Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 16, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | POWER INTEGRATIONS INC | |
Entity Central Index Key | 833,640 | |
Trading Symbol | POWI | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 28,430,305 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 59,735 | $ 60,708 |
Short-term marketable securities | 91,222 | 114,575 |
Accounts receivable, net of allowances of $319 and $191 in 2015 and 2014, respectively (Note 2) | 11,061 | 10,186 |
Inventories | 55,439 | 64,025 |
Deferred tax assets | 75 | 39 |
Prepaid expenses and other current assets | 5,780 | 16,379 |
Total current assets | 223,312 | 265,912 |
PROPERTY AND EQUIPMENT, net | 102,223 | 95,823 |
INTANGIBLE ASSETS, net | 39,957 | 35,524 |
GOODWILL | 91,849 | 80,599 |
DEFERRED TAX ASSETS | 10,647 | 11,562 |
OTHER ASSETS | 5,502 | 4,243 |
Total assets | 473,490 | 493,663 |
CURRENT LIABILITIES: | ||
Accounts payable | 23,370 | 21,980 |
Accrued payroll and related expenses | 8,203 | 9,071 |
Taxes payable | 2,022 | 2,963 |
Deferred tax liabilities | 1,985 | 2,193 |
Deferred income on sales to distributors | 16,464 | 15,223 |
Other accrued liabilities | 3,182 | 3,730 |
Total current liabilities | 55,226 | 55,160 |
LONG-TERM INCOME TAXES PAYABLE | 746 | 743 |
DEFERRED TAX LIABILITIES | 3,752 | 4,272 |
OTHER LIABILITIES | 2,569 | 2,812 |
Total liabilities | $ 62,293 | $ 62,987 |
COMMITMENTS AND CONTINGENCIES (Notes 9, 11, 12 and 15) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | $ 28 | $ 29 |
Additional paid-in capital | 136,422 | 171,938 |
Accumulated other comprehensive loss | (1,043) | (1,136) |
Retained earnings | 275,790 | 259,845 |
Total stockholders’ equity | 411,197 | 430,676 |
Total liabilities and stockholders’ equity | $ 473,490 | $ 493,663 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (PARENTHETICAL) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ (319) | $ (191) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Income Statement [Abstract] | |||||
NET REVENUES | $ 88,878 | $ 90,144 | $ 256,700 | $ 262,202 | |
COST OF REVENUES | 44,717 | 41,092 | 126,229 | 118,437 | |
GROSS PROFIT | 44,161 | 49,052 | 130,471 | 143,765 | |
OPERATING EXPENSES: | |||||
Research and development | 13,888 | 13,458 | 43,693 | 41,314 | |
Sales and marketing | 11,129 | 11,564 | 35,701 | 35,906 | |
General and administrative | 7,361 | 7,155 | 23,133 | 22,614 | |
Total operating expenses | 32,378 | 32,177 | 102,527 | 99,834 | |
INCOME FROM OPERATIONS | 11,783 | 16,875 | 27,944 | 43,931 | |
OTHER INCOME | |||||
Other income, net | 428 | 381 | 219 | 836 | |
Total other income | 428 | 381 | 219 | 836 | |
INCOME BEFORE INCOME TAXES | 12,211 | 17,256 | 28,163 | 44,767 | |
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 698 | 1,145 | 1,717 | (423) | |
NET INCOME | $ 11,513 | $ 16,111 | $ 26,446 | $ 45,190 | |
EARNINGS PER SHARE: | |||||
Basic (in dollars per share) | $ 0.40 | $ 0.54 | $ 0.91 | $ 1.50 | |
Diluted (in dollars per share) | [1] | $ 0.39 | $ 0.52 | $ 0.89 | $ 1.46 |
SHARES USED IN PER SHARE CALCULATION: | |||||
Basic (in shares) | 28,855 | 30,013 | 29,175 | 30,186 | |
Diluted (in shares) | 29,298 | 30,757 | 29,856 | 31,053 | |
[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 the shares underlying the 2015 and 2014 awards in the 2015 and 2014 calculations, respectively, as those shares were not contingently issuable as of the end of the period. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 11,513 | $ 16,111 | $ 26,446 | $ 45,190 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments, net of $0 tax in the three and nine months ended September 30, 2015 and 2014 (Note 2) | 40 | (53) | 18 | (42) |
Unrealized gain (loss) on marketable securities, net of $0 tax in the three and nine months ended September 30, 2015 and 2014 (Note 2) | 20 | (246) | (17) | (7) |
Amortization of defined benefit pension items, net of tax of $18 and $26 in the three and nine months ended September 30, 2015, respectively and $4 and $12 in the three and nine months ended September 30, 2014, respectively (Note 2) | 64 | 15 | 92 | 45 |
Total other comprehensive income (loss) | 124 | (284) | 93 | (4) |
TOTAL COMPREHENSIVE INCOME | $ 11,637 | $ 15,827 | $ 26,539 | $ 45,186 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on marketable securities, tax | 0 | 0 | 0 | 0 |
Amortization of defined benefit pension items, tax | $ 18 | $ 4 | $ 26 | $ 12 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 26,446 | $ 45,190 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 12,235 | 11,849 |
Amortization of intangibles | 5,247 | 4,723 |
Loss on sale of property and equipment | 270 | 170 |
Stock-based compensation expense | 11,502 | 10,670 |
Amortization of premium on marketable securities | 809 | 1,296 |
Deferred income taxes | 152 | (782) |
Increase in accounts receivable allowances | 128 | 75 |
Excess tax benefit from employee stock plans | 0 | (437) |
Tax benefit (deficiency) associated with employee stock plans | (189) | 815 |
Change in operating assets and liabilities: | ||
Accounts receivable | 888 | 1,933 |
Inventories | 9,995 | (14,639) |
Prepaid expenses and other assets | 4,278 | 9,955 |
Accounts payable | (2,035) | 2,509 |
Taxes payable and accrued liabilities | (3,579) | (3,257) |
Deferred income on sales to distributors | 1,241 | 3,017 |
Net cash provided by operating activities | 67,388 | 73,087 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (7,619) | (17,394) |
Payment for purchase of building (Note 10) | (10,389) | 0 |
Payment for acquisition, net of cash acquired (Note 10) | (15,549) | 0 |
Other assets | 0 | (1,261) |
Purchases of marketable securities | (14,933) | (45,269) |
Proceeds from sales and maturities of marketable securities | 37,459 | 0 |
Net cash used in investing activities | (11,031) | (63,924) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of common stock under employee stock plans | 6,902 | 13,104 |
Repurchase of common stock | (53,731) | (45,258) |
Payments of dividends to stockholders | (10,501) | (9,654) |
Excess tax benefit from employee stock plans | 0 | 437 |
Net cash used in financing activities | (57,330) | (41,371) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (973) | (32,208) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 60,708 | 92,928 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 59,735 | 60,720 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Unpaid property and equipment | 3,216 | 4,359 |
Loan applied to CamSemi purchase price (Note 10) | 6,600 | 0 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid (refund) for income taxes, net | $ 1,007 | $ (3,707) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION: The condensed consolidated financial statements include the accounts of Power Integrations, Inc., a Delaware corporation (the “Company”), and its wholly owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. While the financial information furnished is unaudited, the condensed consolidated financial statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair presentation of the results of operations for the interim periods covered and the financial condition of the Company at the date of the interim balance sheet in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year. The condensed consolidated financial statements should be read in conjunction with the Power Integrations, Inc. consolidated financial statements and the notes thereto for the year ended December 31, 2014 , included in its Form 10-K filed on February 10, 2015 , with the Securities and Exchange Commission. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: No material changes have been made to the Company's significant accounting policies disclosed in Note 2, Summary of Significant Accounting Policies , in its Annual Report on Form 10-K, filed on February 10, 2015 , for the year ended December 31, 2014 . The accounting policy information below is to aid in the understanding of the financial information disclosed. 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, stock repurchases and other strategic investments. As a result the Company classifies its investment portfolio as available-for-sale. The Company classifies all investments with a maturity date greater than three months at the date of purchase as short-term marketable securities in its Condensed Consolidated Balance Sheets. As of September 30, 2015 , and December 31, 2014 , the Company's marketable securities consisted primarily of highly liquid corporate securities, commercial paper and other high-quality commercial securities. Amortized cost and estimated fair market value of cash equivalents and marketable securities classified as available-for-sale at September 30, 2015 , were as follows: Amortized Cost Gross Unrealized Estimated Fair Market Value (In thousands) Gains Losses Investments due in less than 3 months: Commercial paper $ 18,019 $ — $ — $ 18,019 Corporate securities 9,400 1 — 9,401 Total 27,419 1 — 27,420 Investments due in 4-12 months: Corporate securities 64,306 72 (11 ) 64,367 Total 64,306 72 (11 ) 64,367 Investments due between 12 months and 5-years: Corporate securities 5,004 5 — 5,009 Total 5,004 5 — 5,009 Total marketable securities $ 96,729 $ 78 $ (11 ) $ 96,796 Amortized cost and estimated fair market value of marketable securities classified as available-for-sale at December 31, 2014 , were as follows: Amortized Cost Gross Unrealized Estimated Fair Market Value (In thousands) Gains Losses 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 marketable securities $ 114,492 $ 128 $ (45 ) $ 114,575 As of September 30, 2015 , and December 31, 2014 , the Company evaluated the nature of the investments with a loss position, which were primarily high-quality corporate securities, and determined the unrealized losses were not other-than-temporary. Revenue Recognition Product revenues consist of sales to original equipment manufacturers (“OEMs”), merchant power supply manufacturers and distributors. Approximately 76% of the Company's net product sales were made to distributors in the nine months ended September 30, 2015 , and 75% in the twelve months ended December 31, 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 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. 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. 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 sales to distributors 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 condensed consolidated balance sheets. The total deferred revenue as of September 30, 2015 , and December 31, 2014 , was approximately $28.4 million and $25.0 million , respectively. The total deferred cost as of September 30, 2015 , and December 31, 2014 , was approximately $11.9 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 reserve appears as a reduction to accounts receivable 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 of the Company's distributors 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. Common Stock Repurchases and Cash Dividend In October 2012, the Company's board of directors authorized the use of $50.0 million for the repurchase of the Company's common stock. In the year ended December 31, 2014 and in July 2015, the Company's board of directors authorized the use of an additional $75.0 million and $30.0 million , respectively, for repurchase of the Company's common stock, with repurchases to be executed according to pre-defined price/volume guidelines. In the year ended December 31, 2014 , the Company purchased 1.6 million shares for $80.8 million , and in the nine months ended September 30, 2015 , the Company purchased approximately 1.3 million shares for $53.7 million . As of September 30, 2015 , the Company had used up the amount authorized for repurchase. In October 2015, the Company's board of directors authorized the use of an additional $30.0 million for the repurchase of the Company's common stock. Authorization of future 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 and other factors. 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. Dividend payouts totaling $3.5 million each were paid on March 31, June 30, and September 30, 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 interests of the Company's stockholders. Use of 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, income tax, stock-based compensation and inventories. These estimates are based on historical facts and various other assumptions that the Company believes to be reasonable at the time the estimates are made. Components of the Company's Condensed Consolidated Balance Sheets Accounts Receivable: (In thousands) September 30, 2015 December 31, 2014 Accounts receivable trade $ 46,816 $ 38,344 Accrued ship and debit and rebate claims (35,436 ) (27,967 ) Allowance for doubtful accounts (319 ) (191 ) Total $ 11,061 $ 10,186 Prepaid Expenses and Other Current Assets: (In thousands) September 30, December 31, Prepaid legal fees $ 23 $ 1,506 Loan to Cambridge Semiconductor (Note 10) — 6,600 Prepaid income tax 1,386 3,208 Prepaid maintenance agreements 866 1,023 Interest receivable 371 664 VAT receivable 525 987 Supplier prepayment 366 800 Other 2,243 1,591 Total $ 5,780 $ 16,379 Changes in accumulated other comprehensive income (loss) for the three months ended September 30, 2015 and 2014 : Unrealized Gains and Losses on Marketable Securities Defined Benefit Pension Items Foreign Currency Items Total Three Months Ended Three Months Ended Three Months Ended Three Months Ended September 30, September 30, September 30, September 30, (In thousands) 2015 2014 2015 2014 2015 2014 2015 2014 Beginning balance $ 46 $ 449 $ (1,212 ) $ (750 ) $ (1 ) $ 111 $ (1,167 ) $ (190 ) Other comprehensive income (loss) before reclassifications 20 (246 ) — — 40 (53 ) 60 (299 ) Amounts reclassified from accumulated other comprehensive income — — 64 (1 ) 15 (1 ) — — 64 15 Net-current period other comprehensive income (loss) 20 (246 ) 64 15 40 (53 ) 124 (284 ) Ending balance $ 66 $ 203 $ (1,148 ) $ (735 ) $ 39 $ 58 $ (1,043 ) $ (474 ) _______________ (1) This component of accumulated other comprehensive income is included in the computation of net periodic pension cost for the three months ended September 30, 2015 and 2014 . Changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2015 and 2014 : Unrealized Gains and Losses on Marketable Securities Defined Benefit Pension Items Foreign Currency Items Total Nine Months Ended Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) 2015 2014 2015 2014 2015 2014 2015 2014 Beginning balance $ 83 $ 210 $ (1,240 ) $ (780 ) $ 21 $ 100 $ (1,136 ) $ (470 ) Other comprehensive income (loss) before reclassifications (17 ) (7 ) — — 18 (42 ) 1 (49 ) Amounts reclassified from accumulated other comprehensive income — — 92 (1 ) 45 (1 ) — — 92 45 Net-current period other comprehensive income (loss) (17 ) (7 ) 92 45 18 (42 ) 93 (4 ) Ending balance $ 66 $ 203 $ (1,148 ) $ (735 ) $ 39 $ 58 $ (1,043 ) $ (474 ) _______________ (1) This component of accumulated other comprehensive income is included in the computation of net periodic pension cost for the nine months ended September 30, 2015 and 2014 . |
STOCK PLANS AND SHARE-BASED COM
STOCK PLANS AND SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK PLANS AND SHARE-BASED COMPENSATION | STOCK PLANS AND SHARE-BASED COMPENSATION: Stock Plans As of September 30, 2015 , 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, non-statutory stock options, restricted stock awards, restricted stock unit ("RSU") awards, stock appreciation rights, performance-based ("PSU") awards , long-term performance based ("PRSU") awards and other stock awards to employees, directors and consultants. As of September 30, 2015 , the maximum remaining number of shares that may be issued under the 2007 Plan was 6,377,504 shares, which includes options granted 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 non-statutory 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 receives a grant of an equity award with an aggregate value of $100,000 , which will become exercisable or vest immediately prior to the Company's next annual meeting of stockholders, subject to the director's continued service. At each outside director's election, such award may 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 of the board. 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 3,000,000 shares of common stock were reserved for issuance to employees under the Purchase Plan. As of September 30, 2015 , 2,808,265 shares had been purchased and 191,735 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, and uses historical data to estimate pre-vesting forfeitures, recognizing expense only for those awards that are expected to vest. 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. The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the three and nine months ended September 30, 2015 , and September 30, 2014 : Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2015 2014 2015 2014 Cost of revenues $ 219 $ 131 $ 725 $ 648 Research and development 1,277 971 3,974 3,522 Sales and marketing 877 779 2,767 2,578 General and administrative 988 699 4,036 3,922 Total stock-based compensation expense $ 3,361 $ 2,580 $ 11,502 $ 10,670 Stock-based compensation expense in the three months ended September 30, 2015 was $3.4 million (comprising approximately $0.1 million related to stock options, a reduction to expense of $0.2 million related to PSUs and PRSUs, $3.2 million related to RSUs and $0.3 million related to the Purchase Plan). In the nine months ended September 30, 2015 , stock compensation expense was $11.5 million (comprising approximately $0.5 million related to stock options, $0.6 million related to PSUs and PRSUs, $9.5 million related to RSUs and $0.9 million related to the Purchase Plan). Stock-based compensation expense in the three months ended September 30, 2014 , was $2.6 million (comprising approximately $0.2 million related to stock options, a reduction to expense of $0.8 million related to PSUs and PRSUs, $2.8 million related to RSUs and $0.4 million related to the Purchase Plan). In the nine months ended September 30, 2014 , stock compensation expense was $10.7 million (comprising approximately $1.0 million related to stock options, $0.4 million related to PSUs and PRSUs, $8.4 million related to RSUs and $0.9 million related to the Purchase Plan). 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 September 30, 2015 : September 30, 2015 Unrecognized Compensation Expense for Unvested Awards (in thousands) Weighted Average Remaining Recognition Period (in years) Options $ 296 0.57 Performance-based awards 189 0.25 Long-term performance-based awards 606 1.81 Restricted stock unit awards 24,049 2.46 Purchase plan 434 0.34 Total unrecognized compensation expense $ 25,574 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: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Risk-free interest rate 0.17% 0.05% 0.13% 0.05 % - 0.07% Expected volatility rate 26% 48% 29% 30 % - 48% Expected dividend yield 1.20% 0.85% 1.08% 0.66 % - 0.85% Expected term of purchase right (in years) 0.5 0.5 0.5 0.5 Weighted-average estimated fair value of purchase rights $8.41 $15.25 $10.18 $14.40 The Company did not grant stock options in the three and nine months ended September 30, 2015 , or September 30, 2014 , and therefore no fair-value assumptions are reported. A summary of stock option activity under the Plans, excluding PSUs, PRSUs and RSUs, as of September 30, 2015 , and changes during the nine months then ended, is presented below: Shares (in thousands) Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 1,344 $27.27 Granted — — Exercised (96 ) $25.29 Forfeited or expired (2 ) $37.97 Outstanding at September 30, 2015 1,246 $27.39 2.91 $ 18,463 Exercisable at September 30, 2015 1,228 $27.17 2.86 $ 18,463 Vested and expected to vest at September 30, 2015 1,246 $27.39 2.91 $ 18,463 The Company did not grant stock options in the three and nine months ended September 30, 2015 , and September 30, 2014 . Beginning in 2010 the Company's equity grants to new hires and its annual incentive grants to non-executive employees have been primarily in the form of RSU's. The total intrinsic value of options exercised during the three and nine months ended September 30, 2015 , was approximately $0.3 million and $2.4 million , respectively, and the total intrinsic value of options exercised during the three and nine months ended September 30, 2014 , was approximately $1.8 million and $8.7 million , respectively. PSU Awards Under the PSU awards program, the Company grants awards in an amount equal to twice the target number of shares to be issued if the annual 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. In 2015, the performance metrics of this program are annual targets consisting of net revenue, non-GAAP operating income and strategic goals. Each PSU granted from the 2007 Plan will reduce the number of shares available for issuance under the 2007 Plan by two shares. During the nine months ended September 30, 2015 , the Company granted approximately 88,000 annual PSUs to the Company's employees and executives. As the net revenue, non-GAAP operating earnings and strategic goals are considered performance conditions, 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 targets. The fair value of PSUs 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. In January 2015, it was determined that the Company had not reached the minimum level of the established 2014 performance targets (consisting of revenue and non-GAAP operating income). Accordingly, no shares subject to PSUs granted in connection with the 2014 performance based incentive plan were released to the Company's employees and executives in 2015. A summary of PSUs outstanding as of September 30, 2015 , and activity during the nine months then ended, is presented below: Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 — — Granted 88 $52.39 Vested — — Change in units due to performance achievement for PSUs vested in the year — — Forfeited or expired (1 ) $50.79 Outstanding at September 30, 2015 87 $52.41 0.25 $ 3,684 Outstanding and expected to vest at September 30, 2015 12 0.25 $ 516 The weighted-average grant-date fair value per share of PSUs granted in the three and nine months ended September 30, 2015 was approximately $37.81 and $52.39 , respectively, and $53.93 in the nine months ended September 30, 2014 (there were no PSUs granted in the three months ended September 30, 2014). There were no awards released in the three and nine months ended September 30, 2015 . The grant-date fair value of awards released, which were fully vested, in the nine months ended September 30, 2014 , was approximately $3.2 million . No awards were released in the three months ended September 30, 2014 . PRSU Awards In the first quarter of 2014 the Company began granting PRSU awards. The Company's PRSU program provides for the issuance of PRSUs which will vest based on the Company's performance measured against the PRSU Plan's established revenue targets. The PRSUs were granted in an amount equal to twice the target number of shares to be issued if the target performance metrics are 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 goals, and may range from zero to 200% of the target number. The performance goals for PRSUs granted in fiscal 2014 and 2015 were based on the Company's annual revenue growth. Each PRSU granted from the 2007 Plan will reduce the number of shares available for issuance under the 2007 Plan by two shares. Recipients of a PRSU 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 fair value of PRSU 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 PRSUs outstanding as of September 30, 2015 , and activity during the nine months then ended, is presented below: Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 61 $55.51 Granted 72 $52.47 Vested — — Forfeited or expired (4 ) $57.76 Outstanding at September 30, 2015 129 $53.75 1.81 $ 5,427 Outstanding and expected to vest at September 30, 2015 17 1.79 $ 724 The weighted-average grant-date fair value per share of PRSUs granted in the nine months ended September 30, 2015 and September 30, 2014 , was approximately $52.47 and $56.15 , respectively (there were no PRSUs granted in the three months ended September 30, 2015 , or September 30, 2014 ). RSU Awards The Company grants RSUs 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 with 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 two shares. A summary of RSUs outstanding as of September 30, 2015 , and changes during the nine months then ended, are as follows: Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 692 $43.86 Granted 302 $49.90 Vested (257 ) $42.49 Forfeited or expired (48 ) $45.55 Outstanding at September 30, 2015 689 $46.90 1.46 $ 29,073 Outstanding and expected to vest at September 30, 2015 636 1.40 $ 26,804 The weighted-average grant-date fair value per share of RSUs awarded in the three and nine months ended September 30, 2015 , was approximately $42.65 and $49.90 , respectively, and $58.03 and $51.30 , respectively, in the corresponding periods of the previous year. The grant-date fair value of RSUs vested in the three and nine months ended September 30, 2015 , was approximately $0.4 million and $10.9 million , respectively, and $0.5 million and $10.0 million , respectively, in the corresponding periods of the previous year. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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 equivalents and short-term marketable securities are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The 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) generally include investment-grade corporate bonds, government, state, municipal and provincial obligations and commercial paper. 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's investments classified as Level 1 and Level 2 are available-for-sale investments, and were recorded at fair market value. The fair-value hierarchy of the Company's marketable securities at September 30, 2015 , and December 31, 2014 , was as follows: Fair Value Measurement at September 30, 2015 (In thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Commercial paper $ 18,019 $ — $ 18,019 Money market funds 11,742 11,742 — Corporate securities 78,777 — 78,777 Total $ 108,538 $ 11,742 $ 96,796 Fair Value Measurement at December 31, 2014 (In thousands) Total Fair Value 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 The Company did not transfer any investments between Level 1 and Level 2 of the fair-value hierarchy in the nine months ended September 30, 2015 , and the twelve months ended December 31, 2014 . |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 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) September 30, December 31, Raw materials $ 18,661 $ 21,127 Work-in-process 14,659 14,643 Finished goods 22,119 28,255 Total $ 55,439 $ 64,025 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS: Goodwill increased during the nine months ended September 30, 2015 , due to the Company's acquisition of Cambridge Semiconductor Limited ("CamSemi") (refer to Note 10, Acquisitions , for details on the Company's CamSemi acquisition). Changes in the carrying amount of goodwill during the nine months ended September 30, 2015 , are as follows: (In thousands) Goodwill Balance at December 31, 2014 $ 80,599 Goodwill acquired during the period 11,250 Ending balance at September 30, 2015 $ 91,849 Intangible assets consist primarily of developed technology, acquired licenses, customer relationships, trade name, in-process research and development and patent rights, and are reported net of accumulated amortization. In January 2015, the Company acquired CamSemi, resulting in the addition of the following intangible assets: developed technology of $6.6 million , which will be amortized over a period of 3 - 7 years ; and customer relationships of $2.4 million , which will be amortized over a period of 5 years . In August 2015, the Company purchased a building with existing third-party leases, resulting in the addition of in-place lease intangible assets of $0.7 million which will be amortized over a period of 2 years. 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, patent rights and contractual lease period, which range from 2 to 12 years , with the exception of $1.3 million for the purchase of an internet 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), and $4.7 million of in-process research and development. 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 amortization of the capitalized in-process research and development to begin in 2015 . Amortization for acquired intangible assets was approximately $1.7 million and $5.2 million in the three and nine months ended September 30, 2015 , respectively, and $1.3 million and $4.7 million , respectively, in the corresponding periods of the previous year. The Company does not believe there is any significant residual value associated with its finite-lived intangible assets: September 30, 2015 December 31, 2014 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Domain name $ 1,261 $ — $ 1,261 $ 1,261 $ — $ 1,261 In-process research and development 4,690 — 4,690 4,690 — 4,690 Technology licenses 3,000 (2,850 ) 150 3,000 (2,625 ) 375 Patent rights 1,949 (1,949 ) — 1,949 (1,949 ) — Developed technology 33,270 (10,708 ) 22,562 26,670 (7,828 ) 18,842 Customer relationships 20,030 (9,366 ) 10,664 17,610 (7,254 ) 10,356 Trade name 3,600 (3,600 ) — 3,600 (3,600 ) — In-place leases 660 (30 ) 630 — — — Total intangible assets $ 68,460 $ (28,503 ) $ 39,957 $ 58,780 $ (23,256 ) $ 35,524 The estimated future amortization expense related to finite-lived intangible assets at September 30, 2015 , is as follows: Fiscal Year Estimated Amortization (in thousands) 2015 (remaining 3 months) $ 1,792 2016 6,663 2017 6,084 2018 5,152 2019 4,753 Thereafter 9,562 Total (1) $ 34,006 _______________ (1) The total above excludes $4.7 million of in-process research and development that will be amortized, upon completion of development, over the estimated useful life of the technology. |
SIGNIFICANT CUSTOMERS AND INTER
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES | 9 Months Ended |
Sep. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES | SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES: Segment Reporting The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of integrated circuits and related components for use primarily in the high-voltage power-conversion market. 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. Customer Concentration The Company's top ten customers accounted for approximately 64% and 61% of net revenues for the three and nine months ended September 30, 2015 , respectively, and approximately 59% of net revenues in each of the corresponding periods of the previous year. 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. One customer, a distributor of the Company's products, accounted for more than 10% of the Company's net revenues in the three and nine months ended September 30, 2015 , and in the corresponding periods of 2014 . A second customer, also a distributor, accounted for more than 10% of net revenues in the three month period ended September 30, 2015. The following table discloses these customers' percentage of revenues for the respective periods: Three Months Ended Nine Months Ended September 30, September 30, Customer 2015 2014 2015 2014 Avnet 20 % 19 % 21 % 20 % Powertech Distribution Ltd. 11 % * * * _______________ * Total customer percentage of revenues was less than 10%. No other customers accounted for 10% or more of the Company's net revenues in the periods presented. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist 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. As of September 30, 2015 , and December 31, 2014 , 65% and 66% , respectively, of accounts receivable were concentrated with the Company's top 10 customers. The following customers represented 10% or more of accounts receivable: Customer September 30, December 31, Avnet 23 % 22 % ATM Electronic Corporation 12 % * Burnon International LTD. * 11 % _______________ * Total customer accounts receivable was less than 10% . The above-mentioned customers are distributors of the Company’s products. No other customers accounted for 10% or more of the Company’s accounts receivable on these dates. 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: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Hong Kong/China 49 % 47 % 49 % 46 % Taiwan 15 % 16 % 14 % 16 % Korea 10 % 11 % 10 % 11 % Western Europe (excluding Germany) 11 % 11 % 11 % 11 % Japan 4 % 5 % 5 % 5 % Germany 3 % 2 % 3 % 2 % Other 3 % 4 % 3 % 4 % Total foreign revenue 95 % 96 % 95 % 95 % The remainder of the Company’s sales is to customers within the United States of America. Product Sales Net revenues consist primarily of sales of the Company's high-voltage integrated-circuit products, insulated-gate bipolar transistor ("IGBT") drivers and high-voltage silicon diodes. When evaluating the Company's net revenues, the Company categorizes its sales into the following four end-market groupings: communications, computer, consumer and industrial. The table below provides the percentage of net sales activity by end market for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended Nine Months Ended September 30, September 30, End Market 2015 2014 2015 2014 Communications 26 % 18 % 23 % 17 % Computer 7 % 11 % 7 % 11 % Consumer 36 % 36 % 37 % 37 % Industrial 31 % 35 % 33 % 35 % |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income 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 both short- and long-term 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 per share calculation is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2015 2014 2015 2014 Basic earnings per share: Net income $ 11,513 $ 16,111 $ 26,446 $ 45,190 Weighted-average common shares 28,855 30,013 29,175 30,186 Basic earnings per share $ 0.40 $ 0.54 $ 0.91 $ 1.50 Diluted earnings per share: (1) Net income $ 11,513 $ 16,111 $ 26,446 $ 45,190 Weighted-average common shares 28,855 30,013 29,175 30,186 Effect of dilutive awards: Employee stock plans 443 744 681 867 Diluted weighted-average common shares 29,298 30,757 29,856 31,053 Diluted earnings per share $ 0.39 $ 0.52 $ 0.89 $ 1.46 _______________ (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 the shares underlying the 2015 and 2014 awards in the 2015 and 2014 calculations, respectively, as those shares were not contingently issuable as of the end of the period. In the three and nine months ended September 30, 2015 , 69,000 and 8,000 outstanding stock awards were determined to be anti-dilutive, respectively, and therefore were excluded in the computation of diluted earnings per share. In the three and nine months ended September 30, 2014 , no outstanding stock awards were determined to be anti-dilutive, and therefore no stock awards were excluded in the computation of diluted earnings per share. |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES: Income-tax expense includes a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for certain discrete items which are fully recognized in the period they occur. The Company's effective tax rates for the three and nine months ended September 30, 2015 , were 5.7% and 6.1% , respectively. The difference between the expected statutory rate of 35% and the Company's effective tax rates for the three and nine months ended September 30, 2015 , was due primarily to the beneficial impact of the geographic distribution of the Company's world-wide earnings. The Company's effective tax rates for the three and nine months ended September 30, 2014 , were 6.6% and (0.9)% , respectively. The difference between the expected statutory rate of 35% and the effective tax rates for the three and nine months ended September 30, 2014, was due primarily to the beneficial impact of the geographic distribution of the Company's world-wide earnings and additionally, for the nine months ended September 30, 2014, the Company's 2014 settlement with the IRS. The provision for income tax for the nine months ended September 30, 2014 , includes, in the second quarter of 2014, 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 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. 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 September 30, 2015 , the Company maintains a valuation allowance on its California deferred tax assets, New Jersey deferred tax assets, capital losses for federal purposes and a valuation allowance with respect to its deferred tax assets relating to tax credits in Canada. To ensure an additional source of U.S. cash, the Company plans to repatriate a portion of its current year offshore earnings to the U.S. for domestic operations and accordingly has provided for estimated federal and state income taxes on such portion of its current year offshore earnings. If circumstances change and it becomes apparent that some or all of the undistributed earnings of the Company's offshore subsidiary will be remitted in the foreseeable future but income taxes have not been recognized, the Company will accrue income taxes attributable to such undistributed earnings. Determining the consolidated provision for (benefit from) income tax expense, income tax liabilities and deferred tax assets and liabilities involves judgment. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates, which involves estimating current tax exposures as well as making judgments regarding the recoverability of deferred tax assets in each jurisdiction. The estimates used could differ from actual results, which may have a significant impact on operating results in future periods. On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision has yet to be issued by the Tax Court due to other outstanding issues related to the case. At this time, the U.S. Department of the Treasury has not withdrawn the requirement to include stock-based compensation expense from IRS cost-sharing regulations. The Company has reviewed this case and its impact and concluded that no adjustment to the consolidated financial statements is appropriate at this time. The Company will continue to monitor ongoing developments and potential impacts to the consolidated financial statements. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 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 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 in January 2015. On January 2, 2015, the Company acquired 100% of the shares outstanding of CamSemi for total consideration of approximately $23.3 million , of which $16.7 million was paid in cash and $6.6 million was applied against the outstanding loan owed to the Company. The acquisition-related costs for the purchase of CamSemi were $0.2 million in the nine months ended September 30, 2015 , and $0.8 million in the three months ended December 31, 2014. 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. 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 light-emitting diode ("LED") lighting markets. The purchase price allocated to goodwill in the acquisition (as noted in the purchase price allocation below) is related largely to synergies and economies of scale expected from combining the operations of CamSemi with those of the Company. The following table summarizes the purchase price and preliminary estimated fair values of the assets acquired and the liabilities assumed as of January 2, 2015. The allocation of the purchase price is preliminary as certain pre-acquisition liabilities and corporate taxes are still being finalized and may be adjusted should further information regarding events or circumstances existing as of the acquisition date become available. (In thousands) Total Amount Assets Acquired Cash $ 1,134 Accounts receivable 1,891 Inventories 1,409 Prepaid expenses and other current assets 408 Tax receivable 1,093 Intangible assets: Developed technology 6,600 Customer relationships 2,420 Goodwill 11,250 Total assets acquired 26,205 Liabilities Assumed Current liabilities 1,832 Taxes payable 1,090 Total liabilities assumed 2,922 Total purchase price $ 23,283 The following table represents details of the purchased intangible assets: Fair Value Amount (in thousands) Estimated Useful Life (in years) Developed technology $ 6,600 3 - 7 Customer relationships 2,420 5 Total acquired CamSemi intangibles $ 9,020 The fair value of the identifiable intangible assets, developed technology and customer relationships, were determined based on the following approach. Developed Technology. The income approach was used to value the acquired developed technology. Revenue attributable to the Company's technology was estimated based on expected evolution of the technology over time. Expenses were assumed to reflect the costs necessary to support the developed technology . The present value was capitalized as developed technology as of the acquisition date and is being amortized using a straight-line method to cost of revenues over the estimated life of 3 - 7 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 historical customer relationships and operating practices of CamSemi. In order to determine the fair value of the customer relationships, the Company's analysis assumed that the Company would immediately benefit from the economics generated by CamSemi's existing customer relationships. This amount was reduced by the potential impact given no past customer relationships and the assumption that the Company could reacquire the customer relationships and ramp up to a similar level of revenue within two years . The fair value of customer relationships was capitalized as of the acquisition date and is being amortized on a straight line basis to sales and marketing expenses over the estimated life of 5 years . Pro forma results of operations for this acquisition have not been presented because it is not material to the Company’s condensed consolidated financial statements. Corporate Headquarters Building In August, 2015, the Company purchased a building adjacent to the corporate headquarters in San Jose, California to support the overall growth of the business. The purchase has been accounted for using the acquisition method of accounting in accordance with ASC 805 - Business Combinations, as the building had existing rental income resulting from in-place lease agreements with third-party tenants. The aggregate purchase price of $10.4 million , funded with cash on hand, was allocated as follows: $3.5 million for land, $6.3 million for building and improvements, $0.7 million for in-place leases and $(0.1) million for liabilities assumed. The building and improvements are being depreciated on a straight-line basis over an estimated useful life of up to 30 years . Additionally, as a result of the purchase, the Company acquired existing third-party leases that were valued as in-place lease intangible assets and are being amortized over the weighted average estimated life of 2 years . The valuation of the acquired in-place leases were estimated by the Company based on the amount of avoided cash outflows necessary to originate such leases. Acquisition-related costs in connection with the building purchase were included in other income, net in the consolidated statements of income and were not material for the periods presented. The allocation of the purchase price is preliminary and may be adjusted should further information regarding events or circumstances existing as of the acquisition date become available. Rental income from the third-party leases, and the proportionate share of building expenses for those leases, are included in other income, net in the consolidated statements of income from the date of acquisition. These amounts were not material for the periods presented. |
COMMITMENTS
COMMITMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS: Supplier Agreements Under the terms of the Company's wafer-supply agreements with Seiko Epson Corporation ("Epson"), and ROHM Lapis Semiconductor Co., Ltd. ("Lapis") the wafers purchased from these suppliers are priced in U.S. dollars; however, these agreements also allow for mutual sharing of the impact of the exchange rate fluctuation between Japanese yen and the U.S. dollar on future purchases. Each year, the Company's management and these two suppliers review and negotiate future pricing; the negotiated pricing is denominated in U.S. dollars but is subject to contractual exchange rate provisions. The fluctuation in the exchange rate is shared equally between the Company and each of these suppliers on future purchases. |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES | 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 pulse width modulation (“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 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 liquid-crystal-display ("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 (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 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, and both parties filed appeals with the Federal Circuit, for which briefing should be completed later this year. 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 SG and Fairchild 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, SG and Fairchild 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 SG and Fairchild 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 condensed 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, with the retrial scheduled for December 2015. The parties recently completed pretrial proceedings challenging each other’s experts, and the Court granted portions of each party’s motions limiting the scope of expert testimony for purposes of the damages retrial, but neither party was successful in their efforts to prevent the other side’s experts from testifying at trial. Further pretrial proceedings will take place over 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. 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, but Fairchild has since dismissed its appeals, bringing the infringement proceedings to a close in the first quarter of 2015. 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 took place. Following a hearing in May 2015, the Federal Circuit ruled in the Company's favor on August 12, 2015, overturning the PTO's claim construction and remanding the case for further proceedings. 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 alleged 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. The parties streamlined their contentions in view of the Court's pretrial rulings, and following a trial in late May and early June 2015, a jury returned a verdict finding that Fairchild infringed one of the Company's patents, that Fairchild has induced and contributed to others' infringement of the Company's patent, and that the Company induced infringement of a Fairchild patent that was previously found infringed in the 2012 trial described above, with a damages award of $2.4 million in favor of Fairchild. However, in parallel proceedings the Patent Office has rejected all of the asserted claims of the one Fairchild patent found infringed, determinations that Fairchild is challenging on appeal, and the Court rejected Fairchild’s earlier request for an injunction based on those same claims. Both parties have filed post-trial motions and challenges to various portions of the jury verdicts, and the Court is expected to address the first wave of post-trial motions over the coming months. The Company believes it has valid defenses against the $2.4 million award in favor of Fairchild, and therefore has not recorded a loss in its financial statements at this time. On October 21, 2015, the Company filed a complaint for patent infringement against Fairchild Semiconductor Corporation, Fairchild Semiconductor International, Inc., and wholly-owned subsidiary Fairchild (Taiwan) Corporation (referred to collectively as “Fairchild”) to address Fairchild’s continued infringement of two patents Fairchild was previously found to infringe in the three District Court cases the Company brought against Fairchild discussed above. In each of the three prior cases, Fairchild was found to infringe one of the patents at issue in the latest complaint, and Fairchild’s challenges to the validity of the patents were rejected during the course of the prior lawsuits as well. Fairchild has not yet answered the complaint, and no trial date has been scheduled, but further proceedings are expected over the course of the coming months. 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. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS: In May 2014, the Financial Accounting Standards Board ("FASB") amended the existing accounting standards for revenue recognition, Accounting Standards Update ("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 2018. Early adoption is permitted; however, the Company is not permitted to adopt the standard earlier than January 1, 2017. 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. |
BANK LINE OF CREDIT
BANK LINE OF CREDIT | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
BANK LINE OF CREDIT | 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 September 30, 2015 , the Company had no letters of credit outstanding and no amount outstanding under the credit agreement. |
INDEMNIFICATIONS
INDEMNIFICATIONS | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
INDEMNIFICATIONS | 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 September 30, 2015 . 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. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | 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 | 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, stock repurchases and other strategic investments. As a result the Company classifies its investment portfolio as available-for-sale. The Company classifies all investments with a maturity date greater than three months at the date of purchase as short-term marketable securities in its Condensed Consolidated Balance Sheets. As of September 30, 2015 , and December 31, 2014 , the Company's marketable securities consisted primarily of highly liquid corporate securities, commercial paper and other high-quality commercial securities. |
Revenue Recognition | Revenue Recognition Product revenues consist of sales to original equipment manufacturers (“OEMs”), merchant power supply manufacturers and distributors. Approximately 76% of the Company's net product sales were made to distributors in the nine months ended September 30, 2015 , and 75% in the twelve months ended December 31, 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 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. 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. 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 sales to distributors 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 condensed consolidated balance sheets. The total deferred revenue as of September 30, 2015 , and December 31, 2014 , was approximately $28.4 million and $25.0 million , respectively. The total deferred cost as of September 30, 2015 , and December 31, 2014 , was approximately $11.9 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 reserve appears as a reduction to accounts receivable 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 of the Company's distributors 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. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the 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, income tax, stock-based compensation and inventories. These estimates are based on historical facts and various other assumptions that the Company believes to be reasonable at the time the estimates are made. |
Stock-Based Compensation | 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, and uses historical data to estimate pre-vesting forfeitures, recognizing expense only for those awards that are expected to vest. 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. |
Segment Reporting | Segment Reporting The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of integrated circuits and related components for use primarily in the high-voltage power-conversion market. 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. |
Earnings Per Share | Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income 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 both short- and long-term performance-based awards, and the assumed issuance of awards under the stock purchase plan, as computed using the treasury stock method. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Available-for-sale Securities | Amortized cost and estimated fair market value of cash equivalents and marketable securities classified as available-for-sale at September 30, 2015 , were as follows: Amortized Cost Gross Unrealized Estimated Fair Market Value (In thousands) Gains Losses Investments due in less than 3 months: Commercial paper $ 18,019 $ — $ — $ 18,019 Corporate securities 9,400 1 — 9,401 Total 27,419 1 — 27,420 Investments due in 4-12 months: Corporate securities 64,306 72 (11 ) 64,367 Total 64,306 72 (11 ) 64,367 Investments due between 12 months and 5-years: Corporate securities 5,004 5 — 5,009 Total 5,004 5 — 5,009 Total marketable securities $ 96,729 $ 78 $ (11 ) $ 96,796 Amortized cost and estimated fair market value of marketable securities classified as available-for-sale at December 31, 2014 , were as follows: Amortized Cost Gross Unrealized Estimated Fair Market Value (In thousands) Gains Losses 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 marketable securities $ 114,492 $ 128 $ (45 ) $ 114,575 |
Schedule of Accounts Receivable | Accounts Receivable: (In thousands) September 30, 2015 December 31, 2014 Accounts receivable trade $ 46,816 $ 38,344 Accrued ship and debit and rebate claims (35,436 ) (27,967 ) Allowance for doubtful accounts (319 ) (191 ) Total $ 11,061 $ 10,186 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets: (In thousands) September 30, December 31, Prepaid legal fees $ 23 $ 1,506 Loan to Cambridge Semiconductor (Note 10) — 6,600 Prepaid income tax 1,386 3,208 Prepaid maintenance agreements 866 1,023 Interest receivable 371 664 VAT receivable 525 987 Supplier prepayment 366 800 Other 2,243 1,591 Total $ 5,780 $ 16,379 |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the three months ended September 30, 2015 and 2014 : Unrealized Gains and Losses on Marketable Securities Defined Benefit Pension Items Foreign Currency Items Total Three Months Ended Three Months Ended Three Months Ended Three Months Ended September 30, September 30, September 30, September 30, (In thousands) 2015 2014 2015 2014 2015 2014 2015 2014 Beginning balance $ 46 $ 449 $ (1,212 ) $ (750 ) $ (1 ) $ 111 $ (1,167 ) $ (190 ) Other comprehensive income (loss) before reclassifications 20 (246 ) — — 40 (53 ) 60 (299 ) Amounts reclassified from accumulated other comprehensive income — — 64 (1 ) 15 (1 ) — — 64 15 Net-current period other comprehensive income (loss) 20 (246 ) 64 15 40 (53 ) 124 (284 ) Ending balance $ 66 $ 203 $ (1,148 ) $ (735 ) $ 39 $ 58 $ (1,043 ) $ (474 ) _______________ (1) This component of accumulated other comprehensive income is included in the computation of net periodic pension cost for the three months ended September 30, 2015 and 2014 . Changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2015 and 2014 : Unrealized Gains and Losses on Marketable Securities Defined Benefit Pension Items Foreign Currency Items Total Nine Months Ended Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) 2015 2014 2015 2014 2015 2014 2015 2014 Beginning balance $ 83 $ 210 $ (1,240 ) $ (780 ) $ 21 $ 100 $ (1,136 ) $ (470 ) Other comprehensive income (loss) before reclassifications (17 ) (7 ) — — 18 (42 ) 1 (49 ) Amounts reclassified from accumulated other comprehensive income — — 92 (1 ) 45 (1 ) — — 92 45 Net-current period other comprehensive income (loss) (17 ) (7 ) 92 45 18 (42 ) 93 (4 ) Ending balance $ 66 $ 203 $ (1,148 ) $ (735 ) $ 39 $ 58 $ (1,043 ) $ (474 ) _______________ (1) This component of accumulated other comprehensive income is included in the computation of net periodic pension cost for the nine months ended September 30, 2015 and 2014 . |
STOCK PLANS AND SHARE-BASED C25
STOCK PLANS AND SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Expense | The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the three and nine months ended September 30, 2015 , and September 30, 2014 : Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2015 2014 2015 2014 Cost of revenues $ 219 $ 131 $ 725 $ 648 Research and development 1,277 971 3,974 3,522 Sales and marketing 877 779 2,767 2,578 General and administrative 988 699 4,036 3,922 Total stock-based compensation expense $ 3,361 $ 2,580 $ 11,502 $ 10,670 |
Schedule of Unrecognized Compensation Expense for Unvested Awards | 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 September 30, 2015 : September 30, 2015 Unrecognized Compensation Expense for Unvested Awards (in thousands) Weighted Average Remaining Recognition Period (in years) Options $ 296 0.57 Performance-based awards 189 0.25 Long-term performance-based awards 606 1.81 Restricted stock unit awards 24,049 2.46 Purchase plan 434 0.34 Total unrecognized compensation expense $ 25,574 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | 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: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Risk-free interest rate 0.17% 0.05% 0.13% 0.05 % - 0.07% Expected volatility rate 26% 48% 29% 30 % - 48% Expected dividend yield 1.20% 0.85% 1.08% 0.66 % - 0.85% Expected term of purchase right (in years) 0.5 0.5 0.5 0.5 Weighted-average estimated fair value of purchase rights $8.41 $15.25 $10.18 $14.40 |
Summary of Option Activity Under the Plans | A summary of stock option activity under the Plans, excluding PSUs, PRSUs and RSUs, as of September 30, 2015 , and changes during the nine months then ended, is presented below: Shares (in thousands) Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 1,344 $27.27 Granted — — Exercised (96 ) $25.29 Forfeited or expired (2 ) $37.97 Outstanding at September 30, 2015 1,246 $27.39 2.91 $ 18,463 Exercisable at September 30, 2015 1,228 $27.17 2.86 $ 18,463 Vested and expected to vest at September 30, 2015 1,246 $27.39 2.91 $ 18,463 |
Performance Based Awards (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of PSUs outstanding as of September 30, 2015 , and activity during the nine months then ended, is presented below: Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 — — Granted 88 $52.39 Vested — — Change in units due to performance achievement for PSUs vested in the year — — Forfeited or expired (1 ) $50.79 Outstanding at September 30, 2015 87 $52.41 0.25 $ 3,684 Outstanding and expected to vest at September 30, 2015 12 0.25 $ 516 |
Long-Term Performance-based Awards (PRSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of PRSUs outstanding as of September 30, 2015 , and activity during the nine months then ended, is presented below: Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 61 $55.51 Granted 72 $52.47 Vested — — Forfeited or expired (4 ) $57.76 Outstanding at September 30, 2015 129 $53.75 1.81 $ 5,427 Outstanding and expected to vest at September 30, 2015 17 1.79 $ 724 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSUs outstanding as of September 30, 2015 , and changes during the nine months then ended, are as follows: Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 692 $43.86 Granted 302 $49.90 Vested (257 ) $42.49 Forfeited or expired (48 ) $45.55 Outstanding at September 30, 2015 689 $46.90 1.46 $ 29,073 Outstanding and expected to vest at September 30, 2015 636 1.40 $ 26,804 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of marketable securities and investments | The fair-value hierarchy of the Company's marketable securities at September 30, 2015 , and December 31, 2014 , was as follows: Fair Value Measurement at September 30, 2015 (In thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Commercial paper $ 18,019 $ — $ 18,019 Money market funds 11,742 11,742 — Corporate securities 78,777 — 78,777 Total $ 108,538 $ 11,742 $ 96,796 Fair Value Measurement at December 31, 2014 (In thousands) Total Fair Value 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 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: (In thousands) September 30, December 31, Raw materials $ 18,661 $ 21,127 Work-in-process 14,659 14,643 Finished goods 22,119 28,255 Total $ 55,439 $ 64,025 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill during the nine months ended September 30, 2015 , are as follows: (In thousands) Goodwill Balance at December 31, 2014 $ 80,599 Goodwill acquired during the period 11,250 Ending balance at September 30, 2015 $ 91,849 |
Schedule of intangible assets | The Company does not believe there is any significant residual value associated with its finite-lived intangible assets: September 30, 2015 December 31, 2014 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Domain name $ 1,261 $ — $ 1,261 $ 1,261 $ — $ 1,261 In-process research and development 4,690 — 4,690 4,690 — 4,690 Technology licenses 3,000 (2,850 ) 150 3,000 (2,625 ) 375 Patent rights 1,949 (1,949 ) — 1,949 (1,949 ) — Developed technology 33,270 (10,708 ) 22,562 26,670 (7,828 ) 18,842 Customer relationships 20,030 (9,366 ) 10,664 17,610 (7,254 ) 10,356 Trade name 3,600 (3,600 ) — 3,600 (3,600 ) — In-place leases 660 (30 ) 630 — — — Total intangible assets $ 68,460 $ (28,503 ) $ 39,957 $ 58,780 $ (23,256 ) $ 35,524 |
Schedule of expected amortization expense | The estimated future amortization expense related to finite-lived intangible assets at September 30, 2015 , is as follows: Fiscal Year Estimated Amortization (in thousands) 2015 (remaining 3 months) $ 1,792 2016 6,663 2017 6,084 2018 5,152 2019 4,753 Thereafter 9,562 Total (1) $ 34,006 _______________ (1) The total above excludes $4.7 million of in-process research and development that will be amortized, upon completion of development, over the estimated useful life of the technology. |
SIGNIFICANT CUSTOMERS AND INT29
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Concentration Risk [Line Items] | |
International sales | 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: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Hong Kong/China 49 % 47 % 49 % 46 % Taiwan 15 % 16 % 14 % 16 % Korea 10 % 11 % 10 % 11 % Western Europe (excluding Germany) 11 % 11 % 11 % 11 % Japan 4 % 5 % 5 % 5 % Germany 3 % 2 % 3 % 2 % Other 3 % 4 % 3 % 4 % Total foreign revenue 95 % 96 % 95 % 95 % |
Revenue mix by product family | The table below provides the percentage of net sales activity by end market for the three and nine months ended September 30, 2015 and 2014 : Three Months Ended Nine Months Ended September 30, September 30, End Market 2015 2014 2015 2014 Communications 26 % 18 % 23 % 17 % Computer 7 % 11 % 7 % 11 % Consumer 36 % 36 % 37 % 37 % Industrial 31 % 35 % 33 % 35 % |
Sales Revenue, Goods, Net [Member] | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The following table discloses these customers' percentage of revenues for the respective periods: Three Months Ended Nine Months Ended September 30, September 30, Customer 2015 2014 2015 2014 Avnet 20 % 19 % 21 % 20 % Powertech Distribution Ltd. 11 % * * * |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The following customers represented 10% or more of accounts receivable: Customer September 30, December 31, Avnet 23 % 22 % ATM Electronic Corporation 12 % * Burnon International LTD. * 11 % _______________ * Total customer accounts receivable was less than 10% . |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share calculation | A summary of the earnings per share calculation is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2015 2014 2015 2014 Basic earnings per share: Net income $ 11,513 $ 16,111 $ 26,446 $ 45,190 Weighted-average common shares 28,855 30,013 29,175 30,186 Basic earnings per share $ 0.40 $ 0.54 $ 0.91 $ 1.50 Diluted earnings per share: (1) Net income $ 11,513 $ 16,111 $ 26,446 $ 45,190 Weighted-average common shares 28,855 30,013 29,175 30,186 Effect of dilutive awards: Employee stock plans 443 744 681 867 Diluted weighted-average common shares 29,298 30,757 29,856 31,053 Diluted earnings per share $ 0.39 $ 0.52 $ 0.89 $ 1.46 _______________ (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 the shares underlying the 2015 and 2014 awards in the 2015 and 2014 calculations, respectively, as those shares were not contingently issuable as of the end of the period. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price and preliminary estimated fair values of the assets acquired and the liabilities assumed as of January 2, 2015. The allocation of the purchase price is preliminary as certain pre-acquisition liabilities and corporate taxes are still being finalized and may be adjusted should further information regarding events or circumstances existing as of the acquisition date become available. (In thousands) Total Amount Assets Acquired Cash $ 1,134 Accounts receivable 1,891 Inventories 1,409 Prepaid expenses and other current assets 408 Tax receivable 1,093 Intangible assets: Developed technology 6,600 Customer relationships 2,420 Goodwill 11,250 Total assets acquired 26,205 Liabilities Assumed Current liabilities 1,832 Taxes payable 1,090 Total liabilities assumed 2,922 Total purchase price $ 23,283 |
Schedule of Purchased Intangible | The following table represents details of the purchased intangible assets: Fair Value Amount (in thousands) Estimated Useful Life (in years) Developed technology $ 6,600 3 - 7 Customer relationships 2,420 5 Total acquired CamSemi intangibles $ 9,020 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ / shares in Units, shares in Millions | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Jan. 31, 2015$ / shares | Apr. 30, 2014$ / shares | Oct. 31, 2013Quarter$ / shares | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)shares | Oct. 28, 2015USD ($) | Jul. 28, 2015USD ($) | Oct. 31, 2012USD ($) |
Class of Stock [Line Items] | ||||||||||||||||
Net Product Sales to Distributors, Percentage | 76.00% | 75.00% | ||||||||||||||
Deferred Revenue, Gross | $ 28,400,000 | $ 25,000,000 | $ 28,400,000 | $ 25,000,000 | ||||||||||||
Other Deferred Costs, Net | 11,900,000 | 9,800,000 | $ 11,900,000 | $ 9,800,000 | ||||||||||||
Stock Repurchased and Retired During Period, Shares | shares | 1.3 | 1.6 | ||||||||||||||
Stock Repurchased and Retired During Period, Value | $ 53,700,000 | $ 80,800,000 | ||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 0 | 0 | ||||||||||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ / shares | $ 0.12 | $ 0.12 | $ 0.10 | |||||||||||||
Payments of Dividends | $ 3,500,000 | $ 3,500,000 | $ 3,500,000 | $ 3,500,000 | $ 3,600,000 | $ 3,000,000 | $ 3,000,000 | $ 10,501,000 | $ 9,654,000 | |||||||
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ / shares | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.10 | $ 0.10 | |||||||||
Common Stock, Dividends, Per Share, Declared, Fiscal 2015, Period Four (in dollars per share) | $ / shares | $ 0.12 | |||||||||||||||
Dividends Declared, Number Of Quarters | Quarter | 4 | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 75,000,000 | $ 75,000,000 | $ 30,000,000 | $ 50,000,000 | ||||||||||||
Common Stock [Member] | Subsequent Event [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 30,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Available-for-sale Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 96,729 | $ 114,492 |
Gross Unrealized Gains | 78 | 128 |
Gross Unrealized Losses | (11) | (45) |
Estimated Fair Market Value | 96,796 | 114,575 |
Investments due in less than 3 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 27,419 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | 27,420 | |
Investments due in 4-12 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 64,306 | 30,233 |
Gross Unrealized Gains | 72 | 36 |
Gross Unrealized Losses | (11) | 0 |
Estimated Fair Market Value | 64,367 | 30,269 |
Investments due in more than 12 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,004 | 84,259 |
Gross Unrealized Gains | 5 | 92 |
Gross Unrealized Losses | 0 | (45) |
Estimated Fair Market Value | 5,009 | 84,306 |
Commercial paper [Member] | Investments due in less than 3 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,019 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | 18,019 | |
Corporate securities [Member] | Investments due in less than 3 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,400 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | 9,401 | |
Corporate securities [Member] | Investments due in 4-12 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 64,306 | 30,233 |
Gross Unrealized Gains | 72 | 36 |
Gross Unrealized Losses | (11) | 0 |
Estimated Fair Market Value | 64,367 | 30,269 |
Corporate securities [Member] | Investments due in more than 12 months [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,004 | 84,259 |
Gross Unrealized Gains | 5 | 92 |
Gross Unrealized Losses | 0 | (45) |
Estimated Fair Market Value | $ 5,009 | $ 84,306 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Components of the Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts Receivable, Net [Abstract] | ||
Accounts receivable trade | $ 46,816 | $ 38,344 |
Accrued ship and debit and rebate claims | 35,436 | 27,967 |
Allowance for doubtful accounts | 319 | 191 |
Total | 11,061 | 10,186 |
Prepaid Expense, Current [Abstract] | ||
Prepaid legal fees | 23 | 1,506 |
Loan to Cambridge Semiconductor (Note 10) | 0 | 6,600 |
Prepaid income tax | 1,386 | 3,208 |
Prepaid maintenance agreements | 866 | 1,023 |
Interest receivable | 371 | 664 |
VAT receivable | 525 | 987 |
Supplier prepayment | 366 | 800 |
Other | 2,243 | 1,591 |
Total | $ 5,780 | $ 16,379 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | $ (1,167) | $ (190) | $ (1,136) | $ 470 | ||||
Other comprehensive income (loss) before reclassifications | 60 | (299) | 1 | (49) | ||||
Amounts reclassified from accumulated other comprehensive income | (64) | (15) | (92) | (45) | ||||
Net-current period other comprehensive income (loss) | 124 | (284) | 93 | (4) | ||||
Ending balance | (1,043) | (474) | (1,043) | (474) | ||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | 46 | 449 | 83 | 210 | ||||
Other comprehensive income (loss) before reclassifications | 20 | (246) | (17) | (7) | ||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||||
Net-current period other comprehensive income (loss) | 20 | (246) | (17) | (7) | ||||
Ending balance | 66 | 203 | 66 | 203 | ||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | (1,212) | (750) | (1,240) | (780) | ||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income | (64) | [1] | (15) | [1] | (92) | [2] | (45) | [2] |
Net-current period other comprehensive income (loss) | 64 | 15 | 92 | 45 | ||||
Ending balance | (1,148) | (735) | (1,148) | (735) | ||||
Accumulated Translation Adjustment [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | (1) | 111 | 21 | 100 | ||||
Other comprehensive income (loss) before reclassifications | 40 | (53) | 18 | (42) | ||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | ||||
Net-current period other comprehensive income (loss) | 40 | (53) | 18 | (42) | ||||
Ending balance | $ 39 | $ 58 | $ 39 | $ 58 | ||||
[1] | This component of accumulated other comprehensive income is included in the computation of net periodic pension cost for the three months ended September 30, 2015 and 2014. | |||||||
[2] | This component of accumulated other comprehensive income is included in the computation of net periodic pension cost for the nine months ended September 30, 2015 and 2014. |
STOCK PLANS AND SHARE-BASED C36
STOCK PLANS AND SHARE-BASED COMPENSATION (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Sep. 30, 2015USD ($)Planpurchaseperiods$ / sharesshares | Sep. 30, 2014USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based compensation plans | Plan | 2 | |||
Allocated stock-based compensation expense | $ 3,361,000 | $ 2,580,000 | $ 11,502,000 | $ 10,670,000 |
Equity Incentive Plan 2007 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for future issuance (in shares) | shares | 6,377,504 | 6,377,504 | ||
Employee Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for future issuance (in shares) | shares | 191,735 | 191,735 | ||
Maximum percentage of employee's compensation eligible for payroll deductions | 15.00% | 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 | purchaseperiods | 1 | |||
Shares reserved for issuance (in shares) | shares | 3,000,000 | 3,000,000 | ||
Employee shares purchased under employee stock purchase plan (in shares) | shares | 2,808,265 | 2,808,265 | ||
Allocated stock-based compensation expense | $ 300,000 | 400,000 | $ 900,000 | 900,000 |
Duration of each purchase period in each offering period | 6 months | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Allocated stock-based compensation expense | $ 3,200,000 | $ 2,800,000 | $ 9,500,000 | $ 8,400,000 |
Reduction in number of shares available for issuance under the 2007 Plan per award granted (in shares) | shares | 2 | |||
Granted shares (in shares) | shares | 302,000 | |||
Weighted-average grant date fair value per granted share (in dollars per share) | $ / shares | $ 42.65 | $ 58.03 | $ 49.90 | $ 51.30 |
Grant date fair value of awards released | $ 400,000 | $ 500,000 | $ 10,900,000 | $ 10,000,000 |
Performance Based Awards (PSUs) [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 (in shares) | shares | 2 | |||
Granted shares (in shares) | shares | 88,000 | |||
Weighted-average grant date fair value per granted share (in dollars per share) | $ / shares | $ 37.81 | $ 0 | $ 52.39 | $ 53.93 |
Grant date fair value of awards released | $ 0 | $ 0 | $ 0 | $ 3,200,000 |
Number of performance-based awards shares released as percentage of target number, minimum | 0.00% | |||
Number of performance-based awards shares released as percentage of target number, maximum | 200.00% | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 48 months | |||
Awards expiration period, maximum (in years) | 10 years | |||
Allocated stock-based compensation expense | 100,000 | 200,000 | $ 500,000 | 1,000,000 |
Intrinsic Value of Options Exercised | 300,000 | 1,800,000 | 2,400,000 | 8,700,000 |
Performance Based Awards and Long Term Performance based Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated stock-based compensation expense | $ (200,000) | $ (800,000) | $ 600,000 | $ 400,000 |
Long-Term Performance-based Awards (PRSUs) [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 (in shares) | shares | 2 | |||
Granted shares (in shares) | shares | 0 | 0 | 72,000 | |
Weighted-average grant date fair value per granted share (in dollars per share) | $ / shares | $ 52.47 | $ 56.15 | ||
Service period to receive shares | 3 years | |||
Number of performance-based awards shares released as percentage of target number, minimum | 0.00% | |||
Number of performance-based awards shares released as percentage of target number, maximum | 200.00% | |||
Equity Incentive Plan 2007 [Member] | Incentive Stock Options [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% | |||
Equity Incentive Plan 2007 [Member] | Nonstatutory Stock Options [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% | |||
Directors Equity Compensation Program [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Factor used to determine the number of options/units to be granted | $ 100,000 | |||
Directors Equity Compensation Program [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Factor used to determine the number of options/units to be granted | 100,000 | |||
Directors Equity Compensation Program [Member] | Stock Options and Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Factor used to determine the number of options/units to be granted | $ 100,000 |
STOCK PLANS AND SHARE-BASED C37
STOCK PLANS AND SHARE-BASED COMPENSATION (Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | $ 3,361 | $ 2,580 | $ 11,502 | $ 10,670 |
Unrecognized Compensation Expense for Unvested Awards | 25,574 | 25,574 | ||
Stock Options [Member] | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 100 | 200 | 500 | 1,000 |
Unrecognized Compensation Expense for Unvested Awards | 296 | $ 296 | ||
Weighted Average Remaining Recognition Period (in years) | 6 months 25 days | |||
Performance Based Awards (PSUs) [Member] | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Unrecognized Compensation Expense for Unvested Awards | 189 | $ 189 | ||
Weighted Average Remaining Recognition Period (in years) | 3 months | |||
Long-Term Performance-based Awards (PRSUs) [Member] | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Unrecognized Compensation Expense for Unvested Awards | 606 | $ 606 | ||
Weighted Average Remaining Recognition Period (in years) | 1 year 9 months 22 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 3,200 | 2,800 | $ 9,500 | 8,400 |
Unrecognized Compensation Expense for Unvested Awards | 24,049 | $ 24,049 | ||
Weighted Average Remaining Recognition Period (in years) | 2 years 5 months 15 days | |||
Employee Stock [Member] | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 300 | 400 | $ 900 | 900 |
Unrecognized Compensation Expense for Unvested Awards | 434 | $ 434 | ||
Weighted Average Remaining Recognition Period (in years) | 4 months 2 days | |||
Cost of revenues [Member] | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 219 | 131 | $ 725 | 648 |
Research and development [Member] | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 1,277 | 971 | 3,974 | 3,522 |
Sales and marketing [Member] | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 877 | 779 | 2,767 | 2,578 |
General and administrative [Member] | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | $ 988 | $ 699 | $ 4,036 | $ 3,922 |
STOCK PLANS AND SHARE-BASED C38
STOCK PLANS AND SHARE-BASED COMPENSATION (Fair Value Assumptions) (Details) - Employee Stock [Member] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.17% | 0.05% | 0.13% | |
Risk-Free Interest Rate, Minimum | 0.05% | |||
Risk-Free Interest Rate, Maximum | 0.07% | |||
Expected volatility rate | 26.00% | 48.00% | 29.00% | |
Expected Volatility Rate, Minimum | 30.00% | |||
Expected Volatility Rate, Maximum | 48.00% | |||
Expected dividend yield | 1.20% | 0.85% | 1.08% | |
Expected Dividend Yield, Minimum | 0.66% | |||
Expected Dividend Yield, Maximum | 0.85% | |||
Expected term of purchase right (in years) | 6 months | 6 months | 6 months | 6 months |
Weighted-average estimated fair value of purchase rights | $ 8.41 | $ 15.25 | $ 10.18 | $ 14.40 |
STOCK PLANS AND SHARE-BASED C39
STOCK PLANS AND SHARE-BASED COMPENSATION (Option Activity) (Details) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Option activity under the Plans | |
Outstanding at January 1, 2015 (in shares) | 1,344 |
Granted (in shares) | 0 |
Exercised (in shares) | (96) |
Forfeited or expired (in shares) | (2) |
Outstanding at September 30, 2015 (in shares) | 1,246 |
Exercisable at September 30, 2015 (in shares) | 1,228 |
Vested and expected to vest at September 30, 2015 (in shares) | 1,246 |
Weighted- Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 27.27 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 25.29 |
Forfeited or expired (in dollars per share) | $ / shares | 37.97 |
Outstanding at period end (in dollars per share) | $ / shares | 27.39 |
Exercisable at period end (in dollars per share) | $ / shares | 27.17 |
Vested and expected to vest at period end (in dollars per share) | $ / shares | $ 27.39 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding, weighted-average remaining contractual term at period end | 2 years 10 months 28 days |
Exercisable, weighted-average remaining contractual term, at Period-end | 2 years 10 months 10 days |
Vested and expected to vest, weighted-average remaining contractual term, at period end | 2 years 10 months 28 days |
Aggregate Intrinsic Value (in thousands) | |
Outstanding, aggregate intrinsic value at period end | $ | $ 18,463 |
Exercisable, aggregate intrinsic value, at period end | $ | 18,463 |
Vested and expected to vest, aggregate intrinsic value, at Period-end | $ | $ 18,463 |
STOCK PLANS AND SHARE-BASED C40
STOCK PLANS AND SHARE-BASED COMPENSATION (Performance-based Awards and Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Performance Based Awards (PSUs) [Member] | ||||
Shares | ||||
Outstanding at beginning of period (in shares) | 0 | |||
Granted shares (in shares) | 88,000 | |||
Vested (in shares) | 0 | |||
Change in units due to performance achievement for PSUs vested in the year (in shares) | 0 | |||
Forfeited or expired (in shares) | (1,000) | |||
Outstanding at period end (in shares) | 87,000 | 87,000 | ||
Outstanding and expected to vest at period end (in shares) | 12,000 | 12,000 | ||
Weighted- Average Grant Date Fair Value Per Share | ||||
Outstanding at beginning of period (in dollars per share) | $ 0 | |||
Granted (in dollars per share) | $ 37.81 | $ 0 | 52.39 | $ 53.93 |
Vested (in dollars per share) | 0 | |||
Change in units due to performance achievement for PSUs vested in the year (in dollars per share) | 0 | |||
Forfeited or expired (in dollars per share) | 50.79 | |||
Outstanding at period end (in dollars per share) | $ 52.41 | $ 52.41 | ||
Weighted-Average Remaining Contractual Term (in years) | ||||
Outstanding and expected to vest, weighted-average remaining contractual term, at period end | 3 months | |||
Outstanding and expected to vest, weighted-average remaining contractual term, at period end | 3 months | |||
Aggregate Intrinsic Value (in thousands) | ||||
Outstanding, aggregate intrinsic value, at period end | $ 3,684 | $ 3,684 | ||
Outstanding and expected to vest, aggregate intrinsic value, at period end | $ 516 | $ 516 | ||
Long-Term Performance-based Awards (PRSUs) [Member] | ||||
Shares | ||||
Outstanding at beginning of period (in shares) | 61,000 | |||
Granted shares (in shares) | 0 | 0 | 72,000 | |
Vested (in shares) | 0 | |||
Forfeited or expired (in shares) | (4,000) | |||
Outstanding at period end (in shares) | 129,000 | 129,000 | ||
Outstanding and expected to vest at period end (in shares) | 17,000 | 17,000 | ||
Weighted- Average Grant Date Fair Value Per Share | ||||
Outstanding at beginning of period (in dollars per share) | $ 55.51 | |||
Granted (in dollars per share) | 52.47 | 56.15 | ||
Vested (in dollars per share) | 0 | |||
Forfeited or expired (in dollars per share) | 57.76 | |||
Outstanding at period end (in dollars per share) | $ 53.75 | $ 53.75 | ||
Weighted-Average Remaining Contractual Term (in years) | ||||
Outstanding and expected to vest, weighted-average remaining contractual term, at period end | 1 year 9 months 22 days | |||
Outstanding and expected to vest, weighted-average remaining contractual term, at period end | 1 year 9 months 15 days | |||
Aggregate Intrinsic Value (in thousands) | ||||
Outstanding, aggregate intrinsic value, at period end | $ 5,427 | $ 5,427 | ||
Outstanding and expected to vest, aggregate intrinsic value, at period end | $ 724 | $ 724 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Shares | ||||
Outstanding at beginning of period (in shares) | 692,000 | |||
Granted shares (in shares) | 302,000 | |||
Vested (in shares) | (257,000) | |||
Forfeited or expired (in shares) | (48,000) | |||
Outstanding at period end (in shares) | 689,000 | 689,000 | ||
Outstanding and expected to vest at period end (in shares) | 636,000 | 636,000 | ||
Weighted- Average Grant Date Fair Value Per Share | ||||
Outstanding at beginning of period (in dollars per share) | $ 43.86 | |||
Granted (in dollars per share) | $ 42.65 | $ 58.03 | 49.90 | $ 51.30 |
Vested (in dollars per share) | 42.49 | |||
Forfeited or expired (in dollars per share) | 45.55 | |||
Outstanding at period end (in dollars per share) | $ 46.90 | $ 46.90 | ||
Weighted-Average Remaining Contractual Term (in years) | ||||
Outstanding and expected to vest, weighted-average remaining contractual term, at period end | 1 year 5 months 15 days | |||
Outstanding and expected to vest, weighted-average remaining contractual term, at period end | 1 year 4 months 25 days | |||
Aggregate Intrinsic Value (in thousands) | ||||
Outstanding, aggregate intrinsic value, at period end | $ 29,073 | $ 29,073 | ||
Outstanding and expected to vest, aggregate intrinsic value, at period end | $ 26,804 | $ 26,804 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 108,538 | $ 117,945 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 11,742 | 3,370 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 96,796 | 114,575 |
Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 18,019 | |
Commercial paper [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | |
Commercial paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 18,019 | |
Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 11,742 | 3,370 |
Money market funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 11,742 | 3,370 |
Money market funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Corporate securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate securities | 78,777 | 114,575 |
Corporate securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate securities | 0 | 0 |
Corporate securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate securities | $ 78,777 | $ 114,575 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 18,661 | $ 21,127 |
Work-in-process | 14,659 | 14,643 |
Finished goods | 22,119 | 28,255 |
Total | $ 55,439 | $ 64,025 |
GOODWILL AND INTANGIBLE ASSET43
GOODWILL AND INTANGIBLE ASSETS (Finite Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Aug. 31, 2015 | Jan. 02, 2015 | Dec. 31, 2014 | |
Intangible Assets, Net[Abstract] | |||||||
Finite-Lived Intangible Assets, Gross | $ 68,460 | $ 68,460 | $ 58,780 | ||||
Amortization of intangibles | 1,700 | $ 1,300 | 5,247 | $ 4,723 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (28,503) | (28,503) | (23,256) | ||||
Finite-Lived Intangible Assets, Net | 39,957 | 39,957 | 35,524 | ||||
Internet Domain Names [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Indefinite-Lived Intangible Assets | 1,261 | 1,261 | 1,261 | ||||
In Process Research and Development [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Finite-Lived Intangible Assets, Gross | 4,690 | 4,690 | 4,690 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 | 0 | ||||
Finite-Lived Intangible Assets, Net | 4,690 | 4,690 | 4,690 | ||||
Technology licenses [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Finite-Lived Intangible Assets, Gross | 3,000 | 3,000 | 3,000 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (2,850) | (2,850) | (2,625) | ||||
Finite-Lived Intangible Assets, Net | 150 | 150 | 375 | ||||
Patents [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Finite-Lived Intangible Assets, Gross | 1,949 | 1,949 | 1,949 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (1,949) | (1,949) | (1,949) | ||||
Finite-Lived Intangible Assets, Net | 0 | 0 | 0 | ||||
Developed technology [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Finite-Lived Intangible Assets, Gross | 33,270 | 33,270 | 26,670 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (10,708) | (10,708) | (7,828) | ||||
Finite-Lived Intangible Assets, Net | 22,562 | 22,562 | 18,842 | ||||
Customer relationships [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Finite-Lived Intangible Assets, Gross | 20,030 | 20,030 | 17,610 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (9,366) | (9,366) | (7,254) | ||||
Finite-Lived Intangible Assets, Net | 10,664 | 10,664 | 10,356 | ||||
Trade Names [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Finite-Lived Intangible Assets, Gross | 3,600 | 3,600 | 3,600 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (3,600) | (3,600) | (3,600) | ||||
Finite-Lived Intangible Assets, Net | 0 | 0 | 0 | ||||
Leases, Acquired-in-Place [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Finite-Lived Intangible Assets, Gross | 660 | 660 | 0 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (30) | (30) | 0 | ||||
Finite-Lived Intangible Assets, Net | $ 630 | $ 630 | $ 0 | ||||
Minimum [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Estimated Useful Life (in years) | 2 years | ||||||
Maximum [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Estimated Useful Life (in years) | 12 years | ||||||
Cambridge Semiconductor Limited [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 9,020 | ||||||
Cambridge Semiconductor Limited [Member] | Developed technology [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 6,600 | ||||||
Cambridge Semiconductor Limited [Member] | Developed technology [Member] | Minimum [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Estimated Useful Life (in years) | 3 years | ||||||
Cambridge Semiconductor Limited [Member] | Developed technology [Member] | Maximum [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Estimated Useful Life (in years) | 7 years | ||||||
Cambridge Semiconductor Limited [Member] | Customer relationships [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Estimated Useful Life (in years) | 5 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,420 | ||||||
Building [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Estimated Useful Life (in years) | 2 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 700 | ||||||
Building [Member] | Leases, Acquired-in-Place [Member] | |||||||
Intangible Assets, Net[Abstract] | |||||||
Estimated Useful Life (in years) | 2 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 700 |
GOODWILL AND INTANGIBLE ASSET44
GOODWILL AND INTANGIBLE ASSETS Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance at December 31, 2014 | $ 80,599 |
Goodwill acquired during the period | 11,250 |
Ending balance at September 30, 2015 | $ 91,849 |
GOODWILL AND INTANGIBLE ASSET45
GOODWILL AND INTANGIBLE ASSETS (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
2015 (remaining 3 months) | $ 1,792 | ||
2,016 | 6,663 | ||
2,017 | 6,084 | ||
2,018 | 5,152 | ||
2,019 | 4,753 | ||
Thereafter | 9,562 | ||
Total | [1] | 34,006 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 68,460 | $ 58,780 | |
In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 4,690 | $ 4,690 | |
[1] | The total above excludes $4.7 million of in-process research and development that will be amortized, upon completion of development, over the estimated useful life of the technology. |
SIGNIFICANT CUSTOMERS AND INT46
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES (Customer and Credit Risk Concentration) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015Customer | Sep. 30, 2014Customer | Sep. 30, 2015SegmentCustomer | Sep. 30, 2014Customer | Dec. 31, 2014Customer | |
Concentration Risk [Line Items] | |||||
Number of end-markets from which revenue is recognized | Segment | 4 | ||||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | 1 | 1 | 1 | 1 | |
Concentration risk percentage benchmark | 10.00% | 10.00% | 10.00% | 10.00% | |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of total net revenues | 20.00% | 19.00% | 21.00% | 20.00% | |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of total net revenues | 11.00% | ||||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Ten Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | 10 | 10 | 10 | 10 | |
Concentration risk, percentage of total net revenues | 64.00% | 59.00% | 61.00% | 59.00% | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | 10 | 10 | |||
Concentration risk percentage benchmark for accounts receivable (more than) | 10.00% | 10.00% | 10.00% | ||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage benchmark | 23.00% | 22.00% | |||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage benchmark | 12.00% | ||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Ten Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage benchmark | 65.00% | 66.00% | |||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer Three [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage benchmark | 11.00% |
SIGNIFICANT CUSTOMERS AND INT47
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES (International Sales) (Details) - Sales Revenue, Goods, Net [Member] - Geographic Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue from External Customers [Line Items] | ||||
Concentration risk, percentage of total net revenues | 95.00% | 96.00% | 95.00% | 95.00% |
Hong Kong/China | ||||
Revenue from External Customers [Line Items] | ||||
Concentration risk, percentage of total net revenues | 49.00% | 47.00% | 49.00% | 46.00% |
Taiwan | ||||
Revenue from External Customers [Line Items] | ||||
Concentration risk, percentage of total net revenues | 15.00% | 16.00% | 14.00% | 16.00% |
Korea | ||||
Revenue from External Customers [Line Items] | ||||
Concentration risk, percentage of total net revenues | 10.00% | 11.00% | 10.00% | 11.00% |
Western Europe (excluding Germany) | ||||
Revenue from External Customers [Line Items] | ||||
Concentration risk, percentage of total net revenues | 11.00% | 11.00% | 11.00% | 11.00% |
Japan | ||||
Revenue from External Customers [Line Items] | ||||
Concentration risk, percentage of total net revenues | 4.00% | 5.00% | 5.00% | 5.00% |
Germany | ||||
Revenue from External Customers [Line Items] | ||||
Concentration risk, percentage of total net revenues | 3.00% | 2.00% | 3.00% | 2.00% |
Other | ||||
Revenue from External Customers [Line Items] | ||||
Concentration risk, percentage of total net revenues | 3.00% | 4.00% | 3.00% | 4.00% |
SIGNIFICANT CUSTOMERS AND INT48
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES (Product Sales) (Details) - Product Concentration Risk [Member] - Sales Revenue, Goods, Net [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Communications [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage of total net revenues | 26.00% | 18.00% | 23.00% | 17.00% |
Computer [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage of total net revenues | 7.00% | 11.00% | 7.00% | 11.00% |
Consumer [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage of total net revenues | 36.00% | 36.00% | 37.00% | 37.00% |
Industrial [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration risk, percentage of total net revenues | 31.00% | 35.00% | 33.00% | 35.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Basic earnings per share: | |||||
NET INCOME | $ 11,513 | $ 16,111 | $ 26,446 | $ 45,190 | |
Weighted-average common shares | 28,855,000 | 30,013,000 | 29,175,000 | 30,186,000 | |
Basic earnings per share | $ 0.40 | $ 0.54 | $ 0.91 | $ 1.50 | |
Diluted earnings per share: | |||||
NET INCOME | $ 11,513 | $ 16,111 | $ 26,446 | $ 45,190 | |
Weighted-average common shares | 28,855,000 | 30,013,000 | 29,175,000 | 30,186,000 | |
Effect of dilutive awards: | |||||
Employee stock plans | 443,000 | 744,000 | 681,000 | 867,000 | |
Diluted weighted-average common shares | 29,298,000 | 30,757,000 | 29,856,000 | 31,053,000 | |
Diluted earnings per share | [1] | $ 0.39 | $ 0.52 | $ 0.89 | $ 1.46 |
Stock awards excluded in the computation of diluted earnings per share | 69,000 | 0 | 8,000 | 0 | |
[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 the shares underlying the 2015 and 2014 awards in the 2015 and 2014 calculations, respectively, as those shares were not contingently issuable as of the end of the period. |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 5.70% | 6.60% | 6.10% | (0.90%) | |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | |
Operating Loss Carryforwards [Line Items] | |||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 4.1 | ||||
Internal Revenue Service (IRS) [Member] | Tax Years 2007 through 2009 [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ (3.3) | ||||
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Years 2007 through 2009 [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | (2.8) | ||||
State and Local Jurisdiction [Member] | Internal Revenue Service (IRS) [Member] | Tax Years 2007 through 2009 [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ (0.5) |
ACQUISITIONS (Text Disclosures)
ACQUISITIONS (Text Disclosures) (Details) - USD ($) $ in Thousands | Jan. 02, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Aug. 31, 2015 |
Business Acquisition [Line Items] | ||||
Notes, Loans and Financing Receivable, Net, Current | $ 6,600 | $ 0 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||
Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 12 years | |||
Cambridge Semiconductor Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 16,700 | |||
Consideration applied against outstanding loan | $ 6,600 | |||
Acquisition related costs | 800 | 200 | ||
Business Combination, Consideration Transferred | $ 23,300 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 9,020 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (2,922) | |||
Cambridge Semiconductor Limited [Member] | Developed technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 6,600 | |||
Cambridge Semiconductor Limited [Member] | Developed technology [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||
Cambridge Semiconductor Limited [Member] | Developed technology [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 7 years | |||
Cambridge Semiconductor Limited [Member] | Customer relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Finite-Lived Intangible Asset, Reacquisition of Customer Relationship Term | 2 years | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,420 | |||
Building [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 10,400 | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land | $ 3,500 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings | 6,300 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 700 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ (100) | |||
Property, Plant and Equipment, Useful Life | 30 years | |||
Cambridge Semiconductor Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Notes, Loans and Financing Receivable, Net, Current | $ 6,600 |
ACQUISITIONS (Purchase Price an
ACQUISITIONS (Purchase Price and Estimated Fair Values) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Aug. 31, 2015 | Jan. 02, 2015 | Dec. 31, 2014 |
Assets Acquired | ||||
Goodwill | $ 91,849 | $ 80,599 | ||
Cambridge Semiconductor Limited [Member] | ||||
Assets Acquired | ||||
Cash | $ 1,134 | |||
Accounts receivable | 1,891 | |||
Inventories | 1,409 | |||
Prepaid expenses and other current assets | 408 | |||
Tax receivable | 1,093 | |||
Intangible assets | 9,020 | |||
Goodwill | 11,250 | |||
Total assets acquired | 26,205 | |||
Liabilities Assumed | ||||
Current liabilities | 1,832 | |||
Taxes payable | 1,090 | |||
Total liabilities assumed | 2,922 | |||
Total purchase price | 23,283 | |||
Cambridge Semiconductor Limited [Member] | Developed technology [Member] | ||||
Assets Acquired | ||||
Intangible assets | 6,600 | |||
Cambridge Semiconductor Limited [Member] | Customer relationships [Member] | ||||
Assets Acquired | ||||
Intangible assets | $ 2,420 | |||
Building [Member] | ||||
Assets Acquired | ||||
Intangible assets | $ 700 | |||
Liabilities Assumed | ||||
Total liabilities assumed | $ 100 |
LEGAL PROCEEDINGS AND CONTING53
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions | May. 01, 2012patent | Feb. 28, 2014USD ($) | Feb. 28, 2011USD ($) | May. 31, 2010patent | Feb. 28, 2010USD ($)patent | Dec. 31, 2009patent | Nov. 30, 2009patent | Dec. 31, 2008USD ($) | Nov. 30, 2008patent | May. 31, 2008patent | Oct. 31, 2006USD ($) | Oct. 31, 2004patent | Sep. 30, 2015 | Dec. 31, 2012patent | Sep. 30, 2015USD ($) |
Gain and Loss Contingencies [Line Items] | |||||||||||||||
Loss Contingency, Damages Awarded, Value | $ | $ 2.4 | ||||||||||||||
Patent Infringment Claim Five [Member] | 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 | ||||||||||||||
Potential impact on revenue by patent litigation (as a percentage) | 0.30% | ||||||||||||||
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 withdrawn from infringement claims | 1 | ||||||||||||||
Number of Patents Added to 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 | ||||||||||||||
Positive Outcome of Litigation [Member] | Patent Infringement Claim One [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 | ||||||||||||
Positive Outcome of Litigation [Member] | Patent Infringement Claim Two [Member] | |||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||
Number of patents in filed infringement claims | 3 | ||||||||||||||
Positive Outcome of Litigation [Member] | Patent Infringement Claim Three [Member] | |||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||
Number of patents in filed infringement claims | 2 | ||||||||||||||
Damages awarded to the Company | $ | $ 105 | ||||||||||||||
Number of patents in infringement case deemed unenforceable by Fairchild | 1 |
BANK LINE OF CREDIT (Details)
BANK LINE OF CREDIT (Details) | Sep. 30, 2015USD ($) | Jul. 05, 2012USD ($)bank |
Line of Credit Facility [Line Items] | ||
Number of banks used for Credit Agreement | bank | 2 | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Agreement, maximum borrowing capacity | $ 100,000,000 | |
Letters of credit outstanding | $ 0 | |
Credit agreement outstanding | $ 0 | |
Line of credit sublimit for issuance of letters of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Agreement, maximum borrowing capacity | $ 20,000,000 |