Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'ALTERA CORP | ' | ' |
Entity Central Index Key | '0000768251 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $10,513,223,806 |
Entity Common Stock, Shares Outstanding (actual number) | ' | 317,564,307 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $2,869,158 | $2,876,627 |
Short-term investments | 141,487 | 140,958 |
Total cash, cash equivalents, and short-term investments | 3,010,645 | 3,017,585 |
Accounts receivable, net | 483,032 | 323,708 |
Inventories | 163,880 | 152,721 |
Deferred income taxes - current | 63,228 | 59,049 |
Deferred compensation plan - marketable securities | 66,455 | 60,321 |
Deferred compensation plan - restricted cash equivalents | 16,699 | 17,116 |
Other current assets | 48,901 | 49,852 |
Total current assets | 3,852,840 | 3,680,352 |
Property and equipment, net | 204,142 | 206,148 |
Long-term investments | 1,695,066 | 704,758 |
Deferred income taxes - non-current | 25,005 | 17,082 |
Goodwill | 73,968 | 2,329 |
Acquisition-related intangible assets, net | 82,150 | 4,874 |
Other assets, net | 76,676 | 42,285 |
Total assets | 6,009,847 | 4,657,828 |
Current liabilities: | ' | ' |
Accounts payable | 44,163 | 50,036 |
Accrued liabilities | 41,218 | 29,005 |
Accrued compensation and related liabilities | 51,105 | 40,606 |
Deferred compensation plan obligations | 83,154 | 77,437 |
Deferred income and allowances on sales to distributors | 487,746 | 345,993 |
Total current liabilities | 707,386 | 543,077 |
Income taxes payable - non-current | 290,525 | 272,000 |
Long-term debt | 1,491,466 | 500,000 |
Other non-current liabilities | 8,403 | 9,304 |
Total liabilities | 2,497,780 | 1,324,381 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock: $.001 par value; 1,000,000 shares authorized; outstanding - 317,769 at December 31, 2013 and 319,564 shares at December 31, 2012 | 318 | 320 |
Capital in excess of par value | 1,216,826 | 1,122,555 |
Retained earnings | 2,322,885 | 2,204,980 |
Accumulated other comprehensive (loss)/ income | -27,962 | 5,592 |
Total stockholders' equity | 3,512,067 | 3,333,447 |
Total liabilities and stockholders' equity | $6,009,847 | $4,657,828 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common Stock, par value per share | $0.00 | $0.00 |
Common Stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, shares outstanding | 317,769,000 | 319,564,000 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $1,732,572 | $1,783,035 | $2,064,475 |
Cost of sales | 546,736 | 541,523 | 610,329 |
Gross margin | 1,185,836 | 1,241,512 | 1,454,146 |
Research and development expense | 385,185 | 359,568 | 324,150 |
Selling, general, and administrative expense | 320,068 | 289,854 | 279,217 |
Amortization of acquisition-related intangible assets | 4,824 | 853 | 1,583 |
Compensation expense (benefit) - deferred compensation plan | 10,605 | 7,055 | -1,964 |
(Gain) loss on deferred compensation plan securities | -10,605 | -7,055 | 1,964 |
Interest income and other | -11,553 | -8,388 | -3,544 |
(Gain)/ loss reclassified from other comprehensive income | -153 | -268 | 18 |
Interest expense | 16,637 | 7,976 | 3,730 |
Income before income taxes | 470,828 | 591,917 | 848,992 |
Income tax expense | 30,763 | 35,110 | 78,281 |
Net income | 440,065 | 556,807 | 770,711 |
Unrealized (loss)/ gain on investments: | ' | ' | ' |
Unrealized holding (loss)/ gain on investments arising during period, net of tax of ($1), $114 and ($17) | -33,424 | 5,839 | -149 |
Less: Reclassification adjustments for (gain)/ loss on investments included in net income, net of tax of $23, $25 and ($2) | -130 | -114 | 16 |
Total other comprehensive income, unrealized (loss)/gain on investments | -33,554 | 5,725 | -133 |
Unrealized gain on derivatives: | ' | ' | ' |
Unrealized gain on derivatives arising during period, net of tax of $45 | 0 | 84 | 0 |
Less: Reclassification adjustments for gain on derivatives included in net income, net of tax of $45 | 0 | -84 | 0 |
Total other comprehensive income, unrealized gain on derivatives | 0 | 0 | 0 |
Other comprehensive (loss)/ income | -33,554 | 5,725 | -133 |
Comprehensive income | $406,511 | $562,532 | $770,578 |
Net income per share (in dollars per share): | ' | ' | ' |
Basic (in dollars per share) | $1.37 | $1.74 | $2.39 |
Diluted (in dollars per share) | $1.36 | $1.72 | $2.35 |
Shares used in computing per share amounts (in shares): | ' | ' | ' |
Basic (in shares) | 320,195 | 320,830 | 321,892 |
Diluted (in shares) | 323,018 | 324,497 | 327,606 |
Dividends per common share | $0.50 | $0.36 | $0.28 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Tax on unrealized holding gain/(loss) on investments arising during period | ($1) | $114 | ($17) |
Tax on reclassification adjustments for (gain)/loss on investments included in net income | 23 | 25 | -2 |
Tax on unrealized gain (loss) on derivatives arising during the period | ' | 45 | ' |
Tax on reclassification adjustments for gain on derivatives included in net income | ' | $45 | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net income | $440,065 | $556,807 | $770,711 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 47,225 | 36,009 | 30,344 |
Amortization of acquisition-related intangible assets | 4,824 | 853 | 1,583 |
Amortization of debt discount and debt issuance costs | 1,457 | 648 | 0 |
Stock-based compensation | 96,624 | 93,586 | 82,750 |
Net gain on sale of available-for-sale securities | -153 | 0 | 0 |
Amortization of investment discount/premium | 3,407 | 0 | 0 |
Deferred income tax expense | 3,581 | 8,824 | 15,657 |
Tax effect of employee stock plans | 7,009 | 9,811 | 16,162 |
Excess tax benefit from employee stock plans | -4,716 | -16,278 | -17,307 |
Changes in assets and liabilities, net of the effects of acquisitions: | ' | ' | ' |
Accounts receivable, net | -157,842 | -91,435 | 131,341 |
Inventories | -7,933 | -30,442 | 24,245 |
Other assets | -1,309 | -3,698 | 54,661 |
Accounts payable and other liabilities | 9,414 | -50,566 | -32,534 |
Deferred income and allowances on sales to distributors | 139,002 | 66,117 | -148,836 |
Income taxes payable | 14,440 | 8,576 | 31,116 |
Deferred compensation plan obligations | -4,887 | -1,598 | -293 |
Net cash provided by operating activities | 590,208 | 587,214 | 959,600 |
Cash Flows from Investing Activities: | ' | ' | ' |
Purchases of property and equipment | -42,558 | -60,913 | -31,812 |
Proceeds from sales of deferred compensation plan securities, net | 4,887 | 1,598 | 293 |
Purchases of available-for-sale securities | -1,347,626 | -921,430 | -164,408 |
Proceeds from sale of available-for-sale securities | 136,791 | 105,411 | 11,903 |
Proceeds from maturities of available-for-sale securities | 178,221 | 115,373 | 13,100 |
Acquisitions, net of cash acquired | -145,321 | 0 | 0 |
Purchases of intangible assets | -13,465 | -2,280 | 0 |
Purchase of other investments | -7,441 | -4,935 | 0 |
Net cash used in investing activities | -1,236,512 | -767,176 | -170,924 |
Cash Flows from Financing Activities: | ' | ' | ' |
Proceeds from issuance of common stock through stock plans | 58,220 | 49,665 | 119,989 |
Shares withheld for employee taxes | -28,272 | -31,472 | -32,152 |
Payment of dividends to stockholders | -160,377 | -115,514 | -90,060 |
Payment of debt assumed in acquisitions | -22,000 | 0 | 0 |
Proceeds from issuance of long-term debt | 991,786 | 500,000 | 0 |
Repayment of credit facility | 0 | -500,000 | 0 |
Long-term debt and credit facility issuance costs | -4,143 | -5,244 | 0 |
Repurchases of common stock | -201,095 | -229,057 | -197,023 |
Excess tax benefit from employee stock plans | 4,716 | 16,278 | 17,307 |
Net cash provided by (used in) financing activities | 638,835 | -315,344 | -181,939 |
Net (decrease) increase in cash and cash equivalents | -7,469 | -495,306 | 606,737 |
Cash and cash equivalents at beginning of period | 2,876,627 | 3,371,933 | 2,765,196 |
Cash and cash equivalents at end of period | 2,869,158 | 2,876,627 | 3,371,933 |
Supplemental cash flow information: | ' | ' | ' |
Income taxes paid, net | 16,299 | 9,797 | 9,856 |
Interest paid | $10,865 | $6,898 | $3,704 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholdersb Equity (USD $) | Total | Common Stock and Capital In Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive (Loss)/ Income |
In Thousands, unless otherwise specified | ||||
Beginning balance at Dec. 31, 2010 | $2,323,652 | $909,308 | $1,414,344 | $0 |
Beginning balance (shares) at Dec. 31, 2010 | ' | 319,494 | ' | ' |
Components of comprehensive Income: | ' | ' | ' | ' |
Net income | 770,711 | ' | 770,711 | ' |
Change in net unrealized gain (loss) on available-for-sale securites, net of tax benefit | -133 | ' | ' | -133 |
Comprehensive income | 770,578 | ' | ' | ' |
Issuance of common stock through employee stock plans, net (shares) | ' | 8,146 | ' | ' |
Issuance of common stock through employee stock plans, net | 119,989 | 119,989 | ' | ' |
Restricted stock withholding (shares) | ' | -786 | ' | ' |
Restricted stock withholding | -32,152 | -10,936 | -21,216 | ' |
Repurchases of common stock (shares) | ' | -4,800 | ' | ' |
Repurchases of common stock | -197,023 | -66,199 | -130,824 | ' |
Stock-based compensation expense | 82,750 | 82,750 | ' | ' |
Tax effect of employee stock plans | 16,162 | 16,162 | ' | ' |
Dividends paid | -90,060 | ' | -90,060 | ' |
Ending balance at Dec. 31, 2011 | 2,993,896 | 1,051,074 | 1,942,955 | -133 |
Ending balance (shares) at Dec. 31, 2011 | ' | 322,054 | ' | ' |
Components of comprehensive Income: | ' | ' | ' | ' |
Net income | 556,807 | ' | 556,807 | ' |
Change in net unrealized gain (loss) on available-for-sale securites, net of tax benefit | 5,725 | ' | ' | 5,725 |
Comprehensive income | 562,532 | ' | ' | ' |
Issuance of common stock through employee stock plans, net (shares) | ' | 5,302 | ' | ' |
Issuance of common stock through employee stock plans, net | 49,665 | 49,665 | ' | ' |
Restricted stock withholding (shares) | ' | -871 | ' | ' |
Restricted stock withholding | -31,472 | -9,796 | -21,676 | ' |
Repurchases of common stock (shares) | -6,900 | -6,921 | ' | ' |
Repurchases of common stock | -229,057 | -71,465 | -157,592 | ' |
Stock-based compensation expense | 93,586 | 93,586 | ' | ' |
Tax effect of employee stock plans | 9,811 | 9,811 | ' | ' |
Dividends paid | -115,514 | ' | -115,514 | ' |
Ending balance at Dec. 31, 2012 | 3,333,447 | 1,122,875 | 2,204,980 | 5,592 |
Ending balance (shares) at Dec. 31, 2012 | 319,564 | 319,564 | ' | ' |
Components of comprehensive Income: | ' | ' | ' | ' |
Net income | 440,065 | ' | 440,065 | ' |
Change in net unrealized gain (loss) on available-for-sale securites, net of tax benefit | -33,554 | ' | ' | -33,554 |
Comprehensive income | 406,511 | ' | ' | ' |
Issuance of common stock through employee stock plans, net (shares) | ' | 5,242 | ' | ' |
Issuance of common stock through employee stock plans, net | 58,220 | 58,220 | ' | ' |
Restricted stock withholding (shares) | ' | -817 | ' | ' |
Restricted stock withholding | -28,272 | -8,358 | -19,914 | ' |
Repurchases of common stock (shares) | -6,200 | -6,220 | ' | ' |
Repurchases of common stock | -201,095 | -59,226 | -141,869 | ' |
Stock-based compensation expense | 96,624 | 96,624 | ' | ' |
Tax effect of employee stock plans | 7,009 | 7,009 | ' | ' |
Dividends paid | -160,377 | ' | -160,377 | ' |
Ending balance at Dec. 31, 2013 | $3,512,067 | $1,217,144 | $2,322,885 | ($27,962) |
Ending balance (shares) at Dec. 31, 2013 | 317,769 | 317,769 | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Accumulative tax on unrealized loss on investments | $24 | $74 | $17 |
The_Company
The Company | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
The Company | ' |
The Company | |
Altera Corporation was founded in 1983 and reincorporated in the State of Delaware in 1997. We design and sell high-performance, high-density programmable logic devices ("PLDs"), HardCopy application-specific integrated circuit ("ASIC") devices, power system-on-chip devices ("PowerSoCs"), pre-defined design building blocks known as intellectual property ("IP") cores, and associated development tools. Our PLDs, which consist of field-programmable gate arrays ("FPGAs") and complex programmable logic devices ("CPLDs") are semiconductor integrated circuits that are manufactured as standard chips that our customers program to perform desired logic functions within their electronic systems. With our HardCopy devices we offer our customers a migration path from a PLD to a low-cost, high-volume, non-programmable implementation of their designs. Our customers can license IP cores from us for implementation of standard functions in their PLD designs. Customers develop, compile, and verify their PLD designs, and then program their designs into our PLDs using our proprietary development software, which operates on personal computers and engineering workstations. Our products serve a wide range of customers within the Telecom and Wireless, Industrial Automation, Military and Automotive, Networking, Computer and Storage and Other vertical markets. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Note 2: Significant Accounting Policies | |
BASIS OF PRESENTATION | The consolidated financial statements include our accounts as well as those of our wholly-owned subsidiaries after elimination of all significant inter-company balances and transactions. | |
Certain prior year amounts in the consolidated financial statements and the notes thereto have been reclassified to conform to the current year presentation. These reclassifications did not affect the prior period total assets, total liabilities, stockholders' equity, net income or net cash provided by operating activities. | |
USE OF ESTIMATES | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |
CASH EQUIVALENTS AND INVESTMENTS | Cash equivalents consist of highly liquid investments with a maturity of three months or less from the date of original purchase. As of December 31, 2013 and 2012, our cash equivalents consisted of money market funds, corporate bond securities, United States ("U.S.") agency securities and U.S. treasury securities. | |
As of December 31, 2013, our short-term investments consisted of U.S. agency securities, U.S. treasury securities, non-U.S. government securities, corporate bond securities and municipal bonds with original maturities greater than three months and remaining maturities less than one year from the balance sheet date. Long-term investments consist of U.S. agency securities, U.S. treasury securities, non-U.S. government securities, corporate debt securities and municipal bonds with remaining maturities greater than one year. | |
Management determines the appropriate classification of investments at the time of purchase and re-evaluates the designations as of each balance sheet date. As of December 31, 2013, all investments in our portfolio, other than those associated with our deferred compensation plan, were classified as available-for-sale. Available-for-sale investments are carried at their fair value based on quoted market prices as of the balance sheet date. Realized gains or losses are determined on the specific identification method and are reflected in Interest income and other in our consolidated statements of comprehensive income. Net unrealized gains or losses are recorded directly in stockholders’ equity on an after-tax basis. Those unrealized losses that are deemed to be other than temporary, of which there were none at December 31, 2013 and 2012, are reflected in Interest income and other. Investments classified as long-term represent funds that are deemed to be in excess of our estimated operating requirements and have remaining maturities exceeding twelve months as of the balance sheet date. | |
DEFERRED COMPENSATION PLAN - MARKETABLE SECURITIES | We allow our U.S.-based officers and director-level employees to defer a portion of their compensation under the Altera Corporation Non-Qualified Deferred Compensation Plan (the “NQDC Plan”). The investments held in the NQDC Plan consist of publicly traded equity securities, mutual funds and fixed income securities. We account for these investments as trading securities with gains or losses reported as (Gain) loss on deferred compensation plan securities in our consolidated statements of comprehensive income. | |
DEFERRED COMPENSATION PLAN - RESTRICTED CASH EQUIVALENTS | As of December 31, 2013 and 2012, the cash equivalents held in the NQDC Plan consisted of money market funds and were classified as restricted cash equivalents due to legal restrictions associated with the trust held under the Plan. | |
INVENTORIES | Inventories are recorded at the lower of actual cost (approximated by standard cost) determined on a first-in-first-out basis or market. We establish provisions for inventory if it is in excess of projected customer demand, and the creation of such provisions results in a write-down of inventory to net realizable value and a charge to cost of sales. | |
PROPERTY AND EQUIPMENT | Property and equipment are carried at cost less accumulated depreciation and amortization. Cost includes purchase cost, applicable taxes, freight, and installation costs incurred in the acquisition of any assets that require a period of time to make it ready for use. In addition, we capitalize the cost of major replacements, improvements, and betterments, while we expense normal repairs and maintenance. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three to seven years are used for equipment and office furniture, up to forty years for buildings, and fifty years for land rights. Leasehold improvements and assets recorded under capital leases are amortized over the shorter of the remaining lease term or the estimated useful life of the asset. Property and equipment also includes costs related to the development of internal use software. | |
BUSINESS COMBINATIONS AND INTANGIBLE ASSETS | Amounts paid for acquisitions are allocated to the tangible assets acquired and liabilities assumed based on their estimated fair value at the date of acquisition. We then allocate the purchase price in excess of net tangible assets acquired to identifiable intangible assets. The fair value of identifiable intangible assets is based on detailed valuations that use information and assumptions provided by management. We allocate any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill. Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs, including advisory, legal, accounting, valuation and other costs, are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. We evaluate the remaining useful life of intangible assets on a periodic basis to determine whether events and circumstances warrant a revision to the remaining useful life. If the estimate of an intangible asset’s remaining useful life is changed, we amortize the remaining carrying value of the intangible asset prospectively over the revised remaining useful life. | |
LONG-LIVED ASSETS INCLUDING GOODWILL AND ACQUISITION-RELATED INTANGIBLE ASSET IMPAIRMENT | We perform reviews of property, plant and equipment, and certain identifiable intangibles, excluding goodwill, to determine if facts and circumstances indicate that the useful life is shorter than what we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess the recoverability of the long-lived assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. In the event such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair values based on the expected discounted future cash flows attributable to the assets or based on appraisals. Impairment losses, if any, are based on the excess of the carrying amount over the fair value of those assets. | |
We do not amortize goodwill and intangible assets with indefinite useful lives, rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. We perform our goodwill and intangible asset impairment tests annually during the fourth quarter unless a triggering event would require an expedited analysis. | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | We define fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. This is sometimes referred to as an "exit price". As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability, also taking into consideration the principal or most advantageous market in which market participants would transact and the market based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk and credit risk. We apply the following fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |
Level 1 - Observable inputs such as quoted prices in active markets | |
Level 2 - Inputs other than the quoted prices in active markets that are observable either directly or indirectly | |
Level 3 - Unobservable inputs in which there is little or no market data, which require us to develop our own assumptions | |
This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. On a recurring basis, we measure certain financial assets and liabilities at fair value, which consist of our cash equivalents and marketable securities. | |
Our cash equivalents and investment securities are classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The types of instruments valued based on quoted market prices in active markets include money market securities, exchange traded stocks and open-end mutual funds. Such instruments are generally classified within Level 1 of the fair value hierarchy. | |
The types of instruments valued based on other observable inputs include bank commercial deposits, corporate commercial paper and municipal obligations. Such instruments are generally classified within Level 2 of the fair value hierarchy. Level 2 pricing is provided by third party sources of market information obtained through our investment advisors, and this market information consists of comparable pricing of other securities as the Level 2 securities we hold are not actively traded and have fewer observable transactions. We do not adjust for or apply any additional assumptions or estimates to the pricing information we receive from our advisors. | |
We had no transfers between Level 1 and Level 2 during the years ended December 31, 2013 or December 31, 2012. | |
For certain of our financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued liabilities, the carrying value approximates fair value due to their short maturities. | |
CONCENTRATIONS OF CREDIT RISK AND KEY SUPPLIERS | Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, cash equivalents, and accounts receivable. | |
We place our cash and cash equivalents in a variety of financial instruments and, by policy, limit the amount of credit exposure through diversification and by restricting our investments to highly rated investment-grade securities. | |
We sell our products to distributors and original equipment manufacturers (“OEMs”) throughout the world. We attempt to mitigate the concentration of credit risk in our trade receivables through a credit evaluation process, collection terms and by having distributor sales to diverse end customers. Net sales are the sum of our own direct sales to OEMs plus our distributors' resale of Altera products. We rely heavily on two distributors and one OEM to generate a significant portion of our sales. | |
We currently depend upon Taiwan Semiconductor Manufacturing Company (“TSMC”) to manufacture our silicon wafers. We also depend on TSMC to improve process technologies in a timely manner and to enhance our product designs and cost structure. We have no formalized long-term commitment from TSMC. If market demand for silicon wafers suddenly exceeds market supply, our supply of silicon wafers can become limited quickly. A shortage in foundry manufacturing capacity could hinder our ability to meet demand for our products. Moreover, silicon wafers constitute more than half of our product cost. If we are unable to procure wafers at favorable prices, our gross margins will be adversely affected. | |
Independent subcontractors, located primarily in Asia, assemble and test our semiconductor products. Because we rely on independent subcontractors to perform these services, we cannot directly control our product delivery schedules or quality levels. Our future success also depends on the financial viability of our independent subcontractors. If the capital structures of our independent subcontractors weaken, we may experience product shortages, quality assurance problems, increased manufacturing costs, and/or supply chain disruption. | |
The economic, market, social, and political situations in countries where certain independent subcontractors are located are unpredictable, can be volatile, and can have a significant impact on our business because we may not be able to obtain product in a timely manner. Market and political conditions, including manufacturing capacity constraints, currency fluctuation, terrorism, political strife, war, labor disruption, and other factors, including natural or man-made disasters, adverse changes in tax laws, tariff, import or export quotas, power and water shortages, or interruption in air transportation in areas where our independent subcontractors are located also could have a severe negative impact on our operating capabilities. | |
REVENUE RECOGNITION | We sell the majority of our products to electronic components distributors who resell these products to OEMs, or their subcontract manufacturers. We also sell directly to certain OEMs. In most cases, sales to distributors are made under agreements allowing for subsequent price adjustments and returns, and we generally defer recognition of revenue until the products are resold by the distributor, at which time our final net sales price is fixed. At the time of shipment to distributors, we (1) record a trade receivable at the list selling price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered, (2) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor, and (3) record deferred revenue and deferred cost of sales in Deferred income and allowances on sales to distributors in the liability section of our consolidated balance sheets. | |
Deferred income effectively represents the gross margin on the sale to the distributor; however, the amount of gross margin we recognize in future periods will be less than the originally recorded deferred income as a result of negotiated price concessions. We sell the majority of our products to distributors worldwide at a list price. However, distributors resell our products to end customers at a very broad range of individually negotiated price points based on a variety of factors, including customer, product, quantity, geography and competitive differentiation. The majority of our distributors' resales are priced at a discount from list price. Under these circumstances, we remit back to the distributor a portion of its original purchase price after the resale transaction is completed and we validate the distributor's resale information, including end customer, device, quantity and price, against the distributor price concession that we have approved in advance. To receive price concessions, distributors must submit the price concession claims to Altera for approval within 60 days of the resale of the product to an end customer. Primarily because of the uncertainty related to the final price, we generally defer revenue recognition on sales to distributors until our products are sold by the distributor to the end customer, which is when our price is fixed or determinable. A substantial portion of Deferred income and allowances on sales to distributors balance represents a portion of distributors' original purchase price that will be credited back to the distributor in the future. The wide range and variability of negotiated price concessions granted to distributors does not allow us to accurately estimate the portion of the balance in Deferred income and allowances on sales to distributors that will be credited back to the distributors. Therefore, we do not reduce deferred income or accounts receivable by anticipated future price concessions; instead, price concessions are typically recorded against Deferred income and allowances on sales to distributors when incurred, which is generally at the time the distributor sells the product to an end customer. | |
Our distributors have certain rights under our contracts to return defective, overstocked, obsolete and discontinued products. Our stock rotation program generally allows distributors to return unsold product to Altera, subject to certain contract limits based on a percentage of sales occurring over various periods prior to the stock rotation. Products resold by the distributor to end customers are no longer eligible for return. In addition, we generally warrant our products against defects in material, workmanship and material non-conformance to our specifications. | |
Revenue from products sold directly to OEMs is recognized upon shipment provided that persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, there are no customer acceptance requirements, and there are no remaining significant obligations. We present any taxes assessed by a governmental authority that are both imposed on and concurrent with our sales on a net basis within cost of sales. We record reserves for OEM sales returns and allowances as a component of Accounts receivable, net, in the accompanying consolidated balance sheets. | |
IMPAIRMENT OF DEFERRED COST OF SALES | Our deferred cost of sales represents the products shipped from Altera to our distributors. We evaluate whether our deferred cost of sales has been impaired based on expected net cash flows to be received for the deferred item. In assessing the impairment of our deferred cost of sales, we use a lower of cost or market estimate of realizable value. We apply our inventory valuation procedures, including potential impairment due to excess or obsolescence, to Altera owned inventory and distributor owned inventory. Realization of the deferred cost occurs because we earn revenue in excess of the amount of costs deferred. | |
DERIVATIVE FINANCIAL INSTRUMENTS | We account for derivative instruments activities as either assets or liabilities in the statement of financial position and carry them at fair value. Derivatives that are not designated as cash flow hedges for accounting purposes are adjusted to fair value through earnings. We do not enter into foreign exchange transactions for trading or speculative purposes. We did not have any open derivative contracts as of December 31, 2013 or 2012. | |
INDEMNIFICATION AND PRODUCT WARRANTY | We indemnify certain customers, distributors, suppliers, and subcontractors for attorneys' fees and damages and costs awarded against these parties in certain circumstances in which our products are alleged to infringe third party intellectual property rights, including patents, trade secrets, trademarks, or copyrights. We cannot estimate the amount of potential future payments, if any, that we might be required to make as a result of these agreements. To date, we have not paid any claims nor have we been required to defend any action related to our indemnification obligations, and accordingly, we have not accrued any amounts for such indemnification obligations. However, we may record charges in the future as a result of these indemnification obligations. | |
We generally warrant our devices for one year against defects in materials, workmanship and material non-conformance to our specifications. We accrue for known warranty issues if a loss is probable and can be reasonably estimated, and accrue for estimated but unidentified issues based on historical activity. If there is a material increase in customer claims compared with our historical experience or if the costs of servicing warranty claims are greater than expected, we may record a charge against cost of sales. Warranty expense was not significant for any period presented in our consolidated statements of comprehensive income. | |
INCOME TAXES | Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been reflected in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax bases of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to reduce net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company determines whether it is more likely than not that a tax position will be sustained upon examination. The tax benefit of any tax position that meets the more-likely-than-not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the uncertainty. To the extent a full benefit is not expected to be realized on the uncertain tax position, an income tax liability is established. Interest and penalties on income tax obligations, including uncertain tax positions, are included in income tax expense. | |
The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions across our global operations. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from current estimates of the tax liabilities. If our estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities may result in income tax benefits being recognized in the period when it is determined that the liabilities are no longer necessary. A significant portion of these potential tax liabilities are recorded in non-current income taxes payable as payment is not expected within one year. | |
STOCK-BASED COMPENSATION PLANS | We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. We use the Black-Scholes option pricing model to determine the estimated fair value for certain awards. Stock-based compensation cost for restricted stock units ("RSU"s) with time-based vesting is measured based on the closing fair market value of our common stock on the date of the grant, reduced by the present value of the estimated expected future dividends, and then multiplied by the number of RSUs granted. Stock-based compensation cost for performance-based restricted stock units ("PRSU"s) granted with market conditions is measured using a Monte Carlo simulation model on the date of grant. | |
The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our consolidated statements of comprehensive income. For stock options and RSUs, the grant-date value, less estimated pre-vest forfeitures, is expensed on a straight-line basis over the vesting period. PRSUs are expensed using a graded vesting schedule. The vesting period for stock options and RSUs is generally four years, while the vesting period for PRSUs is generally three years. | |
FOREIGN CURRENCY REMEASUREMENT | The U.S. dollar is the functional currency for all of our foreign subsidiaries. The monetary assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at the exchange rate in effect at the balance sheet date. Revenue, expenses, gains or losses are remeasured at the average exchange rate for the period. Non-monetary assets and liabilities are reflected at historical exchange rates. The resultant remeasurement gains or losses are included in Interest income and other in the consolidated statements of comprehensive income. Such gains or losses are insignificant for all periods presented. | |
RESEARCH AND DEVELOPMENT EXPENSE | Research and development ("R&D") expense includes costs for compensation and benefits, development masks, prototype wafers, and depreciation and amortization. Research and development costs are charged to expense as incurred. | |
ADVERTISING EXPENSES | We expense advertising costs as incurred. Advertising expenses were $6.6 million, $7.4 million and $5.8 million in 2013, 2012 and 2011, respectively. | |
INCOME PER SHARE | We compute basic income per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, RSUs (including PRSUs), and employee stock purchase plan (“ESPP”) shares. Our application of the treasury stock method includes as assumed proceeds the average unamortized stock-based compensation expense for the period and the impact of the pro forma deferred tax benefit or cost associated with stock-based compensation expense. | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. This standard is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. We are currently assessing the potential impact of ASU No. 2013-11 on our consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This standard requires entities to present information about reclassification adjustments from accumulated other comprehensive income in the annual financial statements in a single note or on the face of the financial statements. Public companies will also have to provide this information in their interim financial statements. The new requirements are effective as of the beginning of a fiscal year that begins after December 15, 2012 and interim and annual periods thereafter. We early adopted this guidance in our fiscal year 2012 and it did not have a material impact on our consolidated financial statements. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
Acquisition | ' |
Acquisitions | |
During the year ended December 31, 2013, we completed two acquisitions (collectively the "2013 Acquisitions") qualifying as business combinations in exchange for aggregate net cash consideration of $145.3 million, net of cash acquired. Substantially all of the consideration was allocated to Goodwill and Acquisition-related intangible assets, net. For information on the goodwill arising from the 2013 Acquisitions, see Note 4: Goodwill and for information on the classification of intangible assets, see Note 5: Acquisition-Related Intangible Assets, Net. In connection with one of these acquisitions, we assumed debt of $22.0 million, which was paid off in full immediately following the closing of the acquisition. We have no outstanding debt as of December 31, 2013 relating to the 2013 Acquisitions. These 2013 Acquisitions, both individually and in the aggregate, were not significant to our consolidated results of operations. As of December 31, 2013, we had not yet finalized the valuation of the deferred tax assets in connection with these 2013 Acquisitions. The finalization of these amounts is not expected to have a material effect on our consolidated financial position. | |
In December 2010, we completed one acquisition (the "2010 Acquisition") qualifying as a business combination in exchange for cash consideration of $8.0 million, net of cash acquired. Substantially all of the consideration was allocated to Goodwill and Acquisition-related intangible assets, net. For information on the goodwill arising from the 2010 Acquisition, see Note 4: Goodwill and for information on the classification of intangible assets, see Note 5: Acquisition-Related Intangible Assets, Net. In connection with the 2010 Acquisition, we were required to pay future installments of $7.5 million to the company's former shareholder over a four-year period ending December 2014, contingent upon the continued employment of this individual by Altera. Approximately $1.9 million was recognized as compensation expense in our consolidated statements of comprehensive income for each of the years ended December 31, 2013, 2012 and 2011. | |
Goodwill
Goodwill | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Goodwill [Abstract] | ' | ||||
Goodwill | ' | ||||
Goodwill activity was as follows: | |||||
(In thousands) | 2013 | ||||
Beginning Balance | $ | 2,329 | |||
Additions due to acquisitions | 71,639 | ||||
Ending Balance | $ | 73,968 | |||
During the fourth quarter of 2013, we revised our estimate of goodwill acquired for one of our 2013 Acquisitions to reflect our updated assessment of our ability to utilize acquired net operating loss carryforwards. Utilization of the net operating loss carryforwards acquired may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), and similar state provisions. During the fourth quarter of 2013, we performed an Internal Revenue Code Section 382 study on the historical net operating loss carryforwards of the acquired entity as of the acquisition date. As a result, we revised our purchase price allocation, which resulted in a $17.3 million increase in our deferred tax asset balance for these historical net operating loss carryforwards with a corresponding decrease to Goodwill. | |||||
Goodwill is tested for impairment annually during the fourth quarter unless a triggering event would require an expedited analysis. In 2013, as the majority of our goodwill balance resulted from the 2013 Acquisitions, we performed a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In assessing the qualitative factors, we considered the impact of these key factors: change in industry and competitive environment, market capitalization, stock price, earnings multiples, changes in forecasted operating results and comparing actual results to projections, gross margin and cash flow from operating activities. As such, it was not necessary to perform the two-step goodwill impairment test at this time. Based on the impairment review performed during the fourth quarter of fiscal 2013, there was no impairment of Goodwill in fiscal 2013. Unless there are indicators of impairment, our next impairment review for Goodwill will be performed and completed in the fourth quarter of fiscal 2014. To date, no impairment indicators have been identified. |
AcquisitionRelated_Intangible_
Acquisition-Related Intangible Assets, Net (Notes) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Acquisition-Related Intangible Assets [Abstract] | ' | ||||||||||||||
Acquisition-Related Intangible Assets | ' | ||||||||||||||
Acquisition-Related Intangible Assets, Net | |||||||||||||||
Acquisition-related intangible assets, net were as follows: | |||||||||||||||
December 31, 2013 | |||||||||||||||
(In thousands) | Gross Assets | Accumulated Amortization | Net | Weighted-Average Amortization Period | |||||||||||
Developed technology | $ | 60,770 | $ | (4,445 | ) | $ | 56,325 | 9.4 years | |||||||
Customer relationships | 12,910 | (1,597 | ) | 11,313 | 6.8 years | ||||||||||
Trade name | 3,700 | (253 | ) | 3,447 | 8.9 years | ||||||||||
Non-competition agreements | 700 | (213 | ) | 487 | 2.0 years | ||||||||||
Other intangible assets | 930 | (752 | ) | 178 | 1.2 years | ||||||||||
Acquisition-related intangible assets, net subject to amortization | 79,010 | (7,260 | ) | 71,750 | |||||||||||
In-process research & development | 10,400 | — | 10,400 | ||||||||||||
Total acquisition-related intangible assets, net | $ | 89,410 | $ | (7,260 | ) | $ | 82,150 | ||||||||
December 31, 2012 | |||||||||||||||
(In thousands) | Gross Assets | Accumulated Amortization | Net | Weighted-Average Amortization Period | |||||||||||
Developed technology | $ | 5,670 | $ | (1,342 | ) | $ | 4,328 | 8.8 years | |||||||
Customer relationships | 910 | (364 | ) | 546 | 5.0 years | ||||||||||
Other intangible assets | 730 | (730 | ) | — | 1.0 year | ||||||||||
Acquisition-related intangible assets subject to amortization, net | 7,310 | (2,436 | ) | 4,874 | |||||||||||
Total acquisition-related intangible assets, net | $ | 7,310 | $ | (2,436 | ) | $ | 4,874 | ||||||||
In-process research & development ("IPR&D") assets represent the fair value of incomplete research and development projects that had not reached technological feasibility as of the date of acquisition. In 2013, we capitalized IPR&D of $28.1 million related to the 2013 Acquisitions. Initially, these assets are classified as indefinite-lived intangible assets that are not subject to amortization. IPR&D assets related to projects that have been completed are transfered to the developed technology intangible asset to begin amortization, while IPR&D assets related to abandoned projects are impaired and expensed to research and development expense in the consolidated statements of comprehensive income. Subsequent to the completion of the 2013 Acquisitions, we reclassified $17.7 million of IPR&D costs to developed technology upon finalization of one of the projects. No projects were abandoned. The remaining IPR&D projects that make up the intangible asset balance as of December 31, 2013 are expected to be completed in early 2014. | |||||||||||||||
Based on the carrying value of acquisition-related intangible assets, net as of December 31, 2013, the annual amortization expense for acquisition-related intangible assets, net is expected to be as follows: | |||||||||||||||
Fiscal Year | Amortization Expense | ||||||||||||||
(In thousands) | |||||||||||||||
2014 | $ | 9,168 | |||||||||||||
2015 | 8,956 | ||||||||||||||
2016 | 8,637 | ||||||||||||||
2017 | 8,462 | ||||||||||||||
Thereafter | 36,527 | ||||||||||||||
Total | $ | 71,750 | |||||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Marketable Securities | ||||||||||||||||||||||||||||||
The following tables summarize our cash and available-for-sale securities by significant investment category. | ||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | |||||||||||||||||||||||
Cash | $ | 71,880 | $ | — | $ | — | $ | 71,880 | $ | 71,880 | $ | — | $ | — | ||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||
Money market funds | 2,763,094 | — | — | 2,763,094 | 2,763,094 | — | — | |||||||||||||||||||||||
U.S. treasury securities | 1,604,450 | 15 | (28,298 | ) | 1,576,167 | 34,184 | 39,262 | 1,502,721 | ||||||||||||||||||||||
Subtotal | 4,367,544 | 15 | (28,298 | ) | 4,339,261 | 2,797,278 | 39,262 | 1,502,721 | ||||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||||
U.S. agency securities | 53,755 | 33 | (18 | ) | 53,770 | — | 26,999 | 26,771 | ||||||||||||||||||||||
Non-U.S. government securities | 18,352 | 5 | — | 18,357 | — | 9,306 | 9,051 | |||||||||||||||||||||||
Municipal bond | 2,603 | — | (7 | ) | 2,596 | — | 603 | 1,993 | ||||||||||||||||||||||
Corporate debt securities | 219,491 | 425 | (69 | ) | 219,847 | — | 65,317 | 154,530 | ||||||||||||||||||||||
Subtotal | 294,201 | 463 | (94 | ) | 294,570 | — | 102,225 | 192,345 | ||||||||||||||||||||||
Total | $ | 4,733,625 | $ | 478 | $ | (28,392 | ) | $ | 4,705,711 | $ | 2,869,158 | $ | 141,487 | $ | 1,695,066 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | |||||||||||||||||||||||
Cash | $ | 89,194 | $ | — | $ | — | $ | 89,194 | $ | 89,194 | $ | — | $ | — | ||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||
Money market funds | 2,739,904 | — | — | 2,739,904 | 2,739,904 | — | — | |||||||||||||||||||||||
U.S. treasury securities | 564,713 | 5,231 | (3 | ) | 569,941 | 33,519 | 22,493 | 513,929 | ||||||||||||||||||||||
Subtotal | 3,304,617 | 5,231 | (3 | ) | 3,309,845 | 2,773,423 | 22,493 | — | 513,929 | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||||
U.S. agency securities | 116,802 | 58 | (1 | ) | 116,859 | 11,799 | 53,438 | 51,622 | ||||||||||||||||||||||
Non-U.S. government securities | 11,644 | 10 | (2 | ) | 11,652 | — | 2,730 | 8,922 | ||||||||||||||||||||||
Municipal bond | 1,372 | 1 | — | 1,373 | — | 752 | 621 | |||||||||||||||||||||||
Corporate debt securities | 193,048 | 436 | (64 | ) | 193,420 | 2,211 | 61,545 | 129,664 | ||||||||||||||||||||||
Subtotal | 322,866 | 505 | (67 | ) | 323,304 | 14,010 | 118,465 | 190,829 | ||||||||||||||||||||||
Total | $ | 3,716,677 | $ | 5,736 | $ | (70 | ) | $ | 3,722,343 | $ | 2,876,627 | $ | 140,958 | $ | 704,758 | |||||||||||||||
We have made certain cost method investments of approximately $12.4 million. These investments are included within Other assets, net in our consolidated balance sheets. The investments are in privately held companies in which we have less than a 20% interest and no significant influence over the investee's operations. We report our cost method investments at cost, except when investments are found to be more than temporarily impaired after an impairment review. Factors considered during an impairment review include the investee’s revenue and earnings trends relative to predefined milestones and overall business prospects, the investee's ability to stay in business such as the investee's liquidity and debt ratios, and overall general market conditions in the investee's industry. Investments are considered impaired when the fair value is below the investment’s adjusted cost basis, and the impairment will be charged to the consolidated statements of comprehensive income. We performed such a review as of December 31, 2013 and determined that no impairment existed. | ||||||||||||||||||||||||||||||
The adjusted cost and estimated fair value of marketable debt securities (corporate debt securities, municipal bonds, U.S. and foreign government securities, and U.S. treasury securities) as of December 31, 2013, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. | ||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
(In thousands) | Adjusted Cost | Estimated Fair Value | ||||||||||||||||||||||||||||
Due in one year or less | $ | 175,584 | $ | 175,671 | ||||||||||||||||||||||||||
Due after one year through five years | 1,723,067 | 1,695,066 | ||||||||||||||||||||||||||||
$ | 1,898,651 | $ | 1,870,737 | |||||||||||||||||||||||||||
As of December 31, 2013, we had 137 or $1.6 billion out of our total available-for-sale securities investment portfolio that were in a continuous unrealized loss position for less than 12 months with a gross unrealized loss of $28.4 million. As of December 31, 2012, we had 91 or $118.7 million out of our total available-for-sale securities portfolio that were in a continuous unrealized loss position for less than 12 months with a gross unrealized loss of $0.1 million. | ||||||||||||||||||||||||||||||
We concluded that the declines in market value of our available-for-sale securities investment portfolio were temporary in nature and did not consider any of our investments to be other-than-temporarily impaired. In accordance with our investment policy, we place investments in highly-rated securities with high credit quality issuers, and limit the amount of credit exposure to any one issuer. We evaluate securities for other-than-temporary impairment on a quarterly basis. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer, and our intent and ability to hold the investment in order to allow for an anticipated recovery in fair value. Furthermore, the aggregate of individual unrealized losses that had been outstanding for twelve months or less was not significant as of December 31, 2013 and December 31, 2012. We neither intend to sell these investments nor conclude that it is more-likely-than-not that we will have to sell them until recovery of their carrying values. We also believe that we will be able to collect both principal and interest amounts due to us at maturity, given the high credit quality of these investments. |
Accounts_Receivable_Net_and_Si
Accounts Receivable, Net and Significant Customers | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | |||||||||
Accounts Receivable, Net and Significant Customers | ' | |||||||||
Accounts Receivable, Net and Significant Customers | ||||||||||
Account receivable, net was comprised of the following: | ||||||||||
(In thousands) | December 31, | December 31, | ||||||||
2013 | 2012 | |||||||||
Gross accounts receivable | $ | 483,628 | $ | 324,260 | ||||||
Allowance for doubtful accounts | (500 | ) | (500 | ) | ||||||
Allowance for sales returns | (96 | ) | (52 | ) | ||||||
Accounts receivable, net | $ | 483,032 | $ | 323,708 | ||||||
We determine the allowance requirement, on an account by account basis, by calculating an estimated financial risk for each OEM customer or distributor and taking into account other available information that indicates that receivable balances may not be fully collectible. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. | ||||||||||
We sell our products to OEMs and to electronic components distributors who resell these products to OEMs, or their subcontract manufacturers. Net sales by customer type and net sales to significant customers were as follows: | ||||||||||
(Percentage of Net Sales) | 2013 | 2012 | 2011 | |||||||
Sales to distributors | 77 | % | 71 | % | 73 | % | ||||
Sales to OEMs | 23 | % | 29 | % | 27 | % | ||||
100 | % | 100 | % | 100 | % | |||||
Significant Distributors(1): | ||||||||||
Arrow Electronics, Inc. (“Arrow”) | 41 | % | 40 | % | 39 | % | ||||
Macnica, Inc. (“Macnica”) | 23 | % | 21 | % | 21 | % | ||||
-1 | Except as presented above, no other distributor accounted for greater than 10% of our net sales for 2013, 2012 or 2011. | |||||||||
One OEM accounted for 11% of our net sales in 2013, 16% in 2012 and 13% in 2011. No other individual OEM accounted for more than 10% of our net sales for 2013, 2012 or 2011. | ||||||||||
As of December 31, 2013, accounts receivable from Arrow and Macnica individually accounted for approximately 26% and 55%, respectively, of our total accounts receivable. As of December 31, 2012, accounts receivable from Arrow and Macnica individually accounted for approximately 30% and 47%, respectively, of our total accounts receivable. No other distributor or OEM accounted for more than 10% of our accounts receivable as of December 31, 2013 or 2012. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories were comprised of the following: | |||||||||
(In thousands) | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Raw materials | $ | 8,390 | $ | 12,447 | |||||
Work in process | 104,755 | 88,643 | |||||||
Finished goods | 50,735 | 51,631 | |||||||
Total inventories | $ | 163,880 | $ | 152,721 | |||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and Equipment, Net | |||||||||
Property and equipment, net was comprised of the following: | |||||||||
(In thousands) | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Land and land rights | $ | 23,157 | $ | 23,157 | |||||
Buildings | 159,123 | 159,247 | |||||||
Equipment and software | 281,197 | 256,725 | |||||||
Office furniture and fixtures | 24,438 | 24,531 | |||||||
Leasehold improvements | 12,391 | 11,915 | |||||||
Construction in progress | 1,798 | 1,705 | |||||||
Property and equipment, at cost | 502,104 | 477,280 | |||||||
Accumulated depreciation and amortization | (297,962 | ) | (271,132 | ) | |||||
Property and equipment, net | $ | 204,142 | $ | 206,148 | |||||
Depreciation expense was $42.6 million in 2013, $32.9 million in 2012, and $28.9 million in 2011. Depreciation and amortization expense as presented in our consolidated statements of cash flows includes the above amounts, together with amortization expense on our non-acquisition related intangible assets. |
Deferred_Income_and_Allowances
Deferred Income and Allowances on Sales to Distributors | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Deferred Income and Allowances on Sales to Distributors | ' | ||||||||
Deferred Income and Allowances on Sales to Distributors | |||||||||
Deferred income and allowances on sales to distributors was comprised of the following components: | |||||||||
(In thousands) | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Deferred revenue on shipments to distributors | $ | 512,872 | $ | 363,641 | |||||
Deferred cost of sales on shipments to distributors | (33,809 | ) | (28,101 | ) | |||||
Deferred income on shipments to distributors | 479,063 | 335,540 | |||||||
Other deferred revenue (1) | 8,683 | 10,453 | |||||||
Total | $ | 487,746 | $ | 345,993 | |||||
-1 | Principally represents revenue deferred on our maintenance contracts, software and intellectual property licenses. | ||||||||
The Deferred income and allowances on sales to distributor activity was as follows: | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Balance at beginning of period | $ | 345,993 | $ | 279,876 | |||||
Deferred revenue recognized upon shipment to distributors | 5,870,096 | 5,517,540 | |||||||
Deferred costs of sales recognized upon shipments to distributors | (269,969 | ) | (238,256 | ) | |||||
Revenue recognized upon sell-through to end customers | (1,055,137 | ) | (1,023,465 | ) | |||||
Costs of sales recognized upon sell-through to end customers | 260,326 | 237,703 | |||||||
Earned distributor price concessions (1) | (4,575,430 | ) | (4,345,473 | ) | |||||
Returns | (88,058 | ) | (82,577 | ) | |||||
(Decrease)/ increase in other deferred revenue | (75 | ) | 645 | ||||||
Balance at end of period | $ | 487,746 | $ | 345,993 | |||||
-1 | Average aggregate price concessions typically range from 70% to 85% of our list price on an annual basis, depending upon the composition of our sales, volumes, and factors associated with the timing of shipments to distributors. | ||||||||
We sell the majority of our products to distributors worldwide at a list price. However, distributors resell our products to end customers at a very broad range of individually negotiated prices based on a variety of factors, including customer, product, quantity, geography and competitive differentiation. The majority of our distributors' sales to their customers are priced at a discount from our list price. Under these circumstances, we remit back to the distributor a portion of its original purchase price after the resale transaction is completed, and we validate the distributor's resale information, including end customer, device, quantity and price, against the distributor price concession that we have approved in advance. To receive a price concession, distributors must submit the price concession claims to us for approval within 60 days of the resale of the product to an end customer. It is our practice to apply these negotiated price discounts to future purchases, requiring the distributor to settle receivable balances, on a current basis, generally within 30 days, for amounts originally invoiced. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Accumulated Other Comprehensive (Loss)/ Income | |||||||||||||
The following table presents the components of, and the changes in, accumulated other comprehensive (loss)/ income, net of tax: | |||||||||||||
(In thousands) | December 31, | Other Comprehensive Loss | December 31, | ||||||||||
2012 | 2013 | ||||||||||||
Accumulated unrealized gains (losses) on available-for-sale securities, net of tax | $ | 5,592 | $ | (33,554 | ) | $ | (27,962 | ) | |||||
Accumulated other comprehensive (loss)/ income | $ | 5,592 | $ | (33,554 | ) | $ | (27,962 | ) | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||
Commitments and Contingencies | ' | |||||
Commitments and Contingencies | ||||||
OPERATING LEASE COMMITMENTS | We lease facilities and equipment under non-cancelable lease agreements expiring at various times, as presented below. The facility leases generally require us to pay property taxes, insurance, maintenance, and repair costs. Total rental expense under all operating leases was $10.1 million in 2013, $10.6 million in 2012 and $8.1 million in 2011, respectively. We have the option to extend or renew most of our leases, which may increase the future minimum lease commitments. Future minimum lease payments under all non-cancelable operating lease obligations as of December 31, 2013 are as follows: | ||||||
Year | Operating | |||||
(In thousands) | ||||||
2014 | $ | 8,187 | ||||
2015 | 5,228 | |||||
2016 | 3,400 | |||||
2017 | 2,967 | |||||
2018 | 2,509 | |||||
2019 and thereafter | 6,742 | |||||
Total | $ | 29,033 | ||||
PURCHASE OBLIGATIONS | We depend entirely upon subcontractors to manufacture our silicon wafers and provide assembly and test services. Due to lengthy subcontractor lead times, we must order these materials and services from these subcontractors well in advance, and we are obligated to pay for the materials and services once they are completed. As of December 31, 2013, we had approximately $158.2 million of outstanding purchase commitments to such subcontractors. We expect to receive and pay for these materials and services over the next six months. | ||||||
OTHER COMMITMENTS | In addition to operating lease obligations, we enter into a variety of agreements and financial commitments in the normal course of business. It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments pursuant to such agreements have not been material. We believe that any future payments required pursuant to such agreements would not be material to our financial condition or results of operations. | ||||||
LEGAL PROCEEDINGS | On December 8, 2010, Intellectual Ventures I LLC and Intellectual Ventures II LLC (“Intellectual Ventures”) filed a lawsuit in the United States District Court for the District of Delaware against Altera, Microsemi Corporation, and Lattice Semiconductor Corporation alleging that Altera infringes five patents. The complaint requests unspecified monetary damages including enhanced damages for willful infringement. In February 2011, Intellectual Ventures filed a First Amended Complaint adding Xilinx, Inc. as a defendant. In March 2011, Altera answered the complaint and asserted counterclaims against Intellectual Ventures for non-infringement and invalidity of the asserted patents. The defendants filed motions in the District of Delaware to transfer the case to the United States District Court for the Northern District of California and to stay the action pending re-examination proceedings in the United States Patent and Trademark Office. Intellectual Ventures opposed the motions. In January 2012, the United States District Court for the District of Delaware denied the defendants' motion to transfer the case to the Northern District of California, and in February 2012, the court denied the defendants' motion to stay. Three of the four defendants, including Altera, filed a writ of mandamus in the Court of Appeals for the Federal Circuit requesting that the case be transferred to the Northern District of California. In July 2012, the Court of Appeals for the Federal Circuit denied the writ of mandamus. In January 2013, Intellectual Ventures and Microsemi announced a settlement agreement, which included a dismissal of all claims against Microsemi. In March 2013, Intellectual Ventures and Lattice announced a settlement agreement, which included a dismissal of all claims against Lattice. In December 2013, Intellectual Ventures and Altera entered into a settlement agreement, which included a dismissal of all Intellectual Ventures’ claims against Altera and a dismissal of all Altera’s counterclaims against Intellectual Ventures. The resolution of this case did not have a material adverse impact on our consolidated results of operations. | ||||||
We file income tax returns with the Internal Revenue Service (“IRS”) and in various U.S. states and foreign jurisdictions. On December 8, 2011 and January 23, 2012, the IRS issued Statutory Notices of Deficiency (the “Notices”) determining, respectively, additional taxes for 2002 through 2004 of $19.8 million and additional taxes for 2005 through 2007 of $21.4 million, excluding interest. The IRS’s determinations relate primarily to inter-company transactions, computational adjustments to the R&D credit and reductions to the benefits of tax credit carry backs and carry forwards. We deposited $18.0 million as a cash bond with the IRS in 2008, and converted this amount to tax payments in March 2012. On March 6, 2012 and April 20, 2012, we filed petitions challenging the two Notices respectively, in the U.S. Tax Court. The petitions request redetermination of the deficiencies produced by the IRS’s adjustments. The IRS has filed responses to our petitions, in which the IRS conceded the R&D credit adjustment for 2004. The Tax Court has consolidated the two cases and a judge has been assigned. The federal statute of limitations for the 2002 and 2003 tax years has expired, and the ongoing Tax Court litigation concerns only the 2004 through 2007 years. | ||||||
On January 31, 2013, the IRS conceded one of the adjustments at issue in the litigation for the 2004 through 2007 tax years. The conceded adjustment related to certain inter-company services transactions. The concession only impacted our 2007 tax year. As a result of this concession, we recognized a tax and interest benefit of $6.8 million in 2013 due to the release of certain tax reserves. Altera and the IRS have filed cross motions for partial summary judgment on the largest adjustment still at issue, which is related to the treatment of stock-based compensation in an inter-company cost-sharing transaction. As part of the partial motion for summary judgment process, both sides filed briefs on May 28, 2013, July 25, 2013 and September 9, 2013. We expect to present additional legal arguments related to certain affirmative adjustments raised by Altera in the litigation. The parties filed a Joint Status Report addressing these affirmative adjustments with the Tax Court on February 5, 2014. We believe we have made adequate tax payments or accrued adequate amounts for our tax liabilities for 2004 through 2007 and that the outcome of the above matters will not have a material adverse effect on our consolidated operating results or financial position. | ||||||
On April 19, 2013, the IRS notified us that we would be audited for each of the 2010 and 2011 tax years. We believe we have made adequate tax payments or accrued adequate amounts for our tax liabilities for 2010 and 2011 and that the outcome of the audit will not have a material adverse effect on our consolidated operating results or financial position. |
Income_Per_Share
Income Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Income per Share | ' | ||||||||||||
Income per Share | |||||||||||||
A reconciliation of basic and diluted income per share is presented below: | |||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Basic: | |||||||||||||
Net income | $ | 440,065 | $ | 556,807 | $ | 770,711 | |||||||
Basic weighted shares outstanding | 320,195 | 320,830 | 321,892 | ||||||||||
Net income per share | $ | 1.37 | $ | 1.74 | $ | 2.39 | |||||||
Diluted: | |||||||||||||
Net income | $ | 440,065 | $ | 556,807 | $ | 770,711 | |||||||
Weighted shares outstanding | 320,195 | 320,830 | 321,892 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options, employee stock purchase plan shares, and restricted stock unit shares | 2,823 | 3,667 | 5,714 | ||||||||||
Diluted weighted shares outstanding | 323,018 | 324,497 | 327,606 | ||||||||||
Net income per share | $ | 1.36 | $ | 1.72 | $ | 2.35 | |||||||
In applying the treasury stock method, we excluded 2.0 million stock option shares and RSUs (including PRSUs) for 2013 because their effect was anti-dilutive. While these stock option shares and restricted stock units are currently anti-dilutive, they could be dilutive in the future. Anti-dilutive stock option shares totaled 1.8 million for each of 2012 and 2011. All restricted stock units outstanding as of December 31, 2012 and December 31, 2011 were included in our treasury stock method calculation. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||
Stockholders' Equity Note Disclosure | ' | |||||||
Stockholders' Equity | ||||||||
COMMON STOCK REPURCHASES | We repurchase shares under our stock purchase program announced on July 15, 1996, which has no specified expiration. No existing repurchase plans or programs have expired, nor have we decided to terminate any repurchase plans or programs prior to expiration. On August 28, 2013, we announced that our board of directors increased the share repurchase program authorization by an additional 30.0 million shares. Combined with the board’s previous authorization, there is a total of 233.0 million shares authorized for repurchase with approximately 36.8 million shares remaining for further repurchases under our stock repurchase program as of December 31, 2013. Since the inception of the stock purchase program through December 31, 2013, we have repurchased a total of 196.2 million shares of our common stock for an aggregate cost of $4.3 billion. All shares were retired upon acquisition and have been recorded as a reduction of Common stock, Capital in excess of par value and Retained Earnings, as applicable. | ||||||||
Common stock repurchase activity was as follows: | ||||||||
(In millions, except per share amounts) | 2013 | 2012 | ||||||
Shares repurchased | 6.2 | 6.9 | ||||||
Cost of shares repurchased | $ | 201.1 | $ | 229.1 | ||||
Average price per share | $ | 32.33 | $ | 33.1 | ||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
Our stock-based compensation plans include the 2005 Equity Incentive Plan (the “2005 Plan”) and the 1987 Employee Stock Purchase Plan (“ESPP”). | ||||||||||||||
2005 EQUITY INCENTIVE PLAN | Our equity incentive program is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The 2005 Plan provides stock-based incentive compensation (“awards”) to both our eligible employees and non-employee directors. Awards that may be granted under the 2005 Plan include non-qualified and incentive stock options, RSUs, PRSUs, restricted stock awards, stock appreciation rights, and stock bonus awards. To date, awards granted under the 2005 Plan consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the 2005 Plan vest over four years. Stock options granted under the 2005 Plan have a maximum contractual term of ten years. As of December 31, 2013, the 2005 Plan had a total of 28.1 million shares reserved for future issuance, of which 18.8 million shares were available for future grants. | ||||||||||||||
Historically, we used equity awards in the form of stock options as one of the means for recruiting and retaining highly skilled talent. RSUs and PRSUs are now the most frequently issued type of long-term equity-based award for eligible employees. | ||||||||||||||
We have issued PRSUs to a certain group of senior executives with vesting that is contingent on both market performance and continued service ("market-based PRSUs"). For market-based PRSUs issued in 2012 and 2013, the number of shares of Altera stock to be received at vesting will range from 0% to 200% of the target amount based on the percentage by which our total shareholder return ("TSR") exceeds or falls below the Philadelphia Semiconductor Index ("SOX") TSR during a 3-year measurement period. We estimate the fair value of market-based PRSUs using a Monte Carlo simulation model on the date of grant. The model incorporates assumptions for the risk-free interest rate, Altera and SOX price volatility, the correlation between Altera and the SOX index, and dividend yields. Compensation expense is recognized ratably over the 3-year measurement period. | ||||||||||||||
1987 EMPLOYEE STOCK PURCHASE PLAN | Our ESPP has two consecutive, overlapping twelve-month offering periods, with a new period commencing on the first trading day on or after May 1 and November 1 of each year and terminating on the last trading day on or before April 30 and October 31. Each twelve-month offering period generally includes two six-month purchase periods. The purchase price at which shares are sold under the ESPP is 85% of the lower of the fair market value of a share of our common stock on (1) the first day of the offering period, or (2) the last trading day of the purchase period. If the fair market value at the end of any purchase period is less than the fair market value at the beginning of the offering period, each participant is automatically withdrawn from the current offering period following the purchase of shares on the purchase date and is automatically re-enrolled in the immediately following offering period. | ||||||||||||||
As of December 31, 2013, 3.1 million shares were available for future issuance under the ESPP. Sales under the ESPP were 0.8 million shares of common stock at an average price of $26.88 per share for 2013, 0.7 million shares of common stock at an average price of $27.90 per share for 2012, and 0.7 million shares of common stock at an average price of $26.12 per share for 2011. | ||||||||||||||
VALUATION AND EXPENSE INFORMATION | Our stock-based compensation expense included in the consolidated statements of comprehensive income was as follows: | ||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||
Cost of sales | $ | 1,932 | $ | 1,872 | $ | 1,655 | ||||||||
Research and development expense | 42,515 | 41,652 | 36,410 | |||||||||||
Selling, general, and administrative expense | 52,177 | 50,062 | 44,685 | |||||||||||
Pre-tax stock-based compensation expense | 96,624 | 93,586 | 82,750 | |||||||||||
Income tax benefit | (25,432 | ) | (23,998 | ) | (20,278 | ) | ||||||||
Net stock-based compensation expense | $ | 71,192 | $ | 69,588 | $ | 62,472 | ||||||||
No stock-based compensation was capitalized during any period presented above. As of December 31, 2013, unrecognized stock-based compensation cost related to outstanding unvested stock options, RSUs, PRSUs and ESPP shares that are expected to vest was approximately $156.6 million. This unrecognized stock-based compensation cost is expected to be recognized over a weighted average period of approximately 2.3 years. To the extent the actual forfeiture rate is different from our estimate, stock-based compensation related to these awards will be different from our expectations. | ||||||||||||||
We settle employee stock option exercises, ESPP purchases, RSUs and PRSUs vesting with newly issued common shares. | ||||||||||||||
The assumptions used to estimate the fair value of the ESPP shares, and the stock options, RSUs and PRSUs granted under the 2005 Plan were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock options: | ||||||||||||||
Expected term (in years) | 6 | 6 | 5 | |||||||||||
Expected stock price volatility | 32.8 | % | 35.1 | % | 32.7 | % | ||||||||
Risk-free interest rate | 1.3 | % | 1.1 | % | 0.3 | % | ||||||||
Dividend yield | 1.5 | % | 0.8 | % | 0.6 | % | ||||||||
Weighted-average estimated fair value per share | $ | 9.35 | $ | 10.85 | $ | 12.92 | ||||||||
ESPP shares: | ||||||||||||||
Expected term (in years) | 0.7 | 1 | 0.8 | |||||||||||
Expected stock price volatility | 28.1 | % | 36.8 | % | 35.9 | % | ||||||||
Risk-free interest rate | 0.1 | % | 0.2 | % | 0.1 | % | ||||||||
Dividend yield | 1.8 | % | 1.1 | % | 0.7 | % | ||||||||
Weighted-average estimated fair value per share | $ | 7.87 | $ | 9.61 | $ | 12.03 | ||||||||
RSUs: | ||||||||||||||
Risk-free interest rate | 0.3 | % | 0.3 | % | 0.6 | % | ||||||||
Dividend yield | 1.3 | % | 1 | % | 0.7 | % | ||||||||
Weighted-average estimated fair value per share | $ | 32.19 | $ | 32.67 | $ | 41.3 | ||||||||
PRSUs: | ||||||||||||||
Expected Altera stock price volatility | 34.7 | % | 34.9 | % | $ | — | ||||||||
Expected SOX stock price volatility | 27.1 | % | 28.9 | % | $ | — | ||||||||
Risk-free interest rate | 0.3 | % | 0.3 | % | $ | — | ||||||||
Dividend yield | 1.2 | % | 1.1 | % | $ | — | ||||||||
Weighted-average estimated fair value per share | $ | 33.03 | $ | 41.18 | $ | — | ||||||||
In connection with one of our 2013 Acquisitions, we assumed the acquired company's stock option plans for purposes of all unvested employee stock options that had been granted as of the acquisition date. We converted these unvested options to Altera shares and issued 55,931 shares of Altera stock options with a vesting period equal to the remaining vesting period of the assumed grants as of the acquisition date. These stock options are not included in the table above as the options were granted under a stock option plan other than the 2005 Plan, and the options were granted with a vesting period and certain Black-Scholes option pricing model assumptions that differ from the other non-acquisition related stock options granted during the year. The weighted average grant date fair value of these options is $24.42 per share. As of December 31, 2013, there are no shares reserved for future issuance under this stock plan. | ||||||||||||||
On May 6, 2013 and July 30, 2012, we granted 262,647 and 66,489 market-based PRSUs, respectively, to a group of senior executives. As of December 31, 2013, the majority of these market-based PRSUs are still outstanding, and no market-based PRSUs have vested. For market-based PRSU grants made on May 6, 2013 and July 30, 2012, the weighted average grant date fair value was $33.03 and $41.18, respectively. | ||||||||||||||
For stock options, the expected term represents the weighted average period from the date of grant to exercise, cancellation, or expiration. For ESPP shares, the expected term represents the average term from the first day of the offering period to the purchase date. | ||||||||||||||
Our expected stock price volatility assumption for stock options is estimated using a combination of implied volatility for publicly traded options on our stock with a term of one year or more and our historical stock price volatility. Our expected stock price volatility assumption for ESPP shares is estimated using a combination of implied volatility for publicly traded options on our stock with a term of six months and our historical stock price volatility. | ||||||||||||||
The interest rate used to value stock options and ESPP shares approximates the risk-free interest rate of a zero-coupon Treasury bond on the date of grant with a maturity date that approximates the expected term of the award. | ||||||||||||||
In addition, we apply an expected forfeiture rate when amortizing stock-based compensation expense. | ||||||||||||||
A summary of activity for our RSUs and PRSUs for 2013 and information regarding RSUs and PRSUs outstanding and expected to vest as of December 31, 2013 is as follows: | ||||||||||||||
(In thousands, except per share amounts and terms) | Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||
Shares | Grant-Date Fair Market Value | Remaining Contractual | Intrinsic | |||||||||||
Per Share | Term (in Years) | Value(1) | ||||||||||||
Outstanding, December 31, 2012 | 6,960 | $ | 34.03 | |||||||||||
Grants | 2,794 | $ | 33.21 | |||||||||||
Vested | (2,685 | ) | $ | 31.11 | ||||||||||
Forfeited | (677 | ) | $ | 35 | ||||||||||
Outstanding, December 31, 2013 | 6,392 | $ | 34.8 | 1.5 | $ | 207,818 | ||||||||
Vested and expected to vest, December 31, 2013 | 5,671 | $ | 34.8 | 1.4 | $ | 184,371 | ||||||||
-1 | Aggregate intrinsic value represents the closing price per share of our stock on December 31, 2013, multiplied by the number of RSUs and market-based PRSUs outstanding or vested and expected to vest as of December 31, 2013. | |||||||||||||
The total fair value of RSUs and PRSUs vested and expensed during 2013, 2012 and 2011 was $85.4 million, $81.0 million and $71.8 million, respectively. | ||||||||||||||
A summary of stock option activity for 2013 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2013 is as follows: | ||||||||||||||
(In thousands, except per share amounts and terms) | Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||
Shares | Exercise Price | Remaining Contractual | Intrinsic | |||||||||||
Per Share | Term (in Years) | Value(1) | ||||||||||||
Outstanding, December 31, 2012 | 5,163 | $ | 25.81 | |||||||||||
Grants | 94 | $ | 19.14 | |||||||||||
Exercises | (1,792 | ) | $ | 21.01 | ||||||||||
Forfeited/Cancelled/Expired | (19 | ) | $ | 28.61 | ||||||||||
Outstanding, December 31, 2013 | 3,446 | $ | 28.11 | 4.4 | $ | 24,076 | ||||||||
Exercisable, December 31, 2013 | 2,431 | $ | 24.74 | 3 | $ | 23,018 | ||||||||
Vested and expected to vest, December 31, 2013 | 3,347 | $ | 27.9 | 4.3 | $ | 23,982 | ||||||||
-1 | For those stock options with an exercise price below the closing price per share on December 31, 2013, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on December 31, 2013, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of December 31, 2013. | |||||||||||||
For 2013, 2012 and 2011, 1.8 million, 1.7 million and 4.8 million non-qualified stock option shares were exercised, respectively. The total intrinsic value of stock options exercised for 2013, 2012 and 2011 was $24.0 million, $30.6 million and $97.7 million, respectively. The aggregate intrinsic value represents the difference between the exercise price and the selling price received by option holders upon the exercise of stock options during the period. The total cash received from employees as a result of employee stock option exercises during 2013, 2012 and 2011 was $37.6 million, $31.2 million and $102.3 million, respectively. | ||||||||||||||
The total fair value of options vested and expensed during 2013, 2012 and 2011 was $5.3 million, $4.9 million and $4.7 million, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
Income tax expense consists of: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Current tax expense: | |||||||||||||
U.S. | $ | 21,869 | $ | 2,622 | $ | 21,618 | |||||||
State | 220 | 245 | 235 | ||||||||||
Foreign | 5,093 | 23,419 | 40,771 | ||||||||||
Total current tax expense | 27,182 | 26,286 | 62,624 | ||||||||||
Deferred taxes: | |||||||||||||
U.S. | 3,961 | 8,824 | 21,024 | ||||||||||
State | — | — | (22 | ) | |||||||||
Foreign | (380 | ) | — | (5,345 | ) | ||||||||
Total deferred tax expense | 3,581 | 8,824 | 15,657 | ||||||||||
Total income tax expense | $ | 30,763 | $ | 35,110 | $ | 78,281 | |||||||
Deferred income tax assets were as follows: | |||||||||||||
(In thousands) | December 31, | December 31, | |||||||||||
2013 | 2012 | ||||||||||||
Deferred income on sales to distributors | $ | 14,178 | $ | 14,246 | |||||||||
Deferred compensation | 24,596 | 24,664 | |||||||||||
Stock-based compensation | 17,568 | 16,923 | |||||||||||
Other accrued expenses and reserves | 32,419 | 33,821 | |||||||||||
Net operating loss carryforwards | 11,339 | — | |||||||||||
Tax credit carryforwards | 35,899 | 21,829 | |||||||||||
Gross deferred tax assets | 135,999 | 111,483 | |||||||||||
Valuation allowance | (24,498 | ) | (18,430 | ) | |||||||||
Deferred tax assets, net of valuation allowance | 111,501 | 93,053 | |||||||||||
Amortization of acquisition-related intangible assets | (9,536 | ) | (1,183 | ) | |||||||||
Depreciation and amortization | (13,732 | ) | (15,739 | ) | |||||||||
Net deferred tax assets | $ | 88,233 | $ | 76,131 | |||||||||
The American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013, extends the federal R&D tax credit retroactively for two years from January 1, 2012 through December 31, 2013. The federal R&D tax credit has not been extended beyond 2013. As of December 31, 2013, we had $6.9 million of federal R&D tax credit carryforwards. The federal R&D tax credit carryforwards will begin to expire in the year 2024. We also had $24.5 million of California R&D tax credit carryforwards. The California R&D tax credits can be carried forward indefinitely; however, we have provided a full valuation allowance for deferred tax assets related to the California R&D tax credits that are not expected to be realized. | |||||||||||||
As of December 31, 2013, we had $9.2 million and $24.6 million of U.S. federal and foreign net operating loss carryforwards, respectively, to offset our future taxable income. The U.S. federal net operating loss carryfowards were from one of our 2013 Acquisitions and will begin to expire in the year 2034, if not utilized. The foreign net operating loss carryforwards were from one of our 2013 Acquisitions and can be carried forward indefinitely. We expect both the U.S. federal and foreign net operating loss carryforwards to be fully realizable in the future. | |||||||||||||
Under the provisions of Section 382 of the Internal Revenue Code, a change of control may impose an annual limitation on the amount of the Company's net operating loss and tax credit carryforwards that can be used to reduce future tax liabilities. As a result of the acquired tax attributes, our tax attributes are subject to an annual limitation of approximately $0.9 million per year for federal purposes. | |||||||||||||
The valuation allowance of $24.5 million as of December 31, 2013 primarily relates to a California law change providing the option to elect the single sales factor apportionment method to attribute taxable income to California for tax years beginning on or after January 1, 2011. The single sales method became mandatory for tax years beginning on or after January 1, 2013. We expect that the income subject to tax in California will be lower than under prior tax law and therefore realization of our California deferred tax assets is no longer more likely than not to occur. | |||||||||||||
The provisions related to the tax accounting for stock-based compensation prohibit the recognition of a deferred tax asset for an excess benefit that has not yet been realized. As a result, we will only recognize an excess benefit from stock-based compensation in additional paid-in-capital if an incremental tax benefit is realized after all other tax attributes currently available to us have been utilized. In addition, we have elected to account for the indirect benefits of stock-based compensation such as the R&D tax credit through the consolidated statements of comprehensive income. | |||||||||||||
The items accounting for the difference between income taxes computed at the federal statutory rate and income tax expense are as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Tax expense at U.S. statutory rates | $ | 164,790 | $ | 207,171 | $ | 297,151 | |||||||
State taxes, net of federal benefit | 203 | 203 | 203 | ||||||||||
Foreign tax rate differential | (148,438 | ) | (165,572 | ) | (225,234 | ) | |||||||
Executive compensation deduction limitation | 2,217 | 2,346 | 3,237 | ||||||||||
Research and development tax credits | (28,538 | ) | (20,487 | ) | (16,649 | ) | |||||||
Interest on unrecognized gross tax benefits | 5,149 | (1,968 | ) | 7,520 | |||||||||
Deferred tax asset valuation allowance | 6,068 | 7,532 | 8,198 | ||||||||||
Foreign dividends | 27,707 | — | — | ||||||||||
Other, net | 1,605 | 5,885 | 3,855 | ||||||||||
Total income tax expense | $ | 30,763 | $ | 35,110 | $ | 78,281 | |||||||
During the fourth quarter of fiscal 2013 we recorded a deferred charge for the deferral of income tax expense on intercompany profits that resulted from the sale of our newly acquired intellectual property rights from an Altera U.S. entity to one of our foreign subsidiaries. The deferred charge is included in Other current assets and Other assets, net on our consolidated balance sheets. As of December 31, 2013, the deferred charge balance in Other current assets was $2.2 million, and $18.9 million in Other assets, net. The deferred charge will be amortized on a straight-line basis as a component of income tax expense over ten years, based on the economic life of the intellectual property and is not expected to have a material impact on our effective tax rate. | |||||||||||||
We file income tax returns with the IRS and in various U.S. states and foreign jurisdictions. On December 8, 2011 and January 23, 2012, the IRS issued Statutory Notices of Deficiency (the “Notices”) determining that additional taxes of $19.8 million for 2002 through 2004 and an additional $21.4 million were due for 2005 through 2007, excluding interest. The IRS’s determinations relate primarily to inter-company transactions, computational adjustments to the R&D credit, and reductions to the benefits of tax credit carry backs and carry forwards. We deposited $18.0 million as a cash bond with the IRS in 2008 and converted this amount to tax payments in March 2012. On March 6, 2012 and April 20, 2012, we filed petitions challenging the two Notices in the U.S. Tax Court. The petitions request redetermination of the deficiencies produced by the IRS’s adjustments. The IRS has filed responses to our petitions, in which the IRS conceded the R&D credit adjustment for 2004. The Tax Court has consolidated the two cases and a judge has been assigned. The federal statute of limitations for the 2002 and 2003 tax years has expired, and the ongoing Tax Court litigation concerns only the 2004 through 2007 years. | |||||||||||||
On January 31, 2013, the IRS conceded one of the adjustments at issue in the litigation for the 2004 through 2007 tax years. The conceded adjustment related to certain inter-company services transactions. The concession only impacted our 2007 tax year. As a result of this concession, we recognized a tax and interest benefit of $6.8 million in 2013 due to the release of certain tax reserves. Altera and the IRS have filed cross motions for partial summary judgment on the largest adjustment still at issue, which is related to the treatment of stock-based compensation in an inter-company cost-sharing transaction. As part of the partial motion for summary judgment process, both sides filed briefs on May 28, 2013, July 25, 2013 and September 9, 2013. We expect to present additional legal arguments related to certain affirmative adjustments raised by Altera in the litigation. The parties filed a Joint Status Report addressing these affirmative adjustments with the Tax Court on February 5, 2014. We believe we have made adequate tax payments or accrued adequate amounts for our tax liabilities for 2004 through 2007 and that the outcome of the above matters will not have a material adverse effect on our consolidated operating results or financial position. | |||||||||||||
On April 19, 2013, the IRS notified us that we would be audited for each of the 2010 and 2011 tax years. We believe we have made adequate tax payments or accrued adequate amounts for our tax liabilities for 2010 and 2011 and that the outcome of the audit will not have a material adverse effect on our consolidated operating results or financial position. | |||||||||||||
During the third quarter of 2013, we reversed $30.3 million of liabilities for uncertain tax positions upon the expiration of foreign and domestic statutes of limitation and related interest mostly relating to the expiration of federal statute of limitations for the 2008 and 2009 tax years. The resulting decrease in our effective tax rate in the third quarter of 2013 was substantially offset by $27.7 million of tax accrued on foreign dividends. | |||||||||||||
Other significant jurisdictions in which we are or may be subject to examination for fiscal years 2002 forward include China (including Hong Kong), Denmark, Ireland, Malaysia, Japan, Canada, United Kingdom and the state of California. We believe we have made adequate tax payments and/or accrued adequate amounts such that the outcome of these audits will have no material adverse effect on our consolidated operating results. Due to the potential resolution of various tax examinations, and the expiration of various statutes of limitations, it is possible that our gross unrecognized tax benefits may change within the next twelve months. However, given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. | |||||||||||||
The aggregate changes in the balance of gross unrecognized tax benefits for 2013, 2012 and 2011 were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Balance at beginning of year | $ | 296.4 | $ | 306.5 | $ | 263.3 | |||||||
Additions based on tax positions related to the current year | 67.3 | 45.1 | 51.1 | ||||||||||
Additions for tax positions of prior years | 2.7 | 4.8 | 5.7 | ||||||||||
Reductions for tax positions of prior years | (42.3 | ) | (60.0 | ) | (13.6 | ) | |||||||
Balance at end of year | $ | 324.1 | $ | 296.4 | $ | 306.5 | |||||||
As of December 31, 2013 and December 31, 2012, the total amount of unrecognized tax benefit that, if recognized, would impact the effective tax rate was $301.3 million and $275.9 million, respectively. These amounts are presented net of federal benefits for the deduction of interest and other deductible items. | |||||||||||||
Estimated interest and penalties related to unrecognized tax benefits are recognized in tax expense. We recognized a net expense of $0.1 million in 2013. The net expense of $0.1 million is primarily due to $3.9 million in interest and penalty expenses related to general unrecognized tax benefits, offset by the reversal of $3.8 million of interest and penalties associated with the reversal of uncertain tax positions resulting from the IRS conceding an adjustment for certain 2007 inter-company transactions in our 2004 through 2007 litigation, changes in estimates for certain foreign jurisdictions, and the expiration of foreign and domestic statutes of limitation. We recognized a net benefit of $6.0 million and a net expense of $4.8 million in 2012 and 2011, respectively. The balance of accrued and unpaid interest and penalties was $48.8 million as of December 31, 2013 and 2012. | |||||||||||||
In connection with one of our acquisitions in 2013, we are indemnified by the selling company for certain potential tax obligations arising prior to the acquisition. We have recognized a tax indemnification receivable of $6.5 million in Other assets, net in our consolidated balance sheets. We do not expect any significant effect on earnings or cash flows related to these potential tax obligations. | |||||||||||||
U.S. and foreign components of income before income taxes were: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 79,160 | $ | 26,216 | $ | 94,930 | |||||||
Foreign | 391,668 | 565,701 | 754,062 | ||||||||||
Income before income taxes | $ | 470,828 | $ | 591,917 | $ | 848,992 | |||||||
Aggregate unremitted earnings of our foreign subsidiaries were $3.1 billion as of December 31, 2013. These earnings, which reflect full provisions for foreign income taxes, are indefinitely invested in foreign operations. If these earnings were remitted to our U.S. entities, they would be subject to domestic and/or foreign taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. Determination of the amount of unrecognized deferred income tax liability related to these earnings is not practicable. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment and Geographic Information | ' | ||||||||||||
Segment and Geographic Information | |||||||||||||
We operate in a single industry segment comprised of the design, development, manufacture, and sale of PLDs and related software design tools. Our sales by major geographic area are based on the geographic location of the OEMs or the distributors who have purchased our products. The geographic locations of our distributors may be different from the geographic locations of our end customers. Long-lived assets include property and equipment, net, which were based on the physical location of the asset as of the end of each fiscal year. | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 288,936 | $ | 302,478 | $ | 365,549 | |||||||
Japan | 269,907 | 256,523 | 311,836 | ||||||||||
China | 503,127 | 582,344 | 688,304 | ||||||||||
Other | 670,602 | 641,690 | 698,786 | ||||||||||
Net sales from foreign countries | 1,443,636 | 1,480,557 | 1,698,926 | ||||||||||
Net sales in total | $ | 1,732,572 | $ | 1,783,035 | $ | 2,064,475 | |||||||
Property and equipment, net by country was as follows: | |||||||||||||
(In thousands) | December 31, | December 31, | |||||||||||
2013 | 2012 | ||||||||||||
U.S. | $ | 139,082 | $ | 141,153 | |||||||||
Malaysia | 55,509 | 55,755 | |||||||||||
Other | 9,551 | 9,240 | |||||||||||
Property and equipment, net in foreign countries | 65,060 | 64,995 | |||||||||||
Property and equipment, net in total | $ | 204,142 | $ | 206,148 | |||||||||
Emplyee_Benefits_Plans
Emplyee Benefits Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Employee Benefits Plans | ' | ||||||||||||
Employee Benefits Plans | |||||||||||||
ALTERA CORPORATION SAVINGS AND RETIREMENT PLAN | We provide a retirement savings option to our eligible U.S. employees through the Altera Corporation Savings and Retirement Plan (the "401(k) Plan”). As allowed under Section 401(k) of the Internal Revenue Code, the 401(k) Plan allows tax deferred salary deductions for eligible employees. Our Retirement Plans Committee administers the 401(k) Plan. Participants in the 401(k) Plan may make salary deferrals of up to 75% of their eligible compensation (when combining regular and catch-up contributions), limited by the maximum dollar amount allowed by the Internal Revenue Code. For every dollar deferred under the 401(k) Plan, we make a matching contribution equal to 100% of the salary deferred per pay period with a maximum of $4,500 per participant in each of 2013, 2012 and 2011. All matching contributions are immediately vested. | |||||||||||||
Participants who reach the age of fifty before the close of the 401(k) Plan year may be eligible to make catch-up salary deferral contributions, limited by the maximum dollar amount allowed by the Internal Revenue Code. Catch-up contributions are not eligible for matching contributions. Total matching contributions to the 401(k) Plan were $6.2 million, $5.8 million, and $5.4 million in 2013, 2012 and 2011, respectively, and were expensed as incurred. | |||||||||||||
ALTERA CORPORATION NON-QUALIFIED DEFERRED COMPENSATION PLAN | We allow our U.S.-based officers and director-level employees to defer a portion of their compensation under the Altera Corporation Non-Qualified Deferred Compensation Plan (“NQDC Plan”). Our Retirement Plans Committee administers the NQDC Plan. As of December 31, 2013, there were 122 participants in the NQDC Plan who self-direct their investments in the NQDC Plan, subject to certain limitations. In the event we become insolvent, the NQDC Plan assets are subject to the claims of our general creditors. Since the inception of the NQDC Plan, we have not made any contributions to the NQDC Plan and we have no commitments to do so in the future. There are no NQDC Plan provisions that provide for any guarantees or minimum return on investments. NQDC Plan participants are prohibited from investing NQDC Plan contributions in Altera common stock. The balance of the NQDC Plan assets and related obligations was $83.2 million and $77.4 million as of December 31, 2013 and December 31, 2012, respectively. | |||||||||||||
The following tables summarize the fair value of our deferred compensation plan assets by significant investment category: | |||||||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | |||||||||||
Deferred compensation plan assets: (1) | |||||||||||||
Level 1: | |||||||||||||
Restricted cash equivalents | $ | 16,699 | $ | 17,116 | |||||||||
Equity securities | 32,628 | 29,902 | |||||||||||
Mutual funds | 32,521 | 27,073 | |||||||||||
Subtotal | 81,848 | 74,091 | |||||||||||
Level 2: | |||||||||||||
Fixed income securities | 1,306 | 3,346 | |||||||||||
Total | $ | 83,154 | $ | 77,437 | |||||||||
(1) Included in Deferred compensation plan - marketable securities and Deferred compensation plan - restricted cash equivalents in the accompanying consolidated balance sheets as of December 31, 2013 and December 31, 2012. | |||||||||||||
Investment income or loss earned by the NQDC Plan is recorded as (Gain) loss on deferred compensation plan securities in our consolidated statements of comprehensive income. The investment (gain) loss also represents an (increase) decrease in the future payout to participants and is recorded as Compensation expense (benefit) - deferred compensation plan in our consolidated statements of comprehensive income. Compensation expense (benefit) associated with our NQDC Plan obligations is offset by (gain) loss from related securities. The net effect of investment income or loss and related compensation expense or benefit has no impact on our income before income taxes, net income, or cash balances. | |||||||||||||
(Gain) loss on deferred compensation plan securities from our NQDC plan assets for 2013, 2012 and 2011 was comprised of the following: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Gross realized gains from sale of trading securities | $ | 2,639 | $ | 1,530 | $ | 823 | |||||||
Gross realized losses from sale of trading securities | — | (5 | ) | — | |||||||||
Dividend and interest income | 876 | 1,483 | 808 | ||||||||||
Net unrealized holding gains (losses) | 7,090 | 4,047 | (3,595 | ) | |||||||||
(Gain) loss on deferred compensation plan securities | $ | 10,605 | $ | 7,055 | $ | (1,964 | ) | ||||||
OTHER EMPLOYEE BENEFIT PLANS We offer participation in a Service Award Program (“SAP”) to U.S. employees below the Vice President level and to non-U.S. employees. The SAP provides employees with one to four weeks of additional paid vacation upon their achievement of five, ten, fifteen, twenty and twenty-five year service anniversaries. The following table presents the total long-term and short-term liabilities for this program, which are included in Accrued compensation and related liabilities and Other non-current liabilities. | |||||||||||||
(In thousands) | December 31, | December 31, | |||||||||||
2013 | 2012 | ||||||||||||
Accrued compensation and related liabilities | $ | 2,564 | $ | 2,261 | |||||||||
Other non-current liabilities | 5,370 | 6,888 | |||||||||||
$ | 7,934 | $ | 9,149 | ||||||||||
Credit_Facility_and_LongTerm_D
Credit Facility and Long-Term Debt | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Credit Facility and Long-Term Debt | ' | |||||||||||||||||||||||
Credit Facility and Long-Term Debt | ||||||||||||||||||||||||
Credit Facility | ||||||||||||||||||||||||
On June 29, 2012, we entered into a five-year $250 million unsecured revolving credit facility (the "Facility"). Under certain circumstances, upon our request and with the consent of the lenders, the commitments under the Facility may be increased up to an additional $250 million. Borrowings under the Facility will bear interest at a base rate determined in accordance with the Facility, plus an applicable margin based upon the debt rating of our non-credit enhanced, senior unsecured long-term debt. In addition, we are obligated to pay a quarterly commitment fee, payable in arrears, based on the available commitments. This facility fee varies and is also determined based on our debt rating. The terms of the Facility require compliance with certain financial and non-financial covenants, which we have satisfied as of December 31, 2013. As of December 31, 2013, we have not borrowed any funds under the Facility. | ||||||||||||||||||||||||
Long-Term Debt | ||||||||||||||||||||||||
The carrying values and associated effective interest rates for our Long-term debt was comprised of the following: | ||||||||||||||||||||||||
(In thousands, except rates) | Effective Interest Rate | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
2013 Senior Notes due November 15, 2018 at 2.50% | 2.71% | $ | 596,920 | $ | — | |||||||||||||||||||
2013 Senior Notes due November 15, 2023 at 4.10% | 4.29% | 395,056 | — | |||||||||||||||||||||
2012 Senior Notes due May 15, 2017 at 1.75% | 1.94% | 499,490 | 500,000 | |||||||||||||||||||||
Total long-term debt | $ | 1,491,466 | $ | 500,000 | ||||||||||||||||||||
On October 29, 2013, we issued $600 million aggregate principal amount of 2.50% senior notes (the “2.50% Notes”) and $400 million aggregate principal amount of 4.10% senior notes (the “4.10% Notes”) for general corporate purposes, including stock repurchases. We received net proceeds of $991.8 million, after deduction of a discount of $8.2 million, and we capitalized direct debt issuance costs of $5.5 million from issuance of the 2.5% Notes and the 4.10% Notes. | ||||||||||||||||||||||||
In 2012, we issued $500 million aggregate principal amount of 1.75% senior notes (the "1.75% Notes") to repay our outstanding credit facility. We received net proceeds of $499.2 million, after deduction of a discount of $0.8 million, and we capitalized direct debt issuance costs of $3.7 million from issuance of the 1.75% Notes. | ||||||||||||||||||||||||
All three of our senior notes (the “Notes”) pay a fixed rate of interest semiannually on May 15 and November 15 of each year. The Notes are governed by a base and supplemental indenture between Altera and U.S. Bank National Association, as trustee. The Notes are unsecured and unsubordinated obligations, ranking equally in right of payment to all of our existing and future unsecured and unsubordinated indebtedness and senior in right of payment to any of our future indebtedness that is expressly subordinated to the Notes. We may redeem the Notes, in whole or in part, at any time and from time to time for cash at the redemption prices described in the indentures. | ||||||||||||||||||||||||
The direct debt issuance costs associated with the Notes are recorded in Other assets, net in our consolidated balance sheets and are being amortized to Interest expense in our consolidated statements of comprehensive income over the contractual term using the effective interest method. | ||||||||||||||||||||||||
The carrying values of the Notes are reflected in our consolidated balance sheets as follows: | ||||||||||||||||||||||||
2.50% Notes | 4.10% Notes | 1.75% Notes | ||||||||||||||||||||||
(In thousands) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||||
Principal amount | $ | 600,000 | $ | — | $ | 400,000 | $ | — | $ | 500,000 | $ | 500,000 | ||||||||||||
Unamortized discount | (3,080 | ) | — | (4,944 | ) | — | (510 | ) | — | |||||||||||||||
Net carrying value | $ | 596,920 | $ | — | $ | 395,056 | $ | — | $ | 499,490 | $ | 500,000 | ||||||||||||
Interest expense related to the Notes were included in Interest expense in the consolidated statements of comprehensive income as follows: | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||||||||||||
Contractual coupon interest | $ | 14,043 | $ | 5,682 | ||||||||||||||||||||
Amortization of debt issuance costs | 1,114 | 648 | ||||||||||||||||||||||
Amortization of debt discount | 343 | 102 | ||||||||||||||||||||||
Total interest expense related to the Notes | $ | 15,500 | $ | 6,432 | ||||||||||||||||||||
The other components of Interest expense in our consolidated statements of comprehensive income are interest expense incurred as part of the assumed debt in one of our 2013 Acquisitions, interest expense incurred as part of the former credit agreement dated August 31, 2007 which was paid in full in May 2012, bank service fees incurred in connection with our credit facility, and trustee service fees incurred in connection with the Notes. | ||||||||||||||||||||||||
As of December 31, 2013, future principal payments for the Notes were as follows: | ||||||||||||||||||||||||
Fiscal Year | Payable | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
2014 | $ | — | ||||||||||||||||||||||
2015 | — | |||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||
2017 | 500,000 | |||||||||||||||||||||||
2018 and thereafter | 1,000,000 | |||||||||||||||||||||||
Total | $ | 1,500,000 | ||||||||||||||||||||||
Our Notes are classified within Level 1 of the fair value hierarchy and the estimated fair value of the Notes is based on quoted market prices. The estimated fair value of the Notes is as follows: | ||||||||||||||||||||||||
2.50% Notes | 4.10% Notes | 1.75% Notes | ||||||||||||||||||||||
(In thousands) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||||
Estimated fair value | $ | 598,836 | $ | — | $ | 392,680 | $ | — | $ | 501,310 | $ | 512,200 | ||||||||||||
Declaration_of_Dividend_Subseq
Declaration of Dividend Subsequent to December 31, 2013 | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Declaration of Dividend Subsequent to December 31, 2013 | ' |
On January 20, 2014, our board of directors declared a cash dividend of $0.15 per common share payable on March 3, 2014 to stockholders of record on February 10, 2014. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
BASIS OF PRESENTATION | The consolidated financial statements include our accounts as well as those of our wholly-owned subsidiaries after elimination of all significant inter-company balances and transactions. | |
Use of Estimates | ' |
USE OF ESTIMATES | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |
Cash Equivalents | ' |
CASH EQUIVALENTS AND INVESTMENTS | Cash equivalents consist of highly liquid investments with a maturity of three months or less from the date of original purchase. As of December 31, 2013 and 2012, our cash equivalents consisted of money market funds, corporate bond securities, United States ("U.S.") agency securities and U.S. treasury securities. | |
Investment | ' |
As of December 31, 2013, our short-term investments consisted of U.S. agency securities, U.S. treasury securities, non-U.S. government securities, corporate bond securities and municipal bonds with original maturities greater than three months and remaining maturities less than one year from the balance sheet date. Long-term investments consist of U.S. agency securities, U.S. treasury securities, non-U.S. government securities, corporate debt securities and municipal bonds with remaining maturities greater than one year. | |
Management determines the appropriate classification of investments at the time of purchase and re-evaluates the designations as of each balance sheet date. As of December 31, 2013, all investments in our portfolio, other than those associated with our deferred compensation plan, were classified as available-for-sale. Available-for-sale investments are carried at their fair value based on quoted market prices as of the balance sheet date. Realized gains or losses are determined on the specific identification method and are reflected in Interest income and other in our consolidated statements of comprehensive income. Net unrealized gains or losses are recorded directly in stockholders’ equity on an after-tax basis. Those unrealized losses that are deemed to be other than temporary, of which there were none at December 31, 2013 and 2012, are reflected in Interest income and other. Investments classified as long-term represent funds that are deemed to be in excess of our estimated operating requirements and have remaining maturities exceeding twelve months as of the balance sheet date. | |
Deferred Compensation Plan - Marketable Securities | ' |
DEFERRED COMPENSATION PLAN - MARKETABLE SECURITIES | We allow our U.S.-based officers and director-level employees to defer a portion of their compensation under the Altera Corporation Non-Qualified Deferred Compensation Plan (the “NQDC Plan”). The investments held in the NQDC Plan consist of publicly traded equity securities, mutual funds and fixed income securities. We account for these investments as trading securities with gains or losses reported as (Gain) loss on deferred compensation plan securities in our consolidated statements of comprehensive income. | |
Deferred Compensation Plan - Restricted Cash Equivalents | ' |
DEFERRED COMPENSATION PLAN - RESTRICTED CASH EQUIVALENTS | As of December 31, 2013 and 2012, the cash equivalents held in the NQDC Plan consisted of money market funds and were classified as restricted cash equivalents due to legal restrictions associated with the trust held under the Plan. | |
Inventories | ' |
INVENTORIES | Inventories are recorded at the lower of actual cost (approximated by standard cost) determined on a first-in-first-out basis or market. We establish provisions for inventory if it is in excess of projected customer demand, and the creation of such provisions results in a write-down of inventory to net realizable value and a charge to cost of sales. | |
Property and Equipment | ' |
PROPERTY AND EQUIPMENT | Property and equipment are carried at cost less accumulated depreciation and amortization. Cost includes purchase cost, applicable taxes, freight, and installation costs incurred in the acquisition of any assets that require a period of time to make it ready for use. In addition, we capitalize the cost of major replacements, improvements, and betterments, while we expense normal repairs and maintenance. Depreciation and amortization are computed using the straight-line method. Estimated useful lives of three to seven years are used for equipment and office furniture, up to forty years for buildings, and fifty years for land rights. Leasehold improvements and assets recorded under capital leases are amortized over the shorter of the remaining lease term or the estimated useful life of the asset. Property and equipment also includes costs related to the development of internal use software. | |
Business Combinations and Intangible Assets | ' |
BUSINESS COMBINATIONS AND INTANGIBLE ASSETS | Amounts paid for acquisitions are allocated to the tangible assets acquired and liabilities assumed based on their estimated fair value at the date of acquisition. We then allocate the purchase price in excess of net tangible assets acquired to identifiable intangible assets. The fair value of identifiable intangible assets is based on detailed valuations that use information and assumptions provided by management. We allocate any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill. Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs, including advisory, legal, accounting, valuation and other costs, are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. We evaluate the remaining useful life of intangible assets on a periodic basis to determine whether events and circumstances warrant a revision to the remaining useful life. If the estimate of an intangible asset’s remaining useful life is changed, we amortize the remaining carrying value of the intangible asset prospectively over the revised remaining useful life. | |
Long-Lives Asset Including Goodwill and Acquisition-Related Intangible Asset Impairment | ' |
LONG-LIVED ASSETS INCLUDING GOODWILL AND ACQUISITION-RELATED INTANGIBLE ASSET IMPAIRMENT | We perform reviews of property, plant and equipment, and certain identifiable intangibles, excluding goodwill, to determine if facts and circumstances indicate that the useful life is shorter than what we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess the recoverability of the long-lived assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. In the event such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair values based on the expected discounted future cash flows attributable to the assets or based on appraisals. Impairment losses, if any, are based on the excess of the carrying amount over the fair value of those assets. | |
We do not amortize goodwill and intangible assets with indefinite useful lives, rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. We perform our goodwill and intangible asset impairment tests annually during the fourth quarter unless a triggering event would require an expedited analysis. | |
Fair Value of Financial Instruments | ' |
FAIR VALUE OF FINANCIAL INSTRUMENTS | We define fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. This is sometimes referred to as an "exit price". As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability, also taking into consideration the principal or most advantageous market in which market participants would transact and the market based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk and credit risk. We apply the following fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | |
Level 1 - Observable inputs such as quoted prices in active markets | |
Level 2 - Inputs other than the quoted prices in active markets that are observable either directly or indirectly | |
Level 3 - Unobservable inputs in which there is little or no market data, which require us to develop our own assumptions | |
This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. On a recurring basis, we measure certain financial assets and liabilities at fair value, which consist of our cash equivalents and marketable securities. | |
Our cash equivalents and investment securities are classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The types of instruments valued based on quoted market prices in active markets include money market securities, exchange traded stocks and open-end mutual funds. Such instruments are generally classified within Level 1 of the fair value hierarchy. | |
The types of instruments valued based on other observable inputs include bank commercial deposits, corporate commercial paper and municipal obligations. Such instruments are generally classified within Level 2 of the fair value hierarchy. Level 2 pricing is provided by third party sources of market information obtained through our investment advisors, and this market information consists of comparable pricing of other securities as the Level 2 securities we hold are not actively traded and have fewer observable transactions. We do not adjust for or apply any additional assumptions or estimates to the pricing information we receive from our advisors. | |
We had no transfers between Level 1 and Level 2 during the years ended December 31, 2013 or December 31, 2012. | |
For certain of our financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued liabilities, the carrying value approximates fair value due to their short maturities. | |
Concentration of Credit Risk and Key Suppliers | ' |
CONCENTRATIONS OF CREDIT RISK AND KEY SUPPLIERS | Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, cash equivalents, and accounts receivable. | |
We place our cash and cash equivalents in a variety of financial instruments and, by policy, limit the amount of credit exposure through diversification and by restricting our investments to highly rated investment-grade securities. | |
We sell our products to distributors and original equipment manufacturers (“OEMs”) throughout the world. We attempt to mitigate the concentration of credit risk in our trade receivables through a credit evaluation process, collection terms and by having distributor sales to diverse end customers. Net sales are the sum of our own direct sales to OEMs plus our distributors' resale of Altera products. We rely heavily on two distributors and one OEM to generate a significant portion of our sales. | |
We currently depend upon Taiwan Semiconductor Manufacturing Company (“TSMC”) to manufacture our silicon wafers. We also depend on TSMC to improve process technologies in a timely manner and to enhance our product designs and cost structure. We have no formalized long-term commitment from TSMC. If market demand for silicon wafers suddenly exceeds market supply, our supply of silicon wafers can become limited quickly. A shortage in foundry manufacturing capacity could hinder our ability to meet demand for our products. Moreover, silicon wafers constitute more than half of our product cost. If we are unable to procure wafers at favorable prices, our gross margins will be adversely affected. | |
Independent subcontractors, located primarily in Asia, assemble and test our semiconductor products. Because we rely on independent subcontractors to perform these services, we cannot directly control our product delivery schedules or quality levels. Our future success also depends on the financial viability of our independent subcontractors. If the capital structures of our independent subcontractors weaken, we may experience product shortages, quality assurance problems, increased manufacturing costs, and/or supply chain disruption. | |
The economic, market, social, and political situations in countries where certain independent subcontractors are located are unpredictable, can be volatile, and can have a significant impact on our business because we may not be able to obtain product in a timely manner. Market and political conditions, including manufacturing capacity constraints, currency fluctuation, terrorism, political strife, war, labor disruption, and other factors, including natural or man-made disasters, adverse changes in tax laws, tariff, import or export quotas, power and water shortages, or interruption in air transportation in areas where our independent subcontractors are located also could have a severe negative impact on our operating capabilities. | |
Revenue Recognition | ' |
REVENUE RECOGNITION | We sell the majority of our products to electronic components distributors who resell these products to OEMs, or their subcontract manufacturers. We also sell directly to certain OEMs. In most cases, sales to distributors are made under agreements allowing for subsequent price adjustments and returns, and we generally defer recognition of revenue until the products are resold by the distributor, at which time our final net sales price is fixed. At the time of shipment to distributors, we (1) record a trade receivable at the list selling price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered, (2) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor, and (3) record deferred revenue and deferred cost of sales in Deferred income and allowances on sales to distributors in the liability section of our consolidated balance sheets. | |
Deferred income effectively represents the gross margin on the sale to the distributor; however, the amount of gross margin we recognize in future periods will be less than the originally recorded deferred income as a result of negotiated price concessions. We sell the majority of our products to distributors worldwide at a list price. However, distributors resell our products to end customers at a very broad range of individually negotiated price points based on a variety of factors, including customer, product, quantity, geography and competitive differentiation. The majority of our distributors' resales are priced at a discount from list price. Under these circumstances, we remit back to the distributor a portion of its original purchase price after the resale transaction is completed and we validate the distributor's resale information, including end customer, device, quantity and price, against the distributor price concession that we have approved in advance. To receive price concessions, distributors must submit the price concession claims to Altera for approval within 60 days of the resale of the product to an end customer. Primarily because of the uncertainty related to the final price, we generally defer revenue recognition on sales to distributors until our products are sold by the distributor to the end customer, which is when our price is fixed or determinable. A substantial portion of Deferred income and allowances on sales to distributors balance represents a portion of distributors' original purchase price that will be credited back to the distributor in the future. The wide range and variability of negotiated price concessions granted to distributors does not allow us to accurately estimate the portion of the balance in Deferred income and allowances on sales to distributors that will be credited back to the distributors. Therefore, we do not reduce deferred income or accounts receivable by anticipated future price concessions; instead, price concessions are typically recorded against Deferred income and allowances on sales to distributors when incurred, which is generally at the time the distributor sells the product to an end customer. | |
Our distributors have certain rights under our contracts to return defective, overstocked, obsolete and discontinued products. Our stock rotation program generally allows distributors to return unsold product to Altera, subject to certain contract limits based on a percentage of sales occurring over various periods prior to the stock rotation. Products resold by the distributor to end customers are no longer eligible for return. In addition, we generally warrant our products against defects in material, workmanship and material non-conformance to our specifications. | |
Revenue from products sold directly to OEMs is recognized upon shipment provided that persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, there are no customer acceptance requirements, and there are no remaining significant obligations. We present any taxes assessed by a governmental authority that are both imposed on and concurrent with our sales on a net basis within cost of sales. We record reserves for OEM sales returns and allowances as a component of Accounts receivable, net, in the accompanying consolidated balance sheets. | |
Impairment of Deferred Cost of Sales | ' |
IMPAIRMENT OF DEFERRED COST OF SALES | Our deferred cost of sales represents the products shipped from Altera to our distributors. We evaluate whether our deferred cost of sales has been impaired based on expected net cash flows to be received for the deferred item. In assessing the impairment of our deferred cost of sales, we use a lower of cost or market estimate of realizable value. We apply our inventory valuation procedures, including potential impairment due to excess or obsolescence, to Altera owned inventory and distributor owned inventory. Realization of the deferred cost occurs because we earn revenue in excess of the amount of costs deferred. | |
Derivative Financial Instruments | ' |
DERIVATIVE FINANCIAL INSTRUMENTS | We account for derivative instruments activities as either assets or liabilities in the statement of financial position and carry them at fair value. Derivatives that are not designated as cash flow hedges for accounting purposes are adjusted to fair value through earnings. We do not enter into foreign exchange transactions for trading or speculative purposes. We did not have any open derivative contracts as of December 31, 2013 or 2012. | |
Indemnification and Product Warranty | ' |
INDEMNIFICATION AND PRODUCT WARRANTY | We indemnify certain customers, distributors, suppliers, and subcontractors for attorneys' fees and damages and costs awarded against these parties in certain circumstances in which our products are alleged to infringe third party intellectual property rights, including patents, trade secrets, trademarks, or copyrights. We cannot estimate the amount of potential future payments, if any, that we might be required to make as a result of these agreements. To date, we have not paid any claims nor have we been required to defend any action related to our indemnification obligations, and accordingly, we have not accrued any amounts for such indemnification obligations. However, we may record charges in the future as a result of these indemnification obligations. | |
Standard Product Warranty | ' |
We generally warrant our devices for one year against defects in materials, workmanship and material non-conformance to our specifications. We accrue for known warranty issues if a loss is probable and can be reasonably estimated, and accrue for estimated but unidentified issues based on historical activity. If there is a material increase in customer claims compared with our historical experience or if the costs of servicing warranty claims are greater than expected, we may record a charge against cost of sales. Warranty expense was not significant for any period presented in our consolidated statements of comprehensive income. | |
Income Taxes | ' |
INCOME TAXES | Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been reflected in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the book and tax bases of assets and liabilities and operating loss carryforwards, using tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to reduce net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company determines whether it is more likely than not that a tax position will be sustained upon examination. The tax benefit of any tax position that meets the more-likely-than-not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the uncertainty. To the extent a full benefit is not expected to be realized on the uncertain tax position, an income tax liability is established. Interest and penalties on income tax obligations, including uncertain tax positions, are included in income tax expense. | |
The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions across our global operations. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from current estimates of the tax liabilities. If our estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities may result in income tax benefits being recognized in the period when it is determined that the liabilities are no longer necessary. A significant portion of these potential tax liabilities are recorded in non-current income taxes payable as payment is not expected within one year. | |
Stock-Based Compensation Plans | ' |
STOCK-BASED COMPENSATION PLANS | We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. We use the Black-Scholes option pricing model to determine the estimated fair value for certain awards. Stock-based compensation cost for restricted stock units ("RSU"s) with time-based vesting is measured based on the closing fair market value of our common stock on the date of the grant, reduced by the present value of the estimated expected future dividends, and then multiplied by the number of RSUs granted. Stock-based compensation cost for performance-based restricted stock units ("PRSU"s) granted with market conditions is measured using a Monte Carlo simulation model on the date of grant. | |
The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our consolidated statements of comprehensive income. For stock options and RSUs, the grant-date value, less estimated pre-vest forfeitures, is expensed on a straight-line basis over the vesting period. PRSUs are expensed using a graded vesting schedule. The vesting period for stock options and RSUs is generally four years, while the vesting period for PRSUs is generally three years. | |
Foreign Currency Remeasurement | ' |
FOREIGN CURRENCY REMEASUREMENT | The U.S. dollar is the functional currency for all of our foreign subsidiaries. The monetary assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at the exchange rate in effect at the balance sheet date. Revenue, expenses, gains or losses are remeasured at the average exchange rate for the period. Non-monetary assets and liabilities are reflected at historical exchange rates. The resultant remeasurement gains or losses are included in Interest income and other in the consolidated statements of comprehensive income. Such gains or losses are insignificant for all periods presented. | |
Research and Development Expense | ' |
RESEARCH AND DEVELOPMENT EXPENSE | Research and development ("R&D") expense includes costs for compensation and benefits, development masks, prototype wafers, and depreciation and amortization. Research and development costs are charged to expense as incurred. | |
Advertising Expenses | ' |
ADVERTISING EXPENSES | We expense advertising costs as incurred. Advertising expenses were $6.6 million, $7.4 million and $5.8 million in 2013, 2012 and 2011, respectively. | |
Income Per Share | ' |
INCOME PER SHARE | We compute basic income per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, RSUs (including PRSUs), and employee stock purchase plan (“ESPP”) shares. Our application of the treasury stock method includes as assumed proceeds the average unamortized stock-based compensation expense for the period and the impact of the pro forma deferred tax benefit or cost associated with stock-based compensation expense. | |
Recent Accounting Pronoucements | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. This standard is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. We are currently assessing the potential impact of ASU No. 2013-11 on our consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This standard requires entities to present information about reclassification adjustments from accumulated other comprehensive income in the annual financial statements in a single note or on the face of the financial statements. Public companies will also have to provide this information in their interim financial statements. The new requirements are effective as of the beginning of a fiscal year that begins after December 15, 2012 and interim and annual periods thereafter. We early adopted this guidance in our fiscal year 2012 and it did not have a material impact on our consolidated financial statements. |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Goodwill [Abstract] | ' | ||||
Schedule of Goodwill | ' | ||||
Goodwill activity was as follows: | |||||
(In thousands) | 2013 | ||||
Beginning Balance | $ | 2,329 | |||
Additions due to acquisitions | 71,639 | ||||
Ending Balance | $ | 73,968 | |||
AcquisitionRelated_Intangible_1
Acquisition-Related Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Acquisition-Related Intangible Assets [Abstract] | ' | ||||||||||||||
Schedule of Acquired Intangible Asset by Major Class [Table Text Block] | ' | ||||||||||||||
Acquisition-related intangible assets, net were as follows: | |||||||||||||||
December 31, 2013 | |||||||||||||||
(In thousands) | Gross Assets | Accumulated Amortization | Net | Weighted-Average Amortization Period | |||||||||||
Developed technology | $ | 60,770 | $ | (4,445 | ) | $ | 56,325 | 9.4 years | |||||||
Customer relationships | 12,910 | (1,597 | ) | 11,313 | 6.8 years | ||||||||||
Trade name | 3,700 | (253 | ) | 3,447 | 8.9 years | ||||||||||
Non-competition agreements | 700 | (213 | ) | 487 | 2.0 years | ||||||||||
Other intangible assets | 930 | (752 | ) | 178 | 1.2 years | ||||||||||
Acquisition-related intangible assets, net subject to amortization | 79,010 | (7,260 | ) | 71,750 | |||||||||||
In-process research & development | 10,400 | — | 10,400 | ||||||||||||
Total acquisition-related intangible assets, net | $ | 89,410 | $ | (7,260 | ) | $ | 82,150 | ||||||||
December 31, 2012 | |||||||||||||||
(In thousands) | Gross Assets | Accumulated Amortization | Net | Weighted-Average Amortization Period | |||||||||||
Developed technology | $ | 5,670 | $ | (1,342 | ) | $ | 4,328 | 8.8 years | |||||||
Customer relationships | 910 | (364 | ) | 546 | 5.0 years | ||||||||||
Other intangible assets | 730 | (730 | ) | — | 1.0 year | ||||||||||
Acquisition-related intangible assets subject to amortization, net | 7,310 | (2,436 | ) | 4,874 | |||||||||||
Total acquisition-related intangible assets, net | $ | 7,310 | $ | (2,436 | ) | $ | 4,874 | ||||||||
Acquisition-Related Intangible Assets Amoritzation Schedule | ' | ||||||||||||||
Based on the carrying value of acquisition-related intangible assets, net as of December 31, 2013, the annual amortization expense for acquisition-related intangible assets, net is expected to be as follows: | |||||||||||||||
Fiscal Year | Amortization Expense | ||||||||||||||
(In thousands) | |||||||||||||||
2014 | $ | 9,168 | |||||||||||||
2015 | 8,956 | ||||||||||||||
2016 | 8,637 | ||||||||||||||
2017 | 8,462 | ||||||||||||||
Thereafter | 36,527 | ||||||||||||||
Total | $ | 71,750 | |||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | |||||||||||||||||||||||||||||
The following tables summarize our cash and available-for-sale securities by significant investment category. | ||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | |||||||||||||||||||||||
Cash | $ | 71,880 | $ | — | $ | — | $ | 71,880 | $ | 71,880 | $ | — | $ | — | ||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||
Money market funds | 2,763,094 | — | — | 2,763,094 | 2,763,094 | — | — | |||||||||||||||||||||||
U.S. treasury securities | 1,604,450 | 15 | (28,298 | ) | 1,576,167 | 34,184 | 39,262 | 1,502,721 | ||||||||||||||||||||||
Subtotal | 4,367,544 | 15 | (28,298 | ) | 4,339,261 | 2,797,278 | 39,262 | 1,502,721 | ||||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||||
U.S. agency securities | 53,755 | 33 | (18 | ) | 53,770 | — | 26,999 | 26,771 | ||||||||||||||||||||||
Non-U.S. government securities | 18,352 | 5 | — | 18,357 | — | 9,306 | 9,051 | |||||||||||||||||||||||
Municipal bond | 2,603 | — | (7 | ) | 2,596 | — | 603 | 1,993 | ||||||||||||||||||||||
Corporate debt securities | 219,491 | 425 | (69 | ) | 219,847 | — | 65,317 | 154,530 | ||||||||||||||||||||||
Subtotal | 294,201 | 463 | (94 | ) | 294,570 | — | 102,225 | 192,345 | ||||||||||||||||||||||
Total | $ | 4,733,625 | $ | 478 | $ | (28,392 | ) | $ | 4,705,711 | $ | 2,869,158 | $ | 141,487 | $ | 1,695,066 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | |||||||||||||||||||||||
Cash | $ | 89,194 | $ | — | $ | — | $ | 89,194 | $ | 89,194 | $ | — | $ | — | ||||||||||||||||
Available for sale: | ||||||||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||
Money market funds | 2,739,904 | — | — | 2,739,904 | 2,739,904 | — | — | |||||||||||||||||||||||
U.S. treasury securities | 564,713 | 5,231 | (3 | ) | 569,941 | 33,519 | 22,493 | 513,929 | ||||||||||||||||||||||
Subtotal | 3,304,617 | 5,231 | (3 | ) | 3,309,845 | 2,773,423 | 22,493 | — | 513,929 | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||||
U.S. agency securities | 116,802 | 58 | (1 | ) | 116,859 | 11,799 | 53,438 | 51,622 | ||||||||||||||||||||||
Non-U.S. government securities | 11,644 | 10 | (2 | ) | 11,652 | — | 2,730 | 8,922 | ||||||||||||||||||||||
Municipal bond | 1,372 | 1 | — | 1,373 | — | 752 | 621 | |||||||||||||||||||||||
Corporate debt securities | 193,048 | 436 | (64 | ) | 193,420 | 2,211 | 61,545 | 129,664 | ||||||||||||||||||||||
Subtotal | 322,866 | 505 | (67 | ) | 323,304 | 14,010 | 118,465 | 190,829 | ||||||||||||||||||||||
Total | $ | 3,716,677 | $ | 5,736 | $ | (70 | ) | $ | 3,722,343 | $ | 2,876,627 | $ | 140,958 | $ | 704,758 | |||||||||||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||||||||||||||||
The adjusted cost and estimated fair value of marketable debt securities (corporate debt securities, municipal bonds, U.S. and foreign government securities, and U.S. treasury securities) as of December 31, 2013, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. | ||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
(In thousands) | Adjusted Cost | Estimated Fair Value | ||||||||||||||||||||||||||||
Due in one year or less | $ | 175,584 | $ | 175,671 | ||||||||||||||||||||||||||
Due after one year through five years | 1,723,067 | 1,695,066 | ||||||||||||||||||||||||||||
$ | 1,898,651 | $ | 1,870,737 | |||||||||||||||||||||||||||
Accounts_Receivable_Net_and_Si1
Accounts Receivable, Net and Significant Customers (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | |||||||||
Schedule of Account Receivables, Net | ' | |||||||||
Account receivable, net was comprised of the following: | ||||||||||
(In thousands) | December 31, | December 31, | ||||||||
2013 | 2012 | |||||||||
Gross accounts receivable | $ | 483,628 | $ | 324,260 | ||||||
Allowance for doubtful accounts | (500 | ) | (500 | ) | ||||||
Allowance for sales returns | (96 | ) | (52 | ) | ||||||
Accounts receivable, net | $ | 483,032 | $ | 323,708 | ||||||
Schedule of Net Sales by Customer Type and Net Sales to Significant Customers | ' | |||||||||
Net sales by customer type and net sales to significant customers were as follows: | ||||||||||
(Percentage of Net Sales) | 2013 | 2012 | 2011 | |||||||
Sales to distributors | 77 | % | 71 | % | 73 | % | ||||
Sales to OEMs | 23 | % | 29 | % | 27 | % | ||||
100 | % | 100 | % | 100 | % | |||||
Significant Distributors(1): | ||||||||||
Arrow Electronics, Inc. (“Arrow”) | 41 | % | 40 | % | 39 | % | ||||
Macnica, Inc. (“Macnica”) | 23 | % | 21 | % | 21 | % | ||||
-1 | Except as presented above, no other distributor accounted for greater than 10% of our net sales for 2013, 2012 or 2011. |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
Inventories were comprised of the following: | |||||||||
(In thousands) | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Raw materials | $ | 8,390 | $ | 12,447 | |||||
Work in process | 104,755 | 88,643 | |||||||
Finished goods | 50,735 | 51,631 | |||||||
Total inventories | $ | 163,880 | $ | 152,721 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property And Equipment Tables [Abstract] | ' | ||||||||
Schedule of Property and Equipment | ' | ||||||||
Property and equipment, net was comprised of the following: | |||||||||
(In thousands) | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Land and land rights | $ | 23,157 | $ | 23,157 | |||||
Buildings | 159,123 | 159,247 | |||||||
Equipment and software | 281,197 | 256,725 | |||||||
Office furniture and fixtures | 24,438 | 24,531 | |||||||
Leasehold improvements | 12,391 | 11,915 | |||||||
Construction in progress | 1,798 | 1,705 | |||||||
Property and equipment, at cost | 502,104 | 477,280 | |||||||
Accumulated depreciation and amortization | (297,962 | ) | (271,132 | ) | |||||
Property and equipment, net | $ | 204,142 | $ | 206,148 | |||||
Deferred_Income_and_Allowances1
Deferred Income and Allowances on Sales to Distributors (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Schedule of Deferred Income and Allowances on Sales to Distributors | ' | ||||||||
Deferred income and allowances on sales to distributors was comprised of the following components: | |||||||||
(In thousands) | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Deferred revenue on shipments to distributors | $ | 512,872 | $ | 363,641 | |||||
Deferred cost of sales on shipments to distributors | (33,809 | ) | (28,101 | ) | |||||
Deferred income on shipments to distributors | 479,063 | 335,540 | |||||||
Other deferred revenue (1) | 8,683 | 10,453 | |||||||
Total | $ | 487,746 | $ | 345,993 | |||||
-1 | Principally represents revenue deferred on our maintenance contracts, software and intellectual property licenses. | ||||||||
Schedule of Deferred Income and Allowances on Sales to Distributors Activity | ' | ||||||||
The Deferred income and allowances on sales to distributor activity was as follows: | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Balance at beginning of period | $ | 345,993 | $ | 279,876 | |||||
Deferred revenue recognized upon shipment to distributors | 5,870,096 | 5,517,540 | |||||||
Deferred costs of sales recognized upon shipments to distributors | (269,969 | ) | (238,256 | ) | |||||
Revenue recognized upon sell-through to end customers | (1,055,137 | ) | (1,023,465 | ) | |||||
Costs of sales recognized upon sell-through to end customers | 260,326 | 237,703 | |||||||
Earned distributor price concessions (1) | (4,575,430 | ) | (4,345,473 | ) | |||||
Returns | (88,058 | ) | (82,577 | ) | |||||
(Decrease)/ increase in other deferred revenue | (75 | ) | 645 | ||||||
Balance at end of period | $ | 487,746 | $ | 345,993 | |||||
-1 | Average aggregate price concessions typically range from 70% to 85% of our list price on an annual basis, depending upon the composition of our sales, volumes, and factors associated with the timing of shipments to distributors. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
The following table presents the components of, and the changes in, accumulated other comprehensive (loss)/ income, net of tax: | |||||||||||||
(In thousands) | December 31, | Other Comprehensive Loss | December 31, | ||||||||||
2012 | 2013 | ||||||||||||
Accumulated unrealized gains (losses) on available-for-sale securities, net of tax | $ | 5,592 | $ | (33,554 | ) | $ | (27,962 | ) | |||||
Accumulated other comprehensive (loss)/ income | $ | 5,592 | $ | (33,554 | ) | $ | (27,962 | ) | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||
Future Minimum Lease Payments Under Non-Cancelable Operating Leases | ' | |||||
Future minimum lease payments under all non-cancelable operating lease obligations as of December 31, 2013 are as follows: | ||||||
Year | Operating | |||||
(In thousands) | ||||||
2014 | $ | 8,187 | ||||
2015 | 5,228 | |||||
2016 | 3,400 | |||||
2017 | 2,967 | |||||
2018 | 2,509 | |||||
2019 and thereafter | 6,742 | |||||
Total | $ | 29,033 | ||||
Income_Per_Share_Tables
Income Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Basic and Diluted Income Per Share | ' | ||||||||||||
A reconciliation of basic and diluted income per share is presented below: | |||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Basic: | |||||||||||||
Net income | $ | 440,065 | $ | 556,807 | $ | 770,711 | |||||||
Basic weighted shares outstanding | 320,195 | 320,830 | 321,892 | ||||||||||
Net income per share | $ | 1.37 | $ | 1.74 | $ | 2.39 | |||||||
Diluted: | |||||||||||||
Net income | $ | 440,065 | $ | 556,807 | $ | 770,711 | |||||||
Weighted shares outstanding | 320,195 | 320,830 | 321,892 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options, employee stock purchase plan shares, and restricted stock unit shares | 2,823 | 3,667 | 5,714 | ||||||||||
Diluted weighted shares outstanding | 323,018 | 324,497 | 327,606 | ||||||||||
Net income per share | $ | 1.36 | $ | 1.72 | $ | 2.35 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||
Schedule of Common Stock Repurchase Activities | ' | |||||||
Common stock repurchase activity was as follows: | ||||||||
(In millions, except per share amounts) | 2013 | 2012 | ||||||
Shares repurchased | 6.2 | 6.9 | ||||||
Cost of shares repurchased | $ | 201.1 | $ | 229.1 | ||||
Average price per share | $ | 32.33 | $ | 33.1 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation Expense | ' | |||||||||||||
Our stock-based compensation expense included in the consolidated statements of comprehensive income was as follows: | ||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||
Cost of sales | $ | 1,932 | $ | 1,872 | $ | 1,655 | ||||||||
Research and development expense | 42,515 | 41,652 | 36,410 | |||||||||||
Selling, general, and administrative expense | 52,177 | 50,062 | 44,685 | |||||||||||
Pre-tax stock-based compensation expense | 96,624 | 93,586 | 82,750 | |||||||||||
Income tax benefit | (25,432 | ) | (23,998 | ) | (20,278 | ) | ||||||||
Net stock-based compensation expense | $ | 71,192 | $ | 69,588 | $ | 62,472 | ||||||||
Assumptions Used to Estimate Fair Value of Stock Options ESPP RSUs And PRSUs | ' | |||||||||||||
The assumptions used to estimate the fair value of the ESPP shares, and the stock options, RSUs and PRSUs granted under the 2005 Plan were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock options: | ||||||||||||||
Expected term (in years) | 6 | 6 | 5 | |||||||||||
Expected stock price volatility | 32.8 | % | 35.1 | % | 32.7 | % | ||||||||
Risk-free interest rate | 1.3 | % | 1.1 | % | 0.3 | % | ||||||||
Dividend yield | 1.5 | % | 0.8 | % | 0.6 | % | ||||||||
Weighted-average estimated fair value per share | $ | 9.35 | $ | 10.85 | $ | 12.92 | ||||||||
ESPP shares: | ||||||||||||||
Expected term (in years) | 0.7 | 1 | 0.8 | |||||||||||
Expected stock price volatility | 28.1 | % | 36.8 | % | 35.9 | % | ||||||||
Risk-free interest rate | 0.1 | % | 0.2 | % | 0.1 | % | ||||||||
Dividend yield | 1.8 | % | 1.1 | % | 0.7 | % | ||||||||
Weighted-average estimated fair value per share | $ | 7.87 | $ | 9.61 | $ | 12.03 | ||||||||
RSUs: | ||||||||||||||
Risk-free interest rate | 0.3 | % | 0.3 | % | 0.6 | % | ||||||||
Dividend yield | 1.3 | % | 1 | % | 0.7 | % | ||||||||
Weighted-average estimated fair value per share | $ | 32.19 | $ | 32.67 | $ | 41.3 | ||||||||
PRSUs: | ||||||||||||||
Expected Altera stock price volatility | 34.7 | % | 34.9 | % | $ | — | ||||||||
Expected SOX stock price volatility | 27.1 | % | 28.9 | % | $ | — | ||||||||
Risk-free interest rate | 0.3 | % | 0.3 | % | $ | — | ||||||||
Dividend yield | 1.2 | % | 1.1 | % | $ | — | ||||||||
Weighted-average estimated fair value per share | $ | 33.03 | $ | 41.18 | $ | — | ||||||||
Summary of Activity for Restricted Stock Units and Performance Based Restricted Stock Units | ' | |||||||||||||
A summary of activity for our RSUs and PRSUs for 2013 and information regarding RSUs and PRSUs outstanding and expected to vest as of December 31, 2013 is as follows: | ||||||||||||||
(In thousands, except per share amounts and terms) | Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||
Shares | Grant-Date Fair Market Value | Remaining Contractual | Intrinsic | |||||||||||
Per Share | Term (in Years) | Value(1) | ||||||||||||
Outstanding, December 31, 2012 | 6,960 | $ | 34.03 | |||||||||||
Grants | 2,794 | $ | 33.21 | |||||||||||
Vested | (2,685 | ) | $ | 31.11 | ||||||||||
Forfeited | (677 | ) | $ | 35 | ||||||||||
Outstanding, December 31, 2013 | 6,392 | $ | 34.8 | 1.5 | $ | 207,818 | ||||||||
Vested and expected to vest, December 31, 2013 | 5,671 | $ | 34.8 | 1.4 | $ | 184,371 | ||||||||
-1 | Aggregate intrinsic value represents the closing price per share of our stock on December 31, 2013, multiplied by the number of RSUs and market-based PRSUs outstanding or vested and expected to vest as of December 31, 2013. | |||||||||||||
Summary of Stock Option Activity | ' | |||||||||||||
A summary of stock option activity for 2013 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2013 is as follows: | ||||||||||||||
(In thousands, except per share amounts and terms) | Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||
Shares | Exercise Price | Remaining Contractual | Intrinsic | |||||||||||
Per Share | Term (in Years) | Value(1) | ||||||||||||
Outstanding, December 31, 2012 | 5,163 | $ | 25.81 | |||||||||||
Grants | 94 | $ | 19.14 | |||||||||||
Exercises | (1,792 | ) | $ | 21.01 | ||||||||||
Forfeited/Cancelled/Expired | (19 | ) | $ | 28.61 | ||||||||||
Outstanding, December 31, 2013 | 3,446 | $ | 28.11 | 4.4 | $ | 24,076 | ||||||||
Exercisable, December 31, 2013 | 2,431 | $ | 24.74 | 3 | $ | 23,018 | ||||||||
Vested and expected to vest, December 31, 2013 | 3,347 | $ | 27.9 | 4.3 | $ | 23,982 | ||||||||
-1 | For those stock options with an exercise price below the closing price per share on December 31, 2013, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on December 31, 2013, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of December 31, 2013 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income Taxes | ' | ||||||||||||
Income tax expense consists of: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Current tax expense: | |||||||||||||
U.S. | $ | 21,869 | $ | 2,622 | $ | 21,618 | |||||||
State | 220 | 245 | 235 | ||||||||||
Foreign | 5,093 | 23,419 | 40,771 | ||||||||||
Total current tax expense | 27,182 | 26,286 | 62,624 | ||||||||||
Deferred taxes: | |||||||||||||
U.S. | 3,961 | 8,824 | 21,024 | ||||||||||
State | — | — | (22 | ) | |||||||||
Foreign | (380 | ) | — | (5,345 | ) | ||||||||
Total deferred tax expense | 3,581 | 8,824 | 15,657 | ||||||||||
Total income tax expense | $ | 30,763 | $ | 35,110 | $ | 78,281 | |||||||
Schedule of Deferred Income Tax Assets | ' | ||||||||||||
Deferred income tax assets were as follows: | |||||||||||||
(In thousands) | December 31, | December 31, | |||||||||||
2013 | 2012 | ||||||||||||
Deferred income on sales to distributors | $ | 14,178 | $ | 14,246 | |||||||||
Deferred compensation | 24,596 | 24,664 | |||||||||||
Stock-based compensation | 17,568 | 16,923 | |||||||||||
Other accrued expenses and reserves | 32,419 | 33,821 | |||||||||||
Net operating loss carryforwards | 11,339 | — | |||||||||||
Tax credit carryforwards | 35,899 | 21,829 | |||||||||||
Gross deferred tax assets | 135,999 | 111,483 | |||||||||||
Valuation allowance | (24,498 | ) | (18,430 | ) | |||||||||
Deferred tax assets, net of valuation allowance | 111,501 | 93,053 | |||||||||||
Amortization of acquisition-related intangible assets | (9,536 | ) | (1,183 | ) | |||||||||
Depreciation and amortization | (13,732 | ) | (15,739 | ) | |||||||||
Net deferred tax assets | $ | 88,233 | $ | 76,131 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
The items accounting for the difference between income taxes computed at the federal statutory rate and income tax expense are as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Tax expense at U.S. statutory rates | $ | 164,790 | $ | 207,171 | $ | 297,151 | |||||||
State taxes, net of federal benefit | 203 | 203 | 203 | ||||||||||
Foreign tax rate differential | (148,438 | ) | (165,572 | ) | (225,234 | ) | |||||||
Executive compensation deduction limitation | 2,217 | 2,346 | 3,237 | ||||||||||
Research and development tax credits | (28,538 | ) | (20,487 | ) | (16,649 | ) | |||||||
Interest on unrecognized gross tax benefits | 5,149 | (1,968 | ) | 7,520 | |||||||||
Deferred tax asset valuation allowance | 6,068 | 7,532 | 8,198 | ||||||||||
Foreign dividends | 27,707 | — | — | ||||||||||
Other, net | 1,605 | 5,885 | 3,855 | ||||||||||
Total income tax expense | $ | 30,763 | $ | 35,110 | $ | 78,281 | |||||||
Summary of Changes in Gross Unrecognized Tax Benefits | ' | ||||||||||||
The aggregate changes in the balance of gross unrecognized tax benefits for 2013, 2012 and 2011 were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Balance at beginning of year | $ | 296.4 | $ | 306.5 | $ | 263.3 | |||||||
Additions based on tax positions related to the current year | 67.3 | 45.1 | 51.1 | ||||||||||
Additions for tax positions of prior years | 2.7 | 4.8 | 5.7 | ||||||||||
Reductions for tax positions of prior years | (42.3 | ) | (60.0 | ) | (13.6 | ) | |||||||
Balance at end of year | $ | 324.1 | $ | 296.4 | $ | 306.5 | |||||||
Schedule of Component of Income before Income Taxes | ' | ||||||||||||
U.S. and foreign components of income before income taxes were: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 79,160 | $ | 26,216 | $ | 94,930 | |||||||
Foreign | 391,668 | 565,701 | 754,062 | ||||||||||
Income before income taxes | $ | 470,828 | $ | 591,917 | $ | 848,992 | |||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Sales by Major Geographic Area | ' | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
U.S. | $ | 288,936 | $ | 302,478 | $ | 365,549 | |||||||
Japan | 269,907 | 256,523 | 311,836 | ||||||||||
China | 503,127 | 582,344 | 688,304 | ||||||||||
Other | 670,602 | 641,690 | 698,786 | ||||||||||
Net sales from foreign countries | 1,443,636 | 1,480,557 | 1,698,926 | ||||||||||
Net sales in total | $ | 1,732,572 | $ | 1,783,035 | $ | 2,064,475 | |||||||
Property and Equipment, Net, by Country | ' | ||||||||||||
Property and equipment, net by country was as follows: | |||||||||||||
(In thousands) | December 31, | December 31, | |||||||||||
2013 | 2012 | ||||||||||||
U.S. | $ | 139,082 | $ | 141,153 | |||||||||
Malaysia | 55,509 | 55,755 | |||||||||||
Other | 9,551 | 9,240 | |||||||||||
Property and equipment, net in foreign countries | 65,060 | 64,995 | |||||||||||
Property and equipment, net in total | $ | 204,142 | $ | 206,148 | |||||||||
Employee_Benefits_Plans_Tables
Employee Benefits Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Schedule of Allocation of Plan Assets | ' | ||||||||||||
The following tables summarize the fair value of our deferred compensation plan assets by significant investment category: | |||||||||||||
(In thousands) | December 31, 2013 | December 31, 2012 | |||||||||||
Deferred compensation plan assets: (1) | |||||||||||||
Level 1: | |||||||||||||
Restricted cash equivalents | $ | 16,699 | $ | 17,116 | |||||||||
Equity securities | 32,628 | 29,902 | |||||||||||
Mutual funds | 32,521 | 27,073 | |||||||||||
Subtotal | 81,848 | 74,091 | |||||||||||
Level 2: | |||||||||||||
Fixed income securities | 1,306 | 3,346 | |||||||||||
Total | $ | 83,154 | $ | 77,437 | |||||||||
(1) Included in Deferred compensation plan - marketable securities and Deferred compensation plan - restricted cash equivalents in the accompanying consolidated balance sheets as of December 31, 2013 and | |||||||||||||
Gain (Loss) on Investments | ' | ||||||||||||
(Gain) loss on deferred compensation plan securities from our NQDC plan assets for 2013, 2012 and 2011 was comprised of the following: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Gross realized gains from sale of trading securities | $ | 2,639 | $ | 1,530 | $ | 823 | |||||||
Gross realized losses from sale of trading securities | — | (5 | ) | — | |||||||||
Dividend and interest income | 876 | 1,483 | 808 | ||||||||||
Net unrealized holding gains (losses) | 7,090 | 4,047 | (3,595 | ) | |||||||||
(Gain) loss on deferred compensation plan securities | $ | 10,605 | $ | 7,055 | $ | (1,964 | ) | ||||||
Schedule of Accrued Liabilities | ' | ||||||||||||
The following table presents the total long-term and short-term liabilities for this program, which are included in Accrued compensation and related liabilities and Other non-current liabilities. | |||||||||||||
(In thousands) | December 31, | December 31, | |||||||||||
2013 | 2012 | ||||||||||||
Accrued compensation and related liabilities | $ | 2,564 | $ | 2,261 | |||||||||
Other non-current liabilities | 5,370 | 6,888 | |||||||||||
$ | 7,934 | $ | 9,149 | ||||||||||
Credit_Facility_and_LongTerm_D1
Credit Facility and Long-Term Debt (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Debt Instruments [Abstract] | ' | |||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||||||||||||||||||
The carrying values and associated effective interest rates for our Long-term debt was comprised of the following: | ||||||||||||||||||||||||
(In thousands, except rates) | Effective Interest Rate | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
2013 Senior Notes due November 15, 2018 at 2.50% | 2.71% | $ | 596,920 | $ | — | |||||||||||||||||||
2013 Senior Notes due November 15, 2023 at 4.10% | 4.29% | 395,056 | — | |||||||||||||||||||||
2012 Senior Notes due May 15, 2017 at 1.75% | 1.94% | 499,490 | 500,000 | |||||||||||||||||||||
Total long-term debt | $ | 1,491,466 | $ | 500,000 | ||||||||||||||||||||
Schedule of Carrying Values of Debt Instruments [Table Text Block] | ' | |||||||||||||||||||||||
The carrying values of the Notes are reflected in our consolidated balance sheets as follows: | ||||||||||||||||||||||||
2.50% Notes | 4.10% Notes | 1.75% Notes | ||||||||||||||||||||||
(In thousands) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||||
Principal amount | $ | 600,000 | $ | — | $ | 400,000 | $ | — | $ | 500,000 | $ | 500,000 | ||||||||||||
Unamortized discount | (3,080 | ) | — | (4,944 | ) | — | (510 | ) | — | |||||||||||||||
Net carrying value | $ | 596,920 | $ | — | $ | 395,056 | $ | — | $ | 499,490 | $ | 500,000 | ||||||||||||
Schedule of interest costs, Debt [Table Text Block] | ' | |||||||||||||||||||||||
Interest expense related to the Notes were included in Interest expense in the consolidated statements of comprehensive income as follows: | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||||||||||||
Contractual coupon interest | $ | 14,043 | $ | 5,682 | ||||||||||||||||||||
Amortization of debt issuance costs | 1,114 | 648 | ||||||||||||||||||||||
Amortization of debt discount | 343 | 102 | ||||||||||||||||||||||
Total interest expense related to the Notes | $ | 15,500 | $ | 6,432 | ||||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||||||||||||||||||
As of December 31, 2013, future principal payments for the Notes were as follows: | ||||||||||||||||||||||||
Fiscal Year | Payable | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
2014 | $ | — | ||||||||||||||||||||||
2015 | — | |||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||
2017 | 500,000 | |||||||||||||||||||||||
2018 and thereafter | 1,000,000 | |||||||||||||||||||||||
Total | $ | 1,500,000 | ||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | ' | |||||||||||||||||||||||
2.50% Notes | 4.10% Notes | 1.75% Notes | ||||||||||||||||||||||
(In thousands) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||||
Estimated fair value | $ | 598,836 | $ | — | $ | 392,680 | $ | — | $ | 501,310 | $ | 512,200 | ||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Advertising Expense [Abstract] | ' | ' | ' |
Advertising expense | $6.60 | $7.40 | $5.80 |
Warranty term | '1 year | ' | ' |
Building and Building Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Estimated useful lives | '40 years | ' | ' |
Land and Land Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Estimated useful lives | '50 years | ' | ' |
Maximum [Member] | Furniture [Member] | ' | ' | ' |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Estimated useful lives | '7 years | ' | ' |
Maximum [Member] | Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Estimated useful lives | '7 years | ' | ' |
Minimum [Member] | Furniture [Member] | ' | ' | ' |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Minimum [Member] | Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Acquisition_Details
Acquisition (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | 21-May-13 | |
Avalon [Member] | Avalon [Member] | Avalon [Member] | Avalon [Member] | 2013 Acquisitions [Member] | 2013 Acquisitions [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition, net of cash acquired | $145,321,000 | $0 | $0 | $8,000,000 | ' | ' | ' | $145,300,000 | ' |
Number of Businesses Acquired | ' | ' | ' | 1 | ' | ' | ' | 2 | ' |
Business Acquisition Contingent Considerations, Potential Payments | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 |
Compensation Expense, acquisition related | ' | ' | ' | ' | $1,900,000 | $1,900,000 | $1,900,000 | ' | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | |
Goodwill [Abstract] | ' | ' |
Goodwill, Subsequent Recognition of Deferred Tax Asset | $17,300,000 | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning balance | ' | 2,329,000 |
Additions due to acquisitions | ' | 71,639,000 |
Ending balance | $73,968,000 | $73,968,000 |
AcquisitionRelated_Intangible_2
Acquisition-Related Intangible Assets, Net (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 21-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
In Process Research and Development [Member] | In Process Research and Development [Member] | Developed Technology Rights [Member] | Developed Technology Rights [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Trade Names [Member] | Noncompete Agreements [Member] | Other Intangible Assets [Member] | Other Intangible Assets [Member] | |||
Schedule of Acquired Intangible Asset by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets, Gross | $79,010,000 | $7,310,000 | ' | ' | $60,770,000 | $5,670,000 | $12,910,000 | $910,000 | $3,700,000 | $700,000 | $930,000 | $730,000 |
Acquired Finite-Lived Intangible Assets, Accumulated Amortization | -7,260,000 | -2,436,000 | ' | ' | -4,445,000 | -1,342,000 | -1,597,000 | -364,000 | -253,000 | -213,000 | -752,000 | -730,000 |
Acquired Finite-Lived Intangible Assets, Net | 71,750,000 | 4,874,000 | ' | ' | 56,325,000 | 4,328,000 | 11,313,000 | 546,000 | 3,447,000 | 487,000 | 178,000 | 0 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | ' | ' | ' | '9 years 4 months 12 days | '8 years 9 months 18 days | '6 years 9 months 18 days | '5 years 0 months 0 days | '8 years 10 months 24 days | '2 years 0 months 0 days | '1 year 2 months 12 days | '1 year 0 months 0 days |
Acquired Indefinite-Lived Intangible Assets (Excluding Goodwill) | ' | ' | 10,400,000 | 28,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived Intangible Assets, Period Increase (Decrease) | -17,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related Intangible Assets, Gross | 89,410,000 | 7,310,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition-related intangible assets, net | $82,150,000 | $4,874,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
AcquisitionRelated_Intangible_3
Acquisition-Related Intangible Assets (Schedule of Annnual Amortization Expenses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ' |
2014 | $9,168 | ' |
2015 | 8,956 | ' |
2016 | 8,637 | ' |
2017 | 8,462 | ' |
Thereafter | 36,527 | ' |
Acquired Finite-Lived Intangible Assets, Net | $71,750 | $4,874 |
Financial_Instruments_Details_
Financial Instruments (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and Available-for-sale Securities, Cost | $4,733,625 | $3,716,677 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 478 | 5,736 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -28,392 | -70 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,869,158 | 2,876,627 |
Short-term Marketable Securities | 141,487 | 140,958 |
Long-term Marketable Securities | 1,695,066 | 704,758 |
Investments, Fair Value Disclosure | 4,705,711 | 3,722,343 |
Cash [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash | 71,880 | 89,194 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 0 | 0 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | 0 | 0 |
Short-term Marketable Securities | 0 | 0 |
Long-term Marketable Securities | 0 | 0 |
Level 1 [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and Available-for-sale Securities, Cost | 4,367,544 | 3,304,617 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 15 | 5,231 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -28,298 | -3 |
Available-for-sale Securities | 4,339,261 | 3,309,845 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,797,278 | 2,773,423 |
Short-term Marketable Securities | 39,262 | 22,493 |
Long-term Marketable Securities | 1,502,721 | 513,929 |
Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and Available-for-sale Securities, Cost | 2,763,094 | 2,739,904 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 0 | 0 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | 0 | 0 |
Available-for-sale Securities | 2,763,094 | 2,739,904 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,763,094 | 2,739,904 |
Short-term Marketable Securities | 0 | 0 |
Long-term Marketable Securities | 0 | 0 |
Level 1 [Member] | US Treasury Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and Available-for-sale Securities, Cost | 1,604,450 | 564,713 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 15 | 5,231 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -28,298 | -3 |
Available-for-sale Securities | 1,576,167 | 569,941 |
Cash and Cash Equivalents, Fair Value Disclosure | 34,184 | 33,519 |
Short-term Marketable Securities | 39,262 | 22,493 |
Long-term Marketable Securities | 1,502,721 | 513,929 |
Level 2 [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and Available-for-sale Securities, Cost | 294,201 | 322,866 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 463 | 505 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -94 | -67 |
Available-for-sale Securities | 294,570 | 323,304 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 14,010 |
Short-term Marketable Securities | 102,225 | 118,465 |
Long-term Marketable Securities | 192,345 | 190,829 |
Level 2 [Member] | Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and Available-for-sale Securities, Cost | 2,603 | 1,372 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 0 | 1 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -7 | 0 |
Available-for-sale Securities | 2,596 | 1,373 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Short-term Marketable Securities | 603 | 752 |
Long-term Marketable Securities | 1,993 | 621 |
Level 2 [Member] | Agency Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and Available-for-sale Securities, Cost | 53,755 | 116,802 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 33 | 58 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -18 | -1 |
Available-for-sale Securities | 53,770 | 116,859 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 11,799 |
Short-term Marketable Securities | 26,999 | 53,438 |
Long-term Marketable Securities | 26,771 | 51,622 |
Level 2 [Member] | Foreign Government Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and Available-for-sale Securities, Cost | 18,352 | 11,644 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 5 | 10 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | 0 | -2 |
Available-for-sale Securities | 18,357 | 11,652 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Short-term Marketable Securities | 9,306 | 2,730 |
Long-term Marketable Securities | 9,051 | 8,922 |
Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash and Available-for-sale Securities, Cost | 219,491 | 193,048 |
AvailableForSaleSecuritiesGrossUnrealizedGainAccumulatedInInvestments | 425 | 436 |
AvailableForSaleSecuritiesGrossUnrealizedLossAccumulatedInInvestments | -69 | -64 |
Available-for-sale Securities | 219,847 | 193,420 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 2,211 |
Short-term Marketable Securities | 65,317 | 61,545 |
Long-term Marketable Securities | $154,530 | $129,664 |
Financial_Instruments_Details_1
Financial Instruments (Details 2) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Schedule of Cost-method Investments [Line Items] | ' |
Cost Method Investments | $12.40 |
Financial_Instruments_Financia
Financial Instruments Financial Instruments (Details 3) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ' |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $175,584 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 175,671 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 1,723,067 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 1,695,066 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 1,898,651 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | $1,870,737 |
Financial_Instruments_Details_2
Financial Instruments (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Continuous Unrealised Loss [Abstract] | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 137 | 91 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $1,600 | $118.70 |
Available-for-Sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses Accumulated in Investments | ($28.40) | ($0.10) |
Account_Receivables_Net_and_Si
Account Receivables, Net and Significant Customers (Account Receivables) (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Account Receivables, Net [Abstract] | ' | ' |
Gross Accounts Receivable | $483,628 | $324,260 |
Allowance for doubtful accounts | -500 | -500 |
Allowance for sales returns | -96 | -52 |
Accounts receivable, net | $483,032 | $323,708 |
Accounts_Receivable_Net_and_Si2
Accounts Receivable, Net and Significant Customers (Significant Customers) (Details 2) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales to distributors | 77.00% | 71.00% | 73.00% | |||
Sales To OEMs | 23.00% | 29.00% | 27.00% | |||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | |||
Huawei Technologies Co., Ltd. | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales To OEMs | 11.00% | 16.00% | 13.00% | |||
Arrow Electronics, Inc. | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales to distributors | 41.00% | [1] | 40.00% | [1] | 39.00% | [1] |
Accounts receivable from distributors as a percentage of total accounts receivable | 26.00% | 30.00% | ' | |||
Macnica, Inc. | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales to distributors | 23.00% | [1] | 21.00% | [1] | 21.00% | [1] |
Accounts receivable from distributors as a percentage of total accounts receivable | 55.00% | 47.00% | ' | |||
[1] | Except as presented above, no other distributor accounted for greater than 10% of our net sales for 2013, 2012 or 2011. |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Inventory, Raw Materials, Net of Reserves | $8,390 | $12,447 |
Inventory, Work in Process, Net of Reserves | 104,755 | 88,643 |
Inventory, Finished Goods, Net of Reserves | 50,735 | 51,631 |
Total inventories | $163,880 | $152,721 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $502,104,000 | $477,280,000 | ' |
Accumulated depreciation | -297,962,000 | -271,132,000 | ' |
Property and equipment, net | 204,142,000 | 206,148,000 | ' |
Depreciation expense | 42,600,000 | 32,900,000 | 28,900,000 |
Land and land rights [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 23,157,000 | 23,157,000 | ' |
Buildings [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 159,123,000 | 159,247,000 | ' |
Equipment and software [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 281,197,000 | 256,725,000 | ' |
Office furniture and fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 24,438,000 | 24,531,000 | ' |
Leasehold improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 12,391,000 | 11,915,000 | ' |
Construction in progress [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $1,798,000 | $1,705,000 | ' |
Deferred_Income_and_Allowances2
Deferred Income and Allowances on Sales to Distributors (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Deferred Income and Allowances on Sales to Distributors | ' | ' | ||
Deferred revenue on shipments to distributors | $512,872 | $363,641 | ||
Deferred cost of sales on shipments to distributors | -33,809 | -28,101 | ||
Deferred income on shipments to distributors | 479,063 | 335,540 | ||
Other deferred revenue | 8,683 | [1] | 10,453 | [1] |
Total | 487,746 | 345,993 | ||
Deferred Income and Allowances on Sales to Distributor Activity | ' | ' | ||
Balance at beginning of period | 345,993 | 279,876 | ||
Deferred revenue recognized upon shipment to distributors | 5,870,096 | 5,517,540 | ||
Deferred costs of sales recognized upon shipments to distributors | -269,969 | -238,256 | ||
Revenue recognized upon sell-through to end customers | -1,055,137 | -1,023,465 | ||
Costs of sales recognized upon sell-through to end customers | 260,326 | 237,703 | ||
Earned distributor price concessions | -4,575,430 | [2] | -4,345,473 | [2] |
Returns | -88,058 | -82,577 | ||
(Decrease)/ increase in other deferred revenue | -75 | 645 | ||
Balance at end of period | $487,746 | $345,993 | ||
Deferred Income and Allowances on Sales to Distributors Textuals [Abstract] | ' | ' | ||
Minimum percentage of average aggregate price concessions on list price | 70.00% | ' | ||
Maximum percentage of average aggregate price concessions on list price | 85.00% | ' | ||
Maximum time period to submit claim for receiving price concession, days | '60 days | ' | ||
Period of settlement for receivable balances, days | '30 days | ' | ||
[1] | Principally represents revenue deferred on our maintenance contracts, software and intellectual property licenses. | |||
[2] | Average aggregate price concessions typically range from 70% to 85% of our list price on an annual basis, depending upon the composition of our sales, volumes, and factors associated with the timing of shipments to distributors. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated unrealized gain (loss) on Available-For-Sale Securities, Net of Tax | ' | ' | ' |
31-Dec-12 | $5,592 | ' | ' |
Other Comprehensive Income /(Loss) | -33,554 | 5,725 | -133 |
31-Dec-13 | -27,962 | 5,592 | ' |
Accumulated Other Comprehensive Income/(Loss) | ' | ' | ' |
31-Dec-12 | 5,592 | ' | ' |
Other Comprehensive (loss)/ income | -33,554 | 5,725 | -133 |
31-Dec-13 | ($27,962) | $5,592 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Leases, Operating [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense | $10,100,000 | $10,600,000 | $8,100,000 |
Operating lease obligations [Abstract] | ' | ' | ' |
2014 | 8,187,000 | ' | ' |
2015 | 5,228,000 | ' | ' |
2016 | 3,400,000 | ' | ' |
2017 | 2,967,000 | ' | ' |
2018 | 2,509,000 | ' | ' |
2019 and thereafter | 6,742,000 | ' | ' |
Total | $29,033,000 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2010 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 08, 2011 | Mar. 29, 2013 | Jan. 23, 2012 | Mar. 30, 2012 | Mar. 30, 2012 |
Tax Return Examination Years 2002 through 2004 [Member] | Tax Return Examination Years 2004 through 2007 [Member] | Tax Return Examination Years 2005 through 2007 [Member] | Patent Infringement [Member] | File for Writ of Mandamus [Member] | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Significant Commitment, Remaining Minimum Amount Committed | ' | ' | $158.20 | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Patents Allegedly Infringed, Number | 5 | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Number of Defendants | ' | ' | ' | ' | ' | ' | 4 | 3 |
Liability (refund) adjustment from settlement with taxing authority | ' | ' | ' | 19.8 | -6.8 | 21.4 | ' | ' |
Income Taxes Paid | ' | $18 | ' | ' | ' | ' | ' | ' |
Income_Per_Share_Details
Income Per Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic: | ' | ' | ' |
Net income | $440,065 | $556,807 | $770,711 |
Basic weighted shares outstanding (in shares) | 320,195,000 | 320,830,000 | 321,892,000 |
Net income per share (in dollars per share) | $1.37 | $1.74 | $2.39 |
Diluted: | ' | ' | ' |
Net income | $440,065 | $556,807 | $770,711 |
Basic weighted shares outstanding (in shares) | 320,195,000 | 320,830,000 | 321,892,000 |
Stock options, ESPP and restricted stock unit shares (in shares) | 2,823,000 | 3,667,000 | 5,714,000 |
Diluted weighted shares outstanding | 323,018,000 | 324,497,000 | 327,606,000 |
Net income per share (in dollars per share) | $1.36 | $1.72 | $2.35 |
Antidilutive Securities Excluded from Computation of Earning Per Share, Amount | 2,000,000 | 1,800,000 | 1,800,000 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | |||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 28, 2013 |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 233 | ' | ' | 30 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 36.8 | ' | ' | ' |
Stock Repurchased and Retired, Share, Total | 196.2 | ' | ' | ' |
Payment For Stock Repurchased and Retired, Total | $4,300,000,000 | ' | ' | ' |
Shares repurchased | 6.2 | 6.9 | ' | ' |
Cost of shares repurchased | $201,095,000 | $229,057,000 | $197,023,000 | ' |
Average price per share | $32.33 | $33.10 | ' | ' |
StockBased_Compensation_Expens
Stock-Based Compensation (Expense Included in the Consolidated of Income) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Pre-tax stock-based compensation expense | $96,624,000 | $93,586,000 | $82,750,000 |
Less: income tax benefit | -25,432,000 | -23,998,000 | -20,278,000 |
Net stock-based compensation expense | 71,192,000 | 69,588,000 | 62,472,000 |
Unrecognized stock-based compensation | 156,600,000 | ' | ' |
Unrecognized stock-based compensation, period for recognition | '2 years 3 months 20 days | ' | ' |
Cost of sales [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Pre-tax stock-based compensation expense | 1,932,000 | 1,872,000 | 1,655,000 |
Research and development expense [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Pre-tax stock-based compensation expense | 42,515,000 | 41,652,000 | 36,410,000 |
Selling, general and administrative expense [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Pre-tax stock-based compensation expense | $52,177,000 | $50,062,000 | $44,685,000 |
StockBased_Compensation_Valuat
Stock-Based Compensation (Valuation Assumptions) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
21-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 7-May-13 | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock [Member] | Employee Stock [Member] | Employee Stock [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Performance Shares (PRSUs) [Member] | Performance Shares (PRSUs) [Member] | Performance Shares (PRSUs) [Member] | Performance Shares (PRSUs) [Member] | Performance Shares (PRSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term (in years) | ' | '6 years | '6 years | '5 years | '8 months | '1 year | '9 months | ' | ' | ' | ' | ' | ' | ' | ' |
Expected stock price volatility | ' | 32.80% | 35.10% | 32.70% | 28.10% | 36.80% | 35.90% | ' | ' | ' | ' | ' | 34.70% | 34.90% | 0.00% |
Expected SOX stock price volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27.10% | 28.90% | 0.00% |
Risk-free interest rate | ' | 1.30% | 1.10% | 0.30% | 0.10% | 0.20% | 0.10% | 0.30% | 0.30% | 0.60% | ' | ' | 0.30% | 0.30% | 0.00% |
Dividend yield | ' | 1.50% | 0.80% | 0.60% | 1.80% | 1.10% | 0.70% | 1.30% | 1.00% | 0.70% | ' | ' | 1.20% | 1.10% | 0.00% |
Weighted-average estimated fair value | ' | $9.35 | $10.85 | $12.92 | $7.87 | $9.61 | $12.03 | $32.19 | $32.67 | $41.30 | ' | ' | $33.03 | $41.18 | $0 |
Grant Unit | 55,931 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 262,647 | 66,489 | ' | ' | ' |
Grant Fair Value | $24.42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $33.03 | $41.18 | ' | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 21-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 7-May-13 | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |||
Restricted Stock Units And Performance Based Restricted Stock Units [Member] | Restricted Stock Units And Performance Based Restricted Stock Units [Member] | Restricted Stock Units And Performance Based Restricted Stock Units [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Performance Shares (PRSUs) [Member] | Performance Shares (PRSUs) [Member] | Performance Shares (PRSUs) [Member] | 2005 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Contractual term for stock-based awards granted under the Equity plan (in years) | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ||
Vesting period for stock-based awards granted under the Equity Plan (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,100,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,800,000 | ||
RSUs and PRSUs, Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding, December 31, 2012 | 6,960,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Grants | 2,794,000 | ' | ' | 55,931 | ' | ' | ' | 262,647 | 66,489 | ' | ' | ||
Vested | -2,685,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Forfeited | -677,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding, December 31, 2013 | 6,392,000 | 6,960,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Vested and expected to vest, December 31, 2013 | 5,671,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
RSUs and PRUs, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding, December 31, 2012 | $34.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Grants | $33.21 | ' | ' | $24.42 | ' | ' | ' | $33.03 | $41.18 | ' | ' | ||
Vested | $31.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Forfeited | $35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding, December 31, 2013 | $34.80 | $34.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Vested and expected to vest, December 31, 2013 | $34.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding, Weighted-average remaining contractual term (in years) | '1 year 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding, aggregate intrinsic value | $207,818,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Vested and expected to vest, weighted-average remaining contractual term (in years) | '1 year 5 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Vested and expected to vest, Aggregate intrinsic value | 184,371,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share Options, Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding, December 31, 2012 | ' | ' | ' | ' | 5,163,000 | ' | ' | ' | ' | ' | ' | ||
Grants | ' | ' | ' | ' | 94,000 | ' | ' | ' | ' | ' | ' | ||
Exercises | ' | ' | ' | ' | -1,792,000 | -1,700,000 | -4,800,000 | ' | ' | ' | ' | ||
Forfeited/Cancelled/Expired | ' | ' | ' | ' | -19,000 | ' | ' | ' | ' | ' | ' | ||
Outstanding, December 31, 2013 | ' | ' | ' | ' | 3,446,000 | 5,163,000 | ' | ' | ' | ' | ' | ||
Exercisable, December 31, 2013 | ' | ' | ' | ' | 2,431,000 | ' | ' | ' | ' | ' | ' | ||
Vested and expected to vest, December 31, 2013 | ' | ' | ' | ' | 3,347,000 | ' | ' | ' | ' | ' | ' | ||
Stock Options, Weighted Average Exercise Price Per Share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding, December 31, 2012 | ' | ' | ' | ' | $25.81 | ' | ' | ' | ' | ' | ' | ||
Grants | ' | ' | ' | ' | $19.14 | ' | ' | ' | ' | ' | ' | ||
Exercises | ' | ' | ' | ' | $21.01 | ' | ' | ' | ' | ' | ' | ||
Forfeited/Cancelled/Expired | ' | ' | ' | ' | $28.61 | ' | ' | ' | ' | ' | ' | ||
Outstanding, December 31, 2013 | ' | ' | ' | ' | $28.11 | $25.81 | ' | ' | ' | ' | ' | ||
Exercisable, December 31, 2013 | ' | ' | ' | ' | $24.74 | ' | ' | ' | ' | ' | ' | ||
Vested and expected to vest, December 31, 2013 | ' | ' | ' | ' | $27.90 | ' | ' | ' | ' | ' | ' | ||
Outstanding, Weighted-average remaining contractual term (in years) | ' | ' | ' | ' | '4 years 5 months | ' | ' | ' | ' | ' | ' | ||
Exercisable, Weighted-average remaining contractual term (in years) | ' | ' | ' | ' | '3 years 0 months | ' | ' | ' | ' | ' | ' | ||
Vested and expected to vest, Weighted-average remaining contractual term (in years) | ' | ' | ' | ' | '4 years 4 months | ' | ' | ' | ' | ' | ' | ||
Outstanding, Aggregate intrinsic value | ' | ' | ' | ' | 24,076,000 | [2] | ' | ' | ' | ' | ' | ' | |
Exercisable, Aggregate intrinsic value | ' | ' | ' | ' | 23,018,000 | [2] | ' | ' | ' | ' | ' | ' | |
Vested and expected to vest, Aggregate intrinsic value | ' | ' | ' | ' | 23,982,000 | [2] | ' | ' | ' | ' | ' | ' | |
Total fair value of RSUs and PRSUs vested and expensed during the period | 85,400,000 | 81,000,000 | 71,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Intrinsic value of stock options exercised | ' | ' | ' | ' | 24,000,000 | 30,600,000 | 97,700,000 | ' | ' | ' | ' | ||
Cash received from exercise of stock options | ' | ' | ' | ' | 37,600,000 | 31,200,000 | 102,300,000 | ' | ' | ' | ' | ||
Total fair value of stock options vested and expensed during the period | ' | ' | ' | ' | $5,300,000 | $4,900,000 | $4,700,000 | ' | ' | ' | ' | ||
[1] | Aggregate intrinsic value represents the closing price per share of our stock on DecemberB 31, 2013, multiplied by the number of RSUs and market-based PRSUs outstanding or vested and expected to vest as of DecemberB 31, 2013. | ||||||||||||
[2] | For those stock options with an exercise price below the closing price per share on DecemberB 31, 2013, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on DecemberB 31, 2013, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of DecemberB 31, 2013. |
StockBased_Compensation_Employ
Stock-Based Compensation (Employee Stock Purchase Plan) (Details) (Employee Stock Purchase Plan 1987 [Member], USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Stock Purchase Plan 1987 [Member] | ' | ' | ' |
Employee Stock Purchase Plan [Line Items] | ' | ' | ' |
Part of fair market value of common stock used to determine purchase price for share under ESPP | 85.00% | ' | ' |
Common stock sold under the ESPP plan | 0.8 | 0.7 | 0.7 |
Weighted average purchase price of shares purchased | $26.88 | $27.90 | $26.12 |
Shares available for future issuance | 3.1 | ' | ' |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States (U.S.) | $21,869 | $2,622 | $21,618 |
State | 220 | 245 | 235 |
Foreign | 5,093 | 23,419 | 40,771 |
Current tax expense | 27,182 | 26,286 | 62,624 |
U.S. | 3,961 | 8,824 | 21,024 |
State | 0 | 0 | -22 |
Foreign | -380 | 0 | -5,345 |
Deferred tax expense (benefit) | 3,581 | 8,824 | 15,657 |
Income tax expense | $30,763 | $35,110 | $78,281 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Deferred income on sales to distributors | $14,178 | $14,246 |
Deferred compensation | 24,596 | 24,664 |
Stock-based compensation | 17,568 | 16,923 |
Other accrued expenses and reserves | 32,419 | 33,821 |
Net operating loss carryforwards | 11,339 | 0 |
Tax credit carryforwards | 35,899 | 21,829 |
Gross deferred tax assets | 135,999 | 111,483 |
Valuation allowance | -24,498 | -18,430 |
Deferred tax assets, net of valuation allowance | 111,501 | 93,053 |
Amortization of acquisition-related intangible assets | -9,536 | -1,183 |
Depreciation and amortization | -13,732 | -15,739 |
Net deferred tax assets | $88,233 | $76,131 |
Income_Taxes_Schedule_of_Incom1
Income Taxes (Schedule of Income Tax Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ' | ' | ' |
Tax expense at U.S. statutory rates | $164,790 | $207,171 | $297,151 |
State taxes, net of federal benefit | 203 | 203 | 203 |
Foreign tax rate differential | -148,438 | -165,572 | -225,234 |
Executive compensation deduction limitation | 2,217 | 2,346 | 3,237 |
Research and development tax credits | -28,538 | -20,487 | -16,649 |
Interest on unrecognized gross tax benefits | 5,149 | -1,968 | 7,520 |
Deferred tax asset valuation allowance | 6,068 | 7,532 | 8,198 |
Foreign dividends | 27,707 | 0 | 0 |
Other, net | 1,605 | 5,885 | 3,855 |
Income tax expense | $30,763 | $35,110 | $78,281 |
Income_Taxes_Summary_of_Change
Income Taxes (Summary of Changes in Gross Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrecognized Tax Benefit [Roll Forward] | ' | ' | ' |
Balance, beginning of year | $296.40 | $306.50 | $263.30 |
Additions based on tax positions related to the current year | 67.3 | 45.1 | 51.1 |
Additions for tax positions of prior years | 2.7 | 4.8 | 5.7 |
Reductions for tax positions of prior years | -42.3 | -60 | -13.6 |
Balance, end of year | $324.10 | $296.40 | $306.50 |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. | $79,160 | $26,216 | $94,930 |
Foreign | 391,668 | 565,701 | 754,062 |
Income before income taxes | $470,828 | $591,917 | $848,992 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 08, 2011 | Mar. 29, 2013 | Jan. 23, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
California Research and Development Tax Credits [Member] | Federal Research Tax Credit Carryforward [Member] | Tax Return Examination Years 2002 through 2004 [Member] | Tax Return Examination Years 2004 through 2007 [Member] | Tax Return Examination Years 2005 through 2007 [Member] | Domestic Tax Authority [Member] | Foreign Tax Authority [Member] | ||||||
Income taxes Textual [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development tax credit carryforwards | ' | ' | ' | ' | ' | $24,500,000 | $6,900,000 | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,200,000 | 24,600,000 |
Annual limitation on use of tax credit | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance | ' | 24,498,000 | 18,430,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Charge, Current | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Charge, Non-current | ' | 18,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability (refund) adjustment from settlement with taxing authority | ' | ' | ' | ' | ' | ' | ' | 19,800,000 | -6,800,000 | 21,400,000 | ' | ' |
Income taxes paid | ' | ' | ' | ' | 18,000,000 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | 30,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Tax Expense (Benefit) | 27,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefit that would impact effective tax rate | ' | 301,300,000 | 275,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits, Penalties And Interest Expense, Net | ' | 100,000 | -6,000,000 | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | ' | 3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Examination, Penalties and Interest Expense | ' | -3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | ' | 48,800,000 | 48,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Indemnification Assets, Amount as of Acquisition Date | ' | 6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed Earnings of Foreign Subsidiaries | ' | $3,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_and_Geographic_Informa2
Segment and Geographic Information Sales by Geographic Areas (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $1,732,572 | $1,783,035 | $2,064,475 |
United States [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 288,936 | 302,478 | 365,549 |
Foreign Countries [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 1,443,636 | 1,480,557 | 1,698,926 |
Japan [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 269,907 | 256,523 | 311,836 |
China [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 503,127 | 582,344 | 688,304 |
Other Countries [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $670,602 | $641,690 | $698,786 |
Segment_and_Geographic_Informa3
Segment and Geographic Information Property and equipment, net by geographic area (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $204,142 | $206,148 |
United States [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 139,082 | 141,153 |
Foreign Countries [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 65,060 | 64,995 |
Malaysia, Country [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 55,509 | 55,755 |
Other Countries [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $9,551 | $9,240 |
Employee_Benefits_Plans_Detail
Employee Benefits Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Maximum employee contribution percent of annual salary | 75.00% | ' | ' |
Maximum employer matching percent of salary per pay period | 100.00% | ' | ' |
Maximum employer matching contribution, annual amount | $4,500 | $4,500 | $4,500 |
Cost recognized | $6,200,000 | $5,800,000 | $5,400,000 |
Employee_Benefits_Plans_NonQua
Employee Benefits Plans (Non-Qualified Deferred Compensation Plan) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | participant | |||
Deferred compensation plan - marketable securities [Line Items] | ' | ' | ||
Number of participants NQDC | 122 | ' | ||
Deferred compensation plan assets | $83,154 | [1] | $77,437 | [1] |
Level 1 [Member] | ' | ' | ||
Deferred compensation plan - marketable securities [Line Items] | ' | ' | ||
Deferred compensation plan assets | 81,848 | [1] | 74,091 | [1] |
Level 1 [Member] | Restricted cash equivalents [Member] | ' | ' | ||
Deferred compensation plan - marketable securities [Line Items] | ' | ' | ||
Deferred compensation plan assets | 16,699 | [1] | 17,116 | [1] |
Level 1 [Member] | Equity securities [Member] | ' | ' | ||
Deferred compensation plan - marketable securities [Line Items] | ' | ' | ||
Deferred compensation plan assets | 32,628 | [1] | 29,902 | [1] |
Level 1 [Member] | Mutual funds [Member] | ' | ' | ||
Deferred compensation plan - marketable securities [Line Items] | ' | ' | ||
Deferred compensation plan assets | 32,521 | [1] | 27,073 | [1] |
Level 2 [Member] | Fixed income securities [Member] | ' | ' | ||
Deferred compensation plan - marketable securities [Line Items] | ' | ' | ||
Deferred compensation plan assets | $1,306 | [1] | $3,346 | [1] |
[1] | Included in Deferred compensation plan - marketable securities and Deferred compensation plan - restricted cash equivalents in the accompanying consolidated balance sheets as of DecemberB 31, 2013 and DecemberB 31, 2012. |
Employee_Benefits_Plans_Gain_L
Employee Benefits Plans (Gain (Loss) NQDC Plan Investment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Gross realized gains from sale of trading securities | $2,639 | $1,530 | $823 |
Gross realized losses from sale of trading securities | 0 | -5 | 0 |
Dividend and interest income | 876 | 1,483 | 808 |
Net unrealized holding gains (losses) | 7,090 | 4,047 | -3,595 |
(Gain) loss on deferred compensation plan securities | $10,605 | $7,055 | ($1,964) |
Employee_Benefits_Plans_Other_
Employee Benefits Plans (Other Employee Benefits Plans Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Accrued compensation and related liabilities | $2,564 | $2,261 |
Service award program non-current liabilities | 5,370 | 6,888 |
Service Award Program Total Liabilities | $7,934 | $9,149 |
Credit_Facility_and_LongTerm_D2
Credit Facility and Long-Term Debt (Detail 1) (Revolving Credit Facility [Member], USD $) | 0 Months Ended |
Jun. 29, 2012 | |
Revolving Credit Facility [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Instrument, Term | '5 years 0 months 0 days |
Line of Credit Facility, Maximum Borrowing Capacity | $250,000,000 |
Increase in borrowing capacity of line of credit | $250,000,000 |
Credit_Facility_and_LongTerm_D3
Credit Facility and Long-Term Debt (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | |||
Oct. 29, 2013 | 8-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Carrying amount | ' | ' | $1,491,466,000 | $500,000,000 | ' |
Proceeds from Issuance of Long-term Debt | 991,800,000 | 499,200,000 | 991,786,000 | 500,000,000 | 0 |
Debt Instrument, Unamortized Discount | -8,200,000 | -800,000 | ' | ' | ' |
Debt Issuance Cost | 5,500,000 | 3,700,000 | ' | ' | ' |
Senior Notes [Member] | Two Point Five Percent Senior Note Maturing November 15, 2018 [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Due Date | 15-Nov-18 | ' | ' | ' | ' |
Coupon rate | 2.50% | ' | ' | ' | ' |
Effective interest rate | 2.71% | ' | ' | ' | ' |
Principal Amount | 600,000,000 | ' | 600,000,000 | 0 | ' |
Carrying amount | ' | ' | 596,920,000 | 0 | ' |
Debt Instrument, Unamortized Discount | ' | ' | -3,080,000 | 0 | ' |
Debt Instrument, Fair Value Disclosure | ' | ' | 598,836,000 | 0 | ' |
Senior Notes [Member] | Four Point One Percent Senior Note Maturing November 15, 2023 [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Due Date | 15-Nov-23 | ' | ' | ' | ' |
Coupon rate | 4.10% | ' | ' | ' | ' |
Effective interest rate | 4.29% | ' | ' | ' | ' |
Principal Amount | 400,000,000 | ' | 400,000,000 | 0 | ' |
Carrying amount | ' | ' | 395,056,000 | 0 | ' |
Debt Instrument, Unamortized Discount | ' | ' | -4,944,000 | 0 | ' |
Debt Instrument, Fair Value Disclosure | ' | ' | 392,680,000 | 0 | ' |
Senior Notes [Member] | One Point Seven Five Percent Senior Note Maturing May 15, 2017 [Member] | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Due Date | ' | 15-May-17 | ' | ' | ' |
Coupon rate | ' | 1.75% | ' | ' | ' |
Effective interest rate | ' | 1.94% | ' | ' | ' |
Principal Amount | ' | 500,000,000 | 500,000,000 | 500,000,000 | ' |
Carrying amount | ' | ' | 499,490,000 | 500,000,000 | ' |
Debt Instrument, Unamortized Discount | ' | ' | -510,000 | 0 | ' |
Debt Instrument, Fair Value Disclosure | ' | ' | $501,310,000 | $512,200,000 | ' |
Credit_Facility_and_LongTerm_D4
Credit Facility and Long-Term Debt (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Expense, Debt [Abstract] | ' | ' |
Contractual coupon interest | $14,043 | $5,682 |
Amortization of debt issuance costs | 1,114 | 648 |
Amortization of Debt Discount, Net | 343 | 102 |
Total Interest Expense related to senior notes | $15,500 | $6,432 |
Credit_Facility_and_LongTerm_D5
Credit Facility and Long-Term Debts (Details 4) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' |
2014 | $0 |
2015 | 0 |
2016 | 0 |
2017 | 500,000 |
2018 and thereafter | 1,000,000 |
Total | $1,500,000 |
Declaration_of_Dividend_Subseq1
Declaration of Dividend Subsequent to December 31, 2013 (Details) (Subsequent Event [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jan. 20, 2014 | |
Subsequent Event [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Dividends payable, amount per share | ' | $0.15 |
Dividends payable, date declared | 20-Jan-14 | ' |
Dividends payable, date of record | 10-Feb-14 | ' |
Dividends payable, date to be paid | 3-Mar-14 | ' |