Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 30, 2015 | Jun. 30, 2014 |
Document Information [Abstract] | |||
Entity Registrant Name | POWER INTEGRATIONS INC | ||
Entity Central Index Key | 833640 | ||
Trading Symbol | POWI | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 29,331,133 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1.60 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $60,708 | $92,928 |
Short-term marketable securities | 114,575 | 109,179 |
Accounts receivable, net of allowances of $191 and $120 in 2014 and 2013, respectively (Note 2) | 10,186 | 12,389 |
Inventories | 64,025 | 42,235 |
Deferred tax assets | 39 | 2,059 |
Prepaid expenses and other current assets | 16,379 | 18,632 |
Total current assets | 265,912 | 277,422 |
PROPERTY AND EQUIPMENT, net | 95,823 | 90,141 |
INTANGIBLE ASSETS, net | 35,524 | 40,334 |
GOODWILL | 80,599 | 80,599 |
DEFERRED TAX ASSETS (NOTE 8) | 11,562 | 9,449 |
OTHER ASSETS | 4,243 | 3,476 |
Total assets | 493,663 | 501,421 |
CURRENT LIABILITIES: | ||
Accounts payable | 21,980 | 20,772 |
Accrued payroll and related expenses | 9,071 | 8,900 |
Taxes payable | 2,963 | 2,266 |
Deferred tax liabilities | 2,193 | 943 |
Deferred income on sales to distributors | 15,223 | 15,727 |
Other accrued liabilities | 3,730 | 1,810 |
Total current liabilities | 55,160 | 50,418 |
LONG-TERM INCOME TAXES PAYABLE (NOTE 8) | 743 | 6,885 |
DEFERRED TAX LIABILITIES | 4,272 | 5,273 |
OTHER LIABILITIES | 2,812 | 2,159 |
Total liabilities | 62,987 | 64,735 |
COMMITMENTS AND CONTINGENCIES (Notes 8, 9 and 10) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.001 par value Authorized - 140,000,000 shares Outstanding - 29,208,468 and 30,021,943 shares in 2014 and 2013, respectively | 29 | 30 |
Additional paid-in capital | 171,938 | 223,660 |
Accumulated other comprehensive loss | -1,136 | -470 |
Retained earnings | 259,845 | 213,466 |
Total stockholders’ equity | 430,676 | 436,686 |
Total liabilities and stockholders’ equity | $493,663 | $501,421 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $191 | $120 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares outstanding | 29,208,468 | 30,021,943 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Statement [Abstract] | ||||||
NET REVENUES | $348,797 | $347,089 | $305,370 | |||
COST OF REVENUES | 159,227 | 163,853 | 154,868 | |||
GROSS PROFIT | 189,570 | 183,236 | 150,502 | |||
OPERATING EXPENSES: | ||||||
Research and development | 54,981 | 51,654 | 45,709 | |||
Sales and marketing | 47,796 | 45,466 | 37,998 | |||
General and administrative | 30,997 | 32,050 | 30,243 | |||
Charge related to SemiSouth (Note 12) | 0 | 0 | 25,200 | |||
Total operating expenses | 133,774 | 129,170 | 139,150 | |||
INCOME FROM OPERATIONS | 55,796 | 54,066 | 11,352 | |||
OTHER INCOME (EXPENSE): | ||||||
Interest income | 1,203 | 736 | 1,747 | |||
Interest expense | 0 | -23 | -2 | |||
Charge related to SemiSouth (Note 12) | 0 | 0 | -33,745 | |||
Other, net | -185 | 648 | -134 | |||
Total other income (expense) | 1,018 | 1,361 | -32,134 | |||
INCOME (LOSS) BEFORE INCOME TAXES | 56,814 | 55,427 | -20,782 | |||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | -2,730 | -1,839 | 13,622 | |||
NET INCOME (LOSS) | $59,544 | $57,266 | ($34,404) | |||
EARNINGS (LOSS) PER SHARE: | ||||||
Basic (per share) | $1.99 | $1.95 | ($1.20) | |||
Diluted (per share) | $1.93 | [1] | $1.88 | [1] | ($1.20) | [1] |
SHARES USED IN PER SHARE CALCULATION: | ||||||
Basic (in shares) | 29,976 | 29,421 | 28,636 | |||
Diluted (in shares) | 30,829 | [1] | 30,420 | [1] | 28,636 | [1] |
[1] | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards underlying the 2014 awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included the shares underlying the 2013 and 2012 awards in the respective year calculations, as those shares were contingently issuable upon the satisfaction of the annual targets consisting of net revenue, non-GAAP operating earnings and achievement of strategic goals as of the end of the periods. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $59,544 | $57,266 | ($34,404) |
Other comprehensive income: | |||
Foreign currency translation adjustments, net of $0 tax in 2014, 2013 and 2012 | -79 | -29 | 79 |
Unrealized gain (loss) on marketable securities, net of $0 tax in 2014, 2013 and 2012 | -127 | 72 | 138 |
Unrealized actuarial loss on pension benefits, net of tax of $128, $61 and $155 in 2014, 2013 and 2012, respectively (Note 13) | -460 | -220 | -560 |
Total other comprehensive loss | -666 | -177 | -343 |
Total comprehensive income (loss) | 58,878 | 57,089 | -34,747 |
Foreign currency translation adjustment, tax | 0 | 0 | 0 |
Unrealized gain on marketable securities, tax | 0 | 0 | 0 |
Unrealized actuarial loss on pension benefits, tax | $128 | $61 | $155 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Employee Stock Options and Awards [Member] | Employee Stock Purchases [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] |
In Thousands, unless otherwise specified | Employee Stock Options and Awards [Member] | Employee Stock Purchases [Member] | |||||||
Beginning Balance at Dec. 31, 2011 | $364,529 | $28 | $158,646 | $50 | $205,805 | ||||
Beginning Balance (in shares) at Dec. 31, 2011 | 28,065 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 1,022 | ||||||||
Issuance of common stock under employee stock option and stock award plans | 18,200 | 0 | 18,200 | ||||||
Repurchase of common stock (in shares) | -676 | ||||||||
Repurchase of common stock | -20,467 | 0 | -20,467 | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 125 | ||||||||
Issuance of common stock under employee stock purchase plan | 3,752 | 3,752 | |||||||
Income tax benefits from employee stock plans | 1,303 | 1,303 | |||||||
Stock-based compensation expense | 13,092 | 1,142 | 13,092 | 1,142 | |||||
Payment of dividends to stockholders | -5,755 | -5,755 | |||||||
Unrealized actuarial loss on pension benefits, net of tax | -560 | -560 | |||||||
Unrealized gain (loss) on marketable securities, | 138 | 138 | |||||||
Translation adjustment | 79 | 79 | |||||||
Net income (loss) | -34,404 | -34,404 | |||||||
Ending Balance at Dec. 31, 2012 | 341,049 | 28 | 175,668 | -293 | 165,646 | ||||
Ending Balance (in shares) at Dec. 31, 2012 | 28,536 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 1,358 | ||||||||
Issuance of common stock under employee stock option and stock award plans | 26,269 | 2 | 26,267 | ||||||
Repurchase of common stock (in shares) | 0 | ||||||||
Repurchase of common stock | 0 | 0 | 0 | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 128 | ||||||||
Issuance of common stock under employee stock purchase plan | 3,971 | 3,971 | |||||||
Income tax benefits from employee stock plans | 1,284 | 1,284 | |||||||
Stock-based compensation expense | 15,275 | 1,195 | 15,275 | 1,195 | |||||
Payment of dividends to stockholders | -9,446 | -9,446 | |||||||
Unrealized actuarial loss on pension benefits, net of tax | -220 | -220 | |||||||
Unrealized gain (loss) on marketable securities, | 72 | 72 | |||||||
Translation adjustment | -29 | -29 | |||||||
Net income (loss) | 57,266 | 57,266 | |||||||
Ending Balance at Dec. 31, 2013 | 436,686 | 30 | 223,660 | -470 | 213,466 | ||||
Ending Balance (in shares) at Dec. 31, 2013 | 30,022 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 697 | ||||||||
Issuance of common stock under employee stock option and stock award plans | 9,571 | 0 | 9,571 | ||||||
Repurchase of common stock (in shares) | -1,603 | ||||||||
Repurchase of common stock | -80,761 | -1 | -80,760 | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 92 | ||||||||
Issuance of common stock under employee stock purchase plan | 4,284 | 4,284 | |||||||
Income tax benefits from employee stock plans | 815 | 815 | |||||||
Stock-based compensation expense | 12,983 | 1,385 | 12,983 | 1,385 | |||||
Payment of dividends to stockholders | -13,165 | -13,165 | |||||||
Unrealized actuarial loss on pension benefits, net of tax | -460 | -460 | |||||||
Unrealized gain (loss) on marketable securities, | -127 | -127 | |||||||
Translation adjustment | -79 | -79 | |||||||
Net income (loss) | 59,544 | 59,544 | |||||||
Ending Balance at Dec. 31, 2014 | $430,676 | $29 | $171,938 | ($1,136) | $259,845 | ||||
Ending Balance (in shares) at Dec. 31, 2014 | 29,208 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $59,544 | $57,266 | ($34,404) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 15,884 | 16,088 | 15,256 |
Amortization of intangibles | 6,072 | 7,404 | 5,164 |
Charge related to SemiSouth (Note 12) | 0 | 0 | 58,945 |
Loss (gain) on disposal of property and equipment | 250 | -131 | -1 |
Gain on sale of asset held for sale | 0 | -497 | 0 |
Stock-based compensation expense | 14,282 | 16,485 | 14,224 |
Amortization of premium on marketable securities | 1,694 | 789 | 850 |
Non-cash interest income from SemiSouth note | 0 | 0 | -1,445 |
Deferred income taxes | 157 | -2,781 | 2,017 |
Allowance for Doubtful Accounts Receivable, Period Increase (Decrease) | 70 | -127 | -24 |
Excess tax benefit from employee stock plans | -437 | -734 | -704 |
Tax benefit associated with employee stock plans | 815 | 1,284 | 1,303 |
Change in operating assets and liabilities: | |||
Accounts receivable | 2,133 | -4,936 | 5,313 |
Inventories | -21,703 | 2,375 | 18,026 |
Prepaid expenses and other assets | 8,211 | -1,523 | -11,008 |
Accounts payable | 2,337 | 2,467 | 2,071 |
Taxes payable and accrued liabilities | -3,242 | 1,065 | -26,029 |
Deferred income on sales to distributors | -505 | 4,177 | 2,276 |
Net cash provided by operating activities | 85,562 | 98,671 | 51,830 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | -23,071 | -13,960 | -16,358 |
Proceeds from sale of property and equipment | 0 | 36 | 2 |
Proceeds from sale of assets held for sale | 0 | 959 | 0 |
Other assets | -1,261 | 0 | 0 |
Acquisition (Note 11) | 0 | 0 | -115,720 |
Payment of guarantee of SemiSouth debt (Note 12) | 0 | 0 | -15,200 |
Increase in financing lease receivables | 0 | 0 | -420 |
Collections of financing lease receivables and other receivables | 0 | 433 | 527 |
Loans to third parties (Notes 11 and 12) | -6,600 | 0 | -18,000 |
Purchases of marketable securities | 45,269 | 109,482 | 0 |
Proceeds from sales and maturities of marketable securities | 38,052 | 31,350 | 40,463 |
Net cash used in investing activities | -38,149 | -90,664 | -124,706 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Issuance of common stock under employee stock plans | 13,855 | 30,239 | 21,952 |
Repurchase of common stock | -80,760 | 0 | -20,467 |
Payments of dividends to stockholders | -13,165 | -9,446 | -5,755 |
Excess tax benefit from employee stock plans | 437 | 734 | 704 |
Net cash (used in) provided by financing activities | -79,633 | 21,527 | -3,566 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -32,220 | 29,534 | -76,442 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 92,928 | 63,394 | 139,836 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 60,708 | 92,928 | 63,394 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Unpaid property and equipment | 1,733 | 2,862 | 1,008 |
Fair value of SemiSouth purchase option (Note 12) | 0 | 0 | 6,216 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid (refund) for income taxes, net of refunds (Note 8) | ($3,121) | ($4,137) | $46,689 |
THE_COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY [Text Block] | THE COMPANY: |
Power Integrations, Inc. ("Power Integrations" or the “Company”), incorporated in California on March 25, 1988 and reincorporated in Delaware in December 1997, designs, develops, manufactures and markets analog and mixed-signal integrated circuits (ICs) and other electronic components and circuitry used in high-voltage power conversion. The Company's products are used in power converters that convert electricity from a high-voltage source (i.e., 48 volts or higher) to the type of power required for a specified downstream use. A large percentage of the Company's products are ICs used in AC-DC power supplies in a wide variety of end products, primarily in the consumer, communications, computer and industrial markets. The Company acquired CT-Concept Technologie AG (“Concept”) in May 2012, and since then offers IGBT drivers used to operate arrays of high-voltage, high-power transistors known as IGBT modules, which are used for power conversion in high-power applications such as industrial motors, solar- and wind-power systems, electric vehicles and high-voltage DC transmission systems. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUTING POLICIES [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |||||||||||||||
Principles of Consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of all intercompany transactions and balances. | ||||||||||||||||
Estimates | ||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition and allowances for receivables and inventories. These estimates are based on historical facts and various other factors, which the Company believes to be reasonable at the time the estimates are made. However, as the effects of future events cannot be determined with precision, actual results could differ significantly from management's estimates. | ||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||
The Company considers cash invested in highly liquid financial instruments with maturities of three months or less at the date of purchase to be cash equivalents. | ||||||||||||||||
Marketable Securities | ||||||||||||||||
The Company generally holds securities until maturity; however, they may be sold under certain circumstances including, but not limited to, when necessary for the funding of acquisitions and other strategic investments. As a result the Company classifies its investment portfolio as available-for-sale. The Company classifies all investments with an original maturity date greater than three months as short-term marketable securities in its Consolidated Balance Sheet. As of December 31, 2014, and December 31, 2013, the Company's marketable securities consisted primarily of corporate bonds and other high-quality commercial securities. The weighted average interest rate of investments at December 31, 2014 and 2013, was approximately 0.76% and 0.74%, respectively. | ||||||||||||||||
Amortized cost and estimated fair market value of investments classified as available-for-sale at December 31, 2014, were as follows (in thousands): | ||||||||||||||||
Gross Unrealized | Estimated Fair | |||||||||||||||
Amortized Cost | Gains | Losses | Market Value | |||||||||||||
Investments due in 4-12 months: | ||||||||||||||||
Corporate securities | $ | 30,233 | $ | 36 | $ | — | $ | 30,269 | ||||||||
Total | 30,233 | 36 | — | 30,269 | ||||||||||||
Investments due between 12 months and 5-years: | ||||||||||||||||
Corporate securities | 84,259 | 92 | (45 | ) | 84,306 | |||||||||||
Total | 84,259 | 92 | (45 | ) | 84,306 | |||||||||||
Total investment securities | $ | 114,492 | $ | 128 | $ | (45 | ) | $ | 114,575 | |||||||
Amortized cost and estimated fair market value of investments classified as available-for-sale at December 31, 2013, were as follows (in thousands): | ||||||||||||||||
Gross Unrealized | Estimated Fair | |||||||||||||||
Amortized Cost | Gains | Losses | Market Value | |||||||||||||
Investments due in less than 3 months: | ||||||||||||||||
Commercial paper | $ | 3,098 | $ | 1 | $ | — | $ | 3,099 | ||||||||
Total | 3,098 | 1 | — | 3,099 | ||||||||||||
Investments due in 4-12 months: | ||||||||||||||||
Corporate securities | 6,007 | 33 | — | 6,040 | ||||||||||||
Total | 6,007 | 33 | — | 6,040 | ||||||||||||
Investments due between 12 months and 5-years: | ||||||||||||||||
Corporate securities | 102,963 | 202 | (26 | ) | 103,139 | |||||||||||
Total | 102,963 | 202 | (26 | ) | 103,139 | |||||||||||
Total investment securities | $ | 112,068 | $ | 236 | $ | (26 | ) | $ | 112,278 | |||||||
As of December 31, 2014, and 2013, there were no individual securities that had been in a continuous loss position for 12 months or longer. | ||||||||||||||||
Inventories | ||||||||||||||||
Inventories (which consist of costs associated with the purchases of wafers from domestic and offshore foundries and of packaged components from offshore assembly manufacturers, as well as internal labor and overhead associated with the testing of both wafers and packaged components) are stated at the lower of cost (first-in, first-out) or market. Provisions, when required, are made to reduce excess and obsolete inventories to their estimated net realizable values. Inventories consist of the following (in thousands): | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 21,127 | $ | 8,221 | ||||||||||||
Work-in-process | 14,643 | 13,216 | ||||||||||||||
Finished goods | 28,255 | 20,798 | ||||||||||||||
Total | $ | 64,025 | $ | 42,235 | ||||||||||||
Additional Components of the Company's Consolidated Balance Sheet | ||||||||||||||||
Accounts Receivable (in thousands): | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Accounts receivable trade | $ | 38,344 | $ | 42,410 | ||||||||||||
Accrued ship and debit and rebate claims | (27,967 | ) | (29,901 | ) | ||||||||||||
Allowance for doubtful accounts | (191 | ) | (120 | ) | ||||||||||||
Total | $ | 10,186 | $ | 12,389 | ||||||||||||
Prepaid Expenses and Other Current Assets (in thousands): | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Prepaid legal fees | $ | 1,506 | $ | 6,267 | ||||||||||||
Loan to Cambridge Semiconductor (Note 11) | 6,600 | — | ||||||||||||||
Advance to suppliers | 800 | 757 | ||||||||||||||
Prepaid income tax | 3,208 | 7,521 | ||||||||||||||
Prepaid maintenance agreements | 1,023 | 947 | ||||||||||||||
Interest receivable | 664 | 519 | ||||||||||||||
Other | 2,578 | 2,621 | ||||||||||||||
Total | $ | 16,379 | $ | 18,632 | ||||||||||||
Property and Equipment | ||||||||||||||||
Property and equipment consist of the following (in thousands): | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Land | $ | 16,754 | $ | 16,754 | ||||||||||||
Construction-in-progress | 8,068 | 8,003 | ||||||||||||||
Building and improvements | 44,794 | 43,641 | ||||||||||||||
Machinery and equipment | 124,138 | 111,314 | ||||||||||||||
Computer software and hardware and office furniture and fixtures | 37,867 | 34,327 | ||||||||||||||
231,621 | 214,039 | |||||||||||||||
Accumulated depreciation | (135,798 | ) | (123,898 | ) | ||||||||||||
Total | $ | 95,823 | $ | 90,141 | ||||||||||||
Depreciation expense for property and equipment for fiscal years ended December 31, 2014, 2013 and 2012, was approximately $15.9 million, $16.1 million and $15.3 million, respectively, and was determined using the straight-line method over the following useful lives: | ||||||||||||||||
Building and improvements | 4-40 years | |||||||||||||||
Machinery and equipment | 2-8 years | |||||||||||||||
Computer software and hardware and office furniture and fixtures | 4-5 years | |||||||||||||||
Total property and equipment located in the United States at December 31, 2014, 2013 and 2012, was approximately $140 million, $134 million and $126 million, respectively. In 2014 13% of total property and equipment was held in Thailand by one of the Company's sub-contractors. In 2013 and 2012, no more than 10% of total property and equipment was held in any foreign country. | ||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
Changes in accumulated other comprehensive income (loss) for three years ended December 31, 2014 (in thousands): | ||||||||||||||||
Unrealized Gains and Losses on Available-for-Sale Securities | Defined Benefit Pension Items | Foreign Currency Items | Total | |||||||||||||
Balance at January 1, 2012 | $ | — | $ | — | $ | 50 | $ | 50 | ||||||||
Other comprehensive income (loss) before reclassifications | 138 | (560 | ) | 79 | (343 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | — | ||||||||||||
Other comprehensive income (loss) | 138 | (560 | ) | 79 | (343 | ) | ||||||||||
Balance at December 31, 2012 | 138 | (560 | ) | 129 | (293 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 72 | (277 | ) | (29 | ) | (234 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 57 | -1 | — | 57 | |||||||||||
Other comprehensive income (loss) | 72 | (220 | ) | (29 | ) | (177 | ) | |||||||||
Balance at December 31, 2013 | 210 | (780 | ) | 100 | (470 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | (127 | ) | (538 | ) | (79 | ) | (744 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 78 | -1 | — | 78 | |||||||||||
Other comprehensive income (loss) | (127 | ) | (460 | ) | (79 | ) | (666 | ) | ||||||||
Balance at December 31, 2014 | $ | 83 | $ | (1,240 | ) | $ | 21 | $ | (1,136 | ) | ||||||
____________________________ | ||||||||||||||||
(1) This component of accumulated other comprehensive income is included in the computation of net periodic pension cost for the years ended December 31, 2014 and December 31, 2013. | ||||||||||||||||
Business Combinations | ||||||||||||||||
The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing at the acquisition date impacting asset valuations and liabilities assumed. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. | ||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||
Goodwill and the Company's domain name are evaluated in accordance with Accounting Standards Codification, or ASC, 350-10, Goodwill and Other Intangible Assets, and an impairment analysis is conducted on an annual basis, or sooner if indicators exist for a potential impairment. | ||||||||||||||||
In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. | ||||||||||||||||
Employee Benefits Plan | ||||||||||||||||
The Company sponsors a 401(k) tax-deferred savings plan for all employees in the United States who meet certain eligibility requirements. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. The Company is not required to contribute; however, from time-to-time the Company will contribute a certain percentage of employee annual salaries on a discretionary basis, not to exceed an established threshold. In 2014 and 2013 the Company provided for a contribution of approximately $1.1 million and $1.1 million, respectively. No employee 401(k) contribution was provided for in 2012. | ||||||||||||||||
Retirement Benefit Obligations (Pension) | ||||||||||||||||
The Company recognizes the overfunded or underfunded status of a defined benefit pension or postretirement plan as an asset or liability in the accompanying consolidated balance sheets. Actuarial gains and losses are recorded in accumulated other comprehensive income (loss), a component of stockholders’ equity, and are amortized as a component of net periodic cost over the remaining estimated service period of participants. | ||||||||||||||||
Revenue Recognition | ||||||||||||||||
Product revenues consist of sales to original equipment manufacturers (“OEMs”), merchant power supply manufacturers and distributors. Approximately 75% of the Company's net product sales were made to distributors in 2014. The Company applies the provisions of Accounting Standard Codification (“ASC”) 605-10 (“ASC 605-10”) and all related appropriate guidance. Revenue is recognized when all of the following criteria have been met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the price is fixed or determinable, and (4) collectability is reasonably assured. Customer purchase orders are generally used to determine the existence of an arrangement. Delivery is considered to have occurred when title and risk of loss have transferred to the Company's customer. The Company evaluates whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. With respect to collectability, the Company performs credit checks for new customers and performs ongoing evaluations of its existing customers' financial condition and requires letters of credit whenever deemed necessary. | ||||||||||||||||
Sales to international OEMs and merchant power supply manufacturers for shipments from the Company's facility outside of the United States are pursuant to “EX Works” ("EXW") shipping terms, meaning that title to the product transfers to the customer upon shipment from the Company's foreign warehouse. Sales to international OEM customers and merchant power supply manufacturers that are shipped from the Company's facility in California are pursuant to “delivered at frontier” (“DAF”) shipping terms. As such, title to the product passes to the customer when the shipment reaches the destination country and revenue is recognized upon the arrival of the product in that country. Shipments to OEMs and merchant power supply manufacturers in the Americas are pursuant to “free on board” (“FOB”) point of origin shipping terms meaning that title is passed to the customer upon shipment. Revenue is recognized upon title transfer for sales to OEMs and merchant power supply manufacturers, assuming all other criteria for revenue recognition are met. | ||||||||||||||||
Sales to most of the Company's distributors are made under terms allowing certain price adjustments and rights of return on the Company's products held by its distributors. As a result of these rights, the Company defers the recognition of revenue and the costs of revenues derived from these sales until the Company's distributors report that they have sold the Company's products to their customers. The Company's recognition of such distributor revenue is based on point of sale reports received from the distributors, at which time the price is no longer subject to adjustment and is fixed, and the products are no longer subject to return to the Company except pursuant to warranty terms. The gross profit that is deferred as a result of this policy is reflected as “deferred income on sales to distributors” in the accompanying consolidated balance sheets. The total deferred revenue as of December 31, 2014, and December 31, 2013, was approximately $25.0 million and $25.5 million, respectively. The total deferred cost as of December 31, 2014, and December 31, 2013, was approximately $9.8 million and $9.8 million, respectively. | ||||||||||||||||
Frequently, distributors need to sell at a price lower than the standard distribution price in order to win business. At or soon after the distributor invoices its customer, the distributor submits a “ship and debit” price adjustment claim to the Company to adjust the distributor's cost from the standard price to the pre-approved lower price. After verification by the Company, a credit memo is issued to the distributor for the ship and debit claim. The Company maintains a reserve for unprocessed claims and future ship and debit price adjustments. The reserves appear as a reduction to accounts receivable and deferred income on sales to distributors in the Company's accompanying consolidated balance sheets. To the extent future ship and debit claims significantly exceed amounts estimated, there could be a material impact on the deferred revenue and deferred margin ultimately recognized. To evaluate the adequacy of its reserves, the Company analyzes historical ship and debit payments and levels of inventory in the distributor channels. | ||||||||||||||||
Sales to certain distributors of the Company are made under terms that do not include rights of return or price concessions after the product is shipped to the distributor. Accordingly, product revenue is recognized upon shipment and title transfer assuming all other revenue recognition criteria are met. | ||||||||||||||||
Foreign Currency Risk and Foreign Currency Translation | ||||||||||||||||
As of December 31, 2014, the Company's primary transactional currency was in U.S. dollars; in addition, the Company holds cash in Swiss francs and Euros as a result of its acquisition of Concept. The Company completed the acquisition of Concept, which is located in Biel, Switzerland, in the second quarter of 2012. Included in the assets acquired was cash denominated in Swiss francs and Euros, which will be used to fund operations of the Company's Swiss subsidiary. The functional currency of the Company's Swiss subsidiary is the U.S. dollar. | ||||||||||||||||
Gains and losses arising from the remeasurement of non-functional currency balances are recorded in ''other income (expense)'' in the accompanying consolidated statements of income (loss). For the years ended December 31, 2014, 2013 and 2012 the Company realized foreign exchange transaction gains (losses) of $0.1 million, $(0.1) million and $(0.6) million, respectively. | ||||||||||||||||
The functional currencies of the Company's other subsidiaries are the local currencies. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rates as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Cumulative gains and losses from the translation of the foreign subsidiaries' financial statements have been included in stockholders' equity. | ||||||||||||||||
Warranty | ||||||||||||||||
The Company generally warrants that its products will substantially conform to the published specifications for 12 months from the date of shipment. The Company's liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial, and as a result, the Company does not record a specific warranty reserve. | ||||||||||||||||
Advertising | ||||||||||||||||
Advertising costs are expensed as incurred. Advertising costs amounted to $1.5 million, $1.4 million, and $1.1 million, in 2014, 2013 and 2012, respectively. | ||||||||||||||||
Research and Development | ||||||||||||||||
Research and development costs are expensed as incurred. | ||||||||||||||||
Income Taxes | ||||||||||||||||
Income tax expense is an estimate of current income taxes payable or refundable in the current fiscal year based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences and carry-forwards that are recognized for financial reporting and income tax purposes. | ||||||||||||||||
The Company accounts for income taxes under the provisions of ASC 740. Under the provisions of ASC 740, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, utilizing the tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes valuation allowances to reduce any deferred tax assets to the amount that it estimates will more likely than not be realized based on available evidence and management's judgment. The Company limits the deferred tax assets recognized related to certain officers' compensation to amounts that it estimates will be deductible in future periods based upon Internal Revenue Code Section 162(m). In the event that the Company determines, based on available evidence and management judgment, that all or part of the net deferred tax assets will not be realized in the future, it would record a valuation allowance in the period the determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company's expectations could have a material impact on the Company's results of operations and financial position. | ||||||||||||||||
The Company engages in qualifying activities for R&D credit purposes. The Tax Increase Prevention Act of 2014 was signed into law on December 19, 2014, to extend the federal research and development credit for 2014. | ||||||||||||||||
During 2014, the Company settled with the IRS and closed out the examination of its income tax returns for the years 2007 through 2009. The resolution of the audit resulted in a federal tax benefit to the Company of $2.8 million; the Company also recorded a state tax benefit of approximately $0.5 million. The agreement with IRS also allowed the Company to repatriate $5.0 million from its foreign subsidiary without incurring additional U.S. income taxes. | ||||||||||||||||
Common Stock Repurchases and Common Stock Dividend | ||||||||||||||||
In October 2012, the Company's board of directors authorized the use of $50.0 million for the repurchase of its common stock, with repurchases to be executed according to certain pre-defined price/volume guidelines set by the board of directors. As of December 31, 2012, the Company purchased 0.7 million shares for approximately $20.5 million. No shares were purchased during the twelve months ended December 31, 2013, as the stock price levels exceeded the pre-defined price guidelines mentioned above. In 2014 the Company's board of directors authorized the use of an additional $75.0 million for this purpose. In the twelve months ended December 31, 2014, the Company purchased 1.6 million shares for $80.8 million. As of December 31, 2014, the Company had $23.7 million available for future stock repurchases. Authorization of future stock repurchase programs is at the discretion of the board of directors and will depend on the Company's financial condition, results of operations, capital requirements, business conditions as well as other factors. | ||||||||||||||||
In January 2012, the Company's board of directors declared four quarterly cash dividends in the amount of $0.05 per share to be paid to stockholders of record at the end of each quarter in 2012. The quarterly dividend payments were each in the aggregate amount of approximately $1.4 million to stockholders of record. In January 2013, the Company's board of directors declared four quarterly cash dividends in the amount of $0.08 per share paid to stockholders of record at the end of each quarter in 2013. Payouts of approximately $2.3 million each were paid on March 29, 2013, and June 28, 2013, and approximately $2.4 million was paid on September 30, 2013, and December 31, 2013, respectively. | ||||||||||||||||
In October 2013, the Company's board of directors declared four quarterly cash dividends in the amount of $0.10 per share to be paid to stockholders of record at the end of each quarter in 2014. Dividend payouts totaling approximately $3.0 million each were paid on March 31, 2014, and June 30, 2014. In April 2014, the Company's board of directors increased the quarterly dividends for the third and fourth quarters of 2014 to $0.12 per share. Dividend payouts totaling approximately $3.6 million and $3.5 million were paid on September 30, 2014, and December 31, 2014, respectively. | ||||||||||||||||
In January 2015, the Company's board of directors extended the $0.12 quarterly dividend through each quarter in 2015. The declaration of any future cash dividend is at the discretion of the board of directors and will depend on the Company's financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that cash dividends are in the best interest of the Company's stockholders. | ||||||||||||||||
Indemnifications | ||||||||||||||||
The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (“DSA”). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company's products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (“Customer Indemnification”). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. | ||||||||||||||||
The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees' development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of December 31, 2014. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnifications. | ||||||||||||||||
Recently Issued Accounting Pronouncements | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") amended the existing accounting standards for revenue recognition, ASU 2014-09, Revenue from Contracts with Customers. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is required to adopt the amendments in the first quarter of 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the impact of these amendments and the transition alternatives on its consolidated financial statements. |
STOCK_PLANS_AND_SHARE_BASED_CO
STOCK PLANS AND SHARE BASED COMPENSATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
STOCK PLANS AND SHARE BASED COMPENSATION [Text Block] | STOCK PLANS AND SHARE BASED COMPENSATION: | ||||||||||||
Stock Plans | |||||||||||||
As of December 31, 2014, the Company had two stock-based compensation plans (the “Plans”) which are described below. | |||||||||||||
2007 Equity Incentive Plan | |||||||||||||
The 2007 Equity Incentive Plan (the "2007 Plan") was adopted by the board of directors on September 10, 2007 and approved by the stockholders on November 7, 2007 as an amendment and restatement of the 1997 Stock Option Plan (the "1997 Plan"). The 2007 Plan provides for the grant of incentive stock options, nonstatutory stock options, restricted stock awards, restricted stock unit awards ("RSUs"), stock appreciation rights, performance stock unit awards ("PSU") and other stock awards to employees, directors and consultants. As of December 31, 2014, the maximum remaining number of shares that may be issued under the 2007 Plan was 6.5 million shares, which includes options issued but not exercised and awards granted but unvested and shares remaining available for issuance under the 1997 Plan, including shares subject to outstanding options and stock awards under the 1997 Plan. Pursuant to the 2007 Plan, the exercise price for incentive stock options and nonstatutory stock options is generally at least 100% of the fair market value of the underlying shares on the date of grant. Options generally vest over 48 months measured from the date of grant. Options generally expire no later than ten years after the date of grant, subject to earlier termination upon an optionee's cessation of employment or service. | |||||||||||||
Beginning January 27, 2009, grants pursuant to the Directors Equity Compensation Program (which was adopted by the board of directors on January 27, 2009) to non-employee directors have been made primarily under the 2007 Plan. The Directors Equity Compensation Program, provides for grants to outside directors as follows: effective annually, upon the first trading day of July, each outside director would receive a grant of an equity award with an aggregate value of $100,000. At each outside director's election, such award would consist entirely of RSUs or entirely of stock options. The quantity of options would be calculated by dividing $100,000 by the Black-Scholes value on the date of grant. The quantity of RSUs issued would be calculated by dividing $100,000 by the grant date fair value. Further, on the date of election of a new outside director, such new director would receive such grant as continuing outside directors receive on the first trading day of July; provided, however, that such grant is prorated for the portion of the year that such new outside director will serve until the next first trading day of July. The Directors Equity Compensation Program will remain in effect at the discretion of the board of directors or the compensation committee. | |||||||||||||
On July 28, 2009, the 2007 Plan was amended generally to prohibit outstanding options or stock appreciation rights from being canceled in exchange for cash without stockholder approval. | |||||||||||||
1997 Employee Stock Purchase Plan | |||||||||||||
Under the 1997 Employee Stock Purchase Plan (the “Purchase Plan”), eligible employees may apply accumulated payroll deductions, which may not exceed 15% of an employee's compensation, to the purchase of shares of the Company's common stock at periodic intervals. The purchase price of stock under the Purchase Plan is equal to 85% of the lower of (i) the fair market value of the Company's common stock on the first day of each offering period, or (ii) the fair market value of the Company's common stock on the purchase date (as defined in the Purchase Plan). Each offering period consists of one purchase period of approximately six months duration. An aggregate of 3.0 million shares of common stock were reserved for issuance to employees under the Purchase Plan. As of December 31, 2014, of the shares reserved for issuance, 2.7 million shares had been purchased and 0.3 million shares were reserved for future issuance under the Purchase Plan. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The Company applies the provisions of ASC 718-10. Under the provisions of ASC 718-10, the Company recognizes the fair value of stock-based compensation in financial statements over the requisite service period of the individual grants, which generally equals a four-year vesting period. The Company uses estimates of volatility, expected term, risk-free interest rate, dividend yield and forfeitures in determining the fair value of these awards and the amount of compensation expense to recognize. The Company uses the straight-line method to amortize all stock awards granted over the requisite service period of the award. | |||||||||||||
Determining Fair Value of Stock Options | |||||||||||||
The Company uses the Black-Scholes valuation model for valuing stock option grants using the following assumptions and estimates: | |||||||||||||
Expected Volatility. The Company calculates expected volatility based on the historical price volatility of the Company's stock. | |||||||||||||
Expected Term. The Company utilizes a model which uses historical exercise, cancellation and outstanding option data to calculate the expected term of stock option grants. | |||||||||||||
Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes valuation model on the implied yield available on a U.S. Treasury note with a term approximately equal to the expected term of the underlying grants. | |||||||||||||
Dividend Yield. The dividend yield was calculated by dividing the annual dividend by the average closing price of the Company's common stock on a quarterly basis. | |||||||||||||
Estimated Forfeitures. The Company uses historical data to estimate pre-vesting forfeitures, and records share-based compensation expense only for those awards that are expected to vest. | |||||||||||||
The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the twelve months ended December 31, 2014, 2013 and 2012 (in thousands). | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cost of revenues | $ | 879 | $ | 1,074 | $ | 1,058 | |||||||
Research and development | 4,784 | 5,746 | 5,503 | ||||||||||
Sales and marketing | 3,540 | 3,642 | 3,317 | ||||||||||
General and administrative | 5,079 | 6,023 | 4,346 | ||||||||||
Total stock-based compensation expense | $ | 14,282 | $ | 16,485 | $ | 14,224 | |||||||
The following table summarizes total compensation expense related to unvested awards not yet recognized, net of expected forfeitures, and the weighted average period over which it is expected to be recognized as of December 31, 2014. | |||||||||||||
31-Dec-14 | |||||||||||||
Unrecognized | Weighted | ||||||||||||
Compensation | Average | ||||||||||||
Expense for Unvested | Remaining | ||||||||||||
Awards | Recognition | ||||||||||||
Period | |||||||||||||
(In thousands) | (In years) | ||||||||||||
Options | $ | 786 | 1.1 | ||||||||||
Long-term performance-based awards | 1,255 | 2 | |||||||||||
Restricted stock units | 20,285 | 2.3 | |||||||||||
Purchase plan | 144 | 0.5 | |||||||||||
Total unrecognized compensation expense | $ | 22,470 | |||||||||||
Stock compensation expense in the twelve months ended December 31, 2014, was approximately $14.3 million (comprising approximately $1.2 million related to stock options, $0.5 million related to long-term performance-based awards, $11.3 million related to restricted stock units and $1.3 million related to the Company's Purchase Plan). | |||||||||||||
Stock compensation expense in the twelve months ended December 31, 2013, was approximately $16.5 million (comprising approximately $2.3 million related to stock options, $3.2 million related to performance-based awards, $9.8 million related to restricted stock units and $1.2 million related to the Company's Purchase Plan). | |||||||||||||
Stock compensation expense in the twelve months ended December 31, 2012, was approximately $14.2 million (comprising approximately $4.0 million related to stock options, $2.1 million related to performance-based awards, $7.0 million related to restricted stock units and $1.1 million related to the Company's Purchase Plan). | |||||||||||||
The fair value of stock options granted is established on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used during the three years ended December 31, 2014, 2013 and 2012: | |||||||||||||
2014* | 2013* | 2012 | |||||||||||
Risk-free interest rates | —% | —% | 0.87% - 1.01% | ||||||||||
Expected volatility rates | —% | —% | 45% | ||||||||||
Expected dividend yield | —% | —% | 0.51% - 0.57% | ||||||||||
Expected term of stock options (in years) | 0 | 0 | 6.4 | ||||||||||
Weighted-average grant date fair value of options granted | $0.00 | $0.00 | $18.20 | ||||||||||
________________________ | |||||||||||||
*The Company did not grant stock options in the years ended December 31, 2014 and 2013, and therefore no fair-value assumptions were reported for those periods. | |||||||||||||
The fair value of employees’ stock purchase rights under the Purchase Plan was estimated using the Black-Scholes model with the following weighted-average assumptions used during the three years ended December 31, 2014, 2013 and 2012: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rates | 0.05% - 0.07% | 0.08% - 0.11% | 0.09% - 0.14% | ||||||||||
Expected volatility rates | 30% - 48% | 33% - 37% | 34% - 48% | ||||||||||
Expected dividend yield | 0.66% - 0.85% | 0.62% - 0.80% | 0.54% - 0.57% | ||||||||||
Expected term of purchase right (years) | 0.5 | 0.5 | 0.5 | ||||||||||
Weighted-average estimated fair value of purchase rights | $14.40 | $11.01 | $9.40 | ||||||||||
A summary of stock option activity under the Plans, excluding performance-based shares and restricted stock units, as of December 31, 2014, and changes during three years then ended, is presented below: | |||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||||
Exercise | Remaining | (in thousands) | |||||||||||
Price | Contractual | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding at January 1, 2012 | 3,557 | $ | 24.01 | ||||||||||
Granted | 135 | $ | 42.66 | ||||||||||
Exercised | (870 | ) | $ | 20.48 | |||||||||
Forfeited or expired | (5 | ) | $ | 21.1 | |||||||||
Outstanding at December 31, 2012 | 2,817 | $ | 26 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (1,108 | ) | $ | 23.72 | |||||||||
Forfeited or expired | (18 | ) | $ | 39.7 | |||||||||
Outstanding at December 31, 2013 | 1,691 | $ | 27.34 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (347 | ) | $ | 27.64 | |||||||||
Forfeited or expired | — | $ | — | ||||||||||
Outstanding at December 31, 2014 | 1,344 | $ | 27.27 | 3.56 | $ | 32,905 | |||||||
Exercisable at December 31, 2014 | 1,292 | $ | 26.69 | 3.42 | $ | 32,366 | |||||||
Vested and expected to vest at December 31, 2014 | 1,343 | $ | 27.25 | 3.56 | $ | 32,889 | |||||||
The total intrinsic value of options exercised during the twelve months ended December 31, 2014, 2013 and 2012, was $9.9 million, $26.5 million and $14.5 million, respectively. | |||||||||||||
The following table summarizes the stock options outstanding at December 31, 2014: | |||||||||||||
Options Outstanding | Options Vested and Exercisable | ||||||||||||
Exercise | Number Outstanding (in thousands) | Weighted | Weighted | Number Vested (in thousands) | Weighted | ||||||||
Price | Average | Average | Average | ||||||||||
Remaining | Exercise | Exercise | |||||||||||
Contractual Term (in years) | Price | Price | |||||||||||
$17.18 - $21.00 | 124 | 3.08 | $19.08 | 124 | $19.08 | ||||||||
$21.14 - $21.14 | 268 | 4.31 | $21.14 | 268 | $21.14 | ||||||||
$22.18 - $24.21 | 93 | 2.45 | $23.68 | 93 | $23.68 | ||||||||
$25.25 - $25.25 | 243 | 2.62 | $25.25 | 243 | $25.25 | ||||||||
$25.48 - $26.49 | 40 | 2.02 | $25.73 | 40 | $25.73 | ||||||||
$26.75 - $26.75 | 212 | 1.1 | $26.75 | 212 | $26.75 | ||||||||
$26.86 - $36.95 | 150 | 4.85 | $33.10 | 140 | $32.89 | ||||||||
$37.96 - $38.07 | 85 | 5.29 | $38.06 | 85 | $38.06 | ||||||||
$39.49 - $39.49 | 48 | 6.5 | $39.49 | 48 | $39.49 | ||||||||
$42.88 - $42.88 | 81 | 7.2 | $42.88 | 39 | $42.88 | ||||||||
$17.18 - $42.88 | 1,344 | 3.56 | $27.27 | 1,292 | $26.69 | ||||||||
Performance-based Awards | |||||||||||||
Under the performance-based awards program, the Company grants awards in the first half of the performance year in an amount equal to twice the target number of shares to be issued if the target performance metrics are met. The number of shares that are released at the end of the performance year can range from zero to 200% of the targeted number depending on the Company's performance. The performance metrics of this program are annual targets consisting of net revenue, non-GAAP operating earnings and strategic goals. Each performance-based award share granted from the 2007 Plan will reduce the number of shares available for issuance under the 2007 Plan by 2.0 shares. | |||||||||||||
During the twelve months ended December 31, 2014, the Company issued approximately 83,000 performance-based awards to employees and executives. As the net revenue and non-GAAP operating income are considered performance conditions, expense associated with these awards, net of estimated forfeitures is recognized over the service period based on an assessment of the achievement of the performance targets. The fair value of these performance-based awards is determined using the fair value of the Company's common stock on the date of the grant, reduced by the discounted present value of dividends expected to be declared before the awards vest. If the performance conditions are not achieved, no compensation cost is recognized and any previously recognized compensation is reversed. The Company's net revenue and non-GAAP operating income performance targets were not met in 2014, and therefore the 2014 performance-based awards were canceled, and no related expense was recognized in the twelve months ended December 31, 2014. | |||||||||||||
A portion of the 2013 performance-based awards issued to employees and executives vested in the first quarter of 2014. In January 2014, it was determined that approximately 83,000 shares of the approximately 102,000 performance-based awards granted in 2013 vested in aggregate under the revenue, non-GAAP operating income and strategic goals performance conditions for such awards. Accordingly, 83,000 performance-based awards were released to the Company's employees and executives in the first quarter of 2014. | |||||||||||||
A summary of performance-based awards outstanding as of December 31, 2014, and activity during the three years then ended, is presented below: | |||||||||||||
Shares | Weighted- Average Grant Date Fair Value Per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||
Outstanding at January 1, 2012 | — | $ | — | ||||||||||
Granted | 102 | $ | 37.6 | ||||||||||
Vested | — | $ | — | ||||||||||
Forfeited or canceled | — | $ | — | ||||||||||
Outstanding at December 31, 2012 | 102 | $ | 37.6 | ||||||||||
Granted | 102 | $ | 38.68 | ||||||||||
Vested | (54 | ) | $ | 37.6 | |||||||||
Change in units due to performance achievement for PSUs not earned | (48 | ) | $ | 37.6 | |||||||||
Forfeited or canceled | (2 | ) | $ | 41.79 | |||||||||
Outstanding at December 31, 2013 | 100 | $ | 38.48 | ||||||||||
Granted | 83 | $ | 53.93 | ||||||||||
Vested | (83 | ) | $ | 38.48 | |||||||||
Change in units due to performance achievement for PSUs not earned | (17 | ) | $ | 38.48 | |||||||||
Forfeited or canceled | (83 | ) | $ | 53.93 | |||||||||
Outstanding at December 31, 2014 | — | $ | — | 0 | $ | — | |||||||
Outstanding and expected to vest at December 31, 2014 | — | 0 | $ | — | |||||||||
The weighted-average grant-date fair value per share of performance-based awards granted in the years ended December 31, 2014, 2013 and 2012, was approximately $53.93, $38.68 and $37.60, respectively. The grant date fair value of awards released, which were fully vested, in the years ended December 31, 2014 and 2013, was approximately $3.2 million and $2.0 million, respectively. There were no performance-based awards released in year ended December 31, 2012. | |||||||||||||
Long-Term Performance-based Units ("PRSUs") | |||||||||||||
In the first quarter of 2014 the Company began granting long-term performance-based awards. The Company's PRSU program provides for the issuance of PRSUs which will vest based on Company performance measured against the 2014 PRSU Plan's established 2016 revenue target. The PRSUs were granted in an amount equal to twice the target number of shares to be issued if the target performance metric is met. The actual number of shares the recipient receives is determined at the end of a three-year performance period based on results achieved versus the Company's performance goal, and may range from zero to 200% of the targeted number. The performance goal for PRSUs granted in fiscal 2014 was based on the Company's adjusted annual revenue growth. Each long-term performance-based award granted from the 2007 Plan will reduce the number of shares available for issuance under the 2007 Plan by 2 shares. | |||||||||||||
Recipients of a PRSU award generally must remain employed by the Company on a continuous basis through the end of the applicable three-year performance period in order to receive shares subject to that award. Expenses associated with these awards, net of estimated forfeitures, are recorded throughout the year depending on the number of shares expected to vest based on progress toward the performance target. The cost of long-term performance-based awards is determined using the fair value of the Company's common stock on the grant date, reduced by the discounted present value of dividends expected to be declared before the awards vest. If the performance conditions are not achieved, no compensation cost is recognized and any previously recognized compensation is reversed. | |||||||||||||
A summary of long-term performance-based awards outstanding as of December 31, 2014, and activity during the year then ended, is presented below: | |||||||||||||
Shares | Weighted- Average Grant Date Fair Value Per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||
Outstanding at December 31, 2013 | — | $ | — | ||||||||||
Granted | 61 | $ | 55.51 | ||||||||||
Vested | — | $ | — | ||||||||||
Forfeited or canceled | — | $ | — | ||||||||||
Outstanding at December 31, 2014 | 61 | $ | 55.51 | 2 | $ | 3,161 | |||||||
Outstanding and expected to vest at December 31, 2014 | 37 | 2 | $ | 1,928 | |||||||||
Restricted Stock Units (RSUs) | |||||||||||||
The Company grants restricted stock units to employees under the 2007 Plan. RSUs granted to employees typically vest ratably over a four-year period, and are converted into shares of the Company's common stock upon vesting on a one-for-one basis subject to the employee's continued service to the Company over that period. The fair value of RSUs is determined using the fair value of the Company's common stock on the date of the grant, reduced by the discounted present value of dividends expected to be declared before the awards vest. Compensation expense is recognized on a straight-line basis over the requisite service period of each grant adjusted for estimated forfeitures. Each RSU award granted from the 2007 plan will reduce the number of shares available for issuance under the 2007 Plan by 2 shares. | |||||||||||||
A summary of RSUs outstanding as of December 31, 2014, and activity during the three years then ended, is as follows: | |||||||||||||
Shares | Weighted- Average Grant Date Fair Value Per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||
Outstanding at January 1, 2012 | 458 | $ | 36.08 | ||||||||||
Granted | 293 | $ | 41.06 | ||||||||||
Vested | (152 | ) | $ | 36.48 | |||||||||
Forfeited | (26 | ) | $ | 36.92 | |||||||||
Outstanding at December 31, 2012 | 573 | $ | 38.21 | ||||||||||
Granted | 386 | $ | 39.09 | ||||||||||
Vested | (195 | ) | $ | 37.92 | |||||||||
Forfeited | (50 | ) | $ | 39.5 | |||||||||
Outstanding at December 31, 2013 | 714 | $ | 38.97 | ||||||||||
Granted | 281 | $ | 51.12 | ||||||||||
Vested | (267 | ) | $ | 38.57 | |||||||||
Forfeited | (36 | ) | $ | 42.74 | |||||||||
Outstanding at December 31, 2014 | 692 | $ | 43.86 | 1.28 | $ | 35,821 | |||||||
Outstanding and expected to vest at December 31, 2014 | 645 | 1.22 | $ | 33,364 | |||||||||
The weighted-average grant-date fair value per share of RSUs awarded in the years ended December 31, 2014, 2013 and 2012, was approximately $51.12, $39.09 and $41.06, respectively. The grant date fair value of awards vested in the years ended December 31, 2014, 2013 and 2012, was approximately $10.3 million, $7.4 million and $5.5 million, respectively. | |||||||||||||
Shares Reserved | |||||||||||||
As of December 31, 2014, the Company had approximately 3.3 million shares of common stock reserved for future issuance under stock option and stock purchase plans. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
FAIR VALUE MEASUREMENTS [Text Block] | FAIR VALUE MEASUREMENTS: | ||||||||||||
ASC 820-10, Fair Value Measurements, clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices for identical assets in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. | |||||||||||||
The Company's cash and investment instruments are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The type of instrument valued based on quoted market prices in active markets primarily includes money market securities. This type of instrument is generally classified within Level 1 of the fair-value hierarchy. The types of instruments valued based on other observable inputs (Level 2 of the fair-value hierarchy) include investment-grade corporate bonds and government, state, municipal and provincial obligations. Such types of investments are valued by using a multi-dimensional relational model, the inputs are primarily benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. | |||||||||||||
The Company principally holds securities until maturity; however, they may be sold under certain circumstances, including, but not limited to, the funding of acquisitions and other strategic investments. Accordingly, the Company classified its investment portfolio as available-for-sale as of December 31, 2014 and December 31, 2013. | |||||||||||||
The fair value hierarchy of the Company's short-term marketable securities at December 31, 2014, and December 31, 2013, was as follows (in thousands): | |||||||||||||
Fair Value Measurement at | |||||||||||||
December 31, 2014 | |||||||||||||
Description | December 31, 2014 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | ||||||||||
Money market funds | $ | 3,370 | $ | 3,370 | $ | — | |||||||
Corporate securities | 114,575 | — | 114,575 | ||||||||||
Total | $ | 117,945 | $ | 3,370 | $ | 114,575 | |||||||
Fair Value Measurement at | |||||||||||||
December 31, 2013 | |||||||||||||
Description | December 31, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | ||||||||||
Commercial paper | $ | 3,099 | $ | — | $ | 3,099 | |||||||
Money market funds | 17,492 | 17,492 | — | ||||||||||
Corporate securities | 109,179 | — | 109,179 | ||||||||||
Total | $ | 129,770 | $ | 17,492 | $ | 112,278 | |||||||
The Company did not transfer any investments between level 1 and level 2 of the fair value hierarchy in the twelve months ended December 31, 2014, and December 31, 2013. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Text Block] | GOODWILL AND INTANGIBLE ASSETS: | |||||||||||||||||||||||
There were no changes in the carrying amount of goodwill during the twelve months ended December 31, 2014, and December 31, 2013. | ||||||||||||||||||||||||
Intangible assets consist primarily of developed technology, acquired licenses, customer relationships, trade name, domain name, in-process research and development and patent rights, and are reported net of accumulated amortization. The Company amortizes the cost of all intangible assets over the shorter of the estimated useful life or the term of the developed technology, acquired licenses, customer relationships, trade name and patent rights, which range from two to 12 years, with the exception of $4.7 million of in-process research and development and $1.3 million to acquire an internet domain name. In-process research and development is assessed for impairment until the development is completed and products are available for sale, at which time the Company will begin to amortize the in-process research and development. The Company does not expect the amortization of in-process research and development to begin in 2015. The Company acquired the rights to the internet domain name www.power.com, which is now the Company's primary domain name; the cost to acquire the domain name has been recorded as an intangible asset and will not be amortized as it has an indefinite useful life. Amortization for acquired intangible assets was approximately $6.1 million, $7.4 million and $5.2 million in the years ended December 31, 2014, 2013 and 2012, respectively. The Company does not believe there is any significant residual value associated with the following intangible assets: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Domain name | $ | 1,261 | $ | — | $ | 1,261 | $ | — | $ | — | $ | — | ||||||||||||
In-process research and development | 4,690 | — | 4,690 | 4,690 | — | 4,690 | ||||||||||||||||||
Technology licenses | 3,000 | (2,625 | ) | 375 | 3,000 | (2,325 | ) | 675 | ||||||||||||||||
Patent rights | 1,949 | (1,949 | ) | — | 1,949 | (1,949 | ) | — | ||||||||||||||||
Developed technology | 26,670 | (7,828 | ) | 18,842 | 26,670 | (5,247 | ) | 21,423 | ||||||||||||||||
Customer relationships | 17,610 | (7,254 | ) | 10,356 | 17,610 | (4,664 | ) | 12,946 | ||||||||||||||||
Trade name | 3,600 | (3,600 | ) | — | 3,600 | (3,000 | ) | 600 | ||||||||||||||||
Total intangible assets | $ | 58,780 | $ | (23,256 | ) | $ | 35,524 | $ | 57,519 | $ | (17,185 | ) | $ | 40,334 | ||||||||||
The estimated future amortization expense related to definite-lived intangible assets at December 31, 2014, is as follows: | ||||||||||||||||||||||||
Fiscal Year | Estimated | |||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2015 | $ | 5,009 | ||||||||||||||||||||||
2016 | 4,394 | |||||||||||||||||||||||
2017 | 3,994 | |||||||||||||||||||||||
2018 | 3,746 | |||||||||||||||||||||||
2019 | 3,424 | |||||||||||||||||||||||
Thereafter | 9,006 | |||||||||||||||||||||||
Total (1) | $ | 29,573 | ||||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
-1 | The total above excludes $4.7 million of in-process research and development which will be amortized upon completion of development over the estimated useful life of the technology. |
SIGNIFICANT_CUSTOMERS_AND_EXPO
SIGNIFICANT CUSTOMERS AND EXPORT SALES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
SIGNIFICANT CUSTOMERS AND EXPORT SALES [Text Block] | SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES: | ||||||||
Segment Reporting | |||||||||
The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of analog and mixed-signal ICs and other electronic components and circuitry used in high-voltage power conversion. The Company's chief operating decision maker, the chief executive officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. | |||||||||
Product Sales | |||||||||
Net revenues consist primarily of sales of the Company's high-voltage integrated-circuit products, IGBT drivers and high-voltage silicon diodes. When evaluating the Company's net revenues, the Company categorizes its sales into the following four major end markets served; communications, computer, consumer and industrial electronics. The table below provides the percentage of net sales activity by end markets served on a comparative basis for all periods: | |||||||||
Year Ended December 31, | |||||||||
End Market | 2014 | 2013 | 2012 | ||||||
Communications | 18 | % | 21 | % | 24 | % | |||
Computer | 10 | % | 10 | % | 12 | % | |||
Consumer | 37 | % | 35 | % | 36 | % | |||
Industrial electronics | 35 | % | 34 | % | 28 | % | |||
Customer Concentration | |||||||||
Ten customers accounted for approximately 59%, 59% and 64% of net revenues for the years ended December 31, 2014, 2013 and 2012, respectively. A significant portion of these revenues are attributable to sales of the Company’s products to distributors of electronic components. These distributors sell the Company’s products to a broad, diverse range of end users, including OEMs and merchant power supply manufacturers. | |||||||||
The following customers each accounted for 10% or more of total net revenues: | |||||||||
Year Ended December 31, | |||||||||
Customer | 2014 | 2013 | 2012 | ||||||
Avnet | 19 | % | 19 | % | 20 | % | |||
ATM Electronic Corporation | * | * | 12 | % | |||||
___________________________ | |||||||||
* Total customer revenue was less than 10% of net revenues | |||||||||
Avnet and ATM Electronic Corporation are distributors of the Company's products. No other customers accounted for 10% or more of the Company's net revenues in those periods. | |||||||||
Concentration of Credit Risk | |||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consisted principally of cash investments and trade receivables. The Company has cash investment policies that limit cash investments to low-risk investments. With respect to trade receivables, the Company performs ongoing evaluations of its customers' financial conditions and requires letters of credit whenever deemed necessary. Additionally, the Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends related to past write-offs and other relevant information. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. As of December 31, 2014, and December 31, 2013, 66% and 71%, respectively, of accounts receivable were concentrated with the Company's top 10 customers. | |||||||||
The following customers each represented 10% or more of accounts receivable: | |||||||||
Customer | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Avnet | 22 | % | 21 | % | |||||
ATM Electronic Corporation | * | 17 | % | ||||||
Burnon International Ltd. | 11 | % | * | ||||||
___________________________ | |||||||||
* Total customer accounts receivable was less than 10% | |||||||||
Avnet, ATM Electronic Corporation and Burnon International Ltd. are distributors of the Company’s products. No other customers accounted for 10% or more of the Company’s accounts receivable in these periods. | |||||||||
International Sales | |||||||||
The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. As a percentage of total net revenues, international sales, which consist of sales to distributors and direct customers outside of the United States of America, comprise the following: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Hong Kong/China | 47 | % | 47 | % | 45 | % | |||
Taiwan | 15 | % | 15 | % | 17 | % | |||
Korea | 11 | % | 11 | % | 12 | % | |||
Western Europe (excluding Germany) | 11 | % | 11 | % | 10 | % | |||
Japan | 5 | % | 5 | % | 6 | % | |||
Singapore | 1 | % | 2 | % | 2 | % | |||
Germany | 2 | % | 2 | % | 1 | % | |||
Other | 3 | % | 2 | % | 2 | % | |||
Total foreign revenue | 95 | % | 95 | % | 95 | % | |||
The remainder of the Company’s sales is to customers within the United States of America. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
EARNINGS PER SHARE [Text Block] | EARNINGS PER SHARE: | |||||||||||
Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted-average shares of common stock outstanding during the period. Diluted earnings (loss) per share are calculated by dividing net income (loss) by the weighted-average shares of common stock and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares included in this calculation consist of dilutive shares issuable upon the assumed exercise of outstanding common stock options, the assumed vesting of outstanding restricted stock units and performance based awards, and the assumed issuance of awards under the stock purchase plan, as computed using the treasury stock method. | ||||||||||||
A summary of the earnings (loss) per share calculation is as follows (in thousands, except per share amounts): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic earnings (loss) per share: | ||||||||||||
Net income (loss) | $ | 59,544 | $ | 57,266 | $ | (34,404 | ) | |||||
Weighted-average common shares | 29,976 | 29,421 | 28,636 | |||||||||
Basic earnings (loss) per share | $ | 1.99 | $ | 1.95 | $ | (1.20 | ) | |||||
Diluted earnings (loss) per share (1): | ||||||||||||
Net income (loss) | $ | 59,544 | $ | 57,266 | $ | (34,404 | ) | |||||
Weighted-average common shares | 29,976 | 29,421 | 28,636 | |||||||||
Effect of dilutive securities: | ||||||||||||
Employee stock plans | 853 | 999 | — | |||||||||
Diluted weighted-average common shares | 30,829 | 30,420 | 28,636 | |||||||||
Diluted earnings (loss) per share | $ | 1.93 | $ | 1.88 | $ | (1.20 | ) | |||||
_______________ | ||||||||||||
-1 | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards underlying the 2014 awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included the shares underlying the 2013 and 2012 awards in the respective year calculations, as those shares were contingently issuable upon the satisfaction of the annual targets consisting of net revenue, non-GAAP operating earnings and achievement of strategic goals as of the end of the periods. | |||||||||||
In the years ended December 31, 2014 and 2013, options to purchase 36,501 shares and 122,263 shares outstanding, respectively, were not included in the computation of diluted earnings per share for the periods then ended because they were determined to be anti-dilutive. In the year ended December 31, 2012, all shares attributable to stock-based awards were excluded in the computation of diluted earnings per share, as the Company was in a net loss position. |
PROVISION_FOR_INCOME_TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
PROVISION FOR INCOME TAXES [Text Block] | PROVISION FOR INCOME TAXES: | |||||||||||
Income Taxes | ||||||||||||
The Company accounts for income taxes under the provisions of ASC 740. Under the provisions of ASC 740, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, utilizing the tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | ||||||||||||
U.S. and foreign components of income before income taxes were (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. operations | $ | (5,064 | ) | $ | 1,936 | $ | (36,178 | ) | ||||
Foreign operations | 61,878 | 53,491 | 15,396 | |||||||||
Total pretax income (loss) | $ | 56,814 | $ | 55,427 | $ | (20,782 | ) | |||||
The components of the provision for (benefit from) income taxes are as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current provision (benefit): | ||||||||||||
Federal | $ | (1,234 | ) | $ | (558 | ) | $ | 9,813 | ||||
State | (137 | ) | 2 | (2,083 | ) | |||||||
Foreign | 3,094 | 3,049 | 1,892 | |||||||||
1,723 | 2,493 | 9,622 | ||||||||||
Deferred provision (benefit): | ||||||||||||
Federal | (3,279 | ) | (3,633 | ) | 2,647 | |||||||
State | (284 | ) | — | 3,109 | ||||||||
Foreign | (890 | ) | (699 | ) | (1,756 | ) | ||||||
(4,453 | ) | (4,332 | ) | 4,000 | ||||||||
Total | $ | (2,730 | ) | $ | (1,839 | ) | $ | 13,622 | ||||
The Company is entitled to a deduction for federal and state tax purposes with respect to employees' stock option activity. The net reduction in taxes otherwise payable in excess of any amount credited to income tax expense has been reflected as an adjustment to additional paid-in capital. For 2014, 2013 and 2012, the benefit arising from employee stock option activity that resulted in an adjustment to additional paid in capital was approximately $0.8 million, $1.3 million and $1.3 million, respectively. | ||||||||||||
The provision for (benefit from) income taxes differs from the amount, which would result by applying the applicable federal income-tax rate to income before provision for (benefit from) income taxes, as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision computed at Federal statutory rate | 35.00% | 35.00% | 35.00% | |||||||||
State tax provision, net of Federal benefit | — | — | 8.9 | |||||||||
Business tax credits | -5.5 | -8.1 | 4.9 | |||||||||
Stock-based compensation | -2.9 | -2.8 | 2.5 | |||||||||
Foreign income taxed at different rate | -28.6 | -29.5 | 25.9 | |||||||||
IRS audit settlement | -5.8 | — | -87.2 | |||||||||
Valuation allowance | 2 | -0.1 | -48.4 | |||||||||
Other | 1 | 2.2 | -7.2 | |||||||||
Total | -4.80% | -3.30% | -65.60% | |||||||||
The Company reached a settlement with the IRS in the quarter ended June 30, 2014, to close out the examination of its federal income-tax returns for the years 2007 through 2009. As a result, the Company adjusted its tax balances and the provision for income tax for the year ended December 31, 2014, includes a one-time benefit of $3.3 million comprising $2.8 million in federal income taxes and interest, and state income taxes of approximately $0.5 million. The one-time benefit includes the reversal of $4.1 million of related unrecognized tax benefits that had been recorded as non-current liabilities in the Company's consolidated balance sheets. The Company has now concluded all U.S. federal income-tax matters for the years through 2009. The Company engages in qualifying activities for R&D credit purposes. The Tax Increase Prevention Act of 2014 was signed into law on December 19, 2014, to extend the federal research and development credit for 2014. The related tax benefit was taken in the fourth quarter of 2014. | ||||||||||||
The effective tax rate for the year ended December 31, 2013, was favorably impacted by the geographic distribution of the Company's world-wide earnings and earnings in lower-tax jurisdictions. Additionally, the rate was favorably impacted by federal research tax credits both for 2013 and 2012. | ||||||||||||
During the third quarter of 2012, the Company recorded an impairment charge and write-off of certain assets related to SemiSouth of approximately $58.9 million, on which the Company recognized a $8.0 million tax benefit. The write-off resulted in a net loss for 2012. | ||||||||||||
During the third quarter of 2012 the Company made a one-time payment of taxes and interest totaling $42.6 million in connection with settling the U.S. Internal Revenue Service ("IRS") examination of the Company's income tax returns for the years 2003 through 2006. Related to this, the provision for income tax in the second quarter of 2012 included a one-time charge of $44.8 million, comprising $35.0 million in federal income taxes, net interest of $5.7 million, and state income taxes (including interest) of approximately $4.1 million. The impact of the charge was partially offset by the reversal of $26.9 million of related unrecognized tax benefits that had been recorded as non-current liabilities in the Company's consolidated balance sheet resulting in a net charge of $18.1 million. Additionally, there was a $2.2 million reduction of the valuation allowance on the Company's California deferred tax assets. | ||||||||||||
The components of the net deferred income tax asset (liabilities) were as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Other reserves and accruals | $ | 3,928 | $ | 6,893 | ||||||||
Tax credit carry-forwards | 19,602 | 12,453 | ||||||||||
Stock compensation | 5,429 | 5,964 | ||||||||||
Capital losses | 11,401 | 10,307 | ||||||||||
Net operating loss | 3,680 | 1,014 | ||||||||||
Valuation allowance | (25,828 | ) | (19,271 | ) | ||||||||
18,212 | 17,360 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | (3,320 | ) | (4,226 | ) | ||||||||
Acquired intangibles | (3,502 | ) | (4,303 | ) | ||||||||
Unremitted earnings | (5,182 | ) | (2,432 | ) | ||||||||
Other | (1,072 | ) | (1,107 | ) | ||||||||
(13,076 | ) | (12,068 | ) | |||||||||
Net deferred tax asset | $ | 5,136 | $ | 5,292 | ||||||||
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 not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future taxable income. In the event that the Company determines, based on available evidence and management judgment, that all or part of the net deferred tax assets will not be realized in the future, the Company would record a valuation allowance in the period the determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a material impact on its results of operations and financial position. | ||||||||||||
As of December 31, 2014, the Company continues to maintain a valuation allowance primarily as a result of SemiSouth capital losses for federal purposes, and on its California deferred tax assets as the Company believes that it is not more likely than not that the deferred tax assets will be fully realized. In addition, the Company maintains a valuation allowance with respect to certain of its deferred tax assets relating to tax credits in Canada and the state of New Jersey. | ||||||||||||
As of December 31, 2014, the Company had federal research and development tax credit carry-forwards of approximately $10.8 million, which will begin to expire in 2030 if unutilized, California research and development tax credit carry-forwards of approximately $14.9 million (there is no expiration of research and development tax credit carry-forwards for the state of California) and California net operating losses of $31.5 million which will begin to expire in 2032. As of December 31, 2014, the Company had Canadian scientific research and experimental development tax credit carry-forwards of approximately $2.3 million and New Jersey research and experimental development tax credit carry-forwards of approximately $0.4 million, which will start to expire in 2026 and 2027, respectively. | ||||||||||||
The Company does not provide for U.S. taxes on its undistributed earnings of foreign subsidiaries that it intends to invest indefinitely outside the U.S., unless such taxes are otherwise required under U.S. tax law. Beginning in 2013, the Company determined that a portion of its foreign subsidiaries current and future earnings may be remitted prospectively to the U.S. for domestic cash flow purposes and, accordingly, provided for the related U.S. taxes in its consolidated financial statements. If the Company changes its intent to invest its undistributed foreign earnings indefinitely or if a greater amount of undistributed earnings are needed for U.S. operations than previously anticipated and for which U.S. taxes have not been recorded, the Company would be required to accrue or pay U.S. taxes (subject to an adjustment for foreign tax credits, where applicable) and withholding taxes payable to various foreign countries on some or all of these undistributed earnings. As of December 31, 2014, the Company had undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S. of approximately $144.0 million. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be distributed. | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||
The Company applies the provisions of ASC 740-10, relating to accounting for uncertain income taxes. | ||||||||||||
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (in thousands): | ||||||||||||
Unrecognized Tax Benefits Balance at January 1, 2012 | $ | 34,855 | ||||||||||
Gross Increases for Tax Positions of Current Year | 1,110 | |||||||||||
Gross Increases for Tax Positions of Prior Years | 9,344 | |||||||||||
Settlements | (34,496 | ) | ||||||||||
Lapse of Statute of Limitations | — | |||||||||||
Unrecognized Tax Benefits Balance at December 31, 2012 | 10,813 | |||||||||||
Gross Increases for Tax Positions of Current Year | 1,881 | |||||||||||
Gross Increase for Tax Positions of Prior Years | — | |||||||||||
Settlements | — | |||||||||||
Lapse of Statute of Limitations | — | |||||||||||
Unrecognized Tax Benefits Balance at December 31, 2013 | 12,694 | |||||||||||
Gross Increases for Tax Positions of Current Year | 2,117 | |||||||||||
Gross Increases for Tax Positions of Prior Years | 710 | |||||||||||
Settlements | (4,361 | ) | ||||||||||
Lapse of Statute of Limitations | — | |||||||||||
Unrecognized Tax Benefits Balance at December 31, 2014 | $ | 11,160 | ||||||||||
The Company's total unrecognized tax benefits as of December 31, 2014, 2013 and 2012, was $11.2 million, $12.7 million and $10.8 million, respectively. An income-tax benefit of $4.9 million, net of valuation allowance adjustments, would be recorded if these unrecognized tax benefits are recognized. As of December 31, 2014, the Company is not under any income tax audit. The Company cannot reasonably estimate the amount of the unrecognized tax benefit that could be adjusted in the next twelve months. | ||||||||||||
The Company's continuing practice is to recognize interest and/or penalties related to income-tax matters in income-tax expense. The Company has accrued interest and penalties at December 31, 2014, and December 31, 2013, of $0.1 million and $0.7 million, respectively, which have been recorded in long-term income taxes payable in the accompanying Consolidated Balance Sheets. Approximately $10,000 of interest, net of the benefit, was included in the Company's benefit from income taxes for the year-ended December 31, 2014. | ||||||||||||
In July 2013, the FASB issued a new accounting standard that requires the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Company's condensed consolidated balance sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The Company adopted this new standard on a prospective basis in the first quarter of 2014. The impact of the adoption was a reduction to long-term deferred tax assets and non-current income tax payable of approximately $4.3 million. | ||||||||||||
In the quarter ended June 30, 2012, the Company reached an understanding regarding the terms for settling with the U.S. Internal Revenue Service ("IRS") and closed out all positions as part of the examination of the Company's income tax returns for the years 2003 through 2006. On August 2, 2012, the IRS signed a formal closing agreement with the Company that is consistent with the intentions of the parties pursuant to their earlier understanding. Further, the agreement confirmed that the royalty arrangement between the Company and its foreign subsidiary concluded on October 31, 2012, resulting in a substantially lower effective tax rate for the Company in subsequent years. | ||||||||||||
As of December 31, 2014, the Company has concluded all U.S. federal income tax matters for the years through 2009, and has finalized Swiss income tax returns for the years through 2012. There is currently no pending income tax audit. |
COMMITMENTS
COMMITMENTS | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
COMMITMENTS [Text Block] | COMMITMENTS: | |||
Facilities | ||||
The Company owns its main executive, administrative, manufacturing and technical offices in San Jose, California. The Company also owns a research and development facility in New Jersey, which was purchased in 2010 in connection with its acquisition of an early-stage research and development company, and a test facility in Biel, Switzerland which was acquired in connection with the Company's acquisition of Concept. The Company leases administrative office space in Singapore and Switzerland, and a research and development facility in Canada, in addition to sales offices in various countries around the world. | ||||
Future minimum lease payments under all non-cancelable operating lease agreements as of December 31, 2014, are as follows (in thousands): | ||||
Fiscal Year | ||||
2015 | $ | 1,485 | ||
2016 | 1,082 | |||
2017 | 887 | |||
2018 | 966 | |||
2019 | 412 | |||
Thereafter | — | |||
Total minimum lease payments | $ | 4,832 | ||
Total rent expense amounted to $1.8 million, $1.5 million and $1.4 million in the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
Purchase Obligations | ||||
At December 31, 2014, the Company had no non-cancelable purchase obligations that were due beyond one year. |
LEGAL_PROCEEDINGS_AND_CONTINGE
LEGAL PROCEEDINGS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES [Text Block] | LEGAL PROCEEDINGS AND CONTINGENCIES: |
From time to time in the ordinary course of business, the Company becomes involved in lawsuits, or customers and distributors may make claims against the Company. In accordance with ASC 450-10, the Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. | |
On October 20, 2004, the Company filed a complaint against Fairchild Semiconductor International, Inc. and Fairchild Semiconductor Corporation (referred to collectively as "Fairchild") in the United States District Court for the District of Delaware. In its complaint, the Company alleged that Fairchild has and is infringing four of Power Integrations' patents pertaining to PWM integrated circuit devices. Fairchild denied infringement and asked for a declaration from the court that it does not infringe any Power Integrations patent and that the patents are invalid. The Court issued a claim construction order on March 31, 2006 which was favorable to the Company. The Court set a first trial on the issues of infringement, willfulness and damages for October 2, 2006. At the close of the first trial, on October 10, 2006, the jury returned a verdict in favor of the Company finding all asserted claims of all four patents-in-suit to be willfully infringed by Fairchild and awarding $34.0 million in damages. Fairchild raised defenses contending that the asserted patents are invalid or unenforceable, and the Court held a second trial on these issues beginning on September 17, 2007. On September 21, 2007, the jury returned a verdict in the Company's favor, affirming the validity of the asserted claims of all four patents-in-suit. Fairchild submitted further materials on the issue of enforceability along with various other post-trial motions, and the Company filed post-trial motions seeking a permanent injunction and increased damages and attorneys' fees, among other things. On September 24, 2008, the Court denied Fairchild's motion regarding enforceability and ruled that all four patents are enforceable. On December 12, 2008, the Court ruled on the remaining post-trial motions, including granting a permanent injunction, reducing the damages award to $6.1 million, granting Fairchild a new trial on the issue of willful infringement in view of an intervening change in the law, and denying the Company's motion for increased damages and attorneys' fees with leave to renew the motion after the resolution of the issue of willful infringement. On December 22, 2008, at Fairchild's request, the Court temporarily stayed the permanent injunction for 90 days. On January 12, 2009, Fairchild filed a notice of appeal challenging the Court's refusal to enter a more permanent stay of the injunction, and Fairchild filed additional motions requesting that both the Federal Circuit and the District Court extend the stay of injunction. The District Court temporarily extended the stay pending the Federal Circuit ruling on Fairchild's pending motion, but the Federal Circuit dismissed Fairchild's appeal and denied its motion on May 5, 2009, and the District Court issued an order on May 13, 2009 confirming the reinstatement of the permanent injunction as originally entered in December 2008. On June 22, 2009, the Court held a brief bench re-trial on the issue of willful infringement. On July 22, 2010, the Court found that Fairchild willfully infringed all four of the asserted patents, and the Court also invited briefing on enhanced damages and attorneys' fees. Fairchild also filed a motion requesting that the Court amend its findings regarding willfulness. On January 18, 2011, the Court denied Fairchild's request to amend the findings regarding Fairchild's willful infringement and doubled the damages award against Fairchild but declined to award attorneys' fees. On February 3, 2011, the Court entered final judgment in favor of the Company for a total damages award of $12.9 million. Fairchild filed a notice of appeal challenging the final judgment and a number of the underlying rulings, and the Company filed a cross-appeal seeking to increase the damages award. The appeal was argued on January 11, 2012, and the Federal Circuit issued a mixed ruling on March 26, 2013, affirming Fairchild's infringement of certain claims that support the basis for the permanent injunction while reversing, vacating, and remanding the findings with respect to other claims, including the Company's claim for damages. The Company filed a petition seeking Supreme Court review of the Federal Circuit’s ruling on damages issues, and the Supreme Court called for a response from Fairchild but ultimately declined to review the case. On remand, the Company intends to pursue its claim for financial compensation based on Fairchild's infringement. | |
On May 9, 2005, the Company filed a Complaint with the U.S. International Trade Commission (“ITC”) under section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. section 1337 against System General (“SG”). The Company filed a supplement to the complaint on May 24, 2005. The Company alleged infringement of its patents pertaining to pulse width modulation (“PWM”) integrated circuit devices produced by SG, which are used in power conversion applications such as power supplies for computer monitors. The Commission instituted an investigation on June 8, 2005 in response to the Company's complaint. SG filed a response to the ITC complaint asserting that the patents-in-suit were invalid and not infringed. The Company subsequently and voluntarily narrowed the number of patents and claims in suit, which proceeded to a hearing. The hearing on the investigation was held before the Administrative Law Judge (“ALJ”) from January 18 to January 24, 2006. Post-hearing briefs were submitted and briefing concluded February 24, 2006. The ALJ's initial determination was issued on May 15, 2006. The ALJ found all remaining asserted claims valid and infringed, and recommended the exclusion of the infringing products as well as certain downstream products that contain the infringing products. After further briefing, on June 30, 2006, the Commission decided not to review the initial determination on liability, but did invite briefs on remedy, bonding and the public interest. On August 11, 2006, the Commission issued an order excluding from entry into the United States the infringing SG PWM chips, and any LCD computer monitors, AC printer adapters and sample/demonstration circuit boards containing an infringing SG chip. The U.S. Customs Service is authorized to enforce the exclusion order. On October 11, 2006, the presidential review period expired without any action from the President, and the ITC exclusion order is now in full effect. SG appealed the ITC decision, and on November 19, 2007, the Federal Circuit affirmed the ITC's findings in all respects. On October 27, 2008, SG filed a petition to modify the exclusion order in view of a recent Federal Circuit opinion in an unrelated case, and the Company responded to oppose any modification, but the Commission modified the exclusion order on February 27, 2009. Nevertheless, the exclusion order still prohibits SG and related entities from importing the infringing SG chips and any LCD computer monitors, AC printer adapters, and sample/demonstration circuit boards containing an infringing SG chip. | |
On May 23, 2008, the Company filed a complaint against Fairchild Semiconductor International, Inc., Fairchild Semiconductor Corporation, and Fairchild's wholly owned subsidiary System General Corporation in the United States District Court for the District of Delaware. In its complaint, the Company alleged that Fairchild has infringed and is infringing three patents pertaining to power supply controller integrated circuit devices. Fairchild answered the Company's complaint on November 7, 2008, denying infringement and asking for a declaration from the Court that it does not infringe any Power Integrations patent and that the patents are invalid and unenforceable. Fairchild's answer also included counterclaims accusing the Company of infringing three patents pertaining to primary side power conversion integrated circuit devices. Fairchild had earlier brought these same claims in a separate suit against the Company, also in Delaware, which Fairchild dismissed in favor of adding its claims to the Company's already pending suit against Fairchild. The Company has answered Fairchild's counterclaims, denying infringement and asking for a declaration from the Court that it does not infringe any Fairchild patent and that the Fairchild patents are invalid. Fairchild also filed a motion to stay the case, but the Court denied that motion on December 19, 2008. On March 5, 2009, Fairchild filed a motion for summary judgment to preclude any recovery for post-verdict sales of parts found to infringe in the parties' other ongoing litigation, described above, and the Company filed its opposition and a cross-motion to preclude Fairchild from re-litigating the issues of infringement and damages for those same products. On June 26, 2009, the Court held a hearing on the parties' motions, and on July 9, 2009 the Court issued an order denying the parties' motions but staying proceedings with respect to the products that were found to infringe and which are subject to the injunction in the other Delaware case between the parties pending the entry of final judgment in that case; those products are expected to be addressed in the context of the parties’ remand proceedings following the appeal in their earlier litigation in Delaware, and the remainder of the case is proceeding. On December 18, 2009, the Court issued an order construing certain terms in the asserted claims of the Company's and Fairchild's patents in suit. Following the Court's ruling on claim construction, Fairchild withdrew its claim related to one of its patents and significantly reduced the number of claims asserted for the remaining two patents. The parties thereafter filed and argued a number of motions for summary judgment, and the Court denied the majority of the parties' motions but granted the Company's motion to preclude Fairchild from re-arguing validity positions that were rejected in the prior case between the parties. Because the assigned Judge retired at the end of July 2010, the case was re-assigned to a different Judge, and the Court vacated the trial schedule and had the parties provide their input on the appropriate course of action. The Court thereafter set a trial schedule with the jury trial on infringement and validity to begin in July 2011. On April 18, 2011, the Court rescheduled the trial to begin in January 2012, and on June 2, 2011, the Court moved the trial date to April 2012 to permit the parties to address another patent the Company accused Fairchild of infringing. Following a trial in April 2012, the jury returned a verdict finding that Fairchild infringes two of the Company's patents, that Fairchild has induced others to infringe the Company's patents, and also upheld the validity of the infringed patents. Of the two remaining counterclaim patents Fairchild asserted in the case, one was found not to be infringed, but the jury found the second patent to be infringed by a limited number of the Company's products, although the jury further found the Company did not induce infringement by any customers, including customers outside the United States. On March 29, 2013, the District Court denied most of the parties' post-trial motions on liability but granted the Company's motion for judgment as a matter of law finding that Fairchild infringed another of the Company's patents. On April 25, 2013, the Court denied both parties' motions regarding the unenforceability of each other's patents. The Company intends to challenge adverse findings on appeal; nevertheless, the Company estimates that even if the verdict on Fairchild's patent were ultimately upheld, the sales potentially impacted would amount to only about 0.3% of the Company's revenues. The Company requested an injunction preventing further infringement of its own patents by Fairchild, and Fairchild requested an injunction as well; following a hearing on the issue in June 2014, the Court denied Fairchild's request for an injunction against the Company and granted the Company's request for an injunction against Fairchild. On January 13, 2015, the District Court entered final judgment on the liability and validity issues discussed above, either party may appeal to the Federal Circuit in the coming months. The Company is also seeking financial damages, as well as enhanced damages for willful infringement, issues to be decided in separate proceedings at a later date. | |
On June 28, 2004, the Company filed a complaint for patent infringement in the U.S. District Court, Northern District of California, against SG Corporation, a Taiwanese company, and its U.S. subsidiary. The Company's complaint alleged that certain integrated circuits produced by SG infringed and continue to infringe certain of its patents. On June 10, 2005, in response to the initiation of the International Trade Commission (ITC) investigation discussed above, the District Court stayed all proceedings. Subsequent to the completion of the ITC proceedings, the District Court temporarily lifted the stay and scheduled a case management conference. On December 6, 2006, SG filed a notice of appeal of the ITC decision as discussed above. In response, and by agreement of the parties, the District Court vacated the scheduled case management conference and renewed the stay of proceedings pending the outcome of the Federal Circuit appeal of the ITC determination. On November 19, 2007, the Federal Circuit affirmed the ITC's findings in all respects, and SG did not file a petition for review. The parties subsequently filed a motion to dismiss the District Court case without prejudice. On November 4, 2009, the Company re-filed its complaint for patent infringement against SG and its parent corporations, Fairchild Semiconductor International, Inc. and Fairchild Semiconductor Corporation, to address their continued infringement of patents at issue in the original suit that recently emerged from SG requested reexamination proceedings before the U.S. Patent and Trademark Office (USPTO). The Company seeks, among other things, an order enjoining Fairchild and SG from infringing the Company's patents and an award of damages resulting from the alleged infringement. Fairchild has denied infringement and asked for a declaration from the Court that it does not infringe any Power Integrations patent, that the patents are invalid, and that one of the two of the Company's patents now at issue in the case is unenforceable. On May 5, 2010, Fairchild and SG filed an amended answer including counterclaims accusing the Company of infringing two patents, and since that time Fairchild has withdrawn its claim for infringement of one of the patents it originally asserted against the Company but added another patent to the case over the Company's objections; the Company contests these claims vigorously. Both parties filed summary judgment motions and challenges to each other’s experts’ testimony, and the Court granted the Company’s motion for summary judgment of non-infringement with respect to one of Fairchild’s two patents. Following a trial on the remaining claims in February 2014, the jury returned a verdict in the Company’s favor, affirming the validity of the asserted claims of the Company’s patents-in-suit, finding that Fairchild and SG infringed the Company’s asserted patents and induced infringement by others, and awarding $105.0 million in damages. Although the jury awarded damages, at this stage of the proceedings the Company cannot state the amount, if any, it might ultimately recover from Fairchild, and no benefits have been recorded in the Company’s consolidated financial statements as a result of the damages verdict. The Jury also rejected Fairchild’s remaining counterclaims for infringement against the Company. Fairchild challenged these rulings in post-trial motions, but the judge confirmed the jury’s determinations on infringement and damages, although the Court declined to find Fairchild’s infringement willful. Fairchild also pressed its unenforceability claim with respect to one of the two patents it was found to infringe in post-trial briefing, but the Court rejected Fairchild’s unenforceability claim. Fairchild also requested reconsideration of the damages determinations, and the Court granted a new trial with respect to damages but none of the other issues addressed in the previous trial; further proceedings with respect to the damages retrial will take place over the coming months. The Company has filed a motion requesting a permanent injunction to prevent further infringement by Fairchild; a ruling is expected in the coming months. | |
In February 2010, Fairchild and System General (“SG”) filed suits for patent infringement against the Company, Power Integrations Netherlands B.V., and representative offices of Power Integrations Netherlands in Shanghai and Shenzhen with the Suzhou Intermediate Court in the People's Republic of China. The suits assert four Chinese patents and seek an injunction and damages of approximately $19.0 million. Power Integrations Netherlands filed invalidation proceedings for all four asserted SG patents in the People's Republic of China Patent Reexamination Board (PRB) of the State Intellectual Property Office (SIPO), and all four challenges were accepted by the PRB, with hearings conducted in September 2010. In early January 2012, the Company received rulings from the PRB invalidating the majority of the claims Fairchild asserted in litigation, and the PRB determinations are currently on appeal. The Suzhou Court conducted evidentiary hearings in 2012 and issued rulings in late December 2012, finding that the Company did not infringe any of the asserted patents. Fairchild filed appeals challenging the Suzhou Court's non-infringement rulings, and the appeals court in Nanjing held further hearings in the infringement proceedings late last year, but Fairchild has since dismissed its appeals, bringing the infringement proceedings to a close. | |
On July 11, 2011, the Company filed a complaint in the U.S. District Court, District of Columbia, against David Kappos in his capacity as Director of the United States Patent and Trademark Office (“PTO”) as part of the ongoing reexamination proceedings related to one of the patents asserted against Fairchild and SG in the Delaware litigation described above. The Company filed a motion for summary judgment on a preliminary jurisdictional issue, and the PTO filed a cross-motion to dismiss on this same issue; briefing on those motions was completed in October, 2011. On November 18, 2013, the Court granted the PTO’s motion and transferred the case to the Federal Circuit, where additional briefing has taken place and a hearing is expected to be scheduled in the coming months. | |
On May 1, 2012, Fairchild Semiconductor Corporation and Fairchild's wholly-owned subsidiary, System General Corporation (referred to collectively as “Fairchild”), filed a complaint against the Company in the United States District Court for the District of Delaware. In its complaint, Fairchild alleges that the Company has infringed and is infringing four patents pertaining to power conversion integrated circuit devices. The Company answered Fairchild's complaint, denying infringement and asking for a declaration from the Court that it does not infringe any Fairchild patent and that the Fairchild patents are invalid, and the Company also asserted counterclaims against Fairchild for infringement of five of the Company's patents. Fairchild has withdrawn its claim for infringement of one of the patents it asserted against the Company after the Company's preliminary challenge; expert discovery is now complete on the remaining patents. Both parties have filed dispositive motions on a number of issues, and trial is scheduled to begin on May 26, 2015. | |
On February 5, 2013, Trinity Capital Investment, LLC (“Trinity”) filed suit against the Company in California Superior Court. The complaint alleged that SemiSouth Laboratories Inc. had entered into a lease agreement with Trinity, and that the Company guaranteed SemiSouth's obligations under the lease agreement. The complaint further alleged that SemiSouth defaulted on the lease agreement in October 2012, and therefore the Company owed Trinity $2.4 million under the lease guaranty. On April 19, 2013, the Company answered the complaint, denying the allegations therein. On April 18, 2014, Trinity filed a request to dismiss the action without prejudice. | |
The Company is unable to predict the outcome of legal proceedings with certainty, and there can be no assurance that Power Integrations will prevail in the above-mentioned unsettled litigations. These litigations, whether or not determined in Power Integrations' favor or settled, will be costly and will divert the efforts and attention of the Company's management and technical personnel from normal business operations, potentially causing a material adverse effect on the business, financial condition and operating results. Currently, the Company is not able to estimate a loss or a range of loss for the ongoing litigation disclosed above, however adverse determinations in litigation could result in monetary losses, the loss of proprietary rights, subject the Company to significant liabilities, require Power Integrations to seek licenses from third parties or prevent the Company from licensing the technology, any of which could have a material adverse effect on the Company's business, financial condition and operating results. | |
In the quarter ended June 30, 2014, the IRS issued the Company a notice of proposed adjustments to the Company's taxable income for the years 2007 through 2009. The Company and IRS signed a formal closing agreement on May 20, 2014, to settle all positions and close out the examination of the Company's income-tax returns for the years 2007 through 2009. As a result, the Company adjusted its tax balances based on the facts, circumstances, and information available at the reporting date. The resolution of the 2007-2009 IRS audit resulted in a federal tax benefit to the Company of $2.8 million. Additionally, the Company recorded a state tax benefit of $0.5 million. Also, the agreement allowed the Company to repatriate up to $5.0 million from its foreign subsidiary without incurring additional U.S. income taxes. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
ACQUISITIONS [Text Block] | ACQUISITIONS: | ||||||
Cambridge Semiconductor Limited | |||||||
In December 2014, the Company entered into a loan agreement with Cambridge Semiconductor Limited ("CamSemi"), a UK company, in which $6.6 million was outstanding as of December 31, 2014. The estimated fair value of the loan, which was a level 3 fair value measurement (see Note 4, Fair Value Measurements, for details) approximated the carrying value of $6.6 million, as the loan was outstanding for less than a month and the interest rate approximated a market rate for such a loan. The loan was in anticipation of a definitive agreement the Company entered into to acquire CamSemi on January 2, 2015, for approximately $23.0 million, including an estimated working capital adjustment. The Company closed the acquisition on January 2, 2015. Pursuant to the purchase agreement, the purchase price is subject to a net asset value adjustment which will be determined within approximately three months after January 2, 2015. | |||||||
CamSemi was acquired to accelerate the Company's product development efforts for the low-power market. The acquisition also broadens the Company's technology and product portfolio for low-power applications, particularly in the mobility and LED lighting markets. | |||||||
The initial accounting for the acquisition is still ongoing as of the date this Annual Report on Form 10-K was issued. It is expected that intangible assets and goodwill will be recorded on the consolidated balance sheets; however, as the initial accounting for the acquisition has not been completed at the time of the issuance of these consolidated financial statements, further details have not yet been disclosed. | |||||||
CT-Concept Technologie AG | |||||||
On May 1, 2012, the Company, through its subsidiaries Power Integrations Netherlands B.V., a Dutch company, and Power Integrations Limited, a Cayman Islands company, completed the acquisition of CT Concept Technologie AG ("Concept" or "Concept Group"), a Swiss company, by acquiring all of the outstanding shares of its Swiss parent companies Concept Beteiligungen AG and CT-Concept Holding AG (the “Acquisition”), pursuant to the Share Purchase Agreement ("Purchase Agreement"). | |||||||
The acquisition has been accounted for using the acquisition method of accounting in accordance with ASC 805 - Business Combinations. Goodwill is not expected to be deductible for tax purposes. | |||||||
The acquisition furthers the Company's strategic aim to offer highly integrated high-voltage power-conversion products across the widest possible range of power levels and applications. While Power Integrations has historically focused on power supplies up to 500 watts of output, Concept products address higher-power applications, such as industrial motors and renewable energy systems. As such, the combination is complementary to Power Integrations' existing business. Furthermore, Concept also has an expanding addressable market and a growing, profitable revenue stream that are consistent with Power Integrations' financial goals/targets. | |||||||
The following table summarizes the purchase price and estimated fair values of the assets acquired and the liabilities assumed as of May 1, 2012, the completion of the acquisition of Concept ("Closing Date"). | |||||||
Total Amount | |||||||
Assets Acquired | (in thousands) | ||||||
Cash | $ | 14,933 | |||||
Accounts receivable | 3,220 | ||||||
Inventories | 10,631 | ||||||
Prepaid expenses and other current assets | 2,777 | ||||||
Property and equipment, net | 2,310 | ||||||
Intangible assets: | |||||||
Developed technology | 23,750 | ||||||
Trade name | 3,600 | ||||||
Customer relationships | 16,700 | ||||||
Goodwill | 65,813 | ||||||
Total assets acquired | 143,734 | ||||||
Liabilities assumed | |||||||
Current liabilities | 4,587 | ||||||
Deferred tax liabilities | 7,860 | ||||||
Other liabilities | 634 | ||||||
Total liabilities assumed | 13,081 | ||||||
Total purchase price | $ | 130,653 | |||||
The fair value of intangible assets of $44.1 million has been allocated to the following three asset categories: 1) developed technology, 2) trade name and 3) customer relationships. The first two will be amortized on a straight line basis over the estimated useful life of the assets. The third intangible asset, customer relationships, will be amortized on an accelerated basis over the estimated life of the asset. The following table represents details of the purchased intangible assets as part of the acquisition: | |||||||
Fair Value Amount | Estimated Useful Life | ||||||
(in thousands) | (in years) | ||||||
Developed technology | $ | 23,750 | 12-Apr | ||||
Trade name | 3,600 | 2 | |||||
Customer relationships | 16,700 | 10 | |||||
Total Concept intangibles | $ | 44,050 | |||||
The fair value of the identifiable intangible assets: developed technology, trademark and customer relationships were determined based on the following approach. | |||||||
Developed Technology: The value assigned to the acquired developed technology was determined using the income approach. The royalty savings were estimated by applying an estimated royalty rate to the projected revenues for Concept for each developed technology. The selected royalty rate for the developed technology was based on the Company's analysis of comparable technology, royalty rate indications, and licensing agreements for comparable technologies. The royalty savings were then adjusted for taxes and discounted to present value. The fair value of developed technology was capitalized as of the acquisition date and is being amortized using a straight-line method to cost of revenues over the estimated life of 4 - 12 years. | |||||||
Trade Name: The value assigned to Concept's trade name was determined using the income approach. The present value of the expected after-tax royalty savings was added to the sum of the expected amortization tax benefit. The royalty rate was selected based on an analysis of comparable trade name agreements. In addition, the rate was adjusted based on an analysis of Concept's projected performance and the importance of the trade name to the industry. The selected royalty rate was then applied to the projected revenues for the trade name. The fair value of the trade name was amortized on a straight-line basis to sales and marketing expenses over its estimated life of 2 years. | |||||||
Customer Relationships: An intangible customer relationship asset was recognized to the extent that the Company was expected to benefit from future revenues reasonably anticipated given the history and operating practices of Concept. The value assigned to customer relationships was determined using the income approach. Forecasted cash flows derived from the acquired customer relationships, net of returns on contributory assets, were discounted to present value. Expectations related to future customer retention were based on historical data and a long-term forecast that was constructed based on the Company's financial projections and expectations. The associated income taxes were based on an assumed tax rate of a hypothetical buyer. The net income was then charged for the required returns of debt-free working capital, net fixed and other assets, developed technology and trade name to derive the residual cash flows related to the customer relationships acquired. The residual cash flows were then discounted to present value. The fair value of customer relationships was capitalized as of the acquisition date and is being amortized on an accelerated basis to sales and marketing expenses over the estimated life of 10 years. |
TRANSACTIONS_WITH_THIRD_PARTY
TRANSACTIONS WITH THIRD PARTY | 12 Months Ended |
Dec. 31, 2014 | |
Investments, All Other Investments [Abstract] | |
INVESTMENT IN THIRD PARTY [Text Block] | TRANSACTIONS WITH THIRD PARTY: |
On October 22, 2010, the Company purchased SemiSouth preferred stock for $7.0 million, which represented an approximate 16.0% interest in SemiSouth, a privately-held company. The Company accounted for its investment under the cost method. Also in October 2010, the Company paid $10.0 million as a prepaid royalty in exchange for the right to use SemiSouth's technology. The Company's 2010 agreement with SemiSouth provided, among other things, that the Company had the option to acquire SemiSouth in the future (“Call Option”) and that the Company may be obligated to acquire SemiSouth at a future date if SemiSouth achieved certain financial performance conditions (“Put Option”). The Call and Put Options were intended to result in an acquisition price equal to the estimated fair value of SemiSouth at the time of exercise. Pursuant to an amended agreement entered into in March 2012 in connection with the $18.0 million financing discussed below, the maximum purchase price under the call and put options would not exceed $80.0 million. | |
In July 2011, SemiSouth obtained $15.0 million of financing through the sale, and concurrent licensing back, of its intellectual property ("IP") with a financing company. In connection with this arrangement, the Company entered into a contingent purchase commitment with the financing company for SemiSouth's IP, which effectively provided a guarantee of the arrangement to the finance company. The contingent purchase commitment required the Company to purchase the IP previously owned by SemiSouth from its new owner for $15.0 million (plus reimbursement of certain expenses) under certain conditions generally relating to SemiSouth's failure to make certain payments or SemiSouth's insolvency. | |
In March 2012, the Company loaned SemiSouth $18.0 million, and in exchange the Company was issued a promissory note with interest of 2.0%. In consideration for the loan the Company obtained the above-mentioned amendment to its 2010 agreement with SemiSouth which established a maximum purchase price under the call and put options. The Company used a Black-Scholes option pricing model to determine the fair value of the Company's purchase option to be approximately $6.2 million and the fair value of the loan to be $11.8 million The Company accreted the discount on the loan as interest income using the interest method over the term of the loan. | |
Based on SemiSouth's deteriorating financial condition at September 30, 2012, as further evidenced by its closure in the fourth quarter of 2012, the Company determined that its SemiSouth-related assets were impaired as of September 30, 2012. The Company's third quarter 2012 results included an impairment charge of $33.7 million, comprising a write-off of $6.7 million of lease receivables, $7.0 million of preferred stock, a promissory note (net of imputed interest) in the amount of $13.2 million, $6.2 million for the Purchase Option, and other assets of $0.6 million. The Company has also expensed the prepaid royalty of $10.0 million as it no longer expected to use SemiSouth's technology and foresaw no alternative use for it. | |
In addition, the financing company that owned SemiSouth's intellectual property exercised its contractual rights to put SemiSouth's intellectual property to the Company under the terms of the above-mentioned SemiSouth contingent purchase commitment. Based on SemiSouth's financial situation and its closure in the fourth quarter of 2012, the Company estimated that this intellectual property had no value. Therefore, the Company took a charge of $15.3 million related to this contingent obligation in the third quarter of 2012, and in the fourth quarter of 2012, the Company settled and paid the commitment for $15.2 million to the financing company. |
RETIREMENT_PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT PLANS [Text Block] | RETIREMENT PLANS: |
In connection with the Company's acquisition of Concept in May 2012, the Company sponsors a defined benefit pension plan ("Pension Plan") in accordance with the legal requirements of Switzerland (refer to Note 11, Acquisition, for details on the Concept acquisition). The plan assets, which provide benefits in the event of an employee's retirement, death or disability, are held in legally autonomous trustee-administered funds that are subject to Swiss law. Benefits are based on the employee's age, years of service and salary, and the plan is financed by contributions by both the employee and the Company. | |
The net periodic benefit cost of the Pension Plan was not material to the Company's financial statements during the years ended December 31, 2014, 2013 and 2012. At December 31, 2014, the projected benefit obligation was $8.1 million, the plan assets were $5.8 million and the net pension liability was $2.3 million. As of December 31, 2013, the projected benefit obligation was $7.0 million, the plan assets were $5.1 million, and the net pension liability was $1.9 million. The Company has recorded the unfunded amount as a liability in its Consolidated Balance Sheet at December 31, 2014 and 2013, under the other liabilities caption. The Company expects to make contributions to the Pension Plan of approximately $0.4 million during 2015. The unrealized actuarial loss on pension benefits, net of tax at December 31, 2014, 2013 and 2012 was $1.2 million, $0.8 million and $0.6 million, respectively. This amount was reflected in Note 2 above under the caption accumulated other comprehensive income. | |
In accordance with the Compensation-Retirement Benefits Topic of ASC 715-20, the Company recognizes the over-funded or under-funded status of its defined postretirement plan as an asset or liability in its statement of financial position. The company measured the plan assets and benefit obligations as of the date of the fiscal year-end. |
BANK_LINE_OF_CREDIT
BANK LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
BANK LINE OF CREDIT [Text Block] | BANK LINE OF CREDIT: |
On July 5, 2012, the Company entered into a Credit Agreement (the "Credit Agreement") with two banks. The Credit Agreement provides the Company with a $100.0 million revolving line of credit to use for general corporate purposes with a $20.0 million sublimit for the issuance of standby and trade letters of credit. The Credit Agreement was amended on April 1, 2014, to extend the Credit Agreement termination date from July 5, 2015, to April 1, 2017, with all other terms of the Credit Agreement remaining the same. The Company's ability to borrow under the revolving line of credit is conditioned upon the Company's compliance with specified covenants, including reporting and financial covenants, primarily a minimum cash requirement and a debt to earnings ratio, with which the Company is currently in compliance. All advances under the revolving line of credit will become due on April 1, 2017, or earlier in the event of a default. As of December 31, 2014, the Company had no amount outstanding under the Credit Agreement. |
SELECTED_QUARTERLY_INFORMATION
SELECTED QUARTERLY INFORMATION | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
SELECTED QUARTERLY INFORMATION (Unaudited) [Text Block] | SELECTED QUARTERLY INFORMATION (Unaudited): | |||||||||||||||||||||||||||||||
The following tables set forth certain data from the Company's consolidated statements of income for each of the quarters in the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
The unaudited quarterly consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements contained herein and include all adjustments that the Company considers necessary for a fair presentation of such information when read in conjunction with the Company's annual audited consolidated financial statements and notes thereto appearing elsewhere in this report. The operating results for any quarter are not necessarily indicative of the results for any subsequent period or for the entire fiscal year (in thousands, except per share data). | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | |||||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||||||||||||
Net revenues | $ | 86,595 | $ | 90,144 | $ | 88,985 | $ | 83,073 | $ | 90,412 | $ | 91,715 | $ | 87,922 | $ | 77,040 | ||||||||||||||||
Gross profit | $ | 45,805 | $ | 49,052 | $ | 48,736 | $ | 45,977 | $ | 48,391 | $ | 48,774 | $ | 46,207 | $ | 39,864 | ||||||||||||||||
Net income | $ | 14,354 | $ | 16,111 | $ | 16,716 | $ | 12,363 | $ | 16,037 | $ | 16,654 | $ | 13,672 | $ | 10,903 | ||||||||||||||||
Earnings per share | ||||||||||||||||||||||||||||||||
Basic | $ | 0.49 | $ | 0.54 | $ | 0.55 | $ | 0.41 | $ | 0.54 | $ | 0.56 | $ | 0.47 | $ | 0.38 | ||||||||||||||||
Diluted | $ | 0.48 | $ | 0.52 | $ | 0.54 | $ | 0.4 | $ | 0.52 | $ | 0.54 | $ | 0.45 | $ | 0.37 | ||||||||||||||||
Shares used in per share calculation | ||||||||||||||||||||||||||||||||
Basic | 29,350 | 30,013 | 30,310 | 30,239 | 29,974 | 29,762 | 29,178 | 28,754 | ||||||||||||||||||||||||
Diluted | 30,051 | 30,757 | 31,110 | 31,167 | 30,924 | 30,652 | 30,158 | 29,783 | ||||||||||||||||||||||||
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Schedule II - Valuation and Qualifying Accounts [Text Block] | Schedule II | |||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||
The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. This allowance is established using estimates formulated by the Company's management based upon factors such as the composition of the accounts receivable aging, historical bad debt, changes in payments patterns, customer creditworthiness, and current economic trends. The Company maintains an allowance for the distributors' ship and debit credits relating to the sell-through of the Company's products. This reserve is established using the Company's historical ship and debit amounts and levels of inventory in the distributor channels. | ||||||||||||||||
Following is a summary of the activity in the allowance for doubtful accounts and allowance for ship and debit credits: | ||||||||||||||||
Classification | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions(1) | Balance at End of Period | ||||||||||||
(in thousands) | ||||||||||||||||
Allowances for doubtful accounts: | ||||||||||||||||
Year ended December 31, 2012 | $ | 215 | $ | 32 | $ | — | $ | 247 | ||||||||
Year ended December 31, 2013 | $ | 247 | $ | 12 | $ | (139 | ) | $ | 120 | |||||||
Year ended December 31, 2014 | $ | 120 | $ | 135 | $ | (64 | ) | $ | 191 | |||||||
Classification | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions(2) | Balance at End of Period | ||||||||||||
(in thousands) | ||||||||||||||||
Allowances for ship and debit credits: | ||||||||||||||||
Year ended December 31, 2012 | $ | 19,464 | $ | 154,803 | $ | (151,227 | ) | $ | 23,040 | |||||||
Year ended December 31, 2013 | $ | 23,040 | $ | 172,621 | $ | (166,965 | ) | $ | 28,696 | |||||||
Year ended December 31, 2014 | $ | 28,696 | $ | 177,260 | $ | (178,531 | ) | $ | 27,425 | |||||||
(1) Deductions relate to amounts written off against the allowances for doubtful accounts. | ||||||||||||||||
(2) Deductions relate to ship and debit credits issued which adjust the sell-in price from the standard distribution price to the pre-approved lower price. Refer to Note 2, Summary of Significant Accounting Policies, for the Company's revenue recognition policy, including the Company's accounting for ship and debit claims. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of Consolidation [Policy Text Block] | Principles of Consolidation |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of all intercompany transactions and balances. | |
Estimates [Policy Text Block] | Estimates |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition and allowances for receivables and inventories. These estimates are based on historical facts and various other factors, which the Company believes to be reasonable at the time the estimates are made. However, as the effects of future events cannot be determined with precision, actual results could differ significantly from management's estimates. | |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents |
The Company considers cash invested in highly liquid financial instruments with maturities of three months or less at the date of purchase to be cash equivalents. | |
Marketable Securities [Policy Text Block] | Marketable Securities |
The Company generally holds securities until maturity; however, they may be sold under certain circumstances including, but not limited to, when necessary for the funding of acquisitions and other strategic investments. As a result the Company classifies its investment portfolio as available-for-sale. The Company classifies all investments with an original maturity date greater than three months as short-term marketable securities in its Consolidated Balance Sheet. As of December 31, 2014, and December 31, 2013, the Company's marketable securities consisted primarily of corporate bonds and other high-quality commercial securities. The weighted average interest rate of investments at December 31, 2014 and 2013, was approximately 0.76% and 0.74%, respectively. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | The Company's cash and investment instruments are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The type of instrument valued based on quoted market prices in active markets primarily includes money market securities. This type of instrument is generally classified within Level 1 of the fair-value hierarchy. The types of instruments valued based on other observable inputs (Level 2 of the fair-value hierarchy) include investment-grade corporate bonds and government, state, municipal and provincial obligations. Such types of investments are valued by using a multi-dimensional relational model, the inputs are primarily benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. |
Inventories [Policy Text Block] | Inventories |
Inventories (which consist of costs associated with the purchases of wafers from domestic and offshore foundries and of packaged components from offshore assembly manufacturers, as well as internal labor and overhead associated with the testing of both wafers and packaged components) are stated at the lower of cost (first-in, first-out) or market. Provisions, when required, are made to reduce excess and obsolete inventories to their estimated net realizable values. | |
Business Combinations [Policy Text Block] | Business Combinations |
The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing at the acquisition date impacting asset valuations and liabilities assumed. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. | |
Goodwill and Intangible Assets [Policy Text Block] | Goodwill and Intangible Assets |
Goodwill and the Company's domain name are evaluated in accordance with Accounting Standards Codification, or ASC, 350-10, Goodwill and Other Intangible Assets, and an impairment analysis is conducted on an annual basis, or sooner if indicators exist for a potential impairment. | |
In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. | |
Employee Benefits Plan [Policy Text Block] | Employee Benefits Plan |
The Company sponsors a 401(k) tax-deferred savings plan for all employees in the United States who meet certain eligibility requirements. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. The Company is not required to contribute; however, from time-to-time the Company will contribute a certain percentage of employee annual salaries on a discretionary basis, not to exceed an established threshold. In 2014 and 2013 the Company provided for a contribution of approximately $1.1 million and $1.1 million, respectively. No employee 401(k) contribution was provided for in 2012. | |
Retirement Benefit Obligations (Pension) [Policy Text Block] | Retirement Benefit Obligations (Pension) |
The Company recognizes the overfunded or underfunded status of a defined benefit pension or postretirement plan as an asset or liability in the accompanying consolidated balance sheets. Actuarial gains and losses are recorded in accumulated other comprehensive income (loss), a component of stockholders’ equity, and are amortized as a component of net periodic cost over the remaining estimated service period of participants. | |
Revenue Recognition [Policy Text Block] | Revenue Recognition |
Product revenues consist of sales to original equipment manufacturers (“OEMs”), merchant power supply manufacturers and distributors. Approximately 75% of the Company's net product sales were made to distributors in 2014. The Company applies the provisions of Accounting Standard Codification (“ASC”) 605-10 (“ASC 605-10”) and all related appropriate guidance. Revenue is recognized when all of the following criteria have been met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the price is fixed or determinable, and (4) collectability is reasonably assured. Customer purchase orders are generally used to determine the existence of an arrangement. Delivery is considered to have occurred when title and risk of loss have transferred to the Company's customer. The Company evaluates whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. With respect to collectability, the Company performs credit checks for new customers and performs ongoing evaluations of its existing customers' financial condition and requires letters of credit whenever deemed necessary. | |
Sales to international OEMs and merchant power supply manufacturers for shipments from the Company's facility outside of the United States are pursuant to “EX Works” ("EXW") shipping terms, meaning that title to the product transfers to the customer upon shipment from the Company's foreign warehouse. Sales to international OEM customers and merchant power supply manufacturers that are shipped from the Company's facility in California are pursuant to “delivered at frontier” (“DAF”) shipping terms. As such, title to the product passes to the customer when the shipment reaches the destination country and revenue is recognized upon the arrival of the product in that country. Shipments to OEMs and merchant power supply manufacturers in the Americas are pursuant to “free on board” (“FOB”) point of origin shipping terms meaning that title is passed to the customer upon shipment. Revenue is recognized upon title transfer for sales to OEMs and merchant power supply manufacturers, assuming all other criteria for revenue recognition are met. | |
Sales to most of the Company's distributors are made under terms allowing certain price adjustments and rights of return on the Company's products held by its distributors. As a result of these rights, the Company defers the recognition of revenue and the costs of revenues derived from these sales until the Company's distributors report that they have sold the Company's products to their customers. The Company's recognition of such distributor revenue is based on point of sale reports received from the distributors, at which time the price is no longer subject to adjustment and is fixed, and the products are no longer subject to return to the Company except pursuant to warranty terms. The gross profit that is deferred as a result of this policy is reflected as “deferred income on sales to distributors” in the accompanying consolidated balance sheets. The total deferred revenue as of December 31, 2014, and December 31, 2013, was approximately $25.0 million and $25.5 million, respectively. The total deferred cost as of December 31, 2014, and December 31, 2013, was approximately $9.8 million and $9.8 million, respectively. | |
Frequently, distributors need to sell at a price lower than the standard distribution price in order to win business. At or soon after the distributor invoices its customer, the distributor submits a “ship and debit” price adjustment claim to the Company to adjust the distributor's cost from the standard price to the pre-approved lower price. After verification by the Company, a credit memo is issued to the distributor for the ship and debit claim. The Company maintains a reserve for unprocessed claims and future ship and debit price adjustments. The reserves appear as a reduction to accounts receivable and deferred income on sales to distributors in the Company's accompanying consolidated balance sheets. To the extent future ship and debit claims significantly exceed amounts estimated, there could be a material impact on the deferred revenue and deferred margin ultimately recognized. To evaluate the adequacy of its reserves, the Company analyzes historical ship and debit payments and levels of inventory in the distributor channels. | |
Sales to certain distributors of the Company are made under terms that do not include rights of return or price concessions after the product is shipped to the distributor. Accordingly, product revenue is recognized upon shipment and title transfer assuming all other revenue recognition criteria are met. | |
Foreign Currency Risk and Foreign Currency Translations [Policy Text Block] | Foreign Currency Risk and Foreign Currency Translation |
As of December 31, 2014, the Company's primary transactional currency was in U.S. dollars; in addition, the Company holds cash in Swiss francs and Euros as a result of its acquisition of Concept. The Company completed the acquisition of Concept, which is located in Biel, Switzerland, in the second quarter of 2012. Included in the assets acquired was cash denominated in Swiss francs and Euros, which will be used to fund operations of the Company's Swiss subsidiary. The functional currency of the Company's Swiss subsidiary is the U.S. dollar. | |
Gains and losses arising from the remeasurement of non-functional currency balances are recorded in ''other income (expense)'' in the accompanying consolidated statements of income (loss). For the years ended December 31, 2014, 2013 and 2012 the Company realized foreign exchange transaction gains (losses) of $0.1 million, $(0.1) million and $(0.6) million, respectively. | |
The functional currencies of the Company's other subsidiaries are the local currencies. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rates as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Cumulative gains and losses from the translation of the foreign subsidiaries' financial statements have been included in stockholders' equity. | |
Warranty [Policy Text Block] | Warranty |
The Company generally warrants that its products will substantially conform to the published specifications for 12 months from the date of shipment. The Company's liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial, and as a result, the Company does not record a specific warranty reserve. | |
Advertising [Policy Text Block] | Advertising |
Advertising costs are expensed as incurred. Advertising costs amounted to $1.5 million, $1.4 million, and $1.1 million, in 2014, 2013 and 2012, respectively. | |
Research and Development [Policy Text Block] | Research and Development |
Research and development costs are expensed as incurred. | |
Income Taxes [Policy Text Block] | Income Taxes |
Income tax expense is an estimate of current income taxes payable or refundable in the current fiscal year based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences and carry-forwards that are recognized for financial reporting and income tax purposes. | |
The Company accounts for income taxes under the provisions of ASC 740. Under the provisions of ASC 740, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, utilizing the tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes valuation allowances to reduce any deferred tax assets to the amount that it estimates will more likely than not be realized based on available evidence and management's judgment. The Company limits the deferred tax assets recognized related to certain officers' compensation to amounts that it estimates will be deductible in future periods based upon Internal Revenue Code Section 162(m). In the event that the Company determines, based on available evidence and management judgment, that all or part of the net deferred tax assets will not be realized in the future, it would record a valuation allowance in the period the determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company's expectations could have a material impact on the Company's results of operations and financial position. | |
The Company engages in qualifying activities for R&D credit purposes. The Tax Increase Prevention Act of 2014 was signed into law on December 19, 2014, to extend the federal research and development credit for 2014. | |
Indemnifications [Policy Text Block] | Indemnifications |
The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (“DSA”). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company's products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (“Customer Indemnification”). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. | |
The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees' development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of December 31, 2014. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnifications. | |
Stock Plans and Share Based Compensation [Abstract] | |
Share-based Compensation [Policy Text Block] | Stock-Based Compensation |
The Company applies the provisions of ASC 718-10. Under the provisions of ASC 718-10, the Company recognizes the fair value of stock-based compensation in financial statements over the requisite service period of the individual grants, which generally equals a four-year vesting period. The Company uses estimates of volatility, expected term, risk-free interest rate, dividend yield and forfeitures in determining the fair value of these awards and the amount of compensation expense to recognize. The Company uses the straight-line method to amortize all stock awards granted over the requisite service period of the award. | |
Determining Fair Value of Stock Options | |
The Company uses the Black-Scholes valuation model for valuing stock option grants using the following assumptions and estimates: | |
Expected Volatility. The Company calculates expected volatility based on the historical price volatility of the Company's stock. | |
Expected Term. The Company utilizes a model which uses historical exercise, cancellation and outstanding option data to calculate the expected term of stock option grants. | |
Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes valuation model on the implied yield available on a U.S. Treasury note with a term approximately equal to the expected term of the underlying grants. | |
Dividend Yield. The dividend yield was calculated by dividing the annual dividend by the average closing price of the Company's common stock on a quarterly basis. | |
Estimated Forfeitures. The Company uses historical data to estimate pre-vesting forfeitures, and records share-based compensation expense only for those awards that are expected to vest. | |
Significant Customers and Export Sales [Abstract] | |
Segment Reporting [Policy Text Block] | The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of analog and mixed-signal ICs and other electronic components and circuitry used in high-voltage power conversion. The Company's chief operating decision maker, the chief executive officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Available-for-sale Securities [Table Text Block] | Amortized cost and estimated fair market value of investments classified as available-for-sale at December 31, 2014, were as follows (in thousands): | |||||||||||||||
Gross Unrealized | Estimated Fair | |||||||||||||||
Amortized Cost | Gains | Losses | Market Value | |||||||||||||
Investments due in 4-12 months: | ||||||||||||||||
Corporate securities | $ | 30,233 | $ | 36 | $ | — | $ | 30,269 | ||||||||
Total | 30,233 | 36 | — | 30,269 | ||||||||||||
Investments due between 12 months and 5-years: | ||||||||||||||||
Corporate securities | 84,259 | 92 | (45 | ) | 84,306 | |||||||||||
Total | 84,259 | 92 | (45 | ) | 84,306 | |||||||||||
Total investment securities | $ | 114,492 | $ | 128 | $ | (45 | ) | $ | 114,575 | |||||||
Amortized cost and estimated fair market value of investments classified as available-for-sale at December 31, 2013, were as follows (in thousands): | ||||||||||||||||
Gross Unrealized | Estimated Fair | |||||||||||||||
Amortized Cost | Gains | Losses | Market Value | |||||||||||||
Investments due in less than 3 months: | ||||||||||||||||
Commercial paper | $ | 3,098 | $ | 1 | $ | — | $ | 3,099 | ||||||||
Total | 3,098 | 1 | — | 3,099 | ||||||||||||
Investments due in 4-12 months: | ||||||||||||||||
Corporate securities | 6,007 | 33 | — | 6,040 | ||||||||||||
Total | 6,007 | 33 | — | 6,040 | ||||||||||||
Investments due between 12 months and 5-years: | ||||||||||||||||
Corporate securities | 102,963 | 202 | (26 | ) | 103,139 | |||||||||||
Total | 102,963 | 202 | (26 | ) | 103,139 | |||||||||||
Total investment securities | $ | 112,068 | $ | 236 | $ | (26 | ) | $ | 112,278 | |||||||
Schedule of Inventories [Table Text Block] | Inventories consist of the following (in thousands): | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 21,127 | $ | 8,221 | ||||||||||||
Work-in-process | 14,643 | 13,216 | ||||||||||||||
Finished goods | 28,255 | 20,798 | ||||||||||||||
Total | $ | 64,025 | $ | 42,235 | ||||||||||||
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable (in thousands): | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Accounts receivable trade | $ | 38,344 | $ | 42,410 | ||||||||||||
Accrued ship and debit and rebate claims | (27,967 | ) | (29,901 | ) | ||||||||||||
Allowance for doubtful accounts | (191 | ) | (120 | ) | ||||||||||||
Total | $ | 10,186 | $ | 12,389 | ||||||||||||
Schedule of Prepaid Expenses and Other Current Assets [Table Text Block] | Prepaid Expenses and Other Current Assets (in thousands): | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Prepaid legal fees | $ | 1,506 | $ | 6,267 | ||||||||||||
Loan to Cambridge Semiconductor (Note 11) | 6,600 | — | ||||||||||||||
Advance to suppliers | 800 | 757 | ||||||||||||||
Prepaid income tax | 3,208 | 7,521 | ||||||||||||||
Prepaid maintenance agreements | 1,023 | 947 | ||||||||||||||
Interest receivable | 664 | 519 | ||||||||||||||
Other | 2,578 | 2,621 | ||||||||||||||
Total | $ | 16,379 | $ | 18,632 | ||||||||||||
Schedule of Property and Equipment [Table Text Block] | Property and equipment consist of the following (in thousands): | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Land | $ | 16,754 | $ | 16,754 | ||||||||||||
Construction-in-progress | 8,068 | 8,003 | ||||||||||||||
Building and improvements | 44,794 | 43,641 | ||||||||||||||
Machinery and equipment | 124,138 | 111,314 | ||||||||||||||
Computer software and hardware and office furniture and fixtures | 37,867 | 34,327 | ||||||||||||||
231,621 | 214,039 | |||||||||||||||
Accumulated depreciation | (135,798 | ) | (123,898 | ) | ||||||||||||
Total | $ | 95,823 | $ | 90,141 | ||||||||||||
Building and improvements | 4-40 years | |||||||||||||||
Machinery and equipment | 2-8 years | |||||||||||||||
Computer software and hardware and office furniture and fixtures | 4-5 years | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive income (loss) for three years ended December 31, 2014 (in thousands): | |||||||||||||||
Unrealized Gains and Losses on Available-for-Sale Securities | Defined Benefit Pension Items | Foreign Currency Items | Total | |||||||||||||
Balance at January 1, 2012 | $ | — | $ | — | $ | 50 | $ | 50 | ||||||||
Other comprehensive income (loss) before reclassifications | 138 | (560 | ) | 79 | (343 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | — | ||||||||||||
Other comprehensive income (loss) | 138 | (560 | ) | 79 | (343 | ) | ||||||||||
Balance at December 31, 2012 | 138 | (560 | ) | 129 | (293 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 72 | (277 | ) | (29 | ) | (234 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 57 | -1 | — | 57 | |||||||||||
Other comprehensive income (loss) | 72 | (220 | ) | (29 | ) | (177 | ) | |||||||||
Balance at December 31, 2013 | 210 | (780 | ) | 100 | (470 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | (127 | ) | (538 | ) | (79 | ) | (744 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 78 | -1 | — | 78 | |||||||||||
Other comprehensive income (loss) | (127 | ) | (460 | ) | (79 | ) | (666 | ) | ||||||||
Balance at December 31, 2014 | $ | 83 | $ | (1,240 | ) | $ | 21 | $ | (1,136 | ) | ||||||
____________________________ |
STOCK_PLANS_AND_SHARE_BASED_CO1
STOCK PLANS AND SHARE BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Summary of stock-based compensation expense [Table Text Block] | The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the twelve months ended December 31, 2014, 2013 and 2012 (in thousands). | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cost of revenues | $ | 879 | $ | 1,074 | $ | 1,058 | |||||||
Research and development | 4,784 | 5,746 | 5,503 | ||||||||||
Sales and marketing | 3,540 | 3,642 | 3,317 | ||||||||||
General and administrative | 5,079 | 6,023 | 4,346 | ||||||||||
Total stock-based compensation expense | $ | 14,282 | $ | 16,485 | $ | 14,224 | |||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | The following table summarizes total compensation expense related to unvested awards not yet recognized, net of expected forfeitures, and the weighted average period over which it is expected to be recognized as of December 31, 2014. | ||||||||||||
31-Dec-14 | |||||||||||||
Unrecognized | Weighted | ||||||||||||
Compensation | Average | ||||||||||||
Expense for Unvested | Remaining | ||||||||||||
Awards | Recognition | ||||||||||||
Period | |||||||||||||
(In thousands) | (In years) | ||||||||||||
Options | $ | 786 | 1.1 | ||||||||||
Long-term performance-based awards | 1,255 | 2 | |||||||||||
Restricted stock units | 20,285 | 2.3 | |||||||||||
Purchase plan | 144 | 0.5 | |||||||||||
Total unrecognized compensation expense | $ | 22,470 | |||||||||||
Fair value assumptions for stock options granted [Table Text Block] | The fair value of stock options granted is established on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used during the three years ended December 31, 2014, 2013 and 2012: | ||||||||||||
2014* | 2013* | 2012 | |||||||||||
Risk-free interest rates | —% | —% | 0.87% - 1.01% | ||||||||||
Expected volatility rates | —% | —% | 45% | ||||||||||
Expected dividend yield | —% | —% | 0.51% - 0.57% | ||||||||||
Expected term of stock options (in years) | 0 | 0 | 6.4 | ||||||||||
Weighted-average grant date fair value of options granted | $0.00 | $0.00 | $18.20 | ||||||||||
Fair value assumptions for employees' stock purchase rights under the Purchase Plan [Table Text Block] | The fair value of employees’ stock purchase rights under the Purchase Plan was estimated using the Black-Scholes model with the following weighted-average assumptions used during the three years ended December 31, 2014, 2013 and 2012: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rates | 0.05% - 0.07% | 0.08% - 0.11% | 0.09% - 0.14% | ||||||||||
Expected volatility rates | 30% - 48% | 33% - 37% | 34% - 48% | ||||||||||
Expected dividend yield | 0.66% - 0.85% | 0.62% - 0.80% | 0.54% - 0.57% | ||||||||||
Expected term of purchase right (years) | 0.5 | 0.5 | 0.5 | ||||||||||
Weighted-average estimated fair value of purchase rights | $14.40 | $11.01 | $9.40 | ||||||||||
Summary of option activity under the Plans [Table Text Block] | A summary of stock option activity under the Plans, excluding performance-based shares and restricted stock units, as of December 31, 2014, and changes during three years then ended, is presented below: | ||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||||
Exercise | Remaining | (in thousands) | |||||||||||
Price | Contractual | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding at January 1, 2012 | 3,557 | $ | 24.01 | ||||||||||
Granted | 135 | $ | 42.66 | ||||||||||
Exercised | (870 | ) | $ | 20.48 | |||||||||
Forfeited or expired | (5 | ) | $ | 21.1 | |||||||||
Outstanding at December 31, 2012 | 2,817 | $ | 26 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (1,108 | ) | $ | 23.72 | |||||||||
Forfeited or expired | (18 | ) | $ | 39.7 | |||||||||
Outstanding at December 31, 2013 | 1,691 | $ | 27.34 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (347 | ) | $ | 27.64 | |||||||||
Forfeited or expired | — | $ | — | ||||||||||
Outstanding at December 31, 2014 | 1,344 | $ | 27.27 | 3.56 | $ | 32,905 | |||||||
Exercisable at December 31, 2014 | 1,292 | $ | 26.69 | 3.42 | $ | 32,366 | |||||||
Vested and expected to vest at December 31, 2014 | 1,343 | $ | 27.25 | 3.56 | $ | 32,889 | |||||||
Summary of stock options outstanding by exercise price range [Table Text Block] | The following table summarizes the stock options outstanding at December 31, 2014: | ||||||||||||
Options Outstanding | Options Vested and Exercisable | ||||||||||||
Exercise | Number Outstanding (in thousands) | Weighted | Weighted | Number Vested (in thousands) | Weighted | ||||||||
Price | Average | Average | Average | ||||||||||
Remaining | Exercise | Exercise | |||||||||||
Contractual Term (in years) | Price | Price | |||||||||||
$17.18 - $21.00 | 124 | 3.08 | $19.08 | 124 | $19.08 | ||||||||
$21.14 - $21.14 | 268 | 4.31 | $21.14 | 268 | $21.14 | ||||||||
$22.18 - $24.21 | 93 | 2.45 | $23.68 | 93 | $23.68 | ||||||||
$25.25 - $25.25 | 243 | 2.62 | $25.25 | 243 | $25.25 | ||||||||
$25.48 - $26.49 | 40 | 2.02 | $25.73 | 40 | $25.73 | ||||||||
$26.75 - $26.75 | 212 | 1.1 | $26.75 | 212 | $26.75 | ||||||||
$26.86 - $36.95 | 150 | 4.85 | $33.10 | 140 | $32.89 | ||||||||
$37.96 - $38.07 | 85 | 5.29 | $38.06 | 85 | $38.06 | ||||||||
$39.49 - $39.49 | 48 | 6.5 | $39.49 | 48 | $39.49 | ||||||||
$42.88 - $42.88 | 81 | 7.2 | $42.88 | 39 | $42.88 | ||||||||
$17.18 - $42.88 | 1,344 | 3.56 | $27.27 | 1,292 | $26.69 | ||||||||
Summary of restricted stock units outstanding [Table Text Block] | A summary of RSUs outstanding as of December 31, 2014, and activity during the three years then ended, is as follows: | ||||||||||||
Shares | Weighted- Average Grant Date Fair Value Per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||
Outstanding at January 1, 2012 | 458 | $ | 36.08 | ||||||||||
Granted | 293 | $ | 41.06 | ||||||||||
Vested | (152 | ) | $ | 36.48 | |||||||||
Forfeited | (26 | ) | $ | 36.92 | |||||||||
Outstanding at December 31, 2012 | 573 | $ | 38.21 | ||||||||||
Granted | 386 | $ | 39.09 | ||||||||||
Vested | (195 | ) | $ | 37.92 | |||||||||
Forfeited | (50 | ) | $ | 39.5 | |||||||||
Outstanding at December 31, 2013 | 714 | $ | 38.97 | ||||||||||
Granted | 281 | $ | 51.12 | ||||||||||
Vested | (267 | ) | $ | 38.57 | |||||||||
Forfeited | (36 | ) | $ | 42.74 | |||||||||
Outstanding at December 31, 2014 | 692 | $ | 43.86 | 1.28 | $ | 35,821 | |||||||
Outstanding and expected to vest at December 31, 2014 | 645 | 1.22 | $ | 33,364 | |||||||||
Performance Based Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Summary of performance-based awards outstanding [Table Text Block] | A summary of performance-based awards outstanding as of December 31, 2014, and activity during the three years then ended, is presented below: | ||||||||||||
Shares | Weighted- Average Grant Date Fair Value Per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||
Outstanding at January 1, 2012 | — | $ | — | ||||||||||
Granted | 102 | $ | 37.6 | ||||||||||
Vested | — | $ | — | ||||||||||
Forfeited or canceled | — | $ | — | ||||||||||
Outstanding at December 31, 2012 | 102 | $ | 37.6 | ||||||||||
Granted | 102 | $ | 38.68 | ||||||||||
Vested | (54 | ) | $ | 37.6 | |||||||||
Change in units due to performance achievement for PSUs not earned | (48 | ) | $ | 37.6 | |||||||||
Forfeited or canceled | (2 | ) | $ | 41.79 | |||||||||
Outstanding at December 31, 2013 | 100 | $ | 38.48 | ||||||||||
Granted | 83 | $ | 53.93 | ||||||||||
Vested | (83 | ) | $ | 38.48 | |||||||||
Change in units due to performance achievement for PSUs not earned | (17 | ) | $ | 38.48 | |||||||||
Forfeited or canceled | (83 | ) | $ | 53.93 | |||||||||
Outstanding at December 31, 2014 | — | $ | — | 0 | $ | — | |||||||
Outstanding and expected to vest at December 31, 2014 | — | 0 | $ | — | |||||||||
Long-Term Performance-based Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Summary of performance-based awards outstanding [Table Text Block] | A summary of long-term performance-based awards outstanding as of December 31, 2014, and activity during the year then ended, is presented below: | ||||||||||||
Shares | Weighted- Average Grant Date Fair Value Per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (in years) | (in thousands) | |||||||||||
Outstanding at December 31, 2013 | — | $ | — | ||||||||||
Granted | 61 | $ | 55.51 | ||||||||||
Vested | — | $ | — | ||||||||||
Forfeited or canceled | — | $ | — | ||||||||||
Outstanding at December 31, 2014 | 61 | $ | 55.51 | 2 | $ | 3,161 | |||||||
Outstanding and expected to vest at December 31, 2014 | 37 | 2 | $ | 1,928 | |||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value Of Marketable Securities and Investments [Table Text Block] | The fair value hierarchy of the Company's short-term marketable securities at December 31, 2014, and December 31, 2013, was as follows (in thousands): | ||||||||||||
Fair Value Measurement at | |||||||||||||
December 31, 2014 | |||||||||||||
Description | December 31, 2014 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | ||||||||||
Money market funds | $ | 3,370 | $ | 3,370 | $ | — | |||||||
Corporate securities | 114,575 | — | 114,575 | ||||||||||
Total | $ | 117,945 | $ | 3,370 | $ | 114,575 | |||||||
Fair Value Measurement at | |||||||||||||
December 31, 2013 | |||||||||||||
Description | December 31, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | ||||||||||
Commercial paper | $ | 3,099 | $ | — | $ | 3,099 | |||||||
Money market funds | 17,492 | 17,492 | — | ||||||||||
Corporate securities | 109,179 | — | 109,179 | ||||||||||
Total | $ | 129,770 | $ | 17,492 | $ | 112,278 | |||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of intangible assets [Table Text Block] | The Company does not believe there is any significant residual value associated with the following intangible assets: | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Domain name | $ | 1,261 | $ | — | $ | 1,261 | $ | — | $ | — | $ | — | ||||||||||||
In-process research and development | 4,690 | — | 4,690 | 4,690 | — | 4,690 | ||||||||||||||||||
Technology licenses | 3,000 | (2,625 | ) | 375 | 3,000 | (2,325 | ) | 675 | ||||||||||||||||
Patent rights | 1,949 | (1,949 | ) | — | 1,949 | (1,949 | ) | — | ||||||||||||||||
Developed technology | 26,670 | (7,828 | ) | 18,842 | 26,670 | (5,247 | ) | 21,423 | ||||||||||||||||
Customer relationships | 17,610 | (7,254 | ) | 10,356 | 17,610 | (4,664 | ) | 12,946 | ||||||||||||||||
Trade name | 3,600 | (3,600 | ) | — | 3,600 | (3,000 | ) | 600 | ||||||||||||||||
Total intangible assets | $ | 58,780 | $ | (23,256 | ) | $ | 35,524 | $ | 57,519 | $ | (17,185 | ) | $ | 40,334 | ||||||||||
Schedule of expected amortization expense [Table Text Block] | The estimated future amortization expense related to definite-lived intangible assets at December 31, 2014, is as follows: | |||||||||||||||||||||||
Fiscal Year | Estimated | |||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2015 | $ | 5,009 | ||||||||||||||||||||||
2016 | 4,394 | |||||||||||||||||||||||
2017 | 3,994 | |||||||||||||||||||||||
2018 | 3,746 | |||||||||||||||||||||||
2019 | 3,424 | |||||||||||||||||||||||
Thereafter | 9,006 | |||||||||||||||||||||||
Total (1) | $ | 29,573 | ||||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
-1 | The total above excludes $4.7 million of in-process research and development which will be amortized upon completion of development over the estimated useful life of the technology. |
SIGNIFICANT_CUSTOMERS_AND_EXPO1
SIGNIFICANT CUSTOMERS AND EXPORT SALES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
Revenue from External Customers by End Markets Served [Table Text Block] | The table below provides the percentage of net sales activity by end markets served on a comparative basis for all periods: | ||||||||
Year Ended December 31, | |||||||||
End Market | 2014 | 2013 | 2012 | ||||||
Communications | 18 | % | 21 | % | 24 | % | |||
Computer | 10 | % | 10 | % | 12 | % | |||
Consumer | 37 | % | 35 | % | 36 | % | |||
Industrial electronics | 35 | % | 34 | % | 28 | % | |||
Customers accounted for 10% or more of total net revenues [Table Text Block] | The following customers each accounted for 10% or more of total net revenues: | ||||||||
Year Ended December 31, | |||||||||
Customer | 2014 | 2013 | 2012 | ||||||
Avnet | 19 | % | 19 | % | 20 | % | |||
ATM Electronic Corporation | * | * | 12 | % | |||||
Customers representing 10% or more of accounts receivable [Table Text Block] | The following customers each represented 10% or more of accounts receivable: | ||||||||
Customer | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Avnet | 22 | % | 21 | % | |||||
ATM Electronic Corporation | * | 17 | % | ||||||
Burnon International Ltd. | 11 | % | * | ||||||
___________________________ | |||||||||
* Total customer accounts receivable was less than 10% | |||||||||
International sales [Table Text Block] | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Hong Kong/China | 47 | % | 47 | % | 45 | % | |||
Taiwan | 15 | % | 15 | % | 17 | % | |||
Korea | 11 | % | 11 | % | 12 | % | |||
Western Europe (excluding Germany) | 11 | % | 11 | % | 10 | % | |||
Japan | 5 | % | 5 | % | 6 | % | |||
Singapore | 1 | % | 2 | % | 2 | % | |||
Germany | 2 | % | 2 | % | 1 | % | |||
Other | 3 | % | 2 | % | 2 | % | |||
Total foreign revenue | 95 | % | 95 | % | 95 | % | |||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings per share calculation [Table Text Block] | A summary of the earnings (loss) per share calculation is as follows (in thousands, except per share amounts): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic earnings (loss) per share: | ||||||||||||
Net income (loss) | $ | 59,544 | $ | 57,266 | $ | (34,404 | ) | |||||
Weighted-average common shares | 29,976 | 29,421 | 28,636 | |||||||||
Basic earnings (loss) per share | $ | 1.99 | $ | 1.95 | $ | (1.20 | ) | |||||
Diluted earnings (loss) per share (1): | ||||||||||||
Net income (loss) | $ | 59,544 | $ | 57,266 | $ | (34,404 | ) | |||||
Weighted-average common shares | 29,976 | 29,421 | 28,636 | |||||||||
Effect of dilutive securities: | ||||||||||||
Employee stock plans | 853 | 999 | — | |||||||||
Diluted weighted-average common shares | 30,829 | 30,420 | 28,636 | |||||||||
Diluted earnings (loss) per share | $ | 1.93 | $ | 1.88 | $ | (1.20 | ) | |||||
_______________ | ||||||||||||
-1 | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards underlying the 2014 awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included the shares underlying the 2013 and 2012 awards in the respective year calculations, as those shares were contingently issuable upon the satisfaction of the annual targets consisting of net revenue, non-GAAP operating earnings and achievement of strategic goals as of the end of the periods. |
PROVISION_FOR_INCOME_TAXES_Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
U.S. and foreign components of income before income taxes [Table Text Block] | U.S. and foreign components of income before income taxes were (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. operations | $ | (5,064 | ) | $ | 1,936 | $ | (36,178 | ) | ||||
Foreign operations | 61,878 | 53,491 | 15,396 | |||||||||
Total pretax income (loss) | $ | 56,814 | $ | 55,427 | $ | (20,782 | ) | |||||
Components of provision for income taxes [Table Text Block] | The components of the provision for (benefit from) income taxes are as follows (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current provision (benefit): | ||||||||||||
Federal | $ | (1,234 | ) | $ | (558 | ) | $ | 9,813 | ||||
State | (137 | ) | 2 | (2,083 | ) | |||||||
Foreign | 3,094 | 3,049 | 1,892 | |||||||||
1,723 | 2,493 | 9,622 | ||||||||||
Deferred provision (benefit): | ||||||||||||
Federal | (3,279 | ) | (3,633 | ) | 2,647 | |||||||
State | (284 | ) | — | 3,109 | ||||||||
Foreign | (890 | ) | (699 | ) | (1,756 | ) | ||||||
(4,453 | ) | (4,332 | ) | 4,000 | ||||||||
Total | $ | (2,730 | ) | $ | (1,839 | ) | $ | 13,622 | ||||
Effective income tax rate reconciliation [Table Text Block] | The provision for (benefit from) income taxes differs from the amount, which would result by applying the applicable federal income-tax rate to income before provision for (benefit from) income taxes, as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision computed at Federal statutory rate | 35.00% | 35.00% | 35.00% | |||||||||
State tax provision, net of Federal benefit | — | — | 8.9 | |||||||||
Business tax credits | -5.5 | -8.1 | 4.9 | |||||||||
Stock-based compensation | -2.9 | -2.8 | 2.5 | |||||||||
Foreign income taxed at different rate | -28.6 | -29.5 | 25.9 | |||||||||
IRS audit settlement | -5.8 | — | -87.2 | |||||||||
Valuation allowance | 2 | -0.1 | -48.4 | |||||||||
Other | 1 | 2.2 | -7.2 | |||||||||
Total | -4.80% | -3.30% | -65.60% | |||||||||
Components of net deferred income tax asset [Table Text Block] | The components of the net deferred income tax asset (liabilities) were as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Other reserves and accruals | $ | 3,928 | $ | 6,893 | ||||||||
Tax credit carry-forwards | 19,602 | 12,453 | ||||||||||
Stock compensation | 5,429 | 5,964 | ||||||||||
Capital losses | 11,401 | 10,307 | ||||||||||
Net operating loss | 3,680 | 1,014 | ||||||||||
Valuation allowance | (25,828 | ) | (19,271 | ) | ||||||||
18,212 | 17,360 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | (3,320 | ) | (4,226 | ) | ||||||||
Acquired intangibles | (3,502 | ) | (4,303 | ) | ||||||||
Unremitted earnings | (5,182 | ) | (2,432 | ) | ||||||||
Other | (1,072 | ) | (1,107 | ) | ||||||||
(13,076 | ) | (12,068 | ) | |||||||||
Net deferred tax asset | $ | 5,136 | $ | 5,292 | ||||||||
Unrecognized tax benefits rollforward [Table Text Block] | The Company applies the provisions of ASC 740-10, relating to accounting for uncertain income taxes. | |||||||||||
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (in thousands): | ||||||||||||
Unrecognized Tax Benefits Balance at January 1, 2012 | $ | 34,855 | ||||||||||
Gross Increases for Tax Positions of Current Year | 1,110 | |||||||||||
Gross Increases for Tax Positions of Prior Years | 9,344 | |||||||||||
Settlements | (34,496 | ) | ||||||||||
Lapse of Statute of Limitations | — | |||||||||||
Unrecognized Tax Benefits Balance at December 31, 2012 | 10,813 | |||||||||||
Gross Increases for Tax Positions of Current Year | 1,881 | |||||||||||
Gross Increase for Tax Positions of Prior Years | — | |||||||||||
Settlements | — | |||||||||||
Lapse of Statute of Limitations | — | |||||||||||
Unrecognized Tax Benefits Balance at December 31, 2013 | 12,694 | |||||||||||
Gross Increases for Tax Positions of Current Year | 2,117 | |||||||||||
Gross Increases for Tax Positions of Prior Years | 710 | |||||||||||
Settlements | (4,361 | ) | ||||||||||
Lapse of Statute of Limitations | — | |||||||||||
Unrecognized Tax Benefits Balance at December 31, 2014 | $ | 11,160 | ||||||||||
COMMITMENTS_Tables
COMMITMENTS (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under all non-cancelable operating lease agreements as of December 31, 2014, are as follows (in thousands): | |||
Fiscal Year | ||||
2015 | $ | 1,485 | ||
2016 | 1,082 | |||
2017 | 887 | |||
2018 | 966 | |||
2019 | 412 | |||
Thereafter | — | |||
Total minimum lease payments | $ | 4,832 | ||
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the purchase price and estimated fair values of the assets acquired and the liabilities assumed as of May 1, 2012, the completion of the acquisition of Concept ("Closing Date"). | ||||||
Total Amount | |||||||
Assets Acquired | (in thousands) | ||||||
Cash | $ | 14,933 | |||||
Accounts receivable | 3,220 | ||||||
Inventories | 10,631 | ||||||
Prepaid expenses and other current assets | 2,777 | ||||||
Property and equipment, net | 2,310 | ||||||
Intangible assets: | |||||||
Developed technology | 23,750 | ||||||
Trade name | 3,600 | ||||||
Customer relationships | 16,700 | ||||||
Goodwill | 65,813 | ||||||
Total assets acquired | 143,734 | ||||||
Liabilities assumed | |||||||
Current liabilities | 4,587 | ||||||
Deferred tax liabilities | 7,860 | ||||||
Other liabilities | 634 | ||||||
Total liabilities assumed | 13,081 | ||||||
Total purchase price | $ | 130,653 | |||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table represents details of the purchased intangible assets as part of the acquisition: | ||||||
Fair Value Amount | Estimated Useful Life | ||||||
(in thousands) | (in years) | ||||||
Developed technology | $ | 23,750 | 12-Apr | ||||
Trade name | 3,600 | 2 | |||||
Customer relationships | 16,700 | 10 | |||||
Total Concept intangibles | $ | 44,050 | |||||
SELECTED_QUARTERLY_INFORMATION1
SELECTED QUARTERLY INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following tables set forth certain data from the Company's consolidated statements of income for each of the quarters in the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
The unaudited quarterly consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements contained herein and include all adjustments that the Company considers necessary for a fair presentation of such information when read in conjunction with the Company's annual audited consolidated financial statements and notes thereto appearing elsewhere in this report. The operating results for any quarter are not necessarily indicative of the results for any subsequent period or for the entire fiscal year (in thousands, except per share data). | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | |||||||||||||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||||||||||||
Net revenues | $ | 86,595 | $ | 90,144 | $ | 88,985 | $ | 83,073 | $ | 90,412 | $ | 91,715 | $ | 87,922 | $ | 77,040 | ||||||||||||||||
Gross profit | $ | 45,805 | $ | 49,052 | $ | 48,736 | $ | 45,977 | $ | 48,391 | $ | 48,774 | $ | 46,207 | $ | 39,864 | ||||||||||||||||
Net income | $ | 14,354 | $ | 16,111 | $ | 16,716 | $ | 12,363 | $ | 16,037 | $ | 16,654 | $ | 13,672 | $ | 10,903 | ||||||||||||||||
Earnings per share | ||||||||||||||||||||||||||||||||
Basic | $ | 0.49 | $ | 0.54 | $ | 0.55 | $ | 0.41 | $ | 0.54 | $ | 0.56 | $ | 0.47 | $ | 0.38 | ||||||||||||||||
Diluted | $ | 0.48 | $ | 0.52 | $ | 0.54 | $ | 0.4 | $ | 0.52 | $ | 0.54 | $ | 0.45 | $ | 0.37 | ||||||||||||||||
Shares used in per share calculation | ||||||||||||||||||||||||||||||||
Basic | 29,350 | 30,013 | 30,310 | 30,239 | 29,974 | 29,762 | 29,178 | 28,754 | ||||||||||||||||||||||||
Diluted | 30,051 | 30,757 | 31,110 | 31,167 | 30,924 | 30,652 | 30,158 | 29,783 | ||||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration Risk [Line Items] | |||||||||||||||
Weighted Average Interest Rate on Investments | 0.76% | 0.74% | 0.76% | 0.74% | |||||||||||
Common stock dividends declared | $0.12 | $0.12 | $0.10 | $0.10 | $0.08 | $0.08 | $0.08 | $0.08 | $0.05 | $0.05 | $0.05 | $0.05 | |||
Payments of dividends | $3,500,000 | $3,600,000 | $3,000,000 | $3,000,000 | $2,400,000 | $2,400,000 | $2,300,000 | $2,300,000 | $1,400,000 | $1,400,000 | $1,400,000 | $1,400,000 | $13,165,000 | $9,446,000 | $5,755,000 |
Deferred Revenue [Abstract] | |||||||||||||||
Sell-through deferred revenue | 25,000,000 | 25,500,000 | 25,000,000 | 25,500,000 | |||||||||||
Sell-through deferred cost | 9,800,000 | 9,800,000 | 9,800,000 | 9,800,000 | |||||||||||
Inventories [Abstract] | |||||||||||||||
Raw materials | 21,127,000 | 8,221,000 | 21,127,000 | 8,221,000 | |||||||||||
Work-in-process | 14,643,000 | 13,216,000 | 14,643,000 | 13,216,000 | |||||||||||
Finished goods | 28,255,000 | 20,798,000 | 28,255,000 | 20,798,000 | |||||||||||
Total | 64,025,000 | 42,235,000 | 64,025,000 | 42,235,000 | |||||||||||
Accounts Receivable [Abstract] | |||||||||||||||
Accounts receivable trade | 38,344,000 | 42,410,000 | 38,344,000 | 42,410,000 | |||||||||||
Accrued ship and debit and rebate claims | -27,967,000 | -29,901,000 | -27,967,000 | -29,901,000 | |||||||||||
Allowance for doubtful accounts | -191,000 | -120,000 | -191,000 | -120,000 | |||||||||||
Total | 10,186,000 | 12,389,000 | 10,186,000 | 12,389,000 | |||||||||||
Prepaid Expenses and Other Current Assets [Abstract] | |||||||||||||||
Prepaid legal fees | 1,506,000 | 6,267,000 | 1,506,000 | 6,267,000 | |||||||||||
Loan to Cambridge Semiconductor | 6,600,000 | 0 | 6,600,000 | 0 | |||||||||||
Advance to supplier | 800,000 | 757,000 | 800,000 | 757,000 | |||||||||||
Prepaid income tax | 3,208,000 | 7,521,000 | 3,208,000 | 7,521,000 | |||||||||||
Prepaid maintenance agreements | 1,023,000 | 947,000 | 1,023,000 | 947,000 | |||||||||||
Interest receivable | 664,000 | 519,000 | 664,000 | 519,000 | |||||||||||
Other | 2,578,000 | 2,621,000 | 2,578,000 | 2,621,000 | |||||||||||
Total | 16,379,000 | 18,632,000 | 16,379,000 | 18,632,000 | |||||||||||
Other Assets [Abstract] | |||||||||||||||
Total | 4,243,000 | 3,476,000 | 4,243,000 | 3,476,000 | |||||||||||
Employee Benefits Plan [Abstract] | |||||||||||||||
Discretionary company contribution to 401(k) | 1,100,000 | 1,100,000 | |||||||||||||
Foreign Exchange Transactions [Abstract] | |||||||||||||||
Foreign exchange transaction gain | 100,000 | -100,000 | -600,000 | ||||||||||||
Warranty [Abstract] | |||||||||||||||
Product warranty period | 12 months | ||||||||||||||
Advertising [Abstract] | |||||||||||||||
Advertising costs | 1,500,000 | 1,400,000 | 1,100,000 | ||||||||||||
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Distributors [Member] | |||||||||||||||
Deferred Revenue [Abstract] | |||||||||||||||
Concentration risk percentage | 75.00% | ||||||||||||||
State and Local Jurisdiction [Member] | |||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||
Income tax liability (refund) adjustment from settlement with taxing authority | 4,100,000 | ||||||||||||||
2007 through 2009 [Member] | Internal Revenue Service (IRS) [Member] | |||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||
Foreign earnings repatriated | 5,000,000 | ||||||||||||||
2007 through 2009 [Member] | Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | |||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||
Income tax liability (refund) adjustment from settlement with taxing authority | -2,800,000 | -2,800,000 | |||||||||||||
2007 through 2009 [Member] | Internal Revenue Service (IRS) [Member] | State and Local Jurisdiction [Member] | |||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||
Income tax liability (refund) adjustment from settlement with taxing authority | ($500,000) | ($500,000) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Available-for-sale Investments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $114,492 | $112,068 |
Gross unrealized loss | 45 | 26 |
Gross unrealized gains | 128 | 236 |
Estimated fair market value | 114,575 | 112,278 |
Cash Equivalents due in less than 3 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 3,098 | |
Gross unrealized loss | 0 | |
Gross unrealized gains | 1 | |
Estimated fair market value | 3,099 | |
Investments due in 4-12 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 30,233 | 6,007 |
Gross unrealized loss | 0 | 0 |
Gross unrealized gains | 36 | 33 |
Estimated fair market value | 30,269 | 6,040 |
Investments due in more than 12 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 84,259 | 102,963 |
Gross unrealized loss | 45 | 26 |
Gross unrealized gains | 92 | 202 |
Estimated fair market value | 84,306 | 103,139 |
Commercial paper [Member] | Cash Equivalents due in less than 3 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 3,098 | |
Gross unrealized loss | 0 | |
Gross unrealized gains | 1 | |
Estimated fair market value | 3,099 | |
Corporate securities [Member] | Investments due in 4-12 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 30,233 | 6,007 |
Gross unrealized loss | 0 | 0 |
Gross unrealized gains | 36 | 33 |
Estimated fair market value | 30,269 | 6,040 |
Corporate securities [Member] | Investments due in more than 12 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 84,259 | 102,963 |
Gross unrealized loss | 45 | 26 |
Gross unrealized gains | 92 | 202 |
Estimated fair market value | $84,306 | $103,139 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $15,884 | $16,088 | $15,256 |
Property and equipment [Abstract] | |||
Gross | 231,621 | 214,039 | |
Accumulated depreciation | -135,798 | -123,898 | |
Total | 95,823 | 90,141 | |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | United States | |||
Property and equipment [Abstract] | |||
Gross | 140,000 | 134,000 | 126,000 |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | THAILAND | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk percentage | 13.00% | ||
Property and Equipment [Member] | Geographic Concentration Risk [Member] | No Countries [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | |
Land [Member] | |||
Property and equipment [Abstract] | |||
Gross | 16,754 | 16,754 | |
Construction-in-Progress [Member] | |||
Property and equipment [Abstract] | |||
Gross | 8,068 | 8,003 | |
Building and Improvements [Member] | |||
Property and equipment [Abstract] | |||
Gross | 44,794 | 43,641 | |
Machinery and Equipment [Member] | |||
Property and equipment [Abstract] | |||
Gross | 124,138 | 111,314 | |
Computer software and hardware and office furniture and fixtures [Member] | |||
Property and equipment [Abstract] | |||
Gross | $37,867 | $34,327 | |
Minimum [Member] | Building and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 4 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 2 years | ||
Minimum [Member] | Computer software and hardware and office furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 4 years | ||
Maximum [Member] | Building and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 40 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 8 years | ||
Maximum [Member] | Computer software and hardware and office furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 5 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | ($470) | ($293) | $50 | ||
Other comprehensive income (loss) before reclassifications | -744 | -234 | -343 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 78 | 57 | 0 | ||
Total other comprehensive loss | -666 | -177 | -343 | ||
Ending balance | -1,136 | -470 | -293 | ||
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 210 | 138 | 0 | ||
Other comprehensive income (loss) before reclassifications | -127 | 72 | 138 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | ||
Total other comprehensive loss | -127 | 72 | 138 | ||
Ending balance | 83 | 210 | 138 | ||
Defined Benefit Pension Items [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | -780 | -560 | 0 | ||
Other comprehensive income (loss) before reclassifications | -538 | -277 | -560 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 78 | [1] | 57 | [1] | 0 |
Total other comprehensive loss | -460 | -220 | -560 | ||
Ending balance | -1,240 | -780 | -560 | ||
Foreign Currency Items [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 100 | 129 | 50 | ||
Other comprehensive income (loss) before reclassifications | -79 | -29 | 79 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | ||
Total other comprehensive loss | -79 | -29 | 79 | ||
Ending balance | $21 | $100 | $129 | ||
[1] | This component of accumulated other comprehensive income is included in the computation of net periodic pension cost for the years ended December 31, 2014 and December 31, 2013. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Common Stock Repurchases and Common Stock Dividend) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 | Oct. 31, 2012 |
quarters | quarters | quarters | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Cost of shares repurchased | $80,761,000 | $0 | $20,467,000 | |||||||||||||||||
Dividends declared, number Of quarters | 4 | 4 | 4 | |||||||||||||||||
Common stock dividends declared | $0.12 | $0.12 | $0.10 | $0.10 | $0.08 | $0.08 | $0.08 | $0.08 | $0.05 | $0.05 | $0.05 | $0.05 | ||||||||
Payments of dividends | 3,500,000 | 3,600,000 | 3,000,000 | 3,000,000 | 2,400,000 | 2,400,000 | 2,300,000 | 2,300,000 | 1,400,000 | 1,400,000 | 1,400,000 | 1,400,000 | 13,165,000 | 9,446,000 | 5,755,000 | |||||
Common Stock [Member] | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Stock repurchase program authorized amount | 75,000,000 | 75,000,000 | 50,000,000 | |||||||||||||||||
Number of shares repurchased | 1,600 | 0 | 700 | |||||||||||||||||
Cost of shares repurchased | 80,800,000 | 20,500,000 | ||||||||||||||||||
Remaining authorized repurchase amount | $23,700,000 | $23,700,000 | ||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Common stock dividends declared, payable 1st quarter 2015 | $0.12 | |||||||||||||||||||
Common stock dividends declared, payable 2nd quarter 2015 | $0.12 | |||||||||||||||||||
Common stock dividends declared, payable 3rd quarter 2015 | $0.12 | |||||||||||||||||||
Common stock dividends declared, payable 4th quarter 2015 | $0.12 |
STOCK_PLANS_AND_SHARE_BASED_CO2
STOCK PLANS AND SHARE BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock-based compensation plans | 2 | ||
Number of shares available for future issuance | 3,300,000 | ||
Stock-based compensation expense | $14,282,000 | $16,485,000 | $14,224,000 |
2007 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future issuance under stock option and stock purchase plans | 6,521,417 | ||
Nonstatutory Stock Options [Member] | 2007 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price of stock options as percentage of fair market value on date of grant, minimum | 100.00% | ||
Incentive Stock Options [Member] | 2007 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price of stock options as percentage of fair market value on date of grant, minimum | 100.00% | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense | 11,300,000 | 9,800,000 | 7,000,000 |
Restricted Stock Units (RSUs) [Member] | Directors Equity Compensation Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Factor used to determine the number of options/units to be purchased | 100,000 | ||
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of employee's compensation eligible for payroll deductions | 15.00% | ||
Purchase price of the purchase plan as percentage of the lower of the fair market value on the first day of each offering period or on the purchase date | 85.00% | ||
Number of purchase period in each offering period | 1 | ||
Duration of each purchase period in each offering period | 6 months | ||
Shares reserved for issuance | 3,000,000 | ||
Number of shares purchased | 2,700,000 | ||
Common stock reserved for future issuance under stock option and stock purchase plans | 300,000 | ||
Stock-based compensation expense | 1,300,000 | 1,200,000 | 1,100,000 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense | 1,200,000 | 2,300,000 | 4,000,000 |
Stock Options [Member] | 2007 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 48 months | ||
Awards expiration period, maximum | 10 years | ||
Stock Options [Member] | Directors Equity Compensation Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Factor used to determine the number of options/units to be purchased | 100,000 | ||
Stock Options and Restricted Stock Units (RSUs) [Member] | Directors Equity Compensation Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Factor used to determine the number of options/units to be purchased | $100,000 |
STOCK_PLANS_AND_SHARE_BASED_CO3
STOCK PLANS AND SHARE BASED COMPENSATION (Stock-Based Compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $14,282 | $16,485 | $14,224 |
Unrecognized compensation costs | 22,470 | ||
Cost of revenues [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 879 | 1,074 | 1,058 |
Research and Development Expense [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 4,784 | 5,746 | 5,503 |
Selling and Marketing Expense [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 3,540 | 3,642 | 3,317 |
General and Administrative Expense [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 5,079 | 6,023 | 4,346 |
Stock Options [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense | 1,200 | 2,300 | 4,000 |
Unrecognized compensation costs | 786 | ||
Unrecognized compensation costs, period of recognition (in years) | 1 year 1 month 9 days | ||
Performance Based Awards [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 3,200 | 2,100 | |
Long-Term Performance-based Awards [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 500 | ||
Unrecognized compensation costs | 1,255 | ||
Unrecognized compensation costs, period of recognition (in years) | 2 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense | 11,300 | 9,800 | 7,000 |
Unrecognized compensation costs | 20,285 | ||
Unrecognized compensation costs, period of recognition (in years) | 2 years 3 months 14 days | ||
Employee Stock [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 1,300 | 1,200 | 1,100 |
Unrecognized compensation costs | $144 | ||
Unrecognized compensation costs, period of recognition (in years) | 6 months |
STOCK_PLANS_AND_SHARE_BASED_CO4
STOCK PLANS AND SHARE BASED COMPENSATION (Fair Value Assumptions) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Employee Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Risk-free interest rate, minimum | 0.05% | 0.08% | 0.09% | ||
Risk-free interest rate, maximum | 0.07% | 0.11% | 0.14% | ||
Expected volatility rate minimum | 30.00% | 33.00% | 34.00% | ||
Expected volatility rate maximum | 48.00% | 37.00% | 48.00% | ||
Expected dividend yield, minimum | 0.66% | 0.62% | 0.54% | ||
Expected dividend yield, maximum | 0.85% | 0.80% | 0.57% | ||
Expected term of stock options/expected life of purchase right (in years) | 6 months | 6 months | 6 months | ||
Weighted-average estimated fair value of purchase rights | $14.40 | $11.01 | $9.40 | ||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Risk-free interest rate | 0.00% | [1] | 0.00% | [1] | |
Risk-free interest rate, minimum | 0.87% | ||||
Risk-free interest rate, maximum | 1.01% | ||||
Expected volatility rates | 0.00% | [1] | 0.00% | [1] | 45.00% |
Expected dividend yield | 0.00% | [1] | 0.00% | [1] | |
Expected dividend yield, minimum | 0.51% | ||||
Expected dividend yield, maximum | 0.57% | ||||
Expected term of stock options/expected life of purchase right (in years) | 0 years | [1] | 0 years | [1] | 6 years 5 months 9 days |
Weighted-average grant date fair value of options granted/weighted-average estimated fair value of purchase rights (per share) | $0 | [1] | $0 | [1] | $18.20 |
[1] | The Company did not grant stock options in the years ended December 31, 2014 and 2013, and therefore no fair-value assumptions were reported for those periods. |
STOCK_PLANS_AND_SHARE_BASED_CO5
STOCK PLANS AND SHARE BASED COMPENSATION (Option Activity) (Details) (Stock Options [Member], USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options [Member] | |||
Option activity under the Plans | |||
Outstanding, shares, beginning of period | 1,691 | 2,817 | 3,557 |
Outstanding, weighted-average exercise price, beginning of period (per share) | $27.34 | $26 | $24.01 |
Granted, shares | 0 | 0 | 135 |
Granted, weighted-average exercise price (per share) | $0 | $0 | $42.66 |
Exercised, shares | -347 | -1,108 | -870 |
Exercised, weighted-average exercise price (per share) | $27.64 | $23.72 | $20.48 |
Forfeited or expired, shares | 0 | -18 | -5 |
Forfeited or expired, weighted-average exercise price (per share) | $0 | $39.70 | $21.10 |
Outstanding, shares, end of period | 1,344 | 1,691 | 2,817 |
Outstanding, weighted-average exercise price, end of period (per share) | $27.27 | $27.34 | $26 |
Outstanding, weighted-average remaining contractual term (in years) | 3 years 6 months 21 days | ||
Outstanding, aggregate intrinsic value | $32,905,000 | ||
Exercisable, shares | 1,292 | ||
Exercisable, weighted-average exercise price (per share) | $26.69 | ||
Exercisable, weighted-average remaining contractual term (in years) | 3 years 5 months 1 day | ||
Exercisable, aggregate intrinsic value | 32,366,000 | ||
Vested and expected to vest, shares | 1,343 | ||
Vested and expected to vest, weighted-average exercise price (per share) | $27.25 | ||
Vested and expected to vest, weighted-average remaining contractual term (in years) | 3 years 6 months 21 days | ||
Vested and expected to vest, aggregate intrinsic value | 32,889,000 | ||
Total intrinsic value of options exercised | $9,900,000 | $26,500,000 | $14,500,000 |
STOCK_PLANS_AND_SHARE_BASED_CO6
STOCK PLANS AND SHARE BASED COMPENSATION (Options by Exercise Price Range) (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $17.18 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $42.88 |
Options Outstanding, Number Outstanding | 1,344 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 3 years 6 months 21 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $27.27 |
Options Vested and Exercisable, Number Vested | 1,292 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $26.69 |
$17.18 - $21.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $17.18 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $21 |
Options Outstanding, Number Outstanding | 124 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 3 years 0 months 29 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $19.08 |
Options Vested and Exercisable, Number Vested | 124 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $19.08 |
$21.14 - $21.14 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $21.14 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $21.14 |
Options Outstanding, Number Outstanding | 268 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 4 years 3 months 21 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $21.14 |
Options Vested and Exercisable, Number Vested | 268 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $21.14 |
$22.18 - $24.21 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $22.18 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $24.21 |
Options Outstanding, Number Outstanding | 93 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 5 months 12 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $23.68 |
Options Vested and Exercisable, Number Vested | 93 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $23.68 |
$25.25 - $25.25 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $25.25 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $25.25 |
Options Outstanding, Number Outstanding | 243 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 7 months 13 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $25.25 |
Options Vested and Exercisable, Number Vested | 243 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $25.25 |
$25.48 - $26.49 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $25.48 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $26.49 |
Options Outstanding, Number Outstanding | 40 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 0 months 7 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $25.73 |
Options Vested and Exercisable, Number Vested | 40 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $25.73 |
$26.75 - $26.75 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $26.75 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $26.75 |
Options Outstanding, Number Outstanding | 212 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 1 year 1 month 6 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $26.75 |
Options Vested and Exercisable, Number Vested | 212 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $26.75 |
$26.86 - $36.95 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $26.86 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $36.95 |
Options Outstanding, Number Outstanding | 150 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 4 years 10 months 6 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $33.10 |
Options Vested and Exercisable, Number Vested | 140 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $32.89 |
$37.96 - $38.07 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $37.96 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $38.07 |
Options Outstanding, Number Outstanding | 85 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 5 years 3 months 14 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $38.06 |
Options Vested and Exercisable, Number Vested | 85 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $38.06 |
$39.49 - $39.49 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $39.49 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $39.49 |
Options Outstanding, Number Outstanding | 48 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 6 years 6 months |
Options Outstanding, Weighted Average Exercise Price (per share) | $39.49 |
Options Vested and Exercisable, Number Vested | 48 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $39.49 |
$42.88 - $42.88 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | $42.88 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $42.88 |
Options Outstanding, Number Outstanding | 81 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 7 years 2 months 12 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $42.88 |
Options Vested and Exercisable, Number Vested | 39 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $42.88 |
STOCK_PLANS_AND_SHARE_BASED_CO7
STOCK PLANS AND SHARE BASED COMPENSATION (Performance-based Awards and Restricted Stock Units) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Performance Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance-based awards shares released as a percentage of target number, maximum | 0.00% | ||
Number of performance-based awards shares released as a percentage of target number, minimum | 200.00% | ||
Reduction in number of shares available for issuance under the 2007 Plan per award granted | 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward] | |||
Outstanding, shares, beginning of period | 100,000 | 102,000 | 0 |
Granted, shares | 83,000 | 102,000 | 102,000 |
Vested, shares | -83,000 | -54,000 | 0 |
Change in units due to performance achievement for PSUs not earned, shares | -17,000 | -48,000 | |
Forfeited or expired, shares | -83,000 | -2,000 | 0 |
Outstanding, shares, end of period | 0 | 100,000 | 102,000 |
Outstanding, weighted-average grant date fair value per share, beginning of period | $38.48 | $37.60 | $0 |
Granted, weighted-average grant date fair value per share | $53.93 | $38.68 | $37.60 |
Vested, weighted-average grant date fair value per share | $38.48 | $37.60 | $0 |
Change in units due to performance achievement for PSUs not earned, weighted- average grant date fair value per share | $38.48 | $37.60 | |
Forfeited or expired, weighted-average grant date fair value per share | $53.93 | $41.79 | $0 |
Outstanding, weighted-average grant date fair value per share, end of period | $0 | $38.48 | $37.60 |
Outstanding, weighted-average remaining contractual term (in years) | 0 years | ||
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Outstanding, Aggregate Intrinsic Value | $0 | ||
Outstanding and expected to vest, shares | 0 | ||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 0 years | ||
Outstanding and expected to vest, aggregate intrinsic value | 0 | ||
Grant date fair value of awards released | 3,200,000 | 2,000,000 | |
Long-Term Performance-based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in number of shares available for issuance under the 2007 Plan per award granted | 2 | ||
Performance based period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward] | |||
Outstanding, shares, beginning of period | 0 | ||
Granted, shares | 61,000 | ||
Vested, shares | 0 | ||
Forfeited or expired, shares | 0 | ||
Outstanding, shares, end of period | 61,000 | ||
Outstanding, weighted-average grant date fair value per share, beginning of period | $0 | ||
Granted, weighted-average grant date fair value per share | $55.51 | ||
Vested, weighted-average grant date fair value per share | $0 | ||
Forfeited or expired, weighted-average grant date fair value per share | $0 | ||
Outstanding, weighted-average grant date fair value per share, end of period | $55.51 | ||
Outstanding, weighted-average remaining contractual term (in years) | 2 years | ||
Outstanding, aggregate intrinsic value | 3,161,000 | ||
Outstanding and expected to vest, shares | 37,000 | ||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 2 years | ||
Outstanding and expected to vest, aggregate intrinsic value | 1,928,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in number of shares available for issuance under the 2007 Plan per award granted | 2 | ||
Awards vesting period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward] | |||
Outstanding, shares, beginning of period | 714,000 | 573,000 | 458,000 |
Granted, shares | 281,000 | 386,000 | 293,000 |
Vested, shares | -267,000 | -195,000 | -152,000 |
Forfeited or expired, shares | -36,000 | -50,000 | -26,000 |
Outstanding, shares, end of period | 692,000 | 714,000 | 573,000 |
Outstanding, weighted-average grant date fair value per share, beginning of period | $38.97 | $38.21 | $36.08 |
Granted, weighted-average grant date fair value per share | $51.12 | $39.09 | $41.06 |
Vested, weighted-average grant date fair value per share | $38.57 | $37.92 | $36.48 |
Forfeited or expired, weighted-average grant date fair value per share | $42.74 | $39.50 | $36.92 |
Outstanding, weighted-average grant date fair value per share, end of period | $43.86 | $38.97 | $38.21 |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 3 months 10 days | ||
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Outstanding, Aggregate Intrinsic Value | 35,821,000 | ||
Outstanding and expected to vest, shares | 645,000 | ||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 1 year 2 months 19 days | ||
Outstanding and expected to vest, aggregate intrinsic value | 33,364,000 | ||
Grant date fair value of awards released | $10,300,000 | $7,400,000 | $5,500,000 |
Minimum [Member] | Long-Term Performance-based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance-based awards shares released as percentage of target number, minimum | 0.00% | ||
Maximum [Member] | Long-Term Performance-based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance-based awards shares released as percentage of target number, minimum | 200.00% |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset at fair value | $117,945 | $129,770 |
Commercial paper [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 3,099 | |
Money market funds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 3,370 | 17,492 |
Corporate securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 114,575 | 109,179 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset at fair value | 3,370 | 17,492 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 3,370 | 17,492 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset at fair value | 114,575 | 112,278 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 3,099 | |
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | $114,575 | $109,179 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Intangible Assets, Net[Abstract] | ||||
Total intangible assets, Gross | $58,780,000 | $57,519,000 | ||
Accumulated amortization | -23,256,000 | -17,185,000 | ||
Total | 29,573,000 | [1] | ||
Total Intangible Assets, Net | 35,524,000 | 40,334,000 | ||
Amortization of intangibles | 6,072,000 | 7,404,000 | 5,164,000 | |
Technology licenses [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-lived intangible assets, Gross | 3,000,000 | 3,000,000 | ||
Accumulated amortization | -2,625,000 | -2,325,000 | ||
Total | 375,000 | 675,000 | ||
Patent rights [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-lived intangible assets, Gross | 1,949,000 | 1,949,000 | ||
Accumulated amortization | -1,949,000 | -1,949,000 | ||
Total | 0 | 0 | ||
Patent rights [Member] | Maximum [Member] | ||||
Intangible Assets and Goodwill [Line Items] | ||||
Useful life (in years) | 12 years | |||
Developed technology [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-lived intangible assets, Gross | 26,670,000 | 26,670,000 | ||
Accumulated amortization | -7,828,000 | -5,247,000 | ||
Total | 18,842,000 | 21,423,000 | ||
Customer relationships [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-lived intangible assets, Gross | 17,610,000 | 17,610,000 | ||
Accumulated amortization | -7,254,000 | -4,664,000 | ||
Total | 10,356,000 | 12,946,000 | ||
Trade names [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-lived intangible assets, Gross | 3,600,000 | 3,600,000 | ||
Accumulated amortization | -3,600,000 | -3,000,000 | ||
Total | 0 | 600,000 | ||
Trade names [Member] | Minimum [Member] | ||||
Intangible Assets and Goodwill [Line Items] | ||||
Useful life (in years) | 2 years | |||
Internet Domain Names [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Indefinite-lived intangible assets | 1,261,000 | 0 | ||
In-process research and developement [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-lived intangible assets, Gross | 4,690,000 | 4,690,000 | ||
Total | 4,690,000 | 4,690,000 | ||
In-process research and developement [Member] | Early Stage Research And Developement Company [Member] | ||||
Intangible Assets and Goodwill [Line Items] | ||||
Finite-lived intangible assets | $4,700,000 | |||
[1] | The total above excludes $4.7 million of in-process research and development which will be amortized upon completion of development over the estimated useful life of the technology. |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Intangible Assets Amortization Expense) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $6,072 | $7,404 | $5,164 | |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||||
2015 | 5,009 | |||
2016 | 4,394 | |||
2017 | 3,994 | |||
2018 | 3,746 | |||
2019 | 3,424 | |||
Thereafter | 9,006 | |||
Total | 29,573 | [1] | ||
Developed technology [Member] | ||||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||||
Total | 18,842 | 21,423 | ||
Customer relationships [Member] | ||||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||||
Total | 10,356 | 12,946 | ||
Trade names [Member] | ||||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||||
Total | 0 | 600 | ||
Patent rights [Member] | ||||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||||
Total | $0 | $0 | ||
[1] | The total above excludes $4.7 million of in-process research and development which will be amortized upon completion of development over the estimated useful life of the technology. |
SIGNIFICANT_CUSTOMERS_AND_EXPO2
SIGNIFICANT CUSTOMERS AND EXPORT SALES (Customer and Credit Risk Concentration) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
customers | customers | customers | |
Concentration Risk [Line Items] | |||
Number of reportable segments | 1 | ||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Number of major customers | 10 | 10 | |
Concentration risk percentage | 66.00% | 71.00% | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Avnet [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 22.00% | 21.00% | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | ATM Electronic Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.00% | ||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Burnon International Ltd. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Number of major customers | 10 | 10 | 10 |
Concentration risk percentage of net revenue | 59.00% | 59.00% | 64.00% |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Avnet [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage of net revenue | 19.00% | 19.00% | 20.00% |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | ATM Electronic Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage of net revenue | 12.00% |
SIGNIFICANT_CUSTOMERS_AND_EXPO3
SIGNIFICANT CUSTOMERS AND EXPORT SALES (International Sales) (Details) (Geographic Concentration Risk [Member], Sales Revenue, Goods, Net [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage of net revenue | 95.00% | 95.00% | 95.00% |
Hong Kong/China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage of net revenue | 47.00% | 47.00% | 45.00% |
Taiwan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage of net revenue | 15.00% | 15.00% | 17.00% |
Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage of net revenue | 11.00% | 11.00% | 12.00% |
Western Europe Excluding Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage of net revenue | 11.00% | 11.00% | 10.00% |
Japan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage of net revenue | 5.00% | 5.00% | 6.00% |
Singapore [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage of net revenue | 1.00% | 2.00% | 2.00% |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage of net revenue | 2.00% | 2.00% | 1.00% |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage of net revenue | 3.00% | 2.00% | 2.00% |
SIGNIFICANT_CUSTOMERS_AND_EXPO4
SIGNIFICANT CUSTOMERS AND EXPORT SALES (Product Sales) (Details) (Sales Revenue, Product Line [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Industrial Electronics Market [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration risk, percentage of total net revenues | 35.00% | 34.00% | 28.00% |
Consumer Market [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration risk, percentage of total net revenues | 37.00% | 35.00% | 36.00% |
Computer Market [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration risk, percentage of total net revenues | 10.00% | 10.00% | 12.00% |
Communications Market [Member] | |||
Revenue from External Customer [Line Items] | |||
Concentration risk, percentage of total net revenues | 18.00% | 21.00% | 24.00% |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Basic earnings per share: | ||||||||||||||
Net income (loss) | $14,354 | $16,111 | $16,716 | $12,363 | $16,037 | $16,654 | $13,672 | $10,903 | $59,544 | $57,266 | ($34,404) | |||
Weighted-average common shares | 29,350,000 | 30,013,000 | 30,310,000 | 30,239,000 | 29,974,000 | 29,762,000 | 29,178,000 | 28,754,000 | 29,976,000 | 29,421,000 | 28,636,000 | |||
Basic earnings (loss) per share | $0.49 | $0.54 | $0.55 | $0.41 | $0.54 | $0.56 | $0.47 | $0.38 | $1.99 | $1.95 | ($1.20) | |||
Diluted earnings per share: | ||||||||||||||
Net income (loss) | $14,354 | $16,111 | $16,716 | $12,363 | $16,037 | $16,654 | $13,672 | $10,903 | $59,544 | $57,266 | ($34,404) | |||
Weighted-average common shares | 29,350,000 | 30,013,000 | 30,310,000 | 30,239,000 | 29,974,000 | 29,762,000 | 29,178,000 | 28,754,000 | 29,976,000 | 29,421,000 | 28,636,000 | |||
Effect of dilutive securities: | ||||||||||||||
Employee stock plans | 853,000 | [1] | 999,000 | [1] | 0 | [1] | ||||||||
Diluted weighted average common shares | 30,051,000 | 30,757,000 | 31,110,000 | 31,167,000 | 30,924,000 | 30,652,000 | 30,158,000 | 29,783,000 | 30,829,000 | [1] | 30,420,000 | [1] | 28,636,000 | [1] |
Diluted earnings (loss) per share | $0.48 | $0.52 | $0.54 | $0.40 | $0.52 | $0.54 | $0.45 | $0.37 | $1.93 | [1] | $1.88 | [1] | ($1.20) | [1] |
Antidilutive shares attributable to stock-based awards outstanding excluded from computation of diluted earnings per share | 36,501 | 122,263 | ||||||||||||
[1] | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards underlying the 2014 awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included the shares underlying the 2013 and 2012 awards in the respective year calculations, as those shares were contingently issuable upon the satisfaction of the annual targets consisting of net revenue, non-GAAP operating earnings and achievement of strategic goals as of the end of the periods. |
PROVISION_FOR_INCOME_TAXES_Det
PROVISION FOR INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||||
Adjustments to additional paid in capital, benefit from employee stock option activity | $800,000 | $1,300,000 | $1,300,000 | |||
Impairment charges | 58,900,000 | |||||
Tax benefit recorded due to impairment charge | 8,000,000 | |||||
Interest from examination | 5,700,000 | |||||
Provision and interest expense net of reversal of unrecognized tax benefits | 18,100,000 | |||||
U.S. and foreign components of income before income taxes [Abstract] | ||||||
U.S. operations | -5,064,000 | 1,936,000 | -36,178,000 | |||
Foreign operations | 61,878,000 | 53,491,000 | 15,396,000 | |||
INCOME (LOSS) BEFORE INCOME TAXES | 56,814,000 | 55,427,000 | -20,782,000 | |||
Current provision: | ||||||
Federal | -1,234,000 | -558,000 | 9,813,000 | |||
State | -137,000 | 2,000 | -2,083,000 | |||
Foreign | 3,094,000 | 3,049,000 | 1,892,000 | |||
Current provision | 1,723,000 | 2,493,000 | 9,622,000 | |||
Deferred provision (benefit): | ||||||
Federal | -3,279,000 | -3,633,000 | 2,647,000 | |||
State | -284,000 | 0 | 3,109,000 | |||
Foreign | -890,000 | -699,000 | -1,756,000 | |||
Deferred provision (benefit) | -4,453,000 | -4,332,000 | 4,000,000 | |||
Total | -2,730,000 | -1,839,000 | 13,622,000 | |||
Effective income tax rate reconciliation [Abstract] | ||||||
Provision computed at Federal statutory rate | 35.00% | 35.00% | 35.00% | |||
State tax provision, net of Federal benefit | 0.00% | 0.00% | 8.90% | |||
Business tax credits | -5.50% | -8.10% | 4.90% | |||
Stock-based compensation | -2.90% | -2.80% | 2.50% | |||
Foreign income taxed at different rate | -28.60% | -29.50% | 25.90% | |||
IRS audit settlement | -5.80% | 0.00% | -87.20% | |||
Valuation allowance | 2.00% | -0.10% | -48.40% | |||
Other | 1.00% | 2.20% | -7.20% | |||
Total | -4.80% | -3.30% | -65.60% | |||
Components of deferred income tax asset [Abstract] | ||||||
Other reserves and accruals | 3,928,000 | 6,893,000 | ||||
Tax credit carry-forwards | 19,602,000 | 12,453,000 | ||||
Stock compensation | 5,429,000 | 5,964,000 | ||||
Capital losses | 11,401,000 | 10,307,000 | ||||
Net operating loss | 3,680,000 | 1,014,000 | ||||
Valuation allowance | -25,828,000 | -19,271,000 | ||||
Deferred tax assets, net of valuation allowance | 18,212,000 | 17,360,000 | ||||
Depreciation | -3,320,000 | -4,226,000 | ||||
Acquired intangibles | -3,502,000 | -4,303,000 | ||||
Unremitted earnings | -5,182,000 | -2,432,000 | ||||
Other | -1,072,000 | -1,107,000 | ||||
Deferred tax liabilities | -13,076,000 | -12,068,000 | ||||
Net deferred tax asset | 5,136,000 | 5,292,000 | ||||
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits [Roll Forward] | ||||||
Unrecognized Tax Benefits, Balance at beginning of period | 12,694,000 | 10,813,000 | 34,855,000 | 12,694,000 | ||
Gross Increases for Tax Positions of Current Year | 2,117,000 | 1,881,000 | 1,110,000 | |||
Gross Increases for Tax Positions of Prior Years | 710,000 | 9,344,000 | ||||
Gross Increases for Tax Positions of Prior Years | 0 | |||||
Settlements | -26,900,000 | -4,361,000 | 0 | -34,496,000 | ||
Lapse of Statute of Limitations | 0 | 0 | 0 | |||
Unrecognized Tax Benefits, Balance at end of period | 11,160,000 | 12,694,000 | 10,813,000 | |||
Unrecognized tax benefits [Abstract] | ||||||
Undistributed earnings of the Company's foreign subsidiaries | 144,000,000 | |||||
Unrecognized tax benefits | 11,160,000 | 12,694,000 | 10,813,000 | |||
Income tax benefit that would be recorded if unrecognized tax benefits are recognized | 4,900,000 | |||||
Income tax interest and penalties accrued | 100,000 | 700,000 | ||||
Income tax interest and penalties expense | 10,000 | |||||
Internal Revenue Service (IRS) [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax liability (refund) adjustment from settlement with taxing authority | 42,600,000 | |||||
Income tax provision due to examination | 44,800,000 | |||||
Domestic Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax provision due to examination | 35,000,000 | |||||
State and Local Jurisdiction [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax liability (refund) adjustment from settlement with taxing authority | 4,100,000 | |||||
Decrease in valuation allowance | 2,200,000 | |||||
State and Local Jurisdiction [Member] | California Taxing Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards | 31,500,000 | |||||
Research Tax Credit Carryforward [Member] | Domestic Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward, amount | 10,800,000 | |||||
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | California Taxing Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward, amount | 14,900,000 | |||||
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | New Jersey Division of Taxation [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward, amount | 400,000 | |||||
Research Tax Credit Carryforward [Member] | Foreign Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax credit carryforward, amount | 2,300,000 | |||||
Long-term Deferred Tax Assets [Member] | Accounting Standards Update 2013-07 [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effect of adoption of new accounting principle | 4,300,000 | |||||
2007 through 2009 [Member] | Internal Revenue Service (IRS) [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax liability (refund) adjustment from settlement with taxing authority | -3,300,000 | |||||
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits [Roll Forward] | ||||||
Settlements | -4,100,000 | |||||
2007 through 2009 [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax liability (refund) adjustment from settlement with taxing authority | -2,800,000 | |||||
2007 through 2009 [Member] | State and Local Jurisdiction [Member] | Internal Revenue Service (IRS) [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax liability (refund) adjustment from settlement with taxing authority | ($500,000) |
COMMITMENTS_Details
COMMITMENTS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2015 | $1,485,000 | ||
2016 | 1,082,000 | ||
2017 | 887,000 | ||
2018 | 966,000 | ||
2019 | 412,000 | ||
Thereafter | 0 | ||
Total minimum lease payments | 4,832,000 | ||
Rent expense, net | 1,800,000 | 1,500,000 | 1,400,000 |
Non-cancelable purchase obligations | $0 |
LEGAL_PROCEEDINGS_AND_CONTINGE1
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Feb. 03, 2011 | Dec. 31, 2008 | Oct. 31, 2006 | Oct. 31, 2004 | 31-May-08 | Nov. 04, 2009 | Feb. 28, 2014 | Nov. 30, 2009 | Feb. 05, 2013 | 1-May-12 | Dec. 22, 2008 | Dec. 31, 2009 | Nov. 30, 2008 | Dec. 31, 2014 | Apr. 30, 2012 | 5-May-10 | 31-May-10 | Feb. 28, 2010 |
patents | patents | patents | patents | patents | patents | patents | patents | patents | patents | patents | |||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Federal tax benefit due to IRS settlement | $2.80 | ||||||||||||||||||
State and local tax benefit due to IRS settlement | 0.5 | ||||||||||||||||||
Foreign earnings repatriated | 5 | ||||||||||||||||||
Patent Infringement Claim One [Member] | Positive Outcome of Litigation [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patents in filed infringement claims | 4 | ||||||||||||||||||
Damages awarded to the Company | 12.9 | 6.1 | 34 | ||||||||||||||||
Patent Infringement Claim Two [Member] | Positive Outcome of Litigation [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patents in filed infringement claims | 3 | ||||||||||||||||||
Patent Infringement Claim Three [Member] | Positive Outcome of Litigation [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patents in filed infringement claims | 2 | 2 | |||||||||||||||||
Number of patents in infringement case fairchild believes is unenforceable | 1 | 1 | |||||||||||||||||
Damages awarded to the Company | 105 | ||||||||||||||||||
Property Lease Guarantee [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Damages sought after the Company | 2.4 | ||||||||||||||||||
Counterclaims [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patents in filed infringement claims | 5 | ||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim One [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Period for petition for further stay of permanent injunction | 90 days | ||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Two [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patents in filed infringement claims | 3 | ||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | ||||||||||||||||||
Number of patents remaining in infringement claims | 2 | ||||||||||||||||||
Percent of revenue impacted by patents involved in litigation | 0.30% | ||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Two Counterclaim [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patents remaining in infringement claims | 2 | ||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Three [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patents in filed infringement claims | 2 | ||||||||||||||||||
Number of patents added to infringement claims | 1 | ||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | ||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Four [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patents in filed infringement claims | 4 | ||||||||||||||||||
Damages sought after the Company | $19 | ||||||||||||||||||
Pending Litigation [Member] | Patent Infringment Claim Five [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patents in filed infringement claims | 4 | ||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | ||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Two Counterclaim [Member] | |||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||
Number of patent infringements | 2 | ||||||||||||||||||
Number of patents not infringed | 1 |
ACQUISITIONS_Cambridge_Semicon
ACQUISITIONS (Cambridge Semiconductor Limited) (Details) (USD $) | 0 Months Ended | ||
Jan. 02, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||
Loan to Cambridge Semiconductor | $6,600,000 | $0 | |
Cambridge Semiconductor Limited [Member] | |||
Business Acquisition [Line Items] | |||
Loan to Cambridge Semiconductor | 6,600,000 | ||
Subsequent Event [Member] | Cambridge Semiconductor Limited [Member] | |||
Business Acquisition [Line Items] | |||
Amount paid to acquire CamSemi | $23,000,000 |
ACQUISITIONS_Purchase_Price_an
ACQUISITIONS (Purchase Price and Estimated Fair Values) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | 1-May-12 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets Acquired | |||
Goodwill | 80,599 | $80,599 | |
Concept [Member] | |||
Assets Acquired | |||
Cash | 14,933 | ||
Accounts receivable | 3,220 | ||
Inventories | 10,631 | ||
Prepaid expenses and other current assets | 2,777 | ||
Property and equipment, net | 2,310 | ||
Intangible assets | 44,050 | ||
Goodwill | 65,813 | ||
Total assets acquired | 143,734 | ||
Liabilities assumed | |||
Current liabilities | 4,587 | ||
Deferred tax liabilities | 7,860 | ||
Other liabilities | 634 | ||
Total liabilities assumed | 13,081 | ||
Total purchase price | 130,653 | ||
Developed technology [Member] | Concept [Member] | |||
Assets Acquired | |||
Intangible assets | 23,750 | ||
Trade names [Member] | Concept [Member] | |||
Assets Acquired | |||
Intangible assets | 3,600 | ||
Customer relationships [Member] | Concept [Member] | |||
Assets Acquired | |||
Intangible assets | $16,700 | ||
Liabilities assumed | |||
Useful life (in years) | 10 years | ||
Minimum [Member] | Developed technology [Member] | Concept [Member] | |||
Liabilities assumed | |||
Useful life (in years) | 4 years | ||
Minimum [Member] | Trade names [Member] | |||
Liabilities assumed | |||
Useful life (in years) | 2 years | ||
Maximum [Member] | Developed technology [Member] | Concept [Member] | |||
Liabilities assumed | |||
Useful life (in years) | 12 years | ||
Maximum [Member] | Patents [Member] | |||
Liabilities assumed | |||
Useful life (in years) | 12 years |
TRANSACTIONS_WITH_THIRD_PARTY_
TRANSACTIONS WITH THIRD PARTY (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2011 | Mar. 31, 2012 | Oct. 22, 2010 | |
Schedule of Cost-method Investments [Line Items] | ||||||||
Asset Impairment Charges | $0 | $0 | $33,745,000 | |||||
Other charges/write-offs related to SemiSouth | 0 | 0 | 25,200,000 | |||||
Loss Contingency, Loss in Period | 15,300,000 | |||||||
Payment of Guarantee Obligation | 15,200,000 | 0 | 0 | 15,200,000 | ||||
Semi South [Member] | ||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||
Initial Loan to SemiSouth | 18,000,000 | |||||||
Investees proceeds from other financing activities | 15,000,000 | |||||||
Loan Receivable, Fixed Interest Rate | 2.00% | |||||||
Purchase Options Other | 6,200,000 | |||||||
Loans Receivable, Fair Value Disclosure | 11,800,000 | |||||||
Asset Impairment Charges | 33,700,000 | |||||||
Developed Technology Rights [Member] | ||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||
Contingent Purchase Commitment | 15,000,000 | |||||||
Noncontrolling Interest [Member] | Semi South [Member] | ||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||
Cost-method Investment in SemiSouth | 7,000,000 | |||||||
Cost Method Investment, Percentage of Company Acquired | 16.00% | |||||||
Prepaid royalty to SemiSouth | 10,000,000 | |||||||
Potential Business Acquisition, Maximum Purchase Price | 80,000,000 | |||||||
Lease Receivables [Member] | Semi South [Member] | ||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||
Asset Impairment Charges | 6,700,000 | |||||||
Preferred Stock [Member] | Semi South [Member] | ||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||
Asset Impairment Charges | 7,000,000 | |||||||
Promissary Note net of Imputed Interest [Member] | Semi South [Member] | ||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||
Asset Impairment Charges | 13,200,000 | |||||||
Purchase Option [Member] | Semi South [Member] | ||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||
Asset Impairment Charges | 6,200,000 | |||||||
Developed Technology Rights [Member] | Semi South [Member] | ||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||
Other charges/write-offs related to SemiSouth | 10,000,000 | |||||||
Other Assets [Member] | Semi South [Member] | ||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||
Asset Impairment Charges | $600,000 |
RETIREMENT_PLANS_Details
RETIREMENT PLANS (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Business Acquisition, Purchase Price Allocation, Projected Benefit Obligation (Asset) | $8,100,000 | $7,000,000 | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 5,800,000 | 5,100,000 | ||
Business Acquisition, Purchase Price Allocation, Projected Benefit Obligation (Asset), Net of Plan Assets Acquired | 2,300,000 | 1,900,000 | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 400,000 | |||
Accumulated other comprehensive loss | -1,136,000 | -470,000 | -293,000 | 50,000 |
Defined Benefit Pension Items [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated other comprehensive loss | ($1,240,000) | ($780,000) | ($560,000) | $0 |
BANK_LINE_OF_CREDIT_Details
BANK LINE OF CREDIT (Details) (USD $) | Dec. 31, 2014 | Jul. 05, 2012 |
banks | ||
Line of Credit Facility [Line Items] | ||
Number of banks used for Credit Agreement | 2 | |
Credit Agreement, maximum borrowing capacity | $100,000,000 | |
Line of credit, amount outstanding | 0 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Agreement, maximum borrowing capacity | $20,000,000 |
SELECTED_QUARTERLY_INFORMATION2
SELECTED QUARTERLY INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net revenues | $86,595 | $90,144 | $88,985 | $83,073 | $90,412 | $91,715 | $87,922 | $77,040 | ||||||
Gross Profit | 45,805 | 49,052 | 48,736 | 45,977 | 48,391 | 48,774 | 46,207 | 39,864 | 189,570 | 183,236 | 150,502 | |||
Net income (loss) | $14,354 | $16,111 | $16,716 | $12,363 | $16,037 | $16,654 | $13,672 | $10,903 | $59,544 | $57,266 | ($34,404) | |||
Earnings per share | ||||||||||||||
Basic (per share) | $0.49 | $0.54 | $0.55 | $0.41 | $0.54 | $0.56 | $0.47 | $0.38 | $1.99 | $1.95 | ($1.20) | |||
Diluted (per share) | $0.48 | $0.52 | $0.54 | $0.40 | $0.52 | $0.54 | $0.45 | $0.37 | $1.93 | [1] | $1.88 | [1] | ($1.20) | [1] |
Shares used in per share calculation | ||||||||||||||
Basic (in shares) | 29,350 | 30,013 | 30,310 | 30,239 | 29,974 | 29,762 | 29,178 | 28,754 | 29,976 | 29,421 | 28,636 | |||
Diluted (in shares) | 30,051 | 30,757 | 31,110 | 31,167 | 30,924 | 30,652 | 30,158 | 29,783 | 30,829 | [1] | 30,420 | [1] | 28,636 | [1] |
[1] | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards underlying the 2014 awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included the shares underlying the 2013 and 2012 awards in the respective year calculations, as those shares were contingently issuable upon the satisfaction of the annual targets consisting of net revenue, non-GAAP operating earnings and achievement of strategic goals as of the end of the periods. |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Period | $120 | $247 | $215 | |||
Charged to Costs and Expenses | 135 | 12 | 32 | |||
Deductions | -64 | [1] | -139 | [1] | 0 | [1] |
Balance at End of Period | 191 | 120 | 247 | |||
Allowance for Ship and Debit Credits [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Period | 28,696 | 23,040 | 19,464 | |||
Charged to Costs and Expenses | 177,260 | 172,621 | 154,803 | |||
Deductions | -178,531 | [2] | -166,965 | [2] | -151,227 | [2] |
Balance at End of Period | $27,425 | $28,696 | $23,040 | |||
[1] | Deductions relate to amounts written off against the allowances for doubtful accounts. | |||||
[2] | Deductions relate to ship and debit credits issued which adjust the sell-in price from the standard distribution price to the pre-approved lower price. Refer to Note 2, Summary of Significant Accounting Policies, for the Company's revenue recognition policy, including the Company's accounting for ship and debit claims. |