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SECURITIES AND EXCHANGE COMMISSION
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 95-2039518 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification | |
Number) | ||
15660 Dallas Parkway, Suite 850 | ||
Dallas, Texas | 75248 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, Par Value $0.66 2/3 | The NASDAQ Stock Market LLC |
Large accelerated filerþ | Accelerated filero | Non-accelerated filero | Smaller reporting companyo | |||
(Do not check if a smaller reporting company) |
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PART II | ||||||||
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EX-10.112 | ||||||||
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EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
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Item 1. | Business. |
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Ø | Continuing to focus on increasing packaging integration, particularly with our existing standard array and customer-specific array products, in order to achieve products with increased circuit density, reduced component count and lower overall product cost; | ||
Ø | Expanding existing products and developing new products in our function specific array lines, which combine multiple discrete semiconductor components to achieve specific common electronic device functionality at a low cost; and | ||
Ø | Developing new product lines, which we refer to as end-equipment specific arrays, which combine discrete components with logic and/or standard analog circuits to provide system-level solutions for high-volume, high-growth applications. |
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Ø | Discrete semiconductor products, including performance Schottky rectifiers; performance Schottky diodes; Zener diodes and performance Zener diodes, including tight tolerance and low operating current types; standard, fast, super-fast and ultra-fast recovery rectifiers; bridge rectifiers; switching diodes; small signal bipolar transistors; prebiased transistors; MOSFETs; thyristor surge protection devices; and transient voltage suppressors; | ||
Ø | Complex high-density diode, transistor and mixed technology arrays, in multi-pin ultra-miniature surface-mount packages, including customer specific and function specific arrays; | ||
Ø | Analog products, including power management devices and Hall-effect sensors; | ||
Ø | Standard logic products, including open drain inverters; and | ||
Ø | Silicon wafers used in manufacturing these products. |
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End Markets | 2010 | 2009 | 2008 | End product applications | ||||||||||
Consumer Electronics | 32 | % | 31 | % | 32 | % | Digital audio players, set-top boxes, digital cameras, consumer portables, LCD and LED TV’s, games consoles, portable GPS | |||||||
Computing | 28 | % | 32 | % | 33 | % | Notebooks, LCD monitors, PDA’s, printers | |||||||
Industrial | 20 | % | 18 | % | 16 | % | Lighting, power supplies, DC-DC conversion, security systems, motor controls, DC fans, proximity sensors, solenoid and relay driving | |||||||
Communications | 17 | % | 16 | % | 16 | % | IP in gateways, routers, switches, hubs, fiber optics | |||||||
Automotive | 3 | % | 3 | % | 3 | % | Comfort controls, lighting, audio/video players, GPS navigation, satellite radios, electronics | |||||||
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Item 1A. | Risk Factors |
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Ø | pay substantial damages for past, present and future use of the infringing technology; | ||
Ø | cease the manufacture, use or sale of infringing products; | ||
Ø | discontinue the use of infringing technology; | ||
Ø | expend significant resources to develop non-infringing technology; | ||
Ø | pay substantial damages to our customers or end-users to discontinue use or replace infringing technology with non-infringing technology; | ||
Ø | license technology from the third party claiming infringement, which license may not be available on commercially reasonable terms, or at all; or | ||
Ø | relinquish intellectual property rights associated with one or more of our patent claims, if such claims are held invalid or otherwise unenforceable. |
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Ø | difficulties associated with owning a manufacturing business, including, but not limited to, the maintenance and management of manufacturing facilities, equipment, employees and inventories and limitations on the flexibility of controlling overhead; | ||
Ø | difficulties in continuing expansion of our operations in Asia and Europe, because of the distance from our U.S. headquarters and differing regulatory and cultural environments; | ||
Ø | the need for skills and techniques that are outside our traditional core expertise; | ||
Ø | less flexibility in shifting manufacturing or supply sources from one region to another; | ||
Ø | even when independent suppliers offer lower prices, we would continue to acquire wafers from our captive manufacturing facilities, which may result in us having higher costs than our competitors; | ||
Ø | difficulties developing and implementing a successful research and development team; and | ||
Ø | difficulties developing, protecting, and gaining market acceptance of, our proprietary technology. |
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Ø | unexpected losses of key employees or customers of the acquired company; | ||
Ø | bringing the acquired company’s standards, processes, procedures and controls into conformance with our operations; | ||
Ø | coordinating our new product and process development; | ||
Ø | hiring additional management and other critical personnel; | ||
Ø | increasing the scope, geographic diversity and complexity of our operations; | ||
Ø | difficulties in consolidating facilities and transferring processes and know-how; | ||
Ø | difficulties in reducing costs of the acquired entity’s business; | ||
Ø | diversion of management’s attention from the management of our business; and | ||
Ø | adverse effects on existing business relationships with customers. |
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Ø | making it more difficult for us to meet our payment and other obligations under the Notes and our other outstanding debt; | ||
Ø | resulting in an event of default if we fail to comply with the financial and other restrictive covenants contained in our debt agreements, which event of default could result in all of our debt becoming immediately due and payable and, in the case of an event of default under our secured debt, such as our senior secured credit facility, could permit the lenders to foreclose on our assets securing that debt; | ||
Ø | reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions and other general corporate purposes, and limiting our ability to obtain additional financing for these purposes; | ||
Ø | subjecting us to the risk of increased sensitivity to interest rate increases on our indebtedness with variable interest rates, including borrowings under senior secured credit facility; | ||
Ø | limiting our flexibility in planning for, or reacting to, and increasing our vulnerability to, changes in our business, the industry in which we operate and the general economy; and | ||
Ø | placing us at a competitive disadvantage compared to our competitors that have less debt or are less leveraged. |
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Ø | changes in, or impositions of, legislative or regulatory requirements, including tax laws in the United States and in the countries in which we manufacture or sell our products; | ||
Ø | compliance with trade or other laws in a variety of jurisdictions; | ||
Ø | trade restrictions, transportation delays, work stoppages, and economic and political instability; | ||
Ø | changes in import/export regulations, tariffs and freight rates; | ||
Ø | difficulties in collecting receivables and enforcing contracts; | ||
Ø | currency exchange rate fluctuations; | ||
Ø | restrictions on the transfer of funds from foreign subsidiaries to the United States; | ||
Ø | the possibility of international conflict, particularly between or among China, Taiwan, England and the United States; | ||
Ø | legal regulatory, political and cultural differences among the countries in which we do business; | ||
Ø | longer customer payment terms; and | ||
Ø | changes in U.S. or foreign tax regulations. |
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Ø | strength of the global economy and the stability of the financial markets; | ||
Ø | general economic conditions in the countries where we sell our products; | ||
Ø | seasonality and variability in the computing and communications market and our other end-markets; | ||
Ø | the timing of our and our competitors’ new product introductions; | ||
Ø | product obsolescence; | ||
Ø | the scheduling, rescheduling and cancellation of large orders by our customers; | ||
Ø | the cyclical nature of demand for our customers’ products; | ||
Ø | our ability to develop new process technologies and achieve volume production at our fabrication facilities; | ||
Ø | changes in manufacturing yields; | ||
Ø | adverse movements in exchange rates, interest rates or tax rates; and | ||
Ø | the availability of adequate supply commitments from our outside suppliers or subcontractors. |
Ø | use a significant portion of our available cash; | ||
Ø | issue equity securities, which would dilute current stockholders’ percentage ownership; | ||
Ø | incur substantial debt; | ||
Ø | incur or assume contingent liabilities, known or unknown; | ||
Ø | incur amortization expenses related to intangibles; and | ||
Ø | incur large, immediate accounting write-offs. |
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(i) | either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder is approved by the corporation’s board of directors prior to the date the interested stockholder becomes an interested stockholder; | ||
(ii) | the interested stockholder acquired at least 85.0% of the voting stock of the corporation (other than stock held by directors who are also officers or by certain employee stock plans) in the transaction in which the stockholder became an interested stockholder; or | ||
(iii) | the business combination is approved by a majority of the board of directors and by the affirmative vote of 66.66% of the outstanding voting stock that is not owned by the interested stockholder. |
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Item 1B. | Unresolved Staff Comments None |
Item 2. | Properties |
Lease | Year | |||||||||||||
Primary use | Location | Expiration | Purchased | Sq. Ft. | ||||||||||
Regional sales office | Shanghai, China | 2010 | 7,000 | |||||||||||
Regional sales office | Shenzhen, China | April 2012 | 5,000 | |||||||||||
Manufacturing facility/Logistics | Shanghai, China | February 2012 | 145,000 | |||||||||||
Manufacturing facility/Logistics | Shanghai, China | March 2012 | 112,000 | |||||||||||
Headquarters/R&D center | Dallas, Texas | March 2011 | 17,500 | |||||||||||
Headquarters/R&D center (future) | Plano, Texas | 2010 | 42,000 | |||||||||||
Sales/Administrative office | Westlake Village, California | June 2011 | 2,000 | |||||||||||
Sales office/R&D center | San Jose, California | July 2013 | 4,100 | |||||||||||
Regional sales office | Amherst, New Hampshire | Monthly | < 1,000 | |||||||||||
Regional sales office | Fountain Valley, California | March 2011 | < 1,000 | |||||||||||
Regional sales office | Great River, New York | December 2013 | 2,000 | |||||||||||
Regional sales office | Beauzelle, France | February 2012 | < 1,000 | |||||||||||
Manufacturing facility/R&D center | Lee's Summit, Missouri | June 2013 | 70,000 | |||||||||||
Regional sales office | Gyeonggi-do, Korea | December 2012 | 1,700 | |||||||||||
Warehouse | Kowloon Bay, Hong Kong | March 2011 | 10,000 | |||||||||||
R&D center | Hsinchu, Taiwan | November 2011 | 25,500 | |||||||||||
Warehouse | Taipei, Taiwan | 1987 | 12,000 | |||||||||||
Sales/Administrative/Logistics | Taipei, Taiwan | 2006 | 35,500 | |||||||||||
Regional sales office | Munich, Germany | July 2016 | 6,300 | |||||||||||
Manufacturing facility/R&D center | Manchester, England | 1998 | 75,000 | |||||||||||
Administrative/Logistics | Manchester, England | 2004 | 81,000 | |||||||||||
Manufacturing facility | Neuhaus, Germany | 1996 | 52,500 | |||||||||||
Manufacturing facility | Chengdu, China | October 2012 | 24,500 | |||||||||||
Vacant land | Plano, Texas | 2008 | 16 acres |
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Item 3. | Legal Proceedings |
Item 4. | [Removed and Reserved] |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Calendar Quarter | Closing Sales Price of | |||||||
Ended | Common Stock | |||||||
High | Low | |||||||
First quarter (through February 22, 2011) | $ | 30.93 | $ | 24.95 | ||||
Fourth quarter 2010 | 27.90 | 17.10 | ||||||
Third quarter 2010 | 19.60 | 14.61 | ||||||
Second quarter 2010 | 24.68 | 15.87 | ||||||
First quarter 2010 | 23.09 | 16.68 | ||||||
Fourth quarter 2009 | 20.87 | 15.47 | ||||||
Third quarter 2009 | 21.83 | 15.11 | ||||||
Second quarter 2009 | 16.32 | 11.24 | ||||||
First quarter 2009 | 11.27 | 5.59 |
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![](https://capedge.com/proxy/10-K/0000950123-11-019939/d78803d7880301.gif)
December 2010
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||||||||||||||||
Diodes Incorporated | Return % | 14.28 | 27.13 | -79.85 | 236.78 | 32.24 | |||||||||||||||||||||||||||||
Cum $ | 100.00 | 114.28 | 145.28 | 29.28 | 98.60 | 130.40 | |||||||||||||||||||||||||||||
NASDAQ Industrials Index | Return % | 13.57 | 4.88 | -44.84 | -4.42 | 38.40 | |||||||||||||||||||||||||||||
Cum $ | 100.00 | 113.57 | 119.11 | 65.70 | 62.80 | 86.92 | |||||||||||||||||||||||||||||
NASDAQ Composite-Total Returns | Return % | 10.39 | 10.65 | -39.98 | 45.36 | 18.16 | |||||||||||||||||||||||||||||
Cum $ | 100.00 | 110.39 | 122.15 | 73.32 | 106.58 | 125.93 | |||||||||||||||||||||||||||||
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Years ended December 31, | ||||||||||||||||||||
Statement of Income Data | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Net sales | $ | 612,886 | $ | 434,357 | $ | 432,785 | $ | 401,159 | $ | 343,308 | ||||||||||
Gross profit | 224,869 | 121,207 | 132,528 | 130,379 | 113,892 | |||||||||||||||
Selling, general and administrative | 88,784 | 70,396 | 68,373 | 55,127 | 47,817 | |||||||||||||||
Research and development | 26,584 | 23,757 | 21,882 | 12,955 | 8,237 | |||||||||||||||
Amortization of acquisition-related intangible assets | 4,425 | 4,665 | 3,706 | 836 | 360 | |||||||||||||||
In-process research and development | — | — | 7,865 | — | — | |||||||||||||||
Restructuring | — | (440 | ) | 4,089 | 1,061 | — | ||||||||||||||
Other | 144 | — | — | — | — | |||||||||||||||
Total operating expenses | 119,937 | 98,378 | 105,915 | 69,979 | 56,414 | |||||||||||||||
Income from operations | 104,932 | 22,829 | 26,613 | 60,400 | 57,478 | |||||||||||||||
Interest income | 2,842 | 4,871 | 11,991 | 18,117 | 6,699 | |||||||||||||||
Interest expense | (5,229 | ) | (7,471 | ) | (9,044 | ) | (6,511 | ) | (1,815 | ) | ||||||||||
Amortization of debt discount | (7,656 | ) | (8,302 | ) | (10,690 | ) | (9,996 | ) | (1,712 | ) | ||||||||||
Other income (expense) | 3,214 | (777 | ) | 9,501 | (225 | ) | (1,212 | ) | ||||||||||||
Income before income taxes and noncontrolling interest | 98,103 | 11,150 | 28,371 | 61,785 | 59,438 | |||||||||||||||
Income tax provision (benefit) | 17,839 | 1,302 | (2,158 | ) | 5,655 | 11,033 | ||||||||||||||
Net income | 80,264 | 9,848 | 30,529 | 56,130 | 48,405 | |||||||||||||||
Less: net income attributable to noncontrolling interest | (3,531 | ) | (2,335 | ) | (2,290 | ) | (2,376 | ) | (1,289 | ) | ||||||||||
Net income attributable to common stockholders | 76,733 | 7,513 | 28,239 | 53,754 | 47,116 | |||||||||||||||
Earnings per share attributable to common stockholders: (1) | ||||||||||||||||||||
Basic | $ | 1.74 | $ | 0.18 | $ | 0.69 | $ | 1.36 | $ | 1.23 | ||||||||||
Diluted | $ | 1.68 | $ | 0.17 | $ | 0.66 | $ | 1.27 | $ | 1.14 | ||||||||||
Number of shares used in computation: (1) | ||||||||||||||||||||
Basic | 44,146 | 42,237 | 40,709 | 39,601 | 38,443 | |||||||||||||||
Diluted | 45,546 | 43,449 | 42,638 | 42,331 | 41,502 |
As of December 31, | ||||||||||||||||||||
Balance Sheet Data | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Total assets | $ | 846,550 | $ | 1,021,898 | $ | 890,712 | $ | 701,911 | $ | 622,139 | ||||||||||
Working capital | 289,387 | 354,309 | 209,565 | 451,801 | 395,354 | |||||||||||||||
Long-term debt, net of current portion | 3,393 | 124,797 | 372,597 | 189,794 | 181,097 | |||||||||||||||
Total Diodes Incorporated stockholders’ equity | 541,444 | 440,634 | 390,159 | 396,931 | 327,403 |
(1) | Adjusted for the effect of 3-for-2 stock split in July 2007. |
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Ø | Net sales for 2010 was $612.9 million, an increase of 41.1% from the $434.4 million in 2009; | ||
Ø | Gross profit for 2010 was $224.9 million, or 36.7% of net sales, an increase of 85.5% from the $121.2 million, or 27.9% of net sales in 2009; | ||
Ø | Net income attributable to common stockholders for 2010 was $76.7 million, or $1.68 per diluted share, an increase of 921.3% from the $7.5 million, or $0.17 per diluted share, in 2009; | ||
Ø | Cash flow from operations for 2010 was $118.0 million, an increase of 80.1% from the $65.5 million in 2009; and | ||
Ø | On June 30, 2010, we put our auction rate securities (“ARS”) back to UBS AG at par value pursuant to the previously disclosed settlement agreement, which liquidated our ARS for cash, and used the proceeds to pay off the “no net cost” loan. |
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Ø | Continue to rapidly introduce innovative discrete, logic and analog semiconductor products; | ||
Ø | Expand our available market opportunities; | ||
Ø | Maintain intense customer focus; | ||
Ø | Enhance cost competitiveness; and | ||
Ø | Pursue selective strategic acquisitions. |
Ø | For 2010, we have seen increased demand for our products as compared to 2009. We have experienced pressure from our customers and competitors to reduce the selling price for our standard products, and we expect future improvements in net income to result primarily from increases in sales volume and improvements in product mix as well as manufacturing cost reductions in order to offset any reduced ASP of our products. See “Risk Factors —We are and will continue to be under continuous pressure from our customers and competitors to reduce the price of our products, which could adversely affect our growth and profit margins”in Part I, Item 1A of this Annual Report for additional information. | ||
Ø | For the years ended December 31, 2010, 2009 and 2008, our original equipment manufacturers (“OEM”) and electronic manufacturing services (“EMS”) customers together accounted for 46.1%, 53.0% and 55.9% of net sales, respectively, while our global network of distributors accounted for 53.9%, 47.0% and 44.1% of net sales, respectively. | ||
Ø | Our gross profit margin was 36.7% in 2010, compared to 27.9% in 2009 and 30.6% in 2008. Our gross profit margin increase in 2010 was primarily due to improved product mix, increased operating efficiencies and higher capacity utilization at our manufacturing and wafer fabrication facilities. Our model rate is 35% as we strive to improve our gross margins in support of our profitable growth strategy. Future gross profit margins will depend primarily on our product mix, manufacturing cost savings, and the demand for our products. | ||
Ø | For 2010, the percentage of our net sales derived from our Asian subsidiaries was 72.5%, compared to 76.8% in 2009 and 74.2% in 2008. We expect our net sales to the Asian market to decrease as a percentage of our total net sales as we continue to see increased demand for our products in North America and Europe. | ||
Ø | As a result of the Zetex acquisition in 2008, we have added significant revenue in Europe. As such, Europe accounted for approximately 12.1%, 10.4% and 10.0% of our net sales in 2010, 2009 and 2008, respectively. | ||
Ø | As of December 31, 2010, we had invested approximately $283.5 million in our manufacturing facilities in China. During 2010, we invested approximately $68.5 million in these manufacturing facilities, and we expect to continue to invest in our manufacturing facilities, although the amount to be invested will depend on product demand and new product developments. | ||
Ø | For 2010, our capital expenditures were approximately 14.1% of our net sales, which is an increase from our historical 10% to 12% model of net sales model as we increased capacity due to increased demand and lower capital expenditure during 2009 due to the global economic downturn. For 2011, we intend to resume capital expenditures to their normal range of 10% to 12% of net sales. | ||
Ø | We increased our investment in research and development from $23.8 million in 2009 to $26.6 million in 2010. In 2010, research and development expenses were approximately 4.3% of net sales. |
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Ø | The condition of the economy in general and of the semiconductor industry in particular, | ||
Ø | Our customers’ adjustments in their order levels, | ||
Ø | Changes in our pricing policies or the pricing policies of our competitors or suppliers, | ||
Ø | The addition or termination of key supplier relationships, | ||
Ø | The rate of introduction and acceptance by our customers of new products, | ||
Ø | Our ability to compete effectively with our current and future competitors, | ||
Ø | Our ability to enter into and renew key corporate and strategic relationships with our customers, vendors and strategic alliances, | ||
Ø | Changes in foreign currency exchange rates, | ||
Ø | A major disruption of our information technology infrastructure, | ||
Ø | Unforeseen catastrophic events, such as armed conflict, terrorism, fires, typhoons and earthquakes, and | ||
Ø | Any other disruptions, such as labor shortages, unplanned maintenance or other manufacturing problems. |
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Percentage Dollar | ||||||||||||||||||||
Percent of Net sales | Increase (Decrease) | |||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2010 | 2009 | 2008 | ’09 to ’10 | ’08 to ’09 | ||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 41.1 | % | 0.4 | % | ||||||||||
Cost of goods sold | (63.3 | ) | (72.1 | ) | (69.4 | ) | 23.9 | 4.3 | ||||||||||||
Gross profit | 36.7 | 27.9 | 30.6 | 85.5 | (8.5 | ) | ||||||||||||||
Operating expenses (1) | (19.5 | ) | (22.6 | ) | (24.5 | ) | 21.9 | (7.1 | ) | |||||||||||
Income from operations | 17.2 | 5.3 | 6.1 | 359.6 | (14.2 | ) | ||||||||||||||
Interest income | 0.5 | 1.1 | 2.8 | (41.7 | ) | (59.4 | ) | |||||||||||||
Interest expense and amortization of debt discount | (2.1 | ) | (3.6 | ) | (4.6 | ) | (37.8 | ) | (20.1 | ) | ||||||||||
Other income (expense) | 0.5 | (0.2 | ) | 2.2 | (513.6 | ) | (108.2 | ) | ||||||||||||
Income before taxes and noncontrolling interest | 16.1 | 2.6 | 6.5 | 779.9 | (60.7 | ) | ||||||||||||||
Income tax provision (benefit) | 0.3 | 0.4 | (0.5 | ) | 1,270.1 | (160.3 | ) | |||||||||||||
Net income | 13.2 | 2.2 | 7.0 | 715.0 | (67.7 | ) | ||||||||||||||
Net income attributable to noncontrolling interest | (0.6 | ) | (0.5 | ) | (0.5 | ) | 51.2 | 2.0 | ||||||||||||
Net income attributable to common stockholders | 12.6 | 1.7 | 6.5 | 921.3 | (73.4 | ) |
(1) | Operating expenses consists of selling, general and administrative, research and development, amortization of acquisition related intangible assets, in-process research and development and restructuring charges. |
2010 | 2009 | |||||||
Net sales | $ | 612,886 | $ | 434,357 |
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Net sales for the year | Percentage of | |||||||||||||||
ended December 31 | net sales | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
China | $ | 187,633 | $ | 131,914 | 30.6 | % | 30.4 | % | ||||||||
Taiwan | 141,388 | 122,502 | 23.1 | % | 28.2 | % | ||||||||||
United States | 134,911 | 75,185 | 22.0 | % | 17.3 | % | ||||||||||
Korea | 35,180 | 27,223 | 5.7 | % | 6.3 | % | ||||||||||
Germany | 31,704 | 17,438 | 5.2 | % | 4.0 | % | ||||||||||
Singapore | 24,468 | 14,429 | 4.0 | % | 3.3 | % | ||||||||||
U.K. | 24,337 | 17,926 | 4.0 | % | 4.1 | % | ||||||||||
All Others | 33,265 | 27,740 | 5.4 | % | 6.4 | % | ||||||||||
Total | $ | 612,886 | $ | 434,357 | 100.0 | % | 100.0 | % | ||||||||
2010 | 2009 | |||||||
Cost of goods sold | $ | 388,017 | $ | 313,150 | ||||
Gross profit | $ | 224,869 | $ | 121,207 | ||||
Gross profit margin | 36.7 | % | 27.9 | % |
2010 | 2009 | |||||||
Selling, general and administrative (“SG&A”) | $ | 88,784 | $ | 70,396 |
2010 | 2009 | |||||||
Research and development (“R&D”) | $ | 26,584 | $ | 23,757 |
2010 | 2009 | |||||||
Amortization of acquisition-related intangible assets | $ | 4,425 | $ | 4,665 |
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2010 | 2009 | |||||||
Interest income | $ | 2,842 | $ | 4,871 |
2010 | 2009 | |||||||
Interest expense | $ | 5,229 | $ | 7,471 |
2010 | 2009 | |||||||
Amortization of debt discount | $ | 7,656 | $ | 8,302 |
2010 | 2009 | |||||||
Other income (expense) | $ | 3,214 | $ | (777 | ) |
2010 | 2009 | |||||||
Income tax provision | $ | 17,839 | $ | 1,302 |
2010 | 2009 | |||||||
Noncontrolling interest | $ | 3,531 | $ | 2,335 |
2010 | 2009 | |||||||
Net income attributable to common stockholders | $ | 76,733 | $ | 7,513 |
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2009 | 2008 | |||||||
Net sales | $ | 434,357 | $ | 432,785 |
Net sales for the year | Percentage of | |||||||||||||||
ended December 31 | net sales | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
China | $ | 131,914 | $ | 130,045 | 30.4 | % | 30.0 | % | ||||||||
Taiwan | 122,502 | 118,577 | 28.2 | % | 27.4 | % | ||||||||||
United States | 75,185 | 85,906 | 17.3 | % | 19.8 | % | ||||||||||
Korea | 27,223 | 21,901 | 6.3 | % | 5.1 | % | ||||||||||
Germany | 17,926 | 17,021 | 4.1 | % | 3.9 | % | ||||||||||
Singapore | 17,438 | 14,852 | 4.0 | % | 3.4 | % | ||||||||||
U.K. | 14,429 | 12,821 | 3.3 | % | 3.1 | % | ||||||||||
All Others | 27,740 | 31,662 | 6.4 | % | 7.3 | % | ||||||||||
Total | $ | 434,357 | $ | 432,785 | 100.0 | % | 100.0 | % | ||||||||
2009 | 2008 | |||||||
Cost of goods sold | $ | 313,150 | $ | 300,257 | ||||
Gross profit | $ | 121,207 | $ | 132,528 | ||||
Gross profit margin | 27.9 | % | 30.6 | % |
2009 | 2008 | |||||||
SG&A | $ | 70,396 | $ | 68,373 |
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2009 | 2008 | |||||||
R&D | $ | 23,757 | $ | 21,882 |
2009 | 2008 | |||||||
Amortization of acquisition-related intangible assets | $ | 4,665 | $ | 3,706 |
2009 | 2008 | |||||||
In-process research and development (“IPR&D”) | $ | — | $ | 7,865 |
2009 | 2008 | |||||||
Interest income | $ | 4,871 | $ | 11,991 |
2009 | 2008 | |||||||
Interest expense | $ | 7,471 | $ | 9,044 |
2009 | 2008 | |||||||
Amortization of debt discount | $ | 8,302 | $ | 10,690 |
2009 | 2008 | |||||||
Other income (expense) | $ | (777 | ) | $ | 9,501 |
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2009 | 2008 | |||||||
Income tax provision | $ | 1,302 | $ | (2,158 | ) |
2009 | 2008 | |||||||
Noncontrolling interest | $ | 2,335 | $ | 2,290 |
2009 | 2008 | |||||||
Net income attributable to common stockholders | $ | 7,513 | $ | 28,239 |
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Year Ended December 31, | ||||||||||||||||||||||||
2010 | 2009 | Change | 2009 | 2008 | Change | |||||||||||||||||||
Net cash provided by operating activities | $ | 118,005 | $ | 65,527 | $ | 52,478 | $ | 65,527 | $ | 57,171 | $ | 8,356 | ||||||||||||
Net cash provided by (used by) investing activities | 209,569 | 1,860 | 207,709 | 1,860 | (203,501 | ) | 205,361 | |||||||||||||||||
Net cash provided by (used by) financing activities | (295,349 | ) | 67,915 | (363,264 | ) | 67,915 | 196,868 | (128,953 | ) | |||||||||||||||
Effect of exchange rates on cash and cash equivalents | (3,277 | ) | 3,155 | (6,432 | ) | 3,155 | (3,221 | ) | 6,376 | |||||||||||||||
Net increase in cash and cash equivalents | $ | 28,948 | $ | 138,457 | $ | (109,509 | ) | $ | 138,457 | $ | 47,317 | $ | 91,140 | |||||||||||
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Less than | More than | |||||||||||||||||||
Total | 1 year | 1-3 years | 3-5 years | 5 years | ||||||||||||||||
Long-term debt | $ | 3,811 | $ | 419 | $ | 839 | $ | 614 | $ | 1,939 | ||||||||||
Capital leases | 1,838 | 340 | 680 | 681 | 137 | |||||||||||||||
Operating leases | 15,142 | 5,906 | 8,843 | 393 | — | |||||||||||||||
Defined benefit obligations | 24,863 | 1,566 | 3,131 | 3,131 | 17,035 | |||||||||||||||
Purchase obligations | 6,540 | 6,540 | — | — | — | |||||||||||||||
Other obligations (1) | 47,500 | — | 47,500 | — | — | |||||||||||||||
Total obligations | $ | 99,694 | $ | 14,771 | $ | 60,993 | $ | 4,819 | $ | 19,111 | ||||||||||
(1) | See Note 20 of “Notes to Consolidated Financial Statements” for additional information. |
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Level 1: | Quoted prices for identical instruments in active markets. |
Level 2: | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. |
Level 3: | Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
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• | recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms; and | ||
• | accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions required disclosure. |
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(a) | Financial Statements and Schedules | ||
Our consolidated financial statements are as set forth under Item 8 of this report on Form 10-K. |
Page | ||||
(1) Financial statements: | ||||
53 | ||||
54 to 55 | ||||
56 | ||||
57 | ||||
58 to 59 | ||||
60 to 102 | ||||
(2) Schedules: | ||||
None |
(b) | Exhibits | ||
The exhibits listed on the Index to Exhibits at page 104 are filed as exhibits or incorporated by reference to this Annual Report. | |||
(c) | Financial Statements of Unconsolidated Subsidiaries and Affiliates | ||
Not Applicable. |
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Diodes Incorporated and Subsidiaries
Los Angeles, California
February 28, 2011
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December 31, | 2010 | 2009 | ||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 270,901 | $ | 241,953 | ||||
Short-term investments | — | 296,600 | ||||||
Accounts receivable, net | 129,207 | 102,989 | ||||||
Inventories | 120,689 | 89,652 | ||||||
Deferred income taxes, current | 8,276 | 7,834 | ||||||
Prepaid expenses and other | 11,679 | 11,591 | ||||||
Total current assets | 540,752 | 750,619 | ||||||
PROPERTY, PLANT AND EQUIPMENT, net | 200,745 | 162,988 | ||||||
DEFERRED INCOME TAXES, non-current | 1,574 | — | ||||||
OTHER ASSETS | ||||||||
Goodwill | 68,949 | 68,075 | ||||||
Intangible assets, net | 28,770 | 34,892 | ||||||
Other | 5,760 | 5,324 | ||||||
Total assets | $ | 846,550 | $ | 1,021,898 | ||||
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CONSOLIDATED BALANCE SHEETS (Continued)
December 31, | 2010 | 2009 | ||||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Lines of credit and short-term debt | $ | — | $ | 299,414 | ||||
Accounts payable | 70,057 | 62,448 | ||||||
Accrued liabilities | 36,937 | 31,151 | ||||||
Income tax payable | 15,412 | 2,641 | ||||||
Convertible senior notes | 128,261 | — | ||||||
Current portion of long-term debt | 418 | 373 | ||||||
Current portion of capital lease obligations | 280 | 283 | ||||||
Total current liabilities | 251,365 | 396,310 | ||||||
LONG-TERM DEBT, net of current portion | ||||||||
Convertible senior notes | — | 121,333 | ||||||
Long-term borrowings | 3,393 | 3,464 | ||||||
CAPITAL LEASE OBLIGATIONS, net of current portion | 1,380 | 1,669 | ||||||
DEFERRED INCOME TAXES, non current | — | 7,743 | ||||||
OTHER LONG-TERM LIABILITIES | 37,520 | 40,455 | ||||||
Total liabilities | 293,658 | 570,974 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
EQUITY | ||||||||
Diodes Incorporated stockholders’ equity | ||||||||
Preferred stock — par value $1.00 per share; 1,000,000 shares authorized; no shares issued or outstanding | — | — | ||||||
Common stock — par value $0.66 2/3 per share; 70,000,000 shares authorized; 44,662,796 and 43,729,304 issued and outstanding at December 31, 2010 and December 31, 2009, respectively | 29,775 | 29,153 | ||||||
Additional paid-in capital | 231,842 | 211,618 | ||||||
Retained earnings | 324,907 | 248,174 | ||||||
Accumulated other comprehensive loss | (45,080 | ) | (48,311 | ) | ||||
Total Diodes Incorporated stockholders’ equity | 541,444 | 440,634 | ||||||
Noncontrolling interest | 11,448 | 10,290 | ||||||
Total equity | 552,892 | 450,924 | ||||||
Total liabilities and equity | $ | 846,550 | $ | 1,021,898 | ||||
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Years ended December 31, | 2010 | 2009 | 2008 | |||||||||
NET SALES | $ | 612,886 | $ | 434,357 | $ | 432,785 | ||||||
COST OF GOODS SOLD | 388,017 | 313,150 | 300,257 | |||||||||
Gross profit | 224,869 | 121,207 | 132,528 | |||||||||
OPERATING EXPENSES | ||||||||||||
Selling, general and administrative | 88,784 | 70,396 | 68,373 | |||||||||
Research and development | 26,584 | 23,757 | 21,882 | |||||||||
Amortization of acquisition related intangible assets | 4,425 | 4,665 | 3,706 | |||||||||
Impairment of long-lived assets | 144 | — | — | |||||||||
In-process research and development | — | — | 7,865 | |||||||||
Restructuring | — | (440 | ) | 4,089 | ||||||||
Total operating expenses | 119,937 | 98,378 | 105,915 | |||||||||
Income from operations | 104,932 | 22,829 | 26,613 | |||||||||
OTHER INCOME (EXPENSES) | ||||||||||||
Interest income | 2,842 | 4,871 | 11,991 | |||||||||
Interest expense | (5,229 | ) | (7,471 | ) | (9,044 | ) | ||||||
Amortization of debt discount | (7,656 | ) | (8,302 | ) | (10,690 | ) | ||||||
Other | 3,214 | (777 | ) | 9,501 | ||||||||
Total other income (expenses) | (6,829 | ) | (11,679 | ) | 1,758 | |||||||
Income before income taxes and noncontrolling interest | 98,103 | 11,150 | 28,371 | |||||||||
INCOME TAX PROVISION (BENEFIT) | 17,839 | 1,302 | (2,158 | ) | ||||||||
NET INCOME | 80,264 | 9,848 | 30,529 | |||||||||
Less: NET INCOME attributable to noncontrolling interest | (3,531 | ) | (2,335 | ) | (2,290 | ) | ||||||
NET INCOME attributable to common stockholders | $ | 76,733 | $ | 7,513 | $ | 28,239 | ||||||
EARNINGS PER SHARE attributable to common stockholders | ||||||||||||
Basic | $ | 1.74 | $ | 0.18 | $ | 0.69 | ||||||
Diluted | $ | 1.68 | $ | 0.17 | $ | 0.66 | ||||||
Number of shares used in computation | ||||||||||||
Basic | 44,146 | 42,237 | 40,709 | |||||||||
Diluted | 45,546 | 43,449 | 42,638 | |||||||||
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Years ended December 31, 2008, 2009 and 2010
Accumulated | Total Diodes | |||||||||||||||||||||||||||||||
Additional | other | Incorporated | ||||||||||||||||||||||||||||||
Common stock | paid-in | Retained | comprehensive | Stockholders’ | Noncontrolling | |||||||||||||||||||||||||||
Shares | Amount | capital | earnings | gain (loss) | equity | interest | Total equity | |||||||||||||||||||||||||
BALANCE, December 31, 2007 | 40,173 | $ | 26,782 | $ | 155,675 | $ | 213,575 | $ | 900 | $ | 396,932 | $ | 7,163 | $ | 404,095 | |||||||||||||||||
Comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 28,239 | 28,239 | 2,290 | 30,529 | |||||||||||||||||||||||||
Translation adjustment | — | — | — | — | (40,106 | ) | (40,106 | ) | — | (40,106 | ) | |||||||||||||||||||||
Unrealized loss on defined benefit plan | — | — | — | — | (4,722 | ) | (4,722 | ) | — | (4,722 | ) | |||||||||||||||||||||
Foreign currency loss on forward contracts | — | — | — | — | (4,511 | ) | (4,511 | ) | — | (4,511 | ) | |||||||||||||||||||||
Total comprehensive loss | (21,100 | ) | 2,290 | (18,810 | ) | |||||||||||||||||||||||||||
Common stock issued for share-based plans | 1,206 | 804 | 2,153 | — | — | 2,957 | — | 2,957 | ||||||||||||||||||||||||
Convertible senior notes | — | — | 2,387 | (1,153 | ) | — | 1,234 | — | 1,234 | |||||||||||||||||||||||
Share-based compensation | — | — | 10,136 | — | — | 10,136 | — | 10,136 | ||||||||||||||||||||||||
BALANCE, December 31, 2008 | 41,379 | $ | 27,586 | $ | 170,351 | $ | 240,661 | $ | (48,439 | ) | $ | 390,159 | $ | 9,453 | $ | 399,612 | ||||||||||||||||
Comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 7,513 | — | 7,513 | 2,335 | 9,848 | ||||||||||||||||||||||||
Translation adjustment | — | — | — | — | 7,963 | 7,963 | — | 7,963 | ||||||||||||||||||||||||
Unrealized loss on defined benefit plan | — | — | — | — | (12,346 | ) | (12,346 | ) | — | (12,346 | ) | |||||||||||||||||||||
Foreign currency gain on forward contracts | — | — | — | — | 4,511 | 4,511 | — | 4,511 | ||||||||||||||||||||||||
Total comprehensive income | 7,641 | 2,335 | 9,976 | |||||||||||||||||||||||||||||
Dividend to noncontrolling interest | — | — | — | — | — | — | (1,498 | ) | (1,498 | ) | ||||||||||||||||||||||
Common stock issued for share-based plans | 521 | 348 | 1,190 | — | — | 1,538 | — | 1,538 | ||||||||||||||||||||||||
Common stock issued for repayment of debt | 1,829 | 1,219 | 30,218 | — | — | 31,437 | — | 31,437 | ||||||||||||||||||||||||
Convertible senior notes | — | — | (1,077 | ) | — | — | (1,077 | ) | — | (1,077 | ) | |||||||||||||||||||||
Share-based compensation | — | — | 10,936 | — | — | 10,936 | — | 10,936 | ||||||||||||||||||||||||
BALANCE, December 31, 2009 | 43,729 | $ | 29,153 | $ | 211,618 | $ | 248,174 | $ | (48,311 | ) | $ | 440,634 | $ | 10,290 | $ | 450,924 | ||||||||||||||||
Comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 76,733 | — | 76,733 | 3,531 | 80,264 | ||||||||||||||||||||||||
Translation adjustment | — | — | — | — | (1,519 | ) | (1,519 | ) | — | (1,519 | ) | |||||||||||||||||||||
Unrealized gain on defined benefit plan | — | — | — | 4,750 | 4,750 | — | 4,750 | |||||||||||||||||||||||||
Total comprehensive income | 79,964 | 3,531 | 83,495 | |||||||||||||||||||||||||||||
Dividend to noncontrolling interest | — | — | — | — | — | — | (2,373 | ) | (2,373 | ) | ||||||||||||||||||||||
Common stock issued for share-based plans | 934 | 622 | 4,157 | — | — | 4,779 | — | 4,779 | ||||||||||||||||||||||||
Excess tax benefit from share-based compensation | — | — | 3,073 | — | — | 3,073 | — | 3,073 | ||||||||||||||||||||||||
Convertible senior notes | — | — | (57 | ) | — | — | (57 | ) | — | (57 | ) | |||||||||||||||||||||
Share-based compensation | — | 13,051 | — | — | 13,051 | — | 13,051 | |||||||||||||||||||||||||
BALANCE, December 31, 2010 | 44,663 | $ | 29,775 | $ | 231,842 | $ | 324,907 | $ | (45,080 | ) | $ | 541,444 | $ | 11,448 | $ | 552,892 | ||||||||||||||||
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Years ended December 31, | 2010 | 2009 | 2008 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income | $ | 80,264 | $ | 9,848 | $ | 30,529 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation | 47,365 | 42,507 | 37,941 | |||||||||
Amortization of intangibles | 4,431 | 4,665 | 3,706 | |||||||||
Purchased in-process research and development | — | — | 7,865 | |||||||||
Amortization of convertible senior notes issuance costs | 549 | 648 | 917 | |||||||||
Amortization of discount on convertible senior notes | 7,656 | 8,302 | 10,690 | |||||||||
Share-based compensation | 13,051 | 10,936 | 10,136 | |||||||||
Excess tax benefit from share-based compensation | (3,073 | ) | — | — | ||||||||
Loss (gain) on disposal of property, plant and equipment | (1,665 | ) | 67 | (34 | ) | |||||||
Gain from extinguishment of debt | — | (1,164 | ) | (15,696 | ) | |||||||
Deferred income taxes | (4,040 | ) | (9,230 | ) | (7,772 | ) | ||||||
Other | (464 | ) | — | — | ||||||||
Changes in operating assets: | ||||||||||||
Accounts receivable | (23,604 | ) | (26,758 | ) | 24,880 | |||||||
Inventories | (30,388 | ) | 12,340 | (20,336 | ) | |||||||
Prepaid expenses and other current assets | (2,290 | ) | 3,298 | (3,657 | ) | |||||||
Changes in operating liabilities: | ||||||||||||
Accounts payable | 7,032 | 14,414 | (11,239 | ) | ||||||||
Accrued liabilities | 8,022 | (4,955 | ) | (4,792 | ) | |||||||
Other liabilities | 2,445 | (210 | ) | (508 | ) | |||||||
Income taxes payable | 12,714 | 819 | (5,459 | ) | ||||||||
Net cash provided by operating activities | 118,005 | 65,527 | 57,171 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Acquisitions, net of cash acquired | — | (30 | ) | (153,158 | ) | |||||||
Purchases of securities | — | — | (4,435 | ) | ||||||||
Proceeds from sale of securities | 296,600 | 24,025 | 7,282 | |||||||||
Purchases of property, plant and equipment | (88,809 | ) | (22,477 | ) | (53,246 | ) | ||||||
Proceeds from sales of property, plant and equipment | 2,163 | 342 | 56 | |||||||||
Other | (385 | ) | — | — | ||||||||
Net cash provided by (used by) investing activities | 209,569 | 1,860 | (203,501 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Advance on lines of credit and short term debt | 3,762 | 126,563 | 55,114 | |||||||||
Repayments on lines of credit and short-term debt | (303,192 | ) | (45,084 | ) | (49,016 | ) | ||||||
Net proceeds from the issuance of common stock | 4,818 | 1,702 | 2,957 | |||||||||
Excess tax benefit from share-based compensation | 3,073 | — | — | |||||||||
Dividend to noncontrolling interest | (2,300 | ) | (1,498 | ) | — | |||||||
Proceeds from long-term debt | — | — | 212,711 | |||||||||
Repayments of long-term debt | (1,165 | ) | (13,387 | ) | (24,546 | ) | ||||||
Repayments of capital lease obligations | (268 | ) | (381 | ) | (352 | ) | ||||||
Other | (77 | ) | — | — | ||||||||
Net cash provided by (used by) financing activities | (295,349 | ) | 67,915 | 196,868 | ||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (3,277 | ) | 3,155 | (3,221 | ) | |||||||
INCREASE IN CASH AND CASH EQUIVALENTS | 28,948 | 138,457 | 47,317 | |||||||||
CASH AND CASH EQUIVALENTS, beginning of year | 241,953 | 103,496 | 56,179 | |||||||||
CASH AND CASH EQUIVALENTS, end of year | $ | 270,901 | $ | 241,953 | $ | 103,496 | ||||||
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CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Years ended December 31, | 2010 | 2009 | 2008 | |||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 4,638 | $ | 10,518 | $ | 8,982 | ||||||
Income taxes | $ | 9,617 | $ | 4,866 | $ | 7,290 | ||||||
Non-cash activities: | ||||||||||||
Property, plant and equipment purchased on accounts payable | $ | 2,229 | $ | (3,291 | ) | $ | (2,333 | ) | ||||
Fair value of common stock issued for repayment of long-term debt | $ | — | $ | (31,437 | ) | $ | — | |||||
Acquisition: | ||||||||||||
Fair value of assets acquired | $ | — | $ | — | $ | (169,959 | ) | |||||
Liabilities assumed | — | (30 | ) | 41,367 | ||||||||
Cash acquired | — | — | (24,566 | ) | ||||||||
Cash paid for the acquisition | $ | — | $ | (30 | ) | $ | (153,158 | ) | ||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Net income attributable to common stockholders for earnings per share computation | $ | 76,733 | $ | 7,513 | $ | 28,239 | ||||||
Basic | ||||||||||||
Weighted average number of common shares outstanding during the year | 44,146 | 42,237 | 40,709 | |||||||||
Basic earnings per share attributable to common stockholders | $ | 1.74 | $ | 0.18 | $ | 0.69 | ||||||
Diluted | ||||||||||||
Weighted average number of common shares outstanding used in calculating basic earnings per share | 44,146 | 42,237 | 40,709 | |||||||||
Add: incremental shares upon stock option exercise and non-vested stock awards | 1,400 | 1,212 | 1,929 | |||||||||
Weighted average number of common shares outstanding used in calculating diluted earnings per share | 45,546 | 43,449 | 42,638 | |||||||||
Diluted earnings per share attributable to common stockholders | $ | 1.68 | $ | 0.17 | $ | 0.66 | ||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Twelve Months Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Net income | $ | 80,264 | $ | 9,848 | $ | 30,529 | ||||||
Translation adjustment | (1,519 | ) | 7,963 | (40,106 | ) | |||||||
Unrealized gain (loss) on defined benefit plan, net of tax | 4,750 | (12,346 | ) | (4,722 | ) | |||||||
Foreign currency gain (loss) on forward contracts, net of tax | — | 4,511 | (4,511 | ) | ||||||||
Comprehensive income (loss) | 83,495 | 9,976 | (18,810 | ) | ||||||||
Comprehensive income attributable to noncontrolling interest | 3,531 | 2,335 | 2,290 | |||||||||
Total comprehensive income (loss) attributable to common stockholders | $ | 79,964 | $ | 7,641 | $ | (21,100 | ) | |||||
Translation adjustment | $ | (29,230 | ) | |
Unrealized loss on defined benefit plan, net of tax | $ | (15,850 | ) |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Purchase price (cost of shares) | $ | 176,138 | ||
Acquisition related costs | 4,054 | |||
Total purchase price | $ | 180,192 | ||
Final purchase | ||||
price allocation | ||||
on acquisition | ||||
date | ||||
Assets acquired: | ||||
Accounts receivable, net | $ | 13,445 | ||
Inventory | 35,991 | |||
Prepaid expenses and other current assets | 4,363 | |||
Property, plant and equipment, net | 52,045 | |||
Other long-term assets | 136 | |||
Trademarks and other intangible assets | 48,274 | |||
Goodwill | 51,345 | |||
Total assets acquired | $ | 205,599 | ||
Liabilities assumed: | ||||
Accounts payable | $ | 6,057 | ||
Accrued expenses and other liabilities | 17,978 | |||
Pension liability | 10,873 | |||
Deferred tax liabilities | 13,649 | |||
Other liabilities | 3,846 | |||
Total liabilities assumed | 52,403 | |||
Total net assets acquired, net of cash acquired | $ | 153,196 | ||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Estimated | ||||||||
useful life (in | ||||||||
Intangible asset | Fair value assigned | years) | ||||||
IPR&D: | ||||||||
Power management | $ | 1,383 | N/A | |||||
Lighting | 3,952 | N/A | ||||||
Other | 2,569 | N/A | ||||||
Total IPR&D | 7,904 | |||||||
Developed technology: | ||||||||
Discretes | 16,007 | 10 | ||||||
Power management | 4,941 | 5 | ||||||
Lighting | 3,360 | 5 | ||||||
ASIC | 3,162 | 7 | ||||||
Other | 2,174 | 2 to 7 | ||||||
Total developed technology | 29,644 | |||||||
Customer relationships | 6,917 | 12 | ||||||
Trade name | 3,162 | Indefinite | ||||||
Other intangibles | 647 | Various | ||||||
Total intangibles acquired | $ | 48,274 | ||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Twelve Months | ||||
Ended | ||||
December 31, 2008 | ||||
Net revenues | $ | 483,026 | ||
Net income | $ | 26,742 | ||
Net income per common share—Basic | $ | 0.66 | ||
Net income per common share—Diluted | $ | 0.63 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
December 31, 2009 | ||||||||||||||||||||
Amount of | ||||||||||||||||||||
Gain (Loss) | ||||||||||||||||||||
Recognized | ||||||||||||||||||||
Amount of | in Income on | |||||||||||||||||||
Gain (Loss) | Derivative | |||||||||||||||||||
Amount of | Reclassified | Location of Gain | (Ineffective | |||||||||||||||||
Gain (Loss) | from | (Loss) Recognized in | Portion and | |||||||||||||||||
Recognized | Location of Gain | Accumulated | Income on Derivative | Amount | ||||||||||||||||
in OCI on | (Loss) Reclassified | OCI into | (Ineffective Portion | Excluded | ||||||||||||||||
Derivative | from Accumulated | Income | and Amount Excluded | from | ||||||||||||||||
Derivatives in Cash Flow | (Effective | OCI into Income | (Effective | from Effectiveness | Effectiveness | |||||||||||||||
Hedging Relationships | Portion) | (Effective Portion) | Portion) | Testing) | Testing) | |||||||||||||||
Foreign exchange contracts | $ | 961 | Other income (expense) | $ | (3,595 | ) | Other income (expense) | $ | — |
December 31, 2008 | ||||||||||||||||||||
Amount of | ||||||||||||||||||||
Gain (Loss) | ||||||||||||||||||||
Recognized | ||||||||||||||||||||
Amount of | in Income on | |||||||||||||||||||
Gain (Loss) | Derivative | |||||||||||||||||||
Amount of | Reclassified | Location of Gain | (Ineffective | |||||||||||||||||
Gain (Loss) | from | (Loss) Recognized in | Portion and | |||||||||||||||||
Recognized | Location of Gain | Accumulated | Income on Derivative | Amount | ||||||||||||||||
in OCI on | (Loss) Reclassified | OCI into | (Ineffective Portion | Excluded | ||||||||||||||||
Derivative | from Accumulated | Income | and Amount Excluded | from | ||||||||||||||||
Derivatives in Cash Flow | (Effective | OCI into Income | (Effective | from Effectiveness | Effectiveness | |||||||||||||||
Hedging Relationships | Portion) | (Effective Portion) | Portion) | Testing) | Testing) | |||||||||||||||
Foreign exchange contracts | $ | (9,119 | ) | Other income (expense) | $ | (3,578 | ) | Other income (expense) | $ | - |
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(Amounts in thousands except per share data)
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(Amounts in thousands except per share data)
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Short-term — trading securities | $ | — | $ | — | $ | 271,567 | $ | 271,567 | ||||||||
Short-term — put option | — | — | 25,033 | 25,033 | ||||||||||||
Total | $ | — | $ | — | $ | 296,600 | $ | 296,600 | ||||||||
Level 3 | ||||
Beginning balance as of January 1, 2009 | $ | 320,625 | ||
Unrealized gain from trading securities | 7,062 | |||
Unrealized loss from put option | (7,062 | ) | ||
Purchases, issuances, and settlements | (24,025 | ) | ||
Ending balance as of December 31, 2009 | 296,600 | |||
Purchases, issuances, and settlements | (296,600 | ) | ||
Ending balance as of December 31, 2010 | $ | — | ||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Unrealized | Unrealized | |||||||||||||||
Cost Basis | Gains | Losses | Fair Value | |||||||||||||
Short-term investments | ||||||||||||||||
Short-term — trading securities | $ | 296,600 | $ | — | $ | (25,033 | ) | $ | 271,567 | |||||||
Short-term — put option | — | 25,033 | — | 25,033 | ||||||||||||
Total short-term investments | $ | 296,600 | $ | 25,033 | $ | (25,033 | ) | $ | 296,600 | |||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2010 | 2009 | |||||||
Finished goods | $ | 34,551 | $ | 32,343 | ||||
Work-in-progress | 35,189 | 24,029 | ||||||
Raw materials | 50,949 | 33,280 | ||||||
$ | 120,689 | $ | 89,652 | |||||
2010 | 2009 | |||||||
Buildings and leasehold improvements | $ | 42,353 | $ | 31,835 | ||||
Construction in-progress | 4,607 | 6,395 | ||||||
Machinery and equipment | 354,008 | 284,322 | ||||||
400,968 | 322,552 | |||||||
Less: Accumulated depreciation and amortization | (215,213 | ) | (173,498 | ) | ||||
185,755 | 149,054 | |||||||
Land | 14,990 | 13,934 | ||||||
$ | 200,745 | $ | 162,988 | |||||
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(Amounts in thousands except per share data)
December 31, 2010 | ||||||||||||||||||||
Gross | Currency | |||||||||||||||||||
Carrying | Accumulated | Exchange | ||||||||||||||||||
Intangible Assets | Useful life | Amount | Amortization | and Other | Net | |||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||
Patents | 5-15 years | $ | 10,892 | $ | (3,822 | ) | $ | (303 | ) | $ | 6,767 | |||||||||
Software license | 3 years | 1,212 | (1,149 | ) | (63 | ) | — | |||||||||||||
Developed product technology | 2-10 years | 29,643 | (8,520 | ) | (5,943 | ) | 15,180 | |||||||||||||
Customer relationships | 12 years | 6,917 | (1,190 | ) | (1,409 | ) | 4,318 | |||||||||||||
Total amortized intangible assets: | $ | 48,664 | $ | (14,681 | ) | $ | (7,718 | ) | $ | 26,265 | ||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||
Trademarks and trade names | Indefinite | $ | 3,162 | $ | — | $ | (657 | ) | $ | 2,505 | ||||||||||
Total Intangible assets with indefinite lives: | $ | 3,162 | $ | — | $ | (657 | ) | $ | 2,505 | |||||||||||
Total intangible assets: | $ | 51,826 | $ | (14,681 | ) | $ | (8,375 | ) | $ | 28,770 | ||||||||||
December 31, 2009 | ||||||||||||||||||||
Gross | Currency | |||||||||||||||||||
Carrying | Accumulated | Exchange | ||||||||||||||||||
Intangible Assets | Useful life | Amount | Amortization | and Other | Net | |||||||||||||||
Amortized intangible assets: | ||||||||||||||||||||
Patents | 5-15 years | $ | 10,844 | $ | (3,004 | ) | $ | (414 | ) | $ | 7,426 | |||||||||
Software license | 3 years | 1,212 | (1,149 | ) | (63 | ) | — | |||||||||||||
Developed product technology | 2-10 years | 29,643 | (5,359 | ) | (4,327 | ) | 19,957 | |||||||||||||
Customer relationships | 12 years | 6,917 | (738 | ) | (1,254 | ) | 4,925 | |||||||||||||
Total amortized intangible assets: | $ | 48,616 | $ | (10,250 | ) | $ | (6,058 | ) | $ | 32,308 | ||||||||||
Intangible assets with indefinite lives: | ||||||||||||||||||||
Trademarks and trade names | Indefinite | $ | 3,162 | $ | — | $ | (578 | ) | $ | 2,584 | ||||||||||
Total Intangible assets with indefinite lives: | $ | 3,162 | $ | — | $ | (578 | ) | $ | 2,584 | |||||||||||
Total intangible assets: | $ | 51,778 | $ | (10,250 | ) | $ | (6,636 | ) | $ | 34,892 | ||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Years | ||||
2011 | $ | 4,416 | ||
2012 | 4,373 | |||
2013 | 3,606 | |||
2014 | 2,917 | |||
2015 | 2,550 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Balance at December 31, 2008 | $ | 56,791 | ||
Acquisitions and purchase price adjustments | 9,587 | |||
Currency exchange and other | 1,697 | |||
Balance at December 31, 2009 | $ | 68,075 | ||
Currency exchange and other | 874 | |||
Balance at December 31, 2010 | $ | 68,949 | ||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2010 | Outstanding at December 31, | |||||||||||
Lines of Credit | Terms | 2010 | 2009 | |||||||||
$ | 30,000 | Unsecured, interest at LIBOR plus margin, due quarterly | $ | — | $ | 2,814 | ||||||
10,000 | Secured, interest at LIBOR plus margin, due monthly (Revolver) | — | — | |||||||||
10,000 | Secured, uncommitted, interest at LIBOR plus margin, due monthly (Uncommitted Facility) | — | — | |||||||||
$ | 50,000 | $ | — | $ | 2,814 | |||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2010 | 2009 | |||||||
Convertible Senior Notes: | ||||||||
Convertible senior notes principal amount | $ | 134,293 | $ | — | ||||
Less: unamortized discount | (6,032 | ) | — | |||||
Convertible senior notes net carrying amount | $ | 128,261 | $ | — | ||||
“No net cost” loan from UBS Bank, secured by Company’s ARS portfolio, with no maturity date. On June 30, 2010, the Company put back its ARS portfolio to UBS AG at par value pursuant to the settlement agreement with UBS AG. Upon exercise of the put option, the Company liquidated its ARS, for cash and used the proceeds to fully repay the related “no net cost” loan with UBS Bank. | — | 296,600 | ||||||
Short-term debt | $ | 128,261 | $ | 296,600 | ||||
2010 | 2009 | |||||||
Convertible Senior Notes: | ||||||||
Convertible senior notes principal amount | $ | — | $ | 135,078 | ||||
Less: unamortized discount | — | (13,745 | ) | |||||
Convertible senior notes net carrying amount | $ | — | $ | 121,333 | ||||
Notes payable to Taiwan bank, principal amount of TWD 158 million, variable interest (approximately 2.0% as of December 31, 2010 and 2009), of which TWD 132 million matures on July 6, 2021, and TWD 26 million matures July 6, 2013, secured by land and building. | 3,811 | 3,837 | ||||||
3,811 | 125,170 | |||||||
Less: Current portion | (418 | ) | (373 | ) | ||||
Long-term debt, net of current portion | $ | 3,393 | $ | 124,797 | ||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2011 | 418 | |||
2012 | 427 | |||
2013 | 412 | |||
2014 | 304 | |||
2015 | 310 | |||
Thereafter | 1,940 | |||
Total long-term debt | $ | 3,811 | ||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
December 31, 2010 | ||||||||||||
Liability | Liability | Liability | Equity | |||||||||
Component | Component | Component | Component | |||||||||
Principal | Net Carrying | Unamortized | Carrying | |||||||||
Amount | Amount | Discount | Amount | |||||||||
$134,293 | $ | 128,261 | $ | 6,032 | $ | 35,515 |
December 31, 2009 | ||||||||||||
Liability | Liability | Liability | Equity | |||||||||
Component | Component | Component | Component | |||||||||
Principal | Net Carrying | Unamortized | Carrying | |||||||||
Amount | Amount | Discount | Amount | |||||||||
$135,078 | $ | 121,333 | $ | 13,745 | $ | 36,858 |
2010 | 2009 | 2008 | ||||||||||
Notes contractual interest expense | $ | 3,077 | $ | 3,576 | $ | 5,088 | ||||||
Amortization of debt discount | 7,656 | 8,302 | 10,690 | |||||||||
Amortization of debt issuance costs | 549 | 648 | 917 | |||||||||
Total | $ | 11,282 | $ | 12,526 | $ | 16,695 | ||||||
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(Amounts in thousands except per share data)
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2011 | $ | 340 | ||
2012 | 340 | |||
2013 | 340 | |||
2014 | 340 | |||
Thereafter | 478 | |||
1,838 | ||||
Less: Interest | (178 | ) | ||
Present value of minimum lease payments | 1,660 | |||
Less: Current portion | (280 | ) | ||
Long-term portion | $ | 1,380 | ||
2010 | 2009 | |||||||
Compensation and payroll taxes | $ | 12,418 | $ | 6,665 | ||||
Accrued expenses | 7,701 | 6,960 | ||||||
Accrued pricing adjustments | 5,252 | 4,627 | ||||||
Equipment purchases | 3,191 | 5,420 | ||||||
Accrued professional services | 1,483 | 1,314 | ||||||
Other | 6,892 | 6,165 | ||||||
$ | 36,937 | $ | 31,151 | |||||
2010 | 2009 | |||||||
Accrued defined benefit plan | $ | 25,286 | $ | 29,304 | ||||
Unrecognized tax benefits | 9,176 | 8,067 | ||||||
Deferred compensation | 2,734 | 2,919 | ||||||
Other | 324 | 165 | ||||||
$ | 37,520 | $ | 40,455 | |||||
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(Amounts in thousands except per share data)
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(Amounts in thousands except per share data)
2010 | 2009 | 2008 | ||||||||||
Current tax provision (benefit) | ||||||||||||
Federal | $ | 330 | $ | — | $ | — | ||||||
Foreign | 23,211 | 7,458 | 9,748 | |||||||||
State | 25 | 14 | (612 | ) | ||||||||
23,566 | 7,472 | 9,136 | ||||||||||
Deferred tax provision (benefit) | ||||||||||||
Federal | 243 | (4,510 | ) | (4,509 | ) | |||||||
Foreign | (7,079 | ) | (3,050 | ) | (5,992 | ) | ||||||
(6,836 | ) | (7,560 | ) | (10,501 | ) | |||||||
Liability for unrecognized tax benefits | 1,109 | 1,390 | (793 | ) | ||||||||
Total income tax provision (benefit) | $ | 17,839 | $ | 1,302 | $ | (2,158 | ) | |||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Percent | Percent | Percent | ||||||||||||||||||||||
of pretax | of pretax | of pretax | ||||||||||||||||||||||
Amount | earnings | Amount | earnings | Amount | earnings | |||||||||||||||||||
Federal tax | $ | 34,336 | 35.0 | $ | 3,881 | 35.0 | $ | 9,931 | 35.0 | |||||||||||||||
State income taxes, net of federal tax provision (benefit) | 293 | 0.3 | (196 | ) | (1.8 | ) | (386 | ) | (1.4 | ) | ||||||||||||||
Foreign income taxed at lower tax rates | (5,050 | ) | (5.2 | ) | (14,536 | ) | (131.1 | ) | (16,908 | ) | (59.6 | ) | ||||||||||||
Subpart F income and foreign dividends, net of foreign tax credits | (7,000 | ) | (7.1 | ) | 6,562 | 59.2 | 2,009 | 7.1 | ||||||||||||||||
Valuation allowance — foreign tax credit carryforwards | 2,283 | 2.3 | 3,851 | 34.7 | 550 | 1.9 | ||||||||||||||||||
Liability for unrecognized tax benefits | 1,109 | 1.1 | 1,390 | 12.5 | (412 | ) | (1.4 | ) | ||||||||||||||||
U.S. provision-to-return adjustments | (2,345 | ) | (2.4 | ) | (1,663 | ) | (15.0 | ) | — | — | ||||||||||||||
Valuation allowance — net operating loss carryforwards | (5,820 | ) | (5.9 | ) | 1,840 | 16.6 | — | — | ||||||||||||||||
Non-deductible in process research and development | — | — | — | — | 2,753 | 9.7 | ||||||||||||||||||
Other | 33 | 0.1 | 173 | 1.6 | 305 | 1.1 | ||||||||||||||||||
Income tax provision (benefit) | $ | 17,839 | 18.2 | $ | 1,302 | 11.7 | $ | (2,158 | ) | (7.6 | ) | |||||||||||||
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(Amounts in thousands except per share data)
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2010 | 2009 | |||||||
Balance at January 1, | $ | 8,064 | $ | 3,706 | ||||
Additions based on tax positions related to the current year | 1,934 | 4,935 | ||||||
Reductions for prior years tax positions | (825 | ) | (577 | ) | ||||
Balance at December 31, | $ | 9,173 | $ | 8,064 | ||||
2010 | 2009 | |||||||
Deferred tax assets, current | ||||||||
Inventory cost | $ | 5,657 | $ | 4,464 | ||||
Accrued expenses and accounts receivable | 1,546 | 1,745 | ||||||
Share based compensation and others | 1,073 | 1,625 | ||||||
Total deferred tax assets, current | $ | 8,276 | $ | 7,834 | ||||
Deferred tax assets, non-current | ||||||||
Plant, equipment and intangible assets | $ | 1,325 | $ | 1,585 | ||||
Foreign tax credits | 19,993 | 14,796 | ||||||
Research and development tax credits | 3,884 | 2,790 | ||||||
Net operating loss carryforwards | 2,156 | 5,471 | ||||||
Accrued pension | 15,078 | — | ||||||
Share based compensation and others | 10,625 | 9,096 | ||||||
53,061 | 33,738 | |||||||
Valuation allowances | (25,855 | ) | (11,285 | ) | ||||
Total deferred tax assets, non-current | 27,206 | 22,453 | ||||||
Deferred tax liabilities, non-current | ||||||||
Step up in basis — acquisition | (10,321 | ) | (11,393 | ) | ||||
Convertible debt interest | (15,311 | ) | (18,804 | ) | ||||
Total deferred tax liabilities, non-current | (25,632 | ) | (30,197 | ) | ||||
Net deferred tax assets, non-current | $ | 1,574 | $ | (7,744 | ) | |||
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(Amounts in thousands except per share data)
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(Amounts in thousands except per share data)
Defined Benefit Plan | ||||||||
2010 | 2009 | |||||||
Components of net periodic benefit cost: | ||||||||
Service cost | $ | 309 | $ | 312 | ||||
Interest cost | 6,334 | 5,691 | ||||||
Recognized actuarial loss | 438 | — | ||||||
Expected return on plan assets | (5,697 | ) | (4,989 | ) | ||||
Net periodic benefit cost | $ | 1,384 | $ | 1,014 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Defined Benefit Plan | ||||||||
2010 | 2009 | |||||||
Change in benefit obligation: | ||||||||
Beginning balance | $ | 117,539 | $ | 83,268 | ||||
Service cost | 309 | 312 | ||||||
Interest cost | 6,326 | 5,691 | ||||||
Actuarial loss | 1,143 | 20,251 | ||||||
Benefits paid | (3,283 | ) | (3,075 | ) | ||||
Currency changes | (3,529 | ) | 11,092 | |||||
Benefit obligation at December 31 | $ | 118,505 | $ | 117,539 | ||||
Change in plan assets: | ||||||||
Beginning balance — fair value | $ | 88,234 | $ | 71,284 | ||||
Employer contribution | 1,468 | 1,481 | ||||||
Actual return on plan assets | 9,810 | 9,478 | ||||||
Benefits paid | (3,283 | ) | (3,075 | ) | ||||
Currency changes | (2,587 | ) | 9,067 | |||||
Fair value of plan assets at December 31 | $ | 93,642 | $ | 88,235 | ||||
Underfunded status at December 31 | $ | (24,863 | ) | $ | (29,304 | ) | ||
2010 | 2009 | |||||||
Discount rate | 5.4 | % | 5.7 | % | ||||
Expected long-term return on plan assets | 6.6 | % | 6.8 | % |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2010 | 2009 | |||||||
Discount rate | 5.4 | % | 5.7 | % |
Asset category | Expected long-term return | Assets allocation | ||||||
Cash | 0.5 | % | 0.6 | % | ||||
Equity securities | 7.7 | % | 49.3 | % | ||||
Debt securities | 5.1 | % | 38.0 | % | ||||
Target return funds | 7.7 | % | 12.1 | % | ||||
Total | 6.6 | % | 100 | % |
Year | |||
2011 | $ | 3,225 | |
2012 | 3,413 | ||
2013 | 3,664 | ||
2014 | 4,290 | ||
2015 | 4,415 | ||
2016-2020 | 25,865 |
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(Amounts in thousands except per share data)
December 31, 2010 | ||||||||||||||||
Assets Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash | $ | 550 | $ | — | $ | — | $ | 550 | ||||||||
Equity securities: | ||||||||||||||||
U.K. | 22,646 | — | — | 22,646 | ||||||||||||
North America | 8,293 | — | — | 8,293 | ||||||||||||
Europe (excluding U.K.) | 7,434 | — | — | 7,434 | ||||||||||||
Japan | 3,197 | — | — | 3,197 | ||||||||||||
Pacific Basin (excluding Japan) | 3,398 | — | — | 3,398 | ||||||||||||
Emerging markets | 1,216 | — | — | 1,216 | ||||||||||||
Fixed income securities: | ||||||||||||||||
Corporate bonds | — | 18,178 | — | 18,178 | ||||||||||||
Index linked securities: | ||||||||||||||||
U.K. Treasuries | 17,440 | — | — | 17,440 | ||||||||||||
Other types of investments: | ||||||||||||||||
Absolute return funds | 11,290 | — | — | 11,290 | ||||||||||||
Total | $ | 75,464 | $ | 18,178 | $ | — | $ | 93,642 | ||||||||
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(Amounts in thousands except per share data)
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(Amounts in thousands except per share data)
2010 | 2009 | 2008 | ||||||||||
Cost of goods sold | $ | 350 | $ | 373 | $ | 443 | ||||||
Selling, general and administrative expense | 11,347 | 9,203 | 8,710 | |||||||||
Research and development expense | 1,354 | 1,360 | 983 | |||||||||
Total share-based compensation expense | $ | 13,051 | $ | 10,936 | $ | 10,136 | ||||||
2010 | 2009 | 2008 | ||||||||||
Expected volatility | 57.99 | % | 57.92 | % | 55.30 | % | ||||||
Expected term (years) | 7.3 | 7.5 | 6.9 | |||||||||
Risk free interest rate | 2.60 | % | 3.20 | % | 4.08 | % | ||||||
Forfeiture rate | 0.88 | % | 2.50 | % | 2.50 | % | ||||||
Dividend yield | N/A | N/A | N/A |
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(Amounts in thousands except per share data)
Weighted | ||||||||||||||||
Weighted | Average | |||||||||||||||
Average | Remaining | |||||||||||||||
Exercise | Contractual | Aggregate | ||||||||||||||
Stock options | Shares | Price | Term (years) | Intrinsic Value | ||||||||||||
Outstanding at January 1, 2008 | 4,268 | $ | 10.06 | 6.0 | $ | 85,393 | ||||||||||
Granted | 241 | 27.95 | ||||||||||||||
Exercised | (540 | ) | 5.48 | 8,775 | ||||||||||||
Forfeited or expired | (74 | ) | 20.67 | |||||||||||||
Outstanding at December 31, 2008 | 3,895 | 11.61 | 5.4 | 2,327 | ||||||||||||
Exercisable at December 31, 2008 | 3,342 | 9.28 | 4.8 | 2,327 | ||||||||||||
Outstanding at January 1, 2009 | 3,895 | 11.61 | ||||||||||||||
Granted | 492 | 15.15 | ||||||||||||||
Exercised | (324 | ) | 4.91 | 4,328 | ||||||||||||
Forfeited or expired | (83 | ) | 15.89 | |||||||||||||
Outstanding at December 31, 2009 | 3,980 | 12.50 | 5.2 | 34,989 | ||||||||||||
Exercisable at December 31, 2009 | 3,161 | 10.59 | 4.2 | 32,558 | ||||||||||||
Outstanding at January 1, 2010 | 3,980 | 12.50 | ||||||||||||||
Granted | 405 | 18.98 | ||||||||||||||
Exercised | (669 | ) | 7.16 | 9,712 | ||||||||||||
Forfeited or expired | (9 | ) | 27.39 | |||||||||||||
Outstanding at December 31, 2010 | 3,707 | $ | 14.14 | 5.2 | $ | 47,891 | ||||||||||
Exercisable at December 31, 2010 | 2,785 | $ | 12.53 | 4.1 | $ | 40,420 |
Weighted | ||||||||||||||||
average | ||||||||||||||||
remaining | Weighted | |||||||||||||||
Range of exercise | Number | contractual | average | |||||||||||||
Plan | prices | outstanding | life (years) | exercise price | ||||||||||||
1993 ISO | $ | 2.47-2.53 | 43 | 1.2 | $ | 2.51 | ||||||||||
2001 Plan | 2.47-28.45 | 3,664 | 5.3 | 14.27 | ||||||||||||
Plan Totals | $ | 2.47-28.45 | 3,707 | 5.2 | $ | 14.14 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Weighted | ||||||||||||||||
average | Weighted | |||||||||||||||
remaining | average | |||||||||||||||
Range of exercise | Number | contractual | exercise | |||||||||||||
Plan | prices | exercisable | life (years) | price | ||||||||||||
1993 ISO | $ | 2.47-2.53 | 43 | 1.2 | $ | 2.51 | ||||||||||
2001 Plan | 2.47-28.45 | 2,742 | 4.1 | 12.69 | ||||||||||||
Total | $ | 2.47-28.45 | 2,785 | 4.1 | $ | 12.53 |
Weighted | ||||||||||||
Average Grant | Aggregate | |||||||||||
Restricted Stock Grants | Shares | Date Fair Value | Intrinsic Value | |||||||||
Nonvested at January 1, 2008 | 1018 | $ | 18.34 | |||||||||
Granted | 283 | 26.47 | ||||||||||
Vested | (391 | ) | 16.29 | |||||||||
Forfeited | (64 | ) | 26.23 | |||||||||
Nonvested at December 31, 2008 | 846 | $ | 21.41 | $ | 5,125 | |||||||
Nonvested at January 1, 2009 | 846 | $ | 21.41 | |||||||||
Granted | 387 | 15.86 | ||||||||||
Vested | (445 | ) | 17.53 | |||||||||
Forfeited | (74 | ) | 23.16 | |||||||||
Nonvested at December 31, 2009 | 714 | $ | 20.64 | $ | 14,579 | |||||||
Nonvested at January 1, 2010 | 714 | $ | 20.64 | |||||||||
Granted | 377 | 17.46 | ||||||||||
Vested | (365 | ) | 21.26 | $ | 7,750 | |||||||
Forfeited | (52 | ) | 20.17 | |||||||||
Nonvested at December 31, 2010 | 674 | $ | 18.56 | $ | 12,479 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2010 | 2009 | 2008 | ||||||||||
Net sales | $ | 6,918 | $ | 8,967 | $ | 15,279 | ||||||
Purchases | $ | 42,867 | $ | 32,868 | $ | 48,964 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2010 | 2009 | 2008 | ||||||||||
Net sales | $ | 15,209 | $ | 11,373 | $ | 3,486 | ||||||
Purchases | $ | 10,824 | $ | 6,252 | $ | 6,555 |
2010 | 2009 | |||||||
Accounts receivable | ||||||||
LSC | $ | 900 | $ | 2,055 | ||||
Keylink | 7,869 | 5,935 | ||||||
$ | 8,769 | $ | 7,990 | |||||
Accounts payable | ||||||||
LSC | $ | 7,171 | $ | 7,846 | ||||
Keylink | 5,783 | 4,667 | ||||||
$ | 12,954 | $ | 12,513 | |||||
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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
North | ||||||||||||||||
2010 | Asia | America | Europe | Consolidated | ||||||||||||
Total sales | $ | 499,315 | $ | 149,029 | $ | 177,063 | $ | 825,407 | ||||||||
Inter-company sales | (54,782 | ) | (54,909 | ) | (102,830 | ) | (212,521 | ) | ||||||||
Net sales | $ | 444,533 | $ | 94,120 | $ | 74,233 | $ | 612,886 | ||||||||
Property, plant and equipment | $ | 137,225 | $ | 33,115 | $ | 30,405 | $ | 200,745 | ||||||||
Assets | $ | 444,729 | $ | 178,018 | $ | 223,803 | $ | 846,550 | ||||||||
North | ||||||||||||||||
2009 | Asia | America | Europe | Consolidated | ||||||||||||
Total sales | $ | 354,906 | $ | 85,498 | $ | 116,357 | $ | 556,761 | ||||||||
Inter-company sales | (27,377 | ) | (25,752 | ) | (69,275 | ) | (122,404 | ) | ||||||||
Net sales | $ | 327,529 | $ | 59,746 | $ | 47,082 | $ | 434,357 | ||||||||
Property, plant and equipment | $ | 97,142 | $ | 30,123 | $ | 35,723 | $ | 162,988 | ||||||||
Assets | $ | 380,497 | $ | 339,518 | $ | 301,883 | $ | 1,021,898 | ||||||||
North | ||||||||||||||||
2008 | Asia | America | Europe | Consolidated | ||||||||||||
Total sales | $ | 346,023 | $ | 113,620 | $ | 28,328 | $ | 487,971 | ||||||||
Inter-company sales | (25,056 | ) | (27,153 | ) | (2,977 | ) | (55,186 | ) | ||||||||
Net sales | $ | 320,967 | $ | 86,467 | $ | 25,351 | $ | 432,785 | ||||||||
Property, plant and equipment | $ | 105,957 | $ | 31,213 | $ | 37,497 | $ | 174,667 | ||||||||
Assets | $ | 333,639 | $ | 406,456 | $ | 150,583 | $ | 890,678 | ||||||||
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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
% of Total | ||||||||
2010 | Revenue | Revenue | ||||||
China | $ | 187,633 | 30.6 | % | ||||
Taiwan | 141,388 | 23.1 | % | |||||
United States | 134,911 | 22.0 | % | |||||
Korea | 35,180 | 5.7 | % | |||||
Germany | 31,704 | 5.2 | % | |||||
Singapore | 24,468 | 4.0 | % | |||||
U.K. | 24,337 | 4.0 | % | |||||
All others | 33,265 | 5.4 | % | |||||
Total | $ | 612,886 | 100 | % | ||||
% of Total | ||||||||
2009 | Revenue | Revenue | ||||||
China | $ | 131,914 | 30.4 | % | ||||
Taiwan | 122,502 | 28.2 | % | |||||
United States | 75,185 | 17.3 | % | |||||
Korea | 27,223 | 6.3 | % | |||||
U.K. | 17,926 | 4.1 | % | |||||
Germany | 17,438 | 4.0 | % | |||||
Singapore | 14,429 | 3.4 | % | |||||
All others | 27,740 | 6.4 | % | |||||
Total | $ | 434,357 | 100 | % | ||||
% of Total | ||||||||
2008 | Revenue | Revenue | ||||||
China | $ | 130,045 | 30.0 | % | ||||
Taiwan | 118,577 | 27.4 | % | |||||
United States | 85,906 | 19.8 | % | |||||
Korea | 21,901 | 5.1 | % | |||||
Germany | 17,021 | 3.9 | % | |||||
Singapore | 14,852 | 3.3 | % | |||||
U.K. | 12,821 | 3.0 | % | |||||
All others | 31,662 | 7.3 | % | |||||
Total | $ | 432,785 | 100 | % | ||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
2011 | $ | 5,906 | ||
2012 | 5,079 | |||
2013 | 3,764 | |||
2014 | 350 | |||
2015 and thereafter | 43 | |||
$ | 15,142 | |||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except per share data)
Quarter Ended | ||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||
Fiscal 2010 | ||||||||||||||||
Net sales | $ | 136,847 | $ | 149,153 | $ | 163,120 | $ | 163,767 | ||||||||
Gross profit | 47,783 | 53,467 | 60,977 | 62,643 | ||||||||||||
Net income attributable to common shareholders | 14,958 | 16,647 | 21,162 | 23,967 | ||||||||||||
Earnings per share attributable to common shareholders | ||||||||||||||||
Basic | $ | 0.34 | $ | 0.38 | $ | 0.48 | $ | 0.54 | ||||||||
Diluted | 0.33 | 0.37 | 0.46 | 0.52 |
Quarter Ended | ||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||
Fiscal 2009 | ||||||||||||||||
Net sales | $ | 78,050 | $ | 103,898 | $ | 122,122 | $ | 130,287 | ||||||||
Gross profit | 14,493 | 27,370 | 37,575 | 41,769 | ||||||||||||
Net income (loss) attributable to common shareholders | (10,766 | ) | (2,953 | ) | 7,020 | 14,212 | ||||||||||
Earnings (loss) per share attributable to common shareholders | ||||||||||||||||
Basic | $ | (0.26 | ) | $ | (0.07 | ) | $ | 0.17 | $ | 0.33 | ||||||
Diluted | (0.26 | ) | (0.07 | ) | 0.16 | 0.32 |
Note: | The sum of the quarterly earnings per share may not equal the full year amount, as the computations of the weighted average number of common shares outstanding for each quarter and for the full year are performed independently. |
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By: | /s/ Keh-Shew Lu | February 28, 2011 | ||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||
By: | /s/ Richard D. White | February 28, 2011 | ||||
Chief Financial Officer, Treasurer, and Secretary | ||||||
(Principal Financial and Accounting Officer) |
/s/ Keh-Shew, Lu | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
/s/ Richard D. White | ||
Chief Financial Officer, Treasurer, and Secretary | ||
(Principal Financial and Accounting Officer) | ||
/s/ Raymond Soong | /s/ C.H. Chen | |
RAYMOND SOONG | C.H. CHEN | |
Chairman of the Board of Directors | Director | |
/s/ Michael R. Giordano | /s/ L.P. Hsu | |
MICHAEL R. GIORDANO | L.P. HSU | |
Director | Director | |
/s/ Keh-Shew Lu | /s/ John M. Stich | |
KEH-SHEW LU | JOHN M. STICH | |
Director | Director | |
/s/ Michael K.C. Tsai | ||
MICHAEL K.C. TSAI | ||
Director |
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Table of Contents
Exhibit | Filed | |||||||||||
Number | Description | Form | Date of First Filing | Number | Herewith | |||||||
2.1 | Stock Purchase Agreement dated as of December 20, 2005, by and among DII Taiwan Corporation Ltd., Anachip Corporation, Lite-On Semiconductor Corporation, Shin Sheng Investment Limited and Sun Shining Investment Corp. | 8-K | December 21, 2005 | 2.1 | ||||||||
2.2 | Asset Purchase Agreement dated as of October 18, 2006, by and among DII Taiwan Corporation Ltd., APD Semiconductor, Inc. and Certain Shareholders Thereof, and entered into by the parties on October 19, 2006 | 8-K | October 24, 2006 | 2.1 | ||||||||
2.3 | Amendment to the Asset Purchase Agreement, dated October 18, 2006, by and among Diodes Incorporated, DII Taiwan Corporation Ltd., APD Semiconductor, Inc. and APD Semiconductor (Asia) Inc., and entered into by the parties on October 19, 2006 | 8-K | October 24, 2006 | 2.2 | ||||||||
2.4 | Second Amendment to Asset Purchase Agreement dated as of October 31, 2006, by and among Diodes Incorporated, DII Taiwan Corporation Ltd., APD Semiconductor, Inc. and APD Semiconductor (Asia) Inc. | 8-K | November 7, 2006 | 2.1 | ||||||||
3.1 | Certificate of Incorporation, as amended. | S-3 | September 8, 2005 | 3.1 | ||||||||
3.2 | Amended By-laws of the Company dated July 19, 2007 | 8-K | July 23, 2007 | 3.1 | ||||||||
4.1 | Form of Certificate for Common Stock, par value $0.66 2/3 per share | S-3 | August 25, 2005 | 4.1 | ||||||||
4.2 | Form of Convertible Senior Notes due 2026 | S-3 | October 4, 2006 | 4.1 | ||||||||
4.3 | Form of Indenture for the Convertible Senior Notes due 2026 | S-3 | October 4, 2006 | 4.3 | ||||||||
10.1 * | Company’s 401(k) Plan — Adoption Agreement | 10-K | March 31, 1995 | |||||||||
10.2 * | Company’s 401(k) Plan — Basic Plan Documentation #03 | 10-K | March 31, 1995 | |||||||||
10.3 * | Company’s Incentive Bonus Plan | S-8 | May 9, 1994 | |||||||||
10.4 * | Company’s 1993 Non-Qualified Stock Option Plan | S-8 | May 9, 1994 | |||||||||
10.5 * | Company’s 1993 Incentive Stock Option Plan | 10-K | March 31, 1995 | |||||||||
10.6 | KaiHong Compensation Trade Agreement for SOT-23 Product | 10-Q/A | October 27, 1995 | 10.2 | ||||||||
10.7 | KaiHong Compensation Trade Agreement for MELF Product | 10-Q/A | October 27, 1995 | 10.3 | ||||||||
10.8 | Lite-On Power Semiconductor Corporation Distributorship Agreement | 10-Q | July 27, 1995 | 10.4 | ||||||||
10.9 | Loan Agreement between the Company and FabTech Incorporated | 10-K | April 1, 1996 | 10.16 | ||||||||
10.10 | KaiHong Joint Venture Agreement between the Company and Mrs. J.H. Xing | 10-K | April 1, 1996 | 10.17 | ||||||||
10.11 | Quality Assurance Consulting Agreement between LPSC and Shanghai KaiHong Electronic Company, Ltd. | 10-Q | August 14, 1996 | 10.18 | ||||||||
10.12 | Guaranty Agreement between the Company and Shanghai KaiHong Electronic Co., Ltd. | 10-K | March 26, 1997 | 10.21 | ||||||||
10.13 | Guaranty Agreement between the Company and Xing International, Inc. | 10-K | March 26, 1997 | 10.22 | ||||||||
10.14 | Bank Guaranty for Shanghai KaiHong Electronic Co., LTD | 10-Q | August 14,1998 | 10.25 | ||||||||
10.15 | Consulting Agreement between the Company and J.Y. Xing | 10-Q | November 13,1998 | 10.26 |
Table of Contents
Exhibit | Filed | |||||||||||
Number | Description | Form | Date of First Filing | Number | Herewith | |||||||
10.16 | Diodes-Taiwan Relationship Agreement for FabTech Wafer Sales | 10-Q | August 11, 1999 | 10.28 | ||||||||
10.17 | Volume Purchase Agreement dated as of October 25, 2000, between FabTech, Inc. and Lite-On Power Semiconductor Corporation | 8-K | December 18, 2000 | 10.31 | ||||||||
10.18 | Diodes Incorporated Building Lease — Third Amendment | 10-Q | November 2, 2001 | 10.36 | ||||||||
10.19* | 2001 Omnibus Equity Incentive Plan | DEF14A | April 27, 2001 | B | ||||||||
10.20 | Sale and Leaseback Agreement between the Company and Shanghai Ding Hong Company, Ltd. | 10-Q | May 15, 2002 | 10.46 | ||||||||
10.21 | Lease Agreement between the Company and Shanghai Ding Hong Company, Ltd. | 10-Q | May 15, 2002 | 10.47 | ||||||||
10.22 | Lease Agreement for Plant #2 between the Company and Shanghai Ding Hong Electronic Equipment Limited | 10-Q | August 9, 2004 | 10.52 | ||||||||
10.23 | $5 Million Term Note with Union Bank | 10-Q | August 9, 2004 | 10.53 | ||||||||
10.24 | First Amendment To Amended And Restated Credit Agreement | 10-Q | August 9, 2004 | 10.54 | ||||||||
10.25 | Covenant Agreement between Union Bank and FabTech, Inc. | 10-Q | August 9, 2004 | 10.55 | ||||||||
10.26 | Amendment to The Sale and Lease Agreement dated as January 31, 2002 with Shanghai Ding Hong Electronic Co., Ltd. | 10-Q | August 9, 2004 | 10.56 | ||||||||
10.27 | Lease Agreement between Diodes Shanghai and Shanghai Yuan Hao Electronic Co., Ltd. | 10-Q | August 9, 2004 | 10.57 | ||||||||
10.28 | Supplementary to the Lease agreement dated as September 30, 2003 with Shanghai Ding Hong Electronic Co., Ltd. | 10-Q | August 9, 2004 | 10.58 | ||||||||
10.29 | Second Amendment to Amended and Restated Credit Agreement dated as of August 29, 2005, between Diodes Incorporated and Union Bank of California, N.A. | 8-K | September 2, 2005 | 10.59 | ||||||||
10.30 | Covenant Agreement dated as of August 29, 2005, between FabTech, Inc. and Union Bank of California, N.A. | 8-K | September 2, 2005 | 10.60 | ||||||||
10.31 | Revolving Note dated as of August 29, 2005, of Diodes Incorporated payable to Union Bank of California, N.A. | 8-K | September 2, 2005 | 10.61 | ||||||||
10.32 | Term Note dated as of August 29, 2005, of FabTech, Inc. payable to Union Bank of California, N.A. | 8-K | September 2, 2005 | 10.62 | ||||||||
10.33 | Security Agreement dated as of February 27, 2003, between the Company and Union Bank of California, N.A. | 8-K | September 2, 2005 | 10.63 | ||||||||
10.34 | Security Agreement dated as of February 27, 2003, between FabTech, Inc. and Union Bank of California, N.A. | 8-K | September 2, 2005 | 10.64 | ||||||||
10.35 | Continuing Guaranty dated as of December 1, 2000, between the Company and Union Bank of California, N.A. | 8-K | September 2, 2005 | 10.65 | ||||||||
10.36 | Continuing Guaranty dated as of December 1, 2000, between FabTech, Inc. and Union Bank of California, N.A. | 8-K | September 2, 2005 | 10.66 | ||||||||
10.37* | Employment agreement between Diodes Incorporated and Dr. Keh-Shew Lu dated August 29, 2005 | 8-K | September 2, 2005 | 10.1 | ||||||||
10.38* | Employment agreement between Diodes Incorporated and Mark King, dated August 29, 2005 | 8-K | September 2, 2005 | 10.2 | ||||||||
10.39* | Employment agreement between Diodes Incorporated and Joseph Liu, dated August 29, 2005 | 8-K | September 2, 2005 | 10.3 | ||||||||
10.40* | Employment agreement between Diodes Incorporated and Carl Wertz, dated August 29, 2005 | 8-K | September 2, 2005 | 10.4 |
Table of Contents
Exhibit | Filed | |||||||||||
Number | Description | Form | Date of First Filing | Number | Herewith | |||||||
10.41* | Form of Indemnification Agreement between Diodes and its directors and executive officers. | 8-K | September 2, 2005 | 10.5 | ||||||||
10.42 | Wafer purchase Agreement dated January 10, 2006 between Diodes Incorporated Taiwan Co., Ltd and Lite-on Semiconductor Corporation | 8-K | January 12, 2006 | 2.1 | ||||||||
10.43 | Supplementary to the Lease Agreement dated on September 5, 2004 with Shanghai Ding Hong Electronic Co., Ltd. | 10-Q | May 10, 2006 | 10.14 | ||||||||
10.44 | Supplementary to the Lease Agreement dated on June 28, 2004 with Shanghai Yuan Hao Electronic Co., Ltd. | 10-Q | May 10, 2006 | 10.15 | ||||||||
10.45 | Agreement on Application, Construction and Transfer of Power Facilities, dated as of March 15, 2006, between the Company and Shanghai Yahong Electronic Co., Ltd | 10-Q | May 10, 2006 | 10.16 | ||||||||
10.46* | Amendment of 1993 Non-Qualified Stock Option Plan, the 1993 Incentive Stock Option Plan and the 2001 Equity Incentive Plan of the Company dated as of September 22, 2006 | 8-K | September 26, 2006 | 10.2 | ||||||||
10.47 | Amended and Restated Lease Agreement dated as of September 1, 2006, between Diodes FabTech, Inc. with Townsend Summit, LLC | 8-K | October 11, 2006 | 10.1 | ||||||||
10.48 | Agreement on purchase of office building located in Taiwan dated April 14, 2006, between Diodes Taiwan and First International Computer, Inc. | 8-K | October 11, 2006 | 10.2 | ||||||||
10.49* | Deferred Compensation Plan effective January 1, 2007 | 8-K | January 8, 2007 | 99.1 | ||||||||
10.50 | A Supplement dated January 1, 2007 to the Lease Agreement on Disposal of Waste and Scraps between Diodes Shanghai and Shanghai Yuan Hao Electronic Co., Ltd. | 10-K | February 29, 2008 | 10.50 | ||||||||
10.51 | A Supplement dated January 1, 2007 to the Lease Agreement on Disposal of Waste and Scraps between Diodes China and Shanghai Ding Hong Electronic Co., Ltd | 10-K | February 29, 2008 | 10.51 | ||||||||
10.52 | Plating Process Agreement made and entered into among Diodes China, Diodes Shanghai, Shanghai Ding Hong Electronic Co., Ltd. and Shanghai Micro-Surface Co., Ltd. | 10-K | February 29, 2008 | 10.52 | ||||||||
10.53 | Supplementary Agreement dated December 31, 2007 to the Lease Agreement dated June, 28, 2004 for Leasing Diodes Shanghai New Building’s Fourth and Fifth Floor between Diodes Shanghai and Shanghai Yuan Hao Electronic Co., Ltd. | 10-K | February 29, 2008 | 10.53 | ||||||||
10.54 | Accommodation Building Fourth and Fifth Floor Lease Agreement dated December 31, 2007 between Diodes Shanghai and Shanghai Ding Hong Electronic Co., Ltd. | 10-K | February 29, 2008 | 10.54 | ||||||||
10.55 | Consulting Agreement between the Company and Mr. M.K. Lu. | 10-K | February 29, 2008 | 10.55 | ||||||||
10.56 | Foreign Exchange Agreement dated as of April 3, 2008, between Union Bank of California, N.A. and Diodes FabTech, Inc. | 8-K | April 4, 2008 | 99.2 | ||||||||
10.57 | Escrow Agreement dated as of April 3, 2008, among Diodes FabTech, Inc., UBS Limited and Union Bank of California, N.A. | 8-K | April 4, 2008 | 99.4 | ||||||||
10.58 | Irrevocable Standby Letter of Credit dated as of March 31, 2008, issued by UBS Financial Services Inc. (incorporated by reference to Exhibit 99.1 to Form 8-K filed with the Commission on April 4, 2008). | 10-Q | May 12, 2008 | 10.1 | ||||||||
10.59 | Fourth Amendment to Amended and Restated Credit Agreement dated as of March 28, 2008, between Diodes Incorporated and Union Bank of California, N.A. (incorporated by reference to Exhibit 99.3 to Form 8-K filed with the Commission on April 4, 2008). | 10-Q | May 12, 2008 | 10.2 |
Table of Contents
Exhibit | Filed | |||||||||||
Number | Description | Form | Date of First Filing | Number | Herewith | |||||||
10.60 | Continuing Guaranty Agreement dated April 3, 2008, between Diodes Incorporated and Union Bank of California N.A. (incorporated by reference to Exhibit 99.5 to Form 8-K filed with the Commission on April 4, 2008). | 10-Q | May 12, 2008 | 10.3 | ||||||||
10.61 | Guaranty Agreement dated March 28, 2008, between Diodes Incorporated and UBS Financial Services, Inc. (incorporated by reference to Exhibit 99.6 to Form 8-K filed with the Commission on April 4, 2008). | 10-Q | May 12, 2008 | 10.4 | ||||||||
10.62 | Addendum to Guaranty Agreement dated March 28, 2008, between Diodes Incorporated and UBS Financial Services, Inc. (incorporated by reference to Exhibit 99.7 to Form 8-K filed with the Commission on April 4, 2008). | 10-Q | May 12, 2008 | 10.5 | ||||||||
10.63 | Client’s Agreement dated March 28, 2008, between Diodes Incorporated and UBS Financial Services, Inc. (incorporated by reference to Exhibit 99.8 to Form 8-K filed with the Commission on April 4, 2008). | 10-Q | May 12, 2008 | 10.6 | ||||||||
10.64 | Addendum to Client’s Agreement dated March 28, 2008, between Diodes Incorporated and UBS Financial Services, Inc. (incorporated by reference to Exhibit 99.9 to Form 8-K filed with the Commission on April 4, 2008). | 10-Q | May 12, 2008 | 10.7 | ||||||||
10.65 | Terms and Conditions For Irrevocable Standby Letter of Credit dated March 28, 2008, between Diodes Incorporated and UBS Financial Services, Inc. (incorporated by reference to Exhibit 99.10 to Form 8-K filed with the Commission on April 4, 2008). | 10-Q | May 12, 2008 | 10.8 | ||||||||
10.66 | Addendum to Terms and Conditions For Irrevocable Standby Letter of Credit dated March 28, 2008, between Diodes Incorporated and UBS Financial Services, Inc. | 10-Q | May 12, 2008 | 10.9 | ||||||||
10.67 | Implementation Deed dated April 2008, between Diodes Incorporated and Zetex plc. | 10-Q | May 12, 2008 | 10.10 | ||||||||
10.68 | Revolving note dated as of March 28, 2008, of Diodes Incorporated payable to Union Bank of California, N.A. | 10-Q | May 12, 2008 | 10.11 | ||||||||
10.69 | Contract for the Purchase and Sale of Real Estate dated May 6, 2008, between Diodes Incorporated and West Plano Land Company, LP. | 10-Q | August 11, 2008 | 10.1 | ||||||||
10.70 | Service Agreement between Diodes Zetex Limited and Colin Keith Greene, dated June 30, 2008. | 10-Q | August 11, 2008 | 10.2 | ||||||||
10.71 | Side Letter to the Service Agreement between Diodes Zetex Limited and Hans Rohrer, dated July 11, 2008. | 10-Q | August 11, 2008 | 10.3 | ||||||||
10.72 | Amendment to the Addendum to Client’s Agreement and Terms and Conditions for Irrevocable Standby Letter of Credit, dated June 9, 2008, between Diodes Incorporated and UBS Financial Services, Inc. | 8-K | June 13, 2008 | 99.1 | ||||||||
10.73 | Fourth Floor of the Accommodation Building Lease Agreement dated January 1, 2008, between Shanghai Kai Hong Technology Co., Ltd. and Shanghai Ding Hong Electronic Co., Ltd. | 10-Q | August 11, 2008 | 10.5 | ||||||||
10.74 | Factory Building Lease Agreement dated March 1, 2008 between Shanghai Kai Hong Technology Co., Ltd. and Shanghai Yuan Hao Electronic Co. Ltd. | 10-Q | August 11, 2008 | 10.6 |
Table of Contents
Exhibit | Filed | |||||||||||
Number | Description | Form | Date of First Filing | Number | Herewith | |||||||
10.75 | Second Amendment to Addendum to Client’s Agreement and Terms and Conditions For Irrevocable Standby Letter of Credit dated October 2, 2008, between Diodes Incorporated and UBS Financial Services, Inc. | 8-K | October 10, 2008 | 99.1 | ||||||||
10.76 | Acceptance Form, Offering Letter and Current Rate and Dividend Information on UBS’ Offer Relating to Auction Rate Securities Settlement with Diodes Incorporated dated as of October 8, 2008, issued by UBS Financial Services Inc. | 8-K | November 4, 2008 | 99.1 | ||||||||
10.77 | Credit Line Account Application and Agreement for Organization and Businesses dated as of November 4, 2008, between Diodes Incorporated and UBS Bank USA | 8-K | November 4, 2008 | 99.2 | ||||||||
10.78 | Addendum to Credit Line Account Application and Agreement dated as of November 4, 2008, between Diodes Incorporated and UBS Bank USA | 8-K | November 4, 2008 | 99.3 | ||||||||
10.79 | Union Bank Credit Line Maturity Date Extension | 10-Q | November 7, 2008 | 10.1 | ||||||||
10.80 | Supplemental Agreement to the Factory Building Lease Agreement dated as of August 11, 2008 between Shanghai Kai Hong Technology Electronic Co., Ltd. and Shanghai Yuan Hao Electronic Co., Ltd. | 10-Q | November 7, 2008 | 10.2 | ||||||||
10.81 | DSH #2 Building Lease Agreement dated as of August 11, 2008 between Shanghai Kai Hong Technology Electronic Co., Ltd. and Shanghai Yuan Howe Electronics Co., Ltd. | 10-Q | November 7, 2008 | 10.3 | ||||||||
10.82 | Letter agreement dated as of November 17, 2008 extending the maturity date of the Company’s revolving line of credit as stated in the Amended and Restated Credit Agreement dated as of March 28, 2008, between Diodes Incorporated and Union Bank of California, N.A. | 8-K | January 23, 2009 | 99.2 | ||||||||
10.83 | Distributorship Agreement dated November 1, 2008 between Shanghai Kai Hong Technology Co., Ltd. and Shanghai Keylink Logistic Co., Ltd. | 10-K | February 26, 2009 | 10.83 | ||||||||
10.84 | Lease Facility Safety Management Agreement dated December 31, 2008 between Shanghai Kai Hong Technology Co., Ltd. and Shanghai Yuan Howe Electronic Co., Ltd. | 10-K | February 26, 2009 | 10.84 | ||||||||
10.85 | Abbreviated Standard Form of Agreement between Owner and Architech dated August 25, 2008 between Corgan Associates, Inc. and Diodes Incorporated | 10-K | February 26, 2009 | 10.85 | ||||||||
10.86 | 1969 Incentive Bonus Plan, amended December 22, 2008 | 10-K | February 26, 2009 | 10.86 | ||||||||
10.87 | Diodes Incorporated 2001 Omnibus Equity Incentive Plan, amended December 22, 2008 | 10-K | February 26, 2009 | 10.87 | ||||||||
10.88 | Diodes Incorporated Deferred Compensation Plan Effective January 1, 2007, amended December 22, 2008 | 10-K | February 26, 2009 | 10.88 | ||||||||
10.89 | Second Supplemental Agreement to the Factory Building Lease Agreement dated August 19, 2009 between Shanghai Kai Hong Technology Co., Ltd. And Shanghai Yuan Hao Electronic Co., Ltd. | 10-Q | November 16, 2009 | 10.1 | ||||||||
10.90 | Employment Agreement dated as of September 22, 2009, between the Company and Keh-Shew Lu | 8-K | September 28, 2009 | 99.1 |
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Exhibit | Filed | |||||||||||||
Number | Description | Form | Date of First Filing | Number | Herewith | |||||||||
10.91*** | Stock Award Agreement dated as of September 22, 2009, between the Company and Keh-Shew Lu | 8-K | September 28, 2009 | 99.3 | ||||||||||
10.92*** | Exchange Agreement dated September 28, 2009, between the Company and an institutional holder | 8-K | October 2, 2009 | 10.1 | ||||||||||
10.93 | Exchange Agreement dated June 9, 2009, between Diodes Incorporated and Acqua Wellington Opportunity, Ltd. | 8-K | June 15, 2009 | 10.1 | ||||||||||
10.94 | Consulting Agreement dated January 1, 2009, between Diodes Incorporated and Keylink International (B.V.I.) Co., Ltd. | 10-Q | May 8, 2009 | 10.1 | ||||||||||
10.95 | Amended Appendix to the Plating Agreement dated February 11, 2009, among Shanghai Kai Hong Electronic Co., Ltd., Diodes Shanghai Co., Ltd., Shanghai Ding Hong Electronic Co., Ltd. and Shanghai Micro-Surface Co., Ltd. | 10-Q | May 8, 2009 | 10.2 | ||||||||||
10.96 | Amendment to the Exhibit 1 of the Distributorship Agreement dated March 27, 2009, between Shanghai Kai Hong Technology Co., Ltd. and Shanghai Keylink Logistic Co., Ltd. | 10-Q | May 8, 2009 | 10.3 | ||||||||||
10.97 | Power Facility Construction Agreement dated October 29, 2009 between Shanghai Kai Hong Technology Co., Ltd. and Shanghai Yuan Hao Electronic Co., Ltd. | 10-K | March 1, 2010 | 10.97 | ||||||||||
10.98 | First Amendment to the DSH #2 Building Lease Agreement dated December 31, 2009 between Shanghai Kai Hong Technology Electronic Co. Ltd. and Shanghai Yuan Howe Electronics Co., Ltd. | 10-K | March 1, 2010 | 10.98 | ||||||||||
10.99 | Amendment, dated March 31, 2010, to the Credit Agreement among the Company, Diodes Zetex Limited and Bank of America, N.A. | 10-Q | May 7, 2010 | 10.1 | ||||||||||
10.100 | Construction Project Contract between Shanghai Kai Hong Technology Electronic Co., Ltd. and Shanghai Yuan Howe Electronic Co., Ltd. | 10-Q | May 7, 2010 | 10.2 | ||||||||||
10.101 | Third Floor of the Accommodation Building Lease Agreement, dated April 12, 2010, between Shanghai Kai Hong Technology Co., Ltd. and Shanghai Ding Hong Electronic Co., Ltd. | 10-Q | May 7, 2010 | 10.3 | ||||||||||
10.102 | First Amendment to Credit Agreement, dated July 16, 2010, among the Company, Diodes Zetex Limited and Bank of America, N.A. | 10-Q | August 6, 2010 | 10.1 | ||||||||||
10.103****** | Credit Agreement, dated November 25, 2009, by and among the Company, Diodes Zetex Limited and Bank of America, N.A. | 10-Q | August 6, 2010 | 10.2 | ||||||||||
10.104 | Second Floor of the Accommodation Building Lease Agreement, dated September 1, 2010, between Shanghai Kaihong Technology Company Limited and Shanghai Ding Hong Electronic Company Limited. | 10-Q | November 9, 2010 | 10.1 | ||||||||||
10.105 | Security Guards Transfer Memorandum of Understanding, dated September 1, 2010, between Diodes Shanghai Company Limited and Shanghai Yuan Hao Electronic Company Limited. | 10-Q | November 9, 2010 | 10.2 | ||||||||||
10.106*** | Investment Cooperation Agreement effective as of September 10, 2010, between Diodes Hong Kong Holding Company Limited and the Management Committee of the Chengdu Hi-Tech Industrial Development Zone. | 8-K | September 16, 2010 | |||||||||||
10.107*** | Supplementary Agreement to the Investment Cooperation Agreement effective as of September 10, 2010, between Diodes Hong Kong Holding Company Limited and the Management Committee of the Chengdu Hi-Tech Industrial Development Zone. | 8-K | September 16, 2010 | |||||||||||
10.108*** | Joint Venture Agreement effective as of November 5, 2010 between Diodes Hong Kong Holding Company Limited and Chengdu Ya Guang Electronic Company Limited. | 8-K | November 12, 2010 |
Table of Contents
Exhibit | Filed | |||||||||||
Number | Description | Form | Date of First Filing | Number | Herewith | |||||||
10.109 | Joint Venture Agreement Supplement Concerning the Establishment of Diodes Technology (Chengdu) Company Limited effective as of November 5, 2010, between Diodes Hong Kong Holding Company Limited and Chengdu Ya Guang Electronic Company Limited. | 8-K | November 12, 2010 | |||||||||
10.110 | Second Amendment to Credit Agreement, dated November 24, 2010, among the Company, Diodes Zetex Limited and Bank of America, N.A. | 8-K | December 1, 2010 | |||||||||
10.111 | Third Amendment to Credit Agreement, dated February 9, 2011, among the Company, Diodes Zetex Limited and Bank of America, N.A. | 8-K | February 9, 2011 | |||||||||
10.112 | Second Amendment to the DSH #2 Building Lease Agreement, dated November 15, 2010, between Shanghai Kaihong Technology Electronic Company Limited and Shanghai Yuan Howe Electronics Company Limited. | 10-K | 10.112 | X | ||||||||
10.113 | Power Facility Expansion Construction Contract, dated January 24, 2011, between Shanghai Kaihong Technology Electronic Company Limited and Shanghai Yuan Howe Electronics Company Limited. | 10-K | 10.113 | X | ||||||||
14** | Code of Ethics for Chief Executive Officer and Senior Financial Officers** | |||||||||||
18.1 | Preferability letter from independent accountants regarding change in accounting principle | 10-Q | November 7, 2008 | 18.1 | ||||||||
21 | Subsidiaries of the Registrant | X | ||||||||||
23.1 | Consent of Independent Registered Public Accounting Firm | X | ||||||||||
31.1 | Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||
31.2 | Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||
32.1**** | Certification Pursuant to 18 U.S.C. adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||
32.2**** | Certification Pursuant to 18 U.S.C. adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||
101.INS***** | XBRL Instance Document | |||||||||||
101.SCH***** | XBRL Taxonomy Extension Schema | |||||||||||
101.CAL***** | XBRL Taxonomy Extension Calculation Linkbase | |||||||||||
101.LAB***** | XBRL Taxonomy Extension Labels Linkbase | |||||||||||
101.PRE***** | XBRL Taxonomy Extension Presentation Linkbase |
Table of Contents
* | Constitute management contracts, or compensatory plans or arrangements, which are required to be filed pursuant to Item 601 of Regulation S-K. | |
** | Provided in the Corporate Governance portion of the Investor Relations section of the Company’s website at http://www.diodes.com. | |
*** | Confidential treatment has been requested with respect to the omitted portions of these exhibits, which portions have been filed separately with the Securities and Exchange Commission. | |
**** | A certification furnished pursuant to Item 601 of the Regulation S-K will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. | |
***** | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. | |
****** | This exhibit supersedes the exhibit 10.1 to the Form 8-K that was filed on December 2, 2009. |