Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Trading Symbol | 'NTE |
Entity Registrant Name | 'NAM TAI ELECTRONICS INC. |
Entity Central Index Key | '0000829365 |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 45,272,735 |
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 | $855,847 | [1] | $678,113 | [1] | $509,124 | [1] |
Cost of sales | -788,212 | -609,875 | -479,037 | |||
Gross profit | 67,635 | 68,238 | 30,087 | |||
General and administrative expenses | -33,317 | [2] | -20,739 | [2] | -16,779 | [2] |
Selling expenses | -462 | -1,483 | -2,886 | |||
Research and development expenses | ' | -716 | -1,709 | |||
Impairment loss on goodwill | ' | ' | -2,951 | |||
Total operating expenses | -33,779 | -22,938 | -24,325 | |||
Other operating income | 1,609 | ' | ' | |||
Income from operations | 35,465 | 45,300 | 5,762 | |||
Other income, net | 11,955 | 5,283 | 7,366 | |||
Interest income | 4,939 | 2,038 | 2,676 | |||
Income before income tax | 52,359 | 52,621 | 15,804 | |||
Income tax expense | -11,143 | -15,188 | -2,196 | |||
Income from continuing operations, net of income tax | 41,216 | 37,433 | 13,608 | |||
(Loss) income from discontinued operations, net of income tax | -40,919 | 29,488 | -13,103 | |||
Consolidated net income attributable to Nam Tai shareholders | 297 | [3] | 66,921 | [3] | 505 | [3] |
Other comprehensive income | ' | ' | ' | |||
Consolidated comprehensive income attributable to Nam Tai shareholders | $297 | $66,921 | $505 | |||
Basic earnings per share: | ' | ' | ' | |||
Basic earnings per share from continuing operations | $0.91 | $0.83 | $0.30 | |||
Basic (loss) earnings per share from discontinued operations | ($0.90) | $0.66 | ($0.29) | |||
Basic earnings per share | $0.01 | $1.49 | $0.01 | |||
Diluted earnings per share: | ' | ' | ' | |||
Diluted earnings per share from continuing operations | $0.90 | $0.83 | $0.30 | |||
Diluted (loss) earnings per share from discontinued operations | ($0.89) | $0.65 | ($0.29) | |||
Diluted earnings per share | $0.01 | $1.48 | $0.01 | |||
[1] | The net sales have excluded the sales from the discontinued operations of $93,193, $493,997 and $47,086 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||
[2] | General and administrative expenses include employee severance benefits of $180, $1,877 and $14,017 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||
[3] | "Nam Tai" refers to Nam Tai Electronics, Inc. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Sales from discontinued business | $47,086 | $493,997 | $93,193 |
Employee severance benefits | $14,017 | $1,877 | $180 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $68,707 | $157,838 |
Fixed deposits maturing over three months | 201,565 | 49,824 |
Accounts receivable, less allowance for doubtful accounts of nil and $2,119 at December 31, 2012 and 2013, respectively | 70,917 | 101,666 |
Derivative financial instrument | ' | 99 |
Inventories | 30,493 | 46,732 |
Prepaid expenses and other receivables | 5,908 | 21,143 |
Finance lease receivable -current | 3,921 | 3,583 |
Deferred tax assets-current | ' | 444 |
Income tax recoverable | ' | 169 |
Assets held for sale | 45,423 | ' |
Current assets of discontinued operations | 2,364 | 168,532 |
Total current assets | 429,298 | 550,030 |
Property, plant and equipment, net | 49,076 | 64,226 |
Finance lease receivable -non current | 4,987 | 8,553 |
Land use rights | 10,951 | 11,218 |
Deferred tax assets-non current | ' | 1,690 |
Other assets | 107 | 327 |
Total assets | 494,419 | 636,044 |
Current liabilities: | ' | ' |
Notes payable | ' | 395 |
Accounts payable | 95,303 | 141,271 |
Accrued expenses and other payables | 28,860 | 33,428 |
Dividend payable | 3,622 | 26,882 |
Income tax payable | 3,010 | 2,688 |
Current liabilities of discontinued operations | 234 | 67,209 |
Total current liabilities | 131,029 | 271,873 |
Deferred tax liabilities-non current | ' | 1,379 |
Total liabilities | 131,029 | 273,252 |
Equity: | ' | ' |
Common shares ($0.01 par value-authorized 200,000,000 shares, issued and outstanding 44,803,735 and 45,272,735 shares as at December 31, 2012 and 2013, respectively) | 453 | 448 |
Additional paid-in capital | 291,731 | 287,602 |
Retained earnings | 71,214 | 74,750 |
Accumulated other comprehensive loss | -8 | -8 |
Total Nam Tai shareholders' equity | 363,390 | 362,792 |
Total liabilities and equity | $494,419 | $636,044 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $2,119 | ' |
Common shares, par value | $0.01 | $0.01 |
Common shares, authorized | 200,000,000 | 200,000,000 |
Common shares, issued | 45,272,735 | 44,803,735 |
Common shares, outstanding | 45,272,735 | 44,803,735 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2010 | $334,134 | $448 | $286,943 | $46,751 | ($8) | |
Balance (in shares) at Dec. 31, 2010 | ' | 44,803,735 | ' | ' | ' | |
Equity-settled share-based payment | 112 | ' | 112 | ' | ' | |
Consolidated net income | 505 | [1] | ' | ' | 505 | ' |
Cash dividends declared ($0.08 per share in 2013, 0.60 per share in 2012, $0.28 per share in 2011) | -12,545 | ' | ' | -12,545 | ' | |
Balance at Dec. 31, 2011 | 322,206 | 448 | 287,055 | 34,711 | -8 | |
Balance (in shares) at Dec. 31, 2011 | ' | 44,803,735 | ' | ' | ' | |
Equity-settled share-based payment | 547 | ' | 547 | ' | ' | |
Consolidated net income | 66,921 | [1] | ' | ' | 66,921 | ' |
Cash dividends declared ($0.08 per share in 2013, 0.60 per share in 2012, $0.28 per share in 2011) | -26,882 | ' | ' | -26,882 | ' | |
Balance at Dec. 31, 2012 | 362,792 | 448 | 287,602 | 74,750 | -8 | |
Balance (in shares) at Dec. 31, 2012 | ' | 44,803,735 | ' | ' | ' | |
Shares issued on exercise of options | 2,598 | 5 | 2,593 | ' | ' | |
Shares issued on exercise of options (in shares) | 469,000 | 469,000 | ' | ' | ' | |
Equity-settled share-based payment | 1,536 | ' | 1,536 | ' | ' | |
Consolidated net income | 297 | [1] | ' | ' | 297 | ' |
Cash dividends declared ($0.08 per share in 2013, 0.60 per share in 2012, $0.28 per share in 2011) | -3,622 | ' | ' | -3,622 | ' | |
Cash dividend paid | -211 | ' | ' | -211 | ' | |
Balance at Dec. 31, 2013 | $363,390 | $453 | $291,731 | $71,214 | ($8) | |
Balance (in shares) at Dec. 31, 2013 | ' | 45,272,735 | ' | ' | ' | |
[1] | "Nam Tai" refers to Nam Tai Electronics, Inc. |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' |
Cash dividends declared, per share | $0.08 | $0.60 | $0.28 |
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: | ' | ' | ' | |||
Consolidated net income | $297 | [1] | $66,921 | [1] | $505 | [1] |
Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities: | ' | ' | ' | |||
Depreciation and amortization | 21,355 | 26,133 | 16,068 | |||
Impairment loss on goodwill | ' | ' | 2,951 | |||
Allowance (reversal) for inventories | -526 | 1,282 | 83 | |||
Provision (reversal) for goods return | -402 | 402 | ' | |||
Allowance for doubtful accounts | 2,158 | 45 | 5 | |||
Loss (gain) on disposal of property, plant and equipment | -3,096 | -810 | 231 | |||
Gain on disposal of idle property, plant and equipment | -1,352 | ' | ' | |||
Loss on disposal of other assets | 366 | ' | ' | |||
Impairment loss on fixed assets and land use rights | 34,955 | ' | ' | |||
Loss (gain) on derivative financial instruments | -580 | 57 | ' | |||
Share-based compensation expenses | 1,536 | 547 | 112 | |||
Loss on liquidation of a subsidiary | 235 | ' | ' | |||
Unrealized exchange gain | -2,087 | -648 | -4,134 | |||
(Increase) decrease in deferred income taxes | 4,498 | 5,460 | -2,538 | |||
Changes in current assets and liabilities: | ' | ' | ' | |||
(Increase) decrease in accounts receivable | 82,633 | -81,245 | -298 | |||
(Increase) decrease in inventories | 25,671 | -25,064 | -2,881 | |||
(Increase) decrease in prepaid expenses and other receivables | 21,656 | -10,030 | -14,207 | |||
Decrease (increase) in income tax recoverable | 169 | -169 | 105 | |||
Increase (decrease) in notes payable | -4,273 | 4,005 | 268 | |||
(Decrease) increase in accounts payable | -92,137 | 104,385 | -1,535 | |||
Increase (decrease) in accrued expenses and other payables | -8,891 | 15,340 | 4,173 | |||
(Decrease) increase in income tax payable | -143 | 3,160 | -4,228 | |||
Total adjustments | 81,745 | 42,850 | -5,825 | |||
Net cash (used in) provided by operating activities | 82,042 | 109,771 | -5,320 | |||
Cash flows from investing activities: | ' | ' | ' | |||
Purchase of property, plant and equipment and land use rights | -3,653 | -58,444 | -59,858 | |||
(Increase) decrease in deposits for purchase of property, plant and equipment | ' | 4,543 | -4,066 | |||
Increase in other assets | ' | ' | -713 | |||
(Payments for) cash received from derivative financial instruments | 679 | -156 | ' | |||
Proceeds from disposal of property, plant and equipment and other assets | 9,752 | 264 | 52 | |||
Proceeds from disposal of idle property, plant and equipment | 1,352 | ' | ' | |||
Cash received from finance lease receivable | 3,228 | 1,864 | ' | |||
Increase in fixed deposits maturing over three months | -151,741 | -14,999 | -34,825 | |||
Net cash used in investing activities | -140,383 | -66,928 | -99,410 | |||
Cash flows from financing activities: | ' | ' | ' | |||
Cash dividends paid | -27,093 | -12,545 | -8,961 | |||
Proceeds from shares issued on exercise of options | 2,598 | ' | ' | |||
Proceeds from (repayment of) Trust Receipt loans | -3,558 | 3,558 | ' | |||
Proceeds from (repayment of) bank loans | -4,824 | 4,824 | ' | |||
Net cash used in financing activities | -32,877 | -4,163 | -8,961 | |||
Net (decrease) increase in cash and cash equivalents | -91,218 | 38,680 | -113,691 | |||
Cash and cash equivalents at beginning of year | 157,838 | 118,510 | 228,067 | |||
Effect of exchange rate changes on cash and cash equivalents | 2,087 | 648 | 4,134 | |||
Cash and cash equivalents at end of year | 68,707 | 157,838 | 118,510 | |||
Supplemental schedule of cash flow information: | ' | ' | ' | |||
Interest paid | 97 | 278 | ' | |||
Income taxes paid | 10,232 | 8,464 | 7,136 | |||
Non-cash investing activities: | ' | ' | ' | |||
Increase (decrease) in construction cost funded through accrued expenses and other payables | ($3,342) | ($12,296) | $16,629 | |||
[1] | "Nam Tai" refers to Nam Tai Electronics, Inc. |
Company_Information
Company Information | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Company Information | ' | |
1 | Company Information | |
Nam Tai Electronics, Inc. and subsidiaries (the “Company” or “Nam Tai”) is an electronics manufacturing and design services provider to a selected group of the world’s leading original equipment manufacturers, or OEMs, of telecommunication and consumer electronic products. Through its electronics manufacturing services operations, the Company manufactures electronic components and sub-assemblies, including flexible printed circuit board (“FPCB”), FPCB subassemblies, Thin Film Transistor display (TFT-LCD) modules, image sensors modules and printed circuit board assemblies. These components, modules and subassemblies are used in numerous electronic products including mobile phones, digital cameras, electronic toys, and automobile. The Company also manufactures finished products, including mobile phone accessories and home entertainment products. | ||
The Company was founded in 1975 and moved its manufacturing facilities to the People’s Republic of China (“PRC”) in 1980 to take advantage of lower overhead costs, lower material costs and competitive labor rates available and subsequently relocated to Shenzhen, PRC in order to capitalize on opportunities offered in Southern PRC. The Company was reincorporated as a limited liability International Business Company under the laws of the British Virgin Islands (“BVI”) in August 1987 (which was amended in 2004 as The British Virgin Islands Business Companies Act, 2004). The Company’s principal manufacturing and design operations are based in Shenzhen, approximately 30 miles from Hong Kong. Its PRC headquarters are located in Shenzhen. Some of the subsidiaries’ offices are located in Hong Kong, which provide them access to Hong Kong’s infrastructure of communication and banking facilities. The Company’s principal manufacturing operations are conducted in the PRC. The PRC resumed sovereignty over Hong Kong effective July 1, 1997, and, politically, Hong Kong is an integral part of the PRC. However, for simplicity and as a matter of definition only, our references to PRC in these consolidated financial statements mean the PRC and all of its territories excluding Hong Kong. | ||
In 2011, the Company operated in two reportable segments –Telecommunication Components Assembly (“TCA”) and Consumer Electronics and Communication Products (“CECP”). | ||
In 2012, the CECP segment fell below the threshold and it was combined with the TCA segment. The Company’s business was then separated into TCA and Flexible Printed Circuit (“FPC”) segments. Since the first quarter of 2013, the FPC segment has been discontinued and only one TCA segment still existed. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Summary of Significant Accounting Policies | ' | ||||
2 | Summary of Significant Accounting Policies | ||||
(a) | Principles of consolidation | ||||
The consolidated financial statements include the financial statements of the Company and all of its subsidiaries. The Company consolidates companies in which it has controlling interest of over 50%. All significant intercompany accounts, transactions and cash flows have been eliminated on consolidation. | |||||
(b) | Cash and cash equivalents | ||||
Cash and cash equivalents include all cash balances and certificates of deposit having a maturity date of three months or less upon acquisition. | |||||
(c) | Allowance for doubtful accounts | ||||
Accounts receivable balance is recorded net of allowances for amounts not expected to be collected from customers. Because the accounts receivable are typically unsecured, the Company periodically evaluates the collectability of accounts based on a combination of factors, including a particular customer’s ability to pay as well as the age of the receivables. To evaluate a specific customer’s ability to pay, the Company analyzes financial statements, payment history, third-party credit analysis reports and various information or disclosures by the customer or other publicly available information. In cases where the evidence suggests a customer may not be able to satisfy its obligation to the Company, a specific allowance would be set up for the perceived risk. If the financial condition of customers deteriorates, resulting in an impairment of their ability to make payments, additional allowances may be required. | |||||
(d) | Derivative financial instrument | ||||
Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates. Derivative financial instruments are adopted to prudently manage foreign currency exchange rates and not for the purpose of creating speculative positions. Derivatives that we use are primarily foreign currency forward contracts which are either recorded as either assets or liabilities at fair value. Any gains or losses derived from derivative financial instruments are recognized in the consolidated statement of comprehensive income. | |||||
(e) | Inventories | ||||
Inventories are stated at the lower of cost or market value. Cost is determined on the first-in, first-out basis. The standard cost of work-in-progress and finished goods comprises direct materials, labor and manufacturing overheads. Write downs of potentially obsolete or slow-moving inventory are recorded based on management’s analysis of inventory levels. | |||||
For the Company’s FPC and TCA reporting units, the Company orders inventory from its suppliers based on firm customer orders for products that are unique to each customer. The inventory is utilized in production as soon as all the necessary components are received. The only reason that inventory would not be utilized within six months is if a specific customer deferred or canceled an order. As the inventory is typically unique to each customer’s products, it is unusual for the Company to be able to utilize the inventory for other customers’ products. Therefore, the Company’s policy is to negotiate with the customer for the disposal of such inventory that remains unused for six months. The Company does not generally write down its inventories as usually, the customers are held to their purchase commitments. However, there are cases where customers are contractually obligated to purchase the unused inventory from the Company, but the Company may elect not to immediately enforce such contractual right for business reasons. In this connection, the Company will consider writing down these inventory items which remained unused for over six months at the Company’s own cost. Prior to writing down, management would determine if the inventory can be utilized in other products. | |||||
(f) | Finance lease receivable | ||||
Finance lease receivable is derived from sales of property, plant and equipment and is comprised of the minimum lease payments due on the direct financial lease. From April 1, 2012, monthly interest income has been recognized in the consolidated statement of comprehensive income based on principal balance of $14,000 at an annual interest rate of 10%. | |||||
(g) | Property, plant and equipment and land use rights | ||||
Property, plant and equipment and land use rights are recorded at cost and include interest on funds borrowed to finance construction, if applicable. For the years ended December 31, 2011, 2012 and 2013, interest of $13, nil and nil was capitalized, respectively. The cost of major improvements and betterments is capitalized whereas the cost of maintenance and repairs is expensed in the year incurred. Assets under construction are not depreciated until construction is completed and the assets are ready for their intended use. Gains and losses from the disposal of property, plant and equipment and land use rights are included in the consolidated statement of comprehensive income. | |||||
The majority of the land in Hong Kong is owned by the government of Hong Kong which leases the land at public auction to non-governmental entities. All of the Company’s leasehold land in Hong Kong have leases of not more than 50 years from the respective balance sheet dates. The cost of such leasehold land is amortized on a straight-line basis over the respective terms of the leases. | |||||
All land in other regions of the PRC is owned by the PRC government. The government in the PRC, according to PRC law, may sell the right to use the land for a specified period of time. Thus, all of the Company’s land purchases in the PRC are considered to be leasehold land and are classified as land use rights in the consolidated balance sheet. They are amortized on a straight-line basis over the respective term of the right to use the land. The land use right certificate in respect of the land in Wuxi with carrying amount of $3,834 has been issued by the relevant government authority in the PRC on March 4, 2014. | |||||
Since August 1, 2009, in order to reflect a more reasonable estimation on the useful lives of the property, plant and equipment, the Company computed depreciation expenses using the straight-line method at the following depreciation rates: | |||||
Classification | Prior to August 1, 2009 | Years | |||
Land use rights | 50 years | 50 years | |||
Buildings | 20 to 50 years | 20 years | |||
Machinery and equipment | 4 to 12 years | 4 years | |||
Leasehold improvements | shorter of lease term or 7 years | shorter of lease term or 4 years | |||
Furniture and fixtures | 4 to 8 years | 4 years | |||
Automobiles | 4 to 6 years | 4 years | |||
Tools and molds | 4 to 6 years | 2 years | |||
(h) | Goodwill | ||||
The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. Goodwill is not amortized, but is tested for impairment at the reporting unit level at least on an annual basis at the balance sheet date or more frequently if certain indicators arise. In 2011, the Company operated in two reporting units, which are its reportable segments of TCA and CECP. If business conditions or other factors cause the profitability and cash flows of a segment to decline, the Company may be required to record impairment charges for goodwill at that time. The goodwill impairment review is a two-step process in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-20 “Goodwill”. First step consists of a comparison of the fair value of a reporting unit with its carrying value. An impairment loss may be recognized if the review indicates that the carrying value of a reporting unit exceeds its fair value. Estimates of fair value are primarily determined by using discounted cash flows method. If the carrying amount of a reporting unit exceeds its fair value, second step requires the fair value of the reporting unit to be allocated to all of the assets and liabilities (including any unrecognized intangible assets) of that reporting unit, resulting in an implied fair value of goodwill. If the carrying amount of the goodwill of the reporting unit exceeds the implied fair value, an impairment loss is recognized which is equal to the excess of the carrying amount over the fair value. | |||||
The impairment review is highly judgmental and involves the use of significant estimates and assumptions. These estimates and assumptions have a significant impact on the amount of any impairment loss recognized. Discounted cash flow methodology is based on a number of estimates and assumptions, including the projected future operating results of the reporting unit, discount rate, long-term growth rate and appropriate market comparables. | |||||
Impairment loss on goodwill of the CECP reporting unit of $2,951 was identified and recognized in 2011. Goodwill has been fully impaired since December 31, 2011. | |||||
(i) | Impairment or disposal of long-lived assets | ||||
Long-lived assets are included in impairment evaluations when events and circumstances exist that indicate the carrying value of these assets may not be recoverable. In accordance with FASB ASC 360 “Property, Plant and Equipment”, the Company assesses the recoverability of the carrying value of long-lived assets by first grouping its long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the asset group) and, secondly, estimating the undiscounted future cash flows that are directly associated with and expected to arise from the use of and eventual disposition of such asset group. The Company estimates the undiscounted cash flows over the remaining useful life of the primary asset within the asset group. If the carrying value of the asset group exceeds the estimated undiscounted cash flows, the Company recognizes an impairment loss to the extent the carrying value of the long-lived asset exceeds its fair value. The Company determines fair value through quoted market prices in active markets or, if quotations of market prices are unavailable, through the performance of internal analysis using a discounted cash flow methodology or obtains external appraisals from independent valuation firms. The undiscounted and discounted cash flow analyses based on a number of estimates and assumptions, including the expected period over which the asset will be utilized, projected future operating results of the asset group, discount rate and long-term growth rate. | |||||
Long-lived assets to be disposed of are stated at the lower of fair value or carrying value. Expected future operating losses from discontinued operations are recorded in the periods in which the losses are incurred. In view of the sustained level of the Company’s stock price during 2011 and our resulting market capitalization throughout 2011 at a level below our recorded book value at December 31, 2011, in accordance with FASB ASC 360 “Property, Plant and Equipment”, the Company conducted a review of Nam Tai’s long-lived assets for potential impairment. | |||||
In 2011, management assessed and determined that there were no events or changes in circumstances to indicate that the carrying amounts of long-lived assets in Nam Tai’s Shenzhen facilities were not recoverable and there were no impairment tests conducted with respect to those assets. However, in view of the continuous operating losses and negative cash flows in Nam Tai’s Wuxi facilities, the Company assessed the impairment of its long-lived assets used in the Wuxi facilities, by comparing the undiscounted cash flows with the carrying amounts of the assets. The results indicated that the carrying amounts of the Company’s long-lived assets at December 31, 2011 were less than the undiscounted cash flows. | |||||
In 2012, management assessed and determined that there were no events or changes in circumstances to indicate that the carrying amount of long-lived assets in Nam Tai’s Shenzhen facilities were not recoverable and there were no impairment tests conducted with respect to those assets. In view of the fluctuations of future customer orders in Wuxi, the Company assessed the impairment of its long-lived assets used in the Wuxi facilities, by comparing the undiscounted cash flows with the carrying amounts of the assets. The results indicated the carrying amounts of the company’s long-lived assets at December 31, 2012 were less than the undiscounted cash flows. | |||||
In 2013, in view of the cessation of the core business of Liquid Crystal Display Modules (“LCM”) production in Shenzhen, which is classified as TCA segment, by the end of April 2014, the Company assessed the impairment of its long-lived assets used in the Shenzhen facilities, by comparing the undiscounted cash flows with the carrying amounts of the assets. The results indicated the carrying amounts of the Company’s long-lived assets at December 31, 2013 were less than the undiscounted cash flows. | |||||
No impairment was recognized in respect of the Company’s long-lived assets for the years ended December 31, 2011, 2012 and 2013. | |||||
A loss of $34,955 was recognized to write down the long-lived assets to their fair values upon reclassification to assets held for sale. | |||||
(j) | Assets held for sale | ||||
Long-lived assets or asset groups that are part of a disposal group that meets the criteria to be classified as held for sale are not assessed for impairment but rather if fair value, less cost to sell, of the disposal group is less than its carrying value a loss is recorded against the disposal group. | |||||
(k) | Accruals and provisions for loss contingencies | ||||
The Company makes provisions for all loss contingencies when information available prior to the issuance of the consolidated financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the consolidated financial statements and the amount of loss can be reasonably estimated. | |||||
For provisions or accruals related to litigation, the Company makes provisions based on information from legal counsels and the best estimation of management. The Company assesses the potential liability for the significant legal proceedings in accordance with FASB ASC 450 “Contingencies”. FASB ASC 450 requires a liability to be recorded if the contingency loss is probable and the amount of loss can be reasonably estimated. The actual resolution of the contingency may differ from the Company’s estimates. If the contingency is settled for an amount greater than the estimate, a future charge to income would result. Likewise, if the contingency is settled for an amount that is less than our estimate, a future credit to income would result. | |||||
(l) | Revenue recognition | ||||
The Company recognizes revenue when all of the following conditions are met: | |||||
• | Persuasive evidence of an arrangement exists; | ||||
• | Delivery has occurred or services have been rendered; | ||||
• | Price to the customer is fixed or determinable; and | ||||
• | Collectability is reasonably assured. | ||||
Revenue from sales of products is recognized when the title is passed to customers upon shipment and when collectability is reasonably assured. The Company does not provide its customers with the right of return (except for quality), price protection, rebates or discounts. There are no customer acceptance provisions associated with the Company’s products, except for quality. All sales are based on firm customer orders with fixed terms and conditions, which generally cannot be modified. | |||||
(m) | Shipping and handling costs | ||||
Shipping and handling costs are classified as cost of sales for materials purchased and selling expenses for those costs incurred in the delivery of finished products. During the years ended December 31, 2011, 2012 and 2013, shipping and handling costs classified as costs of sales were $366, $227 and $14, respectively. During the years ended December 31, 2011, 2012 and 2013, shipping and handling costs classified as selling expenses were $428, $301 and $104, respectively. | |||||
(n) | Research and development costs | ||||
Research and development costs are incurred in the development of new products and processes, including significant improvements and refinements to existing products and are expensed as incurred. | |||||
(o) | Advertising expenses | ||||
The Company expenses advertising costs as incurred. Advertising expenses were nil, $348 and $1 for the year ended December 31, 2011, 2012 and 2013, respectively. | |||||
(p) | Staff retirement plan costs | ||||
The Company’s costs related to the staff retirement plans (see Note 16) are charged to the consolidated statement of comprehensive income as incurred. | |||||
(q) | Income taxes | ||||
Deferred income taxes are provided using the asset and liability method in accordance with FASB ASC 740 “Income Taxes”. Under this method, deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the consolidated financial statements or the expected date of reversal of the timing differences. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all, the deferred tax asset will not be realized. | |||||
FASB ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements, and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides accounting guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Interest and penalties from tax assessments, if any, are included in income taxes in the consolidated statement of comprehensive income. | |||||
(r) | Foreign currency transactions and translations | ||||
All transactions in currencies other than functional currencies during the year are translated at the exchange rates prevailing on the respective transaction dates. Monetary assets and liabilities existing at the balance sheet date denominated in currencies other than functional currencies are remeasured at the exchange rates existing on that date. Exchange differences are recorded in the consolidated statement of comprehensive income. | |||||
The functional currencies of the Company and its subsidiaries include the U.S. dollar and the Hong Kong dollar. The financial statements of all subsidiaries are translated in accordance with FASB ASC 830 “Foreign Currency Matters”. | |||||
All assets and liabilities are translated at the rates of exchange ruling at the balance sheet date and all income and expense items are translated at the average rates of exchange over the year. All exchange differences arising from the translation of subsidiaries’ financial statements are recorded as a component of comprehensive income. | |||||
(s) | Earnings per share | ||||
Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the year. | |||||
Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the year. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. | |||||
(t) | Stock options | ||||
The Company has two stock-based employee compensation plans, as more fully described in Note 14(b). The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service, the requisite service period (usually the vesting period), in exchange for the award. The grant-date fair value of employee share options and similar instruments are estimated using option-pricing models. If the award is modified after the grant date, incremental compensation cost is recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. | |||||
(u) | Use of estimates | ||||
The preparation of consolidated 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||
(v) | Comprehensive loss | ||||
Accumulated other comprehensive loss represents principally foreign currency translation adjustments and is included in the consolidated statement of changes in equity. | |||||
(w) | Fair value of financial instruments | ||||
The Company follows FASB ASC 820 “Fair Value Measurements and Disclosures” to measure its assets and liabilities. | |||||
Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and based the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | |||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||
Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||
Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | |||||
The carrying amounts of cash and cash equivalents, fixed deposits maturing over three months, accounts receivable, other receivables, notes payable, accrued expenses and accounts payable, trust receipt loans, other payables, short term borrowings, and dividend payable approximate their fair values due to the short term nature of these instruments. | |||||
The fair value of the Company’s derivative financial instruments is detailed in Note 4. | |||||
As of December 31, 2012 and 2013, the Company did not have any non financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements, at least annually, on a recurring basis. | |||||
(x) | Concentration of other risk | ||||
The market for our products is characterized by rapidly changing technology and evolving industry standards. The Company’s results of operations are affected by a wide variety of factors, including general economic conditions; manufacturing capacity; the ability to manufacture efficiently; demand for the Company’s products; competition and intellectual property in a rapidly evolving market. As a result, the Company may experience substantial period-to-period fluctuations in future operating results due to the factors mentioned above. | |||||
(y) | Recent changes in accounting standards | ||||
In March 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-05, “Foreign Currency Matters (Topic 830)”. The objective of this Update is to resolve the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. This accounting standard update is effective prospectively for annual and interim periods beginning after December 31, 2013. The Company believes that its adoption of this Update will not have any material impact on its consolidated financial statements. | |||||
In April 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205), Liquidation of Accounting”. The amendments of this Update are being issued to clarify when an entity should apply the liquidation basis of accounting. The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis so accounting. The amendments apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP except investment companies that are regulated under the Investment Company Act of 1940. The amendments are effective for entities that determine liquidation imminent during annual reporting periods beginning after December 15, 2013. The Company does not expect the adoption of this Update will have material impact on its consolidated financial statements. | |||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The current practice in FASB ASC 740, “Income Taxes” does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The objective of this Update is to eliminate the diversity in practice in the presentation of unrecognized tax benefits. This accounting standard update is effective for fiscal years, and interim within those years, beginning after December 15, 2013. Early adoption is permitted. The Company believes that its adoption of this Update will not have any material impact on its consolidated financial statements. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
3 | Inventories | ||||||||
Inventories consist of the following: | |||||||||
At December 31, | 2012 | 2013 | |||||||
Raw materials | $ | 30,914 | $ | 20,580 | |||||
Work-in-progress | 11,189 | 8,647 | |||||||
Finished goods | 4,629 | 1,266 | |||||||
$ | 46,732 | $ | 30,493 | ||||||
Derivative_Financial_Instrumen
Derivative Financial Instrument | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Financial Instrument | ' | ||||||||||||
4 | Derivative Financial Instrument | ||||||||||||
Starting from 2012, the Company entered into foreign currency forward contracts to partially offset the foreign currency exchange gains and losses for transactions denominated in non-functional currencies. However, the Company may choose not to hedge certain foreign currency exchange exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange rates. | |||||||||||||
The Company’s derivatives that are not designated as hedging instruments are adjusted to fair value through consolidated statement of comprehensive income to which the derivative relates. The gain (loss) recognized in other income and expense for foreign currency forward contracts not designated as hedging instruments was not significant during 2012 and 2013. No foreign currency forward contract was outstanding as of December 31, 2013. | |||||||||||||
The following table shows the notional principal amount of the Company’s outstanding derivative instrument, its credit risk amount and its fair value associated with outstanding or unsettled derivative instrument as of December 31, 2012 and 2013. | |||||||||||||
2012 | |||||||||||||
Notional | Credit risk | Fair value of | |||||||||||
principal | amount | derivatives not | |||||||||||
designated as hedge | |||||||||||||
instrument | |||||||||||||
Instruments not designated as accounting hedge: | |||||||||||||
Foreign currency forward contract (1) | $ | 12,200 | $ | 99 | $ | 99 | |||||||
2013 | |||||||||||||
Notional | Credit risk | Fair value of | |||||||||||
principal | amount | derivatives not | |||||||||||
designated as hedge | |||||||||||||
instrument | |||||||||||||
Instruments not designated as accounting hedge: | |||||||||||||
Foreign currency forward contract (1) | $ | — | $ | — | $ | — | |||||||
-1 | The fair value is measured using Level 2 fair value inputs and is recorded as current assets in the consolidated balance sheet. | ||||||||||||
The notional principal amount for outstanding derivative instrument provides one measure of the transaction volume outstanding and does not represent the amount of the Company’s exposure to credit or market loss. The credit risk amount represents the Company’s gross exposure to potential accounting loss on derivative instrument that is outstanding or unsettled if the counterparty failed to perform according to the terms of the contract, based on then-current currency exchange rate at each respective date. The Company’s exposure to credit loss and market risk will vary over time as a function of currency exchange rates. Although the table above reflects the notional principal and credit risk amount of the Company’s foreign exchange instrument, it does not reflect the gains or losses associated with the exposures and transactions that the foreign exchange instrument is intended to hedge. The amount ultimately realized upon settlement of the financial instrument, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instrument. |
Finance_Lease_Receivable
Finance Lease Receivable | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Finance Lease Receivable | ' | ||||
5 | Finance Lease Receivable | ||||
Contractual maturities on finance lease receivable are as follows: | |||||
Years ending December 31, | Contractual maturities | ||||
2014 | $ | 3,921 | |||
2015 | 3,939 | ||||
2016 | 1,048 | ||||
Total | $ | 8,908 | |||
Assets_Held_for_Sale
Assets Held for Sale | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Text Block [Abstract] | ' | ||||
Assets Held for Sale | ' | ||||
6 | Assets Held for Sale | ||||
The Company has fully discontinued its production in Wuxi by the end of June 2013 due to sustained losses generated from FPC production and a lack of customers for LCM for tablets. Hence, management intends to sell all long-lived assets in Wuxi plant and thus reclassified these long lived assets as assets held for sale with carrying value of $43,385. The sales are expected to be finalized in 2014. In addition, a subsidiary of the Company has entered into sales and purchase contracts with third parties mainly in November 2013 for assets with a carrying value of $2,038. The sales are expected to be finalized by the end of March 2014. Assets held for sale comprise the following: | |||||
At December 31, | 2013 | ||||
At net book value: | |||||
Land | $ | 4,215 | |||
Buildings | 18,784 | ||||
Machinery and equipment | 19,625 | ||||
Leasehold improvements | 2,429 | ||||
Others | 370 | ||||
Total | $ | 45,423 | |||
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment, Net | ' | ||||||||
7 | Property, Plant and Equipment, net | ||||||||
Property, plant and equipment, net consist of the following: | |||||||||
At December 31, | 2012 | 2013 | |||||||
At cost: | |||||||||
Buildings | $ | 55,156 | $ | 54,557 | |||||
Machinery and equipment | 41,239 | 41,338 | |||||||
Leasehold improvements | 13,044 | 16,821 | |||||||
Furniture and fixtures | 3,782 | 506 | |||||||
Automobiles | 288 | 179 | |||||||
Tools and molds | 111 | 120 | |||||||
Total | 113,620 | 113,521 | |||||||
Less: accumulated depreciation | (76,698 | ) | (64,479 | ) | |||||
36,922 | 49,042 | ||||||||
Construction in progress | 27,304 | 34 | |||||||
Net book value | $ | 64,226 | $ | 49,076 | |||||
Depreciation expenses were $5,240, $7,929 and $12,781 for the years ended December 31, 2011, 2012 and 2013, respectively. |
Goodwill
Goodwill | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Goodwill | ' | ||||
8 | Goodwill | ||||
A summary of the changes in the carrying value of goodwill, by reporting unit, is as follows: | |||||
CECP | |||||
reporting unit | |||||
At January 1, 2011 | $ | 2,951 | |||
Impairment loss recognized during the year | (2,951 | ) | |||
At December 31, 2011, 2012 and 2013 | — | ||||
In 2011, the Company performed an impairment test for goodwill by comparing the fair value of the CECP reporting unit with its carrying amount, including goodwill. The fair value of the CECP reporting unit was determined using a discounted cash flow methodology, based on a discount rate of 8.17% and expected future cash flows provided by management. As there were only two customers left in the CECP segment, the future cash flows were significantly reduced, therefore, the fair value of the CECP reporting unit was less than its carrying value (including goodwill) as of December 31, 2011. The Company further performed step 2 of the impairment test and allocated the fair value of the CECP reporting unit to all assets and liabilities, and to any unrecognized intangibles, as if the CECP reporting unit had been acquired at December 31, 2011. As the implied fair value of goodwill was zero, an impairment loss of $2,951 was recognized in 2011. Goodwill has been fully impaired since December 31, 2011. |
Investments_in_Subsidiaries
Investments in Subsidiaries | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | ' | ||||||||||||
Investments in Subsidiaries | ' | ||||||||||||
9 | Investments in Subsidiaries | ||||||||||||
Subsidiaries | Place of | Principal | Percentage of Ownership as | ||||||||||
Incorporation | activity | at December 31, | |||||||||||
2012 | 2013 | ||||||||||||
Consolidated principal subsidiaries: | |||||||||||||
Nam Tai Electronic & Electrical Products Limited (“NTEEP”) | Cayman Islands | Investment holding | 100 | % | 100 | % | |||||||
Nam Tai Holdings Limited (“NTHL”) | BVI | Investment holding | 100 | % | 100 | % | |||||||
Nam Tai Group Management Limited (“NTGM”) | Hong Kong | Inactive | 100 | % | 100 | % | |||||||
Nam Tai Telecom (Hong Kong) Company Limited (“NTT”) | Hong Kong | Inactive | 100 | % | 100 | % | |||||||
Nam Tai Trading Company Limited (“NTTC”) (1) | Hong Kong | In liquidation | 100 | % | — | ||||||||
J.I.C. Enterprises (HK) Ltd. (“JICE”) (2) | Hong Kong | Inactive | 100 | % | 100 | % | |||||||
Namtai Investment (Shenzhen) Co., Ltd. (“NTISZ”) | PRC | Investment holding | 100 | % | 100 | % | |||||||
Zastron Electronic (Shenzhen) Co., Ltd. (“Zastron Shenzhen”) | PRC | Manufacturing and | 100 | % | 100 | % | |||||||
trading | |||||||||||||
Wuxi Zastron Precision-Flex Co., Ltd. (“Wuxi Zastron-Flex”) | PRC | Manufacturing and | 100 | % | 100 | % | |||||||
trading | |||||||||||||
-1 | NTTC is in liquidation and the Joint and Several Liquidators confirmed that all assets of NTTC have been taken over by the Joint and Several Receivers in January 2013. | ||||||||||||
-2 | NTHL acquired a 100% equity interest in JICE for a consideration of HK$1.00 on August 2, 2012, which was incorporated in February 1983 in Hong Kong. JICE’s issued share capital amounted to HK$500,000, which is made up of 500,000 ordinary shares of HK$1 each. The primary reason for the acquisition was for re-organization. |
Retained_Earnings_and_Reserves
Retained Earnings and Reserves | 12 Months Ended | |
Dec. 31, 2013 | ||
Text Block [Abstract] | ' | |
Retained Earnings and Reserves | ' | |
10 | Retained Earnings and Reserves | |
The Company’s retained earnings are not restricted as to the payment of dividends except to the extent dictated by prudent business practices. The Company believes that there are no material restrictions, including foreign exchange controls, on the ability of its non-PRC subsidiaries to transfer surplus funds to the Company in the form of cash dividends, loans, advances or purchases. With respect to the Company’s PRC subsidiaries, there are restrictions on the payment of dividends and the distribution of dividends from the PRC. On March 16, 2007, the PRC promulgated the Law of the PRC on Enterprise Income Tax (the “New Law”) by Order No. 63 of the President of the PRC. Please refer to Note 17 for further details of the New Law. The New Law became effective from January 1, 2008. Prior to the enactment of the New Law, when dividends were paid by the Company’s PRC subsidiaries, such dividends would reduce the amount of reinvested profits and accordingly, the refund of taxes paid might be reduced to the extent of tax applicable to profits not reinvested. Subsequent to the enactment of the New Law, due to the removal of tax benefit related to reinvestment of capital in PRC subsidiaries, the Company may not reinvest the profits made by the PRC subsidiaries. Payment of dividends by PRC subsidiaries to foreign investors on profits earned subsequent to January 1, 2008 will also be subject to withholding tax under the New Law. In addition, pursuant to the relevant PRC regulations, a certain portion of the profits made by these subsidiaries must be set aside for future capital investment and are not distributable, and the registered capital of the Company’s PRC subsidiaries are also restricted. These reserves and registered capital of the PRC subsidiaries amounted to $350,256 and $353,270 as of December 31, 2012 and 2013, respectively. However, the Company believes that such restrictions will not have a material effect on the Company’s liquidity or cash flows. |
Accrued_Expenses_and_Other_Pay
Accrued Expenses and Other Payables | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Accrued Expenses and Other Payables | ' | ||||||||
11 | Accrued Expenses and Other Payables | ||||||||
Accrued expenses and other payables consisted of the following: | |||||||||
At December 31, | 2012 | 2013 | |||||||
Accrued salaries | $ | 3,404 | $ | 13,821 | |||||
Accrued bonus | 3,346 | 221 | |||||||
Accrued tooling and equipment charges | 865 | 141 | |||||||
Accrued professional fees | 2,287 | 1,262 | |||||||
Construction payable | 4,850 | 319 | |||||||
Advance received from customers | 16,644 | 10,821 | |||||||
Others | 2,032 | 2,275 | |||||||
$ | 33,428 | $ | 28,860 |
Bank_Loans_and_Banking_Facilit
Bank Loans and Banking Facilities | 12 Months Ended | |
Dec. 31, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Bank Loans and Banking Facilities | ' | |
12 | Bank Loans and Banking Facilities | |
The subsidiaries of the Company have credit facilities with various banks representing notes payable, trade acceptances, import facilities, revolving loans and overdrafts. At December 31, 2012 and 2013, these facilities totaled $176,256 and $49,505, of which $161,794 and $49,505 were unused at December 31, 2012 and 2013, respectively. The banking facility at December 31, 2013 will mature in April 2014. Interest rates are generally based on the banks’ usual lending rates in Hong Kong or the PRC and the credit lines are normally subject to annual review. The banking facilities are secured by cross guarantee given by NTISZ together with Zastron Shenzhen or alone. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||
Discontinued Operations | ' | ||||||||||||
13 | Discontinued Operations | ||||||||||||
In 2012, the Company decided to exit its LCDP (“Liquid Crystal Display Product”) business which produced LCD modules. The operation of this LCDP business ceased in December 2012. | |||||||||||||
In 2013, after the final evaluation on the viability of its core business of LCM and FPC production, the Company decided to exit its FPC operation by the end of March 2013 as it has been generating losses since initial production, and production operation of LCMs for tablets by the end of June 2013 due to a lack of customer orders. These productions were located primarily in Wuxi. | |||||||||||||
Assets of $43,385 have been classified as assets held for sale (Note 6) and are expected to be sold within 2014. | |||||||||||||
Summarized financial information for our discontinued operations is as follows: | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net sales | 93,193 | 493,997 | 47,086 | ||||||||||
(Loss) income before income tax | (14,767 | ) | 31,315 | (37,259 | ) | ||||||||
Income tax credit (expense) | 1,664 | (1,827 | ) | (3,660 | ) | ||||||||
(Loss) income from discontinued operations, net of income tax | (13,103 | ) | 29,488 | (40,919 | ) | ||||||||
Accounts receivable | 54,003 | — | |||||||||||
Inventories | 8,906 | — | |||||||||||
Prepaid expense and other receivables | 8,813 | 2,364 | |||||||||||
Deferred tax assets | 3,743 | — | |||||||||||
Property, plant and equipment, net | 87,329 | — | |||||||||||
Land use rights | 5,314 | — | |||||||||||
Other assets | 424 | — | |||||||||||
Total assets | 168,532 | 2,364 | |||||||||||
Notes payable | 3,878 | — | |||||||||||
Accounts payable | 46,169 | — | |||||||||||
Trust Receipt loans | 3,558 | — | |||||||||||
Accrued expenses and other payables | 8,304 | 234 | |||||||||||
Short term bank borrowings | 4,824 | — | |||||||||||
Income tax payable | 476 | — | |||||||||||
Total liabilities | 67,209 | 234 | |||||||||||
Net assets of discontinued operations | 101,323 | 2,130 | |||||||||||
Equity
Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Equity | ' | ||||||||||||||||
14 | Equity | ||||||||||||||||
(a) | The Company has only one class of common shares authorized, issued and outstanding. | ||||||||||||||||
(b) | Stock Options | ||||||||||||||||
In May 2001 (and amended in July 2004 and in November 2006), the Board of Directors approved a stock option plan which allows for the grant of 15,000 options to each non-employee director of the Company elected at each annual general meeting of shareholders, and might grant options to key employees, consultants or advisors of the Company or any of its subsidiaries to subscribe for its shares in accordance with the terms of this stock option plan based on past performance and/or expected contributions to the Company. The maximum number of shares to be issued pursuant to the exercise of options granted was 3,300,000 shares. The options granted under this plan generally have a term of two to three years, subject to the discretion of the Board of Directors, but cannot exceed ten years. | |||||||||||||||||
In February 2006, the Board of Directors approved another stock option plan, which was subsequently approved by the shareholders at the 2006 annual general meeting of shareholders, with the same terms and conditions. However, the maximum number of shares to be issued pursuant to exercise of options granted was 2,000,000 shares. | |||||||||||||||||
In February 2012, the Board of Directors approved the grant of stock options to a director of the Company. The number of stock options to be granted will range from 200,000 to 600,000, which is determined by achievement of a 6% to 10% return on total shareholders’ equity as at December 31, 2011 in the 12 month period from April 1, 2012 to March 31, 2013. | |||||||||||||||||
In April 2012, the Board of Directors approved the grant of stock options to employees of the Company. The number of stock options to be granted will range from 277,000 to 831,000, which is determined by achievement of a 6% to 10% return on total shareholders’ equity as at December 31, 2011 in the 9 month period from April 1, 2012 to December 31, 2012. | |||||||||||||||||
In June 2012, a service contract was entered into with a consultant commencing from July 2, 2012, for a consideration of 12,000 share options for a term of two years. | |||||||||||||||||
A summary of stock option activity during the three years ended December 31, 2013 is as follows: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
options | average | average fair | intrinsic | ||||||||||||||
exercise | value per | value | |||||||||||||||
price | option | ||||||||||||||||
Outstanding and exercisable at January 1, 2011 | 120,000 | $ | 4.43 | $ | 1.24 | ||||||||||||
Granted | 60,000 | $ | 5.92 | $ | 1.87 | ||||||||||||
Outstanding and exercisable at December 31, 2011 | 180,000 | $ | 4.93 | $ | 1.45 | ||||||||||||
Granted | 1,503,000 | $ | 6.03 | $ | 1.26 | ||||||||||||
Expired | (60,000 | ) | $ | 4.41 | $ | 0.89 | |||||||||||
Outstanding and exercisable at December 31, 2012 | 1,623,000 | $ | 5.97 | $ | 1.29 | ||||||||||||
Granted | 60,000 | $ | 7.5 | $ | 1.88 | ||||||||||||
Exercised | (469,000 | ) | $ | 5.54 | $ | 1.13 | |||||||||||
Expired | (30,000 | ) | $ | 4.45 | $ | 1.58 | |||||||||||
Outstanding and exercisable at December 31, 2013 | 1,184,000 | $ | 6.26 | $ | 1.62 | $ | 1,046 | ||||||||||
Exercisable at December 31, 2013 | $ | 419 | |||||||||||||||
Expected to vest after December 31, 2013 | $ | 627 | |||||||||||||||
Aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the fiscal period in excess of the weighted-average exercise price multiplied by the number of options outstanding or exercisable. | |||||||||||||||||
Details of the options granted by the Company in 2011, 2012 and 2013 are as follows: | |||||||||||||||||
Number of | Vesting period | Exercise | Exercisable period | Weighted | |||||||||||||
price | remaining | ||||||||||||||||
options | contractual | ||||||||||||||||
granted | life in months | ||||||||||||||||
In 2011 | |||||||||||||||||
60,000 | 100% vested at date of grant | $ | 5.92 | June 10, 2011 to June 9, 2014 | 5.3 | ||||||||||||
In 2012 | |||||||||||||||||
600,000 | 100% vested in April 2013 | $ | 6.66 | April 1, 2013 to April 30, 2016* | 28 | ||||||||||||
831,000 | 50% vested in January 2013 and 50% will vest after 2013 at the time when the option certificates are issued to the grantees | $ | 5.63 | January 1, 2013 to April 26, 2015 | 15.9 | ||||||||||||
60,000 | 100% vested at date of grant | $ | 5.34 | June 6, 2012 to June 5, 2015 | 17.2 | ||||||||||||
12,000 | 1,000 shares monthly from August 1, 2012 | $ | 5.95 | August 1, 2012 to July 31, 2014 | 7 | ||||||||||||
In 2013 | |||||||||||||||||
60,000 | 100% vested at date of grant | $ | 7.5 | May 31, 2013 to May 31, 2016 | 29 | ||||||||||||
* | Exercisable period modified in 2013 | ||||||||||||||||
There was approximately nil, $1,340 and $201, respectively, of unrecognized compensation expense related to non-vested stock options granted under the Company’s option plan at December 31, 2011, 2012 and 2013. The total amount of recognized compensation expenses in 2011, 2012 and 2013 was $112, $547 and $1,536, respectively. | |||||||||||||||||
The above summarizes information about stock options outstanding at December 31, 2013. 768,500 stock options are exercisable as of December 31, 2013. | |||||||||||||||||
The total fair value of shares vested during fiscal years ended December 31, 2011, 2012 and 2013 was $112, $66 and $1,765, respectively. | |||||||||||||||||
The weighted average remaining contractual life of the stock options outstanding at December 31, 2011, 2012 and 2013 was approximately 17, 26 and 22 months, respectively. The weighted average fair value of options granted during 2011, 2012 and 2013 was $1.87, $1.26 and $1.88, respectively, using the Black-Scholes option-pricing model based on the following assumptions: | |||||||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||||||
Risk-free interest rate | 0.75 | % | 0.30% to 0.39 | % | 0.52 | % | |||||||||||
Expected life | 3 years | 2 years to 4.2 years | 3 years | ||||||||||||||
Expected volatility | 50.99 | % | 38.57 % to 48.23 | % | 52.36 | % | |||||||||||
Expected dividend yield | 1.69 | % | 3.30% to 4.49 | % | 5.87 | % | |||||||||||
(c) | Share Buy-back | ||||||||||||||||
No share was repurchased during the years ended December 31, 2011, 2012 and 2013. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
15 | Earnings Per Share | ||||||||||||
The calculations of basic earnings per share and diluted earnings per share are computed as follows: | |||||||||||||
Income | Weighted | Per | |||||||||||
(loss) | average | share | |||||||||||
number of | amount | ||||||||||||
shares | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
Basic earnings per share from continuing operations | $ | 13,608 | 44,803,735 | $ | 0.3 | ||||||||
Basic loss per share from discontinued operations | $ | (13,103 | ) | 44,803,735 | $ | (0.29 | ) | ||||||
Basic earnings per share | $ | 505 | 44,803,735 | $ | 0.01 | ||||||||
Effect of dilutive securities — Stock options | 37,467 | ||||||||||||
Diluted earnings per share from continuing operations | $ | 13,608 | 44,841,202 | $ | 0.3 | ||||||||
Diluted loss per share from discontinued operations | $ | (13,103 | ) | 44,841,202 | $ | (0.29 | ) | ||||||
Diluted earnings per share | $ | 505 | 44,841,202 | $ | 0.01 | ||||||||
Income | Weighted | Per | |||||||||||
average | share | ||||||||||||
number of | amount | ||||||||||||
shares | |||||||||||||
Year ended December 31, 2012 | |||||||||||||
Basic earnings per share from continuing operations | $ | 37,433 | 44,803,735 | $ | 0.83 | ||||||||
Basic earnings per share from discontinued operations | $ | 29,488 | 44,803,735 | $ | 0.66 | ||||||||
Basic earnings per share | $ | 66,921 | 44,803,735 | $ | 1.49 | ||||||||
Effect of dilutive securities — Stock options | 541,518 | ||||||||||||
Diluted earnings per share from continuing operations | $ | 37,433 | 45,345,253 | $ | 0.83 | ||||||||
Diluted earnings per share from discontinued operations | $ | 29,488 | 45,345,253 | $ | 0.65 | ||||||||
Diluted earnings per share | $ | 66,921 | 45,345,253 | $ | 1.48 | ||||||||
Income | Weighted | Per | |||||||||||
(loss) | average | share | |||||||||||
number of | amount | ||||||||||||
shares | |||||||||||||
Year ended December 31, 2013 | |||||||||||||
Basic earnings per share from continuing operations | $ | 41,216 | 45,222,532 | $ | 0.91 | ||||||||
Basic loss per share from discontinued operations | $ | (40,919 | ) | 45,222,532 | $ | (0.90 | ) | ||||||
Basic earnings per share | $ | 297 | 45,222,532 | $ | 0.01 | ||||||||
Effect of dilutive securities — Stock options | 470,318 | ||||||||||||
Diluted earnings per share from continuing operations | $ | 41,216 | 45,692,850 | $ | 0.9 | ||||||||
Diluted loss per share from discontinued operations | $ | (40,919 | ) | 45,692,850 | $ | (0.89 | ) | ||||||
Diluted earnings per share | $ | 297 | 45,692,850 | $ | 0.01 | ||||||||
Staff_Retirement_Plans
Staff Retirement Plans | 12 Months Ended | |
Dec. 31, 2013 | ||
Compensation And Retirement Disclosure [Abstract] | ' | |
Staff Retirement Plans | ' | |
16 | Staff Retirement Plans | |
The Company operates a Mandatory Provident Fund (“MPF”) scheme for all qualifying employees in Hong Kong. The MPF is defined contribution scheme and the assets of the scheme are managed by trustees independent of the Company. | ||
The MPF is available to all employees aged 18 to 64 and with at least 60 days of service under the employment of the Company in Hong Kong. Contributions are made by the Company at 5% based on the staff’s relevant income. The maximum relevant income for contribution purposes per employee is $3 per month. Eligible staff members are entitled to 100% of the Company’s contributions together with accrued returns irrespective of their length of service with the Company, but the benefits are required by law to be preserved until the retirement age of 65 for employees in Hong Kong. | ||
According to the applicable laws and regulations in the PRC, the Company is required to contribute 13%-14% and 20% of the stipulated salary set by the local governments of Shenzhen and Wuxi, respectively. The principal obligation of the Company with respect to these retirement benefit schemes is to make the required contributions under the scheme. No forfeited contributions may be used by the employer to reduce the existing level of contributions. | ||
The cost of the Company’s contribution to the staff retirement plans in Hong Kong and the PRC amounted to $2,317, $3,863 and $2,545 for the years ended December 31, 2011, 2012 and 2013, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
17 | Income Taxes | ||||||||||||
The components of income before income tax are as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
PRC, excluding Hong Kong | $ | 22,169 | $ | 55,211 | $ | 53,556 | |||||||
Hong Kong and other jurisdictions | (6,365 | ) | (2,590 | ) | (1,197 | ) | |||||||
$ | 15,804 | $ | 52,621 | $ | 52,359 | ||||||||
The Company’s income is not subject to taxation in BVI under the current BVI law. Subsidiaries operating in Hong Kong and the PRC are subject to income taxes as described below. Under the current Cayman Islands law, NTEEP is not subject to profit tax in the Cayman Islands as it has no operations in the Cayman Islands. However, it may be subject to Hong Kong income taxes as described below if it has income earned in or derived from Hong Kong. | |||||||||||||
The provision for current income taxes of the subsidiaries operating in Hong Kong has been calculated by applying the rate of taxation of 16.5% for the years ended December 31, 2011, 2012 and 2013 to the estimated income earned in or derived from Hong Kong during the respective years, if applicable. | |||||||||||||
On March 16, 2007, the PRC promulgated the New PRC Tax Law. Under the New Law which became effective from January 1, 2008, inter alia, the tax refund to a Foreign Investment Enterprises (“FIEs”) whose foreign investor directly reinvests by way of capital injection its share of profits obtained from that FIE or another FIE owned by the same foreign investor in establishing or expanding an export-oriented or technologically advanced enterprise in the PRC for a minimum period of five years under the capital reinvestment scheme is removed. In addition, under the New Law, all enterprises (both domestic enterprises and FIEs) will have one uniform tax rate of 25%. On December 6, 2007, the State Council of the PRC issued Implementation Regulations of the New Law. The New Law and Implementation Regulations have changed the tax rate from 20%, 22%, 24% and 25% for years ended December 31, 2009, 2010, 2011, 2012 and afterwards, respectively, for Shenzhen PRC subsidiaries. Moreover, under the New Law, there is no reduction in the tax rate for FIEs such as Zastron Shenzhen, which export 70% or more of the production value of their products with effect from January 1, 2008. As such, the Shenzhen PRC subsidiaries do not have any further benefit since the implementation of the New Law in 2008. | |||||||||||||
Our subsidiary in Wuxi, China, is granted a 5-year tax benefit. According to the PRC tax regulation, “Guo Shui Fa (2007) No. 39” issued in 2007, Wuxi Zastron-Flex is entitled to full exemption for the first two years starting 2008 and 50% exemption for the following three years. Accordingly, from January 2013, Wuxi Zastron-Flex will have one uniform tax rate of 25%. | |||||||||||||
The Company, which has subsidiaries that are tax resident in the PRC, will be subject to the PRC dividend withholding tax of 5%, commencing on January 1, 2008, when and if undistributed earnings are declared to be paid as dividends commencing on January 1, 2008 to the extent those dividends are paid out of profits that arose on or after January 1, 2008. For the years ended December 31, 2011, 2012 and 2013, there was no income tax expense for the 5% dividend withholding tax on the balance of distributable earnings that arose on or after January 1, 2008 within its PRC subsidiaries. In line with management’s decision to change the core business, management decided to retain the undistributed earnings in the PRC. As such, the deferred tax liabilities of $1,379 made in previous years have been reversed during the year. | |||||||||||||
Uncertainties exist with respect to how the PRC’s current income tax law applies to the Company’s overall operations, and more specifically, with regard to tax residency status. The New Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for PRC income tax purposes if their place of effective management or control is within PRC. The Implementation Rules to the New Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and operations, personnel, accounting, properties, etc. occurs within the PRC. Additional guidance is expected to be released by the PRC government in the near future that may clarify how to apply this standard to taxpayers. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Company does not believe that its legal entities organized outside of the PRC should be treated as residents for the New Law’s purposes. If one or more of the Company’s legal entities organized outside of the PRC were characterized as PRC tax residents, the impact would adversely affect the Company’s results of operation. | |||||||||||||
The Company has made its assessment of each tax position (including the potential application of interest and penalties) based on the technical merits, and has measured the unrecognized tax benefits associated with the tax positions. Based on the evaluation by the Company, it is concluded that there are no significant uncertain tax positions requiring recognition in the consolidated financial statements. The Company classifies interest and/or penalties related to unrecognized tax benefits as a component of income tax provisions; however, during the years ended December 31, 2011, 2012 and 2013, there were no interest and penalties related to uncertain tax positions, and the Company had no material unrecognized tax benefit which would favorably affect the effective income tax rate in future periods. The Company does not anticipate any significant increases or decreases to its liability for unrecognized tax benefit within the next twelve months. Other than the audit by the Hong Kong tax authorities as described below, the tax positions for the years 2011 to 2013 may be subject to examination by the PRC and Hong Kong tax authorities. | |||||||||||||
Tax Disputes with Hong Kong Inland Revenue Department | |||||||||||||
Since the fourth quarter of 2007, several of our inactive subsidiaries have been involved in tax disputes relating to tax years 1996 and later years with the Inland Revenue Department of Hong Kong, or HKIRD, the income tax authority of the Hong Kong Government. These disputes are discussed sequentially below. | |||||||||||||
(1) NTTC | |||||||||||||
(a) In October 2007, the HKIRD issued an assessment Determination against Nam Tai Trading Company Limited (“NTTC”), a limited liability company incorporated in Hong Kong and an indirect wholly-owned subsidiary of the Company. This assessment relates to four tax years from 1996/1997 to 1999/2000. The taxes assessed in this proceeding amount to approximately $2,900. | |||||||||||||
After consulting Hong Kong tax experts, Nam Tai believed that the position of the HKIRD for the years in question was incorrect as a matter of law and accordingly NTTC objected to the HKIRD’s assessment and appealed it to the Hong Kong Board of Review, an independent body established under Hong Kong Inland Revenue Ordinance to hear appeals of HKIRD assessments. In December 2008, the Board of Review dismissed NTTC’s appeal. According to advice from Senior Counsel in Hong Kong, the Court of Appeal in Hong Kong was unlikely to disturb the findings of the Board of Review. Therefore, NTTC decided not to pursue an appeal. | |||||||||||||
(b) In addition to the assessment Determination of October 2007, in May 2008, the HKIRD issued a writ against NTTC claiming taxes in the amount of approximately $3,000 for the taxable years from 1997/1998 to 2000/2001, partially overlapping the taxes against NTTC assessed by HKIRD in its assessment Determination of October 2007. Nam Tai’s defense was struck out by the District Court in Hong Kong. According to advice from Senior Counsel in Hong Kong, the Court of Appeal was unlikely to disturb the findings of the District Court. Therefore, NTTC decided not to pursue an appeal against the decision of the District Court. | |||||||||||||
(c) Furthermore, from May to November 2010, the HKIRD issued three separate writs against NTTC claiming taxes and interests on unpaid taxes, in the amount of approximately $900, $1,100 and $120 for the taxable years from 1996/1997 to 2003/2004, from 1996/1997, 1998/1999 and 1999/2000, and from 1996/1997 to 1999/2000, respectively. NTTC did not contest these proceedings, judgments were thus entered against NTTC. | |||||||||||||
(d) As a result of the proceedings stated in paragraphs (b) – (c) above, the HKIRD petitioned to the High Court of Hong Kong for a winding-up order against NTTC for the overdue judgment sums on June 10, 2011. The petition was heard in the High Court of Hong Kong on March 13, 2012 before Deputy High Court Judge Tam, S.C. The Court handed down the Judgment and made a winding-up order on June 4, 2012 against NTTC. | |||||||||||||
The Statement of Affairs has been filed by the directors. The meetings of creditors’ and contributories’ were held in the Hong Kong Official Receiver’s Office on August 16, 2012 and September 5, 2012, respectively. On both occasions, the creditors’ meeting could not proceed due to a lack of quorum. Pursuant to the Order of the Court dated December 4, 2012, Mr. Ng Kwok Wai and Mr. Lui Chi Kit both of Eric Ng C.P.A. Limited have been appointed as the joint and several liquidators of NTTC. By the same Order, no committee of inspection would be formed. | |||||||||||||
Further, NTGM (as defined below) has on August 14, 2012 appointed Mr. John Robert Lees and Mr. Mat Ng of JLA Asia Limited (formerly known as John Lees Associates) as the Joint and Several Receivers (and Managers) (“the Receivers”) of all the properties charged by NTTC as chargor in favour of NTGM under the Debenture and the Mortgage both dated December 30, 2003. A Deed of Appointment of the Joint and Several Receivers (and Managers) (“the Deed of Appointment”) and a Deed of Indemnity, both dated August 14, 2012, have been executed accordingly. The Deed of Appointment has been registered in the Land Registry of Hong Kong against 13 plots of land which are charged by NTTC in favour of NTGM under the said Mortgage. | |||||||||||||
As requested by the Joint and Several Liquidators, an initial interview was held on January 31, 2013 between the directors of NTGM and the Joint and Several Liquidators, in which the Joint and Several Liquidators confirmed that all the assets of NTTC have been taken over by the Receivers. | |||||||||||||
The Shatin Magistrates’ Court upon the application of the Registrar of Companies issued a Summons to NTGM dated December 28, 2012 (which was heard on April 16, 2013) due to the delay in the registration of the Notification of Mortgagee Entering into Possession of Property (Form M3) by the Receivers. NTGM pleaded guilty to the charge and was fined approximately $0.3, which was duly paid on April 19, 2013. | |||||||||||||
(2) NTGM | |||||||||||||
(a) The HKIRD has also made estimated assessments against Nam Tai Group Management Limited (“NTGM”), another wholly-owned subsidiary of Nam Tai, which has been inactive since 2005. This assessment, which relates to the tax years of 2001 and 2002, is in the amount of approximately $172, including interest allegedly due thereon. On December 17, 2008, the Hong Kong tax authorities issued a Writ of Summons through the District Court in Hong Kong claiming against NTGM the amount of $172 as taxes allegedly due and payable, together with interest, to the Hong Kong tax authorities for the fiscal years 2001 to 2002. NTGM filed its defense on January 29, 2009, but on February 17, 2009, HKIRD filed papers seeking to strike out NTGM’s defense. As NTGM’s defense was similar to the defense of NTTC and Senior Counsel had advised that NTTC’s defense was not arguable before the Court, NTGM accordingly agreed with HKIRD to allow Judgment to be entered against NTGM by consent. | |||||||||||||
(b) (i) On February 8, 2011, HKIRD issued a writ against NTGM claiming taxes in the amount of approximately $855 for the taxable years 2001/2002 to 2003/2004. NTGM filed a Defense to this action. The hearing of the action took place on September 6, 2011. The judgment was handed down on September 29, 2011 with the Defense being struck out and judgment was thus entered against NTGM. | |||||||||||||
(ii) The taxation process is completed. The total taxed costs as certified by the Registrar are approximately $5 plus post-judgment interest. | |||||||||||||
(c) NTGM has received demand letters from the HKIRD demanding payments of the judgment debts mentioned in paragraphs 2(a) and (b) above. | |||||||||||||
(3) NTT | |||||||||||||
(a) On September 14, 2009, the HKIRD issued a writ against Nam Tai Telecom (Hong Kong) Company Limited (“NTT”), a dormant company of the Company, claiming taxes in the amount of approximately $337 for the taxable year 2002/2003. Judgment has been entered against NTT. | |||||||||||||
(b) (i) On February 17, 2011, HKIRD issued a writ against NTT claiming taxes in the amount of approximately $34 for the taxable year 2002/2003. NTT filed a Defense to this action. The hearing of this action was heard together with the case of NTGM as discussed in paragraph (2)(b) above on September 6, 2011. Similarly, the judgment was handed down on September 29, 2011 with the Defense being struck out and judgment was thus entered against NTT. | |||||||||||||
(ii) The taxation process is completed. The total taxed costs as certified by the Registrar are approximately $5 plus post-judgment interest. | |||||||||||||
(c) NTT has received demand letters from the HKIRD demanding payments of judgment debts mentioned in paragraphs 3(a) and (b) above. On January 14, 2014, NTT received a letter from the HKIRD demanding payment of the judgment debt referred to in paragraph 3(b) above, plus costs and interest. | |||||||||||||
-4 | Expected Dispositions of Tax Disputes with Inactive or Dormant Subsidiaries | ||||||||||||
HKIRD has not accepted the explanations that it was necessary for these subsidiaries to perform their individual functions for the whole Nam Tai group and therefore the management fees paid by the Company by contract to support and finance all the necessary overhead expenses of these subsidiaries (not located in Hong Kong) to contribute to the operationses representing the administration and finance departmental functions from Vancouver, Canada for the whole group under the corporate structure at that time were not regarded as necessary expenses by HKIRD. | |||||||||||||
Since it is believed that it will be difficult for these subsidiaries to continue cooperating with HKIRD in the future, if the Company discontinues financing these subsidiaries, they will be forced to liquidate in due course. As these subsidiaries do not conduct any operations and have been inactive or dormant for some time, and have either assets of limited book-value or no assets, Nam Tai believes that there should be no material impact from these proceeding on the Company’s financial condition, liquidity or results of operations. Accordingly, no provision has been made regarding these assessments in Nam Tai’s consolidated financial statements. | |||||||||||||
-5 | Notices of Alleged Personal Liability for Additional Taxes Against Former Directors and Officers for Signing NTTC’s Tax Returns | ||||||||||||
In addition to the legal cases against the inactive or dormant subsidiaries of the Company discussed above, in January 2011, the HKIRD issued two Notices of intention to assess additional taxes separately and personally against two former directors and officers of NTTC in the amounts of approximately $1,540 for the taxable years 1996/1997 and 1999/2000 and $667 for the taxable year 1997/1998 (“the Notices”). The taxable years involved in the controversy date from 13 to 15 years ago and initial advice received from the Company’s tax advisor is that it is very rare for tax authorities to seek to attach personal liability on directors in this situation. | |||||||||||||
The two former directors and officers to whom the Notices have been directed signed the tax returns for and on behalf of NTTC and the HKIRD has by its Notices sought to hold them personally liable for additional taxes purportedly on the basis that the relevant tax returns of NTTC were incorrect and contained omissions and understatements in violation of the Inland Revenue Ordinance, the governing tax law of Hong Kong. | |||||||||||||
The Company denies that any of NTTC’s tax return filings were incorrect or contained omissions and understatements in violation of the Inland Revenue Ordinance and believes that no incorrect tax return was ever filed. | |||||||||||||
The two former directors submitted various written representations in opposition to the issuance of the Notices, through their tax advisors, to the HKIRD since the issuance of the Notices. One of these former directors has commenced an action in the High Court of Hong Kong in November 2011 to seek an order from the Court that, inter alia, the Notice be withdrawn by the HKIRD. | |||||||||||||
The Department of Justice of Hong Kong (representing the Commissioner of Inland Revenue of Hong Kong (“the Commissioner”)) sent to the solicitors representing the two former directors a letter dated December 31, 2012 stating that the Commissioner had considered all the written representations submitted by the two former directors and decided that there was no basis to withdraw the Notices. The Commissioner would proceed to assess the two former directors additional tax assessments under Section 82A of the Inland Revenue Ordinance. | |||||||||||||
On April 26, 2013, the Commissioner issued three Notices of Assessment and Demand for Additional Tax against the two former directors in the total amount of approximately $2,323 (the “Assessment Notices”), assessing one of them to additional tax by way of penalty in the sum of approximately $1,626 (approximately $826 in respect of the year 1996/1997 and approximately $800 in respect of the year 1999/2000) and assessing the other former director to additional tax by way of penalty in the sum of approximately $697 in respect of the year 1997/1998. | |||||||||||||
The two former directors lodged an appeal to the Board of Review of the HKIRD against the Assessment Notices (the “BOR Appeal”) on May 24, 2013. The BOR Appeal is scheduled to be heard from January 26, 2015 to January 30, 2015. | |||||||||||||
On May 27, 2013, the Company paid on behalf of the two former directors the additional tax as required under the Assessment Notices. | |||||||||||||
On July 22, 2013, the two former directors filed a notice of application for leave to apply for judicial review with the Court of First Instance (“CFI”) in respect of the Commissioner’s decision to issue the Assessment Notices (“Decision”). The CFI declined the application on 21 August 2013. | |||||||||||||
On September 2, 2013, the two former directors filed a notice of appeal with the Court of Appeal to apply for an order that the Decision be quashed on the basis that it was ultra vires the Commissioner’s powers under the Inland Revenue Ordinance and, alternatively, for an order that leave be granted to apply for judicial review of the Decision. The hearing before the Court of Appeal is scheduled to take place on May 30, 2014. | |||||||||||||
At this time, Nam Tai is unable to assess the potential impact of these proceedings on the Company. However, the Company may be required to indemnify and defend this matter for the former directors and officers. If forced to defend, the Company plans to do so vigorously. | |||||||||||||
Nam Tai maintains a Directors’ and Officers’ Liability Insurance for certain claims or liabilities that may arise by reason of the status or service of its directors and officers (“the Policy”). Nam Tai has informed the insurance carriers of the Policy about the HKIRD’s Notices against NTTC’s two former directors. So far, the insurance carriers have raised no objection to the Notices constituting a claim under the terms of the Policy and have reimbursed Nam T(1)ai for the legal costs and other expenses incurred by Nam Tai for defending the Notices. After the Additional Assessment Notices had been issued, the Insurers were informed of the same. The Insurers refused to reimburse for the additional tax under the Additional Assessment Notices and the associated legal costs and expenses incurred in both the BOR Appeal and the CA Appeal. Therefore, NTEI and the two former directors have commenced arbitration against the Insurers under the Policy on October 18, 2013 by issuing a Notice of Arbitration to claim for reimbursement of the additional tax and the legal costs and expenses of both the BOR Appeal and the CA Appeal. The insurers filed their Response to Notice of Arbitration on December 24, 2013. The parties are now in the process of appointing the arbitrators. | |||||||||||||
NTEI took out a new Directors’ and Officers’ Liability Insurance Policy with a new insurer for the year 2013. | |||||||||||||
Accordingly, no provision has been made regarding these assessments in Nam Tai’s consolidated financial statements. | |||||||||||||
The current and deferred components of the income tax expense appearing in the consolidated statements of income are as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
Current tax | $ | (3,672 | ) | $ | (13,123 | ) | $ | (10,370 | ) | ||||
Deferred tax | 1,476 | (2,065 | ) | (773 | ) | ||||||||
$ | (2,196 | ) | $ | (15,188 | ) | $ | (11,143 | ) | |||||
The Company’s deferred tax assets and liabilities as of December 31, 2012 and 2013 are attributable to the following: | |||||||||||||
December 31, | 2012 | 2013 | |||||||||||
Net operating losses | $ | 5,316 | $ | 5,960 | |||||||||
Obsolete inventories | 343 | — | |||||||||||
Allowance for doubtful accounts | — | 539 | |||||||||||
Provision for goods return | 101 | — | |||||||||||
Property, plant and equipment | 1,690 | 2,123 | |||||||||||
Total deferred tax assets | 7,450 | 8,622 | |||||||||||
Less: valuation allowance | (5,316 | ) | (8,622 | ) | |||||||||
Deferred tax assets | 2,134 | — | |||||||||||
Deferred tax liability arising from withholding tax on undistributed earnings of PRC subsidiaries | (1,379 | ) | — | ||||||||||
Net deferred tax assets | $ | 755 | $ | — | |||||||||
Movement of valuation allowance: | |||||||||||||
December 31, | 2011 | 2012 | 2013 | ||||||||||
At beginning of the year | $ | 916 | $ | 1,344 | $ | 5,316 | |||||||
Current year addition | 428 | 3,972 | 3,306 | ||||||||||
At end of the year | $ | 1,344 | $ | 5,316 | $ | 8,622 | |||||||
The valuation allowance as of December 31, 2011 and 2012 was related to net operating losses carried forward that, in the judgment of management, are more likely than not that the assets will not be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income in which those temporary differences become deductible. As of December 31, 2013, the valuation allowance was fully provided for the deferred tax assets because management considered that it is more likely than not that all of deferred tax assets will not be realized. | |||||||||||||
As of December 31, 2011, 2012 and 2013 the Company had net operating losses of $8,147, $10,316 and $23,285 respectively, which may be carried forward indefinitely. As of December 31, 2013, the Company had net operating losses of $4,081 and $4,389, which will expire in the year ending December 31, 2016 and 2017, respectively. | |||||||||||||
A reconciliation of the income tax expense to the amount computed by applying the current tax rate to the income before income taxes in the consolidated statements of comprehensive income is as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
Income before income taxes | $ | 15,804 | $ | 52,621 | $ | 52,359 | |||||||
PRC tax rate | 24 | % | 25 | % | 25 | % | |||||||
Income tax expense at PRC tax rate on income before income tax | $ | (3,793 | ) | $ | (13,155 | ) | $ | (13,090 | ) | ||||
Effect of difference between Hong Kong and PRC tax rates applied to Hong Kong income | (221 | ) | (258 | ) | (487 | ) | |||||||
Effect of change in tax law | 142 | — | — | ||||||||||
Change in valuation allowance | (428 | ) | (3,972 | ) | (3,306 | ) | |||||||
Reversal of deferred tax liability on withholding tax on undistributed profits of PRC subsidiaries | — | — | 1,378 | ||||||||||
Tax benefit (expense) arising from items which are not assessable (deductible) for tax purposes: | |||||||||||||
Non-deductible impairment loss on goodwill | (708 | ) | — | — | |||||||||
Non-deductible and non-taxable items | 1,574 | 49 | 2,292 | ||||||||||
Over provision of income tax expense in prior years | 1,369 | 185 | — | ||||||||||
Withholding tax | — | 1,510 | 1,192 | ||||||||||
Others | (131 | ) | 453 | 878 | |||||||||
Income tax expense | $ | (2,196 | ) | $ | (15,188 | ) | $ | (11,143 | ) | ||||
No income tax arose in the United States of America in any of the periods presented. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |
Dec. 31, 2013 | ||
Text Block [Abstract] | ' | |
Financial Instruments | ' | |
18 | Financial Instruments | |
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash and cash equivalents and accounts receivable. As at December 31, 2013, the largest two customers’ trade receivables accounted for 91% and 8% of total accounts receivable, respectively. | ||
The Company’s cash and cash equivalents are uninsured and they are placed at banks with high credit ratings. This investment policy limits the Company’s exposure to credit risk. | ||
The accounts receivable balances largely represent amounts due from the Company’s principal customers who are international organizations with high credit ratings. Letters of credit are the principal security obtained to support lines of credit or negotiated contracts from a customer. As a consequence, credit risk is limited. Allowance for doubtful debts was nil and $2,119 as of December 31, 2012 and 2013, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||
19 | Commitments and Contingencies | ||||||||||||||||
(a) Commitments | |||||||||||||||||
Our contractual obligations, including purchase commitments under non-cancelable arrangements as of December 31, 2013, are summarized below. We do not participate in, or secure financing for, any unconsolidated limited purpose entities. | |||||||||||||||||
Payments (in thousands) due by period | |||||||||||||||||
Total | 2014 | 2015 | 2016 | ||||||||||||||
Contractual Obligation | |||||||||||||||||
Other purchase obligations | 22,461 | 22,461 | — | — | |||||||||||||
Total | $ | 22,461 | $ | 22,461 | $ | — | $ | — | |||||||||
(b) Significant legal proceedings | |||||||||||||||||
Save as disclosed in Note 17, there is no other significant legal proceeding as of December 31, 2013. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
20 | Segment Information | ||||||||||||
The Chief Operating Decision Makers are identified as the Chief Executive Officer and Chief Financial Officer. They review these segment results when making decisions about allocating resources and assessing the performance of the Company. | |||||||||||||
In 2011, the Company’s business was separated into two segments, TCA and CECP. | |||||||||||||
In 2012, the CECP segment fell below the thresheld and it was combined with the TCA segment.The Company’s business was then separated into TCA and FPC segments. Since the first quarter of 2013, the FPC segment has been discontinued and only one TCA segment still existed. | |||||||||||||
The segment information in 2011 and 2012 has been restated in order to conform with the change in segment reporting in 2013 in accordance with FASB ASC 280-10-50-34. | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Net sales | $ | 509,124 | $ | — | $ | 509,124 | |||||||
Cost of sales | (479,037 | ) | — | (479,037 | ) | ||||||||
Gross profit | 30,087 | — | 30,087 | ||||||||||
General and administrative expenses | (9,662 | ) | (7,117 | ) | (16,779 | ) | |||||||
Selling expenses | (2,886 | ) | — | (2,886 | ) | ||||||||
Research and development expenses | (1,709 | ) | — | (1,709 | ) | ||||||||
Impairment loss on goodwill | — | (2,951 | ) | (2,951 | ) | ||||||||
Other income, net | 3,659 | 3,707 | 7,366 | ||||||||||
Interest income | 172 | 2,504 | 2,676 | ||||||||||
Income (loss) before income tax | 19,661 | (3,857 | ) | 15,804 | |||||||||
Income tax expenses | (2,196 | ) | — | (2,196 | ) | ||||||||
Net income (loss) from continuing operations | $ | 17,465 | $ | (3,857 | ) | $ | 13,608 | ||||||
Year ended December 31, 2012 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Net sales | $ | 678,113 | $ | — | $ | 678,113 | |||||||
Cost of sales | (609,875 | ) | — | (609,875 | ) | ||||||||
Gross profit | 68,238 | — | 68,238 | ||||||||||
General and administrative expenses | (16,328 | ) | (4,411 | ) | (20,739 | ) | |||||||
Selling expenses | (1,483 | ) | — | (1,483 | ) | ||||||||
Research and development expenses | (716 | ) | — | (716 | ) | ||||||||
Other income, net | 4,016 | 1,267 | 5,283 | ||||||||||
Interest income | 167 | 1,871 | 2,038 | ||||||||||
Income (loss) before income tax | 53,894 | (1,273 | ) | 52,621 | |||||||||
Income tax expenses | (15,188 | ) | — | (15,188 | ) | ||||||||
Net income (loss) from continuing operations | $ | 38,706 | $ | (1,273 | ) | $ | 37,433 | ||||||
Year ended December 31, 2013 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Net sales | $ | 855,847 | $ | — | $ | 855,847 | |||||||
Cost of sales | (788,212 | ) | — | (788,212 | ) | ||||||||
Gross profit | 67,635 | — | 67,635 | ||||||||||
General and administrative expenses | (26,045 | ) | (7,272 | ) | (33,317 | ) | |||||||
Selling expenses | (462 | ) | — | (462 | ) | ||||||||
Other operating income | 1,609 | — | 1,609 | ||||||||||
Other income, net | 6,573 | 5,382 | 11,955 | ||||||||||
Interest income | 1,624 | 3,315 | 4,939 | ||||||||||
Income before income tax | 50,934 | 1,425 | 52,359 | ||||||||||
Income tax (expenses) credit | (12,522 | ) | 1,379 | (11,143 | ) | ||||||||
Net income from continuing operations | $ | 38,412 | $ | 2,804 | $ | 41,216 | |||||||
There were no material inter-segment sales for the years ended December 31, 2011, 2012 and 2013. Intercompany sales arise from the transfer of finished goods between subsidiaries operating in different areas. These sales are generally at prices consistent with what the Company would charge third parties for similar goods. | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Depreciation and amortization | $ | 5,252 | $ | 260 | $ | 5,512 | |||||||
Capital expenditures | $ | 7,424 | $ | 4,723 | $ | 12,147 | |||||||
Total assets | $ | 169,048 | $ | 132,915 | $ | 301,963 | |||||||
Year ended December 31, 2012 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Depreciation and amortization | $ | 7,909 | $ | 293 | $ | 8,202 | |||||||
Capital expenditures | $ | 29,488 | $ | — | $ | 29,488 | |||||||
Total assets | $ | 321,575 | $ | 145,937 | $ | 467,512 | |||||||
Year ended December 31, 2013 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Depreciation and amortization | $ | 12,761 | $ | 290 | $ | 13,051 | |||||||
Capital expenditures | $ | 277 | $ | 34 | $ | 311 | |||||||
Total assets | $ | 355,000 | $ | 137,055 | $ | 492,055 | |||||||
A summary of net sales, net income (loss) attributable to Nam Tai shareholders and long-lived assets by geographical areas is as follows: | |||||||||||||
By geographical area: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
Net sales from operations within: | |||||||||||||
- PRC, excluding Hong Kong: | $ | 509,124 | $ | 678,113 | $ | 855,847 | |||||||
Net income (loss) attributable to Nam Tai shareholders within: | |||||||||||||
- PRC, excluding Hong Kong | $ | 19,973 | $ | 40,023 | $ | 43,602 | |||||||
- Hong Kong | (6,365 | ) | (2,590 | ) | (2,386 | ) | |||||||
Total net income attributable to Nam Tai shareholders | $ | 13,608 | $ | 37,433 | $ | 41,216 | |||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
Net sales to customers by geographical area: | |||||||||||||
- Hong Kong | $ | 69,135 | $ | 72,498 | $ | 58,045 | |||||||
- Europe | 30,282 | 14,400 | 6,496 | ||||||||||
- United States | 32,332 | 3,021 | — | ||||||||||
- PRC (excluding Hong Kong) | 793 | 1,316 | — | ||||||||||
- Japan | 374,129 | 583,280 | 791,299 | ||||||||||
- Others | 2,453 | 3,598 | 7 | ||||||||||
Total net sales | $ | 509,124 | $ | 678,113 | $ | 855,847 | |||||||
As of December 31, | 2011 | 2012 | 2013 | ||||||||||
Long-lived assets by geographical area: | |||||||||||||
- PRC, excluding Hong Kong | $ | 49,206 | $ | 71,151 | $ | 56,060 | |||||||
- Hong Kong | 4,586 | 4,293 | 3,967 | ||||||||||
Total long-lived assets | $ | 53,792 | $ | 75,444 | $ | 60,027 | |||||||
The Company’s customers which accounted for 10% or more of its sales are as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
A(1) | $ | 369,105 | $ | 570,246 | $ | 791,256 | |||||||
B | 58,527 | N/A | N/A | ||||||||||
C | 62,894 | N/A | N/A | ||||||||||
$ | 490,526 | $ | 570,246 | $ | 791,256 | ||||||||
-1 | Two of our largest customers, each accounting for 10% or more of our net sales in the years ended December 2011 and 2012 respectively, were reorganized into Customer A in 2012. | ||||||||||||
The Company’s suppliers which accounted for 10% or more of its purchases are as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
A | $ | 160,274 | $ | 511,923 | $ | 808,144 | |||||||
B | 114,322 | 108,340 | — | ||||||||||
$ | 274,596 | $ | 620,263 | $ | 808,144 | ||||||||
Employee_Severance_Benefits
Employee Severance Benefits | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Employee Severance Benefits | ' | ||||||||
21 | Employee Severance Benefits | ||||||||
After the final evaluation on the viability of its core operations of LCM production, the Company has decided to discontinue its core business of LCM production in Shenzhen by the end of April 2014 due to a major customer’s repeated and continuous changes in its formal purchasing orders without suitable commitment. The employee severance benefits in 2013 amounted to $14,017 (2012: $1,877), which were recorded as general and administrative expenses. The employee severance benefits by segment were as follows: | |||||||||
2012 | 2013 | ||||||||
Expenses incurred: | |||||||||
TCA | $ | 1,877 | $ | 14,017 | |||||
2012 | 2013 | ||||||||
Provision for employee severance benefits: | |||||||||
Balance at January 1 | $ | — | $ | 300 | |||||
Provision for the year | 1,877 | 14,017 | |||||||
Payments during the year | (1,577 | ) | (3,314 | ) | |||||
Balance at December 31 | $ | 300 | $ | 11,003 | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 31, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions | ' | |
22 | Related Party Transactions | |
During the year ended December 31, 2013, the Company paid additional tax of $2,323 on behalf of a director of the Company and a former director of a subsidiary (See Note 17). The amount was recorded as other receivables. |
SCHEDULE_1
SCHEDULE 1 | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||||||
SCHEDULE 1 | ' | ||||||||||||||||||||||||
SCHEDULE 1 | |||||||||||||||||||||||||
NAM TAI ELECTRONICS, INC. | |||||||||||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||||
(In thousands of U.S. dollars) | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||||||
General and administrative expenses* | $ | (2,374 | ) | $ | (1,729 | ) | $ | (2,073 | ) | ||||||||||||||||
Other income, net | 1,186 | 15,165 | 12,215 | ||||||||||||||||||||||
Interest income on loan to a subsidiary | 7,721 | 4,818 | 5,005 | ||||||||||||||||||||||
Interest income | 725 | 1,421 | 2,626 | ||||||||||||||||||||||
Income before income tax | 7,258 | 19,675 | 17,773 | ||||||||||||||||||||||
Income tax expenses | — | — | — | ||||||||||||||||||||||
Income before share of net profits of subsidiaries, net of income tax | 7,258 | 19,675 | 17,773 | ||||||||||||||||||||||
Share of net (losses) profits of subsidiaries, net of income tax | (6,753 | ) | 47,246 | (17,476 | ) | ||||||||||||||||||||
Net income attributable to Nam Tai shareholders | $ | 505 | $ | 66,921 | $ | 297 | |||||||||||||||||||
Other comprehensive income | — | — | — | ||||||||||||||||||||||
Comprehensive income attributable to Nam Tai shareholders | $ | 505 | $ | 66,921 | $ | 297 | |||||||||||||||||||
* Amount of share-based compensation expense included in general and administrative expenses | $ | 112 | $ | 547 | $ | 1,536 | |||||||||||||||||||
SCHEDULE 1 | |||||||||||||||||||||||||
NAM TAI ELECTRONICS, INC. | |||||||||||||||||||||||||
BALANCE SHEETS | |||||||||||||||||||||||||
(In thousands of U.S. dollars) | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 68,568 | $ | 40,535 | |||||||||||||||||||||
Fixed deposits maturing over three months | 49,182 | 64,975 | |||||||||||||||||||||||
Prepaid expenses and other receivables | 276 | 2,829 | |||||||||||||||||||||||
Amounts due from subsidiaries | 29,566 | 33,392 | |||||||||||||||||||||||
Total current assets | 147,592 | 141,731 | |||||||||||||||||||||||
Property, plant and equipment, net | 4,221 | 3,967 | |||||||||||||||||||||||
Loan to a subsidiary—non current | 93,108 | 93,108 | |||||||||||||||||||||||
Investments in subsidiaries | 146,191 | 128,715 | |||||||||||||||||||||||
Total assets | $ | 391,112 | $ | 367,521 | |||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accrued expenses and other payables | $ | 1,438 | $ | 509 | |||||||||||||||||||||
Dividend payable | 26,882 | 3,622 | |||||||||||||||||||||||
Total liabilities | 28,320 | 4,131 | |||||||||||||||||||||||
Shareholders’ equity: | |||||||||||||||||||||||||
Common shares ($0.01 par value—authorized 200,000,000 shares, issued and outstanding 44,803,735 and 45,272,735 shares as at December 31, 2012 and 2013) | 448 | 453 | |||||||||||||||||||||||
Additional paid-in capital | 287,602 | 291,731 | |||||||||||||||||||||||
Retained earnings | 74,750 | 71,214 | |||||||||||||||||||||||
Accumulated other comprehensive loss | (8 | ) | (8 | ) | |||||||||||||||||||||
Total shareholders’ equity | 362,792 | 363,390 | |||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 391,112 | $ | 367,521 | |||||||||||||||||||||
SCHEDULE 1 | |||||||||||||||||||||||||
NAM TAI ELECTRONICS, INC. | |||||||||||||||||||||||||
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||
(In thousands of U.S. dollars, except share and per share data) | |||||||||||||||||||||||||
Common | Common | Additional | Retained | Accumulated | Total | ||||||||||||||||||||
Shares | Shares | Paid-in | Earnings | Other | Shareholders’ | ||||||||||||||||||||
Outstanding | Amount | Capital | Comprehensive | Equity | |||||||||||||||||||||
Loss | |||||||||||||||||||||||||
Balance at January 1, 2011 | 44,803,735 | $ | 448 | $ | 286,943 | $ | 46,751 | $ | (8 | ) | $ | 334,134 | |||||||||||||
Equity-settled share-based payment | — | — | 112 | — | — | 112 | |||||||||||||||||||
Net income | — | — | — | 505 | — | 505 | |||||||||||||||||||
Cash dividends declared ($0.28 per share) | — | — | — | (12,545 | ) | — | (12,545 | ) | |||||||||||||||||
Balance at December 31, 2011 | 44,803,735 | $ | 448 | $ | 287,055 | $ | 34,711 | $ | (8 | ) | $ | 322,206 | |||||||||||||
Equity-settled share-based payment | — | — | 547 | — | — | 547 | |||||||||||||||||||
Net income | — | — | — | 66,921 | — | 66,921 | |||||||||||||||||||
Cash dividends declared ($0.60 per share) | — | — | — | (26,882 | ) | — | (26,882 | ) | |||||||||||||||||
Balance at December 31, 2012 | 44,803,735 | $ | 448 | $ | 287,602 | $ | 74,750 | $ | (8 | ) | $ | 362,792 | |||||||||||||
Shares issued on exercise of options | 469,000 | 5 | 2,593 | — | — | 2,598 | |||||||||||||||||||
Equity-settled share-based payment | — | — | 1,536 | — | — | 1,536 | |||||||||||||||||||
Net income | — | — | — | 297 | — | 297 | |||||||||||||||||||
Cash dividends declared ($0.08 per share) | — | — | — | (3,622 | ) | — | (3,622 | ) | |||||||||||||||||
Cash dividends paid | — | — | — | (211 | ) | — | (211 | ) | |||||||||||||||||
Balance at December 31, 2013 | 45,272,735 | $ | 453 | $ | 291,731 | $ | 71,214 | $ | (8 | ) | $ | 363,390 | |||||||||||||
SCHEDULE 1 | |||||||||||||||||||||||||
NAM TAI ELECTRONICS, INC. | |||||||||||||||||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||
(In thousands of U.S. dollars) | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||
Net income attributable to Nam Tai shareholders | $ | 505 | $ | 66,921 | $ | 297 | |||||||||||||||||||
Adjustments to reconcile net income attributable to Nam Tai shareholders to net cash provided by operating activities: | |||||||||||||||||||||||||
Share of net losses (profits) of subsidiaries, net of taxes | 6,753 | (47,246 | ) | 17,476 | |||||||||||||||||||||
Depreciation | 221 | 266 | 111 | ||||||||||||||||||||||
Share-based compensation expenses | 112 | 547 | 1,536 | ||||||||||||||||||||||
Changes in current assets and liabilities: | |||||||||||||||||||||||||
(Increase) decrease in prepaid expenses and other receivables | (371 | ) | 228 | (2,553 | ) | ||||||||||||||||||||
Increase (decrease) in accrued expenses and other payables | 231 | (443 | ) | (929 | ) | ||||||||||||||||||||
Net cash provided by operating activities | $ | 7,451 | $ | 20,273 | $ | 15,938 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Purchase of property, plant and equipment | (4,708 | ) | — | — | |||||||||||||||||||||
Decrease in deposit for purchase of property, plant and equipment | 433 | — | — | ||||||||||||||||||||||
Increase in fixed deposits maturing over three months | (34,825 | ) | (14,357 | ) | (15,793 | ) | |||||||||||||||||||
(Increase) decrease in amounts due from subsidiaries | (5,682 | ) | 8,979 | (3,683 | ) | ||||||||||||||||||||
Net cash used in investing activities | $ | (44,782 | ) | $ | (5,378 | ) | $ | (19,476 | ) | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Decrease in amounts due to subsidiaries | (11,194 | ) | — | — | |||||||||||||||||||||
Proceeds from loan to a subsidiary | 35,371 | — | — | ||||||||||||||||||||||
Dividend paid | (8,961 | ) | (12,545 | ) | (27,093 | ) | |||||||||||||||||||
Proceeds from shares issued on exercise of options | — | — | 2,598 | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | $ | 15,216 | $ | (12,545 | ) | $ | (24,495 | ) | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (22,115 | ) | 2,350 | (28,033 | ) | ||||||||||||||||||||
Cash and cash equivalents at beginning of year | 88,333 | 66,218 | 68,568 | ||||||||||||||||||||||
Cash and cash equivalents at end of year | $ | 66,218 | $ | 68,568 | $ | 40,535 | |||||||||||||||||||
SCHEDULE 1 | |||||||||||||||||||||||||
NAM TAI ELECTRONICS, INC. | |||||||||||||||||||||||||
NOTE TO SCHEDULE 1 | |||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||
Schedule 1 has been provided pursuant to the requirements of Rule 12-04(a) and 4-08(e)(3) of Regulation S-X, which require condensed financial information as to financial position, changes in financial position and results and operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of the consolidated and unconsolidated subsidiaries together exceed 25% of consolidated net assets as of end of the most recently completed fiscal year. As of December 31, 2013, $353,270 of the restricted capital and reserves are not available for distribution, and as such, the condensed financial information of the Company has been presented for the years ended December 31, 2011, 2012 and 2013. | |||||||||||||||||||||||||
During the years ended December 31, 2011, 2012 and 2013, no cash dividend was declared and paid by subsidiaries to the Company. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Principles of consolidation | ' | ||||
(a) | Principles of consolidation | ||||
The consolidated financial statements include the financial statements of the Company and all of its subsidiaries. The Company consolidates companies in which it has controlling interest of over 50%. All significant intercompany accounts, transactions and cash flows have been eliminated on consolidation. | |||||
Cash and cash equivalents | ' | ||||
(b) | Cash and cash equivalents | ||||
Cash and cash equivalents include all cash balances and certificates of deposit having a maturity date of three months or less upon acquisition. | |||||
Allowance for doubtful accounts | ' | ||||
(c) | Allowance for doubtful accounts | ||||
Accounts receivable balance is recorded net of allowances for amounts not expected to be collected from customers. Because the accounts receivable are typically unsecured, the Company periodically evaluates the collectability of accounts based on a combination of factors, including a particular customer’s ability to pay as well as the age of the receivables. To evaluate a specific customer’s ability to pay, the Company analyzes financial statements, payment history, third-party credit analysis reports and various information or disclosures by the customer or other publicly available information. In cases where the evidence suggests a customer may not be able to satisfy its obligation to the Company, a specific allowance would be set up for the perceived risk. If the financial condition of customers deteriorates, resulting in an impairment of their ability to make payments, additional allowances may be required. | |||||
Derivative financial instrument | ' | ||||
(d) | Derivative financial instrument | ||||
Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates. Derivative financial instruments are adopted to prudently manage foreign currency exchange rates and not for the purpose of creating speculative positions. Derivatives that we use are primarily foreign currency forward contracts which are either recorded as either assets or liabilities at fair value. Any gains or losses derived from derivative financial instruments are recognized in the consolidated statement of comprehensive income. | |||||
Inventories | ' | ||||
(e) | Inventories | ||||
Inventories are stated at the lower of cost or market value. Cost is determined on the first-in, first-out basis. The standard cost of work-in-progress and finished goods comprises direct materials, labor and manufacturing overheads. Write downs of potentially obsolete or slow-moving inventory are recorded based on management’s analysis of inventory levels. | |||||
For the Company’s FPC and TCA reporting units, the Company orders inventory from its suppliers based on firm customer orders for products that are unique to each customer. The inventory is utilized in production as soon as all the necessary components are received. The only reason that inventory would not be utilized within six months is if a specific customer deferred or canceled an order. As the inventory is typically unique to each customer’s products, it is unusual for the Company to be able to utilize the inventory for other customers’ products. Therefore, the Company’s policy is to negotiate with the customer for the disposal of such inventory that remains unused for six months. The Company does not generally write down its inventories as usually, the customers are held to their purchase commitments. However, there are cases where customers are contractually obligated to purchase the unused inventory from the Company, but the Company may elect not to immediately enforce such contractual right for business reasons. In this connection, the Company will consider writing down these inventory items which remained unused for over six months at the Company’s own cost. Prior to writing down, management would determine if the inventory can be utilized in other products. | |||||
Finance lease receivable | ' | ||||
(f) | Finance lease receivable | ||||
Finance lease receivable is derived from sales of property, plant and equipment and is comprised of the minimum lease payments due on the direct financial lease. From April 1, 2012, monthly interest income has been recognized in the consolidated statement of comprehensive income based on principal balance of $14,000 at an annual interest rate of 10%. | |||||
Property, plant and equipment and land use rights | ' | ||||
(g) | Property, plant and equipment and land use rights | ||||
Property, plant and equipment and land use rights are recorded at cost and include interest on funds borrowed to finance construction, if applicable. For the years ended December 31, 2011, 2012 and 2013, interest of $13, nil and nil was capitalized, respectively. The cost of major improvements and betterments is capitalized whereas the cost of maintenance and repairs is expensed in the year incurred. Assets under construction are not depreciated until construction is completed and the assets are ready for their intended use. Gains and losses from the disposal of property, plant and equipment and land use rights are included in the consolidated statement of comprehensive income. | |||||
The majority of the land in Hong Kong is owned by the government of Hong Kong which leases the land at public auction to non-governmental entities. All of the Company’s leasehold land in Hong Kong have leases of not more than 50 years from the respective balance sheet dates. The cost of such leasehold land is amortized on a straight-line basis over the respective terms of the leases. | |||||
All land in other regions of the PRC is owned by the PRC government. The government in the PRC, according to PRC law, may sell the right to use the land for a specified period of time. Thus, all of the Company’s land purchases in the PRC are considered to be leasehold land and are classified as land use rights in the consolidated balance sheet. They are amortized on a straight-line basis over the respective term of the right to use the land. The land use right certificate in respect of the land in Wuxi with carrying amount of $3,834 has been issued by the relevant government authority in the PRC on March 4, 2014. | |||||
Since August 1, 2009, in order to reflect a more reasonable estimation on the useful lives of the property, plant and equipment, the Company computed depreciation expenses using the straight-line method at the following depreciation rates: | |||||
Classification | Prior to August 1, 2009 | Years | |||
Land use rights | 50 years | 50 years | |||
Buildings | 20 to 50 years | 20 years | |||
Machinery and equipment | 4 to 12 years | 4 years | |||
Leasehold improvements | shorter of lease term or 7 years | shorter of lease term or 4 years | |||
Furniture and fixtures | 4 to 8 years | 4 years | |||
Automobiles | 4 to 6 years | 4 years | |||
Tools and molds | 4 to 6 years | 2 years | |||
Goodwill | ' | ||||
(h) | Goodwill | ||||
The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. Goodwill is not amortized, but is tested for impairment at the reporting unit level at least on an annual basis at the balance sheet date or more frequently if certain indicators arise. In 2011, the Company operated in two reporting units, which are its reportable segments of TCA and CECP. If business conditions or other factors cause the profitability and cash flows of a segment to decline, the Company may be required to record impairment charges for goodwill at that time. The goodwill impairment review is a two-step process in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350-20 “Goodwill”. First step consists of a comparison of the fair value of a reporting unit with its carrying value. An impairment loss may be recognized if the review indicates that the carrying value of a reporting unit exceeds its fair value. Estimates of fair value are primarily determined by using discounted cash flows method. If the carrying amount of a reporting unit exceeds its fair value, second step requires the fair value of the reporting unit to be allocated to all of the assets and liabilities (including any unrecognized intangible assets) of that reporting unit, resulting in an implied fair value of goodwill. If the carrying amount of the goodwill of the reporting unit exceeds the implied fair value, an impairment loss is recognized which is equal to the excess of the carrying amount over the fair value. | |||||
The impairment review is highly judgmental and involves the use of significant estimates and assumptions. These estimates and assumptions have a significant impact on the amount of any impairment loss recognized. Discounted cash flow methodology is based on a number of estimates and assumptions, including the projected future operating results of the reporting unit, discount rate, long-term growth rate and appropriate market comparables. | |||||
Impairment loss on goodwill of the CECP reporting unit of $2,951 was identified and recognized in 2011. Goodwill has been fully impaired since December 31, 2011. | |||||
Impairment or disposal of long-lived assets | ' | ||||
(i) | Impairment or disposal of long-lived assets | ||||
Long-lived assets are included in impairment evaluations when events and circumstances exist that indicate the carrying value of these assets may not be recoverable. In accordance with FASB ASC 360 “Property, Plant and Equipment”, the Company assesses the recoverability of the carrying value of long-lived assets by first grouping its long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the asset group) and, secondly, estimating the undiscounted future cash flows that are directly associated with and expected to arise from the use of and eventual disposition of such asset group. The Company estimates the undiscounted cash flows over the remaining useful life of the primary asset within the asset group. If the carrying value of the asset group exceeds the estimated undiscounted cash flows, the Company recognizes an impairment loss to the extent the carrying value of the long-lived asset exceeds its fair value. The Company determines fair value through quoted market prices in active markets or, if quotations of market prices are unavailable, through the performance of internal analysis using a discounted cash flow methodology or obtains external appraisals from independent valuation firms. The undiscounted and discounted cash flow analyses based on a number of estimates and assumptions, including the expected period over which the asset will be utilized, projected future operating results of the asset group, discount rate and long-term growth rate. | |||||
Long-lived assets to be disposed of are stated at the lower of fair value or carrying value. Expected future operating losses from discontinued operations are recorded in the periods in which the losses are incurred. In view of the sustained level of the Company’s stock price during 2011 and our resulting market capitalization throughout 2011 at a level below our recorded book value at December 31, 2011, in accordance with FASB ASC 360 “Property, Plant and Equipment”, the Company conducted a review of Nam Tai’s long-lived assets for potential impairment. | |||||
In 2011, management assessed and determined that there were no events or changes in circumstances to indicate that the carrying amounts of long-lived assets in Nam Tai’s Shenzhen facilities were not recoverable and there were no impairment tests conducted with respect to those assets. However, in view of the continuous operating losses and negative cash flows in Nam Tai’s Wuxi facilities, the Company assessed the impairment of its long-lived assets used in the Wuxi facilities, by comparing the undiscounted cash flows with the carrying amounts of the assets. The results indicated that the carrying amounts of the Company’s long-lived assets at December 31, 2011 were less than the undiscounted cash flows. | |||||
In 2012, management assessed and determined that there were no events or changes in circumstances to indicate that the carrying amount of long-lived assets in Nam Tai’s Shenzhen facilities were not recoverable and there were no impairment tests conducted with respect to those assets. In view of the fluctuations of future customer orders in Wuxi, the Company assessed the impairment of its long-lived assets used in the Wuxi facilities, by comparing the undiscounted cash flows with the carrying amounts of the assets. The results indicated the carrying amounts of the company’s long-lived assets at December 31, 2012 were less than the undiscounted cash flows. | |||||
In 2013, in view of the cessation of the core business of Liquid Crystal Display Modules (“LCM”) production in Shenzhen, which is classified as TCA segment, by the end of April 2014, the Company assessed the impairment of its long-lived assets used in the Shenzhen facilities, by comparing the undiscounted cash flows with the carrying amounts of the assets. The results indicated the carrying amounts of the Company’s long-lived assets at December 31, 2013 were less than the undiscounted cash flows. | |||||
No impairment was recognized in respect of the Company’s long-lived assets for the years ended December 31, 2011, 2012 and 2013. | |||||
A loss of $34,955 was recognized to write down the long-lived assets to their fair values upon reclassification to assets held for sale. | |||||
Assets held for sale | ' | ||||
(j) | Assets held for sale | ||||
Long-lived assets or asset groups that are part of a disposal group that meets the criteria to be classified as held for sale are not assessed for impairment but rather if fair value, less cost to sell, of the disposal group is less than its carrying value a loss is recorded against the disposal group. | |||||
Accruals and provisions for loss contingencies | ' | ||||
(k) | Accruals and provisions for loss contingencies | ||||
The Company makes provisions for all loss contingencies when information available prior to the issuance of the consolidated financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the consolidated financial statements and the amount of loss can be reasonably estimated. | |||||
For provisions or accruals related to litigation, the Company makes provisions based on information from legal counsels and the best estimation of management. The Company assesses the potential liability for the significant legal proceedings in accordance with FASB ASC 450 “Contingencies”. FASB ASC 450 requires a liability to be recorded if the contingency loss is probable and the amount of loss can be reasonably estimated. The actual resolution of the contingency may differ from the Company’s estimates. If the contingency is settled for an amount greater than the estimate, a future charge to income would result. Likewise, if the contingency is settled for an amount that is less than our estimate, a future credit to income would result. | |||||
Revenue recognition | ' | ||||
(l) | Revenue recognition | ||||
The Company recognizes revenue when all of the following conditions are met: | |||||
• | Persuasive evidence of an arrangement exists; | ||||
• | Delivery has occurred or services have been rendered; | ||||
• | Price to the customer is fixed or determinable; and | ||||
• | Collectability is reasonably assured. | ||||
Revenue from sales of products is recognized when the title is passed to customers upon shipment and when collectability is reasonably assured. The Company does not provide its customers with the right of return (except for quality), price protection, rebates or discounts. There are no customer acceptance provisions associated with the Company’s products, except for quality. All sales are based on firm customer orders with fixed terms and conditions, which generally cannot be modified. | |||||
Shipping and handling costs | ' | ||||
(m) | Shipping and handling costs | ||||
Shipping and handling costs are classified as cost of sales for materials purchased and selling expenses for those costs incurred in the delivery of finished products. During the years ended December 31, 2011, 2012 and 2013, shipping and handling costs classified as costs of sales were $366, $227 and $14, respectively. During the years ended December 31, 2011, 2012 and 2013, shipping and handling costs classified as selling expenses were $428, $301 and $104, respectively. | |||||
Research and development costs | ' | ||||
(n) | Research and development costs | ||||
Research and development costs are incurred in the development of new products and processes, including significant improvements and refinements to existing products and are expensed as incurred. | |||||
Advertising expenses | ' | ||||
(o) | Advertising expenses | ||||
The Company expenses advertising costs as incurred. Advertising expenses were nil, $348 and $1 for the year ended December 31, 2011, 2012 and 2013, respectively. | |||||
Staff retirement plan costs | ' | ||||
(p) | Staff retirement plan costs | ||||
The Company’s costs related to the staff retirement plans (see Note 16) are charged to the consolidated statement of comprehensive income as incurred. | |||||
Income taxes | ' | ||||
(q) | Income taxes | ||||
Deferred income taxes are provided using the asset and liability method in accordance with FASB ASC 740 “Income Taxes”. Under this method, deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the consolidated financial statements or the expected date of reversal of the timing differences. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all, the deferred tax asset will not be realized. | |||||
FASB ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements, and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides accounting guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Interest and penalties from tax assessments, if any, are included in income taxes in the consolidated statement of comprehensive income. | |||||
Foreign currency transactions and translations | ' | ||||
(r) | Foreign currency transactions and translations | ||||
All transactions in currencies other than functional currencies during the year are translated at the exchange rates prevailing on the respective transaction dates. Monetary assets and liabilities existing at the balance sheet date denominated in currencies other than functional currencies are remeasured at the exchange rates existing on that date. Exchange differences are recorded in the consolidated statement of comprehensive income. | |||||
The functional currencies of the Company and its subsidiaries include the U.S. dollar and the Hong Kong dollar. The financial statements of all subsidiaries are translated in accordance with FASB ASC 830 “Foreign Currency Matters”. | |||||
All assets and liabilities are translated at the rates of exchange ruling at the balance sheet date and all income and expense items are translated at the average rates of exchange over the year. All exchange differences arising from the translation of subsidiaries’ financial statements are recorded as a component of comprehensive income. | |||||
Earnings per share | ' | ||||
(s) | Earnings per share | ||||
Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the year. | |||||
Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the year. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. | |||||
Stock options | ' | ||||
(t) | Stock options | ||||
The Company has two stock-based employee compensation plans, as more fully described in Note 14(b). The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service, the requisite service period (usually the vesting period), in exchange for the award. The grant-date fair value of employee share options and similar instruments are estimated using option-pricing models. If the award is modified after the grant date, incremental compensation cost is recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. | |||||
Use of estimates | ' | ||||
(u) | Use of estimates | ||||
The preparation of consolidated 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||
Comprehensive loss | ' | ||||
(v) | Comprehensive loss | ||||
Accumulated other comprehensive loss represents principally foreign currency translation adjustments and is included in the consolidated statement of changes in equity. | |||||
Fair value of financial instruments | ' | ||||
(w) | Fair value of financial instruments | ||||
The Company follows FASB ASC 820 “Fair Value Measurements and Disclosures” to measure its assets and liabilities. | |||||
Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and based the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | |||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||
Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||
Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | |||||
The carrying amounts of cash and cash equivalents, fixed deposits maturing over three months, accounts receivable, other receivables, notes payable, accrued expenses and accounts payable, trust receipt loans, other payables, short term borrowings, and dividend payable approximate their fair values due to the short term nature of these instruments. | |||||
The fair value of the Company’s derivative financial instruments is detailed in Note 4. | |||||
As of December 31, 2012 and 2013, the Company did not have any non financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements, at least annually, on a recurring basis. | |||||
Concentration of other risk | ' | ||||
(x) | Concentration of other risk | ||||
The market for our products is characterized by rapidly changing technology and evolving industry standards. The Company’s results of operations are affected by a wide variety of factors, including general economic conditions; manufacturing capacity; the ability to manufacture efficiently; demand for the Company’s products; competition and intellectual property in a rapidly evolving market. As a result, the Company may experience substantial period-to-period fluctuations in future operating results due to the factors mentioned above. | |||||
Recent changes in accounting standards | ' | ||||
(y) | Recent changes in accounting standards | ||||
In March 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-05, “Foreign Currency Matters (Topic 830)”. The objective of this Update is to resolve the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. This accounting standard update is effective prospectively for annual and interim periods beginning after December 31, 2013. The Company believes that its adoption of this Update will not have any material impact on its consolidated financial statements. | |||||
In April 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205), Liquidation of Accounting”. The amendments of this Update are being issued to clarify when an entity should apply the liquidation basis of accounting. The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis so accounting. The amendments apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP except investment companies that are regulated under the Investment Company Act of 1940. The amendments are effective for entities that determine liquidation imminent during annual reporting periods beginning after December 15, 2013. The Company does not expect the adoption of this Update will have material impact on its consolidated financial statements. | |||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The current practice in FASB ASC 740, “Income Taxes” does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The objective of this Update is to eliminate the diversity in practice in the presentation of unrecognized tax benefits. This accounting standard update is effective for fiscal years, and interim within those years, beginning after December 15, 2013. Early adoption is permitted. The Company believes that its adoption of this Update will not have any material impact on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Depreciation Expenses Using Straight-Line Method | ' | ||||
Since August 1, 2009, in order to reflect a more reasonable estimation on the useful lives of the property, plant and equipment, the Company computed depreciation expenses using the straight-line method at the following depreciation rates: | |||||
Classification | Prior to August 1, 2009 | Years | |||
Land use rights | 50 years | 50 years | |||
Buildings | 20 to 50 years | 20 years | |||
Machinery and equipment | 4 to 12 years | 4 years | |||
Leasehold improvements | shorter of lease term or 7 years | shorter of lease term or 4 years | |||
Furniture and fixtures | 4 to 8 years | 4 years | |||
Automobiles | 4 to 6 years | 4 years | |||
Tools and molds | 4 to 6 years | 2 years |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventory | ' | ||||||||
Inventories consist of the following: | |||||||||
At December 31, | 2012 | 2013 | |||||||
Raw materials | $ | 30,914 | $ | 20,580 | |||||
Work-in-progress | 11,189 | 8,647 | |||||||
Finished goods | 4,629 | 1,266 | |||||||
$ | 46,732 | $ | 30,493 | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instrument (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Notional Principal Amount, Credit Risk Amount and Fair Value Associated With Outstanding Derivative Instrument | ' | ||||||||||||
The following table shows the notional principal amount of the Company’s outstanding derivative instrument, its credit risk amount and its fair value associated with outstanding or unsettled derivative instrument as of December 31, 2012 and 2013. | |||||||||||||
2012 | |||||||||||||
Notional | Credit risk | Fair value of | |||||||||||
principal | amount | derivatives not | |||||||||||
designated as hedge | |||||||||||||
instrument | |||||||||||||
Instruments not designated as accounting hedge: | |||||||||||||
Foreign currency forward contract (1) | $ | 12,200 | $ | 99 | $ | 99 | |||||||
2013 | |||||||||||||
Notional | Credit risk | Fair value of | |||||||||||
principal | amount | derivatives not | |||||||||||
designated as hedge | |||||||||||||
instrument | |||||||||||||
Instruments not designated as accounting hedge: | |||||||||||||
Foreign currency forward contract (1) | $ | — | $ | — | $ | — | |||||||
-1 | The fair value is measured using Level 2 fair value inputs and is recorded as current assets in the consolidated balance sheet. |
Finance_Lease_Receivable_Table
Finance Lease Receivable (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Contractual Maturities on Finance Lease Receivable | ' | ||||
Contractual maturities on finance lease receivable are as follows: | |||||
Years ending December 31, | Contractual maturities | ||||
2014 | $ | 3,921 | |||
2015 | 3,939 | ||||
2016 | 1,048 | ||||
Total | $ | 8,908 | |||
Assets_Held_for_Sale_Tables
Assets Held for Sale (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Text Block [Abstract] | ' | ||||
Schedule of Assets Held for Sale | ' | ||||
Assets held for sale comprise the following: | |||||
At December 31, | 2013 | ||||
At net book value: | |||||
Land | $ | 4,215 | |||
Buildings | 18,784 | ||||
Machinery and equipment | 19,625 | ||||
Leasehold improvements | 2,429 | ||||
Others | 370 | ||||
Total | $ | 45,423 | |||
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment, Net | ' | ||||||||
Property, plant and equipment, net consist of the following: | |||||||||
At December 31, | 2012 | 2013 | |||||||
At cost: | |||||||||
Buildings | $ | 55,156 | $ | 54,557 | |||||
Machinery and equipment | 41,239 | 41,338 | |||||||
Leasehold improvements | 13,044 | 16,821 | |||||||
Furniture and fixtures | 3,782 | 506 | |||||||
Automobiles | 288 | 179 | |||||||
Tools and molds | 111 | 120 | |||||||
Total | 113,620 | 113,521 | |||||||
Less: accumulated depreciation | (76,698 | ) | (64,479 | ) | |||||
36,922 | 49,042 | ||||||||
Construction in progress | 27,304 | 34 | |||||||
Net book value | $ | 64,226 | $ | 49,076 | |||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Summary of Changes in Carrying Value of Goodwill by Reporting Unit | ' | ||||
A summary of the changes in the carrying value of goodwill, by reporting unit, is as follows: | |||||
CECP | |||||
reporting unit | |||||
At January 1, 2011 | $ | 2,951 | |||
Impairment loss recognized during the year | (2,951 | ) | |||
At December 31, 2011, 2012 and 2013 | — | ||||
Investments_in_Subsidiaries_Ta
Investments in Subsidiaries (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | ' | ||||||||||||
Investments in Subsidiaries | ' | ||||||||||||
Subsidiaries | Place of | Principal | Percentage of Ownership as | ||||||||||
Incorporation | activity | at December 31, | |||||||||||
2012 | 2013 | ||||||||||||
Consolidated principal subsidiaries: | |||||||||||||
Nam Tai Electronic & Electrical Products Limited (“NTEEP”) | Cayman Islands | Investment holding | 100 | % | 100 | % | |||||||
Nam Tai Holdings Limited (“NTHL”) | BVI | Investment holding | 100 | % | 100 | % | |||||||
Nam Tai Group Management Limited (“NTGM”) | Hong Kong | Inactive | 100 | % | 100 | % | |||||||
Nam Tai Telecom (Hong Kong) Company Limited (“NTT”) | Hong Kong | Inactive | 100 | % | 100 | % | |||||||
Nam Tai Trading Company Limited (“NTTC”) (1) | Hong Kong | In liquidation | 100 | % | — | ||||||||
J.I.C. Enterprises (HK) Ltd. (“JICE”) (2) | Hong Kong | Inactive | 100 | % | 100 | % | |||||||
Namtai Investment (Shenzhen) Co., Ltd. (“NTISZ”) | PRC | Investment holding | 100 | % | 100 | % | |||||||
Zastron Electronic (Shenzhen) Co., Ltd. (“Zastron Shenzhen”) | PRC | Manufacturing and | 100 | % | 100 | % | |||||||
trading | |||||||||||||
Wuxi Zastron Precision-Flex Co., Ltd. (“Wuxi Zastron-Flex”) | PRC | Manufacturing and | 100 | % | 100 | % | |||||||
trading | |||||||||||||
-1 | NTTC is in liquidation and the Joint and Several Liquidators confirmed that all assets of NTTC have been taken over by the Joint and Several Receivers in January 2013. | ||||||||||||
-2 | NTHL acquired a 100% equity interest in JICE for a consideration of HK$1.00 on August 2, 2012, which was incorporated in February 1983 in Hong Kong. JICE’s issued share capital amounted to HK$500,000, which is made up of 500,000 ordinary shares of HK$1 each. The primary reason for the acquisition was for re-organization. |
Accrued_Expenses_and_Other_Pay1
Accrued Expenses and Other Payables (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Accrued Expenses and Other Payables | ' | ||||||||
Accrued expenses and other payables consisted of the following: | |||||||||
At December 31, | 2012 | 2013 | |||||||
Accrued salaries | $ | 3,404 | $ | 13,821 | |||||
Accrued bonus | 3,346 | 221 | |||||||
Accrued tooling and equipment charges | 865 | 141 | |||||||
Accrued professional fees | 2,287 | 1,262 | |||||||
Construction payable | 4,850 | 319 | |||||||
Advance received from customers | 16,644 | 10,821 | |||||||
Others | 2,032 | 2,275 | |||||||
$ | 33,428 | $ | 28,860 | ||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||
Summary of Financial Information for Discontinued Operations | ' | ||||||||||||
Summarized financial information for our discontinued operations is as follows: | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net sales | 93,193 | 493,997 | 47,086 | ||||||||||
(Loss) income before income tax | (14,767 | ) | 31,315 | (37,259 | ) | ||||||||
Income tax credit (expense) | 1,664 | (1,827 | ) | (3,660 | ) | ||||||||
(Loss) income from discontinued operations, net of income tax | (13,103 | ) | 29,488 | (40,919 | ) | ||||||||
Accounts receivable | 54,003 | — | |||||||||||
Inventories | 8,906 | — | |||||||||||
Prepaid expense and other receivables | 8,813 | 2,364 | |||||||||||
Deferred tax assets | 3,743 | — | |||||||||||
Property, plant and equipment, net | 87,329 | — | |||||||||||
Land use rights | 5,314 | — | |||||||||||
Other assets | 424 | — | |||||||||||
Total assets | 168,532 | 2,364 | |||||||||||
Notes payable | 3,878 | — | |||||||||||
Accounts payable | 46,169 | — | |||||||||||
Trust Receipt loans | 3,558 | — | |||||||||||
Accrued expenses and other payables | 8,304 | 234 | |||||||||||
Short term bank borrowings | 4,824 | — | |||||||||||
Income tax payable | 476 | — | |||||||||||
Total liabilities | 67,209 | 234 | |||||||||||
Net assets of discontinued operations | 101,323 | 2,130 | |||||||||||
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
A summary of stock option activity during the three years ended December 31, 2013 is as follows: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
options | average | average fair | intrinsic | ||||||||||||||
exercise | value per | value | |||||||||||||||
price | option | ||||||||||||||||
Outstanding and exercisable at January 1, 2011 | 120,000 | $ | 4.43 | $ | 1.24 | ||||||||||||
Granted | 60,000 | $ | 5.92 | $ | 1.87 | ||||||||||||
Outstanding and exercisable at December 31, 2011 | 180,000 | $ | 4.93 | $ | 1.45 | ||||||||||||
Granted | 1,503,000 | $ | 6.03 | $ | 1.26 | ||||||||||||
Expired | (60,000 | ) | $ | 4.41 | $ | 0.89 | |||||||||||
Outstanding and exercisable at December 31, 2012 | 1,623,000 | $ | 5.97 | $ | 1.29 | ||||||||||||
Granted | 60,000 | $ | 7.5 | $ | 1.88 | ||||||||||||
Exercised | (469,000 | ) | $ | 5.54 | $ | 1.13 | |||||||||||
Expired | (30,000 | ) | $ | 4.45 | $ | 1.58 | |||||||||||
Outstanding and exercisable at December 31, 2013 | 1,184,000 | $ | 6.26 | $ | 1.62 | $ | 1,046 | ||||||||||
Exercisable at December 31, 2013 | $ | 419 | |||||||||||||||
Expected to vest after December 31, 2013 | $ | 627 | |||||||||||||||
Option Granted by Company | ' | ||||||||||||||||
Details of the options granted by the Company in 2011, 2012 and 2013 are as follows: | |||||||||||||||||
Number of | Vesting period | Exercise | Exercisable period | Weighted | |||||||||||||
price | remaining | ||||||||||||||||
options | contractual | ||||||||||||||||
granted | life in months | ||||||||||||||||
In 2011 | |||||||||||||||||
60,000 | 100% vested at date of grant | $ | 5.92 | June 10, 2011 to June 9, 2014 | 5.3 | ||||||||||||
In 2012 | |||||||||||||||||
600,000 | 100% vested in April 2013 | $ | 6.66 | April 1, 2013 to April 30, 2016* | 28 | ||||||||||||
831,000 | 50% vested in January 2013 and 50% will vest after 2013 at the time when the option certificates are issued to the grantees | $ | 5.63 | January 1, 2013 to April 26, 2015 | 15.9 | ||||||||||||
60,000 | 100% vested at date of grant | $ | 5.34 | June 6, 2012 to June 5, 2015 | 17.2 | ||||||||||||
12,000 | 1,000 shares monthly from August 1, 2012 | $ | 5.95 | August 1, 2012 to July 31, 2014 | 7 | ||||||||||||
In 2013 | |||||||||||||||||
60,000 | 100% vested at date of grant | $ | 7.5 | May 31, 2013 to May 31, 2016 | 29 | ||||||||||||
* | Exercisable period modified in 2013 | ||||||||||||||||
Weighted Average Fair Value Options Granted, Assumptions | ' | ||||||||||||||||
The weighted average fair value of options granted during 2011, 2012 and 2013 was $1.87, $1.26 and $1.88, respectively, using the Black-Scholes option-pricing model based on the following assumptions: | |||||||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||||||
Risk-free interest rate | 0.75 | % | 0.30% to 0.39 | % | 0.52 | % | |||||||||||
Expected life | 3 years | 2 years to 4.2 years | 3 years | ||||||||||||||
Expected volatility | 50.99 | % | 38.57 % to 48.23 | % | 52.36 | % | |||||||||||
Expected dividend yield | 1.69 | % | 3.30% to 4.49 | % | 5.87 | % |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||
The calculations of basic earnings per share and diluted earnings per share are computed as follows: | |||||||||||||
Income | Weighted | Per | |||||||||||
(loss) | average | share | |||||||||||
number of | amount | ||||||||||||
shares | |||||||||||||
Year ended December 31, 2011 | |||||||||||||
Basic earnings per share from continuing operations | $ | 13,608 | 44,803,735 | $ | 0.3 | ||||||||
Basic loss per share from discontinued operations | $ | (13,103 | ) | 44,803,735 | $ | (0.29 | ) | ||||||
Basic earnings per share | $ | 505 | 44,803,735 | $ | 0.01 | ||||||||
Effect of dilutive securities — Stock options | 37,467 | ||||||||||||
Diluted earnings per share from continuing operations | $ | 13,608 | 44,841,202 | $ | 0.3 | ||||||||
Diluted loss per share from discontinued operations | $ | (13,103 | ) | 44,841,202 | $ | (0.29 | ) | ||||||
Diluted earnings per share | $ | 505 | 44,841,202 | $ | 0.01 | ||||||||
Income | Weighted | Per | |||||||||||
average | share | ||||||||||||
number of | amount | ||||||||||||
shares | |||||||||||||
Year ended December 31, 2012 | |||||||||||||
Basic earnings per share from continuing operations | $ | 37,433 | 44,803,735 | $ | 0.83 | ||||||||
Basic earnings per share from discontinued operations | $ | 29,488 | 44,803,735 | $ | 0.66 | ||||||||
Basic earnings per share | $ | 66,921 | 44,803,735 | $ | 1.49 | ||||||||
Effect of dilutive securities — Stock options | 541,518 | ||||||||||||
Diluted earnings per share from continuing operations | $ | 37,433 | 45,345,253 | $ | 0.83 | ||||||||
Diluted earnings per share from discontinued operations | $ | 29,488 | 45,345,253 | $ | 0.65 | ||||||||
Diluted earnings per share | $ | 66,921 | 45,345,253 | $ | 1.48 | ||||||||
Income | Weighted | Per | |||||||||||
(loss) | average | share | |||||||||||
number of | amount | ||||||||||||
shares | |||||||||||||
Year ended December 31, 2013 | |||||||||||||
Basic earnings per share from continuing operations | $ | 41,216 | 45,222,532 | $ | 0.91 | ||||||||
Basic loss per share from discontinued operations | $ | (40,919 | ) | 45,222,532 | $ | (0.90 | ) | ||||||
Basic earnings per share | $ | 297 | 45,222,532 | $ | 0.01 | ||||||||
Effect of dilutive securities — Stock options | 470,318 | ||||||||||||
Diluted earnings per share from continuing operations | $ | 41,216 | 45,692,850 | $ | 0.9 | ||||||||
Diluted loss per share from discontinued operations | $ | (40,919 | ) | 45,692,850 | $ | (0.89 | ) | ||||||
Diluted earnings per share | $ | 297 | 45,692,850 | $ | 0.01 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of Income Before Income Tax | ' | ||||||||||||
The components of income before income tax are as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
PRC, excluding Hong Kong | $ | 22,169 | $ | 55,211 | $ | 53,556 | |||||||
Hong Kong and other jurisdictions | (6,365 | ) | (2,590 | ) | (1,197 | ) | |||||||
$ | 15,804 | $ | 52,621 | $ | 52,359 | ||||||||
Current and Deferred Components of Income Tax Expense | ' | ||||||||||||
The current and deferred components of the income tax expense appearing in the consolidated statements of income are as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
Current tax | $ | (3,672 | ) | $ | (13,123 | ) | $ | (10,370 | ) | ||||
Deferred tax | 1,476 | (2,065 | ) | (773 | ) | ||||||||
$ | (2,196 | ) | $ | (15,188 | ) | $ | (11,143 | ) | |||||
Deferred Tax Assets and Liabilities | ' | ||||||||||||
The Company’s deferred tax assets and liabilities as of December 31, 2012 and 2013 are attributable to the following: | |||||||||||||
December 31, | 2012 | 2013 | |||||||||||
Net operating losses | $ | 5,316 | $ | 5,960 | |||||||||
Obsolete inventories | 343 | — | |||||||||||
Allowance for doubtful accounts | — | 539 | |||||||||||
Provision for goods return | 101 | — | |||||||||||
Property, plant and equipment | 1,690 | 2,123 | |||||||||||
Total deferred tax assets | 7,450 | 8,622 | |||||||||||
Less: valuation allowance | (5,316 | ) | (8,622 | ) | |||||||||
Deferred tax assets | 2,134 | — | |||||||||||
Deferred tax liability arising from withholding tax on undistributed earnings of PRC subsidiaries | (1,379 | ) | — | ||||||||||
Net deferred tax assets | $ | 755 | $ | — | |||||||||
Movement of Deferred Tax Assets Valuation Allowance | ' | ||||||||||||
Movement of valuation allowance: | |||||||||||||
December 31, | 2011 | 2012 | 2013 | ||||||||||
At beginning of the year | $ | 916 | $ | 1,344 | $ | 5,316 | |||||||
Current year addition | 428 | 3,972 | 3,306 | ||||||||||
At end of the year | $ | 1,344 | $ | 5,316 | $ | 8,622 | |||||||
Reconciliation of Income Tax Expense to Amount Computed by applying Current Tax Rate to Income Before Income Taxes | ' | ||||||||||||
A reconciliation of the income tax expense to the amount computed by applying the current tax rate to the income before income taxes in the consolidated statements of comprehensive income is as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
Income before income taxes | $ | 15,804 | $ | 52,621 | $ | 52,359 | |||||||
PRC tax rate | 24 | % | 25 | % | 25 | % | |||||||
Income tax expense at PRC tax rate on income before income tax | $ | (3,793 | ) | $ | (13,155 | ) | $ | (13,090 | ) | ||||
Effect of difference between Hong Kong and PRC tax rates applied to Hong Kong income | (221 | ) | (258 | ) | (487 | ) | |||||||
Effect of change in tax law | 142 | — | — | ||||||||||
Change in valuation allowance | (428 | ) | (3,972 | ) | (3,306 | ) | |||||||
Reversal of deferred tax liability on withholding tax on undistributed profits of PRC subsidiaries | — | — | 1,378 | ||||||||||
Tax benefit (expense) arising from items which are not assessable (deductible) for tax purposes: | |||||||||||||
Non-deductible impairment loss on goodwill | (708 | ) | — | — | |||||||||
Non-deductible and non-taxable items | 1,574 | 49 | 2,292 | ||||||||||
Over provision of income tax expense in prior years | 1,369 | 185 | — | ||||||||||
Withholding tax | — | 1,510 | 1,192 | ||||||||||
Others | (131 | ) | 453 | 878 | |||||||||
Income tax expense | $ | (2,196 | ) | $ | (15,188 | ) | $ | (11,143 | ) | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||
Contractual Obligations, Including Capital Expenditures and Future Minimum Lease Payments Under Non-Cancelable Operating Lease Arrangements and Purchase Commitments | ' | ||||||||||||||||
Our contractual obligations, including purchase commitments under non-cancelable arrangements as of December 31, 2013, are summarized below. We do not participate in, or secure financing for, any unconsolidated limited purpose entities. | |||||||||||||||||
Payments (in thousands) due by period | |||||||||||||||||
Total | 2014 | 2015 | 2016 | ||||||||||||||
Contractual Obligation | |||||||||||||||||
Other purchase obligations | 22,461 | 22,461 | — | — | |||||||||||||
Total | $ | 22,461 | $ | 22,461 | $ | — | $ | — | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
Year ended December 31, 2011 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Net sales | $ | 509,124 | $ | — | $ | 509,124 | |||||||
Cost of sales | (479,037 | ) | — | (479,037 | ) | ||||||||
Gross profit | 30,087 | — | 30,087 | ||||||||||
General and administrative expenses | (9,662 | ) | (7,117 | ) | (16,779 | ) | |||||||
Selling expenses | (2,886 | ) | — | (2,886 | ) | ||||||||
Research and development expenses | (1,709 | ) | — | (1,709 | ) | ||||||||
Impairment loss on goodwill | — | (2,951 | ) | (2,951 | ) | ||||||||
Other income, net | 3,659 | 3,707 | 7,366 | ||||||||||
Interest income | 172 | 2,504 | 2,676 | ||||||||||
Income (loss) before income tax | 19,661 | (3,857 | ) | 15,804 | |||||||||
Income tax expenses | (2,196 | ) | — | (2,196 | ) | ||||||||
Net income (loss) from continuing operations | $ | 17,465 | $ | (3,857 | ) | $ | 13,608 | ||||||
Year ended December 31, 2012 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Net sales | $ | 678,113 | $ | — | $ | 678,113 | |||||||
Cost of sales | (609,875 | ) | — | (609,875 | ) | ||||||||
Gross profit | 68,238 | — | 68,238 | ||||||||||
General and administrative expenses | (16,328 | ) | (4,411 | ) | (20,739 | ) | |||||||
Selling expenses | (1,483 | ) | — | (1,483 | ) | ||||||||
Research and development expenses | (716 | ) | — | (716 | ) | ||||||||
Other income, net | 4,016 | 1,267 | 5,283 | ||||||||||
Interest income | 167 | 1,871 | 2,038 | ||||||||||
Income (loss) before income tax | 53,894 | (1,273 | ) | 52,621 | |||||||||
Income tax expenses | (15,188 | ) | — | (15,188 | ) | ||||||||
Net income (loss) from continuing operations | $ | 38,706 | $ | (1,273 | ) | $ | 37,433 | ||||||
Year ended December 31, 2013 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Net sales | $ | 855,847 | $ | — | $ | 855,847 | |||||||
Cost of sales | (788,212 | ) | — | (788,212 | ) | ||||||||
Gross profit | 67,635 | — | 67,635 | ||||||||||
General and administrative expenses | (26,045 | ) | (7,272 | ) | (33,317 | ) | |||||||
Selling expenses | (462 | ) | — | (462 | ) | ||||||||
Other operating income | 1,609 | — | 1,609 | ||||||||||
Other income, net | 6,573 | 5,382 | 11,955 | ||||||||||
Interest income | 1,624 | 3,315 | 4,939 | ||||||||||
Income before income tax | 50,934 | 1,425 | 52,359 | ||||||||||
Income tax (expenses) credit | (12,522 | ) | 1,379 | (11,143 | ) | ||||||||
Net income from continuing operations | $ | 38,412 | $ | 2,804 | $ | 41,216 | |||||||
Segment Information | ' | ||||||||||||
Year ended December 31, 2011 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Depreciation and amortization | $ | 5,252 | $ | 260 | $ | 5,512 | |||||||
Capital expenditures | $ | 7,424 | $ | 4,723 | $ | 12,147 | |||||||
Total assets | $ | 169,048 | $ | 132,915 | $ | 301,963 | |||||||
Year ended December 31, 2012 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Depreciation and amortization | $ | 7,909 | $ | 293 | $ | 8,202 | |||||||
Capital expenditures | $ | 29,488 | $ | — | $ | 29,488 | |||||||
Total assets | $ | 321,575 | $ | 145,937 | $ | 467,512 | |||||||
Year ended December 31, 2013 | |||||||||||||
TCA | Corporate | Total | |||||||||||
Depreciation and amortization | $ | 12,761 | $ | 290 | $ | 13,051 | |||||||
Capital expenditures | $ | 277 | $ | 34 | $ | 311 | |||||||
Total assets | $ | 355,000 | $ | 137,055 | $ | 492,055 | |||||||
Summary of Net Income (Loss) by Geographical Areas | ' | ||||||||||||
A summary of net sales, net income (loss) attributable to Nam Tai shareholders and long-lived assets by geographical areas is as follows: | |||||||||||||
By geographical area: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
Net sales from operations within: | |||||||||||||
- PRC, excluding Hong Kong: | $ | 509,124 | $ | 678,113 | $ | 855,847 | |||||||
Net income (loss) attributable to Nam Tai shareholders within: | |||||||||||||
- PRC, excluding Hong Kong | $ | 19,973 | $ | 40,023 | $ | 43,602 | |||||||
- Hong Kong | (6,365 | ) | (2,590 | ) | (2,386 | ) | |||||||
Total net income attributable to Nam Tai shareholders | $ | 13,608 | $ | 37,433 | $ | 41,216 | |||||||
Summary of Net Sales to Customers by Geographical Areas | ' | ||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
Net sales to customers by geographical area: | |||||||||||||
- Hong Kong | $ | 69,135 | $ | 72,498 | $ | 58,045 | |||||||
- Europe | 30,282 | 14,400 | 6,496 | ||||||||||
- United States | 32,332 | 3,021 | — | ||||||||||
- PRC (excluding Hong Kong) | 793 | 1,316 | — | ||||||||||
- Japan | 374,129 | 583,280 | 791,299 | ||||||||||
- Others | 2,453 | 3,598 | 7 | ||||||||||
Total net sales | $ | 509,124 | $ | 678,113 | $ | 855,847 | |||||||
Summary of Long-Lived Assets by Geographical Areas | ' | ||||||||||||
As of December 31, | 2011 | 2012 | 2013 | ||||||||||
Long-lived assets by geographical area: | |||||||||||||
- PRC, excluding Hong Kong | $ | 49,206 | $ | 71,151 | $ | 56,060 | |||||||
- Hong Kong | 4,586 | 4,293 | 3,967 | ||||||||||
Total long-lived assets | $ | 53,792 | $ | 75,444 | $ | 60,027 | |||||||
Customers which Accounted for Ten Percent or More | ' | ||||||||||||
The Company’s customers which accounted for 10% or more of its sales are as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
A(1) | $ | 369,105 | $ | 570,246 | $ | 791,256 | |||||||
B | 58,527 | N/A | N/A | ||||||||||
C | 62,894 | N/A | N/A | ||||||||||
$ | 490,526 | $ | 570,246 | $ | 791,256 | ||||||||
-1 | Two of our largest customers, each accounting for 10% or more of our net sales in the years ended December 2011 and 2012 respectively, were reorganized into Customer A in 2012. | ||||||||||||
Suppliers Accounted for Ten Percent or More | ' | ||||||||||||
The Company’s suppliers which accounted for 10% or more of its purchases are as follows: | |||||||||||||
Year ended December 31, | 2011 | 2012 | 2013 | ||||||||||
A | $ | 160,274 | $ | 511,923 | $ | 808,144 | |||||||
B | 114,322 | 108,340 | — | ||||||||||
$ | 274,596 | $ | 620,263 | $ | 808,144 | ||||||||
Employee_Severance_Benefits_Ta
Employee Severance Benefits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Employee Severance Benefits by Segment | ' | ||||||||
The employee severance benefits by segment were as follows: | |||||||||
2012 | 2013 | ||||||||
Expenses incurred: | |||||||||
TCA | $ | 1,877 | $ | 14,017 | |||||
Provision for Employee Severance Benefits | ' | ||||||||
2012 | 2013 | ||||||||
Provision for employee severance benefits: | |||||||||
Balance at January 1 | $ | — | $ | 300 | |||||
Provision for the year | 1,877 | 14,017 | |||||||
Payments during the year | (1,577 | ) | (3,314 | ) | |||||
Balance at December 31 | $ | 300 | $ | 11,003 | |||||
Company_Information_Additional
Company Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment | Segment | Segment | |
Item | |||
Accounting Policies [Abstract] | ' | ' | ' |
Distance of principal manufacturing and design operations Shenzhen (in miles) | 30 | ' | ' |
Number of reportable segments | 1 | 2 | 2 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Apr. 01, 2012 | 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 | Mar. 04, 2014 | Dec. 31, 2013 |
Y | Cost of Sales | Cost of Sales | Cost of Sales | Selling Expense | Selling Expense | Selling Expense | Subsequent Event | Minimum | ||||
CompensationPlan | Land Use Rights for which Certificate of use have not been issued | |||||||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required percentage of ownership for consolidation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% |
Finance lease receivable, original principal balance | $14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finance lease, annual interest rate | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expenses capitalized to property, plant and equipment | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' |
Lease of land, maximum term | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land use rights | ' | 10,951 | 11,218 | ' | ' | ' | ' | ' | ' | ' | 3,834 | ' |
Impairment loss on goodwill | ' | ' | ' | 2,951 | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment loss on assets held for sales | ' | 34,955 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shipping and handling costs | ' | ' | ' | ' | 14 | 227 | 366 | 104 | 301 | 428 | ' | ' |
Advertising Expense | ' | 1 | 348 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock-based employee compensation plans | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-financial assets at fair value | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-financial liabilities at fair value | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation_Expenses_Using_St
Depreciation Expenses Using Straight-Line Method (Detail) | 0 Months Ended | 12 Months Ended |
Aug. 01, 2009 | Dec. 31, 2013 | |
Land use rights | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '50 years | '50 years |
Buildings | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | ' | '20 years |
Machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | ' | '4 years |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives, description | 'Shorter of lease term or 7 years | 'Shorter of lease term or 4 years |
Furniture and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | ' | '4 years |
Automobiles | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | ' | '4 years |
Tools and molds | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | ' | '2 years |
Minimum | Buildings | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '20 years | ' |
Minimum | Machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '4 years | ' |
Minimum | Furniture and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '4 years | ' |
Minimum | Automobiles | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '4 years | ' |
Minimum | Tools and molds | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '4 years | ' |
Maximum | Buildings | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '50 years | ' |
Maximum | Machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '12 years | ' |
Maximum | Furniture and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '8 years | ' |
Maximum | Automobiles | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '6 years | ' |
Maximum | Tools and molds | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated useful lives | '6 years | ' |
Components_of_Inventory_Detail
Components of Inventory (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $20,580 | $30,914 |
Work-in-progress | 8,647 | 11,189 |
Finished goods | 1,266 | 4,629 |
Inventories | $30,493 | $46,732 |
Derivative_Financial_Instrumen2
Derivative Financial Instrument - Additional Information (Detail) | Dec. 31, 2013 |
Derivative | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' |
Foreign currency forward contract outstanding | 0 |
Notional_Principal_Amount_Cred
Notional Principal Amount, Credit Risk Amount and Fair Value Associated With Outstanding Derivative Instrument (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | Foreign currency forward contract | |||
Derivative [Line Items] | ' | ' | ||
Derivatives not designated as hedge instrument, notional principal | ' | [1] | $12,200 | [1] |
Derivatives not designated as hedge instrument, credit risk amount | ' | [1] | 99 | [1] |
Fair value of derivatives not designated as hedge instrument | ' | [1] | $99 | [1] |
[1] | The fair value is measured using Level 2 fair value inputs and is recorded as current assets in the consolidated balance sheet. |
Contractual_Maturities_on_Fina
Contractual Maturities on Finance Lease Receivable (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Capital Leases Of Lessor [Abstract] | ' |
Contractual maturities, 2014 | $3,921 |
Contractual maturities, 2015 | 3,939 |
Contractual maturities, 2016 | 1,048 |
Total | $8,908 |
Assets_Held_for_Sale_Additiona
Assets Held for Sale - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Nov. 30, 2013 |
In Thousands, unless otherwise specified | ||
Assets Held For Sale Long Lived [Abstract] | ' | ' |
Assets Held-for-sale, Property, Plant and Equipment | $43,385 | ' |
Carrying value of assets with sales and purchase contracts | ' | $2,038 |
Schedule_of_Assets_Held_for_Sa
Schedule of Assets Held for Sale (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Long Lived Assets Held-for-sale [Line Items] | ' |
Long-lived assets held for sale | $45,423 |
Land | ' |
Long Lived Assets Held-for-sale [Line Items] | ' |
Long-lived assets held for sale | 4,215 |
Buildings | ' |
Long Lived Assets Held-for-sale [Line Items] | ' |
Long-lived assets held for sale | 18,784 |
Machinery and equipment | ' |
Long Lived Assets Held-for-sale [Line Items] | ' |
Long-lived assets held for sale | 19,625 |
Leasehold improvements | ' |
Long Lived Assets Held-for-sale [Line Items] | ' |
Long-lived assets held for sale | 2,429 |
Others | ' |
Long Lived Assets Held-for-sale [Line Items] | ' |
Long-lived assets held for sale | $370 |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ' | ' |
Buildings | $54,557 | $55,156 |
Machinery and equipment | 41,338 | 41,239 |
Leasehold improvements | 16,821 | 13,044 |
Furniture and fixtures | 506 | 3,782 |
Automobiles | 179 | 288 |
Tools and molds | 120 | 111 |
Total | 113,521 | 113,620 |
Less: accumulated depreciation | -64,479 | -76,698 |
Property Plant And Equipment Excluding Construction In Progress, Total | 49,042 | 36,922 |
Construction in progress | 34 | 27,304 |
Net book value | $49,076 | $64,226 |
Property_Plant_and_Equipment_N3
Property, Plant and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Depreciation expenses | $12,781 | $7,929 | $5,240 |
Summary_of_Changes_in_Carrying
Summary of Changes in Carrying Value of Goodwill by Reporting Unit (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Goodwill Beginning balance | $2,951 |
Impairment loss on goodwill | -2,951 |
Goodwill Ending Balance | $0 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Customer | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Discount rate used determining fair value | 8.17% |
Impairment loss on goodwill | $2,951 |
Number of customers remained in CECP segment | 2 |
Fair value of goodwill | $0 |
Investments_in_Subsidiaries_De
Investments in Subsidiaries (Detail) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Aug. 02, 2012 | |||
Nam Tai Electronic and Electrical Products Limited (NTEEP) | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ||
Place of Incorporation | 'Cayman Islands | ' | ' | ||
Principal activity | 'Investment holding | ' | ' | ||
Percentage of Ownership | 100.00% | 100.00% | ' | ||
Nam Tai Holdings Limited (NTHL) | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ||
Place of Incorporation | 'BVI | ' | ' | ||
Principal activity | 'Investment holding | ' | ' | ||
Percentage of Ownership | 100.00% | 100.00% | ' | ||
Nam Tai Group Management Limited (NTGM) | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ||
Place of Incorporation | 'Hong Kong | ' | ' | ||
Principal activity | 'Inactive | ' | ' | ||
Percentage of Ownership | 100.00% | 100.00% | ' | ||
Nam Tai Telecom (Hong Kong) Company Limited (NTT) | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ||
Place of Incorporation | 'Hong Kong | ' | ' | ||
Principal activity | 'Inactive | ' | ' | ||
Percentage of Ownership | 100.00% | 100.00% | ' | ||
Nam Tai Trading Company Limited (NTTC) | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ||
Place of Incorporation | 'Hong Kong | [1] | ' | ' | |
Principal activity | 'In liquidation | [1] | ' | ' | |
Percentage of Ownership | ' | 100.00% | [1] | ' | |
J.I.C. Enterprises (HK) Ltd. | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ||
Place of Incorporation | 'Hong Kong | [2] | ' | ' | |
Principal activity | 'Inactive | [2] | ' | ' | |
Percentage of Ownership | 100.00% | [2] | 100.00% | [2] | 100.00% |
Namtai Investment (Shenzhen) Co., Ltd. (NTISZ) | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ||
Place of Incorporation | 'PRC | ' | ' | ||
Principal activity | 'Investment holding | ' | ' | ||
Percentage of Ownership | 100.00% | 100.00% | ' | ||
Zastron Electronic (Shenzhen) Co., Ltd. (Zastron Shenzhen) | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ||
Place of Incorporation | 'PRC | ' | ' | ||
Principal activity | 'Manufacturing and trading | ' | ' | ||
Percentage of Ownership | 100.00% | 100.00% | ' | ||
Wuxi Zastron Precision-Flex Co., Ltd.(Wuxi Zastron-Flex) | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ||
Place of Incorporation | 'PRC | ' | ' | ||
Principal activity | 'Manufacturing and trading | ' | ' | ||
Percentage of Ownership | 100.00% | 100.00% | ' | ||
[1] | NTTC is in liquidation and the Joint and Several Liquidators confirmed that all assets of NTTC have been taken over by the Joint and Several Receivers in January 2013. | ||||
[2] | NTHL acquired a 100% equity interest in JICE for a consideration of HK$1.00 on August 2, 2012, which was incorporated in February 1983 in Hong Kong. JICE's issued share capital amounted to HK$500,000, which is made up of 500,000 ordinary shares of HK$1 each. The primary reason for the acquisition was for re-organization. |
Investments_in_Subsidiaries_Pa
Investments in Subsidiaries (Parenthetical) (Detail) (J.I.C. Enterprises (HK) Ltd., HKD) | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 02, 2012 | Feb. 28, 1983 | Aug. 02, 2012 | ||
Ordinary Shares | Ordinary Shares | ||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ||
Number of share issued | ' | ' | ' | 500,000 | ' | ||
Issued share capital | ' | ' | ' | 500,000 | ' | ||
Ordinary shares issued price per share | ' | ' | ' | ' | 1 | ||
Percentage of Ownership | 100.00% | [1] | 100.00% | [1] | 100.00% | ' | ' |
Equity consideration price per share | ' | ' | 1 | ' | ' | ||
[1] | NTHL acquired a 100% equity interest in JICE for a consideration of HK$1.00 on August 2, 2012, which was incorporated in February 1983 in Hong Kong. JICE's issued share capital amounted to HK$500,000, which is made up of 500,000 ordinary shares of HK$1 each. The primary reason for the acquisition was for re-organization. |
Retained_Earnings_and_Reserve_
Retained Earnings and Reserve - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ' | ' |
Reserves and registered capital of PRC subsidiaries | $353,270 | $350,256 |
Accrued_Expenses_and_Other_Pay2
Accrued Expenses and Other Payables (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities And Other Liabilities [Abstract] | ' | ' |
Accrued salaries | $13,821 | $3,404 |
Accrued bonus | 221 | 3,346 |
Accrued tooling and equipment charges | 141 | 865 |
Accrued professional fees | 1,262 | 2,287 |
Construction payable | 319 | 4,850 |
Advance received from customers | 10,821 | 16,644 |
Others | 2,275 | 2,032 |
Accrued expenses and other payables | $28,860 | $33,428 |
Bank_Loans_and_Banking_Facilit1
Bank Loans and Banking Facilities - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | ' | ' |
Credit facilities, borrowing capacity | $49,505 | $176,256 |
Credit facilities, unused amount | $49,505 | $161,794 |
Maturity of credit facilities period | 30-Apr-14 | ' |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Discontinued Operations And Disposal Groups [Abstract] | ' |
Assets held for sale, property, plant and equipment | $43,385 |
Summary_of_Financial_Informati
Summary of Financial Information for Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' |
Net sales | $47,086 | $493,997 | $93,193 |
(Loss) income before income tax | -37,259 | 31,315 | -14,767 |
Income tax credit (expense) | -3,660 | -1,827 | 1,664 |
(Loss) income from discontinued operations, net of income tax | -40,919 | 29,488 | -13,103 |
Accounts receivable | ' | 54,003 | ' |
Inventories | ' | 8,906 | ' |
Prepaid expense and other receivables | 2,364 | 8,813 | ' |
Deferred tax assets | ' | 3,743 | ' |
Property, plant and equipment, net | ' | 87,329 | ' |
Land use rights | ' | 5,314 | ' |
Other assets | ' | 424 | ' |
Total assets | 2,364 | 168,532 | ' |
Notes payable | ' | 3,878 | ' |
Accounts payable | ' | 46,169 | ' |
Trust Receipt loans | ' | 3,558 | ' |
Accrued expenses and other payables | 234 | 8,304 | ' |
Short term bank borrowings | ' | 4,824 | ' |
Income tax payable | ' | 476 | ' |
Total liabilities | 234 | 67,209 | ' |
Net assets of discontinued operations | $2,130 | $101,323 | ' |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 28, 2006 | 31-May-01 | Apr. 30, 2012 | Apr. 30, 2012 | Apr. 30, 2012 | Feb. 29, 2012 | Feb. 29, 2012 | Feb. 29, 2012 | Jun. 30, 2012 | 31-May-01 |
Item | Employee Stock Option | Employee Stock Option | Employee Stock Option | Director | Director | Director | Consultant | Term at discretion of Board of Directors | |||||
Minimum | Maximum | Minimum | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of classes of common shares authorized, issued and outstanding | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option authorized for each non-employee director | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized under stock option plan | ' | ' | ' | 2,000,000 | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option expiry period in years, maximum | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | '10 years |
Stock option expiry period in years, minimum | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock options approved to be granted | ' | ' | ' | ' | ' | ' | 277,000 | 831,000 | ' | 200,000 | 600,000 | 12,000 | ' |
Number of stock options approved to be granted, rate of return on equity | ' | ' | ' | ' | ' | ' | 6.00% | 10.00% | ' | 6.00% | 10.00% | ' | ' |
Period over which return on equity to be achieved in order to grant stock options | ' | ' | ' | ' | ' | '9 months | ' | ' | '12 months | ' | ' | ' | ' |
Share option approved under service contract, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' |
Unrecognized compensation expense related to non-vested stock options granted | $201 | $1,340 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,536 | 547 | 112 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at period end | 768,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of stock options vested | $1,765 | $66 | $112 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options Outstanding - Weighted Average Remaining Contractual Life | '22 months | '26 months | '17 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value of option granted | $1.88 | $1.26 | $1.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of share repurchased | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Number of Options | ' | ' | ' |
Outstanding and exercisable beginning balance | 1,623,000 | 180,000 | 120,000 |
Granted | 60,000 | 1,503,000 | 60,000 |
Exercised | -469,000 | ' | ' |
Expired | -30,000 | -60,000 | ' |
Outstanding and exercisable ending balance | 1,184,000 | 1,623,000 | 180,000 |
Weighted average exercise price | ' | ' | ' |
Outstanding and exercisable beginning balance | $5.97 | $4.93 | $4.43 |
Granted | $7.50 | $6.03 | $5.92 |
Exercised | $5.54 | ' | ' |
Expired | $4.45 | $4.41 | ' |
Outstanding and exercisable ending balance | $6.26 | $5.97 | $4.93 |
Weighted average fair value per option | ' | ' | ' |
Outstanding and exercisable beginning balance | $1.29 | $1.45 | $1.24 |
Granted | $1.88 | $1.26 | $1.87 |
Exercised | $1.13 | ' | ' |
Expired | $1.58 | $0.89 | ' |
Outstanding and exercisable ending balance | $1.62 | $1.29 | $1.45 |
Aggregate intrinsic value | ' | ' | ' |
Outstanding and exercisable | $1,046 | ' | ' |
Exercisable | 419 | ' | ' |
Expected to vest | $627 | ' | ' |
Option_Granted_by_Company_Deta
Option Granted by Company (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Number of options granted | 60,000 | 1,503,000 | 60,000 | |
Exercise price | $7.50 | $6.03 | $5.92 | |
2011 Grant | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Number of options granted | 60,000 | ' | ' | |
Vesting period | '100% vested at date of grant | ' | ' | |
Exercise price | $5.92 | ' | ' | |
Exercisable period, start date | 10-Jun-11 | ' | ' | |
Exercisable period, end date | 9-Jun-14 | ' | ' | |
Weighted average remaining contractual life in months | '5 months 9 days | ' | ' | |
January 2012 Grant | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Number of options granted | 600,000 | [1] | ' | ' |
Vesting period | '100% vested in April 2013 | [1] | ' | ' |
Exercise price | $6.66 | [1] | ' | ' |
Exercisable period, start date | 1-Apr-13 | [1] | ' | ' |
Exercisable period, end date | 30-Apr-16 | [1] | ' | ' |
Weighted average remaining contractual life in months | '28 months | [1] | ' | ' |
April 2012 Grant | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Number of options granted | 831,000 | ' | ' | |
Vesting period | '50% vested in January 2013 and 50% will vest after 2013 at the time when the option certificates are issued to the grantees | ' | ' | |
Exercise price | $5.63 | ' | ' | |
Exercisable period, start date | 1-Jan-13 | ' | ' | |
Exercisable period, end date | 26-Apr-15 | ' | ' | |
Weighted average remaining contractual life in months | '15 months 27 days | ' | ' | |
June 2012 Grant | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Number of options granted | 60,000 | ' | ' | |
Vesting period | '100% vested at date of grant | ' | ' | |
Exercise price | $5.34 | ' | ' | |
Exercisable period, start date | 6-Jun-12 | ' | ' | |
Exercisable period, end date | 5-Jun-15 | ' | ' | |
Weighted average remaining contractual life in months | '17 months 6 days | ' | ' | |
August 2012 Grant | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Number of options granted | 12,000 | ' | ' | |
Vesting period | '1,000 shares monthly from August 1, 2012 | ' | ' | |
Exercise price | $5.95 | ' | ' | |
Exercisable period, start date | 1-Aug-12 | ' | ' | |
Exercisable period, end date | 31-Jul-14 | ' | ' | |
Weighted average remaining contractual life in months | '7 months | ' | ' | |
2013 Grant | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Number of options granted | 60,000 | ' | ' | |
Vesting period | '100% vested at date of grant | ' | ' | |
Exercise price | $7.50 | ' | ' | |
Exercisable period, start date | 31-May-13 | ' | ' | |
Exercisable period, end date | 31-May-16 | ' | ' | |
Weighted average remaining contractual life in months | '29 months | ' | ' | |
[1] | Exercisable period modified in 2013 |
Weighted_Average_Fair_Value_Op
Weighted Average Fair Value Options Granted, Assumptions (Detail) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | |
Minimum | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' |
Risk-free interest rate | 0.52% | 0.75% | 0.30% | 0.39% |
Expected life | '3 years | '3 years | '2 years | '4 years 2 months 12 days |
Expected volatility | 52.36% | 50.99% | 38.57% | 48.23% |
Expected dividend yield | 5.87% | 1.69% | 3.30% | 4.49% |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | |||
Weighted average number of shares, basic | 45,222,532 | 44,803,735 | 44,803,735 | |||
Income (loss) from continuing operations | $41,216 | $37,433 | $13,608 | |||
Effect of dilutive securities - Stock options | 470,318 | 541,518 | 37,467 | |||
Income (loss) from discontinued operations | -40,919 | 29,488 | -13,103 | |||
Weighted average number of shares, diluted | 45,692,850 | 45,345,253 | 44,841,202 | |||
Consolidated net income attributable to Nam Tai shareholders | 297 | [1] | 66,921 | [1] | 505 | [1] |
Income (loss) from continuing operations | 41,216 | 37,433 | 13,608 | |||
Income (loss) from discontinued operations | -40,919 | 29,488 | -13,103 | |||
Consolidated net income attributable to Nam Tai shareholders | $297 | [1] | $66,921 | [1] | $505 | [1] |
Basic income (loss) per share from continuing operations | $0.91 | $0.83 | $0.30 | |||
Basic income (loss) per share from discontinued operations | ($0.90) | $0.66 | ($0.29) | |||
Basic earnings per share | $0.01 | $1.49 | $0.01 | |||
Diluted income (loss) per share from continuing operations | $0.90 | $0.83 | $0.30 | |||
Diluted income (loss) per share from discontinued operations | ($0.89) | $0.65 | ($0.29) | |||
Diluted earnings per share | $0.01 | $1.48 | $0.01 | |||
Continuing Operations | ' | ' | ' | |||
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | |||
Weighted average number of shares, basic | 45,222,532 | 44,803,735 | 44,803,735 | |||
Weighted average number of shares, diluted | 45,692,850 | 45,345,253 | 44,841,202 | |||
Discontinued Operations | ' | ' | ' | |||
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | |||
Weighted average number of shares, basic | 45,222,532 | 44,803,735 | 44,803,735 | |||
Weighted average number of shares, diluted | 45,692,850 | 45,345,253 | 44,841,202 | |||
[1] | "Nam Tai" refers to Nam Tai Electronics, Inc. |
Staff_Retirement_Plans_Additio
Staff Retirement Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Y | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Age of employees to be eligible to Mandatory Provident Fund, Minimum | 18 | ' | ' |
Age of employees to be eligible to Mandatory Provident Fund, Maximum | 64 | ' | ' |
Minimum service duration to be eligible to Mandatory Provident Fund | '60 days | ' | ' |
Contribution made to Mandatory Provident Fund, based on staff's relevant income | 5.00% | ' | ' |
Maximum contribution per employee to Mandatory Provident Fund | $3 | ' | ' |
Retirement age of employees | 65 | ' | ' |
Percentage of employer contributions for which staff are entitled | 100.00% | ' | ' |
Cost of employer contribution | $2,545 | $3,863 | $2,317 |
Local governments of Wuxi | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of salary required for contribution | 20.00% | ' | ' |
Minimum | Local Governments of Shenzhen | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of salary required for contribution | 13.00% | ' | ' |
Maximum | Local Governments of Shenzhen | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of salary required for contribution | 14.00% | ' | ' |
Components_of_Income_Before_In
Components of Income Before Income Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
PRC, excluding Hong Kong | $53,556 | $55,211 | $22,169 |
Hong Kong and other jurisdictions | -1,197 | -2,590 | -6,365 |
Income before income tax | $52,359 | $52,621 | $15,804 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | Aug. 31, 2012 | Dec. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2007 | Dec. 31, 2007 | Apr. 19, 2013 | Jan. 31, 2011 | Jan. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2007 | 31-May-08 | Nov. 30, 2010 | Nov. 30, 2010 | Nov. 30, 2010 | Feb. 17, 2009 | Feb. 08, 2011 | Sep. 14, 2009 | Feb. 17, 2011 | Jan. 31, 2011 | Dec. 31, 2013 | Jan. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
Property | 31-Dec-16 | 31-Dec-17 | Shenzhen PRC Subsidiaries | Shenzhen PRC Subsidiaries | Shenzhen PRC Subsidiaries | Shenzhen PRC Subsidiaries | United States | United States | United States | Minimum | Minimum | Nam Tai Trading Company Limited | Directors And Officers | Directors And Officers | Wuxi Zastron-Flex | Wuxi Zastron-Flex | Wuxi Zastron-Flex | Tax years from 1996/1997 to 1999/2000 | Taxable years from 1997/1998 to 2000/2001 | Taxable years from 1996/1997 to 2003/2004 | Taxable years from 1996/1997, 1998/1999 and 1999/2000 | Taxable years from 1996/1997 to 1999/2000 | Tax years of 2001 and 2002 | Taxable years 2001/2002 to 2003/2004 | Taxable year 2002/2003 | Taxable year 2002/2003 | Taxable years 1996/1997 and 1999/2000 | Taxable year 1997/1998 | Taxable year 1997/1998 | Hong Kong | Hong Kong | Hong Kong | Taxable year 1996/1997 [Member] | Taxable years 1999/2000 [Member] | ||||||
Namtai Shenzhen | Maximum | Minimum | Nam Tai Trading Company Limited | Nam Tai Trading Company Limited | Nam Tai Trading Company Limited | Nam Tai Trading Company Limited | Nam Tai Trading Company Limited | Nam Tai Group Management Limited | Nam Tai Group Management Limited | Nam Tai Telecom (Hong Kong) Company Limited | Nam Tai Telecom (Hong Kong) Company Limited | Directors And Officers | Directors And Officers | |||||||||||||||||||||||||||
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Enacted tax rate | ' | ' | ' | ' | ' | 25.00% | ' | ' | 25.00% | 24.00% | 22.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.50% | 16.50% | 16.50% | ' | ' |
Reinvestment period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of production value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of income tax exemption | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax exemption period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend withholding tax rate | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability on withholding tax on undistributed profits of PRC subsidiaries | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reversed deferred tax liabilities | 1,379,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest and penalties related to uncertain tax positions | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Material unrecognized tax benefit | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax assessment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | 3,000,000 | 900,000 | 1,100,000 | 120,000 | 172,000 | 855,000 | 337,000 | 34,000 | 1,540,000 | ' | 667,000 | ' | ' | ' | ' | ' |
Number of plots registered in the Land Registry of Hong Kong | ' | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fine charged upon delay in registration of notification of mortgagee entering into possession | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total certified taxed costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Taxable years involved in controversy, number of years prior to notice | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | '13 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional Tax against two former directors | 2,323,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional tax by way of penalty | 1,626,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 697,000 | ' | ' | ' | ' | 826,000 | 800,000 |
Provision for uncertain tax positions | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating losses carryforward indefinitely | 23,285,000 | 10,316,000 | 8,147,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating losses carryforward subjected to expiration | ' | ' | ' | ' | ' | ' | 4,081,000 | 4,389,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expense | $11,143,000 | $15,188,000 | $2,196,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current_and_Deferred_Component
Current and Deferred Components of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Current tax | ($10,370) | ($13,123) | ($3,672) |
Deferred tax | -773 | -2,065 | 1,476 |
Income tax expense | ($11,143) | ($15,188) | ($2,196) |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Net operating losses | $5,960 | $5,316 | ' | ' |
Obsolete inventories | ' | 343 | ' | ' |
Allowance for doubtful accounts | 539 | ' | ' | ' |
Provision for goods return | ' | 101 | ' | ' |
Property, plant and equipment | 2,123 | 1,690 | ' | ' |
Total deferred tax assets | 8,622 | 7,450 | ' | ' |
Less: valuation allowance | -8,622 | -5,316 | -1,344 | -916 |
Deferred tax assets | ' | 2,134 | ' | ' |
Deferred tax liability arising from withholding tax on undistributed earnings of PRC subsidiaries | ' | -1,379 | ' | ' |
Net deferred tax assets | ' | $755 | ' | ' |
Movement_of_Deferred_Tax_Asset
Movement of Deferred Tax Assets Valuation Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
At beginning of the year | $5,316 | $1,344 | $916 |
Current year addition | 3,306 | 3,972 | 428 |
At end of the year | $8,622 | $5,316 | $1,344 |
Reconciliation_of_Income_Tax_E
Reconciliation of Income Tax Expense to Amount Computed by applying Current Tax Rate to Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income before income taxes | $52,359 | $52,621 | $15,804 |
PRC tax rate | 25.00% | 25.00% | 24.00% |
Income tax expense at PRC tax rate on income before income tax | -13,090 | -13,155 | -3,793 |
Effect of difference between Hong Kong and PRC tax rates applied to Hong Kong income | -487 | -258 | -221 |
Effect of change in tax law | ' | ' | 142 |
Change in valuation allowance | -3,306 | -3,972 | -428 |
Reversal of deferred tax liability on withholding tax on undistributed profits of PRC subsidiaries | 1,378 | ' | ' |
Non-deductible impairment loss on goodwill | ' | ' | -708 |
Non-deductible and non-taxable items | 2,292 | 49 | 1,574 |
Over provision of income tax expense in prior years | ' | 185 | 1,369 |
Withholding tax | 1,192 | 1,510 | ' |
Others | 878 | 453 | -131 |
Income tax expense | ($11,143) | ($15,188) | ($2,196) |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Customer | Customer A | Customer B | |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Number of largest customers | 2 | ' | ' | ' |
Percentage of accounts receivable out of total accounts receivable | ' | ' | 91.00% | 8.00% |
Accounts and notes receivable, allowance for doubtful accounts | $2,119 | ' | ' | ' |
Contractual_Obligations_Includ
Contractual Obligations, Including Capital Expenditures and Future Minimum Lease Payments Under Non-Cancelable Operating Lease Arrangements and Purchase Commitments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Long-term Purchase Commitment [Line Items] | ' |
Contractual Obligation | $22,461 |
Contractual Obligation, 2014 | 22,461 |
Contractual Obligation, 2015 | ' |
Contractual Obligation, 2016 | ' |
Other purchase obligations | ' |
Long-term Purchase Commitment [Line Items] | ' |
Contractual Obligation | 22,461 |
Contractual Obligation, 2014 | 22,461 |
Contractual Obligation, 2015 | ' |
Contractual Obligation, 2016 | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment | Segment | Segment | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Number of reportable segments | 1 | 2 | 2 | |||
Net sales | $855,847 | [1] | $678,113 | [1] | $509,124 | [1] |
Minimum | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Percentage of sales to customers | 10.00% | 10.00% | 10.00% | |||
Percentage of purchase from suppliers | 10.00% | 10.00% | 10.00% | |||
Inter-segment Sales | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | $0 | $0 | $0 | |||
[1] | The net sales have excluded the sales from the discontinued operations of $93,193, $493,997 and $47,086 for the years ended December 31, 2011, 2012 and 2013, respectively. |
Segment_Information_Detail
Segment Information (Detail) (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 | $855,847 | [1] | $678,113 | [1] | $509,124 | [1] |
Cost of sales | -788,212 | -609,875 | -479,037 | |||
Gross profit | 67,635 | 68,238 | 30,087 | |||
General and administrative expenses | -33,317 | [2] | -20,739 | [2] | -16,779 | [2] |
Selling expenses | -462 | -1,483 | -2,886 | |||
Research and development expenses | ' | -716 | -1,709 | |||
Other operating income | 1,609 | ' | ' | |||
Impairment loss on goodwill | ' | ' | -2,951 | |||
Other income, net | 11,955 | 5,283 | 7,366 | |||
Interest income | 4,939 | 2,038 | 2,676 | |||
Income before income tax | 52,359 | 52,621 | 15,804 | |||
Income tax (expenses) credit | -11,143 | -15,188 | -2,196 | |||
Net income (loss) from continuing operations | 41,216 | 37,433 | 13,608 | |||
Depreciation and amortization | 13,051 | 8,202 | 5,512 | |||
Capital expenditures | 311 | 29,488 | 12,147 | |||
Total assets | 492,055 | 467,512 | 301,963 | |||
Corporate | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
General and administrative expenses | -7,272 | -4,411 | -7,117 | |||
Impairment loss on goodwill | ' | ' | -2,951 | |||
Other income, net | 5,382 | 1,267 | 3,707 | |||
Interest income | 3,315 | 1,871 | 2,504 | |||
Income before income tax | 1,425 | -1,273 | -3,857 | |||
Income tax (expenses) credit | 1,379 | ' | ' | |||
Net income (loss) from continuing operations | 2,804 | -1,273 | -3,857 | |||
Depreciation and amortization | 290 | 293 | 260 | |||
Capital expenditures | 34 | ' | 4,723 | |||
Total assets | 137,055 | 145,937 | 132,915 | |||
TCA | Operating Segments | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 855,847 | 678,113 | 509,124 | |||
Cost of sales | -788,212 | -609,875 | -479,037 | |||
Gross profit | 67,635 | 68,238 | 30,087 | |||
General and administrative expenses | -26,045 | -16,328 | -9,662 | |||
Selling expenses | -462 | -1,483 | -2,886 | |||
Research and development expenses | ' | -716 | -1,709 | |||
Other operating income | 1,609 | ' | ' | |||
Other income, net | 6,573 | 4,016 | 3,659 | |||
Interest income | 1,624 | 167 | 172 | |||
Income before income tax | 50,934 | 53,894 | 19,661 | |||
Income tax (expenses) credit | -12,522 | -15,188 | -2,196 | |||
Net income (loss) from continuing operations | 38,412 | 38,706 | 17,465 | |||
Depreciation and amortization | 12,761 | 7,909 | 5,252 | |||
Capital expenditures | 277 | 29,488 | 7,424 | |||
Total assets | $355,000 | $321,575 | $169,048 | |||
[1] | The net sales have excluded the sales from the discontinued operations of $93,193, $493,997 and $47,086 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||
[2] | General and administrative expenses include employee severance benefits of $180, $1,877 and $14,017 for the years ended December 31, 2011, 2012 and 2013, respectively. |
Summary_of_Net_Income_Loss_by_
Summary of Net Income (Loss) by Geographical Areas (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Total net income attributable to Nam Tai shareholders | $41,216 | $37,433 | $13,608 |
PRC (excluding Hong Kong) | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Sales | 855,847 | 678,113 | 509,124 |
Total net income attributable to Nam Tai shareholders | 43,602 | 40,023 | 19,973 |
Hong Kong | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Total net income attributable to Nam Tai shareholders | ($2,386) | ($2,590) | ($6,365) |
Summary_of_Net_Sales_to_Custom
Summary of Net Sales to Customers by Geographical Areas (Detail) (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 | $855,847 | [1] | $678,113 | [1] | $509,124 | [1] |
Hong Kong | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 58,045 | 72,498 | 69,135 | |||
Europe | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 6,496 | 14,400 | 30,282 | |||
United States | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | ' | 3,021 | 32,332 | |||
PRC (excluding Hong Kong) | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | ' | 1,316 | 793 | |||
Japan | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | 791,299 | 583,280 | 374,129 | |||
Others | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Net sales | $7 | $3,598 | $2,453 | |||
[1] | The net sales have excluded the sales from the discontinued operations of $93,193, $493,997 and $47,086 for the years ended December 31, 2011, 2012 and 2013, respectively. |
Summary_of_LongLived_Assets_by
Summary of Long-Lived Assets by Geographical Areas (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Long lived assets | $60,027 | $75,444 | $53,792 |
PRC (excluding Hong Kong) | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long lived assets | 56,060 | 71,151 | 49,206 |
Hong Kong | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long lived assets | $3,967 | $4,293 | $4,586 |
Customers_which_Accounted_for_
Customers which Accounted for Ten Percent or More (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales | $855,847 | [1] | $678,113 | [1] | $509,124 | [1] |
Customer Concentration Risk | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales | 791,256 | 570,246 | 490,526 | |||
Customer Concentration Risk | Customer A | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales | 791,256 | 570,246 | 369,105 | |||
Customer Concentration Risk | Customer B | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales | ' | ' | 58,527 | |||
Customer Concentration Risk | Customer C | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales | ' | ' | $62,894 | |||
[1] | The net sales have excluded the sales from the discontinued operations of $93,193, $493,997 and $47,086 for the years ended December 31, 2011, 2012 and 2013, respectively. |
Customers_which_Accounted_for_1
Customers which Accounted for Ten Percent or More (Parenthetical) (Detail) (Customer A, Customer Concentration Risk) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Customer | Customer | |
Customer A | Customer Concentration Risk | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Customers accounting for ten percent or more of our net sales | 2 | 2 |
Suppliers_Accounted_for_Ten_Pe
Suppliers Accounted for Ten Percent or More (Detail) (Supplier Concentration Risk, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total purchases for major suppliers | $808,144 | $620,263 | $274,596 |
Supplier A | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total purchases for major suppliers | 808,144 | 511,923 | 160,274 |
Supplier B | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total purchases for major suppliers | ' | $108,340 | $114,322 |
Employee_Severance_Benefits_Ad
Employee Severance Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring And Related Activities [Abstract] | ' | ' | ' |
Employee severance benefits | $14,017 | $1,877 | $180 |
Employee_Severance_Expenses_by
Employee Severance Expenses by Segment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expenses incurred | $14,017 | $1,877 | $180 |
TCA | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Expenses incurred | $14,017 | $1,877 | ' |
Provision_for_Employee_Severan
Provision for Employee Severance Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring And Related Activities [Abstract] | ' | ' | ' |
Provision for employee severance benefits beginning balance | $300 | ' | ' |
Provision for the year | 14,017 | 1,877 | 180 |
Payments during the year | -3,314 | -1,577 | ' |
Provision for employee severance benefits ending balance | $11,003 | $300 | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ' |
Additional Tax against two former directors | $2,323 |
Statements_Of_Income_Detail
Statements Of Income (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | |||
General and administrative expenses | ($33,317) | [1] | ($20,739) | [1] | ($16,779) | [1] |
Other income, net | 11,955 | 5,283 | 7,366 | |||
Interest income | 4,939 | 2,038 | 2,676 | |||
Income before income tax | 52,359 | 52,621 | 15,804 | |||
Income tax expenses | 11,143 | 15,188 | 2,196 | |||
Consolidated net income attributable to Nam Tai shareholders | 297 | [2] | 66,921 | [2] | 505 | [2] |
Other comprehensive income | ' | ' | ' | |||
Comprehensive income attributable to Nam Tai shareholders | 297 | 66,921 | 505 | |||
Parent Company | ' | ' | ' | |||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | |||
General and administrative expenses | -2,073 | [3] | -1,729 | [3] | -2,374 | [3] |
Other income, net | 12,215 | 15,165 | 1,186 | |||
Interest income on loan to a subsidiary | 5,005 | 4,818 | 7,721 | |||
Interest income | 2,626 | 1,421 | 725 | |||
Income before income tax | 17,773 | 19,675 | 7,258 | |||
Income tax expenses | ' | ' | ' | |||
Income before share of net profits of subsidiaries, net of taxes | 17,773 | 19,675 | 7,258 | |||
Share of net profits (losses) of subsidiaries, net of taxes | -17,476 | 47,246 | -6,753 | |||
Consolidated net income attributable to Nam Tai shareholders | 297 | 66,921 | 505 | |||
Other comprehensive income | ' | ' | ' | |||
Comprehensive income attributable to Nam Tai shareholders | $297 | $66,921 | $505 | |||
[1] | General and administrative expenses include employee severance benefits of $180, $1,877 and $14,017 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||
[2] | "Nam Tai" refers to Nam Tai Electronics, Inc. | |||||
[3] | Amount of share-based compensation expense included in general and administrative expenses $ 112 $ 547 $ 1,536 |
Statements_Of_Income_Parenthet
Statements Of Income (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Share-based compensation expenses | $1,536 | $547 | $112 |
Parent Company | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Share-based compensation expenses | $1,536 | $547 | $112 |
Balance_Sheets_Detail
Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $68,707 | $157,838 | $118,510 | $228,067 |
Fixed deposits maturing over three months | 201,565 | 49,824 | ' | ' |
Prepaid expenses and other receivables | 5,908 | 21,143 | ' | ' |
Total current assets | 429,298 | 550,030 | ' | ' |
Property, plant and equipment, net | 49,076 | 64,226 | ' | ' |
Total assets | 494,419 | 636,044 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accrued expenses and other payables | 28,860 | 33,428 | ' | ' |
Dividend payable | 3,622 | 26,882 | ' | ' |
Total liabilities | 131,029 | 273,252 | ' | ' |
Shareholders' equity: | ' | ' | ' | ' |
Common shares ($0.01 par value-authorized 200,000,000 shares, issued and outstanding 44,803,735 and 45,272,735 shares as at December 31, 2012 and 2013) | 453 | 448 | ' | ' |
Retained earnings | 71,214 | 74,750 | ' | ' |
Accumulated other comprehensive loss | -8 | -8 | ' | ' |
Total shareholders' equity | 363,390 | 362,792 | 322,206 | 334,134 |
Total liabilities and shareholders' equity | 494,419 | 636,044 | ' | ' |
Parent Company | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 40,535 | 68,568 | 66,218 | 88,333 |
Fixed deposits maturing over three months | 64,975 | 49,182 | ' | ' |
Prepaid expenses and other receivables | 2,829 | 276 | ' | ' |
Amounts due from subsidiaries | 33,392 | 29,566 | ' | ' |
Total current assets | 141,731 | 147,592 | ' | ' |
Property, plant and equipment, net | 3,967 | 4,221 | ' | ' |
Loan to a subsidiary-non current | 93,108 | 93,108 | ' | ' |
Investments in subsidiaries | 128,715 | 146,191 | ' | ' |
Total assets | 367,521 | 391,112 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accrued expenses and other payables | 509 | 1,438 | ' | ' |
Dividend payable | 3,622 | 26,882 | ' | ' |
Total liabilities | 4,131 | 28,320 | ' | ' |
Shareholders' equity: | ' | ' | ' | ' |
Common shares ($0.01 par value-authorized 200,000,000 shares, issued and outstanding 44,803,735 and 45,272,735 shares as at December 31, 2012 and 2013) | 453 | 448 | ' | ' |
Additional paid-in capital | 291,731 | 287,602 | ' | ' |
Retained earnings | 71,214 | 74,750 | ' | ' |
Accumulated other comprehensive loss | -8 | -8 | ' | ' |
Total shareholders' equity | 363,390 | 362,792 | 322,206 | 334,134 |
Total liabilities and shareholders' equity | $367,521 | $391,112 | ' | ' |
Balance_Sheets_Parenthetical_D
Balance Sheets (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Common shares, par value | $0.01 | $0.01 |
Common shares, authorized | 200,000,000 | 200,000,000 |
Common shares, issued | 45,272,735 | 44,803,735 |
Common shares, outstanding | 45,272,735 | 44,803,735 |
Parent Company | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Common shares, par value | $0.01 | $0.01 |
Common shares, authorized | 200,000,000 | 200,000,000 |
Common shares, issued | 45,272,735 | 44,803,735 |
Common shares, outstanding | 45,272,735 | 44,803,735 |
Statements_Of_Changes_In_Share
Statements Of Changes In Shareholders' Equity (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | 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 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||
Parent Company | Parent Company | Parent Company | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Retained Earnings | Retained Earnings | Retained Earnings | Retained Earnings | Retained Earnings | Retained Earnings | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||
Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | |||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Balance | $362,792 | $322,206 | $334,134 | $362,792 | $322,206 | $334,134 | $448 | $448 | $448 | $448 | $448 | $448 | $287,602 | $287,055 | $286,943 | $287,602 | $287,055 | $286,943 | $74,750 | $34,711 | $46,751 | $74,750 | $34,711 | $46,751 | ($8) | ($8) | ($8) | ($8) | ($8) | ($8) | ($8) | ($8) | |||
Shares issued on exercise of options | 2,598 | ' | ' | 2,598 | ' | ' | 5 | ' | ' | 5 | ' | ' | 2,593 | ' | ' | 2,593 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Balance (in shares) | ' | ' | ' | ' | ' | ' | 44,803,735 | 44,803,735 | 44,803,735 | 44,803,735 | 44,803,735 | 44,803,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares issued on exercise of options (in shares) | 469,000 | ' | ' | ' | ' | ' | 469,000 | ' | ' | 469,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity-settled share-based payment | 1,536 | 547 | 112 | 1,536 | 547 | 112 | ' | ' | ' | ' | ' | ' | 1,536 | 547 | 112 | 1,536 | 547 | 112 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Consolidated net income | 297 | [1] | 66,921 | [1] | 505 | [1] | 297 | 66,921 | 505 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 297 | 66,921 | 505 | 297 | 66,921 | 505 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends declared ($0.08 per share in 2013, 0.60 per share in 2012, $0.28 per share in 2011) | -3,622 | -26,882 | -12,545 | -3,622 | -26,882 | -12,545 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,622 | -26,882 | -12,545 | -3,622 | -26,882 | -12,545 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Cash dividends paid | 211 | ' | ' | -211 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 211 | ' | ' | -211 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Balance | $363,390 | $362,792 | $322,206 | $363,390 | $362,792 | $322,206 | $453 | $448 | $448 | $453 | $448 | $448 | $291,731 | $287,602 | $287,055 | $291,731 | $287,602 | $287,055 | $71,214 | $74,750 | $34,711 | $71,214 | $74,750 | $34,711 | ($8) | ($8) | ($8) | ($8) | ($8) | ($8) | ($8) | ($8) | |||
Balance (in shares) | ' | ' | ' | ' | ' | ' | 45,272,735 | 44,803,735 | 44,803,735 | 45,272,735 | 44,803,735 | 44,803,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | "Nam Tai" refers to Nam Tai Electronics, Inc. |
Statements_Of_Changes_In_Share1
Statements Of Changes In Shareholders' Equity (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Cash dividends, per share | $0.08 | $0.60 | $0.28 |
Parent Company | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Cash dividends, per share | $0.08 | $0.60 | $0.28 |
Statements_of_Cash_flows_Detai
Statements of Cash flows (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Cash flows from operating activities: | ' | ' | ' | |||
Consolidated net income | $297 | [1] | $66,921 | [1] | $505 | [1] |
Adjustments to reconcile net income attributable to Nam Tai shareholders to net cash provided by operating activities: | ' | ' | ' | |||
Depreciation | 12,781 | 7,929 | 5,240 | |||
Share-based compensation expenses | 1,536 | 547 | 112 | |||
Changes in current assets and liabilities: | ' | ' | ' | |||
(Increase) decrease in prepaid expenses and other receivables | 21,656 | -10,030 | -14,207 | |||
Increase (decrease) in accrued expenses and other payables | -8,891 | 15,340 | 4,173 | |||
Net cash provided by operating activities | 82,042 | 109,771 | -5,320 | |||
Cash flows from investing activities: | ' | ' | ' | |||
Purchase of property, plant and equipment | -3,653 | -58,444 | -59,858 | |||
Decrease in deposit for purchase of property, plant and equipment | ' | 4,543 | -4,066 | |||
Increase in fixed deposits maturing over three months | -151,741 | -14,999 | -34,825 | |||
Net cash used in investing activities | -140,383 | -66,928 | -99,410 | |||
Cash flows from financing activities: | ' | ' | ' | |||
Dividend paid | -27,093 | -12,545 | -8,961 | |||
Net cash used in financing activities | -32,877 | -4,163 | -8,961 | |||
Net (decrease) increase in cash and cash equivalents | -91,218 | 38,680 | -113,691 | |||
Cash and cash equivalents at beginning of year | 157,838 | 118,510 | 228,067 | |||
Cash and cash equivalents at end of year | 68,707 | 157,838 | 118,510 | |||
Parent Company | ' | ' | ' | |||
Cash flows from operating activities: | ' | ' | ' | |||
Consolidated net income | 297 | 66,921 | 505 | |||
Adjustments to reconcile net income attributable to Nam Tai shareholders to net cash provided by operating activities: | ' | ' | ' | |||
Share of net losses (profits) of subsidiaries, net of taxes | 17,476 | -47,246 | 6,753 | |||
Depreciation | 111 | 266 | 221 | |||
Share-based compensation expenses | 1,536 | 547 | 112 | |||
Changes in current assets and liabilities: | ' | ' | ' | |||
(Increase) decrease in prepaid expenses and other receivables | -2,553 | 228 | -371 | |||
Increase (decrease) in accrued expenses and other payables | -929 | -443 | 231 | |||
Net cash provided by operating activities | 15,938 | 20,273 | 7,451 | |||
Cash flows from investing activities: | ' | ' | ' | |||
Purchase of property, plant and equipment | ' | ' | -4,708 | |||
Decrease in deposit for purchase of property, plant and equipment | ' | ' | 433 | |||
Increase in fixed deposits maturing over three months | -15,793 | -14,357 | -34,825 | |||
(Increase) decrease in amounts due from subsidiaries | -3,683 | 8,979 | -5,682 | |||
Net cash used in investing activities | -19,476 | -5,378 | -44,782 | |||
Cash flows from financing activities: | ' | ' | ' | |||
Decrease in amounts due to subsidiaries | ' | ' | -11,194 | |||
Proceeds from loan to a subsidiary | ' | ' | 35,371 | |||
Dividend paid | -27,093 | -12,545 | -8,961 | |||
Proceeds from shares issued on exercise of options | 2,598 | ' | ' | |||
Net cash used in financing activities | -24,495 | -12,545 | 15,216 | |||
Net (decrease) increase in cash and cash equivalents | -28,033 | 2,350 | -22,115 | |||
Cash and cash equivalents at beginning of year | 68,568 | 66,218 | 88,333 | |||
Cash and cash equivalents at end of year | $40,535 | $68,568 | $66,218 | |||
[1] | "Nam Tai" refers to Nam Tai Electronics, Inc. |
Note_to_Schedule_One_Additiona
Note to Schedule One - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Information Of Subsidiaries Disclosure [Abstract] | ' | ' | ' |
Restricted Capital and Reserves | $353,270 | $350,256 | ' |
Minimum percentage of restricted net assets of consolidated and unconsolidated subsidiaries to consolidated net assets to file condensed financial information | 25.00% | ' | ' |
Cash dividend was declared by subsidiaries | 0 | 0 | 0 |
Cash dividend was paid by subsidiaries | $0 | $0 | $0 |