' inability to make required payments. In determining the reserve, the Company evaluates the collectibility of its accounts receivable based upon a variety of factors. In cases where the Company becomes aware of circumstances that may impair a specific customer's ability to meet its financial obligations, the Company records a specific allowance against amounts due. For all other customers, the Company recognizes allowances for doubtful accounts based on its historical write-off experience in conjunction with the length of time the receivables are past due, customer creditworthiness, geographic risk and the current business environment. Actual future losses from uncollectible accounts may differ from the Company's estimates. |
Goodwill and identified intangible assets | Goodwill and Identified Intangible Assets Goodwill . Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and identified intangible assets acquired under a business combination. Goodwill also includes acquired assembled workforce, which does not qualify as an identifiable intangible asset. The Company reviews impairment of goodwill annually in the fourth quarter, or more frequently if events or circumstances indicate that the goodwill might be impaired. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If the Company concludes it is more-likely-than-not that the fair value of a reporting unit exceeds its carrying amount, the two-step impairment test is not required. If based on the qualitative assessment, the Company believes it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, a two-step goodwill impairment test is required to be performed. The first step requires the Company to compare the fair value of each reporting unit to its carrying value including allocated goodwill. The Company determines the fair value of its reporting units using an equal weighting of the results derived from an income approach and a market approach. The income approach is estimated through the discounted cash flow method based on assumptions about future conditions such as future revenue growth rates, new product and technology introductions, gross margins, operating expenses, discount rates, future economic and market conditions, and other assumptions. The market approach estimates the fair value of the Company’s equity by utilizing the market comparable method which is based on revenue multiples from comparable companies in similar lines of business. If the carrying value of a reporting unit exceeds the reporting unit’s fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the reporting unit with the carrying value of the reporting unit. An impairment charge is recognized for the excess of the carrying value of the reporting unit over its implied fair value. Determining the fair value of a reporting unit is subjective in nature and requires the use of significant estimates and assumptions, including revenue growth rates and operating margins, discount rates and future market conditions, among others. Identified intangible assets . Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships, trademarks and trade names, and non-compete agreements resulting from business combinations, and acquired patents under asset purchase agreements. The Company’s identified intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 15 years . The Company makes judgments about the recoverability of finite-lived intangible assets whenever facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, the Company assesses recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, the Company would accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. Identified indefinite-lived intangible assets include in-process research and development (IPR&D) resulting from business combinations. The Company evaluates the carrying value of indefinite-lived intangible assets on an annual basis, and an impairment charge would be recognized to the extent that the carrying amount of such assets exceeds their estimated fair value. For further discussion of goodwill and identified intangible assets, see “Note 9 – Goodwill and Identified Intangible Assets .” |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are presented in the consolidated balance sheet as a deduction from the carrying amount of the long-term debt, and are amortized over the term of the associated debt to interest expense using the effective interest method. |
Treasury Stock | Treasury Stock The Company accounts for stock repurchases using the cost method. For reissuance of treasury stock, to the extent that the reissuance price is more than the cost, the excess is recorded as an increase to capital in excess of par value. If the reissuance price is less than the cost, the difference is recorded in capital in excess of par value to the extent there is a cumulative treasury stock paid-in capital balance. Once the cumulative balance is reduced to zero , any remaining difference resulting from the sale of treasury stock below cost is recorded as a reduction of retained earnings. |
Business Combinations | Business Combinations The Company includes the results of operations of the businesses that it has acquired in its consolidated results as of the respective dates of acquisition. The Company allocates the fair value of the purchase consideration of its acquisitions to the tangible assets, liabilities and intangible assets acquired, including IPR&D, based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired companies and the Company and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When the IPR&D project is complete, it is reclassified as an amortizable intangible asset and is amortized over its estimated useful life. If an IPR&D project is abandoned, the Company records a charge for the value of the related intangible asset in its consolidated statement of operations in the period it is abandoned. The fair value of contingent consideration associated with acquisitions is remeasured each reporting period and adjusted accordingly. Acquisition and integration related costs are recognized separately from the business combination and are expensed as incurred. |
Revenue Recognition | Revenue Recognition The Company derives its revenue primarily from royalty and license fees. Revenue is recognized when there is persuasive evidence of an arrangement, delivery has occurred, the fee is fixed or determinable, and collectability of the resulting receivable is reasonably assured. Determining whether and when these criteria have been satisfied requires the Company to make assumptions and judgments that could have a significant impact on the timing and amount of revenue it reports. License revenue is generated from license agreements for certain rights to the Company’s technologies. From time to time the Company enters into license agreements that provide for fixed license fees or royalty payments. The fixed license fees or royalty payments are recognized as revenue ratably over the contract term. Royalty revenues are generated from a licensee's production or shipment of licensed products incorporating the Company’s intellectual property, technologies or software. Licensees with a per-unit arrangement pay a per-unit royalty for each product manufactured or sold, as set forth in each license agreement. Licensees generally report manufacturing or sales information in the quarter subsequent to when such activity takes place. Consequently, the Company recognizes revenue from these per-unit licensing agreements in the quarter following the quarter of manufacture or sale, provided amounts are fixed or determinable and collection is reasonably assured, since the Company cannot reliably estimate the amount of revenue earned prior to the receipt of such reports. Use of this "quarter lag" method allows for the receipt of licensee royalty reports prior to the recognition of revenue. Certain cash collections from licensing arrangements acquired from DTS received or that are expected to be received subsequent to the acquisition date of December 1, 2016 were the result of licensee products manufactured or sold prior to December 1, 2016. Therefore, the Company will not recognize revenue for such cash collections. Accordingly, the Company recognized revenue only from licensing agreements acquired from DTS that resulted from licensee products manufactured or sold after the acquisition date of December 1, 2016. For additional information, refer to "Note 8 – Business Combinations ." Certain licensees of the Company have also entered into minimum guarantee arrangements, whereby licensees pay a minimum fee for the right to incorporate the Company's technology in the licensee's products over the contract term. These agreements stipulate a fee that corresponds to a minimum number of units or dollars that the customers must produce or pay, with additional per-unit fees for any units or dollars exceeding the minimum. For these agreements, the Company recognizes the minimum amount on these agreements as revenue ratably over the contract term. Consistent with the aforementioned policy for per-unit license fee agreements, the Company recognizes revenue relating to any additional per-unit fees on a quarter lag basis, since the Company cannot reliably estimate the amount of revenue earned from additional units manufactured or sold prior to the receipt of licensee reports. Under the acquisition method of purchase accounting, remaining guaranteed payments under existing minimum guarantee arrangements acquired from DTS were recorded as an unbilled contract receivable and other assets as part of the purchase price allocation. Accordingly, such payments will not be recognized as revenue over the remaining term of the contracts. Any new minimum guarantee arrangements with license periods starting subsequent to December 1, 2016 will be recognized as revenue ratably over the contract term in accordance with the policy described above. For additional information, refer to "Note 8 – Business Combinations ." The Company also derives revenue from software licenses for digital and video photography image enhancement technology. In some instances, the Company may enter into license agreements that involve multiple element arrangements to also include technology transfer, design, technical service and unspecified support. For technology and software licenses, revenue is recognized upon delivery or on a straight-line basis over the period in which the unspecified support or service is performed. The Company actively monitors and enforces its intellectual property, and pursues third parties who have under-reported the amount of royalties owed under a license agreement or who utilize its intellectual property without a license. As a result of these activities, the Company may, from time to time, recognize royalty revenue that relate to infringements or under-reporting that occurred in prior periods. Royalty revenue may also include payments resulting from periodic compliance audits of licensees, as part of a settlement of a patent infringement dispute, or judgments of license dispute. These royalty recoveries may cause revenue to be higher than expected during a particular reporting period and may not occur in subsequent periods. The Company recognizes revenue from royalty recoveries when there is persuasive evidence of an arrangement and collectability is reasonably assured. In the case of litigation settlements, the Company recognizes revenue when payments are received which is deemed to be when collectability is reasonably assured. The Company provides payment terms to licensees based upon their financial strength, credit worthiness and the Company’s collection experience with the licensee. If the Company provides extended payment terms, revenue is deferred until payment is due. |
Indemnification | Indemnification The Company provides indemnification of varying scope to certain customers against claims of intellectual property infringement made by third parties arising from the use of the Company’s technologies. In accordance with authoritative guidance for accounting for guarantees, the Company evaluates estimated losses for such indemnification. The Company considers such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. To date, no such claims have been filed against the Company and, as a result, no liability has been recorded in the Company’s financial statements. As permitted under Delaware law, the Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has Directors’ and Officers’ Liability insurance coverage that is intended to reduce its financial exposure and may enable the Company to recover a portion of any such payments. The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. |
Research, Development and Other Related Costs | Research, Development and Other Related Costs Research, development and other related costs consist primarily of compensation and related costs for personnel and consultants, as well as costs related to patent applications and examinations, product "tear downs" and reverse engineering, materials, supplies, and equipment depreciation. Research and development is conducted primarily in-house and targets development of chip-scale and multi-chip packaging, circuitry design, 3D-IC architectures, wafer-level packaging technology, advanced substrates, advanced audio technologies and image enhancement technologies. All research, development and other related costs are expensed as incurred. |
Stock-based Compensation Expense | Stock-based Compensation Expense The Company accounts for stock-based compensation expense in accordance with the authoritative guidance on share-based payments. Under the provisions of the guidance, stock-based compensation expense is measured at the grant date based on the fair value of the option using a Black-Scholes option pricing model and is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair value of the Company’s stock awards for non-employees is estimated based on the fair market value on each vesting date, accounted for under the variable-accounting method. The authoritative guidance also requires that the Company measure and recognize stock-based compensation expense upon modification of the term of stock award. The stock-based compensation expense for such modification is the sum of any unamortized expense of the award before modification and the modification expense. The modification expense is the incremental amount of the fair value of the award before the modification and the fair value of the award after the modification, measured on the date of modification. In the case when the modification results in a longer requisite period than in the original award, the Company has elected to apply the pool method where the aggregate of the unamortized expense and the modification expense is amortized over the new requisite period on a straight-line basis. In addition, any forfeiture will be based on the original requisite period prior to the modification. Calculating stock-based compensation expense requires the input of highly subjective assumptions, including the expected term of the stock-based awards, stock price volatility, and the pre-vesting option forfeiture rate. The Company estimates the expected life of options granted based on historical exercise patterns, which are believed to be representative of future behavior. The Company estimates the volatility of the Company’s common stock on the date of grant based on historical volatility. The assumptions used in calculating the fair value of stock-based awards represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, its stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. The Company estimates the forfeiture rate based on historical experience of its stock-based awards that are granted, exercised and cancelled. If the actual forfeiture rate is materially different from the estimate, stock-based compensation expense could be significantly different from what was recorded in the current period. See Note 13 – “Stock-based Compensation Expense” for additional detail. |
Income Taxes | Income Taxes The Company must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, tax benefits, tax deductions, and in the calculation of certain deferred taxes and tax liabilities. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. The provision for income taxes was comprised of the Company’s current tax liability and changes in deferred income tax assets and liabilities. The calculation of the current tax liability involves dealing with uncertainties in the application of complex tax laws and regulations and in determining the liability for tax positions, if any, taken on the Company’s tax returns in accordance with authoritative guidance on accounting for uncertainty in income taxes. Deferred income taxes are determined based on the differences between the financial reporting and tax basis of assets and liabilities. The Company must assess the likelihood that it will be able to recover the Company’s deferred tax assets. If recovery is not likely on a more-likely-than-not basis, the Company must increase its provision for income taxes by recording a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. However, should there be a change in the Company’s ability to recover its deferred tax assets, the provision for income taxes would fluctuate in the period of such change. See Note 14 – “Income Taxes” for additional detail. |
Contingencies | Contingencies From time to time, the Company may be involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Management reviews these estimates in each accounting period as additional information becomes known and adjusts the loss provision when appropriate. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the consolidated financial statements. If a loss is probable but the amount of loss cannot be reasonably estimated, the Company discloses the loss contingency and an estimate of possible loss or range of loss (unless such an estimate cannot be made). The Company does not recognize gain contingencies until they are realized. Legal costs incurred in connection with loss contingencies are expensed as incurred. See Note 15 – " Commitments and Contingencies ,” for further information regarding the Company’s pending litigation. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets' estimated useful lives: Equipment, furniture and other 1 to 5 years Leasehold improvements Lesser of related lease term or 5 years Building and improvements Up to 30 years Expenditures that materially increase asset life are capitalized, while ordinary maintenance and repairs are expensed as incurred. The Company capitalizes the costs of purchased software licenses, consulting costs and payroll-related costs incurred in developing or implementing internal use computer software. These costs are included in property and equipment, net on the consolidated balance sheets. Costs incurred during the preliminary project and post-implementation stages are charged to expense as incurred. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of substantially all of the Company's wholly-owned subsidiaries is the U.S. dollar. Certain subsidiaries have monetary assets and liabilities that are denominated in a currency that is different than the functional currency. The gains and losses resulting from this remeasurement and translation of monetary assets denominated in a currency that is different than the functional currency are reflected in the determination of net income (loss). |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In June 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic No. 718, “Compensation - Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 were adopted effective January 1, 2016. The implementation of this guidance did not have a material impact to the disclosures in the Company’s consolidated financial statements. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40) (“Update 2014-15”), which requires management to assess a company’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. For public entities, Update 2014-15 was effective for annual reporting periods ending after December 15, 2016. The Company adopted this update in 2016 resulting in no impact on its consolidated results of operations, financial position, cash flows and disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in ASU 2015-03 were adopted effective January 1, 2016. Accordingly, the Company presented its debt issuance costs as a deduction from the carrying amount of long-term debt on its consolidated balance sheet as of December 31, 2016. For additional information, refer to "Note 10 - Debt ." In January 2017, the FASB issued ASU No. 2017-01, "Classifying the Definition of a Business." This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted for transactions for which the acquisition date occurs before the effective date of the ASU only when the transaction has not been reported in financial statements that have been issued. The Company chose to early adopt this standard effective for the year ended December 31, 2016. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (“ASU 2014-09”), which provides guidance for revenue recognition. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets and supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The core principle of ASU 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The FASB has further clarified this new guidance for revenue recognition by issuing ASU No. 2016-08 (principal versus agent considerations), ASU No. 2016-10 (identifying performance obligations and licensing), ASU No. 2016-12 (narrow-scope improvements and practical expedients), and ASU No. 2016-20 (technical corrections and improvements to Topic 606). The new standard is effective for the Company beginning January 1, 2018. The Company expects the standard to have a material impact on the timing of revenue recognition and expects that the standard will cause volatility in its quarterly revenue trends. Under the new standard, the current practice of many licensing companies of reporting revenue from per-unit royalty based arrangements one quarter in arrears would no longer be accepted and instead the Company will be expected to estimate royalty-based revenue. The Company also expects the standard to have a significant impact on the timing of revenue recognition associated with its fixed fee and minimum guarantee arrangements, as a majority of such revenue is expected to be recognized at the initiation of the license term. The Company currently expects to adopt this standard using the modified retrospective method, under which the Company would record a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2018 determined on the basis of the impact of the new standard on contracts that are not completed as of January 1, 2018. The Company is currently evaluating and finalizing the full impact of this new standard on its financial statements. In February 2016, the FASB issued ASU 2016-02 "Leases (Topic 842)." The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases while the accounting by a lessor is largely unchanged from that applied under previous GAAP. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of this new standard. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) (“ASU 2016-09”). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact the adoption of this new accounting standard would have on its consolidated financial statements and footnote disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the classification of certain specific cash flow issues including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the effect this standard will have on its consolidated statement of cash flows. In October 2016, the FASB issued ASU No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." This ASU requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements have not been issued. The Company is evaluating the impact of adoption of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 to simplify the measurement of goodwill by eliminating the Step 2 impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance requires an entity to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new guidance becomes effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, though early adoption is permitted. The Company is currently assessing the impact of this new guidance. |
Fair Value | FAIR VALUE The Company follows the authoritative guidance fair value measurement and the fair value option for financial assets and financial liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets. Level 2 Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. When applying fair value principles in the valuation of assets, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. We calculate the fair value of our Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs. There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2015 and December 31, 2016. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Customers Comprising 10% or More of Total Revenues | The following table sets forth revenue generated from customers which comprise 10% or more of total revenue for the periods indicated: Years Ended December 31, 2016 2015 2014 Samsung Electronics, Co. Ltd. 25 % 19 % 24 % Micron Technology, Inc. 17 % 15 % *% Amkor Technologies, Inc. 15 % 14 % *% SK hynix Inc. 12 % 13 % 11 % Powertech Technology Inc. *% *% 34 % * denotes less than 10% of total revenue. |
Composition Of Certain Financ30
Composition Of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Current Assets | Other current assets consisted of the following (in thousands): December 31, 2016 December 31, 2015 Prepaid income taxes $ 6,645 $ 22,890 Interest receivable 310 2,427 Other 12,195 2,813 $ 19,150 $ 28,130 |
Property, Plant and Equipment | Property and equipment, net consisted of the following (in thousands): December 31, 2016 2015 Equipment, furniture and other $ 28,071 $ 18,738 Building and improvements 18,153 455 Land 5,300 — Leasehold improvements 6,346 3,840 57,870 23,033 Less: Accumulated depreciation and amortization (19,015 ) (19,285 ) $ 38,855 $ 3,748 |
Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2016 December 31, 2015 Employee compensation and benefits $ 18,584 $ 6,848 Accrued interest 2,200 — Other 8,302 3,414 $ 29,086 $ 10,262 |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following (in thousands): December 31, 2016 December 31, 2015 Unrealized loss on available-for-sale securities, net of tax $ (148 ) $ (1,437 ) $ (148 ) $ (1,437 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | The following is a summary of marketable securities at December 31, 2016 and December 31, 2015 (in thousands): December 31, 2016 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Values Available-for-sale securities Corporate bonds and notes $ 36,590 $ 7 $ (95 ) $ 36,502 Commercial paper 5,220 — (4 ) 5,216 Treasury and agency notes and bills 6,029 — (57 ) 5,972 Money market funds 14,146 — — 14,146 Total available-for-sale securities $ 61,985 $ 7 $ (156 ) $ 61,836 Reported in: Cash and cash equivalents $ 14,457 Short-term investments 47,379 Total marketable securities $ 61,836 December 31, 2015 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Values Available-for-sale securities Corporate bonds and notes $ 257,461 $ 7 $ (1,286 ) $ 256,182 Municipal bonds and notes 70,772 12 (81 ) 70,703 Commercial paper 5,377 3 — 5,380 Treasury and agency notes and bills 26,973 — (93 ) 26,880 Money market funds 715 — — 715 Total available-for-sale securities $ 361,298 $ 22 $ (1,460 ) $ 359,860 Reported in: Cash and cash equivalents $ 715 Short-term investments 359,145 Total marketable securities $ 359,860 |
Schedule of Gross Unrealized Losses on Investments | The following table summarizes the fair value and gross unrealized losses related to individual available-for-sale securities at December 31, 2016 and 2015, which have been in a continuous unrealized loss position, aggregated by investment category and length of time (in thousands): December 31, 2016 Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and notes $ 14,678 $ (44 ) $ 13,230 $ (51 ) $ 27,908 $ (95 ) Treasury and agency notes and bills 5,972 (57 ) — — 5,972 (57 ) Commercial paper 5,216 (4 ) — — 5,216 (4 ) Total $ 25,866 $ (105 ) $ 13,230 $ (51 ) $ 39,096 $ (156 ) December 31, 2015 Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and notes $ 183,491 $ (1,162 ) $ 70,447 $ (124 ) $ 253,938 $ (1,286 ) Municipal bonds and notes 60,976 (81 ) — — 60,976 (81 ) Treasury and agency notes 26,880 (93 ) — — 26,880 (93 ) Total $ 271,347 $ (1,336 ) $ 70,447 $ (124 ) $ 341,794 $ (1,460 ) |
Estimated Fair Value of Marketable Securities by Contractual Maturity | The estimated fair value of marketable securities by contractual maturity at December 31, 2016 is shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. Estimated Fair Value Due in one year or less $ 32,035 Due in one to two years 22,835 Due in two to three years 6,966 Total $ 61,836 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The results from discontinued operations were as follows (in thousands): Years Ended December 31, 2016 2015 2014 Revenue: Product and service revenues $ — $ — $ 32 Total revenue — — 32 Operating expenses: Cost of revenue — — 21 Research, development and other related costs — — 6,190 Selling, general and administrative — 389 6,254 Restructuring, impairment of long-lived assets and other charges and gain on sale of patents — (371 ) (3,178 ) (1 ) Impairment of goodwill — — — Total operating expenses — 18 9,287 Other income and (expense), net — — 629 Operating loss before taxes — (18 ) (8,626 ) Expense (benefit) from income taxes — 83 (4,137 ) Net loss from discontinued operations $ — $ (101 ) $ (4,489 ) (1) As noted above, the Company underwent restructuring activities in 2014. Additionally, the Company sold assets and the proceeds are netted against expenses. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The following is a list of the Company’s assets required to be measured at fair value on a recurring basis and where they were classified within the hierarchy as of December 31, 2016 (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities Money market funds (1) $ 14,146 $ 14,146 $ — $ — Corporate bonds and notes (2) 36,502 — 36,502 — Treasury and agency notes and bills (2) 5,972 — 5,972 — Commercial paper (2) 5,216 — 5,216 — Total Assets $ 61,836 $ 14,146 $ 47,690 $ — The following footnotes indicate where the noted items were recorded in the Consolidated Balance Sheet at December 31, 2016: (1) Reported as cash and cash equivalents. (2) Reported as short-term investments. The Company also has outstanding debt at December 31, 2016 that is considered a level 2 liability and is measured at fair value on a recurring basis. See Note 10 "Debt" for additional information. At December 31, 2016, the fair value of our debt is not materially different than the outstanding principal amount. The following is a list of the Company’s assets required to be measured at fair value on a recurring basis and where they were classified within the hierarchy as of December 31, 2015 (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Marketable securities Money market funds (1) $ 715 $ 715 $ — $ — Corporate bonds and notes (2) 256,182 — 256,182 — Municipal bonds and notes (2) 70,703 — 70,703 — Treasury and agency notes and bills (2) 26,880 — 26,880 — Commercial paper (3) 5,380 — 5,380 — Total Assets $ 359,860 $ 715 $ 359,145 $ — The following footnotes indicate where the noted items were recorded in the Consolidated Balance Sheet at December 31, 2015: (1) Reported as cash and cash equivalents. (2) Reported as short-term investments. (3) Reported as either cash and cash equivalents or short-term investments. |
Fair Value Measurements, Nonrecurring | The following table represents the activity in level 3 assets (in thousands): Assets held for sale Assets included in discontinued operations and held for sale Other Balance at December 31, 2014 $ — $ — $ 4,280 Assets transferred — — — Assets sold — — — Assets received — — — Balance at December 31, 2015 $ — $ — $ 4,280 Assets transferred — — — Assets sold — — — Assets received — — — Balance at December 31, 2016 $ — $ — $ 4,280 (1 ) (1) This amount represents the value of the patents that were received as part of licensing settlements with customers. These assets were valued using a methodology based on an arms-length purchase price of bulk patent assets, with adjustments based on limited pick rights, the total available market, and remaining average patent life. The value above is gross and the accumulated amortization to date is $1.6 million . |
Business Combinations Busines34
Business Combinations Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition purchase price allocation | The preliminary allocation of the purchase price, which was based on preliminary estimates and valuations of management, was (in thousands): Estimated Useful Life (years) Estimated Fair Value Cash and cash equivalents $ 53,377 Accounts receivable 27,114 Unbilled contracts receivable, short-term 52,845 Other current assets 5,269 Prepaid income taxes 3,278 Property and equipment 33,573 Goodwill 372,827 Identifiable intangible assets: Customer contracts and related relationships 3-7 281,569 Developed technology 5-6 143,639 Trademarks and tradenames 8 38,483 Noncompete agreements 1 2,231 In-process research and development (IPR&D) 3,156 Total identifiable intangible assets 469,078 Long-term deferred tax assets 637 Unbilled contracts receivable, long-term 12,464 Other assets 4,423 Accounts payable (4,006 ) Accrued liabilities (19,727 ) Deferred revenue (561 ) Income taxes payable (727 ) Long-term deferred tax liabilities (39,822 ) Other long-term liabilities (15,337 ) Aggregate purchase price $ 954,705 The aggregate consideration for the acquisition consisted of the following (in thousands): Cash paid for outstanding DTS common stock $ 764,331 Cash paid for payoff of existing DTS debt 128,855 Cash paid for vested DTS equity awards 48,395 Fair value of assumed DTS equity awards relating to pre-acquisition services 13,124 Aggregate purchase price $ 954,705 Based upon the fair values acquired, the purchase price allocation is as follows (in thousands): Estimated Useful Life (Years) Net tangible assets and liabilities: Unbilled contract asset $ 3,380 Deferred tax assets and liabilities, net (7,671 ) (1 ) Other accrued liabilities (385 ) $ (4,676 ) Identified intangible assets: Patents/existing technology $ 32,300 5-8 Trade name 1,300 8 Customer relationships 1,600 2 Goodwill 8,037 (2) N/A $ 43,237 Total purchase price $ 38,561 (1) The $7.7 million of deferred tax assets and liabilities, net is the anticipated tax effect from the amortization of identified intangible assets acquired, net of tax benefits from operating losses the Company expects to utilize. (2) The Company does not anticipate that any of this goodwill will be deductible for tax purposes. |
Pro forma revenue and earnings | The following table presents the pro forma operating results as if DTS had been included in the Company's consolidated statements of operations as of January 1, 2015 (unaudited, in thousands): Revenue Earnings Actual for the year ended December 31, 2015 $ 273,300 $ 117,016 Actual for the year ended December 31, 2016 $ 259,565 (1) $ 56,089 (1) Supplemental pro forma for the year ended December 31, 2015 (unaudited) $ 358,911 (2) $ (38,139 ) (2)(3)(4) Supplemental pro forma for the year ended December 31, 2016 (unaudited) $ 434,971 (2) $ 17 (2)(3)(4) Revenue Earnings Actual for the year ended December 31, 2014 $ 278,807 $ 170,454 Actual for the year ended December 31, 2015 $ 273,300 $ 117,016 Supplemental pro forma for the year ended December 31, 2014 (unaudited) $ 282,637 $ 167,165 (1) Supplemental pro forma for the year ended December 31, 2015 (unaudited) $ 304,615 (3) $ 137,595 (1) (2) (3) (1) Includes $5.6 million in pre-tax amortization costs related to the intangible assets acquired. (2) Excludes $3.1 million in acquisition related costs, primarily financial advisor fees and contract settlement costs incurred by Ziptronix in connection with the acquisition. (3) Almost all of the revenue and earnings related to Ziptronix in this period is the result of one -time license fee payments during the three months ended March 31, 2015 (unaudited). The following table presents the pro forma operating results as if Ziptronix had been included in the Company's consolidated statements of operations as of January 1, 2014 (unaudited, in thousands): Revenue Earnings Actual for the year ended December 31, 2014 $ 278,807 $ 170,454 Actual for the year ended December 31, 2015 $ 273,300 $ 117,016 Supplemental pro forma for the year ended December 31, 2014 (unaudited) $ 282,637 $ 167,165 (1) Supplemental pro forma for the year ended December 31, 2015 (unaudited) $ 304,615 (3) $ 137,595 (1) (2) (3) (1) Includes $5.6 million in pre-tax amortization costs related to the intangible assets acquired. (2) Excludes $3.1 million in acquisition related costs, primarily financial advisor fees and contract settlement costs incurred by Ziptronix in connection with the acquisition. (3) Almost all of the revenue and earnings related to Ziptronix in this period is the result of one -time license fee payments during the three months ended March 31, 2015 (unaudited). |
Pro forma adjustments to historical combined expenses | Reflects the following pro forma adjustments to historical combined expenses (unaudited, in thousands): 2015 2016 Estimated increase in combined amortization and depreciation expense due to acquired intangible assets and property and equipment measured at fair value $ 75,975 $ 59,092 Estimated increase in combined stock-based compensation expense due to assumed DTS equity awards measured at fair value $ 6,888 $ 4,781 Estimated increase in combined interest and other expense, net due to estimated increase in interest expense (and amortization of debt issuance costs) from new debt obtained to finance the Transaction and estimated lower interest income from lower investment holdings $ 28,964 $ 24,806 Elimination of Tessera and DTS non-recurring transaction costs reflected in historical results $ — $ (27,900 ) Estimated increase (decrease) to combined expense for non-recurring employee-related costs resulting from the acquisition, including severance and retention bonus expense $ 21,100 $ (3,436 ) |
Goodwill And Identified Intan35
Goodwill And Identified Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes to the carrying value of goodwill from January 1, 2015 through December 31, 2016 are reflected below (in thousands): December 31, 2014 $ 2,099 Goodwill acquired through the acquisition of Ziptronix, Inc. (1) 8,037 December 31, 2015 $ 10,136 Goodwill acquired through the acquisition of DTS (1) 372,827 December 31, 2016 $ 382,963 (2) (1) For more information regarding these transactions, see Note 8 - "Business Combinations." (2) Of this amount, approximately $375.3 million is allocated to our Product Licensing reporting unit and approximately $7.7 million is allocated to our Semiconductor and IP Licensing reporting unit. |
Identified Intangible Assets | Identified intangible assets consisted of the following (in thousands): December 31, 2016 December 31, 2015 Average Life (Years) Gross Assets Accumulated Amortization Net Gross Accumulated Net Acquired patents / core technology 3-15 $ 140,744 $ (96,896 ) $ 43,848 $ 140,345 $ (79,128 ) $ 61,217 Existing technology (1) 5-10 203,442 (27,315 ) 176,127 50,620 (20,182 ) 30,438 Customer contracts and related relationships(2) 3-9 291,769 (14,011 ) 277,758 10,200 (7,792 ) 2,408 Trademarks/trade name (3) 4-10 40,083 (1,138 ) 38,945 1,600 (574 ) 1,026 Non-competition agreements (4) 1 2,231 (186 ) 2,045 — — — Total amortizable intangible assets 678,269 (139,546 ) 538,723 202,765 (107,676 ) 95,089 IPR&D (4) 3,156 — 3,156 Total intangible assets $ 681,425 $ (139,546 ) $ 541,879 $ 202,765 $ (107,676 ) $ 95,089 (1) In 2016, $143.6 million of existing technology was acquired through the acquisition of DTS. In 2015, $31.7 million of existing technology was acquired through our acquisition of Ziptronix. (2) In 2016, $281.6 million of customer contracts was acquired through the acquisition of DTS. (3) In 2016, $38.5 million of trademarks/trade names was acquired through the acquisition of DTS. (4) In 2016, amount was acquired through the acquisition of DTS. For more information regarding these acquisitions, see Note 8 - " Business Combinations ." |
Estimated Future Amortization Expense | As of December 31, 2015, the estimated future amortization expense of intangible assets is as follows (in thousands): 2017 $ 111,813 2018 107,396 2019 98,310 2020 86,595 2021 78,933 Thereafter 55,676 $ 538,723 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | As of December 31, 2016, future minimum principal payments for long-term debt, including the current portion, are summarized as follows (in thousands): 2017 $ 6,000 2018 6,000 2019 6,000 2020 6,000 2021 6,000 Thereafter 570,000 Total $ 600,000 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted shares (in thousands): Years Ended December 31, 2016 2015 2014 Weighted average common shares outstanding 49,203 51,841 52,898 Unvested common shares subject to repurchase (16 ) (39 ) (79 ) Total common shares-basic 49,187 51,802 52,819 Effect of dilutive securities: Options 357 343 346 Restricted stock awards and units 646 441 398 Total common shares-diluted 50,190 52,586 53,563 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the stock option activity is presented below (in thousands, except per share amounts): Options Outstanding Number of Shares Subject to Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Balance at December 31, 2013 3,917 $18.37 Options granted 220 $22.29 Options exercised (1,797 ) $18.13 Options canceled / forfeited / expired (724 ) $18.00 Balance at December 31, 2014 1,616 $19.34 Options granted 84 $36.60 Options exercised (465 ) $19.35 Options canceled / forfeited / expired (93 ) $19.04 Balance at December 31, 2015 1,142 $20.63 Options assumed 586 $29.05 Options exercised (350 ) $20.01 Options canceled / forfeited / expired (46 ) $23.25 Balance at December 31, 2016 1,332 $24.41 5.65 $ 26,366 Vested and expected to vest at December 31, 2016 1,274 5.56 $ 25,230 Exercisable at December 31, 2016 813 4.67 $ 15,039 |
Summary of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable under all of the Company’s plans at December 31, 2016: Options Outstanding Options Exercisable Range of Exercise Prices per Share Number Outstanding (in thousands) Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price per Share Number Exercisable (in thousands) Weighted Average Exercise Price per Share $12.52 - $18.65 139 5.83 $ 16.18 83 $ 14.97 $18.74 - $18.76 15 5.18 $ 18.75 7 $ 18.74 $18.84 - $18.84 367 6.94 $ 18.84 258 $ 18.84 $18.89 - $19.33 141 3.73 $ 19.22 76 $ 19.24 $19.34 - $20.43 201 5.49 $ 19.87 98 $ 19.93 $20.63 - $26.16 145 6.62 $ 22.86 58 $ 23.44 $26.34 - $38.65 121 8.02 $ 34.64 30 $ 34.52 $40.87 - $40.87 4 1.18 $ 40.87 4 $ 40.87 $41.15 - $41.15 10 3.33 $ 41.15 10 $ 41.15 $43.77 - $43.77 189 2.61 $ 43.77 189 $ 43.77 $12.52 - $43.77 1,332 5.65 $ 24.41 813 $ 25.71 |
Summary of Restricted Stock Awards and Units | Information with respect to outstanding restricted stock awards and units as of December 31, 2016 is as follows (in thousands, except per share amounts): Restricted Stock and Restricted Stock Units Number of Shares Subject to Time- based Vesting Number of Shares Subject to Performance- based Vesting Total Number of Shares Weighted Average Grant Date Fair Value Per Share Balance at December 31, 2013 737 348 1,085 $ 18.46 Awards and units granted 222 309 531 $ 22.41 Awards and units vested / earned (289 ) — (289 ) $ 18.85 Awards and units canceled / forfeited (168 ) (24 ) (192 ) $ 17.91 Balance at December 31, 2014 502 633 1,135 $ 20.30 Awards and units granted 472 90 562 $ 39.77 Awards and units vested / earned (240 ) (144 ) (384 ) $ 20.17 Awards and units canceled / forfeited (44 ) (60 ) (104 ) $ 21.54 Balance at December 31, 2015 690 519 1,209 $ 29.28 Awards and units granted 596 86 682 $ 30.85 Awards assumed 925 — 925 $ 40.13 Awards and units vested / earned (398 ) (84 ) (482 ) $ 32.18 Awards and units canceled / forfeited (117 ) (137 ) (254 ) $ 29.64 Balance at December 31, 2016 1,696 384 2,080 $ 33.91 |
Stock-Based Compensation Expe39
Stock-Based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Effect of Recording Stock-Based Compensation Expense | The effect of recording stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands): Years Ended December 31, 2016 2015 2014 Cost of revenue $ — $ — $ 18 Research, development and other related costs 7,104 4,005 2,823 Selling, general and administrative 13,997 7,512 10,428 Total stock-based compensation expense 21,101 11,517 13,269 Tax effect on stock-based compensation expense (6,314 ) (3,107 ) (1,968 ) Net effect on net income $ 14,787 $ 8,410 $ 11,301 |
Stock-Based Compensation Expense Categorized by Equity Components | Stock-based compensation expense categorized by various equity components for the years ended December 31, 2016, 2015 and 2014 is summarized in the table below (in thousands): Years Ended December 31, 2016 2015 2014 Employee stock options $ 3,249 $ 2,676 $ 3,336 Restricted stock awards and units 17,024 8,232 9,322 Employee stock purchase plan 828 609 611 Total stock-based compensation expense $ 21,101 $ 11,517 $ 13,269 |
Schedule of Assumptions Used To Value Options Granted | The following assumptions were used to value the awards granted: Years Ended December 31, 2016 2015 2014 Expected life (in years) 3.8 3.8 4.9 Risk-free interest rate 1.7 % 1.1 - 1.4% 1.6 - 1.8% Dividend yield 2.4 % 2.1 - 2.9% 3.4 - 4.1% Expected volatility 29.0 % 34.0 - 35.6% 37.3 - 41.4% The following assumptions were used to value the ESPP shares: Years Ended December 31, 2016 2015 2014 Expected life (years) 2.0 2.0 2.0 Risk-free interest rate 0.5 - 0.8% 0.4 - 0.7% 0.3 - 0.5% Dividend yield 2.4 - 3.0% 2.1 - 3.4% 3.4 - 3.5% Expected volatility 30.0 % 29.7 - 30.0% 27.6 - 30.6% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of total income (loss) before taxes from continuing operations are as follows (in thousands): Years ended December 31, 2016 2015 2014 U.S. $ 90,154 $ 151,862 $ 155,757 Foreign 561 13,772 11,489 Total income (loss) before taxes from continuing operations $ 90,715 $ 165,634 $ 167,246 |
Components of Provision for Income Taxes | The provision for (benefit from) income taxes consisted of the following (in thousands): Years ended December 31, 2016 2015 2014 Current: U.S. federal $ 9,564 $ 2,737 $ (797 ) Foreign 22,552 26,275 31,824 State and local 8 319 8 Total current 32,124 29,331 31,035 Deferred: U.S. federal 2,365 23,478 (38,732 ) Foreign 392 (4,138 ) — State and local (255 ) (154 ) — Total deferred 2,502 19,186 (38,732 ) Provision for (benefit from) income taxes $ 34,626 $ 48,517 $ (7,697 ) |
Component of Company's Deferred Tax Assets and Liabilities | Significant components of the company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax assets Net operating loss carryforwards $ 40,969 $ 15,268 Research tax credit 9,642 5,438 Foreign tax credit 7,201 5,587 Expenses not currently deductible 5,193 12,453 Basis difference in fixed and intangible assets 3,529 4,227 Gross deferred tax assets 66,534 42,973 Valuation allowance (12,846 ) (13,852 ) Net deferred tax assets 53,688 29,121 Deferred tax liabilities Acquired intangible assets, domestic (70,338 ) Acquired intangible assets, foreign (13,045 ) (13,597 ) Unremitted earnings of foreign subsidiaries (129 ) (130 ) Net deferred tax assets (liabilities) $ (29,824 ) $ 15,394 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate is as follows: Years Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State, net of federal benefit (0.5 ) — — Stock-based compensation expense 2.0 0.5 0.3 Tax exempt interest (0.2 ) (0.1 ) — Research tax credit and other (1.2 ) (0.3 ) (0.3 ) Foreign withholding tax 24.7 15.7 18.8 Transaction costs 2.4 — — Foreign tax rate differential 0.4 (2.8 ) (2.2 ) Foreign tax credit (23.5 ) (15.3 ) (17.9 ) Change in valuation allowance — (3.0 ) (38.7 ) Others (0.9 ) (0.4 ) 0.4 Total 38.2 % 29.3 % (4.6 )% |
Reconciliation of Unrecognized Tax Benefits | The reconciliation of the Company's unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands): Years Ended December 31, 2016 2015 2014 Total unrecognized tax benefits at January 1 $ 3,071 $ 2,734 $ 5,031 Gross increases and decreases due to acquisition of DTS 27,584 — — Gross increases and decreases due to tax positions taken in prior periods 139 699 (193 ) Gross increases and decreases due to tax positions taken in the current period 264 103 150 Gross increases and decreases due to settlements with taxing authorities — — (2,023 ) Gross increases and decreases due to lapses in applicable statutes of limitations (970 ) (465 ) (231 ) Total unrecognized tax benefits at December 31 $ 30,088 $ 3,071 $ 2,734 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments and Purchase Obligations | As of December 31, 2016, future minimum lease payments are as follows (in thousands): Lease Obligations 2017 $ 6,227 2018 5,300 2019 4,699 2020 3,936 2021 856 Thereafter 1,378 $ 22,396 |
Segment And Geographic Inform42
Segment And Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table sets forth the Company’s segment revenue, operating expenses and operating income for the years ended December 31, 2016, 2015 and 2014 (in thousands): Years Ended December 31, 2016 2015 2014 Revenue: Semiconductor and IP licensing segment $ 229,066 $ 241,965 $ 252,378 Product licensing segment (1) 30,499 31,335 26,429 Total revenue 259,565 273,300 278,807 Operating expenses: Semiconductor and IP licensing segment 72,812 56,315 64,287 Product licensing segment 25,299 11,191 11,954 Unallocated operating expenses (2) 72,066 (3) 43,592 36,870 Total operating expenses 170,177 111,098 113,111 Operating income: Semiconductor and IP licensing segment 156,254 185,650 188,091 Product licensing segment 5,200 20,144 14,475 Unallocated operating expenses (2) (72,066 ) (43,592 ) (36,870 ) Total operating income $ 89,388 $ 162,202 $ 165,696 (1) Includes $0.1 million , $1.3 million and $3.1 million for 2016, 2015 and 2014, respectively, which are not part of current segment operations. (2) Unallocated operating expenses consist primarily of general and administrative expenses and stock based compensation, and gain on the sale of patents and restructuring. These expenses are not allocated because it is not practical to do so. (3) Includes approximately $23.9 million in one-time expenses related to the DTS acquisition. |
Schedule of Geographic Revenue Information | The table below lists the geographic revenue from continuing operations for the periods indicated (in thousands): Years Ended December 31, 2016 2015 2014 U.S. $ 99,594 38 % $ 98,428 36 % $ 39,448 14 % Korea 95,170 37 87,527 32 98,100 35 Taiwan 34,763 13 57,049 21 100,049 36 Other Asia 16,968 6 16,435 6 33,258 12 China 11,747 5 8,199 3 5,735 2 Europe and other 1,323 1 5,662 2 2,217 1 $ 259,565 100 % $ 273,300 100 % $ 278,807 100 % |
Schedule of Property and Equipment, Net, by Geographical Area | As of December 31, 2016, 2015 and 2014 property and equipment, net, by geographical area are presented below (in thousands): Years Ended December 31, 2016 2015 2014 U.S. $ 36,891 $ 3,219 $ 3,802 Europe and other 1,252 529 520 Asia and other 712 — — Total $ 38,855 $ 3,748 $ 4,322 |
Summary Of Significant Accoun43
Summary Of Significant Accounting Policies (Narrative) (Details) - customer | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Concentration of risk | 100.00% | 100.00% | 100.00% |
Aggregate gross trade receivables | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Number of customers, concentration of risk disclosure | 2 | 4 | |
Customer One | Aggregate gross trade receivables | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration of risk | 14.00% | 26.00% | |
Customer Two | Aggregate gross trade receivables | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration of risk | 13.00% | 21.00% | |
Customer Three | Aggregate gross trade receivables | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration of risk | 13.00% | ||
Customer Four | Aggregate gross trade receivables | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration of risk | 12.00% | ||
Samsung Electronics, Co. Ltd. | Total revenues | |||
Concentration Risk [Line Items] | |||
Concentration of risk | 25.00% | 19.00% | 24.00% |
Micron Technology, Inc. | Total revenues | |||
Concentration Risk [Line Items] | |||
Concentration of risk | 17.00% | 15.00% | |
Amkor Technologies, Inc. | Total revenues | |||
Concentration Risk [Line Items] | |||
Concentration of risk | 15.00% | 14.00% | |
SK hynix Inc. | Total revenues | |||
Concentration Risk [Line Items] | |||
Concentration of risk | 12.00% | 13.00% | 11.00% |
Powertech Technology Inc. | Total revenues | |||
Concentration Risk [Line Items] | |||
Concentration of risk | 34.00% |
Summary Of Significant Accoun44
Summary Of Significant Accounting Policies - Identifiable Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 15 years |
Summary Of Significant Accoun45
Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies - Long-Lived Assets (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Equipment, furniture and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 1 year |
Equipment, furniture and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Building and building improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Composition Of Certain Financ46
Composition Of Certain Financial Statement Captions - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid income taxes | $ 6,645 | $ 22,890 |
Interest receivable | 310 | 2,427 |
Other | 12,195 | 2,813 |
Other current assets, total | $ 19,150 | $ 28,130 |
Composition Of Certain Financ47
Composition Of Certain Financial Statement Captions Composition of Certain Financial Statement Captions - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 57,870 | $ 23,033 | |
Less: Accumulated depreciation and amortization | (19,015) | (19,285) | |
Property and equipment, net | 38,855 | 3,748 | $ 4,322 |
Estimated increase in combined amortization and depreciation expense due to acquired intangible assets and property and equipment measured at fair value | 2,300 | 1,600 | $ 1,800 |
Equipment, furniture and other | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 28,071 | 18,738 | |
Building and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 18,153 | 455 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 5,300 | 0 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 6,346 | $ 3,840 |
Composition Of Certain Financ48
Composition Of Certain Financial Statement Captions - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Employee compensation and benefits | $ 18,584 | $ 6,848 |
Accrued interest | 2,200 | 0 |
Other | 8,302 | 3,414 |
Accrued liabilities, total | $ 29,086 | $ 10,262 |
Composition Of Certain Financ49
Composition Of Certain Financial Statement Captions - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Unrealized loss on available-for-sale securities, net of tax | $ (148) | $ (1,437) |
Accumulated other comprehensive income (loss) | $ (148) | $ (1,437) |
Financial Instruments - Summary
Financial Instruments - Summary of Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 61,985 | $ 361,298 |
Gross Unrealized Gains | 7 | 22 |
Gross Unrealized Losses | (156) | (1,460) |
Estimated Fair Value | 61,836 | 359,860 |
Corporate bonds and notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 36,590 | 257,461 |
Gross Unrealized Gains | 7 | 7 |
Gross Unrealized Losses | (95) | (1,286) |
Estimated Fair Value | 36,502 | 256,182 |
Municipal bonds and notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 70,772 | |
Gross Unrealized Gains | 12 | |
Gross Unrealized Losses | (81) | |
Estimated Fair Value | 70,703 | |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 5,220 | 5,377 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (4) | 0 |
Estimated Fair Value | 5,216 | 5,380 |
Treasury and agency notes and bills | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 6,029 | 26,973 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (57) | (93) |
Estimated Fair Value | 5,972 | 26,880 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 14,146 | 715 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 14,146 | 715 |
Cash and cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | 14,457 | 715 |
Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | $ 47,379 | $ 359,145 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Investments [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 113 | $ 381.7 |
Unrealized losses (net of unrealized gains), net of tax, related to temporary decrease in value of available-for-sale securities | (0.1) | |
Operating Accounts | ||
Schedule of Investments [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 51.2 | $ 21.9 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value and Gross Unrealized Losses Related to Individual Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | $ 25,866 | $ 271,347 |
Gross Unrealized Losses, Less Than 12 Months | (105) | (1,336) |
Fair Value, 12 Months Or More | 13,230 | 70,447 |
Gross Unrealized Losses, 12 Months or More | (51) | (124) |
Fair Value, Total | 39,096 | 341,794 |
Gross Unrealized Losses, Total | (156) | (1,460) |
Corporate bonds and notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 14,678 | 183,491 |
Gross Unrealized Losses, Less Than 12 Months | (44) | (1,162) |
Fair Value, 12 Months Or More | 13,230 | 70,447 |
Gross Unrealized Losses, 12 Months or More | (51) | (124) |
Fair Value, Total | 27,908 | 253,938 |
Gross Unrealized Losses, Total | (95) | (1,286) |
Municipal bonds and notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 60,976 | |
Gross Unrealized Losses, Less Than 12 Months | (81) | |
Fair Value, 12 Months Or More | 0 | |
Gross Unrealized Losses, 12 Months or More | 0 | |
Fair Value, Total | 60,976 | |
Gross Unrealized Losses, Total | (81) | |
Treasury and agency notes and bills | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 5,972 | 26,880 |
Gross Unrealized Losses, Less Than 12 Months | (57) | (93) |
Fair Value, 12 Months Or More | 0 | |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 5,972 | 26,880 |
Gross Unrealized Losses, Total | (57) | $ (93) |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less Than 12 Months | 5,216 | |
Gross Unrealized Losses, Less Than 12 Months | (4) | |
Gross Unrealized Losses, 12 Months or More | 0 | |
Fair Value, Total | 5,216 | |
Gross Unrealized Losses, Total | $ (4) |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Value of Marketable Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less | $ 32,035 | |
Due in one to two years | 22,835 | |
Due in two to three years | 6,966 | |
Estimated Fair Value | $ 61,836 | $ 359,860 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) $ in Millions | 1 Months Ended |
Dec. 31, 2014USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |
Gain on discontinued operations | $ 7.6 |
Discontinued Operations - Resul
Discontinued Operations - Results from Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Product and service revenues | $ 0 | $ 0 | $ 32 |
Total revenue | 0 | 0 | 32 |
Cost of revenue | 0 | 0 | 21 |
Research, development and other related costs | 0 | 0 | 6,190 |
Selling, general and administrative | 0 | 389 | 6,254 |
Restructuring, impairment of long-lived assets and other charges and gain on sale of patents | 0 | (371) | (3,178) |
Impairment of goodwill | 0 | 0 | 0 |
Total operating expenses | 0 | 18 | 9,287 |
Other income and (expense), net | 0 | 0 | 629 |
Operating loss before taxes | 0 | (18) | (8,626) |
Expense (benefit) from income taxes | 0 | 83 | (4,137) |
Net loss from discontinued operations | $ 0 | $ (101) | $ (4,489) |
Discontinued Operations - Curre
Discontinued Operations - Current and Non-current Asset and Current Liabilities of Discontinued Operations (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract] | ||
Total assets of discontinued operations | $ 0 | $ 0 |
Total liabilities of discontinued operations | $ 0 | $ 0 |
Fair Value - Assets Required to
Fair Value - Assets Required to be Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 61,836 | $ 359,860 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,146 | 715 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 47,690 | 359,145 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,146 | 715 |
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,146 | 715 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Corporate bonds and notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 36,502 | 256,182 |
Corporate bonds and notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Corporate bonds and notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 36,502 | 256,182 |
Corporate bonds and notes | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Municipal bonds and notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 70,703 | |
Municipal bonds and notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Municipal bonds and notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 70,703 | |
Municipal bonds and notes | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Treasury and agency notes and bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5,972 | 26,880 |
Treasury and agency notes and bills | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Treasury and agency notes and bills | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5,972 | 26,880 |
Treasury and agency notes and bills | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5,216 | 5,380 |
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5,216 | 5,380 |
Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Fair Value - Measured on a Nonr
Fair Value - Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Fair Value, Assets Measured on NonRecurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Gain on discontinued operations | $ 7,600 | |||||
Accumulated amortization | $ 139,546 | $ 107,676 | ||||
Assets held for sale | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||||||
Fair Value, Assets Measured on NonRecurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning period | 0 | 0 | ||||
Assets transferred | 0 | 0 | ||||
Assets sold | 0 | 0 | ||||
Assets received | 0 | 0 | ||||
Balance, ending period | 0 | 0 | 0 | |||
Assets included in discontinued operations and held for sale | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||||||
Fair Value, Assets Measured on NonRecurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning period | 0 | 0 | [1] | |||
Assets transferred | 0 | 0 | ||||
Assets sold | 0 | 0 | [2] | |||
Assets received | 0 | 0 | ||||
Balance, ending period | 0 | [1] | 0 | 0 | ||
Other | Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||||||
Fair Value, Assets Measured on NonRecurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning period | 4,280 | 4,280 | ||||
Assets transferred | 0 | 0 | ||||
Assets sold | 0 | 0 | ||||
Assets received | 0 | 0 | ||||
Balance, ending period | $ 4,280 | 4,280 | [3] | $ 4,280 | ||
Accumulated amortization | $ 1,600 | |||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmU5ZmVkZDg0MGNjMDQ3ZjA5MDVjMmI2NmIxM2RiOGJifFRleHRTZWxlY3Rpb246OTE0MkNGRjEzNUZGNjk2MjRBNDhEQkJFOTlFRDBGMkUM} | |||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmU5ZmVkZDg0MGNjMDQ3ZjA5MDVjMmI2NmIxM2RiOGJifFRleHRTZWxlY3Rpb246MEQ1RjQ3MTlBNzdFMzI0OUNENDdEQkJFOTlFRDUzOEUM} | |||||
[3] | This amount represents the value of the patents that were received as part of licensing settlements with customers. These assets were valued using a methodology based on an arms-length purchase price of bulk patent assets, with adjustments based on limited pick rights, the total available market, and remaining average patent life. The value above is gross and the accumulated amortization to date is $1.6 million. |
Business Combinations Merger Co
Business Combinations Merger Consideration (DTS, Inc) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Selling, general and administrative expense associated with unvested DTS equity awards assumed | $ 72,065 | $ 43,592 | $ 47,208 | |
Research and development expense associated with unvested DTS equity awards assumed | 44,738 | $ 32,181 | $ 32,270 | |
DTS Merger | ||||
Business Acquisition [Line Items] | ||||
Right to receive cash (USD per share) | $ 42.50 | |||
Cash paid for outstanding DTS common stock | $ 764,331 | |||
Cash paid for payoff of existing DTS debt | 128,855 | |||
Cash paid for vested DTS equity awards | 48,395 | |||
Fair value of assumed DTS equity awards relating to pre-acquisition services | 13,124 | |||
Aggregate purchase price | 954,705 | |||
Estimated unbilled contract receivable in purchase price allocation | $ 25,300 | |||
Adviser and legal fees recognized in selling, general administrative expense to consummate merger | 11,100 | |||
Unvested DTS equity awards assumed | 45,400 | |||
Unvested DTS equity awards assumed, pre-acquisition services | 13,100 | |||
Unvested DTS equity awards assumed, post-acquisition services | 32,300 | |||
Selling, general and administrative expense associated with unvested DTS equity awards assumed | 4,900 | |||
Research and development expense associated with unvested DTS equity awards assumed | 1,700 | |||
DTS Merger | Unbilled remaining payments | ||||
Business Acquisition [Line Items] | ||||
Unbilled remaining payments expected to be collected subsequent to acquisition date | 41,700 | |||
Unbilled remaining payments expected to be collected subsequent to acquisition date, fair value | $ 40,000 | |||
DTS Merger | Trade name | ||||
Business Acquisition [Line Items] | ||||
Discount rate used to value intangible assets | 14.00% | |||
DTS Merger | In-process research and development (IPR&D) | ||||
Business Acquisition [Line Items] | ||||
Discount rate used to value intangible assets | 14.50% |
Business Combinations Purchase
Business Combinations Purchase Price Allocation (DTS, Inc) (Details) - USD ($) $ in Thousands | Dec. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Goodwill | $ 382,963 | [1] | $ 10,136 | $ 2,099 | |
Minimum | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Estimated useful life (in years) | 1 year | ||||
Maximum | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Estimated useful life (in years) | 15 years | ||||
DTS Merger | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Cash and cash equivalents | $ 53,377 | ||||
Accounts receivable | 27,114 | ||||
Unbilled contracts receivable, short-term | 52,845 | ||||
Other current assets | 5,269 | ||||
Prepaid income taxes | 3,278 | ||||
Property and equipment | 33,573 | ||||
Goodwill | 372,827 | ||||
Identifiable intangible assets | 469,078 | ||||
Long-term deferred tax assets | 637 | ||||
Unbilled contracts receivable, long-term | 12,464 | ||||
Other assets | 4,423 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Accounts payable | (4,006) | ||||
Accrued liabilities | (19,727) | ||||
Deferred revenue | (561) | ||||
Income taxes payable | (727) | ||||
Long-term deferred tax liabilities | (39,822) | ||||
Other long-term liabilities | (15,337) | ||||
Aggregate purchase price | 954,705 | ||||
DTS Merger | Customer contracts and related relationships | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Identifiable intangible assets | $ 281,569 | ||||
DTS Merger | Customer contracts and related relationships | Minimum | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Estimated useful life (in years) | 3 years | ||||
DTS Merger | Customer contracts and related relationships | Maximum | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Estimated useful life (in years) | 7 years | ||||
DTS Merger | Developed technology | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Identifiable intangible assets | $ 143,639 | ||||
DTS Merger | Developed technology | Minimum | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Estimated useful life (in years) | 5 years | ||||
DTS Merger | Developed technology | Maximum | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Estimated useful life (in years) | 6 years | ||||
DTS Merger | Trademarks and tradenames | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Identifiable intangible assets | $ 38,483 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Estimated useful life (in years) | 8 years | ||||
DTS Merger | Noncompete agreements | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Identifiable intangible assets | $ 2,231 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Estimated useful life (in years) | 1 year | ||||
DTS Merger | In-process research and development (IPR&D) | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Identifiable intangible assets | $ 3,156 | ||||
[1] | his amount |
Business Combinations (DTS, Inc
Business Combinations (DTS, Inc) - Pro-Forma Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Revenues | $ 259,565 | $ 273,300 | $ 278,807 |
Net income (loss) | 56,089 | 117,016 | $ 170,454 |
DTS Merger | |||
Business Acquisition [Line Items] | |||
Revenues | 259,565 | 273,300 | |
Net income (loss) | 56,089 | 117,016 | |
Pro forma revenue | 434,971 | 358,911 | |
Pro forma net income | 17 | (38,139) | |
Revenue recognized from licensing agreements acquired from DTS | 200 | ||
Earnings of DTS included in the consolidated statement of operations | 22,700 | ||
Estimated reduction to historical combined revenue | $ 12,600 | $ 52,600 |
Business Combinations (DTS, I62
Business Combinations (DTS, Inc) Pro-Form Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Estimated increase in combined amortization and depreciation expense due to acquired intangible assets and property and equipment measured at fair value | $ 2,300 | $ 1,600 | $ 1,800 |
Estimated increase in combined stock-based compensation expense due to assumed DTS equity awards measured at fair value | 21,101 | 11,517 | 13,269 |
Estimated increase in combined interest and other expense, net due to estimated increase in interest expense (and amortization of debt issuance costs) from new debt obtained to finance the Transaction and estimated lower interest income from lower investment holdings | 2,409 | 0 | $ 0 |
DTS Merger | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Elimination of Tessera and DTS non-recurring transaction costs reflected in historical results | $ 11,100 | ||
Weighted average statutory tax rate used for tax effects on pro forma adjustments | 23.00% | ||
DTS Merger | Acquisition-related costs | Pro Forma | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Estimated increase in combined amortization and depreciation expense due to acquired intangible assets and property and equipment measured at fair value | $ 59,092 | 75,975 | |
Estimated increase in combined stock-based compensation expense due to assumed DTS equity awards measured at fair value | 4,781 | 6,888 | |
Estimated increase in combined interest and other expense, net due to estimated increase in interest expense (and amortization of debt issuance costs) from new debt obtained to finance the Transaction and estimated lower interest income from lower investment holdings | 24,806 | 28,964 | |
Elimination of Tessera and DTS non-recurring transaction costs reflected in historical results | (27,900) | 0 | |
Estimated increase (decrease) to historical combined expense for non-recurring employee-related costs resulting from the acquisition, including severance and retention bonus expense | $ (3,436) | $ 21,100 |
Business Combinations (Ziptroni
Business Combinations (Ziptronix) (Details) - USD ($) $ in Thousands | Aug. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Identified Intangible Assets [Abstract] | ||||||
Goodwill | $ 382,963 | [1] | $ 10,136 | $ 2,099 | ||
Minimum | ||||||
Identified Intangible Assets [Abstract] | ||||||
Estimated useful life (in years) | 1 year | |||||
Maximum | ||||||
Identified Intangible Assets [Abstract] | ||||||
Estimated useful life (in years) | 15 years | |||||
Trade name | Minimum | ||||||
Identified Intangible Assets [Abstract] | ||||||
Estimated useful life (in years) | 4 years | |||||
Trade name | Maximum | ||||||
Identified Intangible Assets [Abstract] | ||||||
Estimated useful life (in years) | 10 years | |||||
Ziptronix, Inc | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Aggregate purchase price | $ 39,000 | |||||
Working capital assumed | 1,500 | |||||
Cash and cash equivalents | 1,900 | |||||
Amount of consideration withheld until certain employees fulfill length-of-employment obligations | 700 | |||||
Net Tangible Assets and Liabilities [Abstract] | ||||||
Unbilled contract asset | 3,380 | |||||
Deferred tax assets and liabilities, net | (7,671) | |||||
Other accrued liabilities | (385) | |||||
Net tangible assets (liabilities) | (4,676) | |||||
Identified Intangible Assets [Abstract] | ||||||
Goodwill | [2] | 8,037 | ||||
Total assets acquired and liabilities assumed | 43,237 | |||||
Total purchase price | 38,561 | |||||
Ziptronix, Inc | Patents/existing technology | ||||||
Identified Intangible Assets [Abstract] | ||||||
Identifiable intangible assets | $ 32,300 | |||||
Ziptronix, Inc | Patents/existing technology | Minimum | ||||||
Identified Intangible Assets [Abstract] | ||||||
Estimated useful life (in years) | 5 years | |||||
Ziptronix, Inc | Patents/existing technology | Maximum | ||||||
Identified Intangible Assets [Abstract] | ||||||
Estimated useful life (in years) | 8 years | |||||
Ziptronix, Inc | Trade name | ||||||
Identified Intangible Assets [Abstract] | ||||||
Identifiable intangible assets | $ 1,300 | |||||
Estimated useful life (in years) | 8 years | |||||
Ziptronix, Inc | Customer relationships | ||||||
Identified Intangible Assets [Abstract] | ||||||
Identifiable intangible assets | $ 1,600 | |||||
Ziptronix, Inc | Customer relationships | Minimum | ||||||
Identified Intangible Assets [Abstract] | ||||||
Estimated useful life (in years) | 2 years | |||||
Ziptronix, Inc | Customer relationships | Maximum | ||||||
Identified Intangible Assets [Abstract] | ||||||
Estimated useful life (in years) | 5 years | |||||
[1] | his amount | |||||
[2] | The Company does not anticipate that any of this goodwill will be deductible for tax purposes. |
Business Combinations (Ziptro64
Business Combinations (Ziptronix) - Pro-Forma Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015payment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Business Acquisition [Line Items] | |||||
Revenues | $ 259,565 | $ 273,300 | $ 278,807 | ||
Net income (loss) | 56,089 | 117,016 | 170,454 | ||
Amortization expense | $ 31,870 | 20,624 | 18,471 | ||
Ziptronix, Inc | |||||
Business Acquisition [Line Items] | |||||
Revenues | 273,300 | 278,807 | |||
Net income (loss) | 117,016 | 170,454 | |||
Pro forma revenue | 304,615 | [1] | 282,637 | ||
Pro forma net income | 137,595 | [1] | 167,165 | ||
Amortization expense | 5,600 | $ 5,600 | |||
Acquisition related costs | $ 3,100 | ||||
Number of license fee payments | payment | 1 | ||||
[1] | Almost all of the revenue and earnings related to Ziptronix in this period is the result of one-time license fee payments during the three months ended March 31, 2015 (unaudited). |
Goodwill and Identified Intan65
Goodwill and Identified Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Goodwill [Roll Forward] | ||||
Goodwill, beginning | $ 10,136 | $ 2,099 | ||
Goodwill, ending | 382,963 | [1] | 10,136 | |
Ziptronix, Inc | ||||
Goodwill [Roll Forward] | ||||
Goodwill acquired through the acquisition of Ziptronix, Inc. (1) | $ 8,037 | |||
DTS | ||||
Goodwill [Roll Forward] | ||||
Goodwill acquired through the acquisition of Ziptronix, Inc. (1) | [2] | 372,827 | ||
Product licensing segment | ||||
Goodwill [Roll Forward] | ||||
Goodwill, ending | [1] | 0 | ||
Semiconductor and IP licensing segment | ||||
Goodwill [Roll Forward] | ||||
Goodwill, ending | [1] | $ 0 | ||
[1] | his amount | |||
[2] | For more information regarding these transactions, see Note 8 - "Business Combinations." |
Goodwill And Identified Intan66
Goodwill And Identified Intangible Assets Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | $ 678,269 | $ 202,765 | ||
Accumulated Amortization | (139,546) | (107,676) | ||
Net | 538,723 | 95,089 | ||
Intangible assets, gross | 681,425 | 202,765 | ||
Intangible assets, net | 541,879 | 95,089 | ||
Amortization of intangible assets | 31,870 | 20,624 | $ 18,471 | |
Ziptronix, Inc | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 5,600 | $ 5,600 | ||
In-process research and development (IPR&D) | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | 3,156 | |||
Acquired patents core technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | [1] | 140,744 | 140,345 | |
Accumulated Amortization | [1] | (96,896) | (79,128) | |
Net | [1] | 43,848 | 61,217 | |
Existing technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | [2] | 203,442 | 50,620 | |
Accumulated Amortization | [2] | (27,315) | (20,182) | |
Net | [2] | 176,127 | 30,438 | |
Customer contracts and related relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | 291,769 | 10,200 | ||
Accumulated Amortization | (14,011) | (7,792) | ||
Net | 277,758 | 2,408 | ||
Customer contracts and related relationships | DTS | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | 0 | |||
Trademarks/trade name | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | 40,083 | 1,600 | ||
Accumulated Amortization | (1,138) | (574) | ||
Net | 38,945 | 1,026 | ||
Trademarks/trade name | DTS | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | 0 | |||
Non-competition agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, gross | 2,231 | 0 | ||
Accumulated Amortization | (186) | 0 | ||
Net | 2,045 | $ 0 | ||
Existing technology | DTS | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | 0 | |||
Existing technology | Ziptronix, Inc | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 31,700 | |||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmU5ZmVkZDg0MGNjMDQ3ZjA5MDVjMmI2NmIxM2RiOGJifFRleHRTZWxlY3Rpb246NEYzNUJEODUyMTQ5OEE5MTg4QUREQkJFOTlFRDlFRDQM} | |||
[2] | In 2016, $143.6 million of existing technology was acquired through the acquisition of DTS. In 2015, $31.7 million of existing technology was acquired through our acquisition of Ziptronix. |
Goodwill And Identified Intan67
Goodwill And Identified Intangible Assets Goodwill And Identified Intangible Assets (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 15 years |
Acquired patents core technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 3 years |
Acquired patents core technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 15 years |
Existing technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 5 years |
Existing technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 10 years |
Customer contracts and related relationships(2) | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 3 years |
Customer contracts and related relationships(2) | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 9 years |
Trade name | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 4 years |
Trade name | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 10 years |
Non-competition agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 1 year |
Goodwill and Identified Intan68
Goodwill and Identified Intangible Assets - Estimated Future Amortization Expense of Intangible Assets, Excluding the In-Process Research and Development (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 111,813 |
2,018 | 107,396 |
2,019 | 98,310 |
2,020 | 86,595 |
2,021 | 78,933 |
Thereafter | 55,676 |
Finite-lived intangible assets, net | $ 538,723 |
Debt Debt - Narrative (Details)
Debt Debt - Narrative (Details) | Dec. 01, 2016USD ($) | Dec. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | ||
Borrowings | $ 600,000,000 | |
Term B Loan Facility | Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Quarterly payment as a percentage of principal | 0.25% | |
Debt Instrument, covenant, maximum ratio | 1.50 | |
Debt Instrument, covenant, minimum ratio | 1 | |
Debt instrument, maturity date | Nov. 30, 2023 | |
Borrowings | $ 600,000,000 | $ 600,000,000 |
Interest rate | 4.40% | |
Unamortized debt issuance costs | $ 16,800,000 | |
Interest expense | 2,400,000 | |
Amortization of debt issuance costs | $ 200,000 | |
Term B Loan Facility | Credit Agreement | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, description of variable rate basis | base rate | |
Term B Loan Facility | Credit Agreement | Base Rate | Effective Date Margin | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.25% | |
Term B Loan Facility | Credit Agreement | Base Rate | Margin Subject to Debt Covenant | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.00% | |
Term B Loan Facility | Credit Agreement | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, description of variable rate basis | LIBOR | |
Term B Loan Facility | Credit Agreement | London Interbank Offered Rate (LIBOR) | Effective Date Margin | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 3.25% | |
Term B Loan Facility | Credit Agreement | London Interbank Offered Rate (LIBOR) | Margin Subject to Debt Covenant | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 3.00% | |
Term B Loan Facility | Credit Agreement | Royal Bank of Canada | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 600,000,000 |
Debt Debt - Expected Future Pri
Debt Debt - Expected Future Principal Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 6,000 |
2,018 | 6,000 |
2,019 | 6,000 |
2,020 | 6,000 |
2,021 | 6,000 |
Thereafter | 570,000 |
Total | $ 600,000 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Basic and Diluted Net Loss Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Weighted average common shares outstanding | 49,203 | 51,841 | 52,898 |
Unvested common shares subject to repurchase | (16) | (39) | (79) |
Total common shares-basic | 49,187 | 51,802 | 52,819 |
Options | 357 | 343 | 346 |
Restricted stock awards and units | 646 | 441 | 398 |
Total common shares-diluted | 50,190 | 52,586 | 53,563 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Shares of common stock excluded from the computation of net loss per share | 0.7 | 0.1 | 1.5 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | 89 Months Ended | 101 Months Ended | ||
Jun. 30, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 450,000,000 | |||||
Treasury stock, total repurchase during period (in shares) | 8,234,000 | 10,488,000 | ||||
Treasury stock, average price of share repurchased (in dollars per share) | $ 27.22 | $ 27.83 | ||||
Treasury stock, total cost of repurchased stock | $ 224,100,000 | $ 291,800,000 | ||||
Stock repurchase program, remaining amount available for repurchase | $ 158,200,000 | |||||
Dividends paid (usd per share) | $ 0.10 | |||||
Cash dividends declared per share (in dollars per share) | $ 0.8 | $ 0.80 | $ 0.92 | |||
Performance Shares | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance awards, percentage of grant available to vest | 0.00% | |||||
Performance Shares | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance awards, percentage of grant available to vest | 100.00% | |||||
Employee stock purchase plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 24 months | |||||
Shares reserved for grant | 407,000 | |||||
Maximum ownership percentage | 5.00% | |||||
Required weekly hours | 20 hours | |||||
Award requisite service period | 5 months | |||||
Maximum employee subscription rate | 20.00% | |||||
Purchase price of common stock, percent | 85.00% | |||||
Maximum employee subscription amount | $ 25,000 | |||||
Rolling expiration period | 24 months | |||||
2003 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive stock options granted to employees at exercise price | 110.00% | |||||
Voting power of all classes of stock of the Company | 10.00% | |||||
Expiration period | 10 years | |||||
Vesting period | 4 years | |||||
2003 Plan | Non employee stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive stock options granted to employees at exercise price | 85.00% | |||||
2003 Plan | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
2003 Plan | Employee stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive stock options granted to employees at exercise price | 100.00% | |||||
Shares reserved for grant | 3,400,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of Shares, Beginning balance (shares) | 1,142 | 1,616 | 3,917 |
Number of Shares, Options granted (shares) | 586 | 84 | 220 |
Number of Shares, Options exercised (shares) | (350) | (465) | (1,797) |
Number of Shares, Options cancelled / forfeited / expired (shares) | (46) | (93) | (724) |
Number of Shares, Ending balance (shares) | 1,332 | 1,142 | 1,616 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted Average Exercise Price Per Share, Beginning balance (usd per share) | $ 20.63 | $ 19.34 | $ 18.37 |
Weighted Average Exercise Price Per Share, Options granted (usd per share) | 29.05 | 36.60 | 22.29 |
Weighted Average Exercise Price Per Share, Options exercised (usd per share) | 20.01 | 19.35 | 18.13 |
Weighted Average Exercise Price Per Share, Options cancelled / forfeited / expired (usd per share) | 23.25 | 19.04 | 18 |
Weighted Average Exercise Price Per Share, Ending balance (usd per share) | $ 24.41 | $ 20.63 | $ 19.34 |
Weighted Average Remaining Contractual Life (in years) | 5 years 7 months 25 days | ||
Aggregate Intrinsic Value | $ 26,366 | ||
Vested and expected to vest, number of shares subject to options | 1,274 | ||
Vested and expected to vest, weighted average remaining contractual life (in years) | 5 years 6 months 22 days | ||
Vested and expected to vest, aggregate intrinsic value | $ 25,230 | ||
Exercisable, number of shares subject to options | 813 | ||
Exercisable, weighted average remaining contractual life (in years) | 4 years 8 months 1 day | ||
Exercisable, aggregate intrinsic value | $ 15,039 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options Outstanding and Exercisable (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
$12.52 - $18.65 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | $ 12.52 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 18.65 |
Number Outstanding (in thousands) | shares | 139 |
Weighted Average Remaining Contractual Life (in years) | 5 years 10 months |
Weighted Average Exercise Price per Share | $ 16.18 |
Number Exercisable (in thousands) | shares | 83 |
Weighted Average Exercise Price per Share | $ 14.97 |
$18.74 - $18.76 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 18.74 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 18.76 |
Number Outstanding (in thousands) | shares | 15 |
Weighted Average Remaining Contractual Life (in years) | 5 years 2 months 6 days |
Weighted Average Exercise Price per Share | $ 18.75 |
Number Exercisable (in thousands) | shares | 7 |
Weighted Average Exercise Price per Share | $ 18.74 |
$18.84 - $18.84 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 18.84 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 18.84 |
Number Outstanding (in thousands) | shares | 367 |
Weighted Average Remaining Contractual Life (in years) | 6 years 11 months 10 days |
Weighted Average Exercise Price per Share | $ 18.84 |
Number Exercisable (in thousands) | shares | 258 |
Weighted Average Exercise Price per Share | $ 18.84 |
$18.89 - $19.33 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 18.89 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 19.33 |
Number Outstanding (in thousands) | shares | 141 |
Weighted Average Remaining Contractual Life (in years) | 3 years 8 months 24 days |
Weighted Average Exercise Price per Share | $ 19.22 |
Number Exercisable (in thousands) | shares | 76 |
Weighted Average Exercise Price per Share | $ 19.24 |
$19.34 - $20.43 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 19.34 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 20.43 |
Number Outstanding (in thousands) | shares | 201 |
Weighted Average Remaining Contractual Life (in years) | 5 years 5 months 25 days |
Weighted Average Exercise Price per Share | $ 19.87 |
Number Exercisable (in thousands) | shares | 98 |
Weighted Average Exercise Price per Share | $ 19.93 |
$20.63 - $26.16 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 20.63 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 26.16 |
Number Outstanding (in thousands) | shares | 145 |
Weighted Average Remaining Contractual Life (in years) | 6 years 7 months 12 days |
Weighted Average Exercise Price per Share | $ 22.86 |
Number Exercisable (in thousands) | shares | 58 |
Weighted Average Exercise Price per Share | $ 23.44 |
$26.34 - $38.65 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 26.34 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 38.65 |
Number Outstanding (in thousands) | shares | 121 |
Weighted Average Remaining Contractual Life (in years) | 8 years 7 days |
Weighted Average Exercise Price per Share | $ 34.64 |
Number Exercisable (in thousands) | shares | 30 |
Weighted Average Exercise Price per Share | $ 34.52 |
$40.87 - $40.87 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 40.87 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 40.87 |
Number Outstanding (in thousands) | shares | 4 |
Weighted Average Remaining Contractual Life (in years) | 1 year 2 months 4 days |
Weighted Average Exercise Price per Share | $ 40.87 |
Number Exercisable (in thousands) | shares | 4 |
Weighted Average Exercise Price per Share | $ 40.87 |
$41.15 - $41.15 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 41.15 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 41.15 |
Number Outstanding (in thousands) | shares | 10 |
Weighted Average Remaining Contractual Life (in years) | 3 years 4 months |
Weighted Average Exercise Price per Share | $ 41.15 |
Number Exercisable (in thousands) | shares | 10 |
Weighted Average Exercise Price per Share | $ 41.15 |
$43.77 - $43.77 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 43.77 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 43.77 |
Number Outstanding (in thousands) | shares | 189 |
Weighted Average Remaining Contractual Life (in years) | 2 years 7 months 9 days |
Weighted Average Exercise Price per Share | $ 43.77 |
Number Exercisable (in thousands) | shares | 189 |
Weighted Average Exercise Price per Share | $ 43.77 |
$12.52 - $43.77 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Share-based compensation, shares authorized under stock option plans, exercise price range, lower range limit | 12.52 |
Share-based compensation, shares authorized under stock option plans, exercise price range, upper range limit | $ 43.77 |
Number Outstanding (in thousands) | shares | 1,332 |
Weighted Average Remaining Contractual Life (in years) | 5 years 7 months 24 days |
Weighted Average Exercise Price per Share | $ 24.41 |
Number Exercisable (in thousands) | shares | 813 |
Weighted Average Exercise Price per Share | $ 25.71 |
Stockholders' Equity - Summar76
Stockholders' Equity - Summary of Restricted Stock Awards and Units (Detail) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted stock awards and units, beginning balance (shares) | 1,209 | 1,135 | 1,085 |
Restricted stock awards and units, granted (shares) | 682 | 562 | 531 |
Restricted stock awards and units, awards assumed (shares) | 925 | ||
Restricted stock awards and units, vested / earned (shares) | (482) | (384) | (289) |
Restricted stock awards and units, cancelled / forfeited (shares) | (254) | (104) | (192) |
Restricted stock awards and units, ending balance (shares) | 2,080 | 1,209 | 1,135 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted average grant date fair value per share of restricted stock and units, beginning balance (usd per share) | $ 29.28 | $ 20.30 | $ 18.46 |
Weighted average grant date fair value per share of restricted stock and units, granted (usd per share) | 30.85 | 39.77 | 22.41 |
Weighted average grant date fair value per share of restricted stock and units, assumed (usd per share) | 40.13 | ||
Weighted average grant date fair value per share of restricted stock and units, vested / earned (usd per share) | 32.18 | 20.17 | 18.85 |
Weighted average grant date fair value of restricted stock and units, cancelled / forfeited (usd per share) | 29.64 | 21.54 | 17.91 |
Weighted average grant date fair value per share of restricted stock and units, ending balance (usd per share) | $ 33.91 | $ 29.28 | $ 20.30 |
Number of Shares Subject to Time- based Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted stock awards and units, beginning balance (shares) | 690 | 502 | 737 |
Restricted stock awards and units, granted (shares) | 596 | 472 | 222 |
Restricted stock awards and units, awards assumed (shares) | 925 | ||
Restricted stock awards and units, vested / earned (shares) | (398) | (240) | (289) |
Restricted stock awards and units, cancelled / forfeited (shares) | (117) | (44) | (168) |
Restricted stock awards and units, ending balance (shares) | 1,696 | 690 | 502 |
Number of Shares Subject to Performance- based Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted stock awards and units, beginning balance (shares) | 519 | 633 | 348 |
Restricted stock awards and units, granted (shares) | 86 | 90 | 309 |
Restricted stock awards and units, awards assumed (shares) | 0 | ||
Restricted stock awards and units, vested / earned (shares) | (84) | (144) | 0 |
Restricted stock awards and units, cancelled / forfeited (shares) | (137) | (60) | (24) |
Restricted stock awards and units, ending balance (shares) | 384 | 519 | 633 |
Stock-Based Compensation Expe77
Stock-Based Compensation Expense - Effect of Recording Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 21,101 | $ 11,517 | $ 13,269 |
Tax effect on stock-based compensation expense | (6,314) | (3,107) | (1,968) |
Net effect on net income | 14,787 | 8,410 | 11,301 |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 0 | 0 | 18 |
Research, development and other related costs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 7,104 | 4,005 | 2,823 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 13,997 | $ 7,512 | $ 10,428 |
Stock-Based Compensation Expe78
Stock-Based Compensation Expense - Categorized by Equity Components (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 21,101 | $ 11,517 | $ 13,269 |
Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 3,249 | 2,676 | 3,336 |
Restricted stock awards and units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 17,024 | 8,232 | 9,322 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 828 | $ 609 | $ 611 |
Stock-Based Compensation Expe79
Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Grants in period, net of forfeitures | 586 | 84 | 220 |
Grants in period, estimated fair value (usd per share) | $ 8.57 | $ 5.71 | |
Total intrinsic value of options exercised | $ 5.5 | $ 9.3 | $ 13.3 |
Unrecognized stock-based compensation balance after estimated forfeitures related to unvested stock options | $ 2.2 | $ 3 | |
Estimated weighted average amortization period | 2 years 5 months | 2 years | |
Issuance of common stock in connection with employee common stock purchase plan (in shares) | 89 | 77 | 137 |
Stock-based compensation expense, incremental compensation cost | $ (0.3) | $ (3) | |
Black Scholes Option Pricing Model | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Expected life (in years) | 2 years | ||
Restricted Stock Awards And Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Restricted stock awards, total fair value | $ 15.9 | 7.7 | $ 5.5 |
Unrecognized stock-based compensation balance after estimated forfeitures related to unvested stock options | $ 33.7 | $ 11.1 | |
Estimated weighted average amortization period | 1 year 2 months 6 days | 2 years 2 months |
Stock-Based Compensation Expe80
Stock-Based Compensation Expense - Schedule of Assumptions Used to Value Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected life (in years) | 3 years 9 months 2 days | 3 years 9 months 2 days | 4 years 11 months |
Risk-free interest rate | 1.70% | ||
Dividend yield | 2.40% | 3.40% | |
Expected volatility | 29.00% | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected life (in years) | 2 years | 2 years | 2 years |
Expected volatility | 30.00% | ||
Minimum | Stock Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.10% | 1.60% | |
Dividend yield | 2.10% | ||
Expected volatility | 34.00% | 37.30% | |
Minimum | Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 0.50% | 0.40% | 0.30% |
Dividend yield | 2.40% | 2.10% | 3.40% |
Expected volatility | 29.70% | 27.60% | |
Maximum | Stock Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.40% | 1.80% | |
Dividend yield | 2.90% | 4.10% | |
Expected volatility | 35.60% | 41.40% | |
Maximum | Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 0.80% | 0.70% | 0.50% |
Dividend yield | 3.00% | 3.40% | 3.50% |
Expected volatility | 30.00% | 30.60% |
Income Taxes - Components Of In
Income Taxes - Components Of Income (loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 90,154 | $ 151,862 | $ 155,757 |
Foreign | 561 | 13,772 | 11,489 |
Income before taxes from continuing operations | $ 90,715 | $ 165,634 | $ 167,246 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | $ 9,564 | $ 2,737 | $ (797) |
Foreign | 22,552 | 26,275 | 31,824 |
State and local | 8 | 319 | 8 |
Total current | 32,124 | 29,331 | 31,035 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | 2,365 | 23,478 | (38,732) |
Foreign | 392 | (4,138) | 0 |
State and local | (255) | (154) | 0 |
Total deferred | 2,502 | 19,186 | (38,732) |
Provision for income taxes | $ 34,626 | $ 48,517 | $ (7,697) |
Income Taxes - Components Of Co
Income Taxes - Components Of Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 40,969 | $ 15,268 |
Research tax credit | 9,642 | 5,438 |
Foreign tax credit | 7,201 | 5,587 |
Expenses not currently deductible | 5,193 | 12,453 |
Basis difference in fixed and intangible assets | 3,529 | 4,227 |
Gross deferred tax assets | 66,534 | 42,973 |
Valuation allowance | (12,846) | (13,852) |
Net deferred tax assets | 53,688 | 29,121 |
Deferred tax liabilities | ||
Acquired intangible assets, domestic | (70,338) | |
Acquired intangible assets, foreign | (13,045) | (13,597) |
Unremitted earnings of foreign subsidiaries | (129) | (130) |
Net deferred tax liabilities | $ (29,824) | |
Net deferred tax assets | $ 15,394 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | $ 40,969 | $ 15,268 | ||
Valuation allowance | 12,846 | 13,852 | ||
Change in valuation | 1,100 | |||
Unrecognized tax benefits | 30,088 | 3,071 | $ 2,734 | $ 5,031 |
Unrecognized tax benefits that would impact the effective income tax rate | 23,800 | 2,400 | ||
Interest and tax penalties related to unrecognized tax benefits | 500 | $ 500 | ||
Federal | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 104,200 | |||
State | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 108,100 | |||
Foreign | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward | 8,800 | |||
Research Tax Credit Carryforward | State | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward | 10,700 | |||
Research Tax Credit Carryforward | Foreign | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward | 700 | |||
DTS Inc. & Subsidiaries And Ziptronix Inc. | Research Tax Credit Carryforward | Federal | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward | $ 6,700 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State, net of federal benefit | (0.50%) | 0.00% | 0.00% |
Stock-based compensation expense | 2.00% | 0.50% | 0.30% |
Tax exempt interest | (0.20%) | (0.10%) | (0.00%) |
Research tax credit and other | (1.20%) | (0.30%) | (0.30%) |
Foreign withholding tax | 24.70% | 15.70% | 18.80% |
Transaction costs | 2.40% | 0.00% | 0.00% |
Foreign tax rate differential | 0.40% | (2.80%) | (2.20%) |
Foreign tax credit | (23.50%) | (15.30%) | (17.90%) |
Change in valuation allowance | 0.00% | (3.00%) | (38.70%) |
Others | (0.90%) | (0.40%) | 0.40% |
Total | 38.20% | 29.30% | (4.60%) |
Income Taxes - Reconciliation86
Income Taxes - Reconciliation Of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Total unrecognized tax benefits at January 1 | $ 3,071 | $ 2,734 | $ 5,031 |
Gross increases and decreases due to acquisition of DTS | 27,584 | 0 | 0 |
Gross increases and decreases due to tax positions taken in prior periods | 139 | 699 | (193) |
Gross increases and decreases due to tax positions taken in the current period | 264 | 103 | 150 |
Gross increases and decreases due to settlements with taxing authorities | 0 | 0 | (2,023) |
Gross increases and decreases due to lapses in applicable statutes of limitations | (970) | (465) | (231) |
Total unrecognized tax benefits at December 31 | $ 30,088 | $ 3,071 | $ 2,734 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent under operating lease agreement | $ 2.8 | $ 2.1 | $ 3.6 |
Commitments And Contingencies88
Commitments And Contingencies - Schedule of Future Minimum Lease Payments and Purchase Obligations (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 6,227 |
2,017 | 5,300 |
2,018 | 4,699 |
2,019 | 3,936 |
2,020 | 856 |
Thereafter | 1,378 |
Lease Obligations, Total | $ 22,396 |
Segment And Geographic Inform89
Segment And Geographic Information Segment And Geographic Information - Schedule of Operating Income (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||
Reportable segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 259,565 | $ 273,300 | $ 278,807 |
Operating expenses | 170,177 | 111,098 | 113,111 |
Operating income (loss) | 89,388 | 162,202 | 165,696 |
DTS Merger | |||
Segment Reporting Information [Line Items] | |||
Revenues | 259,565 | 273,300 | |
Business acquisition costs | 11,100 | ||
Operating Segments | Semiconductor and IP licensing segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 229,066 | 241,965 | 252,378 |
Operating expenses | 72,812 | 56,315 | 64,287 |
Operating income (loss) | 156,254 | 185,650 | 188,091 |
Operating Segments | Product licensing segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 30,499 | 31,335 | 26,429 |
Operating expenses | 25,299 | 11,191 | 11,954 |
Operating income (loss) | 5,200 | 20,144 | 14,475 |
Unallocated operating expenses | |||
Segment Reporting Information [Line Items] | |||
Revenues | 100 | 1,300 | 3,100 |
Operating expenses | 72,066 | 43,592 | 36,870 |
Operating income (loss) | (72,066) | $ (43,592) | $ (36,870) |
Unallocated operating expenses | DTS Merger | Acquisition-related costs | |||
Segment Reporting Information [Line Items] | |||
Business acquisition costs | $ 23,900 |
Segment And Geographic Inform90
Segment And Geographic Information - Schedule of Geographic Revenue Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)customer | Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($)customer | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Foreign revenues | $ 259,565 | $ 273,300 | $ 278,807 |
Percentage of revenue | 100.00% | 100.00% | 100.00% |
Number of major customers each accounting for 10% or more of total revenues | customer | 4 | 4 | 3 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Foreign revenues | $ 99,594 | $ 98,428 | $ 39,448 |
Percentage of revenue | 38.00% | 36.00% | 14.00% |
Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Foreign revenues | $ 95,170 | $ 87,527 | $ 98,100 |
Percentage of revenue | 37.00% | 32.00% | 35.00% |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Foreign revenues | $ 34,763 | $ 57,049 | $ 100,049 |
Percentage of revenue | 13.00% | 21.00% | 36.00% |
Other Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Foreign revenues | $ 16,968 | $ 16,435 | $ 33,258 |
Percentage of revenue | 6.00% | 6.00% | 12.00% |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Foreign revenues | $ 11,747 | $ 8,199 | $ 5,735 |
Percentage of revenue | 5.00% | 3.00% | 2.00% |
Europe and other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Foreign revenues | $ 1,323 | $ 5,662 | $ 2,217 |
Percentage of revenue | 1.00% | 2.00% | 1.00% |
Segment And Geographic Inform91
Segment And Geographic Information - Schedule of Property and Equipment, Net, by Geographical Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 38,855 | $ 3,748 | $ 4,322 |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 36,891 | 3,219 | 3,802 |
Europe And Other | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 1,252 | 529 | 520 |
Other Asia | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 712 | $ 0 | $ 0 |
Restructuring, Impairment of 92
Restructuring, Impairment of Long-Lived Assets And Other Charges And Gain on Sale of Patents - Additional Information (Detail) - Abandonment of Patents and Technology $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring, impairment of long-lived assets and other charges and gain on sale of patents | $ 1.5 |
Proceeds from Sale of Intangible Assets | $ 11.9 |
Benefit Plan (Details)
Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Employers Contribution To Retirement Savings Plan | $ 0.8 | $ 0.4 | $ 0.4 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Jan. 26, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||
Cash dividends declared per share (in dollars per share) | $ 0.8 | $ 0.80 | $ 0.92 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per share (in dollars per share) | $ 0.20 |
Schedule II Valuation and Qua95
Schedule II Valuation and Qualifying (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 13,852 | $ 27,087 | $ 91,130 |
Charged (Credited) to Expenses | (345) | (6,485) | (64,043) |
Charged (Credited) to Other Accounts | (660) | (6,750) | 0 |
Balance at End of Year | $ 12,847 | $ 13,852 | $ 27,087 |