Document and Entity Information
Document and Entity Information Document - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 06, 2019 | Jun. 29, 2018 | |
Document Information [Abstract] | |||
Entity Registrant Name | POWER INTEGRATIONS INC | ||
Entity Central Index Key | 833,640 | ||
Trading Symbol | POWI | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Listing, Par Value Per Share | $ 0.01 | ||
Entity Common Stock, Shares Outstanding | 28,901,578 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 1,600 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 134,137 | $ 93,655 |
Short-term marketable securities | 94,451 | 189,236 |
Accounts receivable, net of allowance for doubtful accounts of $706 and $734 in 2018 and 2017, respectively | 11,072 | 16,798 |
Inventories | 80,857 | 57,087 |
Prepaid expenses and other current assets | 11,915 | 7,758 |
Total current assets | 332,432 | 364,534 |
PROPERTY AND EQUIPMENT, net | 114,117 | 111,705 |
INTANGIBLE ASSETS, net | 21,152 | 25,419 |
GOODWILL | 91,849 | 91,849 |
DEFERRED TAX ASSETS | 6,906 | 2,364 |
OTHER ASSETS | 22,241 | 25,203 |
Total assets | 588,697 | 621,074 |
CURRENT LIABILITIES: | ||
Accounts payable | 31,552 | 33,211 |
Accrued payroll and related expenses | 12,131 | 12,064 |
Taxes payable | 933 | 1,767 |
Other accrued liabilities | 3,750 | 4,009 |
Total current liabilities | 48,366 | 51,051 |
LONG-TERM INCOME TAXES PAYABLE | 8,652 | 18,259 |
DEFERRED TAX LIABILITIES | 216 | 138 |
OTHER LIABILITIES | 4,391 | 3,944 |
Total liabilities | 61,625 | 73,392 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.001 par value Authorized - 140,000,000 shares Outstanding - 28,888,643 and 29,782,455 shares in 2018 and 2017, respectively | 28 | 29 |
Additional paid-in capital | 126,164 | 198,384 |
Accumulated other comprehensive loss | (1,689) | (2,139) |
Retained earnings | 402,569 | 351,408 |
Total stockholders’ equity | 527,072 | 547,682 |
Total liabilities and stockholders’ equity | $ 588,697 | $ 621,074 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 706 | $ 734 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares outstanding | 28,888,643 | 29,782,455 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Statement [Abstract] | ||||
NET REVENUES | $ 415,955 | $ 431,755 | $ 389,668 | |
COST OF REVENUES | 201,167 | 218,091 | 197,477 | |
GROSS PROFIT | 214,788 | 213,664 | 192,191 | |
OPERATING EXPENSES: | ||||
Research and development | 70,580 | 68,501 | 62,310 | |
Sales and marketing | 53,064 | 51,384 | 47,978 | |
General and administrative | 35,496 | 36,142 | 33,029 | |
Total operating expenses | 159,140 | 156,027 | 143,317 | |
INCOME FROM OPERATIONS | 55,648 | 57,637 | 48,874 | |
OTHER INCOME | 4,116 | 2,662 | 1,078 | |
INCOME BEFORE INCOME TAXES | 59,764 | 60,299 | 49,952 | |
PROVISION (BENEFIT) FOR INCOME TAXES | (10,220) | 32,690 | 1,054 | |
NET INCOME | $ 69,984 | $ 27,609 | $ 48,898 | |
EARNINGS PER SHARE: | ||||
Basic | $ 2.38 | $ 0.93 | $ 1.69 | |
Diluted | [1] | $ 2.32 | $ 0.90 | $ 1.65 |
SHARES USED IN PER SHARE CALCULATION: | ||||
Basic | 29,456 | 29,674 | 28,925 | |
Diluted | [1] | 30,147 | 30,545 | 29,619 |
[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 included in the 2018, 2017 and 2016 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 69,984 | $ 27,609 | $ 48,898 |
Other comprehensive income: | |||
Foreign currency translation adjustments, net of $0 tax in 2018, 2017 and 2016 | (236) | 79 | (384) |
Unrealized gain (loss) on marketable securities, net of $0 tax in 2018, 2017 and 2016 | 161 | (207) | (123) |
Unrealized actuarial gain (loss) on pension benefits, net of tax of ($144), ($194), and $98 in 2018, 2017 and 2016, respectively | 525 | 699 | (352) |
Total other comprehensive income (loss) | 450 | 571 | (859) |
Total comprehensive income | 70,434 | 28,180 | 48,039 |
Foreign currency translation adjustment, tax | 0 | 0 | 0 |
Unrealized gain on marketable securities, tax | 0 | 0 | 0 |
Unrealized actuarial gain (loss) on pension benefits, tax | $ (144) | $ (198) | $ 98 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] |
Beginning Balance (in shares) at Dec. 31, 2015 | 28,653 | ||||
Beginning Balance at Dec. 31, 2015 | $ 442,590 | $ 28 | $ 145,366 | $ (1,851) | $ 299,047 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 615 | ||||
Issuance of common stock under employee stock option and stock award plans | 8,479 | 8,479 | |||
Repurchase of common stock (in shares) | (146) | ||||
Repurchase of common stock | (6,435) | (6,435) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 128 | ||||
Issuance of common stock under employee stock purchase plan | 4,580 | 4,580 | |||
Stock-based compensation expense related to employee stock options and awards | 19,599 | 19,599 | |||
Stock-based compensation expense related to employee stock purchases | 1,286 | 1,286 | |||
Payment of dividends to stockholders | (15,054) | (15,054) | |||
Unrealized actuarial gain (loss) on pension benefits | (352) | (352) | |||
Unrealized gain (loss) on marketable securities, | (123) | (123) | |||
Translation adjustment | (384) | (384) | |||
Net income (loss) | 48,898 | 48,898 | |||
Ending Balance (in shares) at Dec. 31, 2016 | 29,250 | ||||
Ending Balance at Dec. 31, 2016 | 503,084 | $ 28 | 172,875 | (2,710) | 332,891 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | ASU 2016-09 | 7,542 | 7,542 | |||
Issuance of common stock under employee stock option and stock award plans (in shares) | 569 | ||||
Issuance of common stock under employee stock option and stock award plans | $ 1 | ||||
Issuance of common stock under employee stock option and stock award plans | 5,087 | 5,086 | |||
Repurchase of common stock (in shares) | (129) | ||||
Repurchase of common stock | (9,188) | (9,188) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 92 | ||||
Issuance of common stock under employee stock purchase plan | 4,934 | 4,934 | |||
Stock-based compensation expense related to employee stock options and awards | 23,337 | 23,337 | |||
Stock-based compensation expense related to employee stock purchases | 1,340 | 1,340 | |||
Payment of dividends to stockholders | (16,634) | (16,634) | |||
Unrealized actuarial gain (loss) on pension benefits | 699 | 699 | |||
Unrealized gain (loss) on marketable securities, | (207) | (207) | |||
Translation adjustment | 79 | 79 | |||
Net income (loss) | 27,609 | 27,609 | |||
Ending Balance (in shares) at Dec. 31, 2017 | 29,782 | ||||
Ending Balance at Dec. 31, 2017 | 547,682 | $ 29 | 198,384 | (2,139) | 351,408 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 591 | ||||
Issuance of common stock under employee stock option and stock award plans | 4,010 | 4,010 | |||
Repurchase of common stock (in shares) | (1,572) | ||||
Repurchase of common stock | (103,154) | $ (1) | (103,153) | ||
Issuance of common stock under employee stock purchase plan (in shares) | 88 | ||||
Issuance of common stock under employee stock purchase plan | 5,343 | 5,343 | |||
Stock-based compensation expense related to employee stock options and awards | 20,027 | 20,027 | |||
Stock-based compensation expense related to employee stock purchases | 1,553 | 1,553 | |||
Payment of dividends to stockholders | (18,823) | (18,823) | |||
Unrealized actuarial gain (loss) on pension benefits | 525 | 525 | |||
Unrealized gain (loss) on marketable securities, | 161 | 161 | |||
Translation adjustment | (236) | (236) | |||
Net income (loss) | 69,984 | 69,984 | |||
Ending Balance (in shares) at Dec. 31, 2018 | 28,889 | ||||
Ending Balance at Dec. 31, 2018 | $ 527,072 | $ 28 | $ 126,164 | $ (1,689) | $ 402,569 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 69,984 | $ 27,609 | $ 48,898 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 18,918 | 18,374 | 16,812 |
Amortization of intangibles | 5,267 | 6,083 | 6,663 |
Loss on disposal of property and equipment | 553 | 360 | 332 |
Stock-based compensation expense | 21,580 | 24,677 | 20,885 |
Amortization of premium on marketable securities | 227 | 1,100 | 555 |
Deferred income taxes | (4,465) | 15,838 | (638) |
Increase (decrease) in accounts receivable allowances | (28) | 209 | 207 |
Change in operating assets and liabilities: | |||
Accounts receivable | 5,754 | (10,479) | 751 |
Inventories | (23,770) | (4,523) | (630) |
Prepaid expenses and other assets | (1,495) | (17,646) | (2,524) |
Accounts payable | 1,336 | 396 | 7,714 |
Taxes payable and accrued liabilities | (9,897) | 20,041 | (1,124) |
Net cash provided by operating activities | 83,964 | 82,039 | 97,901 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (24,677) | (32,496) | (12,198) |
Acquisition of technology licenses | (900) | 0 | 0 |
Purchases of marketable securities | (62,833) | (151,663) | (188,654) |
Proceeds from sales and maturities of marketable securities | 157,551 | 149,443 | 83,423 |
Net cash provided by (used in) investing activities | 69,141 | (34,716) | (117,429) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Issuance of common stock under employee stock plans | 9,353 | 10,020 | 13,059 |
Repurchase of common stock | (103,153) | (9,188) | (6,435) |
Payments of dividends to stockholders | (18,823) | (16,634) | (15,054) |
Proceeds from draw on line of credit | 8,000 | 5,000 | 0 |
Payments on line of credit | (8,000) | (5,000) | 0 |
Net cash used in financing activities | (112,623) | (15,802) | (8,430) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 40,482 | 31,521 | (27,958) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 93,655 | 62,134 | 90,092 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 134,137 | 93,655 | 62,134 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Unpaid property and equipment | 1,818 | 4,913 | 1,825 |
Unpaid technology licenses | 100 | 0 | 0 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid (refund) for income taxes, net of refunds (Note 11) | $ 7,437 | $ (1,571) | $ 6,613 |
THE COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY [Text Block] | THE COMPANY: Power Integrations, Inc. (“Power Integrations” or the “Company”), incorporated in California on March 25, 1988, and reincorporated in Delaware in December 1997, designs, develops, manufactures and markets analog and mixed-signal integrated circuits (ICs) and other electronic components and circuitry used in high-voltage power conversion. The Company’s products are used in power converters that convert electricity from a high-voltage source (typically 48 volts or higher) to the type of power required for a specified downstream use. A large percentage of the Company’s products are ICs used in AC-DC power supplies, which convert the high-voltage AC from a wall outlet to the low-voltage DC required by most electronic devices. Power supplies incorporating the Company’s products are used with all manner of electronic products including mobile phones, computing and networking equipment, appliances, electronic utility meters, power tools, industrial controls, and “smart-home,” or “internet of things” applications such as networked thermostats, power strips and other building-automation and security devices. The Company also supplies high-voltage LED drivers, which are AC-DC ICs specifically designed for lighting applications that utilize light-emitting diodes. The Company also offers high-voltage gate drivers – either standalone ICs or circuit boards containing ICs, electrical isolation components and other circuitry – used to operate high-voltage switches such as insulated-gate bipolar transistors (IGBTs) and silicon-carbide (SiC) MOSFETs. These combinations of switches and drivers are used for power conversion in high-power applications (i.e., power levels ranging from a few kilowatts up to one gigawatt) such as industrial motors, solar- and wind-power systems, electric vehicles and high-voltage DC transmission systems. In 2018, the Company introduced a new category of power-conversion ICs: a family of motor-driver ICs addressing brushless DC (BLDC) motors used in refrigerators, HVAC systems, ceiling fans and other consumer-appliance and light commercial applications. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUTING POLICIES [Text Block] | SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS: Significant Accounting Policies and Estimates 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 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. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of all intercompany transactions and balances. Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition and allowances for receivables and inventories. These estimates are based on historical facts and various other factors, which the Company believes to be reasonable at the time the estimates are made. However, as the effects of future events cannot be determined with precision, actual results could differ significantly from management’s estimates. 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. The Company has also elected the practical expedient under ASC 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. 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. Inventories Inventories (which consist of costs associated with the purchases of wafers from domestic and offshore foundries and of packaged components from offshore assembly manufacturers, as well as internal labor and overhead associated with the testing of both wafers and packaged components) are stated at the lower of cost (first-in, first-out) or market. Provisions, when required, are made to reduce excess and obsolete inventories to their estimated net realizable values. Income Taxes Income-tax expense is an estimate of current income taxes payable or refundable in the current fiscal year based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences and carry-forwards that are recognized for financial reporting and income tax purposes. The Company accounts for income taxes under the provisions of ASC 740, Income Taxe s. Under the provisions of ASC 740, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, utilizing the tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes valuation allowances to reduce any deferred tax assets to the amount that it estimates will more likely than not be realized based on available evidence and management’s judgment. The Company limits the deferred tax assets recognized related to certain officers’ compensation to amounts that it estimates will be deductible in future periods based upon Internal Revenue Code Section 162(m). In the event that the Company determines, based on available evidence and management judgment, that all or part of the net deferred tax assets will not be realized in the future, it would record a valuation allowance in the period the determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a material impact on the Company’s results of operations and financial position. Business Combinations The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing at the acquisition date impacting asset valuations and liabilities assumed. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. Goodwill and Intangible Assets Goodwill and the Company's domain name are evaluated in accordance with ASC 350-10, Goodwill and Other Intangible Assets, and an impairment analysis is conducted on an annual basis, or sooner if indicators exist for a potential impairment. In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets , long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Cash and Cash Equivalents The Company considers cash invested in highly liquid financial instruments with maturities of three months or less at the date of purchase to be cash equivalents. Marketable Securities The Company generally holds securities until maturity; however, they may be sold under certain circumstances including, but not limited to, when necessary for the funding of acquisitions and other strategic investments. As a result the Company classifies its investment portfolio as available-for-sale. The Company classifies all investments with a maturity date greater than three months at the date of purchase as short-term marketable securities in its consolidated balance sheet. As of December 31, 2018 , and December 31, 2017 , the Company’s marketable securities consisted primarily of commercial paper, corporate bonds, government securities and/or other high-quality commercial securities. Employee Benefits Plan The Company sponsors a 401(k) tax-deferred savings plan for all employees in the United States who meet certain eligibility requirements. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. The Company is not required to contribute; however, the Company contributes a certain percentage of employee annual salaries on a discretionary basis, not to exceed an established threshold. The Company provided for a contribution of approximately $1.3 million , $1.2 million and $1.1 million in 2018 , 2017 and 2016 , respectively. Retirement Benefit Obligations (Pension) The Company recognizes the over-funded or under-funded status of a defined benefit pension or post-retirement plan as an asset or liability in the accompanying consolidated balance sheets. Actuarial gains and losses are recorded in accumulated other comprehensive loss, a component of stockholders’ equity, and are amortized as a component of net periodic cost over the remaining estimated service period of participants. Foreign Currency Risk and Foreign Currency Translation As of December 31, 2018 , the Company’s primary transactional currency was U.S. dollars; in addition, the Company holds cash in Swiss francs and euros to fund the operations of the Company’s Swiss subsidiary. The foreign exchange rate fluctuation between the U.S. dollar versus the Swiss franc and euro is recorded in other income in the consolidated statements of income. Gains and losses arising from the remeasurement of non-functional currency balances are recorded in other income in the accompanying consolidated statements of income. In each of the years ended December 31, 2018 , 2017 and 2016 , the Company realized a foreign exchange transaction loss of $0.1 million . The functional currencies of the Company’s other subsidiaries are the local currencies. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rates as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Cumulative gains and losses from the translation of the foreign subsidiaries’ financial statements have been included in stockholders’ equity. Warranty The Company generally warrants that its products will substantially conform to the published specifications for 12 months from the date of shipment. The Company’s liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial, and as a result, the Company does not record a specific warranty reserve. Advertising Advertising costs are expensed as incurred. In 2018 , advertising costs amounted to $1.2 million and were $1.3 million in each of 2017 and 2016 . Research and Development Research and development costs are expensed as incurred. Indemnifications The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (DSA). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company’s products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (Customer Indemnification). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees' development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of December 31, 2018 . For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnifications. Recently Issued Accounting Pronouncements In 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. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements . The update provides an optional transition method that allows entities to apply the standards prospectively, versus recasting the prior periods presented. If elected, an entity would recognize a cumulative-effect adjustment to opening retained earnings in the period of adoption. The Company expects to adopt the new standards using the optional transition method with the recognition of both a right-of-use asset and corresponding lease liability of approximately $6.5 million to $7.5 million on the balance sheet upon adoption. No impact on the income statement is expected. |
COMPONENTS OF THE COMPANY'S CON
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Disclosures [Text Block] | COMPONENTS OF THE COMPANY’S CONSOLIDATED BALANCE SHEETS Accounts Receivable (in thousands) December 31, 2018 December 31, 2017 Accounts receivable trade $ 54,055 $ 58,718 Accrued ship and debit (40,118 ) (39,486 ) Allowance for stock rotation and rebate (2,159 ) (1,700 ) Allowance for doubtful accounts (706 ) (734 ) Total $ 11,072 $ 16,798 Inventories (in thousands) December 31, 2018 December 31, 2017 Raw materials $ 41,138 $ 15,517 Work-in-process 15,612 16,765 Finished goods 24,107 24,805 Total $ 80,857 $ 57,087 Prepaid Expenses and Other Current Assets (in thousands) December 31, 2018 December 31, 2017 Prepaid income tax $ 3,081 $ 460 Prepaid legal fees 181 213 Prepaid maintenance agreements 2,047 856 Advance to suppliers 2,157 1,211 Interest receivable 595 1,195 Other 3,854 3,823 Total $ 11,915 $ 7,758 Property and Equipment (in thousands) December 31, 2018 December 31, 2017 Land $ 20,288 $ 20,288 Construction-in-progress 21,696 15,353 Building and improvements 53,610 52,655 Machinery and equipment 160,028 151,269 Computer software and hardware and office furniture and fixtures 53,681 50,440 309,303 290,005 Accumulated depreciation (195,186 ) (178,300 ) Total $ 114,117 $ 111,705 Depreciation expense for property and equipment for fiscal years ended December 31, 2018 , 2017 and 2016 , was approximately $18.9 million , $18.4 million and $16.8 million , respectively, and was determined using the straight-line method over the following useful lives: Building and improvements 4-40 years Machinery and equipment 2-8 years Computer software and hardware and office furniture and fixtures 4-7 years Total property and equipment (excluding accumulated depreciation) located in the United States at December 31, 2018 , 2017 and 2016 , was approximately $167.6 million , $159.5 million and $155.1 million , respectively. In each of 2018 , 2017 and 2016 , approximately 12% of total property and equipment (excluding accumulated depreciation) was held in Thailand by one of the Company’s subcontractors. No other country held 10% or more of total property and equipment in the periods presented. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the three years ended December 31, 2018 : (in thousands) Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Foreign Currency Items Total Balance at January 1, 2016 $ (97 ) $ (1,584 ) $ (170 ) $ (1,851 ) Other comprehensive loss before reclassifications (123 ) (505 ) (384 ) (1,012 ) Amounts reclassified from accumulated other comprehensive loss — 153 (1) — 153 Other comprehensive loss (123 ) (352 ) (384 ) (859 ) Balance at December 31, 2016 (220 ) (1,936 ) (554 ) (2,710 ) Other comprehensive income (loss) before reclassifications (207 ) 502 79 374 Amounts reclassified from accumulated other comprehensive loss — 197 (1) — 197 Other comprehensive loss (207 ) 699 79 571 Balance at December 31, 2017 (427 ) (1,237 ) (475 ) (2,139 ) Other comprehensive income (loss) before reclassifications 161 401 (236 ) 326 Amounts reclassified from accumulated other comprehensive loss — 124 (1) — 124 Other comprehensive income 161 525 (236 ) 450 Balance at December 31, 2018 $ (266 ) $ (712 ) $ (711 ) $ (1,689 ) _______________ (1) This component of accumulated other comprehensive loss is included in the computation of net periodic pension cost for the years ended December 31, 2018 , 2017 and 2016 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS [Text Block] | FAIR VALUE MEASUREMENTS: ASC 820-10, Fair Value Measurements , clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820-10 establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices for identical assets in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company’s cash equivalents and investment instruments are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The type of instrument valued based on quoted market prices in active markets primarily includes money market securities. This type of instrument is generally classified within Level 1 of the fair-value hierarchy. The types of instruments valued based on other observable inputs (Level 2 of the fair-value hierarchy) include investment-grade corporate bonds and government, state, municipal and provincial obligations. Such types of investments are valued by using a multi-dimensional relational model, the inputs are primarily benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The Company does not hold any instruments that would be classified within Level 3 of the fair-value hierarchy. The fair value hierarchy of the Company’s cash equivalents and marketable securities at December 31, 2018 , and 2017 , was as follows: Fair Value Measurement at December 31, 2018 (in thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Corporate securities $ 94,451 $ — $ 94,451 Commercial paper 96,366 — 96,366 Money market funds 304 304 — Total $ 191,121 $ 304 $ 190,817 Fair Value Measurement at December 31, 2017 (in thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Corporate securities $ 179,951 $ — $ 179,951 Commercial paper 51,122 — 51,122 Government securities 9,285 — 9,285 Money market funds 195 195 — Total $ 240,553 $ 195 $ 240,358 The Company did not transfer any investments between level 1 and level 2 of the fair value hierarchy in the years ended December 31, 2018 , and 2017 . |
MARKETABLE SECURITIES (Notes)
MARKETABLE SECURITIES (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Marketable Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | MARKETABLE SECURITIES: Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2018 , were as follows: Amortized Gross Unrealized Estimated Fair (in thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 6,788 $ — $ (2 ) $ 6,786 Total 6,788 — (2 ) 6,786 Investments due in 4-12 months: Corporate securities 60,123 — (244 ) 59,879 Total 60,123 — (244 ) 59,879 Investments due in 12 months or greater: Corporate securities 27,806 2 (22 ) 27,786 Total 27,806 2 (22 ) 27,786 Total marketable securities $ 94,717 $ 2 $ (268 ) $ 94,451 Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2017 , were as follows: Amortized Gross Unrealized Estimated Fair (in thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 38,485 $ — $ (16 ) $ 38,469 Total 38,485 — (16 ) 38,469 Investments due in 4-12 months: Corporate securities 104,440 — (199 ) 104,241 Government securities 9,302 — (17 ) 9,285 Total 113,742 — (216 ) 113,526 Investments due in 12 months or greater: Corporate securities 37,436 — (195 ) 37,241 Total 37,436 — (195 ) 37,241 Total marketable securities $ 189,663 $ — $ (427 ) $ 189,236 The weighted average interest rate of investments at December 31, 2018 and 2017 , was approximately 2.65% and 1.57% , respectively. As of December 31, 2018 and 2017 , there were no individual securities that had been in a continuous loss position for 12 months or greater. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS [Text Block] | GOODWILL AND INTANGIBLE ASSETS: The carrying amount of goodwill as of December 31, 2018, 2017 and 2016 was $91.8 million with no changes to goodwill in any of the respective fiscal years. Intangible assets consist primarily of developed technology, acquired licenses, customer relationships, trade name, domain name, in-process R&D and patent rights, and are reported net of accumulated amortization. The Company amortizes the cost of all intangible assets over the shorter of the estimated useful life or the term of the developed technology, customer relationships, technology licenses and in-place leases, which range from two to twelve years, with the exception of $4.7 million of in-process R&D and $1.3 million paid to acquire an internet domain name. In-process R&D is assessed for impairment until the development is completed and products are available for sale, at which time the Company will begin to amortize the in-process R&D. The Company expects the amortization of in-process R&D to begin sometime in the second half of fiscal 2019. The Company acquired the rights to the internet domain name www.power.com , which is now the Company’s primary domain name; the cost to acquire the domain name has been recorded as an intangible asset and will not be amortized as it has an indefinite useful life. Amortization of acquired intangible assets was approximately $5.3 million , $6.1 million and $6.7 million in the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company does not believe there is any significant residual value associated with the following intangible assets: December 31, 2018 December 31, 2017 (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 (22,464 ) 10,806 33,270 (19,211 ) 14,059 Customer relationships 20,030 (16,520 ) 3,510 20,030 (14,621 ) 5,409 Technology licenses 1,000 (115 ) 885 — — — In-place leases — — — 660 (660 ) — Total intangible assets $ 60,251 $ (39,099 ) $ 21,152 $ 59,911 $ (34,492 ) $ 25,419 The estimated future amortization expense related to definite-lived intangible assets at December 31, 2018 , is as follows: Fiscal Year Estimated Amortization (in thousands) 2019 $ 4,878 2020 3,653 2021 2,787 2022 1,709 2023 1,467 Thereafter 707 Total (1) $ 15,201 _______________ (1) The total above excludes $4.7 million of in-process R&D which will be amortized upon completion of development over the estimated useful life of the technology. |
STOCK PLANS AND SHARE BASED COM
STOCK PLANS AND SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK PLANS AND SHARE BASED COMPENSATION [Text Block] | STOCK PLANS AND SHARE BASED COMPENSATION: Stock Plans As of December 31, 2018 , the Company had three stock-based compensation plans (the “Plans”) which are described below. 2007 Equity Incentive Plan The 2007 Equity Incentive Plan (2007 Plan) was adopted by the board of directors on September 10, 2007, and approved by the stockholders on November 7, 2007, as an amendment and restatement of the 1997 Stock Option Plan (1997 Plan). The 2007 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock unit (RSU) awards, stock appreciation rights, performance-based (PSU) awards, long-term performance based (PRSU) awards and other stock awards to employees, directors and consultants. Pursuant to the 2007 Plan, the exercise price for incentive stock options and non-statutory stock options is generally at least 100% of the fair market value of the underlying shares on the date of grant. Options generally vest over 48 months measured from the date of grant. Options generally expire no later than ten years after the date of grant, subject to earlier termination upon an optionee’s cessation of employment or service. The 2007 Plan expired in September 2017 with no further grants to be made under this plan; however previous grants under this plan shall remain outstanding until they are exercised, vest, forfeited or expire. Beginning January 27, 2009, grants pursuant to the Directors Equity Compensation Program (which was adopted by the board of directors on January 27, 2009) to non-employee directors have been made primarily under the 2007 Plan. The Directors Equity Compensation Program provides for grants to outside directors as follows: effective annually, upon the first trading day of July, each outside director would receive a grant of an equity award with an aggregate value of $100,000 . At each outside director’s election, such award would consist entirely of RSUs or entirely of stock options. The quantity of options would be calculated by dividing $100,000 by the Black-Scholes value on the date of grant. The quantity of RSUs issued would be calculated by dividing $100,000 by the grant-date fair value. Further, on the date of election of a new outside director, such new director would receive such grant as continuing outside directors receive on the first trading day of July; provided, however, that such grant is prorated for the portion of the year that such new outside director will serve until the next first trading day of July. The Directors Equity Compensation Program will remain in effect at the discretion of the board of directors or the compensation committee. 2016 Incentive Award Plan The 2016 Incentive Award Plan (2016 Plan) was adopted by the board of directors on March 17, 2016 and approved by the stockholders on May 13, 2016. The Plan provides for the grant of RSU awards, PSU awards and PRSU awards. No other forms of equity-based awards, including stock options and stock appreciation rights, may be granted under the 2016 Plan. As of December 31, 2018 , 0.4 million awards have been issued and approximately 1.1 million shares of common stock remain available for future grant under the 2016 Plan. The 2016 Plan also provides for performance-based cash awards that qualify as “performance-based compensation” within the meaning of Section 162(m) of the Internal Revenue Code. 1997 Employee Stock Purchase Plan Under the 1997 Employee Stock Purchase Plan (Purchase Plan), eligible employees may apply accumulated payroll deductions, which may not exceed 15% of an employee’s compensation, to the purchase of shares of the Company’s common stock at periodic intervals. The purchase price of stock under the Purchase Plan is equal to 85% of the lower of (i) the fair market value of the Company’s common stock on the first day of each offering period, or (ii) the fair market value of the Company’s common stock on the purchase date (as defined in the Purchase Plan). Each offering period consists of one purchase period of approximately six months duration. An aggregate of 3.5 million shares of common stock were reserved for issuance to employees under the Purchase Plan. As of December 31, 2018 , of the shares reserved for issuance, 3.1 million shares had been purchased and 0.4 million shares were reserved for future issuance under the Purchase Plan. Shares Reserved As of December 31, 2018 , the Company had approximately 1.6 million shares of common stock reserved for future grant under all stock plans. Stock-Based Compensation The Company applies the provisions of ASC 718-10, Stock Compensation . Under the provisions of ASC 718-10, the Company recognizes the fair value of stock-based compensation in its financial statements over the requisite service period of the individual grants, which generally equals a four -year vesting period. The Company uses estimates of volatility, expected term, risk-free interest rate, dividend yield and forfeitures in determining the fair value of these awards and the amount of compensation expense to recognize. The Company uses the straight-line method to amortize all stock awards granted over the requisite service period of the award. The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenues $ 1,097 $ 1,321 $ 1,148 Research and development 7,688 8,496 7,309 Sales and marketing 4,729 5,197 4,489 General and administrative 8,066 9,663 7,939 Total stock-based compensation expense $ 21,580 $ 24,677 $ 20,885 The following table summarizes total compensation expense related to unvested awards not yet recognized, net of expected forfeitures, and the weighted average period over which it is expected to be recognized as of December 31, 2018 : Unrecognized Compensation Expense for Unvested Awards (in thousands) Weighted Average Remaining Recognition Period (in years) Long-term performance-based awards $ 2,042 0.91 Restricted stock units 34,546 3.27 Purchase plan 138 0.08 Total unrecognized compensation expense $ 36,726 Stock-based compensation expense in the year ended December 31, 2018 , was approximately $21.6 million (comprising approximately $16.6 million related to restricted stock units, $3.4 million related to performance-based awards and $1.6 million related to the Company’s Purchase Plan). Stock-based compensation expense in the year ended December 31, 2017 , was approximately $24.7 million (comprising approximately $15.2 million related to restricted stock units, $8.2 million related to performance-based awards and $1.3 million related to the Company’s Purchase Plan). Stock-based compensation expense in the year ended December 31, 2016 , was approximately $20.9 million (comprising approximately $13.0 million related to restricted stock units, $6.4 million related to performance-based awards, $1.3 million related to the Company’s Purchase Plan and $0.2 million related to stock options). The Company did not grant stock options in the years ended December 31, 2018 , 2017 and 2016 , and therefore no fair-value assumptions are reported. The fair value of employees’ stock purchase rights under the Purchase Plan was estimated using the Black-Scholes model with the following weighted-average assumptions used during the three years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Risk-free interest rates 1.94% 0.91% 0.44% Expected volatility rates 31% 30% 32% Expected dividend yield 0.89% 0.80% 0.96% Expected term of purchase rights (in years) 0.50 0.50 0.50 Weighted-average estimated fair value of purchase rights $17.33 $16.74 $12.23 A summary of stock options outstanding as of December 31, 2018 , and activity during three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2016 1,030 $ 27.58 Granted — — Exercised (333 ) $ 25.41 Forfeited or expired — — Outstanding at December 31, 2016 697 $ 28.62 Granted — — Exercised (186 ) $ 27.48 Forfeited or expired — — Outstanding at December 31, 2017 511 $ 29.03 Granted — — Exercised (176 ) $ 22.60 Forfeited or expired — — Outstanding at December 31, 2018 335 $ 32.41 1.55 $ 9,578 Vested and Exercisable at December 31, 2018 335 1.55 $ 9,578 The total intrinsic value of options exercised during the year ended December 31, 2018 , 2017 and 2016 , was $7.5 million , $8.9 million and $11.5 million , respectively. The following table summarizes the stock options outstanding at December 31, 2018 : Options Outstanding Options Exercisable (shares in thousands) Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $17.75 - $36.95 181 0.88 $ 26.05 181 $ 26.05 $37.96 - $42.88 154 2.35 $ 39.85 154 $ 39.85 335 1.55 $ 32.41 335 $ 32.41 PSU Awards Under the performance-based awards program, the Company grants awards in the performance year in an amount equal to twice the target number of shares to be issued if the maximum performance metrics are met. The number of shares that are released at the end of the performance year can range from zero to 200% of the target number depending on the Company’s performance. The performance metrics of this program are annual targets consisting of a combination of net revenue, non-GAAP operating earnings and strategic goals. As the net revenue, non-GAAP operating income and strategic goals are considered performance conditions, expense associated with these awards, net of estimated forfeitures, is recognized over the service period based on an assessment of the achievement of the performance targets. The fair value of these PSUs is determined using the fair value of the Company’s common stock on the date of the grant, reduced by the discounted present value of dividends expected to be declared before the awards vest. If the performance conditions are not achieved, no compensation cost is recognized and any previously recognized compensation is reversed. A summary of PSU awards outstanding as of December 31, 2018 , and activity during the three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant-Date Fair Value Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2016 11 $ 52.35 Granted 101 $ 46.26 Vested (11 ) $ 52.35 Forfeited or canceled (2 ) $ 46.87 Outstanding at December 31, 2016 99 $ 46.25 Granted 88 $ 63.99 Vested (99 ) $ 46.25 Forfeited or canceled (9 ) $ 63.99 Outstanding at December 31, 2017 79 $ 63.99 Granted 89 $ 62.87 Vested (79 ) $ 63.99 Forfeited or canceled (63 ) $ 62.87 Outstanding at December 31, 2018 26 $ 62.87 — $ 1,610 Outstanding and expected to vest at December 31, 2018 26 — $ 1,610 The grant-date fair value of PSU awards released, which were fully vested, in the years ended December 31, 2018 , 2017 and 2016 were approximately $5.1 million , $4.6 million and $0.6 million , respectively. PRSU Awards (Long-term Performance Based) The Company's PRSU program provides for the issuance of PRSUs which will vest based on the Company's performance measured against the PRSU Plan's established revenue targets. The PRSUs were granted in an amount equal to twice the target number of shares to be issued if the maximum performance metrics are met. The actual number of shares the recipient receives is determined at the end of a three -year performance period based on results achieved versus the Company’s performance goals, and may range from zero to 200% of the target number. The performance goals for PRSUs granted in fiscal 2018 , 2017 and 2016 were based on the Company’s annual revenue growth over the respective three -year performance period. Recipients of a PRSU award generally must remain employed by the Company on a continuous basis through the end of the applicable three -year performance period in order to receive shares subject to that award. Expenses associated with these awards, net of estimated forfeitures, are recorded throughout the year depending on the number of shares expected to vest based on progress toward the performance target. The fair value of PRSU awards is determined using the fair value of the Company’s common stock on the grant date, reduced by the discounted present value of dividends expected to be declared before the awards vest. If the performance conditions are not achieved, no compensation cost is recognized and any previously recognized compensation is reversed. A summary of PRSU awards outstanding as of December 31, 2018 , and activity during the three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant-Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2016 129 $ 53.75 Granted 78 $ 43.26 Vested — — Forfeited or canceled (57 ) $ 55.35 Outstanding at December 31, 2016 150 $ 47.65 Granted 71 $ 63.00 Vested — — Forfeited or canceled (37 ) $ 51.59 Outstanding at December 31, 2017 184 $ 52.80 Granted 72 $ 59.90 Vested (38 ) $ 52.45 Forfeited or canceled (5 ) $ 43.26 Outstanding at December 31, 2018 213 $ 55.48 1.50 $ 12,963 Outstanding and expected to vest at December 31, 2018 141 0.78 $ 8,611 The grant-date fair value of PRSU awards released, which were fully vested, in the year ended December 31, 2018 was approximately $2.0 million . RSU Awards RSUs granted to employees typically vest ratably over a four -year period, and are converted into shares of the Company’s common stock upon vesting on a one-for-one basis subject to the employee’s continued service to the Company over that period. The fair value of RSUs is determined using the fair value of the Company’s common stock on the date of the grant, reduced by the discounted present value of dividends expected to be declared before the awards vest. Compensation expense is recognized on a straight-line basis over the requisite service period of each grant adjusted for estimated forfeitures. A summary of RSU awards outstanding as of December 31, 2018 , and activity during the three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant-Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2016 681 $ 46.98 Granted 331 $ 46.70 Vested (270 ) $ 45.13 Forfeited (24 ) $ 47.21 Outstanding at December 31, 2016 718 $ 47.54 Granted 558 $ 60.82 Vested (284 ) $ 46.52 Forfeited (44 ) $ 50.89 Outstanding at December 31, 2017 948 $ 55.51 Granted 275 $ 62.85 Vested (296 ) $ 53.78 Forfeited (32 ) $ 59.43 Outstanding at December 31, 2018 895 $ 58.19 1.75 $ 54,575 Outstanding and expected to vest at December 31, 2018 828 1.63 $ 50,477 The grant-date fair value of RSUs vested in the years ended December 31, 2018 , 2017 and 2016 , was approximately $15.9 million , $13.2 million and $12.2 million , respectively. |
SIGNIFICANT CUSTOMERS AND GEOGR
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
SIGNIFICANT CUSTOMERS AND EXPORT SALES [Text Block] | SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES: Customer Concentration The Company's top ten customers accounted for approximately 56% , 54% and 60% of revenues in 2018 , 2017 and 2016 , respectively. A significant portion of these revenues are attributable to sales of the Company’s products to distributors of electronic components. These distributors sell the Company’s products to a broad, diverse range of end users, including OEMs and merchant power supply manufacturers. Sales to distributors in 2018 , 2017 and 2016 were $313.9 million , $330.9 million and $292.6 million , respectively. Direct sales to OEMs and power-supply manufacturers accounted for the remainder. In each of 2018 , 2017 and 2016 one distributor accounted for more than 10% of revenues. A second customer, also a distributor, accounted for more than 10% of revenues in 2016 . The following table discloses these customers’ percentage of net revenues for the respective years: Year Ended December 31, Customer 2018 2017 2016 Avnet 14 % 16 % 18 % Powertech Distribution Ltd. * * 10 % _______________ * Total customer revenue was less than 10% of net revenues. 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 consisted principally of cash investments and trade receivables. The Company does not have any off-balance-sheet credit exposure related to its customers. As of both December 31, 2018 and December 31, 2017 , 64% of accounts receivable were concentrated with the Company’s top ten customers. As of December 31, 2018 two customers, both distributors of the Company’s products, represented more than 10% of accounts receivable. As of December 31, 2017 one of these customers represented more than 10% of accounts receivable. The following table discloses these customers’ percentage of accounts receivable: Customer December 31, December 31, Avnet 17 % 18 % Powertech Distribution Ltd. 11 % * _______________ * Total customer accounts receivable was less than 10% of net accounts receivables. No other customers accounted for 10% or more of the Company’s accounts receivable in the periods presented. 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 were as follows: Year Ended December 31, (In thousands) 2018 2017 2016 United States of America $ 15,315 $ 16,647 $ 14,948 Hong Kong/China 218,752 227,335 198,858 Taiwan 43,081 50,307 50,324 Korea 33,877 38,012 41,996 Western Europe (excluding Germany) 49,834 48,230 41,214 Japan 19,897 20,769 19,767 Germany 14,403 11,558 7,563 Other 20,796 18,897 14,998 Total net revenues $ 415,955 $ 431,755 $ 389,668 |
COMMON STOCK REPURCHASES AND CA
COMMON STOCK REPURCHASES AND CASH DIVIDENDS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Common Stock Repurchases and Cash Dividends [Abstract] | |
Common Stock Repurchase and Cash Dividends [Text Block] | COMMON STOCK REPURCHASES AND CASH DIVIDENDS: Common Stock Repurchases Over the years the Company’s board of directors has authorized the use of funds to repurchase shares of the Company’s common stock, including $60.0 million , $30.0 million and $110.0 million in 2015, 2017 , and 2018 , respectively, with repurchases to be executed according to pre-defined price/volume guidelines. In 2016 , 2017 and 2018 the Company purchased 146,000 , 129,000 and 1,572,000 shares, respectively, for approximately $6.4 million , $9.2 million and $103.2 million , respectively. As of December 31, 2018 , the Company had $51.2 million available for future stock repurchases, which has no expiration date. Authorization of future stock repurchase programs is at the discretion of the board of directors and will depend on the Company’s financial condition, results of operations, capital requirements and business conditions as well as other factors. Common Stock Dividend The following table presents the quarterly dividends declared per share of the Company’s common stock for the periods indicated: Year Ended December 31, 2018 2017 2016 First Quarter $ 0.16 $ 0.14 $ 0.13 Second Quarter $ 0.16 $ 0.14 $ 0.13 Third Quarter $ 0.16 $ 0.14 $ 0.13 Fourth Quarter $ 0.16 $ 0.14 $ 0.13 The Company paid a total of approximately $18.8 million , $16.6 million and $15.1 million in cash dividends during 2018 , 2017 and 2016 , respectively. In January 2019, the Company’s board of directors declared a $0.17 per share quarterly dividend for each quarter in 2019. The declaration of any future cash dividend is at the discretion of the board of directors and will depend on the Company’s financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that cash dividends are in the best interest of the Company’s stockholders. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE [Text Block] | EARNINGS PER SHARE: Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income by the weighted-average shares of common stock and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares included in this calculation consist of dilutive shares issuable upon the assumed exercise of outstanding common stock options, the assumed vesting of outstanding restricted stock units, the assumed issuance of awards under the stock purchase plan and contingently issuable performance-based awards, as computed using the treasury stock method. A summary of the earnings per share calculation is as follows: Year Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Basic earnings per share: Net income $ 69,984 $ 27,609 $ 48,898 Weighted-average common shares 29,456 29,674 28,925 Basic earnings per share $ 2.38 $ 0.93 $ 1.69 Diluted earnings per share (1) : Net income $ 69,984 $ 27,609 $ 48,898 Weighted-average common shares 29,456 29,674 28,925 Effect of dilutive securities: Employee stock plans 691 871 694 Diluted weighted-average common shares 30,147 30,545 29,619 Diluted earnings per share $ 2.32 $ 0.90 $ 1.65 _______________ (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 included in the 2018, 2017 and 2016 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. In the years ended December 31, 2018 , 2017 , and 2016 , no outstanding stock awards were determined to be anti-dilutive and therefore were excluded from the computation of diluted earnings per share. |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES [Text Block] | PROVISION (BENEFIT) FOR INCOME TAXES: U.S. Tax Reform The Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21% , requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The SEC staff issued Staff Accounting Bulletin 118 (SAB 118), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The Company completed the accounting for the effects of enactment of the Tax Act as of December 22, 2018. The Company has completed the accounting for the transition effects of the Tax Act under ASC 740, which includes the recognition of the one-time transition tax of $34.1 million before utilization of net operating losses and credits; $6.7 million after utilization. The difference between the provisional transition tax estimate recorded at December 31, 2017, and the final amount was included in 2018 as a component of income tax expense. Although the Tax Act generally eliminates U.S. federal income tax on dividends from foreign subsidiaries of domestic corporations, it creates a new requirement that global intangible low-taxed income (GILTI) earned by foreign subsidiaries must be included in the current gross income of the foreign subsidiaries’ U.S. shareholder. GILTI is defined as the excess of the shareholder’s “net subsidiaries tested income” over the net deemed tangible income return. In 2018 the Company recognized $6.3 million of GILTI income tax before credits. Under GILTI tax rules the Company must make an accounting policy election to either (1) recognize taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factor such amount into the Company’s measure of its deferred taxes (the “deferred method”). The Company elected the deferred method and will recognize deferred taxes when basis differences exist that are expected to affect the amount of the GILTI inclusion upon reversal. The Company considered the current structure, operations and expectation that the Company will continue to pay incremental U.S. tax on GILTI in the foreseeable future when electing the deferred method. Upon election the Company set up a GILTI deferred tax asset for basis differences with future effects on GILTI taxes, which resulted in a tax benefit of $2.3 million in 2018. Income Taxes The Company accounts for income taxes under the provisions of ASC 740, Income Taxes . Under the provisions of ASC 740, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, utilizing the tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. U.S. and foreign components of income before income taxes were: Year Ended December 31, (in thousands) 2018 2017 2016 U.S. operations $ (6,529 ) $ (6,944 ) $ (477 ) Foreign operations 66,293 67,243 50,429 Total pretax income $ 59,764 $ 60,299 $ 49,952 The components of the provision (benefit) for income taxes are as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Current provision (benefit): Federal $ (6,382 ) $ 35,311 $ — State 4 4 — Foreign 938 1,483 1,638 (5,440 ) 36,798 1,638 Deferred provision (benefit): Federal (4,593 ) (3,640 ) (175 ) State — — (27 ) Foreign (187 ) (468 ) (382 ) (4,780 ) (4,108 ) (584 ) Total $ (10,220 ) $ 32,690 $ 1,054 The provision (benefit) for income taxes differs from the amount that would result by applying the applicable federal income tax rate to income before income taxes, as follows: Year Ended December 31, 2018 2017 2016 Provision (benefit) computed at Federal statutory rate 21.0 % 35.0 % 35.0 % Business tax credits (9.1 ) (5.7 ) (6.0 ) Stock-based compensation (2.2 ) (5.0 ) 2.2 Foreign income taxed at different rate (25.0 ) (37.3 ) (33.1 ) GILTI inclusion 10.6 — — U.S. Tax Act - transition tax (16.2 ) 54.1 — U.S. Tax Act - deferred tax asset and liability adjustment — 8.1 — Valuation allowance 2.8 2.2 1.8 Other 1.0 2.8 2.2 Total (17.1 )% 54.2 % 2.1 % The Company’s effective tax rate is impacted by the geographic distribution of the world-wide earnings in lower tax jurisdictions and the federal R&D tax credit. Additionally, in 2018 the Company’s effective tax rate was favorably impacted by revisions to the Tax Act resulting in a $9.7 million income tax benefit. In 2017 our effective tax rate was also impacted by a $37.5 million charge resulting from the enactment of the Tax Act. The components of the net deferred income tax assets (liabilities) were as follows: December 31, (in thousands) 2018 2017 Deferred tax assets: Other reserves and accruals $ 3,695 $ 979 Tax credit carry-forwards 18,052 10,442 Stock compensation 3,050 4,064 Capital losses 157 163 Net operating loss 3,144 7,059 Valuation allowance (19,955 ) (18,421 ) 8,143 4,286 Deferred tax liabilities: Depreciation (1,423 ) (1,965 ) Other (30 ) (95 ) (1,453 ) (2,060 ) Net deferred tax assets $ 6,690 $ 2,226 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future taxable income. In the event that the Company determines, based on available evidence and management judgment, that all or part of the net deferred tax assets will not be realized in the future, the Company would record a valuation allowance in the period the determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a material impact on its results of operations and financial position. As of December 31, 2018 , the Company continues to maintain a valuation allowance primarily as a result of capital losses for federal purposes, and on its California, New Jersey and Canada deferred tax assets as the Company believes that it is not more likely than not that the deferred tax assets will be fully realized. As of December 31, 2018 , the Company had approximately $7.2 million in federal research and development tax credit carry-forwards, which will start to expire in 2033 , California research and development tax credit carry-forwards of approximately $24.3 million (there is no expiration of research and development tax credit carry-forwards for the state of California) and California net operating losses of $54.7 million which will begin to expire in 2032 . As of December 31, 2018 , the Company had Canadian scientific research and experimental development tax credit carry-forwards of approximately $2.6 million and New Jersey research and experimental development tax credit carry-forwards of approximately $0.9 million , which will start to expire in 2030 and 2026 , respectively. As discussed above the Tax Act required a transition tax on previously untaxed accumulated and current foreign earnings. Correspondingly, all undistributed earnings were deemed to be taxed and distributions of the unremitted earnings will not have any significant U.S. federal income tax impact. We have not provided for any remaining tax effect, if any, of limited outside basis differences of our foreign subsidiaries based upon plans of future reinvestment. The determination of the future tax consequences of the remittance of these earnings is not practicable. Unrecognized Tax Benefits The Company applies the provisions of ASC 740-10, relating to accounting for uncertain income taxes. Reconciliation of the beginning and ending amount of unrecognized tax benefits: (in thousands) Unrecognized Tax Benefits Unrecognized Tax Benefits Balance at January 1, 2016 $ 13,560 Gross Increase for Tax Positions of Current Year 1,856 Gross Decrease for Tax Positions of Prior Years (23 ) Unrecognized Tax Benefits Balance at December 31, 2016 15,393 Gross Increase for Tax Positions of Current Year 1,699 Gross Decrease for Tax Positions of Prior Years (409 ) Unrecognized Tax Benefits Balance at December 31, 2017 16,683 Gross Increase for Tax Positions of Current Year 1,994 Gross Decrease for Tax Positions of Prior Years (70 ) Unrecognized Tax Benefits Balance at December 31, 2018 $ 18,607 The Company's total unrecognized tax benefits as of December 31, 2018 , 2017 and 2016 , were $18.6 million , $16.7 million and $15.4 million , respectively. An income tax benefit of $9.4 million , net of valuation allowance adjustments, would be recorded if these unrecognized tax benefits are recognized. The Company cannot reasonably estimate the amount of the unrecognized tax benefit that could be adjusted in the next twelve months. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had accrued interest and penalties of $0.1 million as of both December 31, 2018 , and December 31, 2017 , which have been recorded in long-term income taxes payable in the accompanying consolidated balance sheets. As of December 31, 2018 , the Company has concluded all U.S. federal income tax matters for the years through 2012. However, due to tax attributes, the IRS may calculate tax adjustments for subsequent years for positions taken prior to 2012. There are currently no pending income tax audits. On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was issued by the Tax Court in December 2015. In February 2016, the Commissioner appealed the Tax Court decision. On July 24, 2018, the U.S. Ninth Circuit Court of Appeals reversed the U.S. Tax Court’s decision Altera Corp. v. Commissioner; the reversal was subsequently withdrawn. The Company has reviewed this case and its impact and concluded that no adjustment to the consolidated financial statements is appropriate at this time. The Company will continue to monitor ongoing developments and potential impacts to the consolidated financial statements. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS [Text Block] | COMMITMENTS: Facilities The Company owns its main executive, administrative, manufacturing and technical offices in San Jose, California. The Company also owns a research and development facility in New Jersey and a test facility in Biel, Switzerland. The Company leases administrative office space in Singapore and Switzerland, and R&D facilities in Canada and the United Kingdom, in addition to sales offices in various countries around the world. Future minimum lease payments under all non-cancelable operating lease agreements as of December 31, 2018 , are as follows: Fiscal Year (in thousands) 2019 $ 2,310 2020 1,779 2021 1,397 2022 944 2023 691 Thereafter 994 Total minimum lease payments $ 8,115 Total rent expense amounted to $2.2 million , $2.0 million and $1.9 million in the years ended December 31, 2018 , 2017 and 2016 , respectively. Purchase Obligations At December 31, 2018 , the Company had no non-cancelable purchase obligations that were due beyond one year. |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES [Text Block] | LEGAL PROCEEDINGS AND CONTINGENCIES: From time to time in the ordinary course of business, the Company becomes involved in lawsuits, or customers and distributors may make claims against the Company. In accordance with ASC 450-10, Contingencies , the Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. On October 20, 2004, the Company filed a complaint against Fairchild Semiconductor International, Inc. and Fairchild Semiconductor Corporation (referred to collectively as “Fairchild”) in the United States District Court for the District of Delaware. In its complaint, the Company alleged that Fairchild has and is infringing four of Power Integrations’ patents pertaining to pulse width modulation (PWM) integrated circuit devices. Fairchild denied infringement and asked for a declaration from the court that it does not infringe any Power Integrations patent and that the patents are invalid. The Court issued a claim construction order on March 31, 2006 which was favorable to the Company. The Court set a first trial on the issues of infringement, willfulness and damages for October 2, 2006. At the close of the first trial, on October 10, 2006, the jury returned a verdict in favor of the Company finding all asserted claims of all four patents-in-suit to be willfully infringed by Fairchild and awarding $34.0 million in damages. Fairchild raised defenses contending that the asserted patents are invalid or unenforceable, and the Court held a second trial on these issues beginning on September 17, 2007. On September 21, 2007, the jury returned a verdict in the Company’s favor, affirming the validity of the asserted claims of all four patents-in-suit. Fairchild submitted further materials on the issue of enforceability along with various other post-trial motions, and the Company filed post-trial motions seeking a permanent injunction and increased damages and attorneys’ fees, among other things. On September 24, 2008, the Court denied Fairchild’s motion regarding enforceability and ruled that all four patents are enforceable. On December 12, 2008, the Court ruled on the remaining post-trial motions, including granting a permanent injunction, reducing the damages award to $6.1 million , granting Fairchild a new trial on the issue of willful infringement in view of an intervening change in the law, and denying the Company’s motion for increased damages and attorneys’ fees with leave to renew the motion after the resolution of the issue of willful infringement. On December 22, 2008, at Fairchild’s request, the Court temporarily stayed the permanent injunction for 90 days. On January 12, 2009, Fairchild filed a notice of appeal challenging the Court’s refusal to enter a more permanent stay of the injunction, and Fairchild filed additional motions requesting that both the Federal Circuit and the District Court extend the stay of injunction. The District Court temporarily extended the stay pending the Federal Circuit ruling on Fairchild’s pending motion, but the Federal Circuit dismissed Fairchild’s appeal and denied its motion on May 5, 2009, and the District Court issued an order on May 13, 2009 confirming the reinstatement of the permanent injunction as originally entered in December 2008. On June 22, 2009, the Court held a brief bench re-trial on the issue of willful infringement. On July 22, 2010, the Court found that Fairchild willfully infringed all four of the asserted patents, and the Court also invited briefing on enhanced damages and attorneys’ fees. Fairchild also filed a motion requesting that the Court amend its findings regarding willfulness. On January 18, 2011, the Court denied Fairchild’s request to amend the findings regarding Fairchild’s willful infringement and doubled the damages award against Fairchild but declined to award attorneys’ fees. On February 3, 2011, the Court entered final judgment in favor of the Company for a total damages award of $12.9 million . Fairchild filed a notice of appeal challenging the final judgment and a number of the underlying rulings, and the Company filed a cross-appeal seeking to increase the damages award. The appeal was argued on January 11, 2012, and the Federal Circuit issued a mixed ruling on March 26, 2013, affirming Fairchild’s infringement of certain claims that support the basis for the permanent injunction while reversing, vacating, and remanding the findings with respect to other claims, including the Company’s claim for damages. The Company filed a petition seeking Supreme Court review of the Federal Circuit’s ruling on damages issues, and the Supreme Court called for a response from Fairchild but ultimately declined to review the case. On remand, the District Court reinstated the prior findings that Fairchild willfully infringed three of the Company’s patents; the Company intends to pursue its claim for financial compensation based on Fairchild’s infringement. Moreover, following a new Supreme Court case on patent damages, the District Court on October 4, 2018 determined that the Federal Circuit’s ruling on damages in the earlier appeal had been overruled; that issue is now on appeal at the Federal Circuit, with further briefing on the impact of the Supreme Court’s ruling and the scope of the proceedings on remand expected in the coming months. 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. At the conclusion of the retrial, the jury returned a verdict in favor of the Company, finding that Fairchild willfully infringed the Company’s patents and induced infringement of the patents, awarding $24.3 million in damages on November 9, 2018. 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 challenged the verdict, and the Company is also seeking enhanced damages for Fairchild’s willful infringement, in post-trial proceedings that will take place over the coming months, with appeals to follow. On June 28, 2004, the Company filed a complaint for patent infringement in the U.S. District Court, Northern District of California, against System General Corporation (SG), 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 an International Trade Commission (ITC) investigation on the patents asserted in the District Court lawsuit, 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. 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 later Fairchild withdrew 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. 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 challenged the infringement findings and damages award. In July 2018, on appeal, the Federal Circuit affirmed the findings that Fairchild infringed both of the Company’s asserted patents but vacated the damages award and remanded the case for further proceedings. The Company has filed a petition for review by the Supreme Court seeking to overturn the Federal Circuit’s ruling, and the Court is expected to address the petition in the coming months. Regardless of the outcome of the appeal, the Company intends to pursue its claim for damages, although the claims at issue in litigation currently stand rejected in IPR proceedings, subject to appeal as discussed below. 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 filed another appeal to the Federal Circuit; in that second appeal, the Federal Circuit overturned the PTO’s rulings and confirmed the validity of the challenged claims of the Company’s patent on March 19, 2018. On September 21, 2018, the Patent Office issued a reexamination certificate confirming the validity of the claims of the patent in question, bringing this matter to a close. 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. Following a retrial on indirect infringement and damages for Fairchild’s infringement of one of the Company’s asserted patents, a jury awarded the Company $0.7 million in damages on November 15, 2018; post-trial proceedings are under way, with appeals to follow. On October 21, 2015, the Company filed a complaint for patent infringement in the United States District Court for the Northern District of California 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. Further rulings are expected from the Court in the coming months in view of additional briefing regarding the Company’s proposal to move forward with some of the Company’s claims. 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 lawsuits against Fairchild filed in October 2015 and against ON Semiconductor filed in November 2016, also discussed herein. On March 29, 2016, ON Semiconductor Corporation filed another petition requesting - an IPR of the Company’s ‘079 patent. Since that time, ON Semiconductor has filed eleven more IPR petitions requesting review of various patents that the Company has previously asserted against Fairchild as described above, and another eleven IPR petitions requesting review of various patents that the Company asserted against ON Semiconductor as described herein. 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. On September 22, 2017, the PTO rejected as obvious the claims of the Company’s ‘079 patent that were asserted in litigation and which formed the basis for the $146.5 million judgment against Fairchild; an appeal has been filed to reverse the PTO’s adverse findings, with further proceeding expected in the coming months. The PTO also instituted IPR proceedings in response to eight of ON Semiconductor’s eleven other petitions challenging patents previously asserted against Fairchild, denying institution in three cases, and the PTO has rejected a number of the Company’s patent claims in the context of these ongoing proceedings. In one case, the PTO rejected as anticipated the claims of the Company’s U.S. Patent No. 6,538,908 that were asserted in litigation against Fairchild; an appeal is under way, with briefing expected in the coming months, and further proceedings and appeals regarding other IPRs are expected in the coming months as well. Although the validity of many 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 was assigned to a new judge in San Francisco following the transfer. On December 21, 2018, the Court granted the Company’s challenge to Opticurrent’s damages expert but denied the Company’s motion for summary judgment; trial is scheduled for February 2019, with further proceedings and appeals to follow. 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 alleged that the Company has infringed and is infringing six patents and requested injunctive relief. 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 claim construction and dispositive motions. In consolidating the pleadings from the California and Arizona cases following the transfer of ON Semiconductor’s case from Arizona, ON Semiconductor asserted two additional patents, bringing the total number of patents asserted against the Company to eight in this case, and ON Semiconductor’s amended complaint also seeks a declaration of non-infringement with respect to another of the Company’s patents that was previously asserted against Fairchild Semiconductor. Further proceedings and discovery will take place over the coming months, with a trial scheduled for December of 2019. 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 alleged that the Company has infringed and is infringing six patents and requests injunctive relief. On March 9, 2017, ON Semiconductor dismissed its Texas complaint and re-filed a substantially similar complaint in the District of Delaware. After the Company filed a motion to dismiss, ON Semiconductor filed an amended complaint; the Company has answered ON Semiconductor’s complaint and asserted claims for infringement of several of the Company’s patents. Trial has been scheduled for February of 2020, with interim deadlines for discovery and dispositive motions. The Company believes it has valid defenses and intends to vigorously defend itself against ON Semiconductor’s claims. In November 2017, ON Semiconductor filed suit against the Company in Taiwan charging the Company with infringing three Taiwanese patents and seeking an injunction and damages of approximately $1.0 million . Briefing on various disputed issues is under way, and issues of jurisdiction, claim construction, validity, and infringement are expected to be addressed in the coming months, 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. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS [Text Block] | RETIREMENT PLANS: The Company sponsors a defined benefit pension plan (Pension Plan) for its Swiss subsidiary in accordance with the legal requirements of Switzerland. The plan assets, which provide benefits in the event of an employee’s retirement, death or disability, are held in legally autonomous trustee-administered funds that are subject to Swiss law. Benefits are based on the employee’s age, years of service and salary, and the plan is financed by contributions by both the employee and the Company. The net periodic benefit cost of the Pension Plan was not material to the Company's financial statements during the years ended December 31, 2018 , 2017 and 2016 . At December 31, 2018 , the projected benefit obligation was $10.2 million , the plan assets were $6.4 million and the net pension liability was $3.8 million . As of December 31, 2017 , the projected benefit obligation was $10.6 million , the plan assets were $6.8 million , and the net pension liability was $3.9 million . The Company has recorded the unfunded amount as a liability in its consolidated balance sheet at December 31, 2018 and 2017 , under the other liabilities caption. The Company expects to make contributions to the Pension Plan of approximately $0.3 million during 2019. The unrealized actuarial loss on pension benefits, net of tax, at December 31, 2018 , 2017 and 2016 was $0.7 million , $1.2 million and $1.9 million , respectively. These amounts were reflected in Note 3 under the caption accumulated other comprehensive loss. In accordance with the Compensation-Retirement Benefits Topic of ASC 715-20, Defined Benefits Plan , the Company recognizes the over-funded or under-funded status of its defined post-retirement plan as an asset or liability in its statement of financial position. The Company measured the plan assets and benefit obligations as of the date of the fiscal year-end. |
BANK LINE OF CREDIT
BANK LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
BANK LINE OF CREDIT [Text Block] | BANK LINE OF CREDIT: On July 27, 2016, the Company entered into a credit agreement with a bank (the "Credit Agreement") that provides the Company with a $75.0 million revolving line of credit to use for general corporate purposes with a $20.0 million sub-limit for the issuance of standby and trade letters of credit. The Credit Agreement was amended on April 30, 2018, to extend the termination date from July 26, 2019, to April 30, 2022, with all other terms remaining the same. The Company’s ability to borrow under the revolving line of credit is conditioned upon the Company’s compliance with specified covenants, including reporting and financial covenants, primarily a minimum cash requirement and a debt to earnings ratio. The Credit Agreement terminates on April 30, 2022; all advances under the revolving line of credit will become due on such date, or earlier in the event of a default. As of December 31, 2018 , the Company was compliant with all covenants and had no amount outstanding under the Credit Agreement. |
SELECTED QUARTERLY INFORMATION
SELECTED QUARTERLY INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY INFORMATION (Unaudited) [Text Block] | SELECTED QUARTERLY INFORMATION (Unaudited): The following tables set forth certain data from the Company's consolidated statements of income for each of the quarters in the years ended December 31, 2018 and 2017 . The unaudited quarterly consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements contained herein and include all adjustments that the Company considers necessary for a fair presentation of such information when read in conjunction with the Company’s annual audited consolidated financial statements and notes thereto appearing elsewhere in this report. The operating results for any quarter are not necessarily indicative of the results for any subsequent period or for the entire fiscal year. Three Months Ended (unaudited) Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in thousands, except per share data) 2018 2018 2018 2018 2017 2017 2017 2017 Net revenues $ 93,307 $ 110,085 $ 109,482 $ 103,081 $ 108,249 $ 111,255 $ 107,563 $ 104,688 Gross profit 48,005 57,005 56,234 53,544 54,028 55,713 53,447 50,476 Net income (loss) (1) $ 22,736 $ 17,667 $ 15,381 $ 14,200 $ (16,898 ) $ 16,506 $ 13,902 $ 14,099 Earnings (loss) per share Basic $ 0.78 $ 0.60 $ 0.52 $ 0.48 $ (0.57 ) $ 0.55 $ 0.47 $ 0.48 Diluted $ 0.77 $ 0.59 $ 0.51 $ 0.46 $ (0.57 ) $ 0.54 $ 0.46 $ 0.47 Shares used in per share calculation Basic 29,164 29,365 29,505 29,799 29,759 29,759 29,720 29,456 Diluted 29,651 29,998 30,183 30,552 29,759 30,614 30,454 30,248 _______________ (1) In December 2017 the U.S. governme nt enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Refer to Note 11, Provision (Benefit) for Income Taxes , in the Notes to Consolidated Financial Statements). |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts [Text Block] | Schedule II Valuation and Qualifying Accounts The Company maintains an allowance for the distributors’ ship and debit credits relating to the sell-through of the Company’s products. This reserve is established using the Company’s historical ship and debit amounts and levels of inventory in the distributor channels. The following is a summary of the activity in the allowance for ship and debit credits: (in thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions (1) Balance at End of Period Allowance for ship and debit credits: Year ended December 31, 2016 $ 34,415 $ 262,501 $ (258,841 ) $ 38,075 Year ended December 31, 2017 $ 38,075 $ 273,492 $ (272,081 ) $ 39,486 Year ended December 31, 2018 $ 39,486 $ 242,068 $ (241,436 ) $ 40,118 _______________ (1) Deductions relate to ship and debit credits issued which adjust the sales price from the standard distribution price to the pre-approved lower price. Refer to Note 2, Significant Accounting Policies and Recent Accounting Pronouncements , for the Company’s revenue recognition policy, including the Company’s accounting for ship and debit claims. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Segment Reporting [Policy Text Block] | 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 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. |
Principles of Consolidation [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries after elimination of all intercompany transactions and balances. |
Estimates [Policy Text Block] | Estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition and allowances for receivables and inventories. These estimates are based on historical facts and various other factors, which the Company believes to be reasonable at the time the estimates are made. However, as the effects of future events cannot be determined with precision, actual results could differ significantly from management’s estimates. |
Revenue Recognition [Policy Text Block] | 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. The Company has also elected the practical expedient under ASC 340-40-25-4 to expense commissions when incurred as the amortization period of the commission asset the Company would have otherwise recognized is less than one year. 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. |
Inventories [Policy Text Block] | Inventories Inventories (which consist of costs associated with the purchases of wafers from domestic and offshore foundries and of packaged components from offshore assembly manufacturers, as well as internal labor and overhead associated with the testing of both wafers and packaged components) are stated at the lower of cost (first-in, first-out) or market. Provisions, when required, are made to reduce excess and obsolete inventories to their estimated net realizable values. |
Income Taxes [Policy Text Block] | Income Taxes Income-tax expense is an estimate of current income taxes payable or refundable in the current fiscal year based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences and carry-forwards that are recognized for financial reporting and income tax purposes. The Company accounts for income taxes under the provisions of ASC 740, Income Taxe s. Under the provisions of ASC 740, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, utilizing the tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes valuation allowances to reduce any deferred tax assets to the amount that it estimates will more likely than not be realized based on available evidence and management’s judgment. The Company limits the deferred tax assets recognized related to certain officers’ compensation to amounts that it estimates will be deductible in future periods based upon Internal Revenue Code Section 162(m). In the event that the Company determines, based on available evidence and management judgment, that all or part of the net deferred tax assets will not be realized in the future, it would record a valuation allowance in the period the determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with the Company’s expectations could have a material impact on the Company’s results of operations and financial position. |
Business Combinations [Policy Text Block] | Business Combinations The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing at the acquisition date impacting asset valuations and liabilities assumed. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. |
Goodwill and Intangible Assets [Policy Text Block] | Goodwill and Intangible Assets Goodwill and the Company's domain name are evaluated in accordance with ASC 350-10, Goodwill and Other Intangible Assets, and an impairment analysis is conducted on an annual basis, or sooner if indicators exist for a potential impairment. In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets , long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Cash and Cash Equivalents [Policy Text Block] | Cash and Cash Equivalents The Company considers cash invested in highly liquid financial instruments with maturities of three months or less at the date of purchase to be cash equivalents. |
Marketable Securities [Policy Text Block] | Marketable Securities The Company generally holds securities until maturity; however, they may be sold under certain circumstances including, but not limited to, when necessary for the funding of acquisitions and other strategic investments. As a result the Company classifies its investment portfolio as available-for-sale. The Company classifies all investments with a maturity date greater than three months at the date of purchase as short-term marketable securities in its consolidated balance sheet. As of December 31, 2018 , and December 31, 2017 , the Company’s marketable securities consisted primarily of commercial paper, corporate bonds, government securities and/or other high-quality commercial securities. |
Employee Benefits Plan [Policy Text Block] | Employee Benefits Plan The Company sponsors a 401(k) tax-deferred savings plan for all employees in the United States who meet certain eligibility requirements. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. The Company is not required to contribute; however, the Company contributes a certain percentage of employee annual salaries on a discretionary basis, not to exceed an established threshold. The Company provided for a contribution of approximately $1.3 million , $1.2 million and $1.1 million in 2018 , 2017 and 2016 , respectively. |
Retirement Benefit Obligations (Pension) [Policy Text Block] | Retirement Benefit Obligations (Pension) The Company recognizes the over-funded or under-funded status of a defined benefit pension or post-retirement plan as an asset or liability in the accompanying consolidated balance sheets. Actuarial gains and losses are recorded in accumulated other comprehensive loss, a component of stockholders’ equity, and are amortized as a component of net periodic cost over the remaining estimated service period of participants. |
Foreign Currency Risk and Foreign Currency Translations [Policy Text Block] | Foreign Currency Risk and Foreign Currency Translation As of December 31, 2018 , the Company’s primary transactional currency was U.S. dollars; in addition, the Company holds cash in Swiss francs and euros to fund the operations of the Company’s Swiss subsidiary. The foreign exchange rate fluctuation between the U.S. dollar versus the Swiss franc and euro is recorded in other income in the consolidated statements of income. Gains and losses arising from the remeasurement of non-functional currency balances are recorded in other income in the accompanying consolidated statements of income. In each of the years ended December 31, 2018 , 2017 and 2016 , the Company realized a foreign exchange transaction loss of $0.1 million . The functional currencies of the Company’s other subsidiaries are the local currencies. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rates as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Cumulative gains and losses from the translation of the foreign subsidiaries’ financial statements have been included in stockholders’ equity. |
Warranty [Policy Text Block] | Warranty The Company generally warrants that its products will substantially conform to the published specifications for 12 months from the date of shipment. The Company’s liability is limited to either a credit equal to the purchase price or replacement of the defective part. Returns under warranty have historically been immaterial, and as a result, the Company does not record a specific warranty reserve. |
Advertising [Policy Text Block] | Advertising Advertising costs are expensed as incurred. In 2018 , advertising costs amounted to $1.2 million and were $1.3 million in each of 2017 and 2016 . |
Research and Development [Policy Text Block] | Research and Development Research and development costs are expensed as incurred. |
Indemnifications [Policy Text Block] | Indemnifications The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (DSA). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company’s products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (Customer Indemnification). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees' development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of December 31, 2018 . 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. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | The Company’s cash equivalents and investment instruments are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The type of instrument valued based on quoted market prices in active markets primarily includes money market securities. This type of instrument is generally classified within Level 1 of the fair-value hierarchy. The types of instruments valued based on other observable inputs (Level 2 of the fair-value hierarchy) include investment-grade corporate bonds and government, state, municipal and provincial obligations. Such types of investments are valued by using a multi-dimensional relational model, the inputs are primarily benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. |
Share-based Compensation [Policy Text Block] | Stock-Based Compensation The Company applies the provisions of ASC 718-10, Stock Compensation . Under the provisions of ASC 718-10, the Company recognizes the fair value of stock-based compensation in its financial statements over the requisite service period of the individual grants, which generally equals a four -year vesting period. The Company uses estimates of volatility, expected term, risk-free interest rate, dividend yield and forfeitures in determining the fair value of these awards and the amount of compensation expense to recognize. The Company uses the straight-line method to amortize all stock awards granted over the requisite service period of the award. |
COMPONENTS OF THE COMPANY'S C_2
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable [Table Text Block] | Accounts Receivable (in thousands) December 31, 2018 December 31, 2017 Accounts receivable trade $ 54,055 $ 58,718 Accrued ship and debit (40,118 ) (39,486 ) Allowance for stock rotation and rebate (2,159 ) (1,700 ) Allowance for doubtful accounts (706 ) (734 ) Total $ 11,072 $ 16,798 |
Schedule of Inventory, Current [Table Text Block] | Inventories (in thousands) December 31, 2018 December 31, 2017 Raw materials $ 41,138 $ 15,517 Work-in-process 15,612 16,765 Finished goods 24,107 24,805 Total $ 80,857 $ 57,087 |
Schedule of Prepaid Expenses and Other Current Assets [Table Text Block] | Prepaid Expenses and Other Current Assets (in thousands) December 31, 2018 December 31, 2017 Prepaid income tax $ 3,081 $ 460 Prepaid legal fees 181 213 Prepaid maintenance agreements 2,047 856 Advance to suppliers 2,157 1,211 Interest receivable 595 1,195 Other 3,854 3,823 Total $ 11,915 $ 7,758 |
Property and Equipment [Table Text Block] | Property and Equipment (in thousands) December 31, 2018 December 31, 2017 Land $ 20,288 $ 20,288 Construction-in-progress 21,696 15,353 Building and improvements 53,610 52,655 Machinery and equipment 160,028 151,269 Computer software and hardware and office furniture and fixtures 53,681 50,440 309,303 290,005 Accumulated depreciation (195,186 ) (178,300 ) Total $ 114,117 $ 111,705 |
Property and Equipment Useful Lives [Table Text Block] | Building and improvements 4-40 years Machinery and equipment 2-8 years Computer software and hardware and office furniture and fixtures 4-7 years |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the three years ended December 31, 2018 : (in thousands) Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Foreign Currency Items Total Balance at January 1, 2016 $ (97 ) $ (1,584 ) $ (170 ) $ (1,851 ) Other comprehensive loss before reclassifications (123 ) (505 ) (384 ) (1,012 ) Amounts reclassified from accumulated other comprehensive loss — 153 (1) — 153 Other comprehensive loss (123 ) (352 ) (384 ) (859 ) Balance at December 31, 2016 (220 ) (1,936 ) (554 ) (2,710 ) Other comprehensive income (loss) before reclassifications (207 ) 502 79 374 Amounts reclassified from accumulated other comprehensive loss — 197 (1) — 197 Other comprehensive loss (207 ) 699 79 571 Balance at December 31, 2017 (427 ) (1,237 ) (475 ) (2,139 ) Other comprehensive income (loss) before reclassifications 161 401 (236 ) 326 Amounts reclassified from accumulated other comprehensive loss — 124 (1) — 124 Other comprehensive income 161 525 (236 ) 450 Balance at December 31, 2018 $ (266 ) $ (712 ) $ (711 ) $ (1,689 ) _______________ (1) This component of accumulated other comprehensive loss is included in the computation of net periodic pension cost for the years ended December 31, 2018 , 2017 and 2016 . |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Marketable Securities and Investments [Table Text Block] | The fair value hierarchy of the Company’s cash equivalents and marketable securities at December 31, 2018 , and 2017 , was as follows: Fair Value Measurement at December 31, 2018 (in thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Corporate securities $ 94,451 $ — $ 94,451 Commercial paper 96,366 — 96,366 Money market funds 304 304 — Total $ 191,121 $ 304 $ 190,817 Fair Value Measurement at December 31, 2017 (in thousands) Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Corporate securities $ 179,951 $ — $ 179,951 Commercial paper 51,122 — 51,122 Government securities 9,285 — 9,285 Money market funds 195 195 — Total $ 240,553 $ 195 $ 240,358 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Marketable Securities [Abstract] | |
Available-for-sale Securities [Table Text Block] | Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2018 , were as follows: Amortized Gross Unrealized Estimated Fair (in thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 6,788 $ — $ (2 ) $ 6,786 Total 6,788 — (2 ) 6,786 Investments due in 4-12 months: Corporate securities 60,123 — (244 ) 59,879 Total 60,123 — (244 ) 59,879 Investments due in 12 months or greater: Corporate securities 27,806 2 (22 ) 27,786 Total 27,806 2 (22 ) 27,786 Total marketable securities $ 94,717 $ 2 $ (268 ) $ 94,451 Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2017 , were as follows: Amortized Gross Unrealized Estimated Fair (in thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 38,485 $ — $ (16 ) $ 38,469 Total 38,485 — (16 ) 38,469 Investments due in 4-12 months: Corporate securities 104,440 — (199 ) 104,241 Government securities 9,302 — (17 ) 9,285 Total 113,742 — (216 ) 113,526 Investments due in 12 months or greater: Corporate securities 37,436 — (195 ) 37,241 Total 37,436 — (195 ) 37,241 Total marketable securities $ 189,663 $ — $ (427 ) $ 189,236 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets [Table Text Block] | The Company does not believe there is any significant residual value associated with the following intangible assets: December 31, 2018 December 31, 2017 (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 (22,464 ) 10,806 33,270 (19,211 ) 14,059 Customer relationships 20,030 (16,520 ) 3,510 20,030 (14,621 ) 5,409 Technology licenses 1,000 (115 ) 885 — — — In-place leases — — — 660 (660 ) — Total intangible assets $ 60,251 $ (39,099 ) $ 21,152 $ 59,911 $ (34,492 ) $ 25,419 |
Schedule of expected amortization expense [Table Text Block] | The estimated future amortization expense related to definite-lived intangible assets at December 31, 2018 , is as follows: Fiscal Year Estimated Amortization (in thousands) 2019 $ 4,878 2020 3,653 2021 2,787 2022 1,709 2023 1,467 Thereafter 707 Total (1) $ 15,201 _______________ (1) The total above excludes $4.7 million of in-process R&D which will be amortized upon completion of development over the estimated useful life of the technology. |
STOCK PLANS AND SHARE BASED C_2
STOCK PLANS AND SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock-based compensation expense [Table Text Block] | The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenues $ 1,097 $ 1,321 $ 1,148 Research and development 7,688 8,496 7,309 Sales and marketing 4,729 5,197 4,489 General and administrative 8,066 9,663 7,939 Total stock-based compensation expense $ 21,580 $ 24,677 $ 20,885 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | The following table summarizes total compensation expense related to unvested awards not yet recognized, net of expected forfeitures, and the weighted average period over which it is expected to be recognized as of December 31, 2018 : Unrecognized Compensation Expense for Unvested Awards (in thousands) Weighted Average Remaining Recognition Period (in years) Long-term performance-based awards $ 2,042 0.91 Restricted stock units 34,546 3.27 Purchase plan 138 0.08 Total unrecognized compensation expense $ 36,726 |
Fair value assumptions for employees' stock purchase rights under the Purchase Plan [Table Text Block] | The fair value of employees’ stock purchase rights under the Purchase Plan was estimated using the Black-Scholes model with the following weighted-average assumptions used during the three years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Risk-free interest rates 1.94% 0.91% 0.44% Expected volatility rates 31% 30% 32% Expected dividend yield 0.89% 0.80% 0.96% Expected term of purchase rights (in years) 0.50 0.50 0.50 Weighted-average estimated fair value of purchase rights $17.33 $16.74 $12.23 |
Summary of option activity under the Plans [Table Text Block] | A summary of stock options outstanding as of December 31, 2018 , and activity during three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2016 1,030 $ 27.58 Granted — — Exercised (333 ) $ 25.41 Forfeited or expired — — Outstanding at December 31, 2016 697 $ 28.62 Granted — — Exercised (186 ) $ 27.48 Forfeited or expired — — Outstanding at December 31, 2017 511 $ 29.03 Granted — — Exercised (176 ) $ 22.60 Forfeited or expired — — Outstanding at December 31, 2018 335 $ 32.41 1.55 $ 9,578 Vested and Exercisable at December 31, 2018 335 1.55 $ 9,578 |
Summary of stock options outstanding by exercise price range [Table Text Block] | The following table summarizes the stock options outstanding at December 31, 2018 : Options Outstanding Options Exercisable (shares in thousands) Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Term (in years) Weighted Average Exercise Price Options Exercisable Weighted Average Exercise Price $17.75 - $36.95 181 0.88 $ 26.05 181 $ 26.05 $37.96 - $42.88 154 2.35 $ 39.85 154 $ 39.85 335 1.55 $ 32.41 335 $ 32.41 |
Summary of restricted stock units outstanding [Table Text Block] | A summary of RSU awards outstanding as of December 31, 2018 , and activity during the three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant-Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2016 681 $ 46.98 Granted 331 $ 46.70 Vested (270 ) $ 45.13 Forfeited (24 ) $ 47.21 Outstanding at December 31, 2016 718 $ 47.54 Granted 558 $ 60.82 Vested (284 ) $ 46.52 Forfeited (44 ) $ 50.89 Outstanding at December 31, 2017 948 $ 55.51 Granted 275 $ 62.85 Vested (296 ) $ 53.78 Forfeited (32 ) $ 59.43 Outstanding at December 31, 2018 895 $ 58.19 1.75 $ 54,575 Outstanding and expected to vest at December 31, 2018 828 1.63 $ 50,477 |
Performance Based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of performance-based awards outstanding [Table Text Block] | A summary of PSU awards outstanding as of December 31, 2018 , and activity during the three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant-Date Fair Value Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2016 11 $ 52.35 Granted 101 $ 46.26 Vested (11 ) $ 52.35 Forfeited or canceled (2 ) $ 46.87 Outstanding at December 31, 2016 99 $ 46.25 Granted 88 $ 63.99 Vested (99 ) $ 46.25 Forfeited or canceled (9 ) $ 63.99 Outstanding at December 31, 2017 79 $ 63.99 Granted 89 $ 62.87 Vested (79 ) $ 63.99 Forfeited or canceled (63 ) $ 62.87 Outstanding at December 31, 2018 26 $ 62.87 — $ 1,610 Outstanding and expected to vest at December 31, 2018 26 — $ 1,610 |
Long-Term Performance-based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of performance-based awards outstanding [Table Text Block] | A summary of PRSU awards outstanding as of December 31, 2018 , and activity during the three years then ended, is presented below: (shares and intrinsic value in thousands) Shares Weighted Average Grant-Date Fair Value Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2016 129 $ 53.75 Granted 78 $ 43.26 Vested — — Forfeited or canceled (57 ) $ 55.35 Outstanding at December 31, 2016 150 $ 47.65 Granted 71 $ 63.00 Vested — — Forfeited or canceled (37 ) $ 51.59 Outstanding at December 31, 2017 184 $ 52.80 Granted 72 $ 59.90 Vested (38 ) $ 52.45 Forfeited or canceled (5 ) $ 43.26 Outstanding at December 31, 2018 213 $ 55.48 1.50 $ 12,963 Outstanding and expected to vest at December 31, 2018 141 0.78 $ 8,611 |
SIGNIFICANT CUSTOMERS AND GEO_2
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Customers accounted for 10% or more of total net revenues [Table Text Block] | The following table discloses these customers’ percentage of net revenues for the respective years: Year Ended December 31, Customer 2018 2017 2016 Avnet 14 % 16 % 18 % Powertech Distribution Ltd. * * 10 % _______________ * Total customer revenue was less than 10% of net revenues. |
Customers representing 10% or more of accounts receivable [Table Text Block] | The following table discloses these customers’ percentage of accounts receivable: Customer December 31, December 31, Avnet 17 % 18 % Powertech Distribution Ltd. 11 % * _______________ * Total customer accounts receivable was less than 10% of net accounts receivables. |
Geographic net revenues | Geographic net revenues based on “bill to” customer locations were as follows: Year Ended December 31, (In thousands) 2018 2017 2016 United States of America $ 15,315 $ 16,647 $ 14,948 Hong Kong/China 218,752 227,335 198,858 Taiwan 43,081 50,307 50,324 Korea 33,877 38,012 41,996 Western Europe (excluding Germany) 49,834 48,230 41,214 Japan 19,897 20,769 19,767 Germany 14,403 11,558 7,563 Other 20,796 18,897 14,998 Total net revenues $ 415,955 $ 431,755 $ 389,668 |
COMMON STOCK REPURCHASES AND _2
COMMON STOCK REPURCHASES AND CASH DIVIDENDS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Common Stock Repurchases and Cash Dividends [Abstract] | |
Dividends Declared [Table Text Block] | The following table presents the quarterly dividends declared per share of the Company’s common stock for the periods indicated: Year Ended December 31, 2018 2017 2016 First Quarter $ 0.16 $ 0.14 $ 0.13 Second Quarter $ 0.16 $ 0.14 $ 0.13 Third Quarter $ 0.16 $ 0.14 $ 0.13 Fourth Quarter $ 0.16 $ 0.14 $ 0.13 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share calculation [Table Text Block] | A summary of the earnings per share calculation is as follows: Year Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Basic earnings per share: Net income $ 69,984 $ 27,609 $ 48,898 Weighted-average common shares 29,456 29,674 28,925 Basic earnings per share $ 2.38 $ 0.93 $ 1.69 Diluted earnings per share (1) : Net income $ 69,984 $ 27,609 $ 48,898 Weighted-average common shares 29,456 29,674 28,925 Effect of dilutive securities: Employee stock plans 691 871 694 Diluted weighted-average common shares 30,147 30,545 29,619 Diluted earnings per share $ 2.32 $ 0.90 $ 1.65 _______________ (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 included in the 2018, 2017 and 2016 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. |
PROVISION FOR INCOME TAXES (Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
U.S. and foreign components of income before income taxes [Table Text Block] | U.S. and foreign components of income before income taxes were: Year Ended December 31, (in thousands) 2018 2017 2016 U.S. operations $ (6,529 ) $ (6,944 ) $ (477 ) Foreign operations 66,293 67,243 50,429 Total pretax income $ 59,764 $ 60,299 $ 49,952 |
Components of provision for income taxes [Table Text Block] | The components of the provision (benefit) for income taxes are as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Current provision (benefit): Federal $ (6,382 ) $ 35,311 $ — State 4 4 — Foreign 938 1,483 1,638 (5,440 ) 36,798 1,638 Deferred provision (benefit): Federal (4,593 ) (3,640 ) (175 ) State — — (27 ) Foreign (187 ) (468 ) (382 ) (4,780 ) (4,108 ) (584 ) Total $ (10,220 ) $ 32,690 $ 1,054 |
Effective income tax rate reconciliation [Table Text Block] | The provision (benefit) for income taxes differs from the amount that would result by applying the applicable federal income tax rate to income before income taxes, as follows: Year Ended December 31, 2018 2017 2016 Provision (benefit) computed at Federal statutory rate 21.0 % 35.0 % 35.0 % Business tax credits (9.1 ) (5.7 ) (6.0 ) Stock-based compensation (2.2 ) (5.0 ) 2.2 Foreign income taxed at different rate (25.0 ) (37.3 ) (33.1 ) GILTI inclusion 10.6 — — U.S. Tax Act - transition tax (16.2 ) 54.1 — U.S. Tax Act - deferred tax asset and liability adjustment — 8.1 — Valuation allowance 2.8 2.2 1.8 Other 1.0 2.8 2.2 Total (17.1 )% 54.2 % 2.1 % |
Components of net deferred income tax asset [Table Text Block] | The components of the net deferred income tax assets (liabilities) were as follows: December 31, (in thousands) 2018 2017 Deferred tax assets: Other reserves and accruals $ 3,695 $ 979 Tax credit carry-forwards 18,052 10,442 Stock compensation 3,050 4,064 Capital losses 157 163 Net operating loss 3,144 7,059 Valuation allowance (19,955 ) (18,421 ) 8,143 4,286 Deferred tax liabilities: Depreciation (1,423 ) (1,965 ) Other (30 ) (95 ) (1,453 ) (2,060 ) Net deferred tax assets $ 6,690 $ 2,226 |
Unrecognized tax benefits rollforward [Table Text Block] | Reconciliation of the beginning and ending amount of unrecognized tax benefits: (in thousands) Unrecognized Tax Benefits Unrecognized Tax Benefits Balance at January 1, 2016 $ 13,560 Gross Increase for Tax Positions of Current Year 1,856 Gross Decrease for Tax Positions of Prior Years (23 ) Unrecognized Tax Benefits Balance at December 31, 2016 15,393 Gross Increase for Tax Positions of Current Year 1,699 Gross Decrease for Tax Positions of Prior Years (409 ) Unrecognized Tax Benefits Balance at December 31, 2017 16,683 Gross Increase for Tax Positions of Current Year 1,994 Gross Decrease for Tax Positions of Prior Years (70 ) Unrecognized Tax Benefits Balance at December 31, 2018 $ 18,607 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under all non-cancelable operating lease agreements as of December 31, 2018 , are as follows: Fiscal Year (in thousands) 2019 $ 2,310 2020 1,779 2021 1,397 2022 944 2023 691 Thereafter 994 Total minimum lease payments $ 8,115 |
SELECTED QUARTERLY INFORMATION
SELECTED QUARTERLY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following tables set forth certain data from the Company's consolidated statements of income for each of the quarters in the years ended December 31, 2018 and 2017 . The unaudited quarterly consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements contained herein and include all adjustments that the Company considers necessary for a fair presentation of such information when read in conjunction with the Company’s annual audited consolidated financial statements and notes thereto appearing elsewhere in this report. The operating results for any quarter are not necessarily indicative of the results for any subsequent period or for the entire fiscal year. Three Months Ended (unaudited) Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, (in thousands, except per share data) 2018 2018 2018 2018 2017 2017 2017 2017 Net revenues $ 93,307 $ 110,085 $ 109,482 $ 103,081 $ 108,249 $ 111,255 $ 107,563 $ 104,688 Gross profit 48,005 57,005 56,234 53,544 54,028 55,713 53,447 50,476 Net income (loss) (1) $ 22,736 $ 17,667 $ 15,381 $ 14,200 $ (16,898 ) $ 16,506 $ 13,902 $ 14,099 Earnings (loss) per share Basic $ 0.78 $ 0.60 $ 0.52 $ 0.48 $ (0.57 ) $ 0.55 $ 0.47 $ 0.48 Diluted $ 0.77 $ 0.59 $ 0.51 $ 0.46 $ (0.57 ) $ 0.54 $ 0.46 $ 0.47 Shares used in per share calculation Basic 29,164 29,365 29,505 29,799 29,759 29,759 29,720 29,456 Diluted 29,651 29,998 30,183 30,552 29,759 30,614 30,454 30,248 _______________ (1) In December 2017 the U.S. governme nt enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Refer to Note 11, Provision (Benefit) for Income Taxes , in the Notes to Consolidated Financial Statements). |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Allowance for Ship and Debit [Table Text Block] | ollowing is a summary of the activity in the allowance for ship and debit credits: (in thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions (1) Balance at End of Period Allowance for ship and debit credits: Year ended December 31, 2016 $ 34,415 $ 262,501 $ (258,841 ) $ 38,075 Year ended December 31, 2017 $ 38,075 $ 273,492 $ (272,081 ) $ 39,486 Year ended December 31, 2018 $ 39,486 $ 242,068 $ (241,436 ) $ 40,118 _______________ (1) Deductions relate to ship and debit credits issued which adjust the sales price from the standard distribution price to the pre-approved lower price. Refer to Note 2, Significant Accounting Policies and Recent Accounting Pronouncements , for the Company’s revenue recognition policy, including the Company’s accounting for ship and debit claims. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2018segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 1 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefits Plan | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1.3 | $ 1.2 | $ 1.1 |
Foreign Exchange Transactions | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ (0.1) | (0.1) | (0.1) |
Warranty | |||
Product Warranty Period | 12 months | ||
Advertising Expense | |||
Advertising Expense | $ 1.2 | $ 1.3 | $ 1.3 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS Recently Issued Accounting Pronouncements (Details) - Accounting Standards Update 2016-02 [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Minimum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 6.5 |
Maximum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 7.5 |
COMPONENTS OF THE COMPANY'S C_3
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS Components of Consolidated Balanec Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable | ||
Accounts receivable trade | $ 54,055 | $ 58,718 |
Accrued ship and debit | (40,118) | (39,486) |
Allowance for stock rotation and rebate | (2,159) | (1,700) |
Allowance for doubtful accounts | (706) | (734) |
Total | 11,072 | 16,798 |
Inventory, Net [Abstract] | ||
Raw materials | 41,138 | 15,517 |
Work-in-process | 15,612 | 16,765 |
Finished goods | 24,107 | 24,805 |
Total | 80,857 | 57,087 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid income tax | 3,081 | 460 |
Prepaid legal fees | 181 | 213 |
Prepaid maintenance agreements | 2,047 | 856 |
Advance to suppliers | 2,157 | 1,211 |
Interest receivable | 595 | 1,195 |
Other | 3,854 | 3,823 |
Total | $ 11,915 | $ 7,758 |
COMPONENTS OF THE COMPANY'S C_4
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 309,303 | $ 290,005 | |
Accumulated depreciation | 195,186 | 178,300 | |
Depreciation | $ 18,918 | $ 18,374 | $ 16,812 |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | United States of America | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 167,600 | $ 159,500 | $ 155,100 |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | THAILAND | |||
Property, Plant and Equipment [Line Items] | |||
Concentration Risk, Percentage | 12.00% | 12.00% | 12.00% |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 20,288 | $ 20,288 | |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 21,696 | 15,353 | |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 53,610 | 52,655 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 160,028 | 151,269 | |
Computer software and hardware and office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 53,681 | $ 50,440 | |
Minimum [Member] | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 4 years | 4 years | 4 years |
Minimum [Member] | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 2 years | 2 years | 2 years |
Minimum [Member] | Computer software and hardware and office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 4 years | 4 years | 4 years |
Maximum [Member] | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 40 years | 40 years | 40 years |
Maximum [Member] | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 8 years | 8 years | 8 years |
Maximum [Member] | Computer software and hardware and office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 7 years | 7 years | 7 years |
COMPONENTS OF THE COMPANY'S C_5
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | $ (1,689) | $ (2,139) | $ (2,710) | $ (1,851) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 326 | 374 | (1,012) | ||
Amounts reclassified from accumulated other comprehensive loss | 124 | 197 | 153 | ||
Other Comprehensive Income (Loss), Net of Tax | 450 | 571 | (859) | ||
Unrealized Gains and Losses on Available-for-Sale Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | (266) | (427) | (220) | (97) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 161 | (207) | (123) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 161 | (207) | (123) | ||
Defined Benefit Pension Items | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | (712) | (1,237) | (1,936) | (1,584) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 401 | 502 | (505) | ||
Amounts reclassified from accumulated other comprehensive loss | [1] | 124 | 197 | 153 | |
Other Comprehensive Income (Loss), Net of Tax | 525 | 699 | (352) | ||
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | (711) | (475) | (554) | $ (170) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (236) | 79 | (384) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | $ (236) | $ 79 | $ (384) | ||
[1] | This component of accumulated other comprehensive loss is included in the computation of net periodic pension cost for the years ended December 31, 2018, 2017 and 2016. |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments as Fair Value | $ 191,121 | $ 240,553 |
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 as Fair Value | 304 | 195 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments as Fair Value | 190,817 | 240,358 |
Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 94,451 | 179,951 |
Corporate securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 0 | 0 |
Corporate securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 94,451 | 179,951 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 96,366 | 51,122 |
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 0 | 0 |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 96,366 | 51,122 |
Foreign Government Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 9,285 | |
Foreign Government Debt [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 0 | |
Foreign Government Debt [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 9,285 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 304 | 195 |
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 304 | 195 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | $ 0 | $ 0 |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) Securities in Thousands, $ in Thousands | Dec. 31, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 94,717 | $ 189,663 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (268) | (427) |
Estimated Fair Market Value | $ 94,451 | $ 189,236 |
Weighted Average Interest Rate on Investments | 2.65% | 1.57% |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Securities | 0 | |
Investments due in 3 months or less: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 6,788 | $ 38,485 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (16) |
Estimated Fair Market Value | 6,786 | 38,469 |
Investments due in 4-12 months: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 60,123 | 113,742 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (244) | (216) |
Estimated Fair Market Value | 59,879 | 113,526 |
Investments due in 12 months or greater: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 27,806 | 37,436 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (22) | (195) |
Estimated Fair Market Value | 27,786 | $ 37,241 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | Securities | 0 | |
Corporate securities | Investments due in 3 months or less: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,788 | $ 38,485 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (16) |
Estimated Fair Market Value | 6,786 | 38,469 |
Corporate securities | Investments due in 4-12 months: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 60,123 | 104,440 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (244) | (199) |
Estimated Fair Market Value | 59,879 | 104,241 |
Corporate securities | Investments due in 12 months or greater: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 27,806 | 37,436 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (22) | (195) |
Estimated Fair Market Value | $ 27,786 | 37,241 |
Government securities | Investments due in 4-12 months: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,302 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (17) | |
Estimated Fair Market Value | $ 9,285 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Intangible Assets and Goodwill [Line Items] | ||||
Amortization of intangibles | $ 5,267 | $ 6,083 | $ 6,663 | |
Intangible Assets, Net[Abstract] | ||||
Total intangible assets, Gross | 60,251 | 59,911 | ||
Accumulated amortization | (39,099) | (34,492) | ||
Total Finite Lived Intangible Assets, Net | [1] | 15,201 | ||
Total Intangible Assets, Net | $ 21,152 | 25,419 | ||
Minimum [Member] | ||||
Intangible Assets and Goodwill [Line Items] | ||||
Useful life (in years) | 2 years | |||
Maximum [Member] | ||||
Intangible Assets and Goodwill [Line Items] | ||||
Useful life (in years) | 12 years | |||
Developed technology | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-Lived Intangible Assets, Gross | $ 33,270 | 33,270 | ||
Accumulated amortization | (22,464) | (19,211) | ||
Total Finite Lived Intangible Assets, Net | 10,806 | 14,059 | ||
Customer relationships [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 20,030 | 20,030 | ||
Accumulated amortization | (16,520) | (14,621) | ||
Total Finite Lived Intangible Assets, Net | 3,510 | 5,409 | ||
Technology licenses [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 1,000 | 0 | ||
Accumulated amortization | (115) | 0 | ||
Total Finite Lived Intangible Assets, Net | 885 | 0 | ||
Leases, Acquired-in-Place [Member] | ||||
Intangible Assets, Net[Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 0 | 660 | ||
Accumulated amortization | 0 | (660) | ||
Total Finite Lived Intangible Assets, Net | 0 | 0 | ||
Domain name | ||||
Intangible Assets, Net[Abstract] | ||||
Indefinite-lived intangible assets | 1,261 | 1,261 | ||
In Process Research and Development [Member] | ||||
Intangible Assets and Goodwill [Line Items] | ||||
Finite-lived intangible assets | 4,690 | |||
Intangible Assets, Net[Abstract] | ||||
Finite-Lived Intangible Assets, Gross | 4,690 | 4,690 | ||
Total Finite Lived Intangible Assets, Net | $ 4,690 | $ 4,690 | ||
[1] | The total above excludes $4.7 million of in-process R&D which will be amortized upon completion of development over the estimated useful life of the technology. |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Intangible Assets Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
2,019 | $ 4,878 | ||
2,020 | 3,653 | ||
2,021 | 2,787 | ||
2,022 | 1,709 | ||
2,023 | 1,467 | ||
Thereafter | 707 | ||
Total Finite Lived Intangible Assets, Net | [1] | 15,201 | |
Leases, Acquired-in-Place [Member] | |||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
Total Finite Lived Intangible Assets, Net | 0 | $ 0 | |
Developed technology | |||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
Total Finite Lived Intangible Assets, Net | 10,806 | 14,059 | |
Customer relationships [Member] | |||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
Total Finite Lived Intangible Assets, Net | 3,510 | 5,409 | |
In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |||
Total Finite Lived Intangible Assets, Net | 4,690 | $ 4,690 | |
Finite-lived intangible assets | $ 4,690 | ||
[1] | The total above excludes $4.7 million of in-process R&D which will be amortized upon completion of development over the estimated useful life of the technology. |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | |||
Goodwill | $ 91,849 | $ 91,849 | $ 91,849 |
STOCK PLANS AND SHARE BASED C_3
STOCK PLANS AND SHARE BASED COMPENSATION (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($)planspurchaseperiodsshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based compensation plans | plans | 3 | |||
Number of shares available for future issuance | shares | 1,600,000 | |||
Stock-based compensation expense | $ | $ 21,580,000 | $ 24,700,000 | $ 20,900,000 | |
2016 Incentive Award Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for future issuance under stock option and stock purchase plans | shares | 1,100,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares | 400,000 | |||
Incentive Stock Options [Member] | 2007 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price of stock options as percentage of fair market value on date of grant, minimum | 100.00% | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 4 years | |||
Stock-based compensation expense | $ | $ 16,600,000 | 15,200,000 | 13,000,000 | |
Restricted Stock Units (RSUs) [Member] | Directors Equity Compensation Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Factor used to determine the number of options/units to be granted | $ | $ 100,000 | |||
Employee Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of employee's compensation eligible for payroll deductions | 15.00% | |||
Purchase price of the purchase plan as percentage of the lower of the fair market value on the first day of each offering period or on the purchase date | 85.00% | |||
Number of purchase period in each offering period | purchaseperiods | 1 | |||
Duration of each purchase period in each offering period | 6 months | |||
Shares reserved for issuance | shares | 3,500,000 | |||
Number of shares purchased | shares | 3,100,000 | |||
Common stock reserved for future issuance under stock option and stock purchase plans | shares | 400,000 | |||
Stock-based compensation expense | $ | $ 1,600,000 | $ 1,300,000 | $ 1,300,000 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 335,000 | 511,000 | 697,000 | 1,030,000 |
Stock-based compensation expense | $ | $ 200,000 | |||
Stock Options [Member] | 2007 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 48 months | |||
Awards expiration period, maximum | 10 years | |||
Stock Options [Member] | Directors Equity Compensation Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Factor used to determine the number of options/units to be granted | $ | $ 100,000 | |||
Stock Options and Restricted Stock Units (RSUs) [Member] | Directors Equity Compensation Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Factor used to determine the number of options/units to be granted | $ | $ 100,000 |
STOCK PLANS AND SHARE BASED C_4
STOCK PLANS AND SHARE BASED COMPENSATION (Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 21,580 | $ 24,700 | $ 20,900 |
Unrecognized compensation costs | 36,726 | ||
Cost of revenues [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 1,097 | 1,321 | 1,148 |
Research and Development Expense [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 7,688 | 8,496 | 7,309 |
Selling and Marketing Expense [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 4,729 | 5,197 | 4,489 |
General and Administrative Expense [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 8,066 | 9,663 | 7,939 |
Stock Options [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense | 200 | ||
Performance Based Awards, Long-term and Short-term [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 3,400 | 8,200 | 6,400 |
Long-Term Performance-based Awards [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Unrecognized compensation costs | $ 2,042 | ||
Unrecognized compensation costs, period of recognition (in years) | 10 months 28 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense | $ 16,600 | 15,200 | 13,000 |
Unrecognized compensation costs | $ 34,546 | ||
Unrecognized compensation costs, period of recognition (in years) | 3 years 3 months 8 days | ||
Employee Stock [Member] | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 1,600 | $ 1,300 | $ 1,300 |
Unrecognized compensation costs | $ 138 | ||
Unrecognized compensation costs, period of recognition (in years) | 1 month |
STOCK PLANS AND SHARE BASED C_5
STOCK PLANS AND SHARE BASED COMPENSATION (Fair Value Assumptions) (Details) - Employee Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 1.94% | 0.91% | 0.44% |
Expected volatility rates | 31.00% | 30.00% | 32.00% |
Expected dividend yield | 0.89% | 0.80% | 0.96% |
Expected term of purchase rights (in years) | 6 months | 6 months | 6 months |
Weighted-average estimated fair value of purchase rights | $ 17.33 | $ 16.74 | $ 12.23 |
STOCK PLANS AND SHARE BASED C_6
STOCK PLANS AND SHARE BASED COMPENSATION (Option Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Option activity under the Plans | |||
Outstanding, shares, beginning of period | 511 | 697 | 1,030 |
Outstanding, weighted-average exercise price, beginning of period (per share) | $ 29.03 | $ 28.62 | $ 27.58 |
Granted, shares | 0 | 0 | 0 |
Granted, weighted-average exercise price (per share) | $ 0 | $ 0 | $ 0 |
Exercised, shares | (176) | (186) | (333) |
Exercised, weighted-average exercise price (per share) | $ 22.60 | $ 27.48 | $ 25.41 |
Forfeited or expired, shares | 0 | 0 | 0 |
Forfeited or expired, weighted-average exercise price (per share) | $ 0 | $ 0 | $ 0 |
Outstanding, shares, end of period | 335 | 511 | 697 |
Outstanding, weighted-average exercise price, end of period (per share) | $ 32.41 | $ 29.03 | $ 28.62 |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 6 months 18 days | ||
Outstanding, aggregate intrinsic value | $ 9,578 | ||
Vested and Exercisable, shares | 335 | ||
Exercisable, weighted-average remaining contractual term (in years) | 1 year 6 months 18 days | ||
Exercisable, aggregate intrinsic value | $ 9,578 | ||
Total intrinsic value of options exercised | $ 7,500 | $ 8,900 | $ 11,500 |
STOCK PLANS AND SHARE BASED C_7
STOCK PLANS AND SHARE BASED COMPENSATION (Options by Exercise Price Range) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number Outstanding | shares | 335 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 1 year 6 months 18 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $ 32.41 |
Options Vested and Exercisable, Number Vested | shares | 335 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $ 32.41 |
$17.75 - $36.95 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | 17.75 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $ 36.95 |
Options Outstanding, Number Outstanding | shares | 181 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 10 months 18 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $ 26.05 |
Options Vested and Exercisable, Number Vested | shares | 181 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $ 26.05 |
$37.96 - $42.88 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Range, Lower Range Limit | 37.96 |
Options Outstanding, Exercise Price Range, Upper Range Limit | $ 42.88 |
Options Outstanding, Number Outstanding | shares | 154 |
Options Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 4 months 5 days |
Options Outstanding, Weighted Average Exercise Price (per share) | $ 39.85 |
Options Vested and Exercisable, Number Vested | shares | 154 |
Options Vested and Exercisable, Weighted Average Exercise Price (per share) | $ 39.85 |
STOCK PLANS AND SHARE BASED C_8
STOCK PLANS AND SHARE BASED COMPENSATION (Performance-based Awards and Restricted Stock Units) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of performance-based awards shares released as a percentage of target number, minimum | 0.00% | |||
Number of performance-based awards shares released as a percentage of target number, maximum | 200.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward] | ||||
Outstanding, shares | 26 | 79 | 99 | 11 |
Granted, shares | 89 | 88 | 101 | |
Vested, shares | (79) | (99) | (11) | |
Forfeited or expired, shares | (63) | (9) | (2) | |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ 63.99 | $ 46.25 | $ 52.35 | |
Granted, weighted-average grant date fair value per share | 62.87 | 63.99 | 46.26 | |
Vested, weighted-average grant date fair value per share | 63.99 | 46.25 | 52.35 | |
Forfeited or expired, weighted-average grant date fair value per share | 62.87 | 63.99 | 46.87 | |
Outstanding, weighted-average grant date fair value per share, end of period | $ 62.87 | $ 63.99 | $ 46.25 | |
Outstanding, weighted-average remaining contractual term (in years) | 0 years | |||
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Outstanding, Aggregate Intrinsic Value | $ 1,610 | |||
Outstanding and expected to vest, shares | 26 | |||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 0 years | |||
Outstanding and expected to vest, aggregate intrinsic value | $ 1,610 | |||
Grant date fair value of awards released | $ 5,100 | $ 4,600 | $ 600 | |
Long-Term Performance-based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of performance-based awards shares released as a percentage of target number, minimum | 0.00% | |||
Number of performance-based awards shares released as a percentage of target number, maximum | 200.00% | |||
Performance based period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward] | ||||
Outstanding, shares | 213 | 184 | 150 | 129 |
Granted, shares | 72 | 71 | 78 | |
Vested, shares | (38) | 0 | 0 | |
Forfeited or expired, shares | (5) | (37) | (57) | |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ 52.80 | $ 47.65 | $ 53.75 | |
Granted, weighted-average grant date fair value per share | 59.90 | 63 | 43.26 | |
Vested, weighted-average grant date fair value per share | 52.45 | 0 | 0 | |
Forfeited or expired, weighted-average grant date fair value per share | 43.26 | 51.59 | 55.35 | |
Outstanding, weighted-average grant date fair value per share, end of period | $ 55.48 | $ 52.80 | $ 47.65 | |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 6 months | |||
Outstanding, aggregate intrinsic value | $ 12,963 | |||
Outstanding and expected to vest, shares | 141 | |||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 9 months 10 days | |||
Outstanding and expected to vest, aggregate intrinsic value | $ 8,611 | |||
Grant date fair value of awards released | $ 2,000 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards vesting period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments [Roll Forward] | ||||
Outstanding, shares | 895 | 948 | 718 | 681 |
Granted, shares | 275 | 558 | 331 | |
Vested, shares | (296) | (284) | (270) | |
Forfeited or expired, shares | (32) | (44) | (24) | |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ 55.51 | $ 47.54 | $ 46.98 | |
Granted, weighted-average grant date fair value per share | 62.85 | 60.82 | 46.70 | |
Vested, weighted-average grant date fair value per share | 53.78 | 46.52 | 45.13 | |
Forfeited or expired, weighted-average grant date fair value per share | 59.43 | 50.89 | 47.21 | |
Outstanding, weighted-average grant date fair value per share, end of period | $ 58.19 | $ 55.51 | $ 47.54 | |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 9 months | |||
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Outstanding, Aggregate Intrinsic Value | $ 54,575 | |||
Outstanding and expected to vest, shares | 828 | |||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 1 year 7 months 18 days | |||
Outstanding and expected to vest, aggregate intrinsic value | $ 50,477 | |||
Grant date fair value of awards released | $ 15,900 | $ 13,200 | $ 12,200 | |
Exercise Price Range One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding, Exercise Price Range, Lower Range Limit | $ 17.75 | |||
Options Outstanding, Exercise Price Range, Upper Range Limit | 36.95 | |||
Exercise Price Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding, Exercise Price Range, Lower Range Limit | 37.96 | |||
Options Outstanding, Exercise Price Range, Upper Range Limit | $ 42.88 |
SIGNIFICANT CUSTOMERS AND GEO_3
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES (Customer and Credit Risk Concentration) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)customers | Dec. 31, 2017USD ($)customers | Dec. 31, 2016USD ($)customers | |
Concentration Risk [Line Items] | |||||||||||
Revenues | $ | $ 93,307 | $ 110,085 | $ 109,482 | $ 103,081 | $ 108,249 | $ 111,255 | $ 107,563 | $ 104,688 | $ 415,955 | $ 431,755 | $ 389,668 |
Distributors [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ | $ 313,900 | $ 330,900 | $ 292,600 | ||||||||
Credit Concentration Risk | Accounts Receivable | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk percentage benchmark for total accounts receivable | 10.00% | 10.00% | 10.00% | 10.00% | |||||||
Number of major customers | customers | 10 | 10 | |||||||||
Concentration Risk, Percentage | 64.00% | 64.00% | |||||||||
Credit Concentration Risk | Accounts Receivable | Avnet | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration Risk, Percentage | 17.00% | 18.00% | |||||||||
Credit Concentration Risk | Accounts Receivable | Powertech Distribution Ltd. | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration Risk, Percentage | 11.00% | ||||||||||
Customer Concentration Risk | Net Revenues | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Number of major customers | customers | 10 | 10 | 10 | ||||||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | ||||||||
Concentration risk percentage of net revenue | 56.00% | 54.00% | 60.00% | ||||||||
Customer Concentration Risk | Net Revenues | Avnet | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk percentage of net revenue | 14.00% | 16.00% | 18.00% | ||||||||
Customer Concentration Risk | Net Revenues | Powertech Distribution Ltd. | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Concentration risk percentage of net revenue | 10.00% |
SIGNIFICANT CUSTOMERS AND GEO_4
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES Geographic Net Revevnues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Revenues by Geography [Line Items] | |||||||||||
Revenues | $ 93,307 | $ 110,085 | $ 109,482 | $ 103,081 | $ 108,249 | $ 111,255 | $ 107,563 | $ 104,688 | $ 415,955 | $ 431,755 | $ 389,668 |
United States of America | |||||||||||
Schedule of Revenues by Geography [Line Items] | |||||||||||
Revenues | 15,315 | 16,647 | 14,948 | ||||||||
Hong Kong/China | |||||||||||
Schedule of Revenues by Geography [Line Items] | |||||||||||
Revenues | 218,752 | 227,335 | 198,858 | ||||||||
Taiwan | |||||||||||
Schedule of Revenues by Geography [Line Items] | |||||||||||
Revenues | 43,081 | 50,307 | 50,324 | ||||||||
Korea | |||||||||||
Schedule of Revenues by Geography [Line Items] | |||||||||||
Revenues | 33,877 | 38,012 | 41,996 | ||||||||
Western Europe (excluding Germany) | |||||||||||
Schedule of Revenues by Geography [Line Items] | |||||||||||
Revenues | 49,834 | 48,230 | 41,214 | ||||||||
Japan | |||||||||||
Schedule of Revenues by Geography [Line Items] | |||||||||||
Revenues | 19,897 | 20,769 | 19,767 | ||||||||
Germany | |||||||||||
Schedule of Revenues by Geography [Line Items] | |||||||||||
Revenues | 14,403 | 11,558 | 7,563 | ||||||||
Other | |||||||||||
Schedule of Revenues by Geography [Line Items] | |||||||||||
Revenues | $ 20,796 | $ 18,897 | $ 14,998 |
COMMON STOCK REPURCHASES AND _3
COMMON STOCK REPURCHASES AND CASH DIVIDENDS Common Stock Repurchases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Stock Repurchased and Retired During Period, Value | $ 103,154 | $ 9,188 | $ 6,435 |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 110,000 | $ 30,000 | $ 60,000 |
Stock Repurchased and Retired During Period, Shares | 1,572,000 | 129,000 | 100,000 |
Stock Repurchased and Retired During Period, Value | $ 103,200 | $ 9,200 | $ 6,400 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 51,200 |
COMMON STOCK REPURCHASES AND _4
COMMON STOCK REPURCHASES AND CASH DIVIDENDS Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends Declared and Paid [Line Items] | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | ||||
Payments of Dividends | $ 18,823 | $ 16,634 | $ 15,054 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Dividends Declared and Paid [Line Items] | ||||||||||||||||
Common Stock Dividends Declared, Per Share, Payable 1st Quarter 2019 | $ 0.17 | |||||||||||||||
Common Stock Dividends Declared, Per Share, Payable 2nd Quarter 2019 | 0.17 | |||||||||||||||
Common Stock Dividends Declared, Per Share, Payable 3rd Quarter 2019 | 0.17 | |||||||||||||||
Common Stock Dividends Declared, Per Share, Payable 4th Quarter 2019 | $ 0.17 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Basic earnings per share: | |||||||||||||
Net income | $ 22,736 | [1] | $ 17,667 | $ 15,381 | $ 14,200 | $ (16,898) | $ 16,506 | $ 13,902 | $ 14,099 | $ 69,984 | $ 27,609 | $ 48,898 | |
Weighted-average common shares | 29,164,000 | 29,365,000 | 29,505,000 | 29,799,000 | 29,759,000 | 29,759,000 | 29,720,000 | 29,456,000 | 29,456,000 | 29,674,000 | 28,925,000 | ||
Basic earnings per share | $ 0.78 | $ 0.60 | $ 0.52 | $ 0.48 | $ (0.57) | $ 0.55 | $ 0.47 | $ 0.48 | $ 2.38 | $ 0.93 | $ 1.69 | ||
Diluted earnings per share: | |||||||||||||
Net income | $ 22,736 | [1] | $ 17,667 | $ 15,381 | $ 14,200 | $ (16,898) | $ 16,506 | $ 13,902 | $ 14,099 | $ 69,984 | $ 27,609 | $ 48,898 | |
Weighted-average common shares | 29,164,000 | 29,365,000 | 29,505,000 | 29,799,000 | 29,759,000 | 29,759,000 | 29,720,000 | 29,456,000 | 29,456,000 | 29,674,000 | 28,925,000 | ||
Effect of dilutive securities: | |||||||||||||
Employee stock plans | [2] | 691,000 | 871,000 | 694,000 | |||||||||
Diluted weighted average common shares | [2] | 29,651,000 | 29,998,000 | 30,183,000 | 30,552,000 | 29,759,000 | 30,614,000 | 30,454,000 | 30,248,000 | 30,147,000 | 30,545,000 | 29,619,000 | |
Diluted earnings per share | [2] | $ 0.77 | $ 0.59 | $ 0.51 | $ 0.46 | $ (0.57) | $ 0.54 | $ 0.46 | $ 0.47 | $ 2.32 | $ 0.90 | $ 1.65 | |
Antidilutive shares attributable to stock-based awards outstanding excluded from computation of diluted earnings per share | 0 | 0 | 0 | ||||||||||
[1] | In December 2017 the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Refer to Note 11, Provision (Benefit) for Income Taxes, in the Notes to Consolidated Financial Statements). | ||||||||||||
[2] | 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 included in the 2018, 2017 and 2016 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. and foreign components of income before income taxes [Abstract] | |||
U.S. operations | $ (6,529) | $ (6,944) | $ (477) |
Foreign operations | 66,293 | 67,243 | 50,429 |
INCOME BEFORE INCOME TAXES | 59,764 | 60,299 | 49,952 |
Current provision: | |||
Federal | (6,382) | 35,311 | 0 |
State | 4 | 4 | 0 |
Foreign | 938 | 1,483 | 1,638 |
Current provision | (5,440) | 36,798 | 1,638 |
Deferred provision (benefit): | |||
Federal | (4,593) | (3,640) | (175) |
State | 0 | 0 | (27) |
Foreign | (187) | (468) | (382) |
Deferred provision (benefit) | $ (4,780) | $ (4,108) | $ (584) |
Effective income tax rate reconciliation [Abstract] | |||
Provision (benefit) computed at Federal statutory rate | 21.00% | 35.00% | 35.00% |
Business tax credits | (9.10%) | (5.70%) | (6.00%) |
Stock-based compensation | (2.20%) | (5.00%) | 2.20% |
Foreign income taxed at different rate | (25.00%) | (37.30%) | (33.10%) |
GILTI inclusion | 10.60% | 0.00% | 0.00% |
U.S. Tax Act - transition tax | (16.20%) | 54.10% | 0.00% |
U.S. Tax Act - deferred tax asset and liability adjustment | 0.00% | 8.10% | 0.00% |
Valuation allowance | 2.80% | 2.20% | 1.80% |
Other | 1.00% | 2.80% | 2.20% |
Total | (17.10%) | 54.20% | 2.10% |
Components of deferred income tax asset [Abstract] | |||
Other reserves and accruals | $ 3,695 | $ 979 | |
Tax credit carry-forwards | 18,052 | 10,442 | |
Stock compensation | 3,050 | 4,064 | |
Capital losses | 157 | 163 | |
Net operating loss | 3,144 | 7,059 | |
Valuation allowance | (19,955) | (18,421) | |
Deferred tax assets, net of valuation allowance | 8,143 | 4,286 | |
Depreciation | (1,423) | (1,965) | |
Other | (30) | (95) | |
Deferred tax liabilities | (1,453) | (2,060) | |
Net deferred tax asset | 6,690 | 2,226 | |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized Tax Benefits, Balance at beginning of period | 16,683 | 15,393 | $ 13,560 |
Gross Increase for Tax Positions of Current Year | 1,994 | 1,699 | 1,856 |
Gross Decrease for Tax Positions of Prior Years | (70) | (409) | (23) |
Unrecognized Tax Benefits, Balance at end of period | 18,607 | 16,683 | 15,393 |
Unrecognized tax benefits [Abstract] | |||
Unrecognized Tax Benefits, Balance at end of period | 18,607 | 16,683 | $ 15,393 |
Income tax benefit that would be recorded if unrecognized tax benefits are recognized | 9,400 | ||
Income tax interest and penalties accrued | 100 | 100 | |
U.S. Tax Cuts and Jobs Act [Abstract] | |||
Provisional One Time Transition Tax Related to Tax Cuts and Jobs Act | 34,100 | ||
Current Federal Tax Expense Related to Impact of Tax Cuts and Jobs Act | (9,700) | $ 37,500 | |
Provisional One Time Transition Tax Related to Tax Cuts and Jobs Act, After Utilization | 6,700 | ||
Income Tax, Global Intangible Low Tax Income, Before Credits | 6,300 | ||
Tax Benefit, Initial Recognition of Global Intangible Low-Taxed Income Deferred Tax Asset | 2,300 | ||
State and Local Jurisdiction [Member] | California Taxing Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 54,700 | ||
Research Tax Credit Carryforward [Member] | Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 7,200 | ||
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | California Taxing Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 24,300 | ||
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | New Jersey Division of Taxation [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 900 | ||
Research Tax Credit Carryforward [Member] | Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | $ 2,600 | ||
Earliest Tax Year [Member] | Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Expiration Date | Jan. 1, 2033 | ||
Earliest Tax Year [Member] | State and Local Jurisdiction [Member] | California Taxing Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2032 | ||
Earliest Tax Year [Member] | Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | New Jersey Division of Taxation [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Expiration Date | Jan. 1, 2026 | ||
Earliest Tax Year [Member] | Research Tax Credit Carryforward [Member] | Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Expiration Date | Jan. 1, 2030 |
COMMITMENTS (Details)
COMMITMENTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,018 | $ 2,310,000 | ||
2,019 | 1,779,000 | ||
2,020 | 1,397,000 | ||
2,021 | 944,000 | ||
2,022 | 691,000 | ||
Thereafter | 994,000 | ||
Total minimum lease payments | 8,115,000 | ||
Rent expense, net | 2,200,000 | $ 2,000,000 | $ 1,900,000 |
Non-cancelable purchase obligations | $ 0 |
LEGAL PROCEEDINGS AND CONTING_2
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions | Nov. 15, 2018USD ($) | Nov. 09, 2018USD ($) | Sep. 22, 2017patents | Dec. 27, 2016patent | Dec. 12, 2016patents | 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 | Nov. 30, 2017USD ($) | Jan. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015patent | Feb. 28, 2014USD ($)patentspatent | Dec. 31, 2012patents | Apr. 30, 2012patents | May 31, 2010patents | Dec. 31, 2018patentspatent |
Patent Inter Partes Review Petition Request One [Domain] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of Patents in Inter Partes Review Petition Request | 11 | ||||||||||||||||||||||||||||
Counterclaims [Member] | Patent Infringement Claim Three Counterclaim [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 2 | 1 | |||||||||||||||||||||||||||
Counterclaims [Member] | Patent Infringment Claim Five [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Litigation Settlement, Amount Awarded from Other Party | $ | $ 0.7 | ||||||||||||||||||||||||||||
Loss Contingency, Damages Awarded, Value | $ | $ 2.4 | ||||||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 5 | ||||||||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Two [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 2 | ||||||||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Two Counterclaim [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Loss Contingency, Patents Found Not Infringed, Number | 1 | ||||||||||||||||||||||||||||
Number of Patents Found Invalid | 1 | ||||||||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Four [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Loss Contingency, Patents Found Not Infringed, Number | 4 | ||||||||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringment Claim Five [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | patent | 1 | ||||||||||||||||||||||||||||
Judicial Ruling [Member] | Patent Inter Partes Review Petition Request One [Domain] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of Patents Denied Inter Partes Review Proceedings | 3 | ||||||||||||||||||||||||||||
Number of Patents in Inter Partes Review Proceedings | 8 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim One [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Period for petition for further stay of permanent injunction | 90 days | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Two [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 3 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Two Counterclaim [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Litigation Settlement, Amount Awarded from Other Party | $ | $ 24.3 | ||||||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | ||||||||||||||||||||||||||||
Number of patents remaining in infringement claims | 2 | 2 | 2 | ||||||||||||||||||||||||||
Percent of revenue impacted by patents involved in litigation | 0.50% | ||||||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 3 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Three Counterclaim [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringment Claim Five [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | ||||||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 4 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringment Claim Six [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 2 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Seven [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 1 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Eight [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 6 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Nine [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | patent | 6 | ||||||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 8 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Ten [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 6 | ||||||||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Eleven [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Loss Contingency, Damages Sought, Value | $ | $ 1 | ||||||||||||||||||||||||||||
Positive Outcome of Litigation [Member] | Patent Infringement Claim One [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 4 | ||||||||||||||||||||||||||||
Litigation Settlement, Amount Awarded from Other Party | $ | $ 12.9 | $ 6.1 | $ 34 | ||||||||||||||||||||||||||
Positive Outcome of Litigation [Member] | Patent Infringement Claim Three [Member] | |||||||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||
Litigation Settlement, Amount Awarded from Other Party | $ | $ 146.5 | $ 139.8 | $ 105 | ||||||||||||||||||||||||||
Number of Patents in Infringement Case, Unenforceable | patent | 1 | 1 | |||||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 2 | ||||||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 2 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation | $ 3.8 | $ 3.9 | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 6.4 | 6.8 | |
Business Acquisition, Purchase Price Allocation, Projected Benefit Obligation (Asset), Net of Plan Assets Acquired | 10.2 | 10.6 | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 0.3 | ||
Defined Benefit Pension Items | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ 0.7 | $ 1.2 | $ 1.9 |
BANK LINE OF CREDIT (Details)
BANK LINE OF CREDIT (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 27, 2016 |
Line of Credit Facility [Line Items] | ||
Credit Agreement, maximum borrowing capacity | $ 75 | |
Line of credit, amount outstanding | $ 0 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit Agreement, maximum borrowing capacity | $ 20 |
SELECTED QUARTERLY INFORMATIO_2
SELECTED QUARTERLY INFORMATION (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Revenues | $ 93,307 | $ 110,085 | $ 109,482 | $ 103,081 | $ 108,249 | $ 111,255 | $ 107,563 | $ 104,688 | $ 415,955 | $ 431,755 | $ 389,668 | ||
Gross Profit | 48,005 | 57,005 | 56,234 | 53,544 | 54,028 | 55,713 | 53,447 | 50,476 | 214,788 | 213,664 | 192,191 | ||
Net income (loss) | $ 22,736 | [1] | $ 17,667 | $ 15,381 | $ 14,200 | $ (16,898) | $ 16,506 | $ 13,902 | $ 14,099 | $ 69,984 | $ 27,609 | $ 48,898 | |
Earnings per share | |||||||||||||
Basic | $ 0.78 | $ 0.60 | $ 0.52 | $ 0.48 | $ (0.57) | $ 0.55 | $ 0.47 | $ 0.48 | $ 2.38 | $ 0.93 | $ 1.69 | ||
Diluted | [2] | $ 0.77 | $ 0.59 | $ 0.51 | $ 0.46 | $ (0.57) | $ 0.54 | $ 0.46 | $ 0.47 | $ 2.32 | $ 0.90 | $ 1.65 | |
Shares used in per share calculation | |||||||||||||
Basic | 29,164 | 29,365 | 29,505 | 29,799 | 29,759 | 29,759 | 29,720 | 29,456 | 29,456 | 29,674 | 28,925 | ||
Diluted | [2] | 29,651 | 29,998 | 30,183 | 30,552 | 29,759 | 30,614 | 30,454 | 30,248 | 30,147 | 30,545 | 29,619 | |
[1] | In December 2017 the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Refer to Note 11, Provision (Benefit) for Income Taxes, in the Notes to Consolidated Financial Statements). | ||||||||||||
[2] | 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 included in the 2018, 2017 and 2016 calculations those shares that were contingently issuable upon the satisfaction of the performance conditions as of the end of the respective periods. |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Ship and Debit Credits [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 39,486 | $ 38,075 | $ 34,415 | |
Charged to Costs and Expenses | 242,068 | 273,492 | 262,501 | |
Deductions | [1] | (241,436) | (272,081) | (258,841) |
Balance at End of Period | $ 40,118 | $ 39,486 | $ 38,075 | |
[1] | Deductions relate to ship and debit credits issued which adjust the sales price from the standard distribution price to the pre-approved lower price. Refer to Note 2, Significant Accounting Policies and Recent Accounting Pronouncements, for the Company’s revenue recognition policy, including the Company’s accounting for ship and debit claims. |