Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document 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-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 29,415,049 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,200 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 62,134 | $ 90,092 |
Short-term marketable securities | 188,323 | 83,769 |
Accounts receivable, net of allowance of $525 and $318 in 2016 and 2015, respectively | 6,961 | 7,818 |
Inventories | 52,564 | 51,934 |
Prepaid expenses and other current assets | 8,520 | 6,790 |
Total current assets | 318,502 | 240,403 |
PROPERTY AND EQUIPMENT, net | 95,296 | 99,381 |
INTANGIBLE ASSETS, net | 31,502 | 38,165 |
GOODWILL | 91,849 | 91,849 |
DEFERRED TAX ASSETS | 12,032 | 11,843 |
OTHER ASSETS | 6,157 | 5,896 |
Total assets | 555,338 | 487,537 |
CURRENT LIABILITIES: | ||
Accounts payable | 29,727 | 21,660 |
Accrued payroll and related expenses | 10,756 | 9,327 |
Taxes payable | 729 | 3,620 |
Deferred income on sales to distributors | 16,207 | 15,101 |
Other accrued liabilities | 2,434 | 2,285 |
Total current liabilities | 59,853 | 51,993 |
LONG-TERM INCOME TAXES PAYABLE | 2,639 | 2,511 |
DEFERRED TAX LIABILITIES | 820 | 1,291 |
OTHER LIABILITIES | 3,921 | 3,123 |
Total liabilities | 67,233 | 58,918 |
COMMITMENTS AND CONTINGENCIES (NOTES 8, 9 and 10) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.001 par value Authorized - 140,000,000 shares Outstanding - 29,249,635 and 28,652,178 shares in 2016 and 2015, respectively | 28 | 28 |
Additional paid-in capital | 172,875 | 145,366 |
Accumulated other comprehensive loss | (2,710) | (1,851) |
Retained earnings | 317,912 | 285,076 |
Total stockholders’ equity | 488,105 | 428,619 |
Total liabilities and stockholders’ equity | $ 555,338 | $ 487,537 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 525 | $ 318 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares outstanding | 29,249,635 | 28,652,178 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Statement [Abstract] | ||||
NET REVENUES | $ 387,393 | $ 343,989 | $ 348,797 | |
COST OF REVENUES | 196,232 | 170,602 | 159,227 | |
GROSS PROFIT | 191,161 | 173,387 | 189,570 | |
OPERATING EXPENSES: | ||||
Research and development | 62,310 | 57,549 | 54,981 | |
Sales and marketing | 47,978 | 46,816 | 47,796 | |
General and administrative | 33,029 | 30,029 | 30,997 | |
Total operating expenses | 143,317 | 134,394 | 133,774 | |
INCOME FROM OPERATIONS | 47,844 | 38,993 | 55,796 | |
OTHER INCOME: | ||||
OTHER INCOME | 1,078 | 425 | 1,018 | |
INCOME BEFORE INCOME TAXES | 48,922 | 39,418 | 56,814 | |
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 1,032 | 271 | (2,730) | |
NET INCOME | $ 47,890 | $ 39,147 | $ 59,544 | |
EARNINGS PER SHARE: | ||||
Basic (per share) | $ 1.66 | $ 1.35 | $ 1.99 | |
Diluted (per share) | [1] | $ 1.62 | $ 1.32 | $ 1.93 |
SHARES USED IN PER SHARE CALCULATION: | ||||
Basic (in shares) | 28,925 | 29,001 | 29,976 | |
Diluted (in shares) | [1] | 29,619 | 29,696 | 30,829 |
[1] | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included in the 2016 and 2015 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 47,890 | $ 39,147 | $ 59,544 |
Other comprehensive income: | |||
Foreign currency translation adjustments, net of $0 tax in 2016, 2015 and 2014 | (384) | (191) | (79) |
Unrealized loss on marketable securities, net of $0 tax in 2016, 2015 and 2014 | (123) | (180) | (127) |
Unrealized actuarial loss on pension benefits, net of tax of $98, $96 and $128 in 2016, 2015 and 2014, respectively | (352) | (344) | (460) |
Total other comprehensive loss | (859) | (715) | (666) |
Total comprehensive income | 47,031 | 38,432 | 58,878 |
Foreign currency translation adjustment, tax | 0 | 0 | 0 |
Unrealized gain on marketable securities, tax | 0 | 0 | 0 |
Unrealized actuarial loss on pension benefits, tax | $ 98 | $ 96 | $ 128 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Employee Stock Options and Awards [Member] | Employee Stock Purchases [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Employee Stock Options and Awards [Member] | Additional Paid-In Capital [Member]Employee Stock Purchases [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] |
Beginning Balance (in shares) at Dec. 31, 2013 | 30,022 | ||||||||
Beginning Balance at Dec. 31, 2013 | $ 436,686 | $ 30 | $ 223,660 | $ (470) | $ 213,466 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 697 | ||||||||
Issuance of common stock under employee stock option and stock award plans | 9,571 | $ 0 | 9,571 | ||||||
Repurchase of common stock (in shares) | (1,603) | ||||||||
Repurchase of common stock | (80,761) | $ (1) | (80,760) | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 92 | ||||||||
Issuance of common stock under employee stock purchase plan | 4,284 | 4,284 | |||||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | 815 | 815 | |||||||
Stock-based compensation expense | $ 12,983 | $ 1,385 | $ 12,983 | $ 1,385 | |||||
Payment of dividends to stockholders | (13,165) | (13,165) | |||||||
Unrealized actuarial loss on pension benefits, net of tax | (460) | (460) | |||||||
Unrealized gain (loss) on marketable securities, | (127) | (127) | |||||||
Translation adjustment | (79) | (79) | |||||||
Net income | 59,544 | 59,544 | |||||||
Ending Balance (in shares) at Dec. 31, 2014 | 29,208 | ||||||||
Ending Balance at Dec. 31, 2014 | 430,676 | $ 29 | 171,938 | (1,136) | 259,845 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 578 | ||||||||
Issuance of common stock under employee stock option and stock award plans | 8,133 | $ 0 | 8,133 | ||||||
Repurchase of common stock (in shares) | (1,250) | ||||||||
Repurchase of common stock | (53,731) | $ (1) | (53,730) | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 117 | ||||||||
Issuance of common stock under employee stock purchase plan | 4,447 | 4,447 | |||||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | (189) | (189) | |||||||
Stock-based compensation expense | 13,562 | 1,205 | 13,562 | 1,205 | |||||
Payment of dividends to stockholders | (13,916) | (13,916) | |||||||
Unrealized actuarial loss on pension benefits, net of tax | (344) | (344) | |||||||
Unrealized gain (loss) on marketable securities, | (180) | (180) | |||||||
Translation adjustment | (191) | (191) | |||||||
Net income | 39,147 | 39,147 | |||||||
Ending Balance (in shares) at Dec. 31, 2015 | 28,653 | ||||||||
Ending Balance at Dec. 31, 2015 | 428,619 | $ 28 | 145,366 | (1,851) | 285,076 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 615 | ||||||||
Issuance of common stock under employee stock option and stock award plans | 8,479 | $ 0 | 8,479 | ||||||
Repurchase of common stock (in shares) | (146) | ||||||||
Repurchase of common stock | (6,435) | $ 0 | (6,435) | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 128 | ||||||||
Issuance of common stock under employee stock purchase plan | 4,580 | 4,580 | |||||||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | 0 | ||||||||
Stock-based compensation expense | $ 19,599 | $ 1,286 | $ 19,599 | $ 1,286 | |||||
Payment of dividends to stockholders | (15,054) | (15,054) | |||||||
Unrealized actuarial loss on pension benefits, net of tax | (352) | (352) | |||||||
Unrealized gain (loss) on marketable securities, | (123) | (123) | |||||||
Translation adjustment | (384) | (384) | |||||||
Net income | 47,890 | 47,890 | |||||||
Ending Balance (in shares) at Dec. 31, 2016 | 29,250 | ||||||||
Ending Balance at Dec. 31, 2016 | $ 488,105 | $ 28 | $ 172,875 | $ (2,710) | $ 317,912 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 47,890 | $ 39,147 | $ 59,544 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 16,812 | 16,464 | 15,884 |
Amortization of intangibles | 6,663 | 7,039 | 6,072 |
Loss on disposal of property and equipment | 332 | 361 | 250 |
Stock-based compensation expense | 20,885 | 14,767 | 14,282 |
Accretion (Amortization) of Discounts and Premiums, Investments | 555 | 1,063 | 1,694 |
Deferred income taxes | (660) | (5,416) | 157 |
Allowance for Doubtful Accounts Receivable, Period Increase (Decrease) | 207 | 127 | 70 |
Excess tax benefit from employee stock plans | 0 | 0 | (437) |
Tax (Shortfall) Benefit Associated With Employee Stock Plans | 0 | (189) | 815 |
Change in operating assets and liabilities: | |||
Accounts receivable | 650 | 4,131 | 2,133 |
Inventories | (630) | 13,500 | (21,703) |
Prepaid expenses and other assets | (2,499) | 3,391 | 8,211 |
Accounts payable | 7,714 | (2,000) | 2,337 |
Taxes payable and accrued liabilities | (1,124) | (76) | (3,242) |
Deferred income on sales to distributors | 1,106 | (122) | (505) |
Net cash provided by operating activities | 97,901 | 92,187 | 85,562 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (12,198) | (11,359) | (23,071) |
Other assets | 0 | 0 | (1,261) |
Payment for purchase of building (Note 11) | 0 | (10,389) | 0 |
Payment for acquisition, net of cash acquired (Note 11) | 0 | (15,549) | 0 |
Loans to third parties (Notes 11) | 0 | 0 | (6,600) |
Purchases of marketable securities | (188,654) | (29,748) | (45,269) |
Proceeds from sales and maturities of marketable securities | 83,423 | 59,309 | 38,052 |
Net cash used in investing activities | (117,429) | (7,736) | (38,149) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Issuance of common stock under employee stock plans | 13,059 | 12,580 | 13,855 |
Repurchase of common stock | (6,435) | (53,731) | (80,760) |
Payments of dividends to stockholders | (15,054) | (13,916) | (13,165) |
Excess tax benefit from employee stock plans | 0 | 0 | 437 |
Net cash used in financing activities | (8,430) | (55,067) | (79,633) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (27,958) | 29,384 | (32,220) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 90,092 | 60,708 | 92,928 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 62,134 | 90,092 | 60,708 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Unpaid property and equipment | 1,825 | 1,472 | 1,733 |
Loan applied to CamSemi purchase price (Note 11) | 0 | 6,600 | 0 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid (refund) for income taxes, net of refunds (Note 8) | $ 6,613 | $ 473 | $ (3,121) |
THE COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY [Text Block] | THE COMPANY: Power Integrations, Inc. (“Power Integrations” or the “Company”), incorporated in California on March 25, 1988, and reincorporated in Delaware in December 1997, designs, develops, manufactures and markets analog and mixed-signal integrated circuits (ICs) and other electronic components and circuitry used in high-voltage power conversion. The Company’s products are used in power converters that convert electricity from a high-voltage source (typically 48 volts or higher) to the type of power required for a specified downstream use. A large percentage of the Company’s products are ICs used in AC-DC power supplies in a wide variety of end products, primarily in the consumer, communications, computer and industrial markets. The Company also offers IGBT drivers used to operate arrays of high-voltage, high-power transistors known as IGBT modules, which are used for power conversion in high-power applications such as industrial motors, solar- and wind-power systems, electric vehicles and high-voltage DC transmission systems. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUTING POLICIES [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of all intercompany transactions and balances. Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition and allowances for receivables and inventories. These estimates are based on historical facts and various other factors, which the Company believes to be reasonable at the time the estimates are made. However, as the effects of future events cannot be determined with precision, actual results could differ significantly from management’s estimates. Cash and Cash Equivalents The Company considers cash invested in highly liquid financial instruments with maturities of three months or less at the date of purchase to be cash equivalents. Marketable Securities The Company generally holds securities until maturity; however, they may be sold under certain circumstances including, but not limited to, when necessary for the funding of acquisitions and other strategic investments. As a result the Company classifies its investment portfolio as available-for-sale. The Company classifies all investments with a maturity date greater than three months at the date of purchase as short-term marketable securities in its Consolidated Balance Sheet. As of December 31, 2016 , and December 31, 2015, the Company’s marketable securities consisted primarily of commercial paper, corporate bonds and other high-quality commercial securities. The weighted average interest rate of investments at December 31, 2016 and December 31, 2015, was approximately 1.23% and 0.84% , respectively. Amortized cost and estimated fair market value of investments classified as available-for-sale (excluding cash equivalents) at December 31, 2016 , were as follows: Amortized Gross Unrealized Estimated Fair (in thousands) Cost Gains Losses Market Value Investments due in less than 3 months: Commercial paper $ 36,996 $ — $ — $ 36,996 Corporate securities 9,342 2 (2 ) 9,342 Total 46,338 2 (2 ) 46,338 Investments due in 4-12 months: Commercial paper 19,186 — — 19,186 Corporate securities 59,714 15 (76 ) 59,653 Total 78,900 15 (76 ) 78,839 Investments due 12 months or greater: Corporate securities 63,305 21 (180 ) 63,146 Total 63,305 21 (180 ) 63,146 Total investment securities $ 188,543 $ 38 $ (258 ) $ 188,323 Amortized cost and estimated fair market value of investments classified as available-for-sale (excluding cash equivalents) at December 31, 2015 , were as follows: Amortized Gross Unrealized Estimated Fair (in thousands) Cost Gains Losses Market Value Investments due in less than 3 months: Corporate securities $ 38,586 $ 7 $ (10 ) $ 38,583 Total 38,586 7 (10 ) 38,583 Investments due in 4-12 months: Corporate securities 33,654 1 (36 ) 33,619 Total 33,654 1 (36 ) 33,619 Investments due between 12 months or greater: Corporate securities 11,626 — (59 ) 11,567 Total 11,626 — (59 ) 11,567 Total investment securities $ 83,866 $ 8 $ (105 ) $ 83,769 As of December 31, 2016, and 2015, there were no individual securities that had been in a continuous loss position for 12 months or longer. Inventories Inventories (which consist of costs associated with the purchases of wafers from domestic and offshore foundries and of packaged components from offshore assembly manufacturers, as well as internal labor and overhead associated with the testing of both wafers and packaged components) are stated at the lower of cost (first-in, first-out) or market. Provisions, when required, are made to reduce excess and obsolete inventories to their estimated net realizable values. Inventories consist of the following: (in thousands) December 31, December 31, Raw materials $ 14,610 $ 19,090 Work-in-process 15,194 12,770 Finished goods 22,760 20,074 Total $ 52,564 $ 51,934 Additional Components of the Company’s Consolidated Balance Sheet Accounts receivable: (in thousands) December 31, December 31, Accounts receivable trade $ 46,849 $ 43,622 Accrued ship and debit and rebate claims (39,363 ) (35,486 ) Allowance for doubtful accounts (525 ) (318 ) Total $ 6,961 $ 7,818 Prepaid expenses and other current assets: (in thousands) December 31, December 31, Prepaid legal fees $ 212 $ 2,023 Advance to suppliers 69 324 Prepaid income tax 2,431 309 Prepaid maintenance agreements 1,399 736 Interest receivable 743 519 Other 3,666 2,879 Total $ 8,520 $ 6,790 Property and Equipment Property and equipment consist of the following: (in thousands) December 31, 2016 December 31, 2015 Land $ 20,288 $ 20,288 Construction-in-progress 6,880 2,298 Building and improvements 52,156 51,941 Machinery and equipment 132,162 128,342 Computer software and hardware and office furniture and fixtures 45,951 43,383 257,437 246,252 Accumulated depreciation (162,141 ) (146,871 ) Total $ 95,296 $ 99,381 Depreciation expense for property and equipment for fiscal years ended December 31, 2016 , 2015 and 2014 , was approximately $16.8 million , $16.5 million and $15.9 million , respectively, and was determined using the straight-line method over the following useful lives: Building and improvements 4-40 years Machinery and equipment 2-8 years Computer software and hardware and office furniture and fixtures 4-7 years Total property and equipment (excluding accumulated depreciation) located in the United States at December 31, 2016 , 2015 and 2014 , was approximately $155.1 million , $150.1 million and $140.0 million , respectively. In each of 2016 and 2015, approximately 12% of total property and equipment (excluding accumulated depreciation) was held in Thailand by one of the Company’s subcontractors. In 2014 approximately 13% of total property and equipment was held in Thailand by one of the Company’s subcontractors. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive income (loss) for the three years ended December 31, 2016 : (in thousands) Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Foreign Currency Items Total Balance at January 1, 2014 $ 210 $ (780 ) $ 100 $ (470 ) Other comprehensive income (loss) before reclassifications (127 ) (538 ) (79 ) (744 ) Amounts reclassified from accumulated other comprehensive income (loss) — 78 (1) — 78 Other comprehensive income loss (127 ) (460 ) (79 ) (666 ) Balance at December 31, 2014 83 (1,240 ) 21 (1,136 ) Other comprehensive income (loss) before reclassifications (180 ) (469 ) (191 ) (840 ) Amounts reclassified from accumulated other comprehensive income (loss) — 125 (1) — 125 Other comprehensive loss (180 ) (344 ) (191 ) (715 ) Balance at December 31, 2015 (97 ) (1,584 ) (170 ) (1,851 ) Other comprehensive income (loss) before reclassifications (123 ) (505 ) (384 ) (1,012 ) Amounts reclassified from accumulated other comprehensive income (loss) — 153 (1) — 153 Other comprehensive loss (123 ) (352 ) (384 ) (859 ) Balance at December 31, 2016 $ (220 ) $ (1,936 ) $ (554 ) $ (2,710 ) _______________ (1) This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the years ended December 31, 2016 , 2015 and 2014 . Business Combinations The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing at the acquisition date impacting asset valuations and liabilities assumed. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. Goodwill and Intangible Assets Goodwill and the Company's domain name are evaluated in accordance with ASC 350-10, Goodwill and Other Intangible Assets, and an impairment analysis is conducted on an annual basis, or sooner if indicators exist for a potential impairment. In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets , long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Employee Benefits Plan The Company sponsors a 401(k) tax-deferred savings plan for all employees in the United States who meet certain eligibility requirements. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. The Company is not required to contribute; however, the Company contributes a certain percentage of employee annual salaries on a discretionary basis, not to exceed an established threshold. In each of 2016 , 2015 and 2014 , the Company provided for a contribution of approximately $1.1 million . Retirement Benefit Obligations (Pension) The Company recognizes the over-funded or under-funded status of a defined benefit pension or post-retirement plan as an asset or liability in the accompanying consolidated balance sheets. Actuarial gains and losses are recorded in accumulated other comprehensive loss, a component of stockholders’ equity, and are amortized as a component of net periodic cost over the remaining estimated service period of participants. Revenue Recognition Product revenues consist of sales to original equipment manufacturers (OEMs), merchant power supply manufacturers and distributors. Approximately 75% of the Company’s net product sales were made to distributors in 2016 . The Company applies the provisions of ASC 605-10, Revenue Recognition, and all related appropriate guidance. Revenue is recognized when all of the following criteria have been met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the price is fixed or determinable, and (4) collectability is reasonably assured. Customer purchase orders are generally used to determine the existence of an arrangement. Delivery is considered to have occurred when title and risk of loss have transferred to the Company’s customer. The Company evaluates whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. With respect to collectability, the Company performs credit checks for new customers and performs ongoing evaluations of its existing customers’ financial condition and requires letters of credit whenever deemed necessary. Sales to international OEMs and merchant power supply manufacturers for shipments from the Company’s facility outside of the United States are pursuant to “EX Works” (EXW) shipping terms, meaning that title to the product transfers to the customer upon shipment from the Company’s foreign warehouse. Sales to international OEM customers and merchant power supply manufacturers that are shipped from the Company’s facility in California are pursuant to “delivered at frontier” (DAF) shipping terms. As such, title to the product passes to the customer when the shipment reaches the destination country and revenue is recognized upon the arrival of the product in that country. Shipments to OEMs and merchant power supply manufacturers in the Americas are pursuant to “free on board” (FOB) point of origin shipping terms meaning that title is passed to the customer upon shipment. Revenue is recognized upon title transfer for sales to OEMs and merchant power supply manufacturers, assuming all other criteria for revenue recognition are met. Sales to most of the Company's distributors are made under terms allowing certain price adjustments and rights of return on the Company's products held by its distributors. As a result of these rights, the Company defers the recognition of revenue and the costs of revenues derived from these sales until the Company's distributors report that they have sold the Company's products to their customers. The Company's recognition of such distributor revenue is based on point of sale reports received from the distributors, at which time the price is no longer subject to adjustment and is fixed, and the products are no longer subject to return to the Company except pursuant to warranty terms. The gross profit that is deferred as a result of this policy is reflected as “deferred income on sales to distributors” in the accompanying consolidated balance sheets. The total deferred revenue as of December 31, 2016 , and December 31, 2015 , was approximately $28.1 million and $25.7 million , respectively. The total deferred cost as of December 31, 2016 , and December 31, 2015 , was approximately $11.9 million and $10.6 million , respectively. Frequently, distributors need to sell at a price lower than the standard distribution price in order to win business. At or soon after the distributor invoices its customer, the distributor submits a “ship and debit” price adjustment claim to the Company to adjust the distributor's cost from the standard price to the pre-approved lower price. After verification by the Company, a credit memo is issued to the distributor for the ship and debit claim. The Company maintains a reserve for unprocessed claims and future ship and debit price adjustments. The reserves appear as a reduction to accounts receivable and deferred income on sales to distributors in the Company's accompanying consolidated balance sheets. To the extent future ship and debit claims significantly exceed amounts estimated, there could be a material impact on the deferred revenue and deferred margin ultimately recognized. To evaluate the adequacy of its reserves, the Company analyzes historical ship and debit payments and levels of inventory in the distributor channels. Sales to certain distributors of the Company are made under terms that do not include rights of return or price concessions after the product is shipped to the distributor. Accordingly, product revenue is recognized upon shipment and title transfer assuming all other revenue recognition criteria are met. Foreign Currency Risk and Foreign Currency Translation As of December 31, 2016 , the Company’s primary transactional currency was U.S. dollars; in addition, the Company holds cash in Swiss francs and euros to fund the operations of the Company’s Swiss subsidiary. The foreign exchange rate fluctuation between the U.S. dollar versus the Swiss franc and euro is recorded in “other income” in the consolidated statements of income. Gains and losses arising from the remeasurement of non-functional currency balances are recorded in ''other income'' in the accompanying consolidated statements of income. For the years ended December 31, 2016 , 2015 and 2014 the Company realized foreign exchange transaction gains (losses) of $(0.1) million , $(0.5) million and $0.1 million , respectively. The functional currencies of the Company’s other subsidiaries are the local currencies. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rates as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Cumulative gains and losses from the translation of the foreign subsidiaries’ financial statements have been included in stockholders’ equity. Warranty The Company generally warrants that its products will substantially conform to the published specifications for 12 months from the date of shipment. The Company’s liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial, and as a result, the Company does not record a specific warranty reserve. Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $1.3 million , $1.1 million , and $1.5 million , in 2016 , 2015 and 2014 , respectively. Research and Development Research and development costs are expensed as incurred. Income Taxes Income tax expense is an estimate of current income taxes payable or refundable in the current fiscal year based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences and carry-forwards that are recognized for financial reporting and income tax purposes. The Company accounts for income taxes under the provisions of ASC 740, Income Taxe s. Under the provisions of ASC 740, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, utilizing the tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes valuation allowances to reduce any deferred tax assets to the amount that it estimates will more likely than not be realized based on available evidence and management’s judgment. The Company limits the deferred tax assets recognized related to certain officers’ compensation to amounts that it estimates will be deductible in future periods based upon Internal Revenue Code Section 162(m). In the event that the Company determines, based on available evidence and management judgment, that all or part of the net deferred tax assets will not be realized in the future, it would record a valuation allowance in the period the determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a material impact on the Company’s results of operations and financial position. Common Stock Repurchases and Common Stock Dividend In 2014 and 2015, the Company’s board of directors authorized the use of $75.0 million and $60.0 million , respectively, for repurchase of the Company’s common stock, with repurchases to be executed according to pre-defined price/volume guidelines. In 2014 , the Company purchased 1.6 million shares for approximately $80.8 million . In 2015 , the Company purchased 1.3 million shares for approximately $53.7 million . In 2016, the Company purchased 146,000 shares for approximately $6.4 million . As of December 31, 2016 , the Company had $23.6 million available for future stock repurchases. Authorization of future stock repurchase programs is at the discretion of the board of directors and will depend on the Company's financial condition, results of operations, capital requirements and business conditions as well as other factors. The following table presents the quarterly dividends declared on the Company’s common stock for the periods indicated: Year Ended December 31, 2016 2015 2014 First Quarter $ 0.13 $ 0.12 $ 0.10 Second Quarter $ 0.13 $ 0.12 $ 0.10 Third Quarter $ 0.13 $ 0.12 $ 0.12 Fourth Quarter $ 0.13 $ 0.12 $ 0.12 The Company paid a total of approximately $15.1 million , $13.9 million and $13.2 million in cash dividends during 2016 , 2015 and 2014 , respectively. In January 2017, the Company’s board of directors declared a $0.14 quarterly dividend for each quarter in 2017. The declaration of any future cash dividend is at the discretion of the board of directors and will depend on the Company’s financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that cash dividends are in the best interest of the Company’s stockholders. Indemnifications The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (DSA). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company’s products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (Customer Indemnification). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees' development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of December 31, 2016 . For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnifications. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, amending the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue from the transfer of promised goods or services to customers should be recognized in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective method). The Company is required to adopt the amendments in the first quarter of 2018; early adoption is permitted beginning January 1, 2017. The Company will early adopt the new guidance, effective on January 1, 2017, using the full retrospective method under which it would recast prior reporting periods. Under the new standards the Company will recognize all revenue on sales to distributors upon shipment and transfer of control (known as “sell-in” revenue recognition), rather than deferring recognition until distributors report that they have sold the products to their customers (known as “sell-through” revenue recognition). Currently, a high percentage of the Company’s revenues on sales to distributors are recognized on sell-through. Because this change in methodology will cause a shift in the timing of when revenue is recognized, the Company expects that the quarterly seasonal pattern of its revenues will be affected by the new standards. Based on the Company’s analysis, under the new standards annual net revenues would increase by approximately $2 million and $1 million in 2016 and 2015, respectively. In July 2015, the FASB amended the existing accounting standards for the measurement of inventory, ASU 2015-11, Inventory . The amendments require inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company is required to adopt the amendments in the first quarter of 2017. The amendments should be applied prospectively with early adoption permitted as of the beginning of an interim or annual reporting period. The Company does not expect that the adoption of these amendments will have a material impact on its consolidated financial statements. In February 2016, the FASB amended the existing accounting standards for leases, ASU 2016-02, Leases. The amendments require lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged from that applied under previous U.S. GAAP. The Company is required to adopt the amendments in the first quarter of fiscal 2019, with early adoption permitted. The amendments require a modified retrospective transition approach to recognize and measure leases at the beginning of the earliest period presented. The Company is currently evaluating the impact of these amendments and the transition alternatives on its consolidated financial statements. In March 2016, the FASB amended the existing accounting standards for stock-based compensation, ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments impact several aspects of accounting for share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company is required to adopt the amendments in the first quarter of 2017. The manner of application varies by the various provisions of the guidance, with certain provisions applied on a retrospective or modified retrospective approach, while others are applied prospectively. Upon adoption, the Company expects to recognize a windfall tax benefit of approximately $7 million to $8 million , as a cumulative effect adjustment to opening retained earnings, together with a corresponding increase in deferred tax assets. |
STOCK PLANS AND SHARE BASED COM
STOCK PLANS AND SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK PLANS AND SHARE BASED COMPENSATION [Text Block] | STOCK PLANS AND SHARE BASED COMPENSATION: Stock Plans As of December 31, 2016 , the Company had three stock-based compensation plans (the “Plans”) which are described below. 2007 Equity Incentive Plan The 2007 Equity Incentive Plan (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 (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 December 31, 2016 , the total maximum remaining number of shares that may be issued under the 2007 Plan was 3.8 million shares, which includes 0.6 million options issued but not exercised and 1.9 million awards granted but unvested. As of December 31, 2016 , 1.9 million shares of common stock remain available for future grant under the 2007 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 would receive a grant of an equity award with an aggregate value of $100,000 . At each outside director’s election, such award would consist entirely of RSUs or entirely of stock options. The quantity of options would be calculated by dividing $100,000 by the Black-Scholes value on the date of grant. The quantity of RSUs issued would be calculated by dividing $100,000 by the grant date fair value. Further, on the date of election of a new outside director, such new director would receive such grant as continuing outside directors receive on the first trading day of July; provided, however, that such grant is prorated for the portion of the year that such new outside director will serve until the next first trading day of July. The Directors Equity Compensation Program will remain in effect at the discretion of the board of directors or the compensation committee. On July 28, 2009, the 2007 Plan was amended generally to prohibit outstanding options or stock appreciation rights from being canceled in exchange for cash without stockholder approval. 2016 Incentive Award Plan The 2016 Incentive Award Plan (2016 Plan) was adopted by the board of directors on March 17, 2016 and approved by the stockholders on May 13, 2016. The Plan provides for the grant of RSU awards, PSU awards and PRSU awards. No other forms of equity-based awards, including stock options and stock appreciation rights, may be granted under the Plan. As of December 31, 2016 , no awards have been issued and 1.5 million shares of common stock remain available for future grant under the 2016 Plan. The 2016 Plan also provides for performance-based cash awards that qualify as “performance-based compensation” within the meaning of Section 162(m) of the Internal Revenue Code. 1997 Employee Stock Purchase Plan Under the 1997 Employee Stock Purchase Plan (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 3.5 million shares of common stock were reserved for issuance to employees under the Purchase Plan. As of December 31, 2016 , of the shares reserved for issuance, 2.9 million shares had been purchased and 0.6 million shares were reserved for future issuance under the Purchase Plan. Shares Reserved As of December 31, 2016 , the Company had approximately 3.4 million shares of common stock reserved for future grant under all stock plans. Stock-Based Compensation The Company applies the provisions of ASC 718-10, Stock Compensation . Under the provisions of ASC 718-10, the Company recognizes the fair value of stock-based compensation in its 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. The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the years ended December 31, 2016 , 2015 and 2014 : Year Ended December 31, (in thousands) 2016 2015 2014 Cost of revenues $ 1,148 $ 933 $ 879 Research and development 7,309 5,255 4,784 Sales and marketing 4,489 3,644 3,540 General and administrative 7,939 4,935 5,079 Total stock-based compensation expense $ 20,885 $ 14,767 $ 14,282 The following table summarizes total compensation expense related to unvested awards not yet recognized, net of expected forfeitures, and the weighted average period over which it is expected to be recognized as of December 31, 2016 : Unrecognized Compensation Expense for Unvested Awards (in thousands) Weighted Average Remaining Recognition Period (in years) Long-term performance-based awards $ 2,562 1.52 Restricted stock units 21,930 2.27 Purchase plan 120 0.08 Total unrecognized compensation expense $ 24,612 Stock-based compensation expense in the year ended December 31, 2016 , was approximately $20.9 million (comprising approximately $0.2 million related to stock options, $6.4 million related to performance-based awards, $13.0 million related to restricted stock units and $1.3 million related to the Company’s Purchase Plan). Stock-based compensation expense in the year ended December 31, 2015 , was approximately $14.8 million (comprising approximately $0.7 million related to stock options, $0.3 million related to performance-based awards, $12.7 million related to restricted stock units and $1.2 million related to the Company’s Purchase Plan). Stock-based compensation expense in the year ended December 31, 2014 , was approximately $14.3 million (comprising approximately $1.2 million related to stock options, $0.5 million related to long-term performance-based awards, $11.3 million related to restricted stock units and $1.3 million related to the Company’s Purchase Plan). The Company did not grant stock options in the years ended December 31, 2016 , 2015 and 2014 , and therefore no fair-value assumptions are reported. The fair value of employees’ stock purchase rights under the Purchase Plan was estimated using the Black-Scholes model with the following weighted-average assumptions used during the three years ended December 31, 2016 , 2015 and 2014 : Year Ended December 31, 2016 2015 2014 Risk-free interest rates 0.44% 0.13% 0.05% - 0.07% Expected volatility rates 32% 29% 30% - 48% Expected dividend yield 0.96% 1.08% 0.66% - 0.85% Expected term of purchase right (in years) 0.5 0.5 0.5 Weighted-average estimated fair value of purchase rights $12.23 $10.18 $14.40 A summary of stock option activity under the Plans as of December 31, 2016 , and activity during three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2014 1,691 $ 27.34 Granted — — Exercised (347 ) $ 27.64 Forfeited or expired — — Outstanding at December 31, 2014 1,344 $ 27.27 Granted — — Exercised (311 ) $ 26.11 Forfeited or expired (3 ) $ 37.97 Outstanding at December 31, 2015 1,030 $ 27.58 Granted — — Exercised (333 ) $ 25.41 Forfeited or expired — — Outstanding at December 31, 2016 697 $ 28.62 2.82 $ 27,370 Exercisable at December 31, 2016 697 $ 28.62 2.82 $ 27,370 Vested and expected to vest at December 31, 2016 697 $ 28.62 2.82 $ 27,370 The total intrinsic value of options exercised during the year ended December 31, 2016 , 2015 and 2014 , was $11.5 million , $7.0 million and $9.9 million , respectively. The following table summarizes the stock options outstanding at December 31, 2016 : Options Outstanding Options Exercisable (shares in thousands) Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $17.75 - $25.25 371 2.15 $ 21.31 371 $ 21.31 $25.48 - $42.88 326 3.58 $ 36.94 326 $ 36.94 697 2.82 $ 28.62 697 $ 28.62 PSU Awards Under the performance-based awards program, the Company grants awards in the performance year in an amount equal to twice the target number of shares to be issued if the maximum 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 target number depending on the Company’s performance. The performance metrics of this program are annual targets consisting of a combination of net revenue, non-GAAP operating earnings and strategic goals. Each performance-based award share granted from the 2007 Plan will reduce the number of shares available for issuance under the 2007 Plan by two shares. Each performance-based award share granted from the 2016 Plan will reduce the number of shares available for issuance under the 2016 Plan by one share. During the year ended December 31, 2016 , the Company issued approximately 101,000 PSUs to employees and executives. As the net revenue, non-GAAP operating income and strategic goals are considered performance conditions, expense associated with these awards, net of estimated forfeitures, is recognized over the service period based on an assessment of the achievement of the performance targets. The fair value of these PSUs is determined using the fair value of the Company’s common stock on the date of the grant, reduced by the discounted present value of dividends expected to be declared before the awards vest. If the performance conditions are not achieved, no compensation cost is recognized and any previously recognized compensation is reversed. A summary of PSU awards outstanding as of December 31, 2016 , and activity during the three years then ended is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2014 100 $ 38.48 Granted 83 $ 53.93 Vested (83 ) $ 38.48 Forfeited or canceled (100 ) $ 51.30 Outstanding at December 31, 2014 — — Granted 89 $ 52.36 Vested — — Forfeited or canceled (78 ) $ 52.35 Outstanding at December 31, 2015 11 $ 52.35 Granted 101 $ 46.26 Vested (11 ) $ 52.35 Forfeited or canceled (2 ) $ 46.87 Outstanding at December 31, 2016 99 $ 46.25 0 $ 6,714 Outstanding and expected to vest at December 31, 2016 99 0 $ 6,714 The grant date fair value of PSU awards released, which were fully vested, in the year ended December 31, 2016 was approximately $0.6 million . There were no PSU awards released in the year ended December 31, 2015 (as the Company did not reach its minimum performance goals established for the 2014 PSUs). The grant date fair value of PSU awards released, which were fully vested, in the year ended December 31, 2014 was approximately $3.2 million . PRSU Awards (Long-term Performance Based) 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 maximum 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 2016, 2015 and 2014 were based on the Company’s annual revenue growth over the respective three -year performance period. Each PRSU granted from the 2007 Plan will reduce the number of shares available for issuance under the 2007 Plan by two shares. Each PRSU granted from the 2016 Plan will reduce the number of shares available for issuance under the 2016 Plan by one share. Recipients of a PRSU award generally must remain employed by the Company on a continuous basis through the end of the applicable three -year performance period in order to receive shares subject to that award. Expenses associated with these awards, net of estimated forfeitures, are recorded throughout the year depending on the number of shares expected to vest based on progress toward the performance target. The 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 PRSU awards outstanding as of December 31, 2016 , and activity during the three years then ended is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2014 — — Granted 61 $ 55.51 Vested — — Forfeited or canceled — — Outstanding at December 31, 2014 61 $ 55.51 Granted 72 $ 52.47 Vested — — Forfeited or canceled (4 ) $ 57.76 Outstanding at December 31, 2015 129 $ 53.75 Granted 78 $ 43.26 Vested — — Forfeited or canceled (57 ) $ 55.35 Outstanding at December 31, 2016 150 $ 47.65 1.52 $ 10,177 Outstanding and expected to vest at December 31, 2016 113 1.51 $ 7,659 RSU Awards The Company grants restricted stock units to employees under the 2007 Plan and 2016 Plan. RSUs granted to employees typically vest ratably over a four -year period, and are converted into shares of the Company’s common stock upon vesting on a one-for-one basis subject to the employee’s continued service to the Company over that period. The fair value of RSUs is determined using the fair value of the Company’s common stock on the date of the grant, reduced by the discounted present value of dividends expected to be declared before the awards vest. Compensation expense is recognized on a straight-line basis over the requisite service period of each grant adjusted for estimated forfeitures. Each RSU award granted from the 2007 Plan will reduce the number of shares available for issuance under the 2007 Plan by two shares. Each RSU award granted from the 2016 Plan will reduce the number of shares available for issuance under the 2016 Plan by one share. A summary of RSUs outstanding as of December 31, 2016 , and activity during the three years then ended, is as follows: (shares and intrinsic value in thousands) Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2014 714 $ 38.97 Granted 281 $ 51.12 Vested (267 ) $ 38.57 Forfeited (36 ) $ 42.74 Outstanding at December 31, 2014 692 $ 43.86 Granted 319 $ 49.75 Vested (267 ) $ 42.49 Forfeited (63 ) $ 45.71 Outstanding at December 31, 2015 681 $ 46.98 Granted 331 $ 46.70 Vested (270 ) $ 45.13 Forfeited (24 ) $ 47.21 Outstanding at December 31, 2016 718 $ 47.54 1.25 $ 48,684 Outstanding and expected to vest at December 31, 2016 674 1.19 $ 45,711 The grant date fair value of RSUs vested in the years ended December 31, 2016 , 2015 and 2014 , was approximately $12.2 million , $11.3 million and $10.3 million , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS [Text Block] | FAIR VALUE MEASUREMENTS: ASC 820-10, Fair Value Measurements , clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices for identical assets in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company's cash equivalents and investment instruments are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The type of instrument valued based on quoted market prices in active markets primarily includes money market securities. This type of instrument is generally classified within Level 1 of the fair-value hierarchy. The types of instruments valued based on other observable inputs (Level 2 of the fair-value hierarchy) include investment-grade corporate bonds and government, state, municipal and provincial obligations. Such types of investments are valued by using a multi-dimensional relational model, the inputs are primarily benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The Company does not hold any instruments that would be classified within Level 3 of the fair-value hierarchy. The fair value hierarchy of the Company’s cash equivalents and marketable securities at December 31, 2016 , and December 31, 2015 , was as follows: Fair Value Measurement at December 31, 2016 (in thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Commercial paper $ 58,031 $ — $ 58,031 Money market funds 1,916 1,916 — Corporate securities 132,141 — 132,141 Total $ 192,088 $ 1,916 $ 190,172 Fair Value Measurement at December 31, 2015 (in thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Commercial paper $ 21,194 $ — $ 21,194 Money market funds 104 104 — Corporate securities 83,769 — 83,769 Total $ 105,067 $ 104 $ 104,963 The Company did not transfer any investments between level 1 and level 2 of the fair value hierarchy in the years ended December 31, 2016 , and December 31, 2015 . |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS [Text Block] | GOODWILL AND INTANGIBLE ASSETS: Goodwill increased during the year ended December 31, 2015, due to the Company's acquisition of Cambridge Semiconductor Limited (CamSemi) (refer to Note 11, Acquisitions , for details on the Company’s CamSemi acquisition). Changes in the carrying amount of goodwill during the years ended December 31, 2016 and 2015, are as follows: (in thousands) Goodwill Balance at December 31, 2014 $ 80,599 Goodwill acquired during the period 11,250 Balance at December 31, 2015 91,849 Goodwill acquired during the period — Balance at December 31, 2016 $ 91,849 Intangible assets consist primarily of developed technology, acquired licenses, customer relationships, trade name, domain name, in-process R&D 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 three - seven years; and customer relationships of $2.4 million , which will be amortized over a period of five 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 two 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 in-place leases, which range from two to twelve years , with the exception of $4.7 million of in-process R&D and $1.3 million paid to acquire an internet domain name. In-process R&D 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 R&D. The Company does not expect the amortization of in-process R&D to begin in 2017. The Company acquired the rights to the internet domain name www.power.com , which is now the Company’s primary domain name; the cost to acquire the domain name has been recorded as an intangible asset and will not be amortized as it has an indefinite useful life. Amortization of acquired intangible assets was approximately $6.7 million , $7.0 million and $6.1 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company does not believe there is any significant residual value associated with the following intangible assets: December 31, 2016 December 31, 2015 (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 (3,000 ) — 3,000 (2,925 ) 75 Developed technology 33,270 (15,455 ) 17,815 33,270 (11,670 ) 21,600 Customer relationships 20,030 (12,474 ) 7,556 20,030 (10,031 ) 9,999 In-place leases 660 (480 ) 180 660 (120 ) 540 Total intangible assets $ 62,911 $ (31,409 ) $ 31,502 $ 62,911 $ (24,746 ) $ 38,165 The estimated future amortization expense related to definite-lived intangible assets at December 31, 2016 , is as follows: Fiscal Year Estimated Amortization (in thousands) 2017 $ 6,084 2018 5,152 2019 4,753 2020 3,528 2021 2,662 Thereafter 3,372 Total (1) $ 25,551 _______________ (1) The total above excludes $4.7 million of in-process R&D which will be amortized upon completion of development over the estimated useful life of the technology. |
SIGNIFICANT CUSTOMERS AND INTER
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT CUSTOMERS AND EXPORT SALES [Text Block] | SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES: Segment Reporting The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of analog and mixed-signal ICs and other electronic components and circuitry used in high-voltage power conversion. The Company’s chief operating decision maker, the chief executive officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. Customer Concentration The Company's top ten customers accounted for approximately 60% of net revenues in each of 2016 and 2015 , and 59% in 2014 . A significant portion of these revenues are attributable to sales of the Company’s products to distributors of electronic components. These distributors sell the Company’s products to a broad, diverse range of end users, including OEMs and merchant power supply manufacturers. The following customers each accounted for 10% or more of total net revenues: Year Ended December 31, Customer 2016 2015 2014 Avnet 18 % 21 % 19 % Powertech Distribution Ltd. 11 % 10 % * _______________ * Total customer revenue was less than 10% of net revenues Avnet and Powertech Distribution Ltd. are distributors of the Company's products. No other customers accounted for 10% or more of the Company’s net revenues in those periods. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consisted principally of cash investments and trade receivables. The Company has cash investment policies that limit cash investments to low-risk investments. With respect to trade receivables, the Company performs ongoing evaluations of its customers' financial conditions and requires letters of credit whenever deemed necessary. Additionally, the Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends related to past write-offs and other relevant information. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. As of December 31, 2016 and December 31, 2015 , 70% and 66% of accounts receivable were concentrated with the Company’s top 10 customers. The following customers each represented 10% or more of accounts receivable: Customer December 31, December 31, Avnet 24 % 20 % ATM Electronic Corporation * 10 % _______________ * Total customer accounts receivable was less than 10% Avnet and ATM Electronic Corporation are distributors of the Company’s products. No other customers accounted for 10% or more of the Company’s accounts receivable in these periods. International Sales The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. As a percentage of total net revenues, international sales, which consist of sales to distributors and direct customers outside of the United States of America, based on "bill to" customer locations, comprise the following: Year Ended December 31, 2016 2015 2014 Hong Kong/China 51 % 50 % 47 % Taiwan 13 % 14 % 15 % Korea 11 % 10 % 11 % Western Europe (excluding Germany) 11 % 11 % 11 % Japan 5 % 5 % 5 % Germany 2 % 2 % 2 % Other 3 % 3 % 4 % Total foreign revenue 96 % 95 % 95 % The remainder of the Company’s sales is to customers within the United States of America. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE [Text Block] | 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, the assumed issuance of awards under the stock purchase plan and contingently issuable performance-based awards, as computed using the treasury stock method. A summary of the earnings per share calculation is as follows: Year Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Basic earnings per share: Net income $ 47,890 $ 39,147 $ 59,544 Weighted-average common shares 28,925 29,001 29,976 Basic earnings per share $ 1.66 $ 1.35 $ 1.99 Diluted earnings per share (1): Net income $ 47,890 $ 39,147 $ 59,544 Weighted-average common shares 28,925 29,001 29,976 Effect of dilutive securities: Employee stock plans 694 695 853 Diluted weighted-average common shares 29,619 29,696 30,829 Diluted earnings per share $ 1.62 $ 1.32 $ 1.93 _______________ (1) The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included in the 2016 and 2015 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. In the year ended December 31, 2016 no outstanding stock awards were determined to be anti-dilutive and therefore were excluded from the computation of diluted earnings per share. In the years ended December 31, 2015 and 2014, approximately 8,000 and 37,000 outstanding stock awards were determined to be anti-dilutive, respectively, and therefore were excluded from the computation of diluted earnings per share. |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES [Text Block] | PROVISION FOR INCOME TAXES: Income Taxes The Company accounts for income taxes under the provisions of ASC 740, Income Taxes . Under the provisions of ASC 740, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, utilizing the tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. U.S. and foreign components of income before income taxes were: Year Ended December 31, (in thousands) 2016 2015 2014 U.S. operations $ (880 ) $ (2,113 ) $ (5,064 ) Foreign operations 49,802 41,531 61,878 Total pretax income $ 48,922 $ 39,418 $ 56,814 The components of the provision for (benefit from) income taxes are as follows: Year Ended December 31, (in thousands) 2016 2015 2014 Current provision (benefit): Federal $ — $ 443 $ (1,234 ) State — 83 (137 ) Foreign 1,638 5,407 3,094 1,638 5,933 1,723 Deferred provision (benefit): Federal (197 ) (1,699 ) (3,279 ) State (27 ) (57 ) (284 ) Foreign (382 ) (3,906 ) (890 ) (606 ) (5,662 ) (4,453 ) Total $ 1,032 $ 271 $ (2,730 ) The Company is entitled to a deduction for federal and state tax purposes with respect to employees' stock option activity. The net reduction in taxes otherwise payable in excess of any amount credited to income tax expense has been reflected as an adjustment to additional paid-in capital. For 2015 and 2014 , the benefit (deficiency) arising from employee stock option activity that resulted in an adjustment to additional paid in capital was approximately $(0.2) million and $0.8 million , respectively. No adjustment was recorded in 2016 . The provision for (benefit from) income taxes differs from the amount that would result by applying the applicable federal income tax rate to income before provision for (benefit from) income taxes, as follows: Year Ended December 31, 2016 2015 2014 Provision computed at Federal statutory rate 35.0 % 35.0 % 35.0 % Business tax credits (6.0 ) (6.8 ) (5.5 ) Stock-based compensation 2.2 0.8 (2.9 ) Foreign income taxed at different rate (33.1 ) (33.1 ) (28.6 ) IRS audit settlement — — (5.8 ) Valuation allowance 1.8 2.6 2.0 Other 2.2 2.2 1.0 Total 2.1 % 0.7 % (4.8 )% The effective tax rate for the year ended December 31, 2016 was favorably impacted by the geographic distribution of the Company’s world-wide earnings in lower-tax jurisdictions. Additionally, the rate was favorably impacted by the federal R&D tax credit which was extended permanently when the Protecting Americans from Tax Hikes Act was signed into law on December 18, 2015. The Company reached a settlement with the IRS in the quarter ended June 30, 2014, to close out the examination of its federal income tax returns for the years 2007 through 2009. As a result, the Company adjusted its tax balances and the provision for income tax for the year ended December 31, 2014, includes a one-time benefit of $3.3 million comprising $2.8 million in federal income taxes and interest, and state income taxes of approximately $0.5 million . The one-time benefit includes the reversal of $4.1 million of related unrecognized tax benefits that had been recorded as non-current liabilities in the Company’s consolidated balance sheets. The Company has now concluded all U.S. federal income tax matters for the years through 2009. The components of the net deferred income tax asset (liabilities) were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Other reserves and accruals $ 1,880 $ 1,573 Tax credit carry-forwards 26,895 22,826 Stock compensation 5,760 5,945 Capital losses 10,585 11,490 Net operating loss 2,671 3,677 Other 174 — Valuation allowance (27,489 ) (26,918 ) 20,476 18,593 Deferred tax liabilities: Depreciation (2,322 ) (2,968 ) Unremitted earnings (7,019 ) (4,626 ) Other — (447 ) (9,341 ) (8,041 ) Net deferred tax asset $ 11,135 $ 10,552 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future taxable income. In the event that the Company determines, based on available evidence and management judgment, that all or part of the net deferred tax assets will not be realized in the future, the Company would record a valuation allowance in the period the determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a material impact on its results of operations and financial position. As of December 31, 2016 , the Company continues to maintain a valuation allowance primarily as a result of capital losses for federal purposes, and on its California deferred tax assets as the Company believes that it is not more likely than not that the deferred tax assets will be fully realized. In addition, the Company maintains a valuation allowance with respect to certain of its deferred tax assets relating to tax credits in Canada and the state of New Jersey. As of December 31, 2016 , the Company had federal research and development tax credit carry-forwards of approximately $14.9 million , which will begin to expire in 2030 if unutilized; federal net operating losses of $31.3 million , which will begin to expire in 2024 if unutilized; California research and development tax credit carry-forwards of approximately $18.7 million (there is no expiration of research and development tax credit carry-forwards for the state of California) and California net operating losses of $45.5 million which will begin to expire in 2032. As of December 31, 2016 , the Company had Canadian scientific research and experimental development tax credit carry-forwards of approximately $2.1 million and New Jersey research and experimental development tax credit carry-forwards of approximately $0.7 million , which will start to expire in 2026 and 2027, respectively. The Company does not provide for U.S. taxes on its undistributed earnings of foreign subsidiaries that it intends to invest indefinitely outside the U.S., unless such taxes are otherwise required under U.S. tax law. Beginning in 2013, the Company determined that a portion of its foreign subsidiaries current and future earnings may be remitted prospectively to the U.S. for domestic cash flow purposes and, accordingly, provided for the related U.S. taxes in its consolidated financial statements. If the Company changes its intent to invest its undistributed foreign earnings indefinitely or if a greater amount of undistributed earnings are needed for U.S. operations than previously anticipated and for which U.S. taxes have not been recorded, the Company would be required to accrue or pay U.S. taxes (subject to an adjustment for foreign tax credits, where applicable) and withholding taxes payable to various foreign countries on some or all of these undistributed earnings. As of December 31, 2016, the Company had undistributed earnings of foreign subsidiaries that are indefinitely invested outside of the U.S. of approximately $265.0 million . It is not practicable to determine the income tax liability that might be incurred if these earnings were to be distributed. Unrecognized Tax Benefits The Company applies the provisions of ASC 740-10, relating to accounting for uncertain income taxes. Reconciliation of the beginning and ending amount of unrecognized tax benefits: (in thousands) Unrecognized Tax Benefits Unrecognized Tax Benefits Balance at January 1, 2014 $ 12,694 Gross Increases for Tax Positions of Current Year 2,117 Gross Increases for Tax Positions of Prior Years 710 Settlements (4,361 ) Lapse of Statute of Limitations — Unrecognized Tax Benefits Balance at December 31, 2014 11,160 Gross Increases for Tax Positions of Current Year 3,063 Gross Decrease for Tax Positions of Prior Years (663 ) Settlements — Lapse of Statute of Limitations — Unrecognized Tax Benefits Balance at December 31, 2015 13,560 Gross Increases for Tax Positions of Current Year 1,856 Gross Decreases for Tax Positions of Prior Years (23 ) Settlements — Lapse of Statute of Limitations — Unrecognized Tax Benefits Balance at December 31, 2016 $ 15,393 The Company's total unrecognized tax benefits as of December 31, 2016 , 2015 and 2014 , were $15.4 million , $13.6 million and $11.2 million , respectively. An income tax benefit of $9.3 million , net of valuation allowance adjustments, would be recorded if these unrecognized tax benefits are recognized. The Company cannot reasonably estimate the amount of the unrecognized tax benefit that could be adjusted in the next twelve months. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had accrued interest and penalties of $0.1 million as of both December 31, 2016 , and December 31, 2015 , which have been recorded in long-term income taxes payable in the accompanying Consolidated Balance Sheets. As of December 31, 2016 , the Company has concluded all U.S. federal income tax matters for the years through 2012. However, due to tax attributes, the IRS may calculate tax adjustments for subsequent years for positions taken prior to 2012. The Company has finalized Swiss income tax returns for the years through 2012. There is currently no pending income tax audit. 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 was issued by the Tax Court in December 2015. In February 2016, the Commissioner appealed the Tax Court decision. 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. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS [Text Block] | COMMITMENTS: Facilities The Company owns its main executive, administrative, manufacturing and technical offices in San Jose, California. The Company also owns a research and development facility in New Jersey and a test facility in Biel, Switzerland. The Company leases administrative office space in Singapore and Switzerland, and R&D facilities in Canada and the United Kingdom, in addition to sales offices in various countries around the world. Future minimum lease payments under all non-cancelable operating lease agreements as of December 31, 2016 , are as follows: Fiscal Year (in thousands) 2017 $ 1,591 2018 1,414 2019 565 2020 248 2021 211 Thereafter 358 Total minimum lease payments $ 4,387 Total rent expense amounted to $1.9 million , $2.0 million and $1.8 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Purchase Obligations At December 31, 2016 , the Company had no non-cancelable purchase obligations that were due beyond one year. |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES [Text Block] | LEGAL PROCEEDINGS AND CONTINGENCIES: From time to time in the ordinary course of business, the Company becomes involved in lawsuits, or customers and distributors may make claims against the Company. In accordance with ASC 450-10, Contingencies , 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 is challenging 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 less than 0.5% 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. After briefing was completed, oral argument on the appeal took place in early July 2016, and on December 12, 2016, the Federal Circuit issued its opinion in the appeal, overturning the lone infringement verdict against the Company, finding one of the Company’s patents invalid, and overturning the District Court’s jury instruction on inducement. In view of the Federal Circuit’s rejection of the District Court’s jury instruction on inducement, the Court also vacated the inducement findings and associated injunction against Fairchild and remanded the case for a retrial on inducement, but the underlying validity and infringement findings against Fairchild on those two patents remain intact. On remand, the Company will also be seeking financial damages, as well as enhanced damages for willful infringement; these issues are 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. 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. Thereafter, the parties 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. Following a retrial on the issue of damages in December 2015, the jury returned a verdict in the Company’s favor, finding that the Company’s patented technology created the basis for customer demand for the infringing Fairchild products and awarding $139.8 million in damages. Although the jury awarded damages, at this stage of the proceedings the Company cannot state the amount, if any, it might ultimately recover from Fairchild, and no benefits have been recorded in the Company’s consolidated financial statements as a result of the damages verdict. Fairchild filed post-trial motions challenging the verdict, but the Court rejected Fairchild’s motions challenging the damages verdict in August 2016. The Company also filed motions requesting enhanced damages and attorney fees and reinstatement of the willfulness finding against Fairchild in view of an intervening change of law; on January 13, 2017, the District Court reinstated the finding that Fairchild’s infringement was willful but declined to enhance damages or award fees. Fairchild has filed a further challenge to the verdict, and a ruling on that remaining motion is expected in the coming months, along with Fairchild’s appeal on the merits. 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 asserted four Chinese patents and sought 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 in late 2014, 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 remand, the PTO ignored the Federal Circuit’s guidance, so the party has filed another appeal to the Federal Circuit; further briefing and proceedings on the second appeal will take place in the coming months. On May 1, 2012, Fairchild Semiconductor Corporation and Fairchild's wholly owned subsidiary, System General Corporation (referred to collectively as “Fairchild”), filed a complaint against the Company in the United States District Court for the District of Delaware. In its complaint, Fairchild 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. Both parties filed post-trial motions and challenges to various portions of the jury verdicts, and the Court addressed the first wave of post-trial motions, denying each side’s challenges to the verdict and denying Fairchild’s request for an injunction. In parallel proceedings, the Federal Circuit overturned the underlying finding of infringement against the Company on the Fairchild patent-in-suit, and the Company moved to vacate the inducement and damages judgment against the Company, a motion that Fairchild did not oppose. Further proceedings and an appeal of the outstanding issues are expected in the coming months. 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 answered the Company’s complaint, 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. Fairchild’s answer also included counterclaims accusing the Company of infringing four patents pertaining to power conversion integrated circuit devices, including one patent the Company was found not to infringe in prior litigation. 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. On December 15, 2016, the Court stayed the case pending resolution of the parties inter partes review (IPR) and reexamination proceedings regarding the patents-in-suit. On March 10, 2016, Silver Star Capital, LLC filed a petition with the U.S. Patent & Trademark Office (PTO) requesting that the PTO conduct an inter partes review (IPR) of the validity of the Company’s U.S. Patent No. 6,212,079 (the ’079 patent), which the Company has asserted against Fairchild Semiconductor in the California litigation initiated in 2004, as discussed above. The Company’s ’079 patent is also asserted in the Company’s most recent lawsuit against Fairchild filed in October 2015, also discussed above. On March 29, 2016, ON Semiconductor Corporation filed another petition requesting inter partes review of the Company’s ’079 patent. Since that time, ON Semiconductor has filed eleven more IPR petitions requesting review of various patents that the Company previously asserted against Fairchild as described above. The PTO denied Silver Star Capital’s IPR petition on the ’079 patent but instituted IPR proceedings with respect to ON Semiconductor’s petition directed to the ’079 patent, with further proceedings expected in the coming months. Further proceedings are also expected with respect to ON Semiconductor’s other IPR petitions in the coming months. Although the validity of the Company’s challenged patents has previously been confirmed in the Company’s District Court litigation with Fairchild and in many cases in prior PTO reexamination proceedings as well, and though the Company intends to vigorously defend the validity of its patents, the outcome of the IPR proceedings is uncertain. On April 1, 2016, Opticurrent, LLC filed a complaint against the Company in the United States District Court for the Eastern District of Texas. In its complaint, Opticurrent alleges that the Company has infringed and is infringing one patent pertaining to transistor switch devices. The Company has filed a motion to transfer the case to California, which will be addressed in the coming months. Further proceedings and discovery are expected over the course of the coming months, with trial currently scheduled for October 2017. The Company intends to vigorously defend itself against Opticurrent’s claims. On August 11, 2016, ON Semiconductor filed a complaint against the Company in the United States District Court for the District of Arizona. In its complaint, ON Semiconductor alleges that the Company has infringed and is infringing five patents and requests injunctive relief, and the complaint also seeks a declaration of non-infringement with respect to three of the Company’s patents that were previously asserted against Fairchild Semiconductor. The Company has not yet answered ON Semiconductor’s complaint, but the Company has filed a motion to dismiss and/or transfer the case to the Northern District of California, which will be addressed in the coming months. No date has been set for trial, but the Company believes it has valid defenses and intends to vigorously defend itself against ON Semiconductor’s claims. On November 1, 2016, the Company filed a lawsuit against ON Semiconductor in the United States District Court for the Northern District of California to address ON Semiconductor’s infringement of six patents. No date has been set for trial, but ON Semiconductor has filed a motion requesting that the case be transferred to Arizona, an issue that will be addressed in the coming months. On December 27, 2016, ON Semiconductor filed a complaint against the Company in the United States District Court for the Eastern District of Texas. In its complaint, ON Semiconductor alleges that the Company has infringed and is infringing six patents and requests injunctive relief. The Company has not yet answered ON Semiconductor’s complaint, and no date has been set for trial, but the Company believes it has valid defenses and intends to vigorously defend itself against ON Semiconductor’s claims. 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. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS [Text Block] | ACQUISITIONS: Cambridge Semiconductor Limited In December 2014, the Company entered into a loan agreement with Cambridge Semiconductor Limited (CamSemi), a UK company, in which $6.6 million was outstanding as of December 31, 2014. The estimated fair value of the loan, which was a level 3 fair value measurement, approximated the carrying value of $6.6 million , as the loan was outstanding for less than a month and the interest rate approximated a market rate for such a loan. The loan was in anticipation of a definitive agreement the Company entered into to acquire CamSemi on January 2, 2015. 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 totaled $1.0 million , with $0.8 million recognized in 2014 and $0.2 million recognized in 2015. CamSemi was acquired to accelerate the Company's product development efforts for the low-power market. The acquisition also broadens the Company's technology and product portfolio for low-power applications, particularly in the mobility and LED lighting markets. The 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 estimated fair values of the assets acquired and the liabilities assumed as of January 2, 2015, the completion of the acquisition of CamSemi: (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 consolidated financial statements. Corporate Headquarters Building In August 2015, the Company purchased a building adjacent to its corporate headquarters in San Jose, California to support the continued 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 two 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 in the consolidated statements of income and were not material for the periods presented. Rental income from third-party leases, and the proportionate share of building expenses for those leases, are included in other income in the consolidated statements of income from the date of acquisition. These amounts were not material for the periods presented. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT PLANS [Text Block] | RETIREMENT PLANS: The Company sponsors a defined benefit pension plan (Pension Plan) for its Swiss subsidiary in accordance with the legal requirements of Switzerland. The plan assets, which provide benefits in the event of an employee’s retirement, death or disability, are held in legally autonomous trustee-administered funds that are subject to Swiss law. Benefits are based on the employee’s age, years of service and salary, and the plan is financed by contributions by both the employee and the Company. The net periodic benefit cost of the Pension Plan was not material to the Company's financial statements during the years ended December 31, 2016, 2015 and 2014. At December 31, 2016, the projected benefit obligation was $11.8 million , the plan assets were $7.9 million and the net pension liability was $3.9 million . As of December 31, 2015, the projected benefit obligation was $9.0 million , the plan assets were $6.0 million , and the net pension liability was $3.0 million . The Company has recorded the unfunded amount as a liability in its consolidated balance sheet at December 31, 2016 and 2015, under the other liabilities caption. The Company expects to make contributions to the Pension Plan of approximately $0.4 million during 2017. The unrealized actuarial loss on pension benefits, net of tax at December 31, 2016, 2015 and 2014 was $1.9 million , $1.6 million and $1.2 million , respectively. These amounts were reflected in Note 2 above under the caption accumulated other comprehensive loss. In accordance with the Compensation-Retirement Benefits Topic of ASC 715-20, Defined Benefits Plan , the Company recognizes the over-funded or under-funded status of its defined post-retirement plan as an asset or liability in its statement of financial position. The company measured the plan assets and benefit obligations as of the date of the fiscal year-end. |
BANK LINE OF CREDIT
BANK LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
BANK LINE OF CREDIT [Text Block] | BANK LINE OF CREDIT: On July 5, 2012, the Company entered into a 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. On July 27, 2016, the Company terminated the Credit Agreement and entered into a new Credit Agreement with a bank (the "New Credit Agreement"). The New Credit Agreement provides the Company with a $75.0 million revolving line of credit to use for general corporate purposes with a $20.0 million sub-limit for the issuance of standby and trade letters of credit. 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. The New Credit Agreement terminates on July 26, 2019; all advances under the revolving line of credit will become due on such date, or earlier in the event of a default. As of December 31, 2016 , the Company had no amount outstanding under the New Credit Agreement. |
SELECTED QUARTERLY INFORMATION
SELECTED QUARTERLY INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY INFORMATION (Unaudited) [Text Block] | SELECTED QUARTERLY INFORMATION (Unaudited): The following tables set forth certain data from the Company's consolidated statements of income for each of the quarters in the years ended December 31, 2016 and 2015 . The unaudited quarterly consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements contained herein and include all adjustments that the Company considers necessary for a fair presentation of such information when read in conjunction with the Company's annual audited consolidated financial statements and notes thereto appearing elsewhere in this report. The operating results for any quarter are not necessarily indicative of the results for any subsequent period or for the entire fiscal year. Three Months Ended (unaudited) Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in thousands, except per share data) 2016 2016 2016 2016 2015 2015 2015 2015 Net revenues $ 101,108 $ 103,790 $ 97,169 $ 85,326 $ 87,289 $ 88,878 $ 85,265 $ 82,557 Gross profit $ 49,384 $ 51,193 $ 47,637 $ 42,947 $ 42,916 $ 44,161 $ 44,018 $ 42,292 Net income $ 13,617 $ 14,165 $ 11,265 $ 8,843 $ 12,701 $ 11,513 $ 8,590 $ 6,343 Earnings per share Basic $ 0.47 $ 0.49 $ 0.39 $ 0.31 $ 0.45 $ 0.40 $ 0.29 $ 0.22 Diluted $ 0.46 $ 0.48 $ 0.38 $ 0.30 $ 0.44 $ 0.39 $ 0.29 $ 0.21 Shares used in per share calculation Basic 29,196 28,972 28,850 28,679 28,483 28,855 29,368 29,309 Diluted 29,914 29,625 29,422 29,244 29,126 29,298 30,034 30,058 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 totaled $1.0 million , with $0.8 million recognized in 2014 and $0.2 million recognized in 2015. See Note 11, Acquisitions. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts [Text Block] | Schedule II Valuation and Qualifying Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. This allowance is established using estimates formulated by the Company’s management based upon factors such as the composition of the accounts receivable aging, historical bad debt, changes in payments patterns, customer creditworthiness, and current economic trends. The Company maintains an allowance for the distributors’ ship and debit credits relating to the sell-through of the Company’s products. This reserve is established using the Company’s historical ship and debit amounts and levels of inventory in the distributor channels. Following is a summary of the activity in the allowance for doubtful accounts and allowance for ship and debit credits: (in thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions (1) Balance at End of Period Allowance for doubtful accounts: Year ended December 31, 2014 $ 120 $ 135 $ (64 ) $ 191 Year ended December 31, 2015 $ 191 $ 133 $ (6 ) $ 318 Year ended December 31, 2016 $ 318 $ 207 $ — $ 525 _______________ (1) Deductions relate to amounts written off against the allowance for doubtful accounts. (in thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions (2) Balance at End of Period Allowance for ship and debit credits: Year ended December 31, 2014 $ 28,696 $ 177,260 $ (178,531 ) $ 27,425 Year ended December 31, 2015 $ 27,425 $ 195,669 $ (188,679 ) $ 34,415 Year ended December 31, 2016 $ 34,415 $ 262,501 $ (258,841 ) $ 38,075 _______________ (2) Deductions relate to ship and debit credits issued which adjust the sell-in price from the standard distribution price to the pre-approved lower price. Refer to Note 2, Summary of Significant Accounting Policies , for the Company’s revenue recognition policy, including the Company’s accounting for ship and debit claims. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of all intercompany transactions and balances. |
Estimates [Policy Text Block] | Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition and allowances for receivables and inventories. These estimates are based on historical facts and various other factors, which the Company believes to be reasonable at the time the estimates are made. However, as the effects of future events cannot be determined with precision, actual results could differ significantly from management’s estimates. |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents The Company considers cash invested in highly liquid financial instruments with maturities of three months or less at the date of purchase to be cash equivalents. |
Marketable Securities [Policy Text Block] | Marketable Securities The Company generally holds securities until maturity; however, they may be sold under certain circumstances including, but not limited to, when necessary for the funding of acquisitions and other strategic investments. As a result the Company classifies its investment portfolio as available-for-sale. The Company classifies all investments with a maturity date greater than three months at the date of purchase as short-term marketable securities in its Consolidated Balance Sheet. As of December 31, 2016 , and December 31, 2015, the Company’s marketable securities consisted primarily of commercial paper, corporate bonds and other high-quality commercial securities. The weighted average interest rate of investments at December 31, 2016 and December 31, 2015, was approximately 1.23% and 0.84% , respectively. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | The Company's cash equivalents and investment instruments are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The type of instrument valued based on quoted market prices in active markets primarily includes money market securities. This type of instrument is generally classified within Level 1 of the fair-value hierarchy. The types of instruments valued based on other observable inputs (Level 2 of the fair-value hierarchy) include investment-grade corporate bonds and government, state, municipal and provincial obligations. Such types of investments are valued by using a multi-dimensional relational model, the inputs are primarily benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. |
Inventories [Policy Text Block] | Inventories Inventories (which consist of costs associated with the purchases of wafers from domestic and offshore foundries and of packaged components from offshore assembly manufacturers, as well as internal labor and overhead associated with the testing of both wafers and packaged components) are stated at the lower of cost (first-in, first-out) or market. Provisions, when required, are made to reduce excess and obsolete inventories to their estimated net realizable values. |
Business Combinations [Policy Text Block] | Business Combinations The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing at the acquisition date impacting asset valuations and liabilities assumed. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. |
Goodwill and Intangible Assets [Policy Text Block] | Goodwill and Intangible Assets Goodwill and the Company's domain name are evaluated in accordance with ASC 350-10, Goodwill and Other Intangible Assets, and an impairment analysis is conducted on an annual basis, or sooner if indicators exist for a potential impairment. In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets , long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Employee Benefits Plan [Policy Text Block] | Employee Benefits Plan The Company sponsors a 401(k) tax-deferred savings plan for all employees in the United States who meet certain eligibility requirements. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. The Company is not required to contribute; however, the Company contributes a certain percentage of employee annual salaries on a discretionary basis, not to exceed an established threshold. In each of 2016 , 2015 and 2014 , the Company provided for a contribution of approximately $1.1 million . |
Retirement Benefit Obligations (Pension) [Policy Text Block] | Retirement Benefit Obligations (Pension) The Company recognizes the over-funded or under-funded status of a defined benefit pension or post-retirement plan as an asset or liability in the accompanying consolidated balance sheets. Actuarial gains and losses are recorded in accumulated other comprehensive loss, a component of stockholders’ equity, and are amortized as a component of net periodic cost over the remaining estimated service period of participants. |
Revenue Recognition [Policy Text Block] | Revenue Recognition Product revenues consist of sales to original equipment manufacturers (OEMs), merchant power supply manufacturers and distributors. Approximately 75% of the Company’s net product sales were made to distributors in 2016 . The Company applies the provisions of ASC 605-10, Revenue Recognition, and all related appropriate guidance. Revenue is recognized when all of the following criteria have been met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the price is fixed or determinable, and (4) collectability is reasonably assured. Customer purchase orders are generally used to determine the existence of an arrangement. Delivery is considered to have occurred when title and risk of loss have transferred to the Company’s customer. The Company evaluates whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. With respect to collectability, the Company performs credit checks for new customers and performs ongoing evaluations of its existing customers’ financial condition and requires letters of credit whenever deemed necessary. Sales to international OEMs and merchant power supply manufacturers for shipments from the Company’s facility outside of the United States are pursuant to “EX Works” (EXW) shipping terms, meaning that title to the product transfers to the customer upon shipment from the Company’s foreign warehouse. Sales to international OEM customers and merchant power supply manufacturers that are shipped from the Company’s facility in California are pursuant to “delivered at frontier” (DAF) shipping terms. As such, title to the product passes to the customer when the shipment reaches the destination country and revenue is recognized upon the arrival of the product in that country. Shipments to OEMs and merchant power supply manufacturers in the Americas are pursuant to “free on board” (FOB) point of origin shipping terms meaning that title is passed to the customer upon shipment. Revenue is recognized upon title transfer for sales to OEMs and merchant power supply manufacturers, assuming all other criteria for revenue recognition are met. Sales to most of the Company's distributors are made under terms allowing certain price adjustments and rights of return on the Company's products held by its distributors. As a result of these rights, the Company defers the recognition of revenue and the costs of revenues derived from these sales until the Company's distributors report that they have sold the Company's products to their customers. The Company's recognition of such distributor revenue is based on point of sale reports received from the distributors, at which time the price is no longer subject to adjustment and is fixed, and the products are no longer subject to return to the Company except pursuant to warranty terms. The gross profit that is deferred as a result of this policy is reflected as “deferred income on sales to distributors” in the accompanying consolidated balance sheets. The total deferred revenue as of December 31, 2016 , and December 31, 2015 , was approximately $28.1 million and $25.7 million , respectively. The total deferred cost as of December 31, 2016 , and December 31, 2015 , was approximately $11.9 million and $10.6 million , respectively. Frequently, distributors need to sell at a price lower than the standard distribution price in order to win business. At or soon after the distributor invoices its customer, the distributor submits a “ship and debit” price adjustment claim to the Company to adjust the distributor's cost from the standard price to the pre-approved lower price. After verification by the Company, a credit memo is issued to the distributor for the ship and debit claim. The Company maintains a reserve for unprocessed claims and future ship and debit price adjustments. The reserves appear as a reduction to accounts receivable and deferred income on sales to distributors in the Company's accompanying consolidated balance sheets. To the extent future ship and debit claims significantly exceed amounts estimated, there could be a material impact on the deferred revenue and deferred margin ultimately recognized. To evaluate the adequacy of its reserves, the Company analyzes historical ship and debit payments and levels of inventory in the distributor channels. Sales to certain distributors of the Company are made under terms that do not include rights of return or price concessions after the product is shipped to the distributor. Accordingly, product revenue is recognized upon shipment and title transfer assuming all other revenue recognition criteria are met. |
Foreign Currency Risk and Foreign Currency Translations [Policy Text Block] | Foreign Currency Risk and Foreign Currency Translation As of December 31, 2016 , the Company’s primary transactional currency was U.S. dollars; in addition, the Company holds cash in Swiss francs and euros to fund the operations of the Company’s Swiss subsidiary. The foreign exchange rate fluctuation between the U.S. dollar versus the Swiss franc and euro is recorded in “other income” in the consolidated statements of income. Gains and losses arising from the remeasurement of non-functional currency balances are recorded in ''other income'' in the accompanying consolidated statements of income. For the years ended December 31, 2016 , 2015 and 2014 the Company realized foreign exchange transaction gains (losses) of $(0.1) million , $(0.5) million and $0.1 million , respectively. The functional currencies of the Company’s other subsidiaries are the local currencies. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rates as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Cumulative gains and losses from the translation of the foreign subsidiaries’ financial statements have been included in stockholders’ equity. |
Warranty [Policy Text Block] | Warranty The Company generally warrants that its products will substantially conform to the published specifications for 12 months from the date of shipment. The Company’s liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial, and as a result, the Company does not record a specific warranty reserve. |
Advertising [Policy Text Block] | Advertising Advertising costs are expensed as incurred. Advertising costs amounted to $1.3 million , $1.1 million , and $1.5 million , in 2016 , 2015 and 2014 , respectively. |
Research and Development [Policy Text Block] | Research and Development Research and development costs are expensed as incurred. |
Income Taxes [Policy Text Block] | Income Taxes Income tax expense is an estimate of current income taxes payable or refundable in the current fiscal year based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences and carry-forwards that are recognized for financial reporting and income tax purposes. The Company accounts for income taxes under the provisions of ASC 740, Income Taxe s. Under the provisions of ASC 740, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, utilizing the tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes valuation allowances to reduce any deferred tax assets to the amount that it estimates will more likely than not be realized based on available evidence and management’s judgment. The Company limits the deferred tax assets recognized related to certain officers’ compensation to amounts that it estimates will be deductible in future periods based upon Internal Revenue Code Section 162(m). In the event that the Company determines, based on available evidence and management judgment, that all or part of the net deferred tax assets will not be realized in the future, it would record a valuation allowance in the period the determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a material impact on the Company’s results of operations and financial position. |
Indemnifications [Policy Text Block] | Indemnifications The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (DSA). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company’s products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (Customer Indemnification). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees' development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of December 31, 2016 . For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnifications. |
Stock Plans and Share Based Compensation [Abstract] | |
Share-based Compensation [Policy Text Block] | Stock-Based Compensation The Company applies the provisions of ASC 718-10, Stock Compensation . Under the provisions of ASC 718-10, the Company recognizes the fair value of stock-based compensation in its 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. |
Significant Customers and Export Sales [Abstract] | |
Segment Reporting [Policy Text Block] | The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of analog and mixed-signal ICs and other electronic components and circuitry used in high-voltage power conversion. The Company’s chief operating decision maker, the chief executive officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Dividends Declared [Table Text Block] | Year Ended December 31, 2016 2015 2014 First Quarter $ 0.13 $ 0.12 $ 0.10 Second Quarter $ 0.13 $ 0.12 $ 0.10 Third Quarter $ 0.13 $ 0.12 $ 0.12 Fourth Quarter $ 0.13 $ 0.12 $ 0.12 |
Available-for-sale Securities [Table Text Block] | Amortized cost and estimated fair market value of investments classified as available-for-sale (excluding cash equivalents) at December 31, 2016 , were as follows: Amortized Gross Unrealized Estimated Fair (in thousands) Cost Gains Losses Market Value Investments due in less than 3 months: Commercial paper $ 36,996 $ — $ — $ 36,996 Corporate securities 9,342 2 (2 ) 9,342 Total 46,338 2 (2 ) 46,338 Investments due in 4-12 months: Commercial paper 19,186 — — 19,186 Corporate securities 59,714 15 (76 ) 59,653 Total 78,900 15 (76 ) 78,839 Investments due 12 months or greater: Corporate securities 63,305 21 (180 ) 63,146 Total 63,305 21 (180 ) 63,146 Total investment securities $ 188,543 $ 38 $ (258 ) $ 188,323 Amortized cost and estimated fair market value of investments classified as available-for-sale (excluding cash equivalents) at December 31, 2015 , were as follows: Amortized Gross Unrealized Estimated Fair (in thousands) Cost Gains Losses Market Value Investments due in less than 3 months: Corporate securities $ 38,586 $ 7 $ (10 ) $ 38,583 Total 38,586 7 (10 ) 38,583 Investments due in 4-12 months: Corporate securities 33,654 1 (36 ) 33,619 Total 33,654 1 (36 ) 33,619 Investments due between 12 months or greater: Corporate securities 11,626 — (59 ) 11,567 Total 11,626 — (59 ) 11,567 Total investment securities $ 83,866 $ 8 $ (105 ) $ 83,769 |
Schedule of Inventories [Table Text Block] | Inventories consist of the following: (in thousands) December 31, December 31, Raw materials $ 14,610 $ 19,090 Work-in-process 15,194 12,770 Finished goods 22,760 20,074 Total $ 52,564 $ 51,934 |
Schedule of Accounts Receivable [Table Text Block] | Accounts receivable: (in thousands) December 31, December 31, Accounts receivable trade $ 46,849 $ 43,622 Accrued ship and debit and rebate claims (39,363 ) (35,486 ) Allowance for doubtful accounts (525 ) (318 ) Total $ 6,961 $ 7,818 |
Schedule of Prepaid Expenses and Other Current Assets [Table Text Block] | Prepaid expenses and other current assets: (in thousands) December 31, December 31, Prepaid legal fees $ 212 $ 2,023 Advance to suppliers 69 324 Prepaid income tax 2,431 309 Prepaid maintenance agreements 1,399 736 Interest receivable 743 519 Other 3,666 2,879 Total $ 8,520 $ 6,790 |
Schedule of Property and Equipment [Table Text Block] | Property and equipment consist of the following: (in thousands) December 31, 2016 December 31, 2015 Land $ 20,288 $ 20,288 Construction-in-progress 6,880 2,298 Building and improvements 52,156 51,941 Machinery and equipment 132,162 128,342 Computer software and hardware and office furniture and fixtures 45,951 43,383 257,437 246,252 Accumulated depreciation (162,141 ) (146,871 ) Total $ 95,296 $ 99,381 Building and improvements 4-40 years Machinery and equipment 2-8 years Computer software and hardware and office furniture and fixtures 4-7 years |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive income (loss) for the three years ended December 31, 2016 : (in thousands) Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Foreign Currency Items Total Balance at January 1, 2014 $ 210 $ (780 ) $ 100 $ (470 ) Other comprehensive income (loss) before reclassifications (127 ) (538 ) (79 ) (744 ) Amounts reclassified from accumulated other comprehensive income (loss) — 78 (1) — 78 Other comprehensive income loss (127 ) (460 ) (79 ) (666 ) Balance at December 31, 2014 83 (1,240 ) 21 (1,136 ) Other comprehensive income (loss) before reclassifications (180 ) (469 ) (191 ) (840 ) Amounts reclassified from accumulated other comprehensive income (loss) — 125 (1) — 125 Other comprehensive loss (180 ) (344 ) (191 ) (715 ) Balance at December 31, 2015 (97 ) (1,584 ) (170 ) (1,851 ) Other comprehensive income (loss) before reclassifications (123 ) (505 ) (384 ) (1,012 ) Amounts reclassified from accumulated other comprehensive income (loss) — 153 (1) — 153 Other comprehensive loss (123 ) (352 ) (384 ) (859 ) Balance at December 31, 2016 $ (220 ) $ (1,936 ) $ (554 ) $ (2,710 ) _ |
STOCK PLANS AND SHARE BASED C25
STOCK PLANS AND SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock-based compensation expense [Table Text Block] | The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the years ended December 31, 2016 , 2015 and 2014 : Year Ended December 31, (in thousands) 2016 2015 2014 Cost of revenues $ 1,148 $ 933 $ 879 Research and development 7,309 5,255 4,784 Sales and marketing 4,489 3,644 3,540 General and administrative 7,939 4,935 5,079 Total stock-based compensation expense $ 20,885 $ 14,767 $ 14,282 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | The following table summarizes total compensation expense related to unvested awards not yet recognized, net of expected forfeitures, and the weighted average period over which it is expected to be recognized as of December 31, 2016 : Unrecognized Compensation Expense for Unvested Awards (in thousands) Weighted Average Remaining Recognition Period (in years) Long-term performance-based awards $ 2,562 1.52 Restricted stock units 21,930 2.27 Purchase plan 120 0.08 Total unrecognized compensation expense $ 24,612 |
Fair value assumptions for employees' stock purchase rights under the Purchase Plan [Table Text Block] | The fair value of employees’ stock purchase rights under the Purchase Plan was estimated using the Black-Scholes model with the following weighted-average assumptions used during the three years ended December 31, 2016 , 2015 and 2014 : Year Ended December 31, 2016 2015 2014 Risk-free interest rates 0.44% 0.13% 0.05% - 0.07% Expected volatility rates 32% 29% 30% - 48% Expected dividend yield 0.96% 1.08% 0.66% - 0.85% Expected term of purchase right (in years) 0.5 0.5 0.5 Weighted-average estimated fair value of purchase rights $12.23 $10.18 $14.40 |
Summary of option activity under the Plans [Table Text Block] | A summary of stock option activity under the Plans as of December 31, 2016 , and activity during three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2014 1,691 $ 27.34 Granted — — Exercised (347 ) $ 27.64 Forfeited or expired — — Outstanding at December 31, 2014 1,344 $ 27.27 Granted — — Exercised (311 ) $ 26.11 Forfeited or expired (3 ) $ 37.97 Outstanding at December 31, 2015 1,030 $ 27.58 Granted — — Exercised (333 ) $ 25.41 Forfeited or expired — — Outstanding at December 31, 2016 697 $ 28.62 2.82 $ 27,370 Exercisable at December 31, 2016 697 $ 28.62 2.82 $ 27,370 Vested and expected to vest at December 31, 2016 697 $ 28.62 2.82 $ 27,370 |
Summary of stock options outstanding by exercise price range [Table Text Block] | The following table summarizes the stock options outstanding at December 31, 2016 : Options Outstanding Options Exercisable (shares in thousands) Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $17.75 - $25.25 371 2.15 $ 21.31 371 $ 21.31 $25.48 - $42.88 326 3.58 $ 36.94 326 $ 36.94 697 2.82 $ 28.62 697 $ 28.62 |
Summary of restricted stock units outstanding [Table Text Block] | A summary of RSUs outstanding as of December 31, 2016 , and activity during the three years then ended, is as follows: (shares and intrinsic value in thousands) Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2014 714 $ 38.97 Granted 281 $ 51.12 Vested (267 ) $ 38.57 Forfeited (36 ) $ 42.74 Outstanding at December 31, 2014 692 $ 43.86 Granted 319 $ 49.75 Vested (267 ) $ 42.49 Forfeited (63 ) $ 45.71 Outstanding at December 31, 2015 681 $ 46.98 Granted 331 $ 46.70 Vested (270 ) $ 45.13 Forfeited (24 ) $ 47.21 Outstanding at December 31, 2016 718 $ 47.54 1.25 $ 48,684 Outstanding and expected to vest at December 31, 2016 674 1.19 $ 45,711 |
Performance Based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of performance-based awards outstanding [Table Text Block] | A summary of PSU awards outstanding as of December 31, 2016 , and activity during the three years then ended is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2014 100 $ 38.48 Granted 83 $ 53.93 Vested (83 ) $ 38.48 Forfeited or canceled (100 ) $ 51.30 Outstanding at December 31, 2014 — — Granted 89 $ 52.36 Vested — — Forfeited or canceled (78 ) $ 52.35 Outstanding at December 31, 2015 11 $ 52.35 Granted 101 $ 46.26 Vested (11 ) $ 52.35 Forfeited or canceled (2 ) $ 46.87 Outstanding at December 31, 2016 99 $ 46.25 0 $ 6,714 Outstanding and expected to vest at December 31, 2016 99 0 $ 6,714 |
Long-Term Performance-based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of performance-based awards outstanding [Table Text Block] | A summary of PRSU awards outstanding as of December 31, 2016 , and activity during the three years then ended is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2014 — — Granted 61 $ 55.51 Vested — — Forfeited or canceled — — Outstanding at December 31, 2014 61 $ 55.51 Granted 72 $ 52.47 Vested — — Forfeited or canceled (4 ) $ 57.76 Outstanding at December 31, 2015 129 $ 53.75 Granted 78 $ 43.26 Vested — — Forfeited or canceled (57 ) $ 55.35 Outstanding at December 31, 2016 150 $ 47.65 1.52 $ 10,177 Outstanding and expected to vest at December 31, 2016 113 1.51 $ 7,659 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Marketable Securities and Investments [Table Text Block] | The fair value hierarchy of the Company’s cash equivalents and marketable securities at December 31, 2016 , and December 31, 2015 , was as follows: Fair Value Measurement at December 31, 2016 (in thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Commercial paper $ 58,031 $ — $ 58,031 Money market funds 1,916 1,916 — Corporate securities 132,141 — 132,141 Total $ 192,088 $ 1,916 $ 190,172 Fair Value Measurement at December 31, 2015 (in thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Commercial paper $ 21,194 $ — $ 21,194 Money market funds 104 104 — Corporate securities 83,769 — 83,769 Total $ 105,067 $ 104 $ 104,963 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | (in thousands) Goodwill Balance at December 31, 2014 $ 80,599 Goodwill acquired during the period 11,250 Balance at December 31, 2015 91,849 Goodwill acquired during the period — Balance at December 31, 2016 $ 91,849 |
Schedule of intangible assets [Table Text Block] | The Company does not believe there is any significant residual value associated with the following intangible assets: December 31, 2016 December 31, 2015 (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 (3,000 ) — 3,000 (2,925 ) 75 Developed technology 33,270 (15,455 ) 17,815 33,270 (11,670 ) 21,600 Customer relationships 20,030 (12,474 ) 7,556 20,030 (10,031 ) 9,999 In-place leases 660 (480 ) 180 660 (120 ) 540 Total intangible assets $ 62,911 $ (31,409 ) $ 31,502 $ 62,911 $ (24,746 ) $ 38,165 |
Schedule of expected amortization expense [Table Text Block] | The estimated future amortization expense related to definite-lived intangible assets at December 31, 2016 , is as follows: Fiscal Year Estimated Amortization (in thousands) 2017 $ 6,084 2018 5,152 2019 4,753 2020 3,528 2021 2,662 Thereafter 3,372 Total (1) $ 25,551 _______________ (1) The total above excludes $4.7 million of in-process R&D which will be amortized upon completion of development over the estimated useful life of the technology. |
SIGNIFICANT CUSTOMERS AND INT28
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Customers accounted for 10% or more of total net revenues [Table Text Block] | The following customers each accounted for 10% or more of total net revenues: Year Ended December 31, Customer 2016 2015 2014 Avnet 18 % 21 % 19 % Powertech Distribution Ltd. 11 % 10 % * |
Customers representing 10% or more of accounts receivable [Table Text Block] | The following customers each represented 10% or more of accounts receivable: Customer December 31, December 31, Avnet 24 % 20 % ATM Electronic Corporation * 10 % _______________ * Total customer accounts receivable was less than 10% |
International sales [Table Text Block] | Year Ended December 31, 2016 2015 2014 Hong Kong/China 51 % 50 % 47 % Taiwan 13 % 14 % 15 % Korea 11 % 10 % 11 % Western Europe (excluding Germany) 11 % 11 % 11 % Japan 5 % 5 % 5 % Germany 2 % 2 % 2 % Other 3 % 3 % 4 % Total foreign revenue 96 % 95 % 95 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share calculation [Table Text Block] | A summary of the earnings per share calculation is as follows: Year Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Basic earnings per share: Net income $ 47,890 $ 39,147 $ 59,544 Weighted-average common shares 28,925 29,001 29,976 Basic earnings per share $ 1.66 $ 1.35 $ 1.99 Diluted earnings per share (1): Net income $ 47,890 $ 39,147 $ 59,544 Weighted-average common shares 28,925 29,001 29,976 Effect of dilutive securities: Employee stock plans 694 695 853 Diluted weighted-average common shares 29,619 29,696 30,829 Diluted earnings per share $ 1.62 $ 1.32 $ 1.93 _______________ (1) The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included in the 2016 and 2015 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. |
PROVISION FOR INCOME TAXES (Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
U.S. and foreign components of income before income taxes [Table Text Block] | U.S. and foreign components of income before income taxes were: Year Ended December 31, (in thousands) 2016 2015 2014 U.S. operations $ (880 ) $ (2,113 ) $ (5,064 ) Foreign operations 49,802 41,531 61,878 Total pretax income $ 48,922 $ 39,418 $ 56,814 |
Components of provision for income taxes [Table Text Block] | The components of the provision for (benefit from) income taxes are as follows: Year Ended December 31, (in thousands) 2016 2015 2014 Current provision (benefit): Federal $ — $ 443 $ (1,234 ) State — 83 (137 ) Foreign 1,638 5,407 3,094 1,638 5,933 1,723 Deferred provision (benefit): Federal (197 ) (1,699 ) (3,279 ) State (27 ) (57 ) (284 ) Foreign (382 ) (3,906 ) (890 ) (606 ) (5,662 ) (4,453 ) Total $ 1,032 $ 271 $ (2,730 ) |
Effective income tax rate reconciliation [Table Text Block] | The provision for (benefit from) income taxes differs from the amount that would result by applying the applicable federal income tax rate to income before provision for (benefit from) income taxes, as follows: Year Ended December 31, 2016 2015 2014 Provision computed at Federal statutory rate 35.0 % 35.0 % 35.0 % Business tax credits (6.0 ) (6.8 ) (5.5 ) Stock-based compensation 2.2 0.8 (2.9 ) Foreign income taxed at different rate (33.1 ) (33.1 ) (28.6 ) IRS audit settlement — — (5.8 ) Valuation allowance 1.8 2.6 2.0 Other 2.2 2.2 1.0 Total 2.1 % 0.7 % (4.8 )% |
Components of net deferred income tax asset [Table Text Block] | The components of the net deferred income tax asset (liabilities) were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Other reserves and accruals $ 1,880 $ 1,573 Tax credit carry-forwards 26,895 22,826 Stock compensation 5,760 5,945 Capital losses 10,585 11,490 Net operating loss 2,671 3,677 Other 174 — Valuation allowance (27,489 ) (26,918 ) 20,476 18,593 Deferred tax liabilities: Depreciation (2,322 ) (2,968 ) Unremitted earnings (7,019 ) (4,626 ) Other — (447 ) (9,341 ) (8,041 ) Net deferred tax asset $ 11,135 $ 10,552 |
Unrecognized tax benefits rollforward [Table Text Block] | The Company applies the provisions of ASC 740-10, relating to accounting for uncertain income taxes. Reconciliation of the beginning and ending amount of unrecognized tax benefits: (in thousands) Unrecognized Tax Benefits Unrecognized Tax Benefits Balance at January 1, 2014 $ 12,694 Gross Increases for Tax Positions of Current Year 2,117 Gross Increases for Tax Positions of Prior Years 710 Settlements (4,361 ) Lapse of Statute of Limitations — Unrecognized Tax Benefits Balance at December 31, 2014 11,160 Gross Increases for Tax Positions of Current Year 3,063 Gross Decrease for Tax Positions of Prior Years (663 ) Settlements — Lapse of Statute of Limitations — Unrecognized Tax Benefits Balance at December 31, 2015 13,560 Gross Increases for Tax Positions of Current Year 1,856 Gross Decreases for Tax Positions of Prior Years (23 ) Settlements — Lapse of Statute of Limitations — Unrecognized Tax Benefits Balance at December 31, 2016 $ 15,393 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under all non-cancelable operating lease agreements as of December 31, 2016 , are as follows: Fiscal Year (in thousands) 2017 $ 1,591 2018 1,414 2019 565 2020 248 2021 211 Thereafter 358 Total minimum lease payments $ 4,387 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the purchase price and estimated fair values of the assets acquired and the liabilities assumed as of January 2, 2015, the completion of the acquisition of CamSemi: (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 Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | 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 |
SELECTED QUARTERLY INFORMATION
SELECTED QUARTERLY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following tables set forth certain data from the Company's consolidated statements of income for each of the quarters in the years ended December 31, 2016 and 2015 . The unaudited quarterly consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements contained herein and include all adjustments that the Company considers necessary for a fair presentation of such information when read in conjunction with the Company's annual audited consolidated financial statements and notes thereto appearing elsewhere in this report. The operating results for any quarter are not necessarily indicative of the results for any subsequent period or for the entire fiscal year. Three Months Ended (unaudited) Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in thousands, except per share data) 2016 2016 2016 2016 2015 2015 2015 2015 Net revenues $ 101,108 $ 103,790 $ 97,169 $ 85,326 $ 87,289 $ 88,878 $ 85,265 $ 82,557 Gross profit $ 49,384 $ 51,193 $ 47,637 $ 42,947 $ 42,916 $ 44,161 $ 44,018 $ 42,292 Net income $ 13,617 $ 14,165 $ 11,265 $ 8,843 $ 12,701 $ 11,513 $ 8,590 $ 6,343 Earnings per share Basic $ 0.47 $ 0.49 $ 0.39 $ 0.31 $ 0.45 $ 0.40 $ 0.29 $ 0.22 Diluted $ 0.46 $ 0.48 $ 0.38 $ 0.30 $ 0.44 $ 0.39 $ 0.29 $ 0.21 Shares used in per share calculation Basic 29,196 28,972 28,850 28,679 28,483 28,855 29,368 29,309 Diluted 29,914 29,625 29,422 29,244 29,126 29,298 30,034 30,058 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Revenue [Abstract] | |||
Sell-through deferred revenue | $ 28,100 | $ 25,700 | |
Sell-through deferred cost | 11,900 | 10,600 | |
Inventories [Abstract] | |||
Raw materials | 14,610 | 19,090 | |
Work-in-process | 15,194 | 12,770 | |
Finished goods | 22,760 | 20,074 | |
Total | 52,564 | 51,934 | |
Accounts Receivable [Abstract] | |||
Accounts receivable trade | 46,849 | 43,622 | |
Accrued ship and debit and rebate claims | (39,363) | (35,486) | |
Allowance for doubtful accounts | (525) | (318) | |
Total | 6,961 | 7,818 | |
Prepaid Expenses and Other Current Assets [Abstract] | |||
Prepaid legal fees | 212 | 2,023 | |
Advance to suppliers | 69 | 324 | |
Prepaid income tax | 2,431 | 309 | |
Prepaid maintenance agreements | 1,399 | 736 | |
Interest receivable | 743 | 519 | |
Other | 3,666 | 2,879 | |
Total | 8,520 | 6,790 | |
Employee Benefits Plan [Abstract] | |||
Discretionary company contribution to 401(k) | 1,100 | 1,100 | $ 1,100 |
Foreign Exchange Transactions [Abstract] | |||
Foreign exchange transaction gain | $ (100) | (500) | 100 |
Warranty [Abstract] | |||
Product warranty period | 12 months | ||
Advertising [Abstract] | |||
Advertising costs | $ 1,300 | $ 1,100 | $ 1,500 |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Distributors [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 75.00% | ||
2007 through 2009 [Member] | Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | |||
Income Tax Disclosure [Abstract] | |||
Income tax liability (refund) adjustment from settlement with taxing authority | $ (2,800) | ||
2007 through 2009 [Member] | Internal Revenue Service (IRS) [Member] | State and Local Jurisdiction [Member] | |||
Income Tax Disclosure [Abstract] | |||
Income tax liability (refund) adjustment from settlement with taxing authority | $ (500) |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Available-for-sale Investments) (Details) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Securities |
Schedule of Available-for-sale Securities [Line Items] | ||
Weighted Average Interest Rate on Investments | 1.23% | 0.84% |
Amortized cost | $ 188,543,000 | $ 83,866,000 |
Gross unrealized gains | 38,000 | 8,000 |
Gross unrealized loss | 258,000 | 105,000 |
Estimated fair market value | 188,323,000 | 83,769,000 |
Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 46,338,000 | 38,586,000 |
Gross unrealized gains | 2,000 | 7,000 |
Gross unrealized loss | 2,000 | 10,000 |
Estimated fair market value | 46,338,000 | 38,583,000 |
Investments due in 4-12 months: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 78,900,000 | 33,654,000 |
Gross unrealized gains | 15,000 | 1,000 |
Gross unrealized loss | 76,000 | 36,000 |
Estimated fair market value | 78,839,000 | 33,619,000 |
Investments due between 12 months or greater: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 63,305,000 | 11,626,000 |
Gross unrealized gains | 21,000 | 0 |
Gross unrealized loss | 180,000 | 59,000 |
Estimated fair market value | $ 63,146,000 | $ 11,567,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 0 | 0 |
Commercial paper [Member] | Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 36,996,000 | |
Gross unrealized gains | 0 | |
Gross unrealized loss | 0 | |
Estimated fair market value | 36,996,000 | |
Commercial paper [Member] | Investments due in 4-12 months: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 19,186,000 | |
Gross unrealized gains | 0 | |
Gross unrealized loss | 0 | |
Estimated fair market value | 19,186,000 | |
Corporate securities [Member] | Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 9,342,000 | $ 38,586,000 |
Gross unrealized gains | 2,000 | 7,000 |
Gross unrealized loss | 2,000 | 10,000 |
Estimated fair market value | 9,342,000 | 38,583,000 |
Corporate securities [Member] | Investments due in 4-12 months: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 59,714,000 | 33,654,000 |
Gross unrealized gains | 15,000 | 1,000 |
Gross unrealized loss | 76,000 | 36,000 |
Estimated fair market value | 59,653,000 | 33,619,000 |
Corporate securities [Member] | Investments due between 12 months or greater: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 63,305,000 | 11,626,000 |
Gross unrealized gains | 21,000 | 0 |
Gross unrealized loss | 180,000 | 59,000 |
Estimated fair market value | $ 63,146,000 | $ 11,567,000 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 16,812 | $ 16,464 | $ 15,884 |
Property and equipment [Abstract] | |||
Gross | 257,437 | 246,252 | |
Accumulated depreciation | (162,141) | (146,871) | |
Total | 95,296 | 99,381 | |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | United States | |||
Property and equipment [Abstract] | |||
Gross | $ 155,100 | $ 150,100 | $ 140,000 |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | THAILAND | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk percentage | 12.00% | 12.00% | 13.00% |
Land | |||
Property and equipment [Abstract] | |||
Gross | $ 20,288 | $ 20,288 | |
Construction-in-progress | |||
Property and equipment [Abstract] | |||
Gross | 6,880 | 2,298 | |
Building and improvements | |||
Property and equipment [Abstract] | |||
Gross | 52,156 | 51,941 | |
Machinery and equipment | |||
Property and equipment [Abstract] | |||
Gross | 132,162 | 128,342 | |
Computer software and hardware and office furniture and fixtures | |||
Property and equipment [Abstract] | |||
Gross | $ 45,951 | $ 43,383 | |
Minimum [Member] | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 4 years | ||
Minimum [Member] | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 2 years | ||
Minimum [Member] | Computer software and hardware and office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 4 years | ||
Maximum [Member] | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 40 years | ||
Maximum [Member] | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 8 years | ||
Maximum [Member] | Computer software and hardware and office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Useful life (in years) | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (1,851) | $ (1,136) | $ (470) | |
Other comprehensive income (loss) before reclassifications | (1,012) | (840) | (744) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 153 | 125 | 78 | |
Total other comprehensive loss | (859) | (715) | (666) | |
Ending balance | (2,710) | (1,851) | (1,136) | |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (97) | 83 | 210 | |
Other comprehensive income (loss) before reclassifications | (123) | (180) | (127) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | |
Total other comprehensive loss | (123) | (180) | (127) | |
Ending balance | (220) | (97) | 83 | |
Defined Benefit Pension Items [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (1,584) | (1,240) | (780) | |
Other comprehensive income (loss) before reclassifications | (505) | (469) | (538) | |
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 153 | 125 | 78 |
Total other comprehensive loss | (352) | (344) | (460) | |
Ending balance | (1,936) | (1,584) | (1,240) | |
Foreign Currency Items [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (170) | 21 | 100 | |
Other comprehensive income (loss) before reclassifications | (384) | (191) | (79) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | |
Total other comprehensive loss | (384) | (191) | (79) | |
Ending balance | $ (554) | $ (170) | $ 21 | |
[1] | This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the years ended December 31, 2016, 2015 and 2014. |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Common Stock Repurchases and Common Stock Dividend) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||||||||||||||
Cost of shares repurchased | $ 6,435 | $ 53,731 | $ 80,761 | |||||||||||||
Common stock dividends declared | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.10 | $ 0.10 | ||||
Common Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stock Repurchase Authorization Increase Value | $ 60,000 | $ 75,000 | ||||||||||||||
Number of shares repurchased | 0.1 | 1.3 | 1.6 | |||||||||||||
Cost of shares repurchased | $ 6,400 | $ 53,700 | $ 80,800 | |||||||||||||
Remaining authorized repurchase amount | $ 23,600 | $ 23,600 | ||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock dividends declared, payable 1st quarter 2016 | $ 0.14 | |||||||||||||||
Common stock dividends declared, payable 2nd quarter 2016 | 0.14 | |||||||||||||||
Common stock dividends declared, payable 3rd quarter 2016 | 0.14 | |||||||||||||||
Common stock dividends declared, payable 4th quarter 2016 | $ 0.14 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Recently Issued Accounting Pronouncements) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Sales Revenue, Net [Member] | Accounting Standards Update 2014-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 2 | $ 1 |
Minimum [Member] | Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 7 | |
Minimum [Member] | Accounting Standards Update 2016-09 [Member] | Deferred Tax Asset [Domain] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 7 | |
Maximum [Member] | Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 8 | |
Maximum [Member] | Accounting Standards Update 2016-09 [Member] | Deferred Tax Asset [Domain] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 8 |
STOCK PLANS AND SHARE BASED C40
STOCK PLANS AND SHARE BASED COMPENSATION (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($)planspurchaseperiodsshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based compensation plans | plans | 3 | |||
Number of shares available for future issuance | 3,400,000 | |||
Stock-based compensation expense | $ | $ 20,885,000 | $ 14,767,000 | $ 14,282,000 | |
2007 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for issuance | 3,800,000 | |||
Common stock reserved for future issuance under stock option and stock purchase plans | 1,900,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 1,900,000 | |||
2016 Incentive Award Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for future issuance under stock option and stock purchase plans | 1,500,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 0 | |||
Incentive Stock Options [Member] | 2007 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price of stock options as percentage of fair market value on date of grant, minimum | 100.00% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 4 years | |||
Stock-based compensation expense | $ | $ 13,000,000 | 12,700,000 | 11,300,000 | |
Restricted Stock Units (RSUs) [Member] | Directors Equity Compensation Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Factor used to determine the number of options/units to be granted | $ | $ 100,000 | |||
Employee Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of employee's compensation eligible for payroll deductions | 15.00% | |||
Purchase price of the purchase plan as percentage of the lower of the fair market value on the first day of each offering period or on the purchase date | 85.00% | |||
Number of purchase period in each offering period | purchaseperiods | 1 | |||
Duration of each purchase period in each offering period | 6 months | |||
Shares reserved for issuance | 3,500,000 | |||
Number of shares purchased | 2,900,000 | |||
Common stock reserved for future issuance under stock option and stock purchase plans | 600,000 | |||
Stock-based compensation expense | $ | $ 1,300,000 | $ 1,200,000 | $ 1,300,000 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 697,000 | 1,030,000 | 1,344,000 | 1,691,000 |
Stock-based compensation expense | $ | $ 200,000 | $ 700,000 | $ 1,200,000 | |
Stock Options [Member] | 2007 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 48 months | |||
Awards expiration period, maximum | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 600,000 | |||
Stock Options [Member] | Directors Equity Compensation Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Factor used to determine the number of options/units to be granted | $ | $ 100,000 | |||
Stock Options and Restricted Stock Units (RSUs) [Member] | Directors Equity Compensation Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Factor used to determine the number of options/units to be granted | $ | $ 100,000 |
STOCK PLANS AND SHARE BASED C41
STOCK PLANS AND SHARE BASED COMPENSATION (Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 20,885 | $ 14,767 | $ 14,282 |
Unrecognized compensation costs | 24,612 | ||
Cost of revenues [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 1,148 | 933 | 879 |
Research and Development Expense [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 7,309 | 5,255 | 4,784 |
Selling and Marketing Expense [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 4,489 | 3,644 | 3,540 |
General and Administrative Expense [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 7,939 | 4,935 | 5,079 |
Stock Options [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense | $ 200 | 700 | 1,200 |
Performance Based Awards [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 6,400 | 300 | 500 |
Long-Term Performance-based Awards [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Unrecognized compensation costs | $ 2,562 | ||
Unrecognized compensation costs, period of recognition (in years) | 1 year 6 months 9 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense | $ 13,000 | 12,700 | 11,300 |
Unrecognized compensation costs | $ 21,930 | ||
Unrecognized compensation costs, period of recognition (in years) | 2 years 3 months 8 days | ||
Employee Stock [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 1,300 | $ 1,200 | $ 1,300 |
Unrecognized compensation costs | $ 120 | ||
Unrecognized compensation costs, period of recognition (in years) | 31 days |
STOCK PLANS AND SHARE BASED C42
STOCK PLANS AND SHARE BASED COMPENSATION (Fair Value Assumptions) (Details) - Employee Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Fair Value Assumptions, Weighted Average Risk Free Interest Rate | 0.44% | 0.13% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 32.00% | 29.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.96% | 1.08% | |
Risk-free interest rate, minimum | 0.05% | ||
Risk-free interest rate, maximum | 0.07% | ||
Expected volatility rate minimum | 30.00% | ||
Expected volatility rate maximum | 48.00% | ||
Expected term of stock options/expected life of purchase right (in years) | 6 months | 6 months | 6 months |
Weighted-average estimated fair value of purchase rights | $ 12.23 | $ 10.18 | $ 14.40 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.66% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.85% |
STOCK PLANS AND SHARE BASED C43
STOCK PLANS AND SHARE BASED COMPENSATION (Option Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Option activity under the Plans | |||
Outstanding, shares, beginning of period | 1,030 | 1,344 | 1,691 |
Outstanding, weighted-average exercise price, beginning of period (per share) | $ 27.58 | $ 27.27 | $ 27.34 |
Granted, shares | 0 | 0 | 0 |
Granted, weighted-average exercise price (per share) | $ 0 | $ 0 | $ 0 |
Exercised, shares | (333) | (311) | (347) |
Exercised, weighted-average exercise price (per share) | $ 25.41 | $ 26.11 | $ 27.64 |
Forfeited or expired, shares | 0 | (3) | 0 |
Forfeited or expired, weighted-average exercise price (per share) | $ 0 | $ 37.97 | $ 0 |
Outstanding, shares, end of period | 697 | 1,030 | 1,344 |
Outstanding, weighted-average exercise price, end of period (per share) | $ 28.62 | $ 27.58 | $ 27.27 |
Outstanding, weighted-average remaining contractual term (in years) | 2 years 9 months 25 days | ||
Outstanding, aggregate intrinsic value | $ 27,370 | ||
Exercisable, shares | 697 | ||
Exercisable, weighted-average exercise price (per share) | $ 28.62 | ||
Exercisable, weighted-average remaining contractual term (in years) | 2 years 9 months 25 days | ||
Exercisable, aggregate intrinsic value | $ 27,370 | ||
Vested and expected to vest, shares | 697 | ||
Vested and expected to vest, weighted-average exercise price (per share) | $ 28.62 | ||
Vested and expected to vest, weighted-average remaining contractual term (in years) | 2 years 9 months 25 days | ||
Vested and expected to vest, aggregate intrinsic value | $ 27,370 | ||
Total intrinsic value of options exercised | $ 11,500 | $ 7,000 | $ 9,900 |
STOCK PLANS AND SHARE BASED C44
STOCK PLANS AND SHARE BASED COMPENSATION (Options by Exercise Price Range) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 697 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 9 months 24 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $ 28.62 |
Options Vested and Exercisable, Number Vested | shares | 697 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $ 28.62 |
$17.75 - $25.25 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | 17.75 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $ 25.25 |
Options Outstanding, Number Outstanding | shares | 371 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 1 month 25 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $ 21.31 |
Options Vested and Exercisable, Number Vested | shares | 371 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $ 21.31 |
$25.48 - $42.88 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | 25.48 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $ 42.88 |
Options Outstanding, Number Outstanding | shares | 326 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 3 years 6 months 29 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $ 36.94 |
Options Vested and Exercisable, Number Vested | shares | 326 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $ 36.94 |
STOCK PLANS AND SHARE BASED C45
STOCK PLANS AND SHARE BASED COMPENSATION (Performance-based Awards and Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of performance-based awards shares released as a percentage of target number, minimum | 0.00% | |||
Number of performance-based awards shares released as a percentage of target number, maximum | 200.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward] | ||||
Outstanding, shares | 99,000 | 11,000 | 0 | 100,000 |
Granted, shares | 101,000 | 89,000 | 83,000 | |
Vested, shares | (11,000) | 0 | (83,000) | |
Forfeited or expired, shares | (2,000) | (78,000) | (100,000) | |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ 52.35 | $ 0 | $ 38.48 | |
Granted, weighted-average grant date fair value per share | 46.26 | 52.36 | 53.93 | |
Vested, weighted-average grant date fair value per share | 52.35 | 0 | 38.48 | |
Forfeited or expired, weighted-average grant date fair value per share | 46.87 | 52.35 | 51.30 | |
Outstanding, weighted-average grant date fair value per share, end of period | $ 46.25 | $ 52.35 | $ 0 | |
Outstanding, weighted-average remaining contractual term (in years) | 0 years | |||
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Outstanding, Aggregate Intrinsic Value | $ 6,714 | |||
Outstanding and expected to vest, shares | 99,000 | |||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 0 years | |||
Outstanding and expected to vest, aggregate intrinsic value | $ 6,714 | |||
Grant date fair value of awards released | $ 600 | $ 3,200 | ||
Long-Term Performance-based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of performance-based awards shares released as a percentage of target number, minimum | 0.00% | |||
Number of performance-based awards shares released as a percentage of target number, maximum | 200.00% | |||
Performance based period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward] | ||||
Outstanding, shares | 150,000 | 129,000 | 61,000 | 0 |
Granted, shares | 78,000 | 72,000 | 61,000 | |
Vested, shares | 0 | 0 | 0 | |
Forfeited or expired, shares | (57,000) | (4,000) | 0 | |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ 53.75 | $ 55.51 | $ 0 | |
Granted, weighted-average grant date fair value per share | 43.26 | 52.47 | 55.51 | |
Vested, weighted-average grant date fair value per share | 0 | 0 | 0 | |
Forfeited or expired, weighted-average grant date fair value per share | 55.35 | 57.76 | 0 | |
Outstanding, weighted-average grant date fair value per share, end of period | $ 47.65 | $ 53.75 | $ 55.51 | |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 6 months 9 days | |||
Outstanding, aggregate intrinsic value | $ 10,177 | |||
Outstanding and expected to vest, shares | 113,000 | |||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 1 year 6 months 5 days | |||
Outstanding and expected to vest, aggregate intrinsic value | $ 7,659 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward] | ||||
Outstanding, shares | 718,000 | 681,000 | 692,000 | 714,000 |
Granted, shares | 331,000 | 319,000 | 281,000 | |
Vested, shares | (270,000) | (267,000) | (267,000) | |
Forfeited or expired, shares | (24,000) | (63,000) | (36,000) | |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ 46.98 | $ 43.86 | $ 38.97 | |
Granted, weighted-average grant date fair value per share | 46.70 | 49.75 | 51.12 | |
Vested, weighted-average grant date fair value per share | 45.13 | 42.49 | 38.57 | |
Forfeited or expired, weighted-average grant date fair value per share | 47.21 | 45.71 | 42.74 | |
Outstanding, weighted-average grant date fair value per share, end of period | $ 47.54 | $ 46.98 | $ 43.86 | |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 3 months | |||
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Outstanding, Aggregate Intrinsic Value | $ 48,684 | |||
Outstanding and expected to vest, shares | 674,000 | |||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 1 year 2 months 10 days | |||
Outstanding and expected to vest, aggregate intrinsic value | $ 45,711 | |||
Grant date fair value of awards released | $ 12,200 | $ 11,300 | $ 10,300 | |
2007 Equity Incentive Plan [Member] | Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reduction in number of shares available for issuance under the 2007 Plan per award granted | 2 | |||
2007 Equity Incentive Plan [Member] | Long-Term Performance-based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reduction in number of shares available for issuance under the 2007 Plan per award granted | 2 | |||
2007 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reduction in number of shares available for issuance under the 2007 Plan per award granted | 2 | |||
2016 Incentive Award Plan [Member] | Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reduction in number of shares available for issuance under the 2007 Plan per award granted | 1 | |||
2016 Incentive Award Plan [Member] | Long-Term Performance-based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reduction in number of shares available for issuance under the 2007 Plan per award granted | 1 | |||
2016 Incentive Award Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reduction in number of shares available for issuance under the 2007 Plan per award granted | 1 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset at fair value | $ 192,088 | $ 105,067 |
Commercial paper [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 58,031 | 21,194 |
Money market funds [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 1,916 | 104 |
Corporate securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 132,141 | 83,769 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset at fair value | 1,916 | 104 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 1,916 | 104 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset at fair value | 190,172 | 104,963 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 58,031 | 21,194 |
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | $ 132,141 | $ 83,769 |
GOODWILL AND INTANGIBLE ASSET47
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 02, 2015 | ||
Intangible Assets, Net[Abstract] | |||||
Total intangible assets, Gross | $ 62,911 | $ 62,911 | |||
Accumulated amortization | (31,409) | (24,746) | |||
Total Finite Lived Intangible Assets, Net | [1] | 25,551 | |||
Total Intangible Assets, Net | 31,502 | 38,165 | |||
Amortization of intangibles | $ 6,663 | 7,039 | $ 6,072 | ||
Cambridge Semiconductor Limited [Member] | |||||
Intangible Assets and Goodwill [Line Items] | |||||
Intangible assets | $ 9,020 | ||||
Minimum [Member] | |||||
Intangible Assets and Goodwill [Line Items] | |||||
Useful life (in years) | 2 years | ||||
Maximum [Member] | |||||
Intangible Assets and Goodwill [Line Items] | |||||
Useful life (in years) | 12 years | ||||
Technology licenses [Member] | |||||
Intangible Assets, Net[Abstract] | |||||
Finite-Lived Intangible Assets, Gross | $ 3,000 | 3,000 | |||
Accumulated amortization | (3,000) | (2,925) | |||
Total Finite Lived Intangible Assets, Net | 0 | 75 | |||
Developed technology [Member] | |||||
Intangible Assets, Net[Abstract] | |||||
Finite-Lived Intangible Assets, Gross | 33,270 | 33,270 | |||
Accumulated amortization | (15,455) | (11,670) | |||
Total Finite Lived Intangible Assets, Net | $ 17,815 | 21,600 | |||
Developed technology [Member] | Cambridge Semiconductor Limited [Member] | |||||
Intangible Assets and Goodwill [Line Items] | |||||
Intangible assets | 6,600 | ||||
Developed technology [Member] | Minimum [Member] | Cambridge Semiconductor Limited [Member] | |||||
Intangible Assets and Goodwill [Line Items] | |||||
Useful life (in years) | 3 years | ||||
Developed technology [Member] | Maximum [Member] | Cambridge Semiconductor Limited [Member] | |||||
Intangible Assets and Goodwill [Line Items] | |||||
Useful life (in years) | 7 years | ||||
Customer relationships [Member] | |||||
Intangible Assets, Net[Abstract] | |||||
Finite-Lived Intangible Assets, Gross | $ 20,030 | 20,030 | |||
Accumulated amortization | (12,474) | (10,031) | |||
Total Finite Lived Intangible Assets, Net | $ 7,556 | 9,999 | |||
Customer relationships [Member] | Cambridge Semiconductor Limited [Member] | |||||
Intangible Assets and Goodwill [Line Items] | |||||
Intangible assets | $ 2,420 | ||||
Useful life (in years) | 5 years | ||||
Leases, Acquired-in-Place [Member] | |||||
Intangible Assets, Net[Abstract] | |||||
Finite-Lived Intangible Assets, Gross | $ 660 | 660 | |||
Accumulated amortization | (480) | (120) | |||
Total Finite Lived Intangible Assets, Net | 180 | 540 | |||
Internet Domain Names [Member] | |||||
Intangible Assets, Net[Abstract] | |||||
Indefinite-lived intangible assets | 1,261 | 1,261 | |||
In-process research and developement [Member] | |||||
Intangible Assets, Net[Abstract] | |||||
Finite-Lived Intangible Assets, Gross | 4,690 | 4,690 | |||
Total Finite Lived Intangible Assets, Net | 4,690 | $ 4,690 | |||
In-process research and developement [Member] | Early Stage Research And Developement Company [Member] | |||||
Intangible Assets and Goodwill [Line Items] | |||||
Finite-lived intangible assets | $ 4,690 | ||||
[1] | The total above excludes $4.7 million of in-process R&D which will be amortized upon completion of development over the estimated useful life of the technology. |
GOODWILL AND INTANGIBLE ASSET48
GOODWILL AND INTANGIBLE ASSETS (Intangible Assets Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 6,663 | $ 7,039 | $ 6,072 | |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||||
2,017 | 6,084 | |||
2,018 | 5,152 | |||
2,019 | 4,753 | |||
2,020 | 3,528 | |||
2,021 | 2,662 | |||
Thereafter | 3,372 | |||
Total Finite Lived Intangible Assets, Net | [1] | 25,551 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 31,409 | 24,746 | ||
Leases, Acquired-in-Place [Member] | ||||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||||
Total Finite Lived Intangible Assets, Net | 180 | 540 | ||
Finite-Lived Intangible Assets, Gross | 660 | 660 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 480 | 120 | ||
Developed technology [Member] | ||||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||||
Total Finite Lived Intangible Assets, Net | 17,815 | 21,600 | ||
Finite-Lived Intangible Assets, Gross | 33,270 | 33,270 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 15,455 | 11,670 | ||
Customer relationships [Member] | ||||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||||
Total Finite Lived Intangible Assets, Net | 7,556 | 9,999 | ||
Finite-Lived Intangible Assets, Gross | 20,030 | 20,030 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 12,474 | $ 10,031 | ||
Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life (in years) | 2 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life (in years) | 12 years | |||
Cambridge Semiconductor Limited [Member] | Customer relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life (in years) | 5 years | |||
Cambridge Semiconductor Limited [Member] | Minimum [Member] | Developed technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life (in years) | 3 years | |||
Cambridge Semiconductor Limited [Member] | Maximum [Member] | Developed technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life (in years) | 7 years | |||
[1] | The total above excludes $4.7 million of in-process R&D which will be amortized upon completion of development over the estimated useful life of the technology. |
GOODWILL AND INTANGIBLE ASSET49
GOODWILL AND INTANGIBLE ASSETS Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Goodwill | $ 91,849 | $ 91,849 | $ 80,599 |
Goodwill, Acquired During Period | $ 0 | $ 11,250 |
SIGNIFICANT CUSTOMERS AND INT50
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES (Customer and Credit Risk Concentration) (Details) | 12 Months Ended | ||
Dec. 31, 2016customerssegments | Dec. 31, 2015customers | Dec. 31, 2014customers | |
Concentration Risk [Line Items] | |||
Number of reportable segments | segments | 1 | ||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage benchmark for total accounts receivable | 10.00% | 10.00% | |
Number of major customers | 10 | 10 | |
Concentration risk percentage | 70.00% | 66.00% | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Avnet [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 24.00% | 20.00% | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | ATM Electronic Corporation [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | |||
Concentration Risk [Line Items] | |||
Number of major customers | 10 | 10 | 10 |
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Concentration risk percentage of net revenue | 60.00% | 60.00% | 59.00% |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Avnet [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage of net revenue | 18.00% | 21.00% | 19.00% |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Powertech Distribution Ltd. [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage of net revenue | 11.00% | 10.00% |
SIGNIFICANT CUSTOMERS AND INT51
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES (International Sales) (Details) - Geographic Concentration Risk [Member] - Sales Revenue, Goods, Net [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers [Line Items] | |||
Concentration risk percentage of net revenue | 96.00% | 95.00% | 95.00% |
Hong Kong/China [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration risk percentage of net revenue | 51.00% | 50.00% | 47.00% |
Taiwan [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration risk percentage of net revenue | 13.00% | 14.00% | 15.00% |
Korea [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration risk percentage of net revenue | 11.00% | 10.00% | 11.00% |
Western Europe Excluding Germany [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration risk percentage of net revenue | 11.00% | 11.00% | 11.00% |
Japan [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration risk percentage of net revenue | 5.00% | 5.00% | 5.00% |
Germany [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration risk percentage of net revenue | 2.00% | 2.00% | 2.00% |
Other Countries [Member] | |||
Revenues from External Customers [Line Items] | |||
Concentration risk percentage of net revenue | 3.00% | 3.00% | 4.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Basic earnings per share: | ||||||||||||
Net income | $ 13,617 | $ 14,165 | $ 11,265 | $ 8,843 | $ 12,701 | $ 11,513 | $ 8,590 | $ 6,343 | $ 47,890 | $ 39,147 | $ 59,544 | |
Weighted-average common shares | 29,196,000 | 28,972,000 | 28,850,000 | 28,679,000 | 28,483,000 | 28,855,000 | 29,368,000 | 29,309,000 | 28,925,000 | 29,001,000 | 29,976,000 | |
Basic earnings per share | $ 0.47 | $ 0.49 | $ 0.39 | $ 0.31 | $ 0.45 | $ 0.40 | $ 0.29 | $ 0.22 | $ 1.66 | $ 1.35 | $ 1.99 | |
Diluted earnings per share: | ||||||||||||
Net income | $ 13,617 | $ 14,165 | $ 11,265 | $ 8,843 | $ 12,701 | $ 11,513 | $ 8,590 | $ 6,343 | $ 47,890 | $ 39,147 | $ 59,544 | |
Weighted-average common shares | 29,196,000 | 28,972,000 | 28,850,000 | 28,679,000 | 28,483,000 | 28,855,000 | 29,368,000 | 29,309,000 | 28,925,000 | 29,001,000 | 29,976,000 | |
Effect of dilutive securities: | ||||||||||||
Employee stock plans | [1] | 694,000 | 695,000 | 853,000 | ||||||||
Diluted weighted average common shares | [1] | 29,914,000 | 29,625,000 | 29,422,000 | 29,244,000 | 29,126,000 | 29,298,000 | 30,034,000 | 30,058,000 | 29,619,000 | 29,696,000 | 30,829,000 |
Diluted earnings per share | [1] | $ 0.46 | $ 0.48 | $ 0.38 | $ 0.30 | $ 0.44 | $ 0.39 | $ 0.29 | $ 0.21 | $ 1.62 | $ 1.32 | $ 1.93 |
Antidilutive shares attributable to stock-based awards outstanding excluded from computation of diluted earnings per share | 0 | 8,000 | 37,000 | |||||||||
[1] | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included in the 2016 and 2015 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | $ 0 | $ (189) | $ 815 |
U.S. and foreign components of income before income taxes [Abstract] | |||
U.S. operations | (880) | (2,113) | (5,064) |
Foreign operations | 49,802 | 41,531 | 61,878 |
INCOME BEFORE INCOME TAXES | 48,922 | 39,418 | 56,814 |
Current provision: | |||
Federal | 0 | 443 | (1,234) |
State | 0 | 83 | (137) |
Foreign | 1,638 | 5,407 | 3,094 |
Current provision | 1,638 | 5,933 | 1,723 |
Deferred provision (benefit): | |||
Federal | (197) | (1,699) | (3,279) |
State | (27) | (57) | (284) |
Foreign | (382) | (3,906) | (890) |
Deferred provision (benefit) | (606) | (5,662) | (4,453) |
Total | $ 1,032 | $ 271 | $ (2,730) |
Effective income tax rate reconciliation [Abstract] | |||
Provision computed at Federal statutory rate | 35.00% | 35.00% | 35.00% |
Business tax credits | (6.00%) | (6.80%) | (5.50%) |
Stock-based compensation | 2.20% | 0.80% | (2.90%) |
Foreign income taxed at different rate | (33.10%) | (33.10%) | (28.60%) |
IRS audit settlement | 0.00% | 0.00% | (5.80%) |
Valuation allowance | 1.80% | 2.60% | 2.00% |
Other | 2.20% | 2.20% | 1.00% |
Total | 2.10% | 0.70% | (4.80%) |
Components of deferred income tax asset [Abstract] | |||
Other reserves and accruals | $ 1,880 | $ 1,573 | |
Tax credit carry-forwards | 26,895 | 22,826 | |
Stock compensation | 5,760 | 5,945 | |
Capital losses | 10,585 | 11,490 | |
Net operating loss | 2,671 | 3,677 | |
Deferred Tax Assets, Other | 174 | 0 | |
Valuation allowance | (27,489) | (26,918) | |
Deferred tax assets, net of valuation allowance | 20,476 | 18,593 | |
Depreciation | (2,322) | (2,968) | |
Unremitted earnings | (7,019) | (4,626) | |
Other | 0 | (447) | |
Deferred tax liabilities | (9,341) | (8,041) | |
Net deferred tax asset | 11,135 | 10,552 | |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized Tax Benefits, Balance at beginning of period | 13,560 | 11,160 | $ 12,694 |
Gross Increases for Tax Positions of Current Year | 1,856 | 3,063 | 2,117 |
Gross Decrease for Tax Positions of Prior Years | (23) | (663) | |
Gross Increases for Tax Positions of Prior Years | 710 | ||
Settlements | 0 | 0 | (4,361) |
Lapse of Statute of Limitations | 0 | 0 | 0 |
Unrecognized Tax Benefits, Balance at end of period | 15,393 | 13,560 | 11,160 |
Unrecognized tax benefits [Abstract] | |||
Undistributed earnings of the Company's foreign subsidiaries | 265,000 | ||
Unrecognized Tax Benefits, Balance at end of period | 15,393 | 13,560 | 11,160 |
Income tax benefit that would be recorded if unrecognized tax benefits are recognized | 9,300 | ||
Income tax interest and penalties accrued | 100 | $ 100 | |
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 31,300 | ||
State and Local Jurisdiction [Member] | California Taxing Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 45,500 | ||
Research Tax Credit Carryforward [Member] | Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 14,900 | ||
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | California Taxing Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 18,700 | ||
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | New Jersey Division of Taxation [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 700 | ||
Research Tax Credit Carryforward [Member] | Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | $ 2,100 | ||
2007 through 2009 [Member] | Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax liability (refund) adjustment from settlement with taxing authority | (3,300) | ||
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits [Roll Forward] | |||
Settlements | (4,100) | ||
2007 through 2009 [Member] | Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax liability (refund) adjustment from settlement with taxing authority | (2,800) | ||
2007 through 2009 [Member] | State and Local Jurisdiction [Member] | Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax liability (refund) adjustment from settlement with taxing authority | $ (500) |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,017 | $ 1,591,000 | ||
2,018 | 1,414,000 | ||
2,019 | 565,000 | ||
2,020 | 248,000 | ||
2,021 | 211,000 | ||
Thereafter | 358,000 | ||
Total minimum lease payments | 4,387,000 | ||
Rent expense, net | 1,900,000 | $ 2,000,000 | $ 1,800,000 |
Non-cancelable purchase obligations | $ 0 |
LEGAL PROCEEDINGS AND CONTING55
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions | Dec. 27, 2016patent | Nov. 01, 2016patent | Aug. 11, 2016patent | Apr. 01, 2016patent | Oct. 21, 2015patents | May 01, 2012USD ($)patents | Feb. 03, 2011USD ($) | May 05, 2010patents | Dec. 18, 2009patents | Nov. 04, 2009patentpatents | Dec. 22, 2008 | Dec. 12, 2008USD ($) | Nov. 07, 2008patents | May 23, 2008patents | Oct. 10, 2006USD ($) | Oct. 20, 2004patents | Dec. 31, 2015USD ($) | Jun. 30, 2015patent | Feb. 28, 2014USD ($)patentpatents | Dec. 31, 2012patents | Apr. 30, 2012patents | May 31, 2010patents | Feb. 28, 2010USD ($)patents | Dec. 31, 2016 |
Counterclaims [Member] | Patent Infringement Claim Three Counterclaim [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 2 | 1 | ||||||||||||||||||||||
Counterclaims [Member] | Patent Infringment Claim Five [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Damages Awarded, Value | $ | $ 2.4 | |||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 5 | |||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Two [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 2 | |||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Two Counterclaim [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Found Not Infringed, Number | 1 | |||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Four [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Found Not Infringed, Number | 4 | |||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringment Claim Five [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | patent | 1 | |||||||||||||||||||||||
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] | ||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 3 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Two Counterclaim [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | |||||||||||||||||||||||
Number of patents remaining in infringement claims | 2 | 2 | ||||||||||||||||||||||
Percent of revenue impacted by patents involved in litigation | 0.50% | |||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 3 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Three Counterclaim [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Four [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Damages Sought, Value | $ | $ 19 | |||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 4 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringment Claim Five [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | |||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 4 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringment Claim Six [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 2 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Seven [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 1 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Eight [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 5 | |||||||||||||||||||||||
Number of Patents Seeking Declaration of Non-Infringement in Filed Infringement Claims | patent | 3 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Nine [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | patent | 6 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Ten [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 6 | |||||||||||||||||||||||
Positive Outcome of Litigation [Member] | Patent Infringement Claim One [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 4 | |||||||||||||||||||||||
Litigation Settlement, Amount | $ | $ 12.9 | |||||||||||||||||||||||
Loss Contingency, Damages Awarded, Value | $ | $ 6.1 | $ 34 | ||||||||||||||||||||||
Positive Outcome of Litigation [Member] | Patent Infringement Claim Three [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Litigation Settlement, Amount | $ | $ 139.8 | $ 105 | ||||||||||||||||||||||
Number of Patents in Infringement Case, Unenforceable | patent | 1 | 1 | ||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 2 | |||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 2 |
ACQUISITIONS (Cambridge Semicon
ACQUISITIONS (Cambridge Semiconductor Limited) (Details) - USD ($) $ in Millions | Jan. 02, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 |
Cambridge Semiconductor Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
CamSemi Purchase Price | $ 23.3 | |||
Payments to Acquire Businesses, Gross | 16.7 | |||
Consideration applied against outstanding loan | 6.6 | |||
Business Combination, Accumulated Acquisition Related Costs | $ 1 | $ 1 | ||
Business Combination, Acquisition Related Costs | $ 0.2 | $ 0.8 | ||
Cambridge Semiconductor Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Loan to Cambridge Semiconductor | $ 6.6 |
ACQUISITIONS (Purchase Price an
ACQUISITIONS (Purchase Price and Estimated Fair Values) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 02, 2015 | Dec. 31, 2014 |
Assets Acquired | ||||
Goodwill | $ 91,849 | $ 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 | |||
Developed technology [Member] | Cambridge Semiconductor Limited [Member] | ||||
Assets Acquired | ||||
Intangible assets | 6,600 | |||
Customer relationships [Member] | Cambridge Semiconductor Limited [Member] | ||||
Assets Acquired | ||||
Intangible assets | $ 2,420 |
ACQUISITIONS Building (Details)
ACQUISITIONS Building (Details) - Building [Member] - USD ($) $ in Millions | Aug. 31, 2015 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Intangible Asset Useful life (in years) | 2 years | |
Payments to Acquire Businesses, Gross | $ 10.4 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land | 3.5 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings | 6.3 | |
Intangible assets | 0.7 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 0.1 | |
Property, Plant and Equipment, Useful Life | 30 years |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation | $ 3,900 | $ 3,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 7,900 | 6,000 | |
Business Acquisition, Purchase Price Allocation, Projected Benefit Obligation (Asset), Net of Plan Assets Acquired | 11,800 | 9,000 | |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 400 | ||
Defined Benefit Pension Items [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | $ (1,936) | $ (1,584) | $ (1,240) |
BANK LINE OF CREDIT (Details)
BANK LINE OF CREDIT (Details) | Dec. 31, 2016USD ($) | Jul. 27, 2016USD ($) | Jul. 05, 2012USD ($)banks |
Line of Credit Facility [Line Items] | |||
Number of banks used for Credit Agreement | banks | 2 | ||
Credit Agreement, maximum borrowing capacity | $ 75,000,000 | $ 100,000,000 | |
Line of credit, amount outstanding | $ 0 | ||
Letter of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit Agreement, maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 |
SELECTED QUARTERLY INFORMATIO61
SELECTED QUARTERLY INFORMATION (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jan. 02, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||||||||||
NET REVENUES | $ 101,108 | $ 103,790 | $ 97,169 | $ 85,326 | $ 87,289 | $ 88,878 | $ 85,265 | $ 82,557 | $ 387,393 | $ 343,989 | $ 348,797 | ||
Gross Profit | 49,384 | 51,193 | 47,637 | 42,947 | 42,916 | 44,161 | 44,018 | 42,292 | 191,161 | 173,387 | 189,570 | ||
Net income | $ 13,617 | $ 14,165 | $ 11,265 | $ 8,843 | $ 12,701 | $ 11,513 | $ 8,590 | $ 6,343 | $ 47,890 | $ 39,147 | $ 59,544 | ||
Earnings per share | |||||||||||||
Basic (per share) | $ 0.47 | $ 0.49 | $ 0.39 | $ 0.31 | $ 0.45 | $ 0.40 | $ 0.29 | $ 0.22 | $ 1.66 | $ 1.35 | $ 1.99 | ||
Diluted (per share) | [1] | $ 0.46 | $ 0.48 | $ 0.38 | $ 0.30 | $ 0.44 | $ 0.39 | $ 0.29 | $ 0.21 | $ 1.62 | $ 1.32 | $ 1.93 | |
Shares used in per share calculation | |||||||||||||
Basic (in shares) | 29,196 | 28,972 | 28,850 | 28,679 | 28,483 | 28,855 | 29,368 | 29,309 | 28,925 | 29,001 | 29,976 | ||
Diluted (in shares) | [1] | 29,914 | 29,625 | 29,422 | 29,244 | 29,126 | 29,298 | 30,034 | 30,058 | 29,619 | 29,696 | 30,829 | |
Cambridge Semiconductor Limited [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
CamSemi Purchase Price | $ 23,300 | ||||||||||||
Payments to Acquire Businesses, Gross | 16,700 | ||||||||||||
Consideration applied against outstanding loan | 6,600 | ||||||||||||
Business Combination, Accumulated Acquisition Related Costs | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||
Business Combination, Acquisition Related Costs | $ 200 | $ 800 | |||||||||||
[1] | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded all performance-based awards in the 2014 calculation as the performance conditions for those awards were not met as of the end of the period. The Company has included in the 2016 and 2015 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. |
Schedule II - Valuation and Q62
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 318 | $ 191 | $ 120 | |
Charged to Costs and Expenses | 207 | 133 | 135 | |
Deductions | [1] | 0 | (6) | (64) |
Balance at End of Period | 525 | 318 | 191 | |
Allowance for Ship and Debit Credits [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 34,415 | 27,425 | 28,696 | |
Charged to Costs and Expenses | 262,501 | 195,669 | 177,260 | |
Deductions | [2] | (258,841) | (188,679) | (178,531) |
Balance at End of Period | $ 38,075 | $ 34,415 | $ 27,425 | |
[1] | (1) Deductions relate to amounts written off against the allowance for doubtful accounts. | |||
[2] | Deductions relate to ship and debit credits issued which adjust the sell-in price from the standard distribution price to the pre-approved lower price. Refer to Note 2, Summary of Significant Accounting Policies, for the Company’s revenue recognition policy, including the Company’s accounting for ship and debit claims. |