DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION Document - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 14, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | POWER INTEGRATIONS INC | |
Entity Central Index Key | 833,640 | |
Trading Symbol | POWI | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 29,758,991 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 32,649 | $ 62,134 |
Short-term marketable securities | 221,346 | 188,323 |
Accounts receivable, net of allowances for doubtful accounts of $605 and $525 in 2017 and 2016, respectively | 18,697 | 6,528 |
Inventories | 52,432 | 52,564 |
Prepaid expenses and other current assets | 16,902 | 8,715 |
Total current assets | 342,026 | 318,264 |
PROPERTY AND EQUIPMENT, net | 113,202 | 95,296 |
INTANGIBLE ASSETS, net | 28,324 | 31,502 |
GOODWILL | 91,849 | 91,849 |
DEFERRED TAX ASSETS | 19,328 | 11,342 |
OTHER ASSETS | 6,809 | 6,157 |
Total assets | 601,538 | 554,410 |
CURRENT LIABILITIES: | ||
Accounts payable | 30,124 | 29,727 |
Accrued payroll and related expenses | 11,639 | 10,756 |
Taxes payable | 1,072 | 729 |
Other accrued liabilities | 3,858 | 2,734 |
Total current liabilities | 46,693 | 43,946 |
LONG-TERM INCOME TAXES PAYABLE | 2,805 | 2,639 |
DEFERRED TAX LIABILITIES | 615 | 820 |
OTHER LIABILITIES | 4,422 | 3,921 |
Total liabilities | 54,535 | 51,326 |
COMMITMENTS AND CONTINGENCIES (Notes 11, 12 and 13) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | 29 | 28 |
Additional paid-in capital | 189,259 | 172,875 |
Accumulated other comprehensive loss | (2,419) | (2,710) |
Retained earnings | 360,134 | 332,891 |
Total stockholders’ equity | 547,003 | 503,084 |
Total liabilities and stockholders’ equity | $ 601,538 | $ 554,410 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (PARENTHETICAL) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 605 | $ 525 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Income Statement [Abstract] | |||||
NET REVENUES | $ 107,563 | $ 97,571 | $ 212,251 | $ 185,607 | |
COST OF REVENUES | 54,116 | 49,786 | 108,328 | 93,334 | |
GROSS PROFIT | 53,447 | 47,785 | 103,923 | 92,273 | |
OPERATING EXPENSES: | |||||
Research and development | 17,341 | 15,859 | 33,981 | 30,638 | |
Sales and marketing | 13,144 | 12,018 | 25,360 | 23,424 | |
General and administrative | 8,765 | 8,133 | 17,469 | 15,983 | |
Total operating expenses | 39,250 | 36,010 | 76,810 | 70,045 | |
INCOME FROM OPERATIONS | 14,197 | 11,775 | 27,113 | 22,228 | |
OTHER INCOME | 465 | 236 | 971 | 497 | |
INCOME BEFORE INCOME TAXES | 14,662 | 12,011 | 28,084 | 22,725 | |
PROVISION FOR INCOME TAXES | 760 | 604 | 83 | 939 | |
NET INCOME | $ 13,902 | $ 11,407 | $ 28,001 | $ 21,786 | |
EARNINGS PER SHARE: | |||||
Basic (in dollars per share) | $ 0.47 | $ 0.40 | $ 0.95 | $ 0.76 | |
Diluted (in dollars per share) | [1] | $ 0.46 | $ 0.39 | $ 0.92 | $ 0.74 |
SHARES USED IN PER SHARE CALCULATION: | |||||
Basic (in shares) | 29,720 | 28,850 | 29,589 | 28,765 | |
Diluted (in shares) | 30,454 | 29,422 | 30,370 | 29,361 | |
[1] | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2017 and 2016 calculations as the shares were not contingently issuable as of the end of the reporting periods. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 13,902 | $ 11,407 | $ 28,001 | $ 21,786 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments, net of $0 tax in the three and six months ended June 30, 2017 and 2016 | 31 | 37 | 95 | (17) |
Unrealized gain on marketable securities, net of $0 tax in the three and six months ended June 30, 2017 and 2016 | 15 | 48 | 98 | 261 |
Amortization of defined benefit pension items, net of tax of $14 and $27 in the three and six months ended June 30, 2017, respectively, and $11 and $22 in the three and six months ended June 30, 2016, respectively | 49 | 40 | 98 | 80 |
Total other comprehensive income | 95 | 125 | 291 | 324 |
TOTAL COMPREHENSIVE INCOME | $ 13,997 | $ 11,532 | $ 28,292 | $ 22,110 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on marketable securities, tax | 0 | 0 | 0 | 0 |
Amortization of defined benefit pension items, tax | $ 14 | $ 11 | $ 27 | $ 22 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 28,001 | $ 21,786 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 8,469 | 8,521 |
Amortization of intangibles | 3,178 | 3,439 |
Loss on disposal of property and equipment | 38 | 148 |
Stock-based compensation expense | 11,296 | 9,428 |
Amortization of premium on marketable securities | 508 | 429 |
Deferred income taxes | (648) | 225 |
Increase in accounts receivable allowances | 80 | 193 |
Change in operating assets and liabilities: | ||
Accounts receivable | (12,249) | (6,252) |
Inventories | 132 | 5,185 |
Prepaid expenses and other assets | (8,349) | (674) |
Accounts payable | (3,629) | 3,039 |
Taxes payable and accrued liabilities | 3,208 | (1,566) |
Net cash provided by operating activities | 30,035 | 43,901 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (22,876) | (4,890) |
Purchases of marketable securities | (111,574) | (66,211) |
Proceeds from maturities of marketable securities | 78,140 | 52,921 |
Net cash used in investing activities | (56,310) | (18,180) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of common stock under employee stock plans | 5,089 | 3,448 |
Repurchase of common stock | 0 | (6,435) |
Payments of dividends to stockholders | (8,299) | (7,483) |
Net cash used in financing activities | (3,210) | (10,470) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (29,485) | 15,251 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 62,134 | 90,092 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 32,649 | 105,343 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Unpaid property and equipment | 5,851 | 1,140 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid (refund) for income taxes, net | $ (1,775) | $ 4,564 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION: The condensed consolidated financial statements include the accounts of Power Integrations, Inc., a Delaware corporation (the “Company”), and its wholly owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. While the financial information furnished is unaudited, the condensed consolidated financial statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair presentation of the results of operations for the interim periods covered and the financial condition of the Company at the date of the interim balance sheet in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year. The condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and the notes thereto for the year ended December 31, 2016 , included in its Form 10-K filed on February 8, 2017 , with the Securities and Exchange Commission. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNITNG PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
Significant accounting policies and recent accounting pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS: Significant Accounting Policies and Estimates Except for the changes below, no material changes have been made to the Company's significant accounting policies disclosed in Note 2, Summary of Significant Accounting Policies , in its Annual Report on Form 10-K, filed on February 8, 2017 , for the year ended December 31, 2016 . The accounting policy information below is to aid in the understanding of the financial information disclosed. The Company adopted Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606-10), effective on January 1, 2017. Prior to the adoption of ASC 606-10, the Company deferred the recognition of revenue and the cost of revenue from certain sales until the distributors reported that they had sold the products to their customers (known as “sell-through” revenue recognition). Under ASC 606-10, the Company recognizes revenue on sales to all distributors upon shipment and transfer of control (known as “sell-in” revenue recognition). As a result of this adoption, the Company revised its accounting policy for revenue recognition as detailed below. Revenue Recognition The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers , and all related appropriate guidance. The Company recognizes revenue under the core principle to depict the transfer of control to the Company’s customers in an amount reflecting the consideration the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Product revenues consist of sales to original equipment manufacturers, or OEMs, merchant power supply manufacturers and distributors. The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. In situations where sales are to a distributor, the Company has concluded that its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration of the contract, the Company evaluates certain factors including the customer’s ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on their relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment. Further, in determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Frequently, the Company receives orders for products to be delivered over multiple dates that may extend across several reporting periods. The Company invoices for each delivery upon shipment and recognizes revenues for each distinct product delivered, assuming transfer of control has occurred. As scheduled delivery dates are within one year, under the optional exemption provided by ASC 606-10-50-14 revenues allocated to future shipments of partially completed contracts are not disclosed. Sales to international customers that are shipped from the Company’s facility outside of the United States are pursuant to EX Works, or EXW, shipping terms, meaning that control of the product transfers to the customer upon shipment from the Company’s foreign warehouse. Sales to international customers that are shipped from the Company’s facility in California are pursuant to Delivered at Frontier, or DAF, shipping terms. As such, control of 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 customers in the Americas are pursuant to Free on Board, or FOB, point of origin shipping terms meaning that control is passed to the customer upon shipment. Sales to most distributors are made under terms allowing certain price adjustments and limited rights of return (known as “stock rotation”) of the Company’s products held in their inventory or upon sale to their end customers. Revenue from sales to distributors is recognized upon the transfer of control to the distributor. Frequently, distributors need to sell at a price lower than the standard distribution price in order to win business. At the time the distributor invoices its customer or soon thereafter, 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 the Company verifies that the claim was pre-approved, a credit memo is issued to the distributor for the ship and debit claim. In determining the transaction price, the Company considers ship and debit price adjustments to be variable consideration. Such price adjustments are estimated using the expected value method based on an analysis of actual ship and debit claims, at the distributor and product level, over a period of time considered adequate to account for current pricing and business trends. Historically, actual price adjustments for ship and debit claims relative to those estimated and included when determining the transaction price have not materially differed. Stock rotation rights grant the distributor the ability to return certain specified amounts of inventory. Stock rotation adjustments are an additional form of variable consideration and are also estimated using the expected value method based on historical return rates. Historically, distributor stock rotation adjustments have not been material. Sales to certain distributors are made under terms that do not include rights of return or price concessions after the product is shipped to the distributor. Accordingly, upon application of steps one through five above, product revenue is recognized upon shipment and transfer of control. The Company generally provides an assurance warranty that its products will substantially conform to the published specifications for twelve 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. As such, the Company does not record a specific warranty reserve or consider activities related to such warranty, if any, to be a separate performance obligation. Adoption of New Accounting Standards 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 Company elected to early adopt these standards, effective on January 1, 2017, using the full retrospective method, under which the amendments were applied to all prior periods presented. Under the new standards the Company recognizes all revenue on sales to distributors upon shipment and transfer of control (known as “sell-in” revenue recognition), rather than deferring recognition on sales to certain distributors until the distributors report that they have sold the products to their customers (known as “sell-through” revenue recognition). The impact of adoption on the Company's previously reported condensed consolidated financial statements were as follows: Condensed Consolidated Balance Sheet: December 31, 2016 (In thousands) As Reported Impact of Adoption As Adjusted Accounts receivable, net $ 6,961 $ (433 ) $ 6,528 Prepaid expenses and other current assets 8,520 195 8,715 Deferred tax assets 12,032 (690 ) 11,342 Deferred income on sales to distributors 16,207 (16,207 ) — Other accrued liabilities 2,434 300 2,734 Retained earnings $ 317,912 $ 14,979 $ 332,891 Three Months Ended Six Months Ended Condensed Consolidated Statements of Income: June 30, 2016 June 30, 2016 (In thousands, except per share) As Reported Impact of Adoption As Adjusted As Reported Impact of Adoption As Adjusted Net revenues $ 97,169 $ 402 $ 97,571 $ 182,495 $ 3,112 $ 185,607 Cost of revenues 49,532 254 49,786 91,911 1,423 93,334 Provision for income taxes 598 6 604 928 11 939 Net income $ 11,265 $ 142 $ 11,407 $ 20,108 $ 1,678 $ 21,786 Earnings per share Basic $ 0.39 $ 0.01 $ 0.40 $ 0.70 $ 0.06 $ 0.76 Diluted $ 0.38 $ 0.01 $ 0.39 $ 0.68 $ 0.06 $ 0.74 Six Months Ended Condensed Consolidated Statement of Cash Flows: June 30, 2016 (In thousands) As Reported Impact of Adoption As Adjusted CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 20,108 $ 1,678 $ 21,786 Deferred income taxes 214 11 225 Accounts receivable (6,385 ) 133 (6,252 ) Prepaid expenses and other assets (639 ) (35 ) (674 ) Deferred income on sales to distributors $ 1,787 $ (1,787 ) $ — 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 (ASU 2016-09). 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 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. The Company adopted the new standards in the first quarter of 2017, effective on January 1, 2017. Upon adoption, the Company recognized a windfall tax benefit of $7.5 million , as a cumulative effect adjustment to opening retained earnings, together with a corresponding increase in deferred tax assets. Recent Accounting Pronouncements 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 on its condensed consolidated financial statements. |
COMPONENTS OF THE COMPANY'S CON
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS | 6 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Disclosures | COMPONENTS OF THE COMPANY’S CONDENSED CONSOLIDATED BALANCE SHEETS: Accounts Receivable (In thousands) June 30, December 31, Accounts receivable trade $ 64,621 $ 46,849 Allowances for ship and debit (44,218 ) (38,075 ) Allowances for stock rotation and rebate (1,101 ) (1,721 ) Allowances for doubtful accounts (605 ) (525 ) Total $ 18,697 $ 6,528 Inventories (In thousands) June 30, December 31, Raw materials $ 12,215 $ 14,610 Work-in-process 16,442 15,194 Finished goods 23,775 22,760 Total $ 52,432 $ 52,564 Prepaid Expenses and Other Current Assets (In thousands) June 30, December 31, Prepaid legal fees $ 3,698 $ 212 Prepaid income tax 464 2,431 Prepaid maintenance agreements 1,443 1,399 Interest receivable 1,200 743 Advance to suppliers 6,072 69 Other 4,025 3,861 Total $ 16,902 $ 8,715 Intangible Assets June 30, 2017 December 31, 2016 (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 Developed technology 33,270 (17,333 ) 15,937 33,270 (15,455 ) 17,815 Customer relationships 20,030 (13,594 ) 6,436 20,030 (12,474 ) 7,556 In-place leases 660 (660 ) — 660 (480 ) 180 Total intangible assets $ 59,911 $ (31,587 ) $ 28,324 $ 59,911 $ (28,409 ) $ 31,502 The estimated future amortization expense related to finite-lived intangible assets at June 30, 2017 , is as follows: Fiscal Year Estimated Amortization (in thousands) 2017 (remaining 6 months) $ 2,906 2018 5,152 2019 4,753 2020 3,528 2021 2,662 Thereafter 3,372 Total (1) $ 22,373 _______________ (1) The total above excludes $4.7 million of in-process research and development that will be amortized, upon completion of development, over the estimated useful life of the technology. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the three and six months ended June 30, 2017 and 2016 , were as follows: Unrealized Gains and Losses on Marketable Securities Defined Benefit Pension Items Foreign Currency Items Total Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, June 30, (In thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Beginning balance $ (137 ) $ 116 $ (1,887 ) $ (1,544 ) $ (490 ) $ (224 ) $ (2,514 ) $ (1,652 ) Other comprehensive income (loss) before reclassifications 15 48 — — 31 37 46 85 Amounts reclassified from accumulated other comprehensive income (loss) — — 49 (1 ) 40 (1 ) — — 49 40 Net-current period other comprehensive income (loss) 15 48 49 40 31 37 95 125 Ending balance $ (122 ) $ 164 $ (1,838 ) $ (1,504 ) $ (459 ) $ (187 ) $ (2,419 ) $ (1,527 ) _______________ (1) This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the three months ended June 30, 2017 and 2016 . Unrealized Gains and Losses on Marketable Securities Defined Benefit Pension Items Foreign Currency Items Total Six Months Ended Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, June 30, (In thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Beginning balance $ (220 ) $ (97 ) $ (1,936 ) $ (1,584 ) $ (554 ) $ (170 ) $ (2,710 ) $ (1,851 ) Other comprehensive income (loss) before reclassifications 98 261 — — 95 (17 ) 193 244 Amounts reclassified from accumulated other comprehensive income (loss) — — 98 (1 ) 80 (1 ) — — 98 80 Net-current period other comprehensive income (loss) 98 261 98 80 95 (17 ) 291 324 Ending balance $ (122 ) $ 164 $ (1,838 ) $ (1,504 ) $ (459 ) $ (187 ) $ (2,419 ) $ (1,527 ) _______________ (1) This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the six months ended June 30, 2017 and 2016 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS: The FASB established a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices for identical assets in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company's cash equivalents and short-term marketable securities are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The fair-value hierarchy of the Company's cash equivalents and marketable securities at June 30, 2017 , and December 31, 2016 , was as follows: Fair Value Measurement at June 30, 2017 (In thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Corporate securities $ 193,901 $ — $ 193,901 Commercial paper 23,654 — 23,654 Government securities 9,366 — 9,366 Money market funds 133 133 — Total $ 227,054 $ 133 $ 226,921 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) Corporate securities $ 132,141 $ — $ 132,141 Commercial paper 58,031 — 58,031 Money market funds 1,916 1,916 — Total $ 192,088 $ 1,916 $ 190,172 The Company did not transfer any investments between Level 1 and Level 2 of the fair-value hierarchy in the six months ended June 30, 2017 , and the twelve months ended December 31, 2016 . |
MARKETABLE SECURITITES
MARKETABLE SECURITITES | 6 Months Ended |
Jun. 30, 2017 | |
Marketable Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | MARKETABLE SECURITIES: Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at June 30, 2017 , were as follows: Amortized Cost Gross Unrealized Estimated Fair Market Value (In thousands) Gains Losses Investments due in 3 months or less: Commercial paper $ 18,079 $ — $ — $ 18,079 Corporate securities 24,463 — (5 ) 24,458 Total 42,542 — (5 ) 42,537 Investments due in 4-12 months: Corporate securities 110,313 10 (88 ) 110,235 Total 110,313 10 (88 ) 110,235 Investments due in 12 months or greater: Corporate securities 59,241 19 (52 ) 59,208 Government securities 9,372 — (6 ) 9,366 Total 68,613 19 (58 ) 68,574 Total marketable securities $ 221,468 $ 29 $ (151 ) $ 221,346 Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2016 , were as follows: Amortized Cost Gross Unrealized Estimated Fair Market Value (In thousands) Gains Losses Investments due in 3 months or less: 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 in 12 months or greater: Corporate securities 63,305 21 (180 ) 63,146 Total 63,305 21 (180 ) 63,146 Total marketable securities $ 188,543 $ 38 $ (258 ) $ 188,323 As of June 30, 2017 , and December 31, 2016 , the Company evaluated the nature of the investments with a loss position, which were primarily high-quality corporate and government securities, and determined the unrealized losses were not other-than-temporary. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK PLANS AND SHARE-BASED COMPENSATION | STOCK-BASED COMPENSATION: The following table summarizes the stock-based compensation expense for the three and six months ended June 30, 2017 , and June 30, 2016 : Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2017 2016 2017 2016 Cost of revenues $ 351 $ 293 $ 494 $ 383 Research and development 2,351 1,940 3,985 3,409 Sales and marketing 1,189 899 2,286 1,926 General and administrative 2,436 1,880 4,531 3,710 Total stock-based compensation expense $ 6,327 $ 5,012 $ 11,296 $ 9,428 Stock-based compensation expense in the three months ended June 30, 2017 was $6.3 million (comprising approximately $2.3 million related to performance-based (PSU) awards and long-term performance-based (PRSU) awards, $3.7 million related to restricted stock unit (RSU) awards and $0.3 million related to the Company’s employee stock purchase plan). In the six months ended June 30, 2017 , stock-based compensation expense was $11.3 million (comprising approximately $3.5 million related to PSUs and PRSUs, $7.2 million related to RSUs and $0.6 million related to the Company’s employee stock purchase plan). Stock-based compensation expense in the three months ended June 30, 2016 was $5.0 million (comprising approximately $0.1 million related to stock options, $1.6 million related to PSUs and PRSUs, $3.0 million related to RSUs and $0.3 million related to the Company’s employee stock purchase plan). In the six months ended June 30, 2016 , stock-based compensation expense was $9.4 million (comprising approximately $0.2 million related to stock options, $2.3 million related to PSUs and PRSUs, $6.3 million related to RSUs and $0.6 million related to the Company’s employee stock purchase plan). Stock Options A summary of stock options outstanding as of June 30, 2017 , and activity during the six months then ended, is presented below: Shares (in thousands) Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 697 $ 28.62 Granted — — Exercised (84 ) $ 31.52 Forfeited or expired — — Outstanding at June 30, 2017 613 $ 28.22 2.34 $ 27,417 Vested and exercisable at June 30, 2017 613 2.34 $ 27,417 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 income and strategic goals. 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. In January 2017 , it was determined that approximately 99,000 shares of the PSUs granted in 2016 , vested in aggregate and were released to the Company’s employees and executives in the first quarter of 2017 . A summary of PSUs outstanding as of June 30, 2017 , and activity during the six months then ended, is presented below: Shares (in thousands) Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 99 $ 46.25 Granted 88 $ 63.99 Vested (99 ) $ 46.25 Forfeited — — Outstanding at June 30, 2017 88 $ 63.99 0.50 $ 6,382 Outstanding and expected to vest at June 30, 2017 80 0.50 $ 5,807 PRSU Awards The Company's PRSU program provides for the issuance of PRSUs which will vest based on the Company's performance measured against the PRSU program's established revenue targets. PRSUs are 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 2015, 2016 and 2017 were based on the Company’s annual revenue growth over the respective three-year performance period. Expense associated with these awards, net of estimated forfeitures, is recorded throughout the year depending on the number of shares expected to vest based on progress toward the performance target. If the performance conditions are not achieved, no compensation cost is recognized and any previously recognized compensation is reversed. A summary of PRSUs outstanding as of June 30, 2017 , and activity during the six months then ended, is presented below: Shares (in thousands) Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 150 $ 47.65 Granted 71 $ 63.00 Vested — — Forfeited (7 ) $ 47.89 Outstanding at June 30, 2017 214 $ 52.75 1.50 $ 15,615 Outstanding and expected to vest at June 30, 2017 186 1.69 $ 13,543 RSU Awards A summary of RSUs outstanding as of June 30, 2017 , and activity during the six months then ended, is presented below: Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 718 $ 47.54 Granted 541 $ 60.46 Vested (266 ) $ 46.16 Forfeited (29 ) $ 49.02 Outstanding at June 30, 2017 964 $ 55.12 2.44 $ 70,284 Outstanding and expected to vest at June 30, 2017 854 2.26 $ 62,277 |
SIGNIFICANT CUSTOMERS AND INTER
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES | SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES: Segment Reporting The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of integrated circuits and related components for use primarily in the high-voltage power-conversion market. The Company’s chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. Customer Concentration The Company's top ten customers accounted for approximately 57% of net revenues in each of the three and six months ended June 30, 2017 , and approximately 62% of net revenues in each of the respective corresponding periods of 2016 . 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 original equipment manufacturers (OEMs) and merchant power supply manufacturers. Sales to distributors for the three and six months ended June 30, 2017 were $85.5 million and $166.1 million , respectively, and $73.0 million and $140.3 million , respectively, for the corresponding periods of 2016 . Direct sales to OEMs and power-supply manufacturers accounted for the remainder. In the three and six months ended June 30, 2017 , one customer, a distributor of the Company's products, accounted for more than 10% of the Company’s net revenues. In the three and six months ended June 30, 2016 , two customers, also distributors, accounted for more than 10% of the Company’s net revenues. The following table discloses these customers’ percentage of revenues for the respective periods: Three Months Ended Six Months Ended June 30, June 30, Customer 2017 2016 2017 2016 Avnet 16 % 19 % 17 % 21 % Powertech Distribution Ltd. * 12 % * 12 % _______________ * Total customer percentage of revenues was less than 10%. No other customers accounted for 10% or more of the Company’s net revenues in the periods presented. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. The Company does not have any off-balance-sheet credit exposure related to its customers. As of June 30, 2017 , and December 31, 2016 , 69% and 70% , respectively, of accounts receivable were concentrated with the Company’s top 10 customers. The following customers represented 10% or more of accounts receivable: Customer June 30, December 31, Avnet 20 % 25 % ATM Electronic Corporation * 13 % _______________ * Total customer percentage of accounts receivable was less than 10%. Geographic Net Revenues The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. Geographic net revenues, based on “bill to” customer locations, for the three and six months ended June 30, 2017 , and June 30, 2016 , were as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2017 2016 2017 2016 United States of America $ 4,474 $ 3,611 $ 8,303 $ 7,219 Hong Kong/China 56,547 49,355 111,392 92,697 Taiwan 10,762 14,021 23,796 24,420 Korea 9,678 9,887 19,184 19,560 Western Europe (excluding Germany) 12,751 9,839 24,722 20,550 Japan 5,837 5,535 10,485 10,343 Germany 2,915 1,751 5,711 3,850 Other 4,599 3,572 8,658 6,968 Total net revenues $ 107,563 $ 97,571 $ 212,251 $ 185,607 |
COMMON STOCK REPURCHASES AND CA
COMMON STOCK REPURCHASES AND CASH DIVIDENDS | 6 Months Ended |
Jun. 30, 2017 | |
Common Stock Repurchases and Cash Dividends [Abstract] | |
Common Stock Repurchase and Cash Dividends | COMMON STOCK REPURCHASES AND CASH DIVIDENDS: Common Stock Repurchases The Company did not repurchase any shares of its common stock in the six months ended June 30, 2017 . As of June 30, 2017 , the Company had approximately $23.6 million remaining under its repurchase program, which has no expiration date. In July 2017, the Company’s board of directors authorized the use of an additional $30.0 million for the repurchase of the Company’s common stock, with repurchases to be executed according to pre-defined price/volume guidelines. Authorization of future repurchase programs is at the discretion of the board of directors and will depend on the Company’s financial condition, results of operations, capital requirements, business conditions and other factors. Cash Dividends In January 2017 , the Company’s board of directors declared four quarterly cash dividends in the amount of $0.14 per share to be paid to stockholders of record at the end of each quarter in 2017. For the three and six months ended June 30, 2017 , and June 30, 2016 , cash dividends declared and paid were as follows: Three Months Ended Six Months Ended (In thousands, except per share amounts) June 30, June 30, June 30, June 30, Dividends declared and paid $ 4,162 $ 3,754 $ 8,299 $ 7,483 Dividends declared per common share $ 0.14 $ 0.13 $ 0.28 $ 0.26 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income by the weighted-average shares of common stock and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares included in this calculation consist of dilutive shares issuable upon the assumed exercise of outstanding common stock options, the assumed vesting of outstanding restricted stock units, 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: Three Months Ended Six Months Ended June 30, June 30, (In thousands, except per share amounts) 2017 2016 2017 2016 Basic earnings per share: Net income $ 13,902 $ 11,407 $ 28,001 $ 21,786 Weighted-average common shares 29,720 28,850 29,589 28,765 Basic earnings per share $ 0.47 $ 0.40 $ 0.95 $ 0.76 Diluted earnings per share: (1) Net income $ 13,902 $ 11,407 $ 28,001 $ 21,786 Weighted-average common shares 29,720 28,850 29,589 28,765 Effect of dilutive awards: Employee stock plans 734 572 781 596 Diluted weighted-average common shares 30,454 29,422 30,370 29,361 Diluted earnings per share $ 0.46 $ 0.39 $ 0.92 $ 0.74 _______________ (1) The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2017 and 2016 calculations as the shares were not contingently issuable as of the end of the reporting periods. In the three and six months ended June 30, 2017 and 2016 , no outstanding stock awards were determined to be anti-dilutive and therefore excluded from the computation of diluted earnings per share. |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES: Income-tax expense includes a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for certain discrete items which are fully recognized in the period they occur. The Company's effective tax rates for the three and six months ended June 30, 2017 , were 5.2% and 0.3% , respectively. The difference between the statutory rate of 35% and the Company’s effective tax rates for the three and six months ended June 30, 2017 , was primarily due to the geographic distribution of the Company’s world-wide earnings in lower tax jurisdictions and federal research tax credits. Additionally, in the three and six months ended June 30, 2017 the rate was favorably impacted by the recognition of excess tax benefits of approximately $0.4 million and $1.4 million , respectively, related to share-based payments. Effective January 1, 2017, the Company adopted ASU 2016-09 , under which all excess tax benefits and tax deficiencies are recognized prospectively as income tax expense or benefit in the income statement. For additional details on the adoption of ASU 2016-09, refer to Note 2, Significant Accounting Policies and Recent Accounting Pronouncements , in these Notes to Unaudited Condensed Consolidated Financial Statements. The Company's effective tax rates for the three and six months ended June 30, 2016 , were 5.0% and 4.1% , respectively. The difference between the expected statutory rate of 35% and the Company's effective tax rates for the three and six months ended June 30, 2016 , was due primarily to the geographic distribution of the Company’s world-wide earnings in lower tax jurisdictions and federal research tax credits. As of June 30, 2017 , the Company maintained a valuation allowance on its California deferred tax assets, New Jersey deferred tax assets and capital losses for federal purposes, and a valuation allowance with respect to its deferred tax assets relating to tax credits in Canada. To ensure an additional source of U.S. cash, the Company plans to repatriate a portion of its current year offshore earnings to the U.S. for domestic operations. The Company has accordingly provided for the estimated federal and state income taxes on such portion of its current year offshore earnings. If circumstances change and it becomes apparent that some or all of the undistributed earnings of the Company’s offshore subsidiary will be remitted in the foreseeable future but income taxes have not been recognized, the Company will accrue income taxes attributable to such undistributed earnings. Determining the consolidated provision for income tax expense, income tax liabilities and deferred tax assets and liabilities involves judgment. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates, which involves estimating current tax exposures as well as making judgments regarding the recoverability of deferred tax assets in each jurisdiction. The estimates used could differ from actual results, which may have a significant impact on operating results in future periods. |
COMMITMENTS
COMMITMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS: Supplier Agreements Under the terms of the Company's wafer-supply agreements with Seiko Epson Corporation ("Epson"), and ROHM Lapis Semiconductor Co., Ltd. ("Lapis") the wafers purchased from these suppliers are priced in U.S. dollars; however, these agreements also allow for mutual sharing of the impact of the exchange rate fluctuation between Japanese yen and the U.S. dollar on future purchases. Each year, the Company's management and these two suppliers review and negotiate future pricing; the negotiated pricing is denominated in U.S. dollars but is subject to contractual exchange rate provisions. The fluctuation in the exchange rate is shared equally between the Company and each of these suppliers on future purchases. |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES | LEGAL PROCEEDINGS AND CONTINGENCIES: From time to time in the ordinary course of business, the Company becomes involved in lawsuits, or customers and distributors may make claims against the Company. In accordance with ASC 450-10, 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 challenged adverse findings on appeal; nevertheless, the Company estimated that even if the verdict on Fairchild’s patent had ultimately been upheld, the sales potentially impacted would have amounted 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 in a trial that is scheduled for June of 2018, as well as enhanced damages for Fairchild’s willful infringement. 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. In January 2017, Fairchild filed a further challenge to the verdict, but the Court rejected Fairchild’s motion and entered a final judgment of $146.5 million after factoring in pre-judgment interest. Fairchild’s appeal on the merits is under way, with briefing expected to be completed in the coming months and oral argument and a ruling to follow thereafter. 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 Company has filed another appeal to the Federal Circuit; briefing on the second appeal is now complete, with oral argument expected in the coming months and a ruling to follow thereafter. 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 withdrew 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 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 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. The PTO also instituted IPR proceedings in response to eight of ON’s eleven other petitions, denying institution in three cases; further proceedings and the Patent Trial and Appeal Board’s initial rulings on the ’079 patent are expected 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 filed a motion to transfer the case to California, which the Court granted, and the case has been assigned to a new judge in San Francisco following the transfer. Further proceedings and expert discovery are expected over the course of the coming months. 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 six 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 filed a motion to transfer the case to the Northern District of California, which the Court granted, and the case has been consolidated with the Company’s affirmative case against ON Semiconductor in the Northern District of California, as discussed below. 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. The court denied ON Semiconductor’s motion requesting that the case be transferred to Arizona and scheduled trial for December of 2019, with interim deadlines for hearing claim construction and dispositive motions. Further proceedings and discovery will take place over 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. On March 9, 2017, ON dismissed its Texas complaint and re-filed a substantially similar complaint in the District of Delaware. The Company filed a motion to dismiss and 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. |
INDEMNIFICATIONS
INDEMNIFICATIONS | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
INDEMNIFICATIONS | INDEMNIFICATIONS: The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (“DSA”). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company's products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (“Customer Indemnification”). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees' development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of June 30, 2017 . 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. |
SIGNIFICANT ACCOUNTING POLICI21
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNITNG PRONOUNCEMENTS Adjustments for New Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncement Adoption, Schedule of Prior Period Adjustments | The impact of adoption on the Company's previously reported condensed consolidated financial statements were as follows: Condensed Consolidated Balance Sheet: December 31, 2016 (In thousands) As Reported Impact of Adoption As Adjusted Accounts receivable, net $ 6,961 $ (433 ) $ 6,528 Prepaid expenses and other current assets 8,520 195 8,715 Deferred tax assets 12,032 (690 ) 11,342 Deferred income on sales to distributors 16,207 (16,207 ) — Other accrued liabilities 2,434 300 2,734 Retained earnings $ 317,912 $ 14,979 $ 332,891 Three Months Ended Six Months Ended Condensed Consolidated Statements of Income: June 30, 2016 June 30, 2016 (In thousands, except per share) As Reported Impact of Adoption As Adjusted As Reported Impact of Adoption As Adjusted Net revenues $ 97,169 $ 402 $ 97,571 $ 182,495 $ 3,112 $ 185,607 Cost of revenues 49,532 254 49,786 91,911 1,423 93,334 Provision for income taxes 598 6 604 928 11 939 Net income $ 11,265 $ 142 $ 11,407 $ 20,108 $ 1,678 $ 21,786 Earnings per share Basic $ 0.39 $ 0.01 $ 0.40 $ 0.70 $ 0.06 $ 0.76 Diluted $ 0.38 $ 0.01 $ 0.39 $ 0.68 $ 0.06 $ 0.74 Six Months Ended Condensed Consolidated Statement of Cash Flows: June 30, 2016 (In thousands) As Reported Impact of Adoption As Adjusted CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 20,108 $ 1,678 $ 21,786 Deferred income taxes 214 11 225 Accounts receivable (6,385 ) 133 (6,252 ) Prepaid expenses and other assets (639 ) (35 ) (674 ) Deferred income on sales to distributors $ 1,787 $ (1,787 ) $ — |
COMPONENTS OF THE COMPANY'S C22
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable | Accounts Receivable (In thousands) June 30, December 31, Accounts receivable trade $ 64,621 $ 46,849 Allowances for ship and debit (44,218 ) (38,075 ) Allowances for stock rotation and rebate (1,101 ) (1,721 ) Allowances for doubtful accounts (605 ) (525 ) Total $ 18,697 $ 6,528 |
Schedule of Inventory, Current | Inventories (In thousands) June 30, December 31, Raw materials $ 12,215 $ 14,610 Work-in-process 16,442 15,194 Finished goods 23,775 22,760 Total $ 52,432 $ 52,564 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets (In thousands) June 30, December 31, Prepaid legal fees $ 3,698 $ 212 Prepaid income tax 464 2,431 Prepaid maintenance agreements 1,443 1,399 Interest receivable 1,200 743 Advance to suppliers 6,072 69 Other 4,025 3,861 Total $ 16,902 $ 8,715 |
Schedule Of Intangible Assets | Intangible Assets June 30, 2017 December 31, 2016 (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 Developed technology 33,270 (17,333 ) 15,937 33,270 (15,455 ) 17,815 Customer relationships 20,030 (13,594 ) 6,436 20,030 (12,474 ) 7,556 In-place leases 660 (660 ) — 660 (480 ) 180 Total intangible assets $ 59,911 $ (31,587 ) $ 28,324 $ 59,911 $ (28,409 ) $ 31,502 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense related to finite-lived intangible assets at June 30, 2017 , is as follows: Fiscal Year Estimated Amortization (in thousands) 2017 (remaining 6 months) $ 2,906 2018 5,152 2019 4,753 2020 3,528 2021 2,662 Thereafter 3,372 Total (1) $ 22,373 _______________ (1) The total above excludes $4.7 million of in-process research and development that will be amortized, upon completion of development, over the estimated useful life of the technology. |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss for the three and six months ended June 30, 2017 and 2016 , were as follows: Unrealized Gains and Losses on Marketable Securities Defined Benefit Pension Items Foreign Currency Items Total Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, June 30, (In thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Beginning balance $ (137 ) $ 116 $ (1,887 ) $ (1,544 ) $ (490 ) $ (224 ) $ (2,514 ) $ (1,652 ) Other comprehensive income (loss) before reclassifications 15 48 — — 31 37 46 85 Amounts reclassified from accumulated other comprehensive income (loss) — — 49 (1 ) 40 (1 ) — — 49 40 Net-current period other comprehensive income (loss) 15 48 49 40 31 37 95 125 Ending balance $ (122 ) $ 164 $ (1,838 ) $ (1,504 ) $ (459 ) $ (187 ) $ (2,419 ) $ (1,527 ) _______________ (1) This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the three months ended June 30, 2017 and 2016 . Unrealized Gains and Losses on Marketable Securities Defined Benefit Pension Items Foreign Currency Items Total Six Months Ended Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, June 30, (In thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Beginning balance $ (220 ) $ (97 ) $ (1,936 ) $ (1,584 ) $ (554 ) $ (170 ) $ (2,710 ) $ (1,851 ) Other comprehensive income (loss) before reclassifications 98 261 — — 95 (17 ) 193 244 Amounts reclassified from accumulated other comprehensive income (loss) — — 98 (1 ) 80 (1 ) — — 98 80 Net-current period other comprehensive income (loss) 98 261 98 80 95 (17 ) 291 324 Ending balance $ (122 ) $ 164 $ (1,838 ) $ (1,504 ) $ (459 ) $ (187 ) $ (2,419 ) $ (1,527 ) _______________ (1) This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the six months ended June 30, 2017 and 2016 . |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value of marketable securities and investments | The fair-value hierarchy of the Company's cash equivalents and marketable securities at June 30, 2017 , and December 31, 2016 , was as follows: Fair Value Measurement at June 30, 2017 (In thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Corporate securities $ 193,901 $ — $ 193,901 Commercial paper 23,654 — 23,654 Government securities 9,366 — 9,366 Money market funds 133 133 — Total $ 227,054 $ 133 $ 226,921 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) Corporate securities $ 132,141 $ — $ 132,141 Commercial paper 58,031 — 58,031 Money market funds 1,916 1,916 — Total $ 192,088 $ 1,916 $ 190,172 |
MARKETABLE SECURITITES (Tables)
MARKETABLE SECURITITES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Marketable Securities [Abstract] | |
Available-for-sale Securities | Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at June 30, 2017 , were as follows: Amortized Cost Gross Unrealized Estimated Fair Market Value (In thousands) Gains Losses Investments due in 3 months or less: Commercial paper $ 18,079 $ — $ — $ 18,079 Corporate securities 24,463 — (5 ) 24,458 Total 42,542 — (5 ) 42,537 Investments due in 4-12 months: Corporate securities 110,313 10 (88 ) 110,235 Total 110,313 10 (88 ) 110,235 Investments due in 12 months or greater: Corporate securities 59,241 19 (52 ) 59,208 Government securities 9,372 — (6 ) 9,366 Total 68,613 19 (58 ) 68,574 Total marketable securities $ 221,468 $ 29 $ (151 ) $ 221,346 Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2016 , were as follows: Amortized Cost Gross Unrealized Estimated Fair Market Value (In thousands) Gains Losses Investments due in 3 months or less: 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 in 12 months or greater: Corporate securities 63,305 21 (180 ) 63,146 Total 63,305 21 (180 ) 63,146 Total marketable securities $ 188,543 $ 38 $ (258 ) $ 188,323 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Expense | The following table summarizes the stock-based compensation expense for the three and six months ended June 30, 2017 , and June 30, 2016 : Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2017 2016 2017 2016 Cost of revenues $ 351 $ 293 $ 494 $ 383 Research and development 2,351 1,940 3,985 3,409 Sales and marketing 1,189 899 2,286 1,926 General and administrative 2,436 1,880 4,531 3,710 Total stock-based compensation expense $ 6,327 $ 5,012 $ 11,296 $ 9,428 |
Summary of Option Activity Under the Plans | A summary of stock options outstanding as of June 30, 2017 , and activity during the six months then ended, is presented below: Shares (in thousands) Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 697 $ 28.62 Granted — — Exercised (84 ) $ 31.52 Forfeited or expired — — Outstanding at June 30, 2017 613 $ 28.22 2.34 $ 27,417 Vested and exercisable at June 30, 2017 613 2.34 $ 27,417 |
Performance Based Awards (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of PSUs outstanding as of June 30, 2017 , and activity during the six months then ended, is presented below: Shares (in thousands) Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 99 $ 46.25 Granted 88 $ 63.99 Vested (99 ) $ 46.25 Forfeited — — Outstanding at June 30, 2017 88 $ 63.99 0.50 $ 6,382 Outstanding and expected to vest at June 30, 2017 80 0.50 $ 5,807 |
Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of PRSUs outstanding as of June 30, 2017 , and activity during the six months then ended, is presented below: Shares (in thousands) Weighted-Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 150 $ 47.65 Granted 71 $ 63.00 Vested — — Forfeited (7 ) $ 47.89 Outstanding at June 30, 2017 214 $ 52.75 1.50 $ 15,615 Outstanding and expected to vest at June 30, 2017 186 1.69 $ 13,543 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSUs outstanding as of June 30, 2017 , and activity during the six months then ended, is presented below: Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2017 718 $ 47.54 Granted 541 $ 60.46 Vested (266 ) $ 46.16 Forfeited (29 ) $ 49.02 Outstanding at June 30, 2017 964 $ 55.12 2.44 $ 70,284 Outstanding and expected to vest at June 30, 2017 854 2.26 $ 62,277 |
SIGNIFICANT CUSTOMERS AND INT26
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Concentration Risk [Line Items] | |
Geographic Net Revenues | The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. Geographic net revenues, based on “bill to” customer locations, for the three and six months ended June 30, 2017 , and June 30, 2016 , were as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2017 2016 2017 2016 United States of America $ 4,474 $ 3,611 $ 8,303 $ 7,219 Hong Kong/China 56,547 49,355 111,392 92,697 Taiwan 10,762 14,021 23,796 24,420 Korea 9,678 9,887 19,184 19,560 Western Europe (excluding Germany) 12,751 9,839 24,722 20,550 Japan 5,837 5,535 10,485 10,343 Germany 2,915 1,751 5,711 3,850 Other 4,599 3,572 8,658 6,968 Total net revenues $ 107,563 $ 97,571 $ 212,251 $ 185,607 |
Sales Revenue, Goods, Net | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The following table discloses these customers’ percentage of revenues for the respective periods: Three Months Ended Six Months Ended June 30, June 30, Customer 2017 2016 2017 2016 Avnet 16 % 19 % 17 % 21 % Powertech Distribution Ltd. * 12 % * 12 % _______________ * Total customer percentage of revenues was less than 10%. |
Accounts Receivable | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The following customers represented 10% or more of accounts receivable: Customer June 30, December 31, Avnet 20 % 25 % ATM Electronic Corporation * 13 % _______________ * Total customer percentage of accounts receivable was less than 10%. |
COMMON STOCK REPURCHASES AND 27
COMMON STOCK REPURCHASES AND CASH DIVIDENDS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Common Stock Repurchases and Cash Dividends [Abstract] | |
Dividends Declared and Paid | For the three and six months ended June 30, 2017 , and June 30, 2016 , cash dividends declared and paid were as follows: Three Months Ended Six Months Ended (In thousands, except per share amounts) June 30, June 30, June 30, June 30, Dividends declared and paid $ 4,162 $ 3,754 $ 8,299 $ 7,483 Dividends declared per common share $ 0.14 $ 0.13 $ 0.28 $ 0.26 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share calculation | A summary of the earnings per share calculation is as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands, except per share amounts) 2017 2016 2017 2016 Basic earnings per share: Net income $ 13,902 $ 11,407 $ 28,001 $ 21,786 Weighted-average common shares 29,720 28,850 29,589 28,765 Basic earnings per share $ 0.47 $ 0.40 $ 0.95 $ 0.76 Diluted earnings per share: (1) Net income $ 13,902 $ 11,407 $ 28,001 $ 21,786 Weighted-average common shares 29,720 28,850 29,589 28,765 Effect of dilutive awards: Employee stock plans 734 572 781 596 Diluted weighted-average common shares 30,454 29,422 30,370 29,361 Diluted earnings per share $ 0.46 $ 0.39 $ 0.92 $ 0.74 _______________ (1) The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2017 and 2016 calculations as the shares were not contingently issuable as of the end of the reporting periods. |
SIGNIFICANT ACCOUNTING POLICI29
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNITNG PRONOUNCEMENTS Prior Period Balance Sheet Adjustments, Adoption of ASU 2014-09 (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Condensed Consolidated Balance Sheet Data | ||
Accounts receivable, net | $ 18,697 | $ 6,528 |
Prepaid expenses and other current assets | 16,902 | 8,715 |
Deferred tax assets | 19,328 | 11,342 |
Deferred income on sales to distributors | 0 | |
Other accrued liabilities | 3,858 | 2,734 |
Retained earnings | $ 360,134 | 332,891 |
As Reported | ||
Condensed Consolidated Balance Sheet Data | ||
Accounts receivable, net | 6,961 | |
Prepaid expenses and other current assets | 8,520 | |
Deferred tax assets | 12,032 | |
Deferred income on sales to distributors | 16,207 | |
Other accrued liabilities | 2,434 | |
Retained earnings | 317,912 | |
Adjustments for Accounting Standards Update 2014-09 | ||
Condensed Consolidated Balance Sheet Data | ||
Accounts receivable, net | (433) | |
Prepaid expenses and other current assets | 195 | |
Deferred tax assets | (690) | |
Deferred income on sales to distributors | (16,207) | |
Other accrued liabilities | 300 | |
Retained earnings | $ 14,979 |
SIGNIFICANT ACCOUNTING POLICI30
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNITNG PRONOUNCEMENTS Prior Period Income Statement Adjustments, Adoption of ASU 2014-09 (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Condensed Consolidated Income Statement Data | |||||
NET REVENUES | $ 107,563 | $ 97,571 | $ 212,251 | $ 185,607 | |
COST OF REVENUES | 54,116 | 49,786 | 108,328 | 93,334 | |
PROVISION FOR INCOME TAXES | 760 | 604 | 83 | 939 | |
NET INCOME | $ 13,902 | $ 11,407 | $ 28,001 | $ 21,786 | |
Basic (in dollars per share) | $ 0.47 | $ 0.40 | $ 0.95 | $ 0.76 | |
Diluted (in dollars per share) | [1] | $ 0.46 | $ 0.39 | $ 0.92 | $ 0.74 |
As Reported | |||||
Condensed Consolidated Income Statement Data | |||||
NET REVENUES | $ 97,169 | $ 182,495 | |||
COST OF REVENUES | 49,532 | 91,911 | |||
PROVISION FOR INCOME TAXES | 598 | 928 | |||
NET INCOME | $ 11,265 | $ 20,108 | |||
Basic (in dollars per share) | $ 0.39 | $ 0.70 | |||
Diluted (in dollars per share) | $ 0.38 | $ 0.68 | |||
Adjustments for Accounting Standards Update 2014-09 | |||||
Condensed Consolidated Income Statement Data | |||||
NET REVENUES | $ 402 | $ 3,112 | |||
COST OF REVENUES | 254 | 1,423 | |||
PROVISION FOR INCOME TAXES | 6 | 11 | |||
NET INCOME | $ 142 | $ 1,678 | |||
Basic (in dollars per share) | $ 0.01 | $ 0.06 | |||
Diluted (in dollars per share) | $ 0.01 | $ 0.06 | |||
[1] | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2017 and 2016 calculations as the shares were not contingently issuable as of the end of the reporting periods. |
SIGNIFICANT ACCOUNTING POLICI31
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNITNG PRONOUNCEMENTS Prior Period Cash Flows Adjustments, Adoption of ASU 2014-09 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidated Cash Flows Data | ||||
Net income | $ 13,902 | $ 11,407 | $ 28,001 | $ 21,786 |
Deferred income taxes | (648) | 225 | ||
Accounts receivable | (12,249) | (6,252) | ||
Prepaid expenses and other assets | $ (8,349) | (674) | ||
Deferred income on sales to distributors | 0 | |||
As Reported | ||||
Condensed Consolidated Cash Flows Data | ||||
Net income | 11,265 | 20,108 | ||
Deferred income taxes | 214 | |||
Accounts receivable | (6,385) | |||
Prepaid expenses and other assets | (639) | |||
Deferred income on sales to distributors | 1,787 | |||
Adjustments for Accounting Standards Update 2014-09 | ||||
Condensed Consolidated Cash Flows Data | ||||
Net income | $ 142 | 1,678 | ||
Deferred income taxes | 11 | |||
Accounts receivable | 133 | |||
Prepaid expenses and other assets | (35) | |||
Deferred income on sales to distributors | $ (1,787) |
SIGNIFICANT ACCOUNTING POLICI32
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNITNG PRONOUNCEMENTS Balance Sheet Adjustments, Adoption of ASU 2016-09 (Details) - Accounting Standards Update 2016-09 $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Retained Earnings | |
Schedule of Retained Earnings and Deferred Tax Asset Adjustments [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 7.5 |
Deferred Tax Asset | |
Schedule of Retained Earnings and Deferred Tax Asset Adjustments [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 7.5 |
COMPONENTS OF THE COMPANY'S C33
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable trade | $ 64,621 | $ 46,849 |
Allowances for ship and debit | (44,218) | (38,075) |
Allowances for stock rotation and rebate | (1,101) | (1,721) |
Allowances for doubtful accounts | (605) | (525) |
Total | $ 18,697 | $ 6,528 |
COMPONENTS OF THE COMPANY'S C34
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 12,215 | $ 14,610 |
Work-in-process | 16,442 | 15,194 |
Finished goods | 23,775 | 22,760 |
Total | $ 52,432 | $ 52,564 |
COMPONENTS OF THE COMPANY'S C35
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid legal fees | $ 3,698 | $ 212 |
Prepaid income tax | 464 | 2,431 |
Prepaid maintenance agreements | 1,443 | 1,399 |
Interest receivable | 1,200 | 743 |
Advance to suppliers | 6,072 | 69 |
Other | 4,025 | 3,861 |
Total | $ 16,902 | $ 8,715 |
COMPONENTS OF THE COMPANY'S C36
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Intangible Assets [Table] [Line Items] | |||
Intangible Assets, Gross | $ 59,911 | $ 59,911 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (31,587) | (28,409) | |
Total intangible assets | 28,324 | 31,502 | |
Finite-Lived Intangible Assets, Net | [1] | 22,373 | |
Developed technology | |||
Schedule of Intangible Assets [Table] [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 33,270 | 33,270 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (17,333) | (15,455) | |
Finite-Lived Intangible Assets, Net | 15,937 | 17,815 | |
Customer relationships | |||
Schedule of Intangible Assets [Table] [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 20,030 | 20,030 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (13,594) | (12,474) | |
Finite-Lived Intangible Assets, Net | 6,436 | 7,556 | |
In-place leases | |||
Schedule of Intangible Assets [Table] [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 660 | 660 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (660) | (480) | |
Finite-Lived Intangible Assets, Net | 0 | 180 | |
Domain name | |||
Schedule of Intangible Assets [Table] [Line Items] | |||
Indefinite-Lived Intangible Assets | 1,261 | 1,261 | |
In-process research and development | |||
Schedule of Intangible Assets [Table] [Line Items] | |||
Indefinite-Lived Intangible Assets | $ 4,690 | $ 4,690 | |
[1] | The total above excludes $4.7 million of in-process research and development that will be amortized, upon completion of development, over the estimated useful life of the technology. |
COMPONENTS OF THE COMPANY'S C37
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2017USD ($) | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2017 (remaining 6 months) | $ 2,906 | |
2,018 | 5,152 | |
2,019 | 4,753 | |
2,020 | 3,528 | |
2,021 | 2,662 | |
Thereafter | 3,372 | |
Total (1) | $ 22,373 | [1] |
[1] | The total above excludes $4.7 million of in-process research and development that will be amortized, upon completion of development, over the estimated useful life of the technology. |
COMPONENTS OF THE COMPANY'S C38
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | $ (2,514) | $ (1,652) | $ (2,710) | $ (1,851) | ||||
Other comprehensive income (loss) before reclassifications | 46 | 85 | 193 | 244 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 49 | 40 | 98 | 80 | ||||
Net-current period other comprehensive income (loss) | 95 | 125 | 291 | 324 | ||||
Ending balance | (2,419) | (1,527) | (2,419) | (1,527) | ||||
Unrealized Gains and Losses on Marketable Securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | (137) | 116 | (220) | (97) | ||||
Other comprehensive income (loss) before reclassifications | 15 | 48 | 98 | 261 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||
Net-current period other comprehensive income (loss) | 15 | 48 | 98 | 261 | ||||
Ending balance | (122) | 164 | (122) | 164 | ||||
Defined Benefit Pension Items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | (1,887) | (1,544) | (1,936) | (1,584) | ||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 49 | [1] | 40 | [1] | 98 | [2] | 80 | [2] |
Net-current period other comprehensive income (loss) | 49 | 40 | 98 | 80 | ||||
Ending balance | (1,838) | (1,504) | (1,838) | (1,504) | ||||
Foreign Currency Items | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | (490) | (224) | (554) | (170) | ||||
Other comprehensive income (loss) before reclassifications | 31 | 37 | 95 | (17) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||
Net-current period other comprehensive income (loss) | 31 | 37 | 95 | (17) | ||||
Ending balance | $ (459) | $ (187) | $ (459) | $ (187) | ||||
[1] | This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the three months ended June 30, 2017 and 2016. | |||||||
[2] | This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the six months ended June 30, 2017 and 2016. |
FAIR VALUE MEASUREMENTS Fair Va
FAIR VALUE MEASUREMENTS Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | $ 227,054 | $ 192,088 |
Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 193,901 | 132,141 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 23,654 | 58,031 |
Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 9,366 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 133 | 1,916 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | 133 | 1,916 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
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) | Commercial paper | ||
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) | Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 133 | 1,916 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | 226,921 | 190,172 |
Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 193,901 | 132,141 |
Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 23,654 | 58,031 |
Significant Other Observable Inputs (Level 2) | Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 9,366 | |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | $ 0 | $ 0 |
MARKETABLE SECURITITES Marketab
MARKETABLE SECURITITES Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 221,468 | $ 188,543 |
Gross Unrealized Gain | 29 | 38 |
Gross Unrealized Losses | (151) | (258) |
Estimated Fair Market Value | 221,346 | 188,323 |
Investments due in 3 months or less: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 42,542 | 46,338 |
Gross Unrealized Gain | 0 | 2 |
Gross Unrealized Losses | (5) | (2) |
Estimated Fair Market Value | 42,537 | 46,338 |
Investments due in 4-12 months: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 110,313 | 78,900 |
Gross Unrealized Gain | 10 | 15 |
Gross Unrealized Losses | (88) | (76) |
Estimated Fair Market Value | 110,235 | 78,839 |
Investments due in 12 months or greater: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 68,613 | 63,305 |
Gross Unrealized Gain | 19 | 21 |
Gross Unrealized Losses | (58) | (180) |
Estimated Fair Market Value | 68,574 | 63,146 |
Corporate securities | Investments due in 3 months or less: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 24,463 | 9,342 |
Gross Unrealized Gain | 0 | 2 |
Gross Unrealized Losses | (5) | (2) |
Estimated Fair Market Value | 24,458 | 9,342 |
Corporate securities | Investments due in 4-12 months: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 110,313 | 59,714 |
Gross Unrealized Gain | 10 | 15 |
Gross Unrealized Losses | (88) | (76) |
Estimated Fair Market Value | 110,235 | 59,653 |
Corporate securities | Investments due in 12 months or greater: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 59,241 | 63,305 |
Gross Unrealized Gain | 19 | 21 |
Gross Unrealized Losses | (52) | (180) |
Estimated Fair Market Value | 59,208 | 63,146 |
Commercial paper | Investments due in 3 months or less: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,079 | 36,996 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 18,079 | 36,996 |
Commercial paper | Investments due in 4-12 months: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,186 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | $ 19,186 | |
Government securities | Investments due in 12 months or greater: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,372 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Losses | (6) | |
Estimated Fair Market Value | $ 9,366 |
STOCK-BASED COMPENSATION Stock-
STOCK-BASED COMPENSATION Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | $ 6,327 | $ 5,012 | $ 11,296 | $ 9,428 |
Stock Options | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 100 | 200 | ||
Performance Based Awards and Long Term Performance-based Units | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 2,300 | 1,600 | 3,500 | 2,300 |
Restricted Stock Units (RSUs) | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 3,700 | 3,000 | 7,200 | 6,300 |
Employee Stock Purchase Plan | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 300 | 300 | 600 | 600 |
Cost of revenues | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 351 | 293 | 494 | 383 |
Research and development | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 2,351 | 1,940 | 3,985 | 3,409 |
Sales and marketing | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 1,189 | 899 | 2,286 | 1,926 |
General and administrative | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | $ 2,436 | $ 1,880 | $ 4,531 | $ 3,710 |
STOCK-BASED COMPENSATION Option
STOCK-BASED COMPENSATION Option Activity (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Option activity under the Plans | |
Outstanding at January 1, 2017 | 697 |
Granted | 0 |
Exercised | (84) |
Forfeited or expired | 0 |
Outstanding at June 30, 2017 | 613 |
Vested and exercisable at June 30, 2017 | 613 |
Weighted- Average Exercise Price (in dollars per share) | |
Outstanding at January 1, 2017 | $ / shares | $ 28.62 |
Granted | $ / shares | 0 |
Exercised | $ / shares | 31.52 |
Forfeited or expired | $ / shares | 0 |
Outstanding at June 30, 2017 | $ / shares | $ 28.22 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding, weighted-average remaining contractual term at period end | 2 years 4 months 2 days |
Vested and exercisable, weighted-average remaining contractual term at period end | 2 years 4 months 2 days |
Aggregate Intrinsic Value [Abstract] | |
Outstanding, aggregate intrinsic value at period end | $ | $ 27,417 |
Exercisable, aggregate intrinsic value, at period end | $ | $ 27,417 |
STOCK-BASED COMPENSATION Perfor
STOCK-BASED COMPENSATION Performance-based Awards and Restricted Stock Units (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Performance Based Awards (PSUs) | |
Shares | |
Outstanding at January 1, 2017 | 99 |
Granted | 88 |
Vested | (99) |
Forfeited | 0 |
Outstanding at June 30, 2017 | 88 |
Outstanding and expected to vest at June 30, 2017 | 80 |
Weighted- Average Grant Date Fair Value Per Share (in dollars per share) | |
Outstanding at January 1, 2017 | $ / shares | $ 46.25 |
Granted | $ / shares | 63.99 |
Vested | $ / shares | 46.25 |
Forfeited | $ / shares | 0 |
Outstanding at June 30, 2017 | $ / shares | $ 63.99 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding at June 30, 2017 | 6 months |
Outstanding and expected to vest at June 30, 2017 | 6 months |
Aggregate Intrinsic Value (in thousands) | |
Outstanding at June 30, 2017 | $ | $ 6,382 |
Outstanding and expected to vest at June 30, 2017 | $ | $ 5,807 |
Long-Term Performance-Based Awards (PRSUs) | |
Shares | |
Outstanding at January 1, 2017 | 150 |
Granted | 71 |
Vested | 0 |
Forfeited | (7) |
Outstanding at June 30, 2017 | 214 |
Outstanding and expected to vest at June 30, 2017 | 186 |
Weighted- Average Grant Date Fair Value Per Share (in dollars per share) | |
Outstanding at January 1, 2017 | $ / shares | $ 47.65 |
Granted | $ / shares | 63 |
Vested | $ / shares | 0 |
Forfeited | $ / shares | 47.89 |
Outstanding at June 30, 2017 | $ / shares | $ 52.75 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding at June 30, 2017 | 1 year 6 months |
Outstanding and expected to vest at June 30, 2017 | 1 year 8 months 10 days |
Aggregate Intrinsic Value (in thousands) | |
Outstanding at June 30, 2017 | $ | $ 15,615 |
Outstanding and expected to vest at June 30, 2017 | $ | $ 13,543 |
Restricted Stock Units (RSUs) | |
Shares | |
Outstanding at January 1, 2017 | 718 |
Granted | 541 |
Vested | (266) |
Forfeited | (29) |
Outstanding at June 30, 2017 | 964 |
Outstanding and expected to vest at June 30, 2017 | 854 |
Weighted- Average Grant Date Fair Value Per Share (in dollars per share) | |
Outstanding at January 1, 2017 | $ / shares | $ 47.54 |
Granted | $ / shares | 60.46 |
Vested | $ / shares | 46.16 |
Forfeited | $ / shares | 49.02 |
Outstanding at June 30, 2017 | $ / shares | $ 55.12 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding at June 30, 2017 | 2 years 5 months 10 days |
Outstanding and expected to vest at June 30, 2017 | 2 years 3 months 5 days |
Aggregate Intrinsic Value (in thousands) | |
Outstanding at June 30, 2017 | $ | $ 70,284 |
Outstanding and expected to vest at June 30, 2017 | $ | $ 62,277 |
Minimum [Member] | Performance Based Awards (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Performance Based Awards Shares Released As Percentage Of Target Number | 0.00% |
Minimum [Member] | Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Performance Based Awards Shares Released As Percentage Of Target Number | 0.00% |
Maximum [Member] | Performance Based Awards (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Performance Based Awards Shares Released As Percentage Of Target Number | 200.00% |
Maximum [Member] | Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Performance Based Awards Shares Released As Percentage Of Target Number | 200.00% |
SIGNIFICANT CUSTOMERS AND INT44
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES Customer and Credit Risk Concentration (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)Customer | Jun. 30, 2016USD ($)Customer | Jun. 30, 2017USD ($)Customer | Jun. 30, 2016USD ($)Customer | Dec. 31, 2016Customer | |
Concentration Risk [Line Items] | |||||
NET REVENUES | $ | $ 107,563 | $ 97,571 | $ 212,251 | $ 185,607 | |
Distributors | |||||
Concentration Risk [Line Items] | |||||
NET REVENUES | $ | $ 85,500 | $ 73,000 | $ 166,100 | $ 140,300 | |
Sales Revenue, Goods, Net | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | 1 | 2 | 1 | 2 | |
Concentration risk percentage benchmark | 10.00% | 10.00% | 10.00% | 10.00% | |
Sales Revenue, Goods, Net | Customer Concentration Risk | Avnet | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of total net revenues | 16.00% | 19.00% | 17.00% | 21.00% | |
Sales Revenue, Goods, Net | Customer Concentration Risk | Powertech Distribution Ltd. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of total net revenues | 12.00% | 12.00% | |||
Sales Revenue, Goods, Net | Customer Concentration Risk | Ten Customers | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | 10 | 10 | 10 | 10 | |
Concentration risk, percentage of total net revenues | 57.00% | 62.00% | 57.00% | 62.00% | |
Accounts Receivable | Credit Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | 10 | 10 | |||
Concentration risk percentage benchmark for accounts receivable (more than) | 10.00% | 10.00% | 10.00% | ||
Accounts Receivable | Credit Concentration Risk | Avnet | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage benchmark | 20.00% | 25.00% | |||
Accounts Receivable | Credit Concentration Risk | Ten Customers | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage benchmark | 69.00% | 70.00% | |||
Accounts Receivable | Credit Concentration Risk | ATM Electronic Corporation | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage benchmark | 13.00% |
SIGNIFICANT CUSTOMERS AND INT45
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES Geographic Net Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue by Geography | ||||
Total Net Revenues | $ 107,563 | $ 97,571 | $ 212,251 | $ 185,607 |
United States of America | ||||
Revenue by Geography | ||||
Total Net Revenues | 4,474 | 3,611 | 8,303 | 7,219 |
Hong Kong/China | ||||
Revenue by Geography | ||||
Total Net Revenues | 56,547 | 49,355 | 111,392 | 92,697 |
Taiwan | ||||
Revenue by Geography | ||||
Total Net Revenues | 10,762 | 14,021 | 23,796 | 24,420 |
Korea | ||||
Revenue by Geography | ||||
Total Net Revenues | 9,678 | 9,887 | 19,184 | 19,560 |
Western Europe (excluding Germany) | ||||
Revenue by Geography | ||||
Total Net Revenues | 12,751 | 9,839 | 24,722 | 20,550 |
Japan | ||||
Revenue by Geography | ||||
Total Net Revenues | 5,837 | 5,535 | 10,485 | 10,343 |
Germany | ||||
Revenue by Geography | ||||
Total Net Revenues | 2,915 | 1,751 | 5,711 | 3,850 |
Other | ||||
Revenue by Geography | ||||
Total Net Revenues | $ 4,599 | $ 3,572 | $ 8,658 | $ 6,968 |
COMMON STOCK REPURCHASES AND 46
COMMON STOCK REPURCHASES AND CASH DIVIDENDS Common Stock Repurchases (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jul. 25, 2017 | |
Class of Stock [Line Items] | |||
Payments for Repurchase of Common Stock | $ 0 | $ 6,435 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 23,600 | ||
Subsequent Event [Member] | Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 30,000 |
COMMON STOCK REPURCHASES AND 47
COMMON STOCK REPURCHASES AND CASH DIVIDENDS Cash Dividends (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2017Quarter$ / shares | Jan. 31, 2016$ / shares | Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | |
Dividends Declared and Paid [Line Items] | ||||||
Common Stock, Dividends, Number of Quarterly Distributions Declared, Current Fiscal Year | Quarter | 4 | |||||
Common Stock, Dividends, Per Share, Declared, Current Fiscal Year, First Quarter | $ 0.14 | |||||
Common Stock, Dividends Per Share Declared, Current Fiscal Year, Second Quarter | $ 0.14 | |||||
Common Stock, Dividends Per Share Declared, Current Fiscal Year, Third Quarter | 0.14 | |||||
Common Stock, Dividends Per Share Declared, Current Fiscal Year, Fourth Quarter | $ 0.14 | |||||
Payments of Dividends | $ | $ 4,162 | $ 3,754 | $ 8,299 | $ 7,483 | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.14 | $ 0.13 | $ 0.28 | $ 0.26 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Basic earnings per share: | |||||
NET INCOME | $ 13,902 | $ 11,407 | $ 28,001 | $ 21,786 | |
Weighted-average common shares | 29,720,000 | 28,850,000 | 29,589,000 | 28,765,000 | |
Basic earnings per share | $ 0.47 | $ 0.40 | $ 0.95 | $ 0.76 | |
Diluted earnings per share: | |||||
NET INCOME | $ 13,902 | $ 11,407 | $ 28,001 | $ 21,786 | |
Weighted-average common shares | 29,720,000 | 28,850,000 | 29,589,000 | 28,765,000 | |
Effect of dilutive awards: | |||||
Employee stock plans | 734,000 | 572,000 | 781,000 | 596,000 | |
Diluted weighted-average common shares | 30,454,000 | 29,422,000 | 30,370,000 | 29,361,000 | |
Diluted earnings per share | [1] | $ 0.46 | $ 0.39 | $ 0.92 | $ 0.74 |
Stock awards excluded in the computation of diluted earnings per share | 0 | 0 | 0 | 0 | |
[1] | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2017 and 2016 calculations as the shares were not contingently issuable as of the end of the reporting periods. |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 5.20% | 5.00% | 0.30% | 4.10% |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Excess Tax Benefit from Share-based Payments | $ 0.4 | $ 1.4 |
LEGAL PROCEEDINGS AND CONTING50
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, 2009patentspatent | Dec. 22, 2008 | Dec. 12, 2008USD ($) | Nov. 07, 2008patents | May 23, 2008patents | Oct. 10, 2006USD ($) | Oct. 20, 2004patents | Jan. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015patent | Feb. 28, 2014USD ($) | Dec. 31, 2012patents | Apr. 30, 2012patents | May 31, 2010patents | Feb. 28, 2010USD ($)patents | Jun. 30, 2017patents |
Patent Inter Partes Review Petition Request One | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of Patents in Inter Partes Review Petition | 11 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim One | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Period for petition for further stay of permanent injunction | 90 days | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Two | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 3 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Two Counterclaim | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | ||||||||||||||||||||||||
Number of patents remaining in infringement claims | 2 | 2 | |||||||||||||||||||||||
Potential impact on revenue by patent litigation, less than (as a percentage) | 0.50% | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 3 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Three Counterclaim | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Four | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Damages sought after the Company | $ | $ 19 | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 4 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Five | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 4 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Six | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 2 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Seven | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 1 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Eight | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 6 | ||||||||||||||||||||||||
Number of Patents Seeking Declaration of Non-Infringement in Filed Infringement Claims | patent | 3 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Nine | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | patent | 6 | ||||||||||||||||||||||||
Pending Litigation | Patent Infringement Claim Ten | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 6 | ||||||||||||||||||||||||
Counterclaims | Patent Infringement Claim Three Counterclaim | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 2 | 1 | |||||||||||||||||||||||
Counterclaims | Patent Infringement Claim Five | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Loss Contingency, Damages Awarded, Value | $ | $ 2.4 | ||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 5 | ||||||||||||||||||||||||
Judicial Ruling | Patent Infringement Claim Two | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 2 | ||||||||||||||||||||||||
Judicial Ruling | Patent Infringement Claim Two Counterclaim | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of Patents Not Infringed | 1 | ||||||||||||||||||||||||
Judicial Ruling | Patent Infringement Claim Four | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of Patents Not Infringed | 4 | ||||||||||||||||||||||||
Judicial Ruling | Patent Infringement Claim Five | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | patent | 1 | ||||||||||||||||||||||||
Judicial Ruling | Patent Inter Partes Review Petition Request One | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of Patents Denied Inter Partes Review Proceedings | 3 | ||||||||||||||||||||||||
Number of Patents in Inter Partes Review Proceedings | 8 | ||||||||||||||||||||||||
Positive Outcome of Litigation | Patent Infringement Claim One | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 4 | ||||||||||||||||||||||||
Damages awarded to the Company | $ | $ 12.9 | $ 6.1 | $ 34 | ||||||||||||||||||||||
Positive Outcome of Litigation | Patent Infringement Claim Three | |||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||
Number of patents in infringement case deemed unenforceable by Fairchild | patent | 1 | ||||||||||||||||||||||||
Damages awarded to the Company | $ | $ 146.5 | $ 139.8 | $ 105 | ||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 2 |