Document and Entity Information
Document and Entity Information - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Document and Entity Information | |||
Title of 12(b) Security | Common Stock | ||
Entity Address, Address Line One | 5245 Hellyer Avenue | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Registrant Name | POWER INTEGRATIONS, INC. | ||
Entity Central Index Key | 0000833640 | ||
Current Fiscal Year End Date | --12-31 | ||
Trading Symbol | POWI | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 000-23441 | ||
Document Fiscal Year Focus | 2022 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Entity Listing, Par Value Per Share | $ 0.001 | ||
Entity Common Stock, Shares Outstanding | 56,986,742 | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | San Jose, California | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.3 | ||
Entity Tax Identification Number | 94-3065014 | ||
City Area Code | 408 | ||
Local Phone Number | 414-9200 | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95138-1002 | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 105,372 | $ 158,117 |
Short-term marketable securities | 248,441 | 372,235 |
Accounts receivable, net | 20,836 | 41,393 |
Inventories | 135,420 | 99,266 |
Prepaid expenses and other current assets | 15,004 | 15,804 |
Total current assets | 525,073 | 686,815 |
PROPERTY AND EQUIPMENT, net | 176,681 | 179,824 |
INTANGIBLE ASSETS, net | 6,597 | 9,012 |
GOODWILL | 91,849 | 91,849 |
DEFERRED TAX ASSETS | 19,034 | 16,433 |
OTHER ASSETS | 20,862 | 30,554 |
Total assets | 840,096 | 1,014,487 |
CURRENT LIABILITIES: | ||
Accounts payable | 30,088 | 43,721 |
Accrued payroll and related expenses | 14,778 | 15,492 |
Taxes payable | 938 | 1,210 |
Other accrued liabilities | 12,572 | 11,898 |
Total current liabilities | 58,376 | 72,321 |
LONG-TERM INCOME TAXES PAYABLE | 15,757 | 15,280 |
OTHER LIABILITIES | 10,747 | 14,854 |
Total liabilities | 84,880 | 102,455 |
COMMITMENTS AND CONTINGENCIES (Notes 11, 12 and 13) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.001 par value Authorized - 140,000 shares Outstanding - 56,961 and 59,913 shares in 2022 and 2021, respectively | 24 | 28 |
Additional paid-in capital | 0 | 162,301 |
Accumulated other comprehensive loss | (7,344) | (3,737) |
Retained earnings | 762,536 | 753,440 |
Total stockholders' equity | 755,216 | 912,032 |
Total liabilities and stockholders' equity | $ 840,096 | $ 1,014,487 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 140,000 | 140,000 |
Common stock, shares outstanding | 56,961 | 59,913 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
NET REVENUES | $ 651,138 | $ 703,277 | $ 488,318 |
COST OF REVENUES | 284,231 | 342,638 | 244,728 |
GROSS PROFIT | 366,907 | 360,639 | 243,590 |
OPERATING EXPENSES: | |||
Research and development | 93,894 | 84,933 | 81,711 |
Sales and marketing | 62,574 | 60,808 | 54,497 |
General and administrative | 28,897 | 39,840 | 36,895 |
Other operating expenses, net | 1,130 | 0 | 0 |
Total operating expenses | 186,495 | 185,581 | 173,103 |
INCOME FROM OPERATIONS | 180,412 | 175,058 | 70,487 |
OTHER INCOME | 3,014 | 1,077 | 4,764 |
INCOME BEFORE INCOME TAXES | 183,426 | 176,135 | 75,251 |
PROVISION FOR INCOME TAXES | 12,575 | 11,722 | 4,075 |
NET INCOME | $ 170,851 | $ 164,413 | $ 71,176 |
EARNINGS PER SHARE: | |||
Basic (in dollars per share) | $ 2.96 | $ 2.73 | $ 1.19 |
Diluted (in dollars per share) | $ 2.93 | $ 2.67 | $ 1.17 |
SHARES USED IN PER SHARE CALCULATION: | |||
Basic (in shares) | 57,801 | 60,327 | 59,657 |
Diluted (in shares) | 58,371 | 61,467 | 60,845 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 170,851 | $ 164,413 | $ 71,176 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments, net of $0 tax in 2022, 2021 and 2020 | (985) | (486) | (183) |
Unrealized gain (loss) on marketable securities, net of $0 tax in 2022, 2021 and 2020 | (4,158) | (2,055) | 307 |
Unrealized actuarial gain on pension benefits, net of tax of ($271), ($334) and ($308) in 2022, 2021 and 2020, respectively | 1,536 | 967 | 843 |
Total other comprehensive income (loss) | (3,607) | (1,574) | 967 |
TOTAL COMPREHENSIVE INCOME | $ 167,244 | $ 162,839 | $ 72,143 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on marketable securities, tax | 0 | 0 | 0 |
Amortization of defined benefit pension items, tax | $ (271) | $ (334) | $ (308) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total |
Beginning Balance (in shares) at Dec. 31, 2019 | 58,862 | ||||
Beginning balance at Dec. 31, 2019 | $ 28 | $ 152,117 | $ (3,130) | $ 575,531 | $ 724,546 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 963 | ||||
Issuance of common stock under employee stock option and stock award plans | 4,608 | 4,608 | |||
Repurchase of common stock (in shares) | (63) | ||||
Repurchase of common stock | (2,636) | (2,636) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 148 | ||||
Issuance of common stock under employee stock purchase plan | 5,919 | 5,919 | |||
Stock-based compensation expense related to employee stock options and awards | 28,952 | 28,952 | |||
Stock-based compensation expense related to employee stock purchases | 1,960 | 1,960 | |||
Payment of dividends to stockholders | (25,081) | (25,081) | |||
Unrealized actuarial gain on pension benefits | 843 | 843 | |||
Unrealized (loss) gain on marketable securities | 307 | 307 | |||
Foreign currency translation adjustment | (183) | (183) | |||
Net income | 71,176 | 71,176 | |||
Ending Balance (in shares) at Dec. 31, 2020 | 59,910 | ||||
Ending balance at Dec. 31, 2020 | $ 28 | 190,920 | (2,163) | 621,626 | 810,411 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 780 | ||||
Issuance of common stock under employee stock option and stock award plans | 1,644 | 1,644 | |||
Repurchase of common stock (in shares) | (878) | ||||
Repurchase of common stock | $ (1) | (73,937) | (73,938) | ||
Issuance of common stock under employee stock purchase plan (in shares) | 101 | ||||
Issuance of common stock under employee stock purchase plan | $ 1 | 6,065 | 6,066 | ||
Stock-based compensation expense related to employee stock options and awards | 35,647 | 35,647 | |||
Stock-based compensation expense related to employee stock purchases | 1,962 | 1,962 | |||
Payment of dividends to stockholders | (32,599) | (32,599) | |||
Unrealized actuarial gain on pension benefits | 967 | 967 | |||
Unrealized (loss) gain on marketable securities | (2,055) | (2,055) | |||
Foreign currency translation adjustment | (486) | (486) | |||
Net income | 164,413 | 164,413 | |||
Ending Balance (in shares) at Dec. 31, 2021 | 59,913 | ||||
Ending balance at Dec. 31, 2021 | $ 28 | 162,301 | (3,737) | 753,440 | 912,032 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock option and stock award plans (in shares) | 731 | ||||
Issuance of common stock under employee stock option and stock award plans | 257 | 257 | |||
Repurchase of common stock (in shares) | (3,770) | ||||
Repurchase of common stock | $ (4) | (190,827) | (120,263) | (311,094) | |
Issuance of common stock under employee stock purchase plan (in shares) | 87 | ||||
Issuance of common stock under employee stock purchase plan | 5,905 | 5,905 | |||
Stock-based compensation expense related to employee stock options and awards | 20,494 | 20,494 | |||
Stock-based compensation expense related to employee stock purchases | $ 1,870 | 1,870 | |||
Payment of dividends to stockholders | (41,492) | (41,492) | |||
Unrealized actuarial gain on pension benefits | 1,536 | 1,536 | |||
Unrealized (loss) gain on marketable securities | (4,158) | (4,158) | |||
Foreign currency translation adjustment | (985) | (985) | |||
Net income | 170,851 | 170,851 | |||
Ending Balance (in shares) at Dec. 31, 2022 | 56,961 | ||||
Ending balance at Dec. 31, 2022 | $ 24 | $ (7,344) | $ 762,536 | $ 755,216 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 170,851 | $ 164,413 | $ 71,176 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 34,930 | 31,454 | 23,743 |
Amortization of intangibles | 2,415 | 3,494 | 4,359 |
Loss on disposal of property and equipment | 1,371 | 3,105 | 525 |
Stock-based compensation expense | 22,364 | 37,609 | 30,912 |
Amortization of premium on marketable securities | 3,292 | 1,590 | 705 |
Deferred income taxes | (2,566) | (13,240) | (592) |
Increase (decrease) in accounts receivable allowance for credit losses | 690 | 18 | (336) |
Change in operating assets and liabilities: | |||
Accounts receivable | 19,867 | (5,501) | (11,300) |
Inventories | (36,154) | 3,612 | (12,498) |
Prepaid expenses and other assets | 7,343 | 4,326 | 9,153 |
Accounts payable | (3,836) | 4,067 | 5,697 |
Taxes payable and accrued liabilities | (5,224) | (4,079) | 4,095 |
Net cash provided by operating activities | 215,343 | 230,868 | 125,639 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (39,211) | (47,272) | (70,598) |
Proceeds from sale of property and equipment | 1,202 | 35 | 651 |
Purchases of marketable securities | (55,820) | (554,018) | (109,703) |
Proceeds from sales and maturities of marketable securities | 172,165 | 368,457 | 151,385 |
Net cash provided by (used in) investing activities | 78,336 | (232,798) | (28,265) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Issuance of common stock under employee stock plans | 6,162 | 7,710 | 10,527 |
Repurchase of common stock | (311,094) | (73,938) | (2,636) |
Payments of dividends to stockholders | (41,492) | (32,599) | (25,081) |
Net cash used in financing activities | (346,424) | (98,827) | (17,190) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (52,745) | (100,757) | 80,184 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 158,117 | 258,874 | 178,690 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 105,372 | 158,117 | 258,874 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Unpaid property and equipment | 1,082 | 10,879 | 5,937 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid (received) for income taxes, net | $ 17,880 | $ 25,644 | $ (1,973) |
THE COMPANY
THE COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements Abstract | |
THE COMPANY | 1. 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 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, battery-powered tools, industrial controls, and “home-automation,” 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. 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. 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 gigawatts) such as industrial motors, solar- and wind-power systems, electric vehicles and high-voltage DC transmission systems. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | 2. 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 the high-voltage power conversion markets. 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, allowances for receivables, inventories, litigation and income taxes. 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 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 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 Goodwill and Intangible Assets Goodwill and the Company’s domain name are evaluated in accordance with ASC 350-10, Goodwill and Other Intangible Assets, In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets 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, 2022 and 2021, 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 $2.0 million, $1.9 million and $1.8 million in 2022, 2021 and 2020, 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, 2022, 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. The Company recognized an immaterial foreign exchange loss in 2022 while recognizing losses of $0.6 million and $0.5 million in 2021 and 2020, respectively. The functional currencies of the Company’s other subsidiaries are the local currencies. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rates as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Cumulative gains and losses from the translation of the foreign subsidiaries’ financial statements have been included accumulated other comprehensive loss in stockholders’ equity. Warranty The Company generally warrants that its products will substantially conform to the published specifications for 12 months Advertising Advertising costs are expensed as incurred and amounted to $1.4 million, $1.3 million and $1.2 million in 2022, 2021 and 2020, respectively. 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, 2022. 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. Recent Accounting Pronouncements The Company has considered all recent accounting pronouncements issued, but not yet effective, and does not expect any to have a material effect on the Company’s consolidated financial statements. |
COMPONENTS OF THE COMPANY'S CON
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures Abstract | |
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS | 3. COMPONENTS OF THE COMPANY’S CONSOLIDATED BALANCE SHEETS: Accounts Receivable December 31, December 31, (In thousands) 2022 2021 Accounts receivable trade $ 78,914 $ 87,503 Allowance for ship and debit (53,184) (41,599) Allowance for stock rotation and rebate (3,759) (4,066) Allowance for credit losses (1,135) (445) Total $ 20,836 $ 41,393 The Company maintains an allowance for estimated credit losses resulting from the inability of customers to make required payments. This allowance is established using estimates formulated by the Company’s management based upon factors such as the composition of the accounts receivable aging, historical losses, changes in payments patterns, customer creditworthiness, and current economic trends. Receivables determined to be uncollectible are written off and deducted from the allowance. Allowance for Credit Losses Year Ended December 31, (In thousands) 2022 2021 Beginning balance $ (445) $ (427) Provision for credit loss expense (1,859) (1,023) Receivables written off 49 74 Recoveries collected 1,120 931 Ending balance $ (1,135) $ (445) Inventories December 31, December 31, (In thousands) 2022 2021 Raw materials $ 75,355 $ 24,131 Work-in-process 15,440 31,788 Finished goods 44,625 43,347 Total $ 135,420 $ 99,266 Property and Equipment December 31, December 31, (In thousands) 2022 2021 Land $ 22,166 $ 22,187 Construction-in-progress 19,195 22,661 Building and improvements 89,704 81,027 Machinery and equipment 253,308 235,066 Computer software and hardware and office furniture and fixtures 62,574 57,926 Total 446,947 418,867 Less: Accumulated depreciation (270,266) (239,043) Property and equipment, net $ 176,681 $ 179,824 Depreciation expense for property and equipment for fiscal years ended December 31, 2022, 2021 and 2020, was approximately $34.9 million, $31.5 million and $23.7 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, 2022, 2021 and 2020, was approximately $190.3 million, $174.6 million and $167.0 million, respectively. In 2022, 2021 and 2020, approximately 12%, 14% and 14%, respectively, of total property and equipment (excluding accumulated depreciation) was held in Thailand by one of the Company’s subcontractors. Also in both 2022 and 2021, approximately 15% and in 2020, 14% of total property and equipment (excluding accumulated depreciation) was held by one of the Company’s subcontractors in Malaysia. 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, 2022: Unrealized Gains and Losses on Foreign Available-for-Sale Defined Benefit Currency (In thousands) Securities Pension Items Items Total Balance at January 1, 2020 $ 583 $ (2,484) $ (1,229) $ (3,130) Other comprehensive income (loss) before reclassifications 307 636 (183) 760 Amounts reclassified from accumulated other comprehensive loss — 207 (1) — 207 Other comprehensive income 307 843 (183) 967 Balance at December 31, 2020 890 (1,641) (1,412) (2,163) Other comprehensive income (loss) before reclassifications (2,055) 800 (486) (1,741) Amounts reclassified from accumulated other comprehensive loss — 167 (1) — 167 Other comprehensive loss (2,055) 967 (486) (1,574) Balance at December 31, 2021 (1,165) (674) (1,898) (3,737) Other comprehensive income (loss) before reclassifications (4,158) 1,459 (985) (3,684) Amounts reclassified from accumulated other comprehensive loss — 77 (1) — 77 Other comprehensive loss (4,158) 1,536 (985) (3,607) Balance at December 31, 2022 $ (5,323) $ 862 $ (2,883) $ (7,344) (1) This component of accumulated other comprehensive loss is included in the computation of net periodic pension cost for the years ended December 31, 2022, 2021 and 2020. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures Abstract | |
FAIR VALUE MEASUREMENTS | 4. FAIR VALUE MEASUREMENTS: ASC 820-10, Fair Value Measurements 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 commercial paper. Such types of investments are valued by using a multi-dimensional relational model, the inputs are primarily benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The Company 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, 2022 and 2021, was as follows: Fair Value Measurement at December 31, 2022 Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs (In thousands) Total Fair Value (Level 1) (Level 2) Commercial paper $ 58,683 $ — $ 58,683 Corporate securities 248,441 — 248,441 Money market funds 363 363 — Total $ 307,487 $ 363 $ 307,124 Fair Value Measurement at December 31, 2021 Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs (In thousands) Total Fair Value (Level 1) (Level 2) Commercial paper $ 172,237 $ — $ 172,237 Corporate securities 282,540 — 282,540 Money market funds 29,793 29,793 — Total $ 484,570 $ 29,793 $ 454,777 The Company did not transfer any investments between level 1 and level 2 of the fair value hierarchy in the years ended December 31, 2022 and 2021. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities Abstract | |
MARKETABLE SECURITIES | 5. MARKETABLE SECURITIES: Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2022, were as follows: Amortized Gross Unrealized Estimated Fair (In thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 21,803 $ — $ (135) $ 21,668 Total 21,803 — (135) 21,668 Investments due in 4-12 months: Corporate securities 173,833 — (4,019) 169,814 Total 173,833 — (4,019) 169,814 Investments due in 12 months or greater: Corporate securities 58,128 71 (1,240) 56,959 Total 58,128 71 (1,240) 56,959 Total marketable securities $ 253,764 $ 71 $ (5,394) $ 248,441 Accrued interest receivable was $1.2 million at December 31, 2022 and was recorded within prepaid expenses and other current assets on the consolidated balance sheet. Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2021, were as follows: Amortized Gross Unrealized Estimated Fair (In thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Commercial paper $ 89,965 $ — $ — $ 89,965 Corporate securities 7,285 — (3) 7,282 Total 97,250 — (3) 97,247 Investments due in 4-12 months: Corporate securities 25,054 — (42) 25,012 Total 25,054 — (42) 25,012 Investments due in 12 months or greater: Corporate securities 251,096 21 (1,141) 249,976 Total 251,096 21 (1,141) 249,976 Total marketable securities $ 373,400 $ 21 $ (1,186) $ 372,235 Accrued interest receivable was $1.5 million at December 31, 2021 and was recorded within prepaid expenses and other current assets on the consolidated balance sheet. As of December 31, 2022 and 2021 the Company had no marketable securities classified as available-for-sale (excluding cash equivalents) in a continuous unrealized loss position for which an allowance for credit losses was recorded. The following table summarizes marketable securities classified as available-for-sale (excluding cash equivalents) in a continuous unrealized loss position for which an allowance for credit losses was not recorded at December 31, 2022 and December 31, 2021: Less Than 12 Months 12 Months or Longer Total Estimated Gross Estimated Gross Estimated Gross Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized (In thousands) Value Losses Value Losses Value Losses December 31, 2022 Corporate securities $ 45,047 $ (662) $ 191,443 $ (4,732) $ 236,490 $ (5,394) Total marketable securities $ 45,047 $ (662) $ 191,443 $ (4,732) $ 236,490 $ (5,394) Less Than 12 Months 12 Months or Longer Total Estimated Gross Estimated Gross Estimated Gross Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized (In thousands) Value Losses Value Losses Value Losses December 31, 2021 Corporate securities $ 274,380 $ (1,186) $ — $ — $ 274,380 $ (1,186) Total marketable securities $ 274,380 $ (1,186) $ — $ — $ 274,380 $ (1,186) The weighted average interest rate of investments at December 31, 2022 and 2021, was approximately 2.08% and 0.45%, respectively. In the years ended December 31, 2022 and 2021, no unrealized losses on marketable securities were recognized in income. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 6. GOODWILL AND INTANGIBLE ASSETS: The carrying amount of goodwill as of December 31, 2022 and 2021 was $91.8 million; there were no changes to goodwill in either 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 www.power.com December 31, 2022 December 31, 2021 Accumulated Accumulated (In thousands) Gross Amortization Net Gross Amortization Net Domain name $ 1,261 $ — $ 1,261 $ 1,261 $ — $ 1,261 Developed technology 37,960 (33,531) 4,429 37,960 (31,603) 6,357 Customer relationships 16,700 (16,700) — 16,700 (16,458) 242 Technology licenses 1,926 (1,019) 907 1,926 (774) 1,152 Total intangible assets $ 57,847 $ (51,250) $ 6,597 $ 57,847 $ (48,835) $ 9,012 The estimated future amortization expense related to definite-lived intangible assets at December 31, 2022, is as follows: Estimated Amortization Fiscal Year (In thousands) 2023 $ 2,173 2024 1,279 2025 832 2026 687 Thereafter 365 Total $ 5,336 |
STOCK PLANS AND SHARE BASED COM
STOCK PLANS AND SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK PLANS AND SHARE BASED COMPENSATION | 7. STOCK PLANS AND SHARE BASED COMPENSATION: Stock Plans As of December 31, 2022, 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. 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. 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 2016 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, 2022, 3.0 million awards have been issued, net of forfeitures or cancellations, and approximately 4.0 million shares of common stock remain available for future grant under the 2016 Plan. 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 Shares Reserved As of December 31, 2022, the Company had approximately 4.9 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 The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, (In thousands) 2022 2021 2020 Cost of revenues $ 1,132 $ 2,359 $ 1,963 Research and development 10,428 12,127 10,378 Sales and marketing 6,035 7,630 6,290 General and administrative 4,769 15,493 12,281 Total stock-based compensation expense $ 22,364 $ 37,609 $ 30,912 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, 2022: Unrecognized Compensation Weighted Average Expense for Unvested Remaining Recognition Awards Period (In thousands) (In years) Long-term performance-based awards $ — — Restricted stock units 46,724 2.83 Purchase plan 182 0.08 Total unrecognized compensation expense $ 46,906 Stock-based compensation expense in the year ended December 31, 2022, was approximately $22.4 million, comprising approximately $23.2 million related to restricted stock units, $1.9 million related to the Company’s Purchase Plan and a $2.7 million credit to expense related to performance-based awards and long-term performance-based awards. Stock-based compensation expense in the year ended December 31, 2021, was approximately $37.6 million, comprising approximately $19.9 million related to restricted stock units, $15.7 million related to performance-based awards and $2.0 million related to the Company’s Purchase Plan. Stock-based compensation expense in the year ended December 31, 2020, was approximately $30.9 million, comprising approximately $18.7 million related to restricted stock units, $10.2 million related to performance-based awards and $2.0 million related to the Company’s Purchase Plan. 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, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Risk-free interest rates 1.71 % 0.07 % 0.90 % Expected volatility rates 41 % 41 % 47 % Expected dividend yield 0.89 % 0.57 % 0.78 % Expected term of purchase rights (in years) 0.50 0.50 0.50 Weighted-average estimated fair value of purchase rights $ 21.63 $ 23.92 $ 15.73 No options were granted or remain outstanding 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, 2022, and activity during the three years then ended, is presented below: Weighted- Average Weighted-Average Remaining Aggregate Shares Grant Date Fair Contractual Term Intrinsic Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2020 121 $ 35.06 Granted 150 $ 46.31 Vested (121) $ 35.06 Forfeited or canceled — — Outstanding at December 31, 2020 150 $ 46.27 Granted 105 $ 84.48 Vested (150) $ 46.27 Forfeited or canceled (1) $ 85.01 Outstanding at December 31, 2021 104 $ 84.47 Granted 119 $ 79.91 Vested (104) $ 84.48 Forfeited or canceled (85) $ 79.89 Outstanding at December 31, 2022 34 $ 79.94 — $ 2,465 Outstanding and expected to vest at December 31, 2022 34 — $ 2,465 In February 2022, it was determined that approximately 104,000 shares subject to the PSUs granted in 2021 vested in aggregate; the shares were released to the Company’s employees and executives in the first quarter of 2022. The grant-date fair value of PSU awards released, which were fully vested, in the years ended December 31, 2022, 2021 and 2020, was approximately $8.8 million, $6.9 million and $4.2 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 fair value of these PRSUs 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 Expense associated with these awards, net of estimated forfeitures, is recorded throughout the year based on an assessment of the expected achievement of the performance targets. 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, 2022, and activity during the three years then ended, is presented below: Weighted-Average Aggregate Weighted-Average Remaining Intrinsic Shares Grant Date Fair Contractual Term Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2020 287 $ 32.03 Granted 152 $ 49.67 Vested — — Forfeited or canceled (138) $ 29.95 Outstanding at December 31, 2020 301 $ 41.90 Granted 103 $ 82.92 Vested (6) $ 29.94 Forfeited or canceled (15) $ 40.05 Outstanding at December 31, 2021 383 $ 53.14 Granted 110 $ 78.96 Vested (135) $ 34.09 Forfeited or canceled (122) $ 49.68 Outstanding at December 31, 2022 236 $ 77.82 1.52 $ 16,895 Outstanding and expected to vest at December 31, 2022 23 — $ 1,653 In February 2022, it was determined that approximately 135,000 shares subject to the PRSUs granted in 2019 vested in aggregate; the shares were released to the Company’s executives in the first quarter of 2022. , 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, 2022, and activity during the three years then ended, is presented below: Weighted-Average Aggregate Weighted-Average Remaining Intrinsic Shares Grant Date Fair Contractual Term Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2020 1,719 $ 31.33 Granted 439 $ 44.82 Vested (599) $ 30.25 Forfeited (41) $ 36.77 Outstanding at December 31, 2020 1,518 $ 35.51 Granted 271 $ 83.79 Vested (546) $ 35.03 Forfeited (99) $ 39.85 Outstanding at December 31, 2021 1,144 $ 46.81 Granted 519 $ 76.01 Vested (481) $ 44.70 Forfeited (86) $ 60.02 Outstanding at December 31, 2022 1,096 $ 60.52 1.57 $ 78,629 Outstanding and expected to vest at December 31, 2022 1,022 1.47 $ 73,277 The grant-date fair value of RSUs vested in the years ended December 31, 2022, 2021 and 2020, was approximately $21.5 million, $19.1 million and $18.1 million, respectively. |
SIGNIFICANT CUSTOMERS AND GEOGR
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES | 12 Months Ended |
Dec. 31, 2022 | |
Significant Customers and Geographic Net Revenues | |
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES | 8. SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES: Customer Concentration The Company’s top ten customers accounted for approximately 76%, 78% and 62% of revenues in 2022, 2021 and 2020, 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 2022, 2021 and 2020 were $457.7 million, $525.7 million and $367.7 million, respectively. Direct sales to OEMs and power-supply manufacturers accounted for the remainder. The following customers represented 10% or more of the Company’s net revenues for the respective years Year Ended December 31, Customer 2022 2021 2020 Avnet 31 % 30 % 19 % Honestar Technologies Co., Ltd. 11 % 16 % 11 % 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 years ended December 31, 2022 and 2021, 87% and 86% of accounts receivable were concentrated with the Company’s top ten customers, respectively. The following customers represented 10% or more of accounts receivable: December 31, December 31, Customer 2022 2021 Avnet 42 % 45 % Salcomp Group 13 % * Flextronics Group 11 % * 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) 2022 2021 2020 United States of America $ 25,500 $ 17,238 $ 11,065 Hong Kong/China 356,865 446,980 306,938 India 33,159 25,961 19,845 Taiwan 19,789 25,991 21,650 Korea 52,074 59,501 40,059 Western Europe (excluding Germany) 32,429 35,835 33,564 Japan 34,924 25,101 17,453 Germany 52,876 32,664 23,242 Other 43,522 34,006 14,502 Total net revenues $ 651,138 $ 703,277 $ 488,318 |
COMMON STOCK REPURCHASES AND CA
COMMON STOCK REPURCHASES AND CASH DIVIDENDS | 12 Months Ended |
Dec. 31, 2022 | |
Equity Abstract | |
COMMON STOCK REPURCHASES AND CASH DIVIDENDS | 9. COMMON STOCK REPURCHASES AND CASH DIVIDENDS: Common Stock Repurchases From time to time the Company’s board of directors has authorized the use of funds to repurchase shares of the Company’s common stock. In October 2018, the Company’s board of director’s authorized the use of $80.0 million for the repurchase of the Company’s common stock, and in each of April 2021 and October 2021 Authorization of future stock repurchase programs is at the discretion of the Company’s 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, 2022 2021 2020 First Quarter $ 0.18 $ 0.13 $ 0.095 Second Quarter $ 0.18 $ 0.13 $ 0.105 Third Quarter $ 0.18 $ 0.13 $ 0.110 Fourth Quarter $ 0.18 $ 0.15 $ 0.110 The Company paid a total of approximately $41.5 million, $32.6 million and $25.1 million in cash dividends during 2022, 2021 and 2020, respectively. In October 2019, the Company’s board of directors declared a dividend of $0.095 per share to be paid to stockholders of record at the end of each quarter in 2020. In April 2020, the Company’s board of directors raised the cash dividends with the declaration of three cash dividends of $0.105 per share (in lieu of the $0.095 per share previously announced in October 2019) to be paid to stockholders of record at the end of each of the second, third and fourth quarter in 2020. In July 2020, the Company’s board of directors raised the cash dividends further with the declaration of two cash dividends of $0.11 per share (in lieu of the $0.105 per share announced in April 2020) to be paid to stockholders of record at the end of each of the third and fourth quarter in 2020. In January 2021, 2022 In January 2022, the Company’s board of directors raised the quarterly cash dividend by an additional $0.03 per share with the declaration of four cash dividends of $0.18 per share (in lieu of the $0.15 per share announced in October 2021) to be paid to stockholders of record at the end of each quarter in 2022. In February 2023, |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share Abstract | |
EARNINGS PER SHARE | 10. 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) 2022 2021 2020 Basic earnings per share: Net income $ 170,851 $ 164,413 $ 71,176 Weighted-average common shares 57,801 60,327 59,657 Basic earnings per share $ 2.96 $ 2.73 $ 1.19 Diluted earnings per share: (1) Net income $ 170,851 $ 164,413 $ 71,176 Weighted-average common shares 57,801 60,327 59,657 Effect of dilutive awards: Employee stock plans 570 1,140 1,188 Diluted weighted-average common shares 58,371 61,467 60,845 Diluted earnings per share $ 2.93 $ 2.67 $ 1.17 (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 2022, 2021 and 2020 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, 2022, 2021 and 2020, 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, 2022 | |
Income Tax Disclosure Abstract | |
PROVISION FOR INCOME TAXES | 11. PROVISION FOR INCOME TAXES: Income Taxes The Company accounts for income taxes under the provisions of ASC 740, Income Taxes U.S. and foreign components of income (loss) before income taxes were: Year Ended December 31, (In thousands) 2022 2021 2020 U.S. operations $ 17,250 $ 241 $ (6,252) Foreign operations 166,176 175,894 81,503 Total income before income taxes $ 183,426 $ 176,135 $ 75,251 The components of the provision for income taxes are as follows: Year Ended December 31, (In thousands) 2022 2021 2020 Current provision (benefit): Federal $ 19,740 $ 23,648 $ 2,788 State 2 2 (181) Foreign 1,079 1,608 1,677 20,821 25,258 4,284 Deferred provision (benefit): Federal (7,962) (11,449) 348 State — — — Foreign (284) (2,087) (557) (8,246) (13,536) (209) Total $ 12,575 $ 11,722 $ 4,075 The provision 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, 2022 2021 2020 Provision (benefit) computed at Federal statutory rate 21.0 % 21.0 % 21.0 % Business tax credits (3.7) (3.6) (7.4) Stock-based compensation (1.6) (0.6) (0.1) Foreign income taxed at different rate (18.5) (23.8) (22.0) GILTI inclusion 8.5 13.1 10.7 Valuation allowance 1.3 1.3 2.6 Other (0.1) (0.7) 0.6 Total 6.9 % 6.7 % 5.4 % The Company’s effective tax rate is impacted by the geographic distribution of the Company’s world-wide earnings in lower-tax jurisdictions, federal research tax credits and the recognition of excess tax benefits related to share-based payments. These benefits were partially offset by foreign income subject to U.S. tax, known as global intangible low-taxed income. The Company’s primary jurisdiction where foreign earnings are derived is the Cayman Islands, which is a non-taxing jurisdiction. Income earned in other foreign jurisdictions was not material. The Company has not been granted any incentivized tax rates and does not operate under any tax holidays in any jurisdiction. The components of the net deferred income tax assets (liabilities) were as follows: December 31, (In thousands) 2022 2021 Deferred tax assets: Capitalized R&D costs $ 20,666 $ 13,226 Other reserves and accruals 2,516 3,967 Tax credit carry-forwards 26,154 23,647 Stock compensation 1,559 1,278 Capital losses 150 159 Net operating loss 2,217 2,370 Other 439 692 Valuation allowance (29,036) (27,085) 24,665 18,254 Deferred tax liabilities: Depreciation (5,596) (1,750) (5,596) (1,750) Net deferred tax assets $ 19,069 $ 16,504 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, 2022, the Company continues to maintain a valuation allowance primarily as a result of 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, 2022, the Company had utilized all of its federal research and development tax credit carryforwards. As of December 31, 2022, the Company had California research and development tax credit carryforwards of approximately $37.9 million (there is no expiration of research and development tax credit carryforwards for the state of California) and California net operating losses of $43.5 million which will begin to expire in 2032 2030 2026 The Tax Act signed into law on December 22, 2017, generally allows companies to repatriate accumulated foreign earnings without incurring additional U.S. federal taxes beginning after December 31, 2017. Local foreign and U.S. states taxes may still be incurred upon repatriation. The Company has not provided for U.S. taxes on its undistributed earnings of foreign subsidiaries. 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: Unrecognized (In thousands) Tax Benefits Unrecognized Tax Benefits Balance at January 1, 2020 $ 19,049 Gross Increase for Tax Positions of Current Year 2,002 Gross Decrease for Tax Positions of Prior Years — Unrecognized Tax Benefits Balance at December 31, 2020 21,051 Gross Increase for Tax Positions of Current Year 2,068 Gross Decrease for Tax Positions of Prior Years (1,756) Unrecognized Tax Benefits Balance at December 31, 2021 21,363 Gross Increase for Tax Positions of Current Year 2,188 Gross Decrease for Tax Positions of Prior Years (165) Unrecognized Tax Benefits Balance at December 31, 2022 $ 23,386 The Company’s total unrecognized tax benefits as of December 31, 2022, 2021 and 2020 were $23.4 million, $21.4 million and $21.1 million, respectively. An income tax benefit of $11.7 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 $1.2 million and $0.8 million as of December 31, 2022 and 2021, respectively, which have been recorded in long-term income taxes payable in the accompanying consolidated balance sheets. As of December 31, 2022, the Company has concluded all U.S. federal income tax matters for the years through 2012. However, due to tax attributes, the IRS may calculate tax adjustments for subsequent years for positions taken prior to 2012. The California Franchise Tax Board has started an audit for the Company’s tax years 2018 and 2019, it is currently ongoing. |
LEASES AND COMMITMENTS
LEASES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2022 | |
LEASES AND COMMITMENTS [Abstract] | |
LEASES AND COMMITMENTS | 12. LEASES AND COMMITMENTS: Facilities and Leases 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, a design center in Germany and a multipurpose office building in Switzerland. The Company’s leases consist of operating leases for administrative office spaces, research-and-development facilities and sales offices in various countries around the world. The Company determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which are accounted for as a single lease component. Total lease expense was $3.3 million, $3.3 million and $2.7 million in the years ended December 31, 2022, 2021 and 2020, respectively, while short-term and variable lease expenses were not material during these periods. Balance sheet information related to leases was as follows: December 31, December 31, (In thousands) Balance Sheet Classification 2022 2021 Right-of-use assets Operating lease assets Other assets $ 9,153 $ 11,887 Lease liabilities Current operating lease liabilities Other accrued liabilities $ 2,895 $ 3,050 Non-current operating lease liabilities Other liabilities 5,831 8,371 Total $ 8,726 $ 11,421 Initial lease terms are determined at commencement and may include options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. Remaining lease terms range from one some of which include options to extend for up to five years, and some of which include options to terminate within one year. Leases with an initial term of twelve months or less are not recorded on the balance sheet. As the Company’s leases do not provide an implicit rate, the present value of future lease payments is determined using the Company’s incremental borrowing rate based on information available at commencement date. December 31, December 31, Lease term and discount rate 2022 2021 Weighted average remaining lease term 4.0 years 4.2 years Weighted average discount rate 4.6 % 3.3 % Supplemental cash flows information related to leases was as follow: Year Ended December 31, (In thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,245 $ 3,538 Right-of-use assets obtained in exchange for new operating lease obligations $ 1,795 $ 5,225 Future minimum lease payments under all non-cancelable lease agreements as of December 31, 2022, are as follows: December 31, (In thousands) 2022 2023 $ 3,268 2024 2,551 2025 1,360 2026 975 2027 689 Thereafter 798 Total future minimum lease payments 9,641 Less imputed interest (915) Total $ 8,726 Purchase Obligations At December 31, 2022, 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, 2022 | |
Commitments and Contingencies Disclosure Abstract | |
LEGAL PROCEEDINGS AND CONTINGENCIES | 13. 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 On May 16, 2022, the Company entered into a binding settlement agreement (the “Settlement Agreement”) with Opticurrent, LLC, pursuant to which the parties agreed to end all outstanding legal disputes. Neither party granted any licenses to the other. Pursuant to the Settlement Agreement, the Company and Opticurrent have dismissed, withdrawn, and/or terminated all legal proceedings between the parties and the Company agreed to and subsequently paid Opticurrent $2.9 million. On January 6, 2020, the Company filed a complaint against CogniPower LLC in the United States District Court for the District of Delaware for infringement of two of the Company’s patents and seeking a declaration of non-infringement with respect to patents that CogniPower had charged the Company’s customers with infringing , Company believes it has strong claims and defenses, and intends to vigorously defend itself against CogniPower’s claims against the Company’s technology, with appeals to follow if necessary. On October 31, 2022, Waverly Licensing LLC filed a complaint against the Company in the United States District Court for the Western District of Texas. In its complaint, Waverly alleges that the Company is infringing one patent pertaining to charging a battery-operated device. Because the Company believes that Waverly’s complaint was improperly filed in the wrong court, the Company has filed a motion to dismiss, and on November 30, 2022, the Company filed a complaint against Waverly Licensing LLC and related entities IP Edge LLC, Mavexar LLC, and Array IP LLC in the United States District Court for the District of Delaware seeking a declaration of non-infringement with respect to a patent that Waverly has charged the Company with infringing. The Company expects a resolution of its motion to dismiss Waverly’s Texas complaint in the coming months. These lawsuits are in their earliest stages, but the Company believes it has strong claims and defenses, and intends to vigorously defend itself against Waverly’s claims against the Company’s technology, with appeals to follow if necessary. The Company is unable to predict the outcome of legal proceedings with certainty, and there can be no assurance that the Company will prevail in the above-mentioned unsettled litigations. These litigations, whether or not determined in the Company’s 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 litigations disclosed above, however adverse determinations in litigation could result in monetary losses, the loss of proprietary rights, subject the Company to significant liabilities, require the Company 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, 2022 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | 14. 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, 2022, 2021 and 2020. At December 31, 2022, the projected benefit obligation was $12.1 million, the plan assets were $8.2 million and the net pension liability was $3.9 million. As of December 31, 2021, the projected benefit obligation was $15.5 million, the plan assets were $9.5 million, and the net pension liability was $6.0 million. The Company has recorded the unfunded amount as a liability in its consolidated balance sheet at December 31, 2022 and 2021, under the other liabilities caption. The Company expects to make contributions to the Pension Plan of approximately $0.4 million during 2023. The accumulated unrealized actuarial activity on pension benefits, net of tax, at December 31, 2022, 2021 and 2020 was $0.9 million gain, $0.7 million loss and $1.6 million loss, 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 |
BANK LINE OF CREDIT
BANK LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
BANK LINE OF CREDIT | 15. BANK LINE OF CREDIT: On July 27, 2016, the Company entered into a credit agreement with Wells Fargo Bank, National Association (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 Credit Agreement was amended on June 7, 2021, to provide an alternate borrowing rate as a replacement for LIBOR and extend the termination date from April 30, 2022, to June 7, 2026, 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 June 7, 2026; all advances under the revolving line of credit will become due on such date, or earlier in the event of a default. The Company was compliant with all covenants and had no advances outstanding under the Credit Agreement as of December 31, 2022. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | 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: Balance at Beginning Balance at End (In thousands) of Period Additions Deductions (1) of Period Allowance for ship and debit credits: Year ended December 31, 2020 $ 33,475 $ 257,765 $ (264,805) $ 26,435 Year ended December 31, 2021 $ 26,435 $ 311,443 $ (296,279) $ 41,599 Year ended December 31, 2022 $ 41,599 $ 241,817 $ (230,232) $ 53,184 (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 (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Segment Reporting | Segment Reporting The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of integrated circuits and related components for use primarily in the high-voltage power conversion markets. 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 | 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 | 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, allowances for receivables, inventories, litigation and income taxes. 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 | Revenue Recognition The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers 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 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 inventories to their estimated net realizable values. |
Income Taxes | 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 |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and the Company’s domain name are evaluated in accordance with ASC 350-10, Goodwill and Other Intangible Assets, In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers cash invested in highly liquid financial instruments with maturities of three months or less at the date of purchase to be cash equivalents. |
Marketable Securities | Marketable Securities The Company generally holds securities until maturity; however, they may be sold under certain circumstances including, but not limited to, when necessary for the funding of acquisitions 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, 2022 and 2021, the Company’s marketable securities consisted primarily of commercial paper, corporate bonds, government securities and/or other high-quality commercial securities. |
Employee Benefits Plan | 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 $2.0 million, $1.9 million and $1.8 million in 2022, 2021 and 2020, respectively. |
Retirement Benefit Obligations (Pension) | 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 | Foreign Currency Risk and Foreign Currency Translation As of December 31, 2022, 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. The Company recognized an immaterial foreign exchange loss in 2022 while recognizing losses of $0.6 million and $0.5 million in 2021 and 2020, respectively. The functional currencies of the Company’s other subsidiaries are the local currencies. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rates as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Cumulative gains and losses from the translation of the foreign subsidiaries’ financial statements have been included accumulated other comprehensive loss in stockholders’ equity. |
Warranty | Warranty The Company generally warrants that its products will substantially conform to the published specifications for 12 months |
Advertising | Advertising Advertising costs are expensed as incurred and amounted to $1.4 million, $1.3 million and $1.2 million in 2022, 2021 and 2020, respectively. |
Research and Development | Research and Development Research and development costs are expensed as incurred. |
Indemnifications | Indemnifications The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (DSA). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company’s products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (Customer Indemnification). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees’ development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of December 31, 2022. 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has considered all recent accounting pronouncements issued, but not yet effective, and does not expect any to have a material effect on the Company’s consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Polici
FAIR VALUE MEASUREMENTS (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures Abstract | |
Fair Value of Financial Instruments | 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 commercial paper. Such types of investments are valued by using a multi-dimensional relational model, the inputs are primarily benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. |
STOCK PLANS AND SHARE BASED C_2
STOCK PLANS AND SHARE BASED COMPENSATION (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company applies the provisions of ASC 718-10, Stock Compensation |
COMPONENTS OF THE COMPANY'S C_2
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures Abstract | |
Schedule of Accounts Receivable | Accounts Receivable December 31, December 31, (In thousands) 2022 2021 Accounts receivable trade $ 78,914 $ 87,503 Allowance for ship and debit (53,184) (41,599) Allowance for stock rotation and rebate (3,759) (4,066) Allowance for credit losses (1,135) (445) Total $ 20,836 $ 41,393 |
Schedule of Allowance for Credit Losses | Allowance for Credit Losses Year Ended December 31, (In thousands) 2022 2021 Beginning balance $ (445) $ (427) Provision for credit loss expense (1,859) (1,023) Receivables written off 49 74 Recoveries collected 1,120 931 Ending balance $ (1,135) $ (445) |
Schedule of Inventories | Inventories December 31, December 31, (In thousands) 2022 2021 Raw materials $ 75,355 $ 24,131 Work-in-process 15,440 31,788 Finished goods 44,625 43,347 Total $ 135,420 $ 99,266 |
Property and Equipment | Property and Equipment December 31, December 31, (In thousands) 2022 2021 Land $ 22,166 $ 22,187 Construction-in-progress 19,195 22,661 Building and improvements 89,704 81,027 Machinery and equipment 253,308 235,066 Computer software and hardware and office furniture and fixtures 62,574 57,926 Total 446,947 418,867 Less: Accumulated depreciation (270,266) (239,043) Property and equipment, net $ 176,681 $ 179,824 |
Property and Equipment 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 |
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss for the three years ended December 31, 2022: Unrealized Gains and Losses on Foreign Available-for-Sale Defined Benefit Currency (In thousands) Securities Pension Items Items Total Balance at January 1, 2020 $ 583 $ (2,484) $ (1,229) $ (3,130) Other comprehensive income (loss) before reclassifications 307 636 (183) 760 Amounts reclassified from accumulated other comprehensive loss — 207 (1) — 207 Other comprehensive income 307 843 (183) 967 Balance at December 31, 2020 890 (1,641) (1,412) (2,163) Other comprehensive income (loss) before reclassifications (2,055) 800 (486) (1,741) Amounts reclassified from accumulated other comprehensive loss — 167 (1) — 167 Other comprehensive loss (2,055) 967 (486) (1,574) Balance at December 31, 2021 (1,165) (674) (1,898) (3,737) Other comprehensive income (loss) before reclassifications (4,158) 1,459 (985) (3,684) Amounts reclassified from accumulated other comprehensive loss — 77 (1) — 77 Other comprehensive loss (4,158) 1,536 (985) (3,607) Balance at December 31, 2022 $ (5,323) $ 862 $ (2,883) $ (7,344) (1) This component of accumulated other comprehensive loss is included in the computation of net periodic pension cost for the years ended December 31, 2022, 2021 and 2020. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures Abstract | |
Fair Value of Cash Equivalents and Marketable Securities | The fair value hierarchy of the Company’s cash equivalents and marketable securities at December 31, 2022 and 2021, was as follows: Fair Value Measurement at December 31, 2022 Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs (In thousands) Total Fair Value (Level 1) (Level 2) Commercial paper $ 58,683 $ — $ 58,683 Corporate securities 248,441 — 248,441 Money market funds 363 363 — Total $ 307,487 $ 363 $ 307,124 Fair Value Measurement at December 31, 2021 Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs (In thousands) Total Fair Value (Level 1) (Level 2) Commercial paper $ 172,237 $ — $ 172,237 Corporate securities 282,540 — 282,540 Money market funds 29,793 29,793 — Total $ 484,570 $ 29,793 $ 454,777 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities Abstract | |
Available-for-sale Securities | Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2022, were as follows: Amortized Gross Unrealized Estimated Fair (In thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 21,803 $ — $ (135) $ 21,668 Total 21,803 — (135) 21,668 Investments due in 4-12 months: Corporate securities 173,833 — (4,019) 169,814 Total 173,833 — (4,019) 169,814 Investments due in 12 months or greater: Corporate securities 58,128 71 (1,240) 56,959 Total 58,128 71 (1,240) 56,959 Total marketable securities $ 253,764 $ 71 $ (5,394) $ 248,441 Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2021, were as follows: Amortized Gross Unrealized Estimated Fair (In thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Commercial paper $ 89,965 $ — $ — $ 89,965 Corporate securities 7,285 — (3) 7,282 Total 97,250 — (3) 97,247 Investments due in 4-12 months: Corporate securities 25,054 — (42) 25,012 Total 25,054 — (42) 25,012 Investments due in 12 months or greater: Corporate securities 251,096 21 (1,141) 249,976 Total 251,096 21 (1,141) 249,976 Total marketable securities $ 373,400 $ 21 $ (1,186) $ 372,235 |
Available-for-sale Securities in an Unrealized Loss Position | Less Than 12 Months 12 Months or Longer Total Estimated Gross Estimated Gross Estimated Gross Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized (In thousands) Value Losses Value Losses Value Losses December 31, 2022 Corporate securities $ 45,047 $ (662) $ 191,443 $ (4,732) $ 236,490 $ (5,394) Total marketable securities $ 45,047 $ (662) $ 191,443 $ (4,732) $ 236,490 $ (5,394) Less Than 12 Months 12 Months or Longer Total Estimated Gross Estimated Gross Estimated Gross Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized (In thousands) Value Losses Value Losses Value Losses December 31, 2021 Corporate securities $ 274,380 $ (1,186) $ — $ — $ 274,380 $ (1,186) Total marketable securities $ 274,380 $ (1,186) $ — $ — $ 274,380 $ (1,186) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets | December 31, 2022 December 31, 2021 Accumulated Accumulated (In thousands) Gross Amortization Net Gross Amortization Net Domain name $ 1,261 $ — $ 1,261 $ 1,261 $ — $ 1,261 Developed technology 37,960 (33,531) 4,429 37,960 (31,603) 6,357 Customer relationships 16,700 (16,700) — 16,700 (16,458) 242 Technology licenses 1,926 (1,019) 907 1,926 (774) 1,152 Total intangible assets $ 57,847 $ (51,250) $ 6,597 $ 57,847 $ (48,835) $ 9,012 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense related to definite-lived intangible assets at December 31, 2022, is as follows: Estimated Amortization Fiscal Year (In thousands) 2023 $ 2,173 2024 1,279 2025 832 2026 687 Thereafter 365 Total $ 5,336 |
STOCK PLANS AND SHARE BASED C_3
STOCK PLANS AND SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based Compensation Expense | The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, (In thousands) 2022 2021 2020 Cost of revenues $ 1,132 $ 2,359 $ 1,963 Research and development 10,428 12,127 10,378 Sales and marketing 6,035 7,630 6,290 General and administrative 4,769 15,493 12,281 Total stock-based compensation expense $ 22,364 $ 37,609 $ 30,912 |
Share-based Payment Arrangement, Nonvested Award, Cost | 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, 2022: Unrecognized Compensation Weighted Average Expense for Unvested Remaining Recognition Awards Period (In thousands) (In years) Long-term performance-based awards $ — — Restricted stock units 46,724 2.83 Purchase plan 182 0.08 Total unrecognized compensation expense $ 46,906 |
Fair value assumptions for employees' stock purchase rights under the Purchase Plan | 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, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Risk-free interest rates 1.71 % 0.07 % 0.90 % Expected volatility rates 41 % 41 % 47 % Expected dividend yield 0.89 % 0.57 % 0.78 % Expected term of purchase rights (in years) 0.50 0.50 0.50 Weighted-average estimated fair value of purchase rights $ 21.63 $ 23.92 $ 15.73 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSU awards outstanding as of December 31, 2022, and activity during the three years then ended, is presented below: Weighted-Average Aggregate Weighted-Average Remaining Intrinsic Shares Grant Date Fair Contractual Term Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2020 1,719 $ 31.33 Granted 439 $ 44.82 Vested (599) $ 30.25 Forfeited (41) $ 36.77 Outstanding at December 31, 2020 1,518 $ 35.51 Granted 271 $ 83.79 Vested (546) $ 35.03 Forfeited (99) $ 39.85 Outstanding at December 31, 2021 1,144 $ 46.81 Granted 519 $ 76.01 Vested (481) $ 44.70 Forfeited (86) $ 60.02 Outstanding at December 31, 2022 1,096 $ 60.52 1.57 $ 78,629 Outstanding and expected to vest at December 31, 2022 1,022 1.47 $ 73,277 |
Performance Based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of performance-based awards outstanding | A summary of PSU awards outstanding as of December 31, 2022, and activity during the three years then ended, is presented below: Weighted- Average Weighted-Average Remaining Aggregate Shares Grant Date Fair Contractual Term Intrinsic Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2020 121 $ 35.06 Granted 150 $ 46.31 Vested (121) $ 35.06 Forfeited or canceled — — Outstanding at December 31, 2020 150 $ 46.27 Granted 105 $ 84.48 Vested (150) $ 46.27 Forfeited or canceled (1) $ 85.01 Outstanding at December 31, 2021 104 $ 84.47 Granted 119 $ 79.91 Vested (104) $ 84.48 Forfeited or canceled (85) $ 79.89 Outstanding at December 31, 2022 34 $ 79.94 — $ 2,465 Outstanding and expected to vest at December 31, 2022 34 — $ 2,465 |
Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of performance-based awards outstanding | A summary of PRSU awards outstanding as of December 31, 2022, and activity during the three years then ended, is presented below: Weighted-Average Aggregate Weighted-Average Remaining Intrinsic Shares Grant Date Fair Contractual Term Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2020 287 $ 32.03 Granted 152 $ 49.67 Vested — — Forfeited or canceled (138) $ 29.95 Outstanding at December 31, 2020 301 $ 41.90 Granted 103 $ 82.92 Vested (6) $ 29.94 Forfeited or canceled (15) $ 40.05 Outstanding at December 31, 2021 383 $ 53.14 Granted 110 $ 78.96 Vested (135) $ 34.09 Forfeited or canceled (122) $ 49.68 Outstanding at December 31, 2022 236 $ 77.82 1.52 $ 16,895 Outstanding and expected to vest at December 31, 2022 23 — $ 1,653 |
SIGNIFICANT CUSTOMERS AND GEO_2
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Concentration Risk [Line Items] | |
Geographic Net Revenues | Year Ended December 31, (In thousands) 2022 2021 2020 United States of America $ 25,500 $ 17,238 $ 11,065 Hong Kong/China 356,865 446,980 306,938 India 33,159 25,961 19,845 Taiwan 19,789 25,991 21,650 Korea 52,074 59,501 40,059 Western Europe (excluding Germany) 32,429 35,835 33,564 Japan 34,924 25,101 17,453 Germany 52,876 32,664 23,242 Other 43,522 34,006 14,502 Total net revenues $ 651,138 $ 703,277 $ 488,318 |
Net revenue | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The following customers represented 10% or more of the Company’s net revenues for the respective years Year Ended December 31, Customer 2022 2021 2020 Avnet 31 % 30 % 19 % Honestar Technologies Co., Ltd. 11 % 16 % 11 % |
Accounts receivable | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The following customers represented 10% or more of accounts receivable: December 31, December 31, Customer 2022 2021 Avnet 42 % 45 % Salcomp Group 13 % * Flextronics Group 11 % * |
COMMON STOCK REPURCHASES AND _2
COMMON STOCK REPURCHASES AND CASH DIVIDENDS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Abstract | |
Schedule of Dividends Declared and Paid | The following table presents the quarterly dividends declared per share of the Company’s common stock for the periods indicated: Year Ended December 31, 2022 2021 2020 First Quarter $ 0.18 $ 0.13 $ 0.095 Second Quarter $ 0.18 $ 0.13 $ 0.105 Third Quarter $ 0.18 $ 0.13 $ 0.110 Fourth Quarter $ 0.18 $ 0.15 $ 0.110 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share Abstract | |
Earnings per share calculation | A summary of the earnings per share calculation is as follows: Year Ended December 31, (In thousands, except per share amounts) 2022 2021 2020 Basic earnings per share: Net income $ 170,851 $ 164,413 $ 71,176 Weighted-average common shares 57,801 60,327 59,657 Basic earnings per share $ 2.96 $ 2.73 $ 1.19 Diluted earnings per share: (1) Net income $ 170,851 $ 164,413 $ 71,176 Weighted-average common shares 57,801 60,327 59,657 Effect of dilutive awards: Employee stock plans 570 1,140 1,188 Diluted weighted-average common shares 58,371 61,467 60,845 Diluted earnings per share $ 2.93 $ 2.67 $ 1.17 (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 2022, 2021 and 2020 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, 2022 | |
Income Tax Disclosure Abstract | |
U.S. and foreign components of income (loss) before income taxes | U.S. and foreign components of income (loss) before income taxes were: Year Ended December 31, (In thousands) 2022 2021 2020 U.S. operations $ 17,250 $ 241 $ (6,252) Foreign operations 166,176 175,894 81,503 Total income before income taxes $ 183,426 $ 176,135 $ 75,251 |
Components of provision for income taxes | The components of the provision for income taxes are as follows: Year Ended December 31, (In thousands) 2022 2021 2020 Current provision (benefit): Federal $ 19,740 $ 23,648 $ 2,788 State 2 2 (181) Foreign 1,079 1,608 1,677 20,821 25,258 4,284 Deferred provision (benefit): Federal (7,962) (11,449) 348 State — — — Foreign (284) (2,087) (557) (8,246) (13,536) (209) Total $ 12,575 $ 11,722 $ 4,075 |
Effective income tax rate reconciliation | The provision 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, 2022 2021 2020 Provision (benefit) computed at Federal statutory rate 21.0 % 21.0 % 21.0 % Business tax credits (3.7) (3.6) (7.4) Stock-based compensation (1.6) (0.6) (0.1) Foreign income taxed at different rate (18.5) (23.8) (22.0) GILTI inclusion 8.5 13.1 10.7 Valuation allowance 1.3 1.3 2.6 Other (0.1) (0.7) 0.6 Total 6.9 % 6.7 % 5.4 % |
Components of net deferred income tax assets (liabilities) | The components of the net deferred income tax assets (liabilities) were as follows: December 31, (In thousands) 2022 2021 Deferred tax assets: Capitalized R&D costs $ 20,666 $ 13,226 Other reserves and accruals 2,516 3,967 Tax credit carry-forwards 26,154 23,647 Stock compensation 1,559 1,278 Capital losses 150 159 Net operating loss 2,217 2,370 Other 439 692 Valuation allowance (29,036) (27,085) 24,665 18,254 Deferred tax liabilities: Depreciation (5,596) (1,750) (5,596) (1,750) Net deferred tax assets $ 19,069 $ 16,504 |
Unrecognized tax benefits rollforward | 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: Unrecognized (In thousands) Tax Benefits Unrecognized Tax Benefits Balance at January 1, 2020 $ 19,049 Gross Increase for Tax Positions of Current Year 2,002 Gross Decrease for Tax Positions of Prior Years — Unrecognized Tax Benefits Balance at December 31, 2020 21,051 Gross Increase for Tax Positions of Current Year 2,068 Gross Decrease for Tax Positions of Prior Years (1,756) Unrecognized Tax Benefits Balance at December 31, 2021 21,363 Gross Increase for Tax Positions of Current Year 2,188 Gross Decrease for Tax Positions of Prior Years (165) Unrecognized Tax Benefits Balance at December 31, 2022 $ 23,386 |
LEASES AND COMMITMENTS (Tables)
LEASES AND COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES AND COMMITMENTS [Abstract] | |
Supplemental Balance Sheet Information of Operating Leases | Balance sheet information related to leases was as follows: December 31, December 31, (In thousands) Balance Sheet Classification 2022 2021 Right-of-use assets Operating lease assets Other assets $ 9,153 $ 11,887 Lease liabilities Current operating lease liabilities Other accrued liabilities $ 2,895 $ 3,050 Non-current operating lease liabilities Other liabilities 5,831 8,371 Total $ 8,726 $ 11,421 |
Lease Terms and Discount Rate | December 31, December 31, Lease term and discount rate 2022 2021 Weighted average remaining lease term 4.0 years 4.2 years Weighted average discount rate 4.6 % 3.3 % |
Supplemental Cash Flow Information Related to Leases | December 31, December 31, Lease term and discount rate 2022 2021 Weighted average remaining lease term 4.0 years 4.2 years Weighted average discount rate 4.6 % 3.3 % Supplemental cash flows information related to leases was as follow: Year Ended December 31, (In thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,245 $ 3,538 Right-of-use assets obtained in exchange for new operating lease obligations $ 1,795 $ 5,225 |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under all non-cancelable lease agreements as of December 31, 2022, are as follows: December 31, (In thousands) 2022 2023 $ 3,268 2024 2,551 2025 1,360 2026 975 2027 689 Thereafter 798 Total future minimum lease payments 9,641 Less imputed interest (915) Total $ 8,726 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS (Segment Reporting) (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits Plan | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 2 | $ 1.9 | $ 1.8 |
Foreign Exchange Transactions | |||
Foreign Currency Transaction Gain (Loss), before Tax | (0.6) | (0.5) | |
Warranty | |||
Product Warranty Period | P12M | ||
Advertising Expense | |||
Advertising Expense | $ 1.4 | $ 1.3 | $ 1.2 |
COMPONENTS OF THE COMPANY'S C_3
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS (Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures Abstract | |||
Accounts receivable trade | $ 78,914 | $ 87,503 | |
Allowance for ship and debit | (53,184) | (41,599) | |
Allowance for stock rotation and rebate | (3,759) | (4,066) | |
Allowance for credit losses | (1,135) | (445) | $ (427) |
Total | $ 20,836 | $ 41,393 |
COMPONENTS OF THE COMPANY'S C_4
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS (Allowance for Estimated Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for estimated credit losses | ||
Beginning Balance | $ (445) | $ (427) |
Provision for credit loss expense | (1,859) | (1,023) |
Receivables written off | 49 | 74 |
Recoveries collected | 1,120 | 931 |
Ending Balance | $ (1,135) | $ (445) |
COMPONENTS OF THE COMPANY'S C_5
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS (Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Raw materials | $ 75,355 | $ 24,131 |
Work-in-process | 15,440 | 31,788 |
Finished goods | 44,625 | 43,347 |
Total | $ 135,420 | $ 99,266 |
COMPONENTS OF THE COMPANY'S C_6
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS (Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 446,947 | $ 418,867 | |
Less: Accumulated depreciation | (270,266) | (239,043) | |
Property, Plant and Equipment, Net | 176,681 | 179,824 | |
Depreciation | 34,930 | 31,454 | $ 23,743 |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | United States of America | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 190,300 | $ 174,600 | $ 167,000 |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | THAILAND | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk percentage | 12% | 14% | 14% |
Property and Equipment [Member] | Geographic Concentration Risk [Member] | Malaysia | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk percentage | 15% | 15% | 14% |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 22,166 | $ 22,187 | |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 19,195 | 22,661 | |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 89,704 | 81,027 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | 253,308 | 235,066 | |
Computer software and hardware and office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Gross | $ 62,574 | $ 57,926 | |
Minimum | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 4 years | ||
Minimum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 2 years | ||
Minimum | Computer software and hardware and office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 4 years | ||
Maximum | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 40 years | ||
Maximum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 8 years | ||
Maximum | Computer software and hardware and office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, Useful Life | 7 years |
COMPONENTS OF THE COMPANY'S C_7
COMPONENTS OF THE COMPANY'S CONSOLIDATED BALANCE SHEETS (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (3,737) | $ (2,163) | $ (3,130) |
Other comprehensive income (loss) before reclassifications | (3,684) | (1,741) | 760 |
Amounts reclassified from accumulated other comprehensive loss | 77 | 167 | 207 |
Other comprehensive loss | (3,607) | (1,574) | 967 |
Ending balance | (7,344) | (3,737) | (2,163) |
Unrealized Gains and Losses on Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,165) | 890 | 583 |
Other comprehensive income (loss) before reclassifications | (4,158) | (2,055) | 307 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive loss | (4,158) | (2,055) | 307 |
Ending balance | (5,323) | (1,165) | 890 |
Defined Benefit Pension Items | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (674) | (1,641) | (2,484) |
Other comprehensive income (loss) before reclassifications | 1,459 | 800 | 636 |
Amounts reclassified from accumulated other comprehensive loss | 77 | 167 | 207 |
Other comprehensive loss | 1,536 | 967 | 843 |
Ending balance | 862 | (674) | (1,641) |
Foreign Currency Items | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (1,898) | (1,412) | (1,229) |
Other comprehensive income (loss) before reclassifications | (985) | (486) | (183) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive loss | (985) | (486) | (183) |
Ending balance | $ (2,883) | $ (1,898) | $ (1,412) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | $ 307,487 | $ 484,570 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | 363 | 29,793 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | 307,124 | 454,777 |
Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 248,441 | 282,540 |
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 | 248,441 | 282,540 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 58,683 | 172,237 |
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 | 58,683 | 172,237 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 363 | 29,793 |
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 | 363 | 29,793 |
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) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 253,764 | $ 373,400 |
Gross Unrealized Gains | 71 | 21 |
Gross Unrealized Losses | (5,394) | (1,186) |
Estimated Fair Market Value | $ 248,441 | $ 372,235 |
Weighted Average Interest Rate on Investments | 2.08% | 0.45% |
Interest receivable | $ 1,200 | $ 1,500 |
Investments due in 3 months or less: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21,803 | 97,250 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (135) | (3) |
Estimated Fair Market Value | 21,668 | 97,247 |
Investments due in 4-12 months: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 173,833 | 25,054 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4,019) | (42) |
Estimated Fair Market Value | 169,814 | 25,012 |
Investments due in 12 months or greater: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 58,128 | 251,096 |
Gross Unrealized Gains | 71 | 21 |
Gross Unrealized Losses | (1,240) | (1,141) |
Estimated Fair Market Value | 56,959 | 249,976 |
Commercial paper | Investments due in 3 months or less: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 89,965 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Market Value | 89,965 | |
Corporate securities | Investments due in 3 months or less: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21,803 | 7,285 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (135) | (3) |
Estimated Fair Market Value | 21,668 | 7,282 |
Corporate securities | Investments due in 4-12 months: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 173,833 | 25,054 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4,019) | (42) |
Estimated Fair Market Value | 169,814 | 25,012 |
Corporate securities | Investments due in 12 months or greater: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 58,128 | 251,096 |
Gross Unrealized Gains | 71 | 21 |
Gross Unrealized Losses | (1,240) | (1,141) |
Estimated Fair Market Value | $ 56,959 | $ 249,976 |
MARKETABLE SECURITIES (Continuo
MARKETABLE SECURITIES (Continuous Unrealized Loss Position) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Estimated Fair Market Value, Total marketable securities | $ 45,047,000 | $ 274,380,000 |
Less Than 12 Months Gross Unrealized Losses, Total marketable securities | (662,000) | (1,186,000) |
12 Months or Longer Estimated Fair Market Value, Total marketable securities | 191,443,000 | 0 |
12 Months or Longer Gross Unrealized Losses, Total marketable securities | (4,732,000) | 0 |
Total Estimated Fair Market Value, Total marketable securities | 236,490,000 | 274,380,000 |
Total Gross Unrealized Losses, Total marketable securities | (5,394,000) | (1,186,000) |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Estimated Fair Market Value, Total marketable securities | 45,047,000 | 274,380,000 |
Less Than 12 Months Gross Unrealized Losses, Total marketable securities | (662,000) | (1,186,000) |
12 Months or Longer Estimated Fair Market Value, Total marketable securities | 191,443,000 | 0 |
12 Months or Longer Gross Unrealized Losses, Total marketable securities | (4,732,000) | 0 |
Total Estimated Fair Market Value, Total marketable securities | 236,490,000 | 274,380,000 |
Total Gross Unrealized Losses, Total marketable securities | $ (5,394,000) | $ (1,186,000) |
MARKETABLE SECURITIES - Unreali
MARKETABLE SECURITIES - Unrealized Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Marketable Securities Abstract | ||
Unrealized losses on marketable securities | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill [Abstract] | ||
Goodwill | $ 91,849 | $ 91,849 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets and Goodwill [Line Items] | |||
Amortization of intangibles | $ 2,415 | $ 3,494 | $ 4,359 |
Intangible Assets, Net[Abstract] | |||
Intangible Assets, Gross | 57,847 | 57,847 | |
Accumulated amortization | (51,250) | (48,835) | |
Total | 5,336 | ||
Total Intangible Assets, Net | $ 6,597 | 9,012 | |
Minimum | |||
Intangible Assets and Goodwill [Line Items] | |||
Useful life (in years) | 2 years | ||
Maximum | |||
Intangible Assets and Goodwill [Line Items] | |||
Useful life (in years) | 12 years | ||
Developed technology | |||
Intangible Assets, Net[Abstract] | |||
Finite-Lived Intangible Assets, Gross | $ 37,960 | 37,960 | |
Accumulated amortization | (33,531) | (31,603) | |
Total | 4,429 | 6,357 | |
Customer relationships | |||
Intangible Assets, Net[Abstract] | |||
Finite-Lived Intangible Assets, Gross | 16,700 | 16,700 | |
Accumulated amortization | (16,700) | (16,458) | |
Total | 242 | ||
Technology licenses | |||
Intangible Assets, Net[Abstract] | |||
Finite-Lived Intangible Assets, Gross | 1,926 | 1,926 | |
Accumulated amortization | (1,019) | (774) | |
Total | 907 | 1,152 | |
Domain name | |||
Intangible Assets, Net[Abstract] | |||
Indefinite-Lived Intangible Assets | 1,261 | 1,261 | |
Accumulated amortization | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Intangible Assets Amortization Expense) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2023 | $ 2,173 |
2024 | 1,279 |
2025 | 832 |
2026 | 687 |
Thereafter | 365 |
Total | $ 5,336 |
STOCK PLANS AND SHARE BASED C_4
STOCK PLANS AND SHARE BASED COMPENSATION (Details) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) period plan shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock-based compensation plans | plan | 3 | ||
Number of shares available for future issuance | 4.9 | ||
Stock-based compensation expense | $ | $ 22,364 | $ 37,609 | $ 30,912 |
2016 Incentive Award Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense | $ | $ 23,200 | 19,900 | 18,700 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of employee's compensation eligible for payroll deductions | 15% | ||
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% | ||
Number of purchase periods in each offering period | period | 1 | ||
Duration of each purchase period in each offering period | 6 months | ||
Shares reserved for issuance | 7.5 | ||
Number of shares purchased | 6.8 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0.7 | ||
Stock-based compensation expense | $ | $ 1,900 | 2,000 | 2,000 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 4 years | ||
Performance Based Awards, Long-term and Short-term [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ (2,700) | $ 15,700 | $ 10,200 |
STOCK PLANS AND SHARE BASED C_5
STOCK PLANS AND SHARE BASED COMPENSATION (Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 22,364 | $ 37,609 | $ 30,912 |
Unrecognized Compensation Expense for Unvested Awards | 46,906 | ||
Long-Term Performance-Based Awards (PRSUs) | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Unrecognized Compensation Expense for Unvested Awards | $ 0 | ||
Weighted Average Remaining Recognition Period | 0 years | ||
Restricted Stock Units (RSUs) | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 23,200 | 19,900 | 18,700 |
Unrecognized Compensation Expense for Unvested Awards | $ 46,724 | ||
Weighted Average Remaining Recognition Period | 2 years 9 months 29 days | ||
Employee Stock Purchase Plan | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 1,900 | 2,000 | 2,000 |
Unrecognized Compensation Expense for Unvested Awards | $ 182 | ||
Weighted Average Remaining Recognition Period | 1 month | ||
Cost of revenues | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 1,132 | 2,359 | 1,963 |
Research and development | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 10,428 | 12,127 | 10,378 |
Sales and marketing | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | 6,035 | 7,630 | 6,290 |
General and administrative | |||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | |||
Stock-based compensation expense | $ 4,769 | $ 15,493 | $ 12,281 |
STOCK PLANS AND SHARE BASED C_6
STOCK PLANS AND SHARE BASED COMPENSATION (Fair Value Assumptions) (Details) - Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 1.71% | 0.07% | 0.90% |
Expected volatility rates | 41% | 41% | 47% |
Expected dividend yield | 0.89% | 0.57% | 0.78% |
Expected term of purchase rights (in years) | 6 months | 6 months | 6 months |
Weighted-average estimated fair value of purchase rights | $ 21.63 | $ 23.92 | $ 15.73 |
STOCK PLANS AND SHARE BASED C_7
STOCK PLANS AND SHARE BASED COMPENSATION (Option Activity) (Details) - Stock Options - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Option activity under the Plans | |||
Stock options granted | 0 | ||
Stock option shares outstanding | 0 | ||
Total intrinsic value of options exercised | $ 0.8 | $ 4.9 | $ 9.1 |
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, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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% | ||
Number of performance-based awards shares released as a percentage of target number, maximum | 200% | ||
Shares | |||
Outstanding, shares at beginning of the period | 104,000 | 150,000 | 121,000 |
Granted, shares | 119,000 | 105,000 | 150,000 |
Vested, shares | (104,000) | (150,000) | (121,000) |
Forfeited, shares | (85,000) | (1,000) | 0 |
Outstanding, shares at ending of the period | 34,000 | 104,000 | 150,000 |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ 84.47 | $ 46.27 | $ 35.06 |
Granted, weighted-average grant date fair value per share | 79.91 | 84.48 | 46.31 |
Vested, weighted-average grant date fair value per share | 84.48 | 46.27 | 35.06 |
Forfeited or expired, weighted-average grant date fair value per share | 79.89 | 85.01 | 0 |
Outstanding, weighted-average grant date fair value per share, end of period | $ 79.94 | $ 84.47 | $ 46.27 |
Outstanding, weighted-average remaining contractual term (in years) | 0 years | ||
Outstanding, aggregate intrinsic value | $ 2,465 | ||
Outstanding and expected to vest, shares | 34,000 | ||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 0 years | ||
Outstanding and expected to vest, aggregate intrinsic value | $ 2,465 | ||
Grant date fair value of awards released | $ 8,800 | $ 6,900 | $ 4,200 |
Long-Term Performance-Based Awards (PRSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of performance-based awards shares released as a percentage of target number, minimum | 0% | ||
Number of performance-based awards shares released as a percentage of target number, maximum | 200% | ||
Performance based period | 3 years | ||
Shares | |||
Outstanding, shares at beginning of the period | 383,000 | 301,000 | 287,000 |
Granted, shares | 110,000 | 103,000 | 152,000 |
Vested, shares | (135,000) | (6,000) | 0 |
Forfeited, shares | (122,000) | (15,000) | (138,000) |
Outstanding, shares at ending of the period | 236,000 | 383,000 | 301,000 |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ 53.14 | $ 41.90 | $ 32.03 |
Granted, weighted-average grant date fair value per share | 78.96 | 82.92 | 49.67 |
Vested, weighted-average grant date fair value per share | 34.09 | 29.94 | 0 |
Forfeited or expired, weighted-average grant date fair value per share | 49.68 | 40.05 | 29.95 |
Outstanding, weighted-average grant date fair value per share, end of period | $ 77.82 | $ 53.14 | $ 41.90 |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 6 months 7 days | ||
Outstanding, aggregate intrinsic value | $ 16,895 | ||
Outstanding and expected to vest, shares | 23,000 | ||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 0 years | ||
Outstanding and expected to vest, aggregate intrinsic value | $ 1,653 | ||
Grant date fair value of awards released | $ 4,600 | $ 200 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 4 years | ||
Shares | |||
Outstanding, shares at beginning of the period | 1,144,000 | 1,518,000 | 1,719,000 |
Granted, shares | 519,000 | 271,000 | 439,000 |
Vested, shares | (481,000) | (546,000) | (599,000) |
Forfeited, shares | (86,000) | (99,000) | (41,000) |
Outstanding, shares at ending of the period | 1,096,000 | 1,144,000 | 1,518,000 |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ 46.81 | $ 35.51 | $ 31.33 |
Granted, weighted-average grant date fair value per share | 76.01 | 83.79 | 44.82 |
Vested, weighted-average grant date fair value per share | 44.70 | 35.03 | 30.25 |
Forfeited or expired, weighted-average grant date fair value per share | 60.02 | 39.85 | 36.77 |
Outstanding, weighted-average grant date fair value per share, end of period | $ 60.52 | $ 46.81 | $ 35.51 |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 6 months 25 days | ||
Outstanding, aggregate intrinsic value | $ 78,629 | ||
Outstanding and expected to vest, shares | 1,022,000 | ||
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 1 year 5 months 19 days | ||
Outstanding and expected to vest, aggregate intrinsic value | $ 73,277 | ||
Grant date fair value of awards released | $ 21,500 | $ 19,100 | $ 18,100 |
SIGNIFICANT CUSTOMERS AND GEO_3
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES (Customer and Credit Risk Concentration) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) customer | Dec. 31, 2020 USD ($) customer | |
Concentration Risk [Line Items] | |||
NET REVENUES | $ | $ 651,138 | $ 703,277 | $ 488,318 |
Distributors | |||
Concentration Risk [Line Items] | |||
NET REVENUES | $ | $ 457,700 | $ 525,700 | $ 367,700 |
Credit concentration risk | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Number of major customers | customer | 10 | 10 | |
Credit concentration risk | Accounts receivable | Avnet | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 42% | 45% | |
Credit concentration risk | Accounts receivable | Salcomp Group | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13% | ||
Credit concentration risk | Accounts receivable | Flextronics Group | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11% | ||
Credit concentration risk | Accounts receivable | Ten Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 87% | 86% | |
Customer concentration risk | Net revenue | |||
Concentration Risk [Line Items] | |||
Number of major customers | customer | 10 | 10 | 10 |
Concentration risk, percentage of total net revenues | 76% | 78% | 62% |
Customer concentration risk | Net revenue | Avnet | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total net revenues | 31% | 30% | 19% |
Customer concentration risk | Net revenue | Honestar Technologies Co., Ltd. | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total net revenues | 11% | 16% | 11% |
SIGNIFICANT CUSTOMERS AND GEO_4
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES (Geographic Net Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | $ 651,138 | $ 703,277 | $ 488,318 |
United States of America | |||
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | 25,500 | 17,238 | 11,065 |
Hong Kong/China | |||
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | 356,865 | 446,980 | 306,938 |
India | |||
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | 33,159 | 25,961 | 19,845 |
Taiwan | |||
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | 19,789 | 25,991 | 21,650 |
Korea | |||
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | 52,074 | 59,501 | 40,059 |
Western Europe (excluding Germany) | |||
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | 32,429 | 35,835 | 33,564 |
Japan | |||
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | 34,924 | 25,101 | 17,453 |
Germany | |||
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | 52,876 | 32,664 | 23,242 |
Other | |||
Schedule of Revenues by Geography [Line Items] | |||
NET REVENUES | $ 43,522 | $ 34,006 | $ 14,502 |
COMMON STOCK REPURCHASES AND _3
COMMON STOCK REPURCHASES AND CASH DIVIDENDS (Common Stock Repurchases) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2022 | Apr. 30, 2022 | Feb. 28, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Apr. 30, 2021 | Oct. 31, 2018 | |
Class of Stock [Line Items] | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | $ 75,000 | $ 50,000 | $ 100,000 | $ 50,000 | $ 50,000 | $ 80,000 | |||
Stock Repurchased and Retired During Period, Value | $ 311,094 | $ 73,938 | $ 2,636 | |||||||
Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock Repurchased and Retired During Period, Shares | 3,800 | 900 | 63 | |||||||
Stock Repurchased and Retired During Period, Value | $ 311,100 | $ 73,900 | $ 2,600 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 81,300 |
COMMON STOCK REPURCHASES AND _4
COMMON STOCK REPURCHASES AND CASH DIVIDENDS (Cash Dividends) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Feb. 07, 2023 $ / shares | Jan. 31, 2022 dividend $ / shares | Oct. 31, 2021 item $ / shares | Jan. 31, 2021 $ / shares | Jul. 31, 2020 item $ / shares | Apr. 30, 2020 USD ($) $ / shares | Oct. 31, 2019 $ / shares | Dec. 31, 2022 $ / shares | Sep. 30, 2022 $ / shares | Jun. 30, 2022 $ / shares | Mar. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | Sep. 30, 2021 $ / shares | Jun. 30, 2021 $ / shares | Mar. 31, 2021 $ / shares | Dec. 31, 2020 $ / shares | Sep. 30, 2020 $ / shares | Jun. 30, 2020 $ / shares | Mar. 31, 2020 $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Dividends Payable [Line Items] | ||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.15 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.110 | $ 0.110 | $ 0.105 | $ 0.095 | ||||||||||
Payments of dividends to stockholders | $ | $ 41,492,000 | $ 32,599,000 | $ 25,081,000 | |||||||||||||||||||
Common Stock, Dividends, Number of Quarterly Distributions Declared | 4 | 5 | 2 | 3 | ||||||||||||||||||
Common Stock, Dividends, Per Share, Declared, Two Fiscal Years Prior, Each Quarter | $ 0.095 | |||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared, Two Fiscal Years Prior, Second Quarter | $ 0.105 | |||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared, Two Fiscal Years Prior, Third Quarter | $ 0.11 | 0.105 | ||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared, Two Fiscal Years Prior, Fourth Quarter | $ 0.11 | $ 0.105 | ||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared, Prior Fiscal Year, Each Quarter | $ 0.13 | |||||||||||||||||||||
Common Stock, Dividends Per Share Declared, Prior Fiscal Year, Fourth Quarter | $ 0.15 | |||||||||||||||||||||
Common Stock, Dividends, Increase Per Share, Declared, Current Fiscal Year, Each Quarter | $ 0.03 | 0.15 | ||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared, Current Fiscal Year, Each Quarter | $ 0.18 | $ 0.15 | ||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared, Next Fiscal Year, Each Quarter | $ 0.19 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic earnings per share: | |||
Net income | $ 170,851 | $ 164,413 | $ 71,176 |
Weighted-average common shares | 57,801,000 | 60,327,000 | 59,657,000 |
Basic earnings per share | $ 2.96 | $ 2.73 | $ 1.19 |
Diluted earnings per share: | |||
Net income | $ 170,851 | $ 164,413 | $ 71,176 |
Weighted-average common shares | 57,801,000 | 60,327,000 | 59,657,000 |
Effect of dilutive awards: | |||
Employee stock plans | 570,000 | 1,140,000 | 1,188,000 |
Diluted weighted-average common shares | 58,371,000 | 61,467,000 | 60,845,000 |
Diluted earnings per share | $ 2.93 | $ 2.67 | $ 1.17 |
Stock awards excluded in the computation of diluted earnings per share | 0 | 0 | 0 |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. and foreign components of income before income taxes [Abstract] | |||
U.S. operations | $ 17,250 | $ 241 | $ (6,252) |
Foreign operations | 166,176 | 175,894 | 81,503 |
INCOME BEFORE INCOME TAXES | 183,426 | 176,135 | 75,251 |
Current provision (benefit): | |||
Federal | 19,740 | 23,648 | 2,788 |
State | 2 | 2 | (181) |
Foreign | 1,079 | 1,608 | 1,677 |
Current provision (benefit) | 20,821 | 25,258 | 4,284 |
Deferred provision (benefit): | |||
Federal | (7,962) | (11,449) | 348 |
State | 0 | 0 | 0 |
Foreign | (284) | (2,087) | (557) |
Deferred provision (benefit) | (8,246) | (13,536) | (209) |
Income Tax Expense (Benefit), Total | $ 12,575 | $ 11,722 | $ 4,075 |
Effective income tax rate reconciliation [Abstract] | |||
Federal statutory tax rate | 21% | 21% | 21% |
Business tax credits | (3.70%) | (3.60%) | (7.40%) |
Stock-based compensation | (1.60%) | (0.60%) | (0.10%) |
Foreign income taxed at different rate | (18.50%) | (23.80%) | (22.00%) |
GILTI inclusion | 8.50% | 13.10% | 10.70% |
Valuation allowance | 1.30% | 1.30% | 2.60% |
Other | (0.10%) | (0.70%) | 0.60% |
Effective Income Tax Rate Reconciliation, Percent, Total | 6.90% | 6.70% | 5.40% |
Components of deferred income tax assets (liabilities) [Abstract] | |||
Capitalized R&D costs | $ 20,666 | $ 13,226 | |
Other reserves and accruals | 2,516 | 3,967 | |
Tax credit carry-forwards | 26,154 | 23,647 | |
Stock compensation | 1,559 | 1,278 | |
Capital losses | 150 | 159 | |
Net operating loss | 2,217 | 2,370 | |
Other | 439 | 692 | |
Valuation allowance | (29,036) | (27,085) | |
Deferred tax assets, net of valuation allowance | 24,665 | 18,254 | |
Depreciation | (5,596) | (1,750) | |
Deferred tax liabilities | (5,596) | (1,750) | |
Net deferred tax assets | 19,069 | 16,504 | |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized Tax Benefits, Balance at beginning of period | 21,363 | 21,051 | $ 19,049 |
Gross Increase for Tax Positions of Current Year | 2,188 | 2,068 | 2,002 |
Gross Decrease for Tax Positions of Prior Years | (165) | (1,756) | 0 |
Unrecognized Tax Benefits, Balance at end of period | 23,386 | 21,363 | 21,051 |
Unrecognized tax benefits [Abstract] | |||
Unrecognized Tax Benefits, Balance at end of period | 23,386 | 21,363 | $ 21,051 |
Income tax benefit that would be recorded if unrecognized tax benefits are recognized | 11,700 | ||
Income tax interest and penalties accrued | 1,200 | $ 800 | |
State and Local Jurisdiction [Member] | California Taxing Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 43,500 | ||
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | California Taxing Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | 37,900 | ||
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 | 800 | ||
Research Tax Credit Carryforward [Member] | Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward, amount | $ 3,700 | ||
Earliest Tax Year [Member] | State and Local Jurisdiction [Member] | California Taxing Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Jan. 01, 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. 01, 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. 01, 2030 |
LEASES AND COMMITMENTS (Leases
LEASES AND COMMITMENTS (Leases Expense and Balance Sheet Information of Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating Lease, Expense | $ 3,300 | $ 3,300 | $ 2,700 |
Operating Lease, Right-of-Use Asset | $ 9,153 | $ 11,887 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent | |
Operating Lease, Liability, Current | $ 2,895 | $ 3,050 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current | |
Operating Lease, Liability, Noncurrent | $ 5,831 | $ 8,371 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | |
Operating Lease, Liability | $ 8,726 | $ 11,421 |
LEASES AND COMMITMENTS Lease Te
LEASES AND COMMITMENTS Lease Terms and Discount Rate (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Terms and Discount Rate [Line Items] | ||
Lessee, Operating Lease, Option Extension Term, Maximum | 5 years | |
Lessee, Operating Lease, Option To Terminate, Minimum Term | 1 year | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years | 4 years 2 months 12 days |
Lessee, Operating Lease, Discount Rate | 4.60% | 3.30% |
Minimum | ||
Lease Terms and Discount Rate [Line Items] | ||
Lessee Operating Lease Remaining Lease Term Range | 1 year | |
Maximum | ||
Lease Terms and Discount Rate [Line Items] | ||
Lessee Operating Lease Remaining Lease Term Range | 7 years |
LEASES AND COMMITMENTS Suppleme
LEASES AND COMMITMENTS Supplemental Cash Flows Information Regarding Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 3,245 | $ 3,538 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 1,795 | $ 5,225 |
LEASES AND COMMITMENTS Maturiti
LEASES AND COMMITMENTS Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 3,268 | |
2024 | 2,551 | |
2025 | 1,360 | |
2026 | 975 | |
2027 | 689 | |
Thereafter | 798 | |
Total future minimum lease payments | 9,641 | |
Less imputed interest | 915 | |
Total | $ 8,726 | $ 11,421 |
LEASES AND COMMITMENTS Commitme
LEASES AND COMMITMENTS Commitments (Details) | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure Abstract | |
Unrecorded Unconditional Purchase Obligation | $ 0 |
LEGAL PROCEEDINGS AND CONTING_2
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions | Oct. 31, 2022 patent | May 16, 2022 USD ($) | Jan. 06, 2020 patent |
Pending Litigation | Patent Infringement Claim Two | |||
Gain and Loss Contingencies [Line Items] | |||
Gain Contingency, Patents Allegedly Infringed upon, Number | 2 | ||
Pending Litigation | Patent infringement claim Three | |||
Gain and Loss Contingencies [Line Items] | |||
Loss Contingency, Patents Allegedly Infringed, Number | 1 | ||
Settled Litigation | Settlement Agreement with Opticurrent, LLC | |||
Gain and Loss Contingencies [Line Items] | |||
Litigation Settlement, Amount Awarded to Other Party | $ | $ 2.9 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net Pension Liability | $ 3.9 | $ 6 | |
Plan Assets | 8.2 | 9.5 | |
Projected Benefit Obligation | 12.1 | 15.5 | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 0.4 | ||
Defined Benefit Pension Items | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ (0.9) | $ 0.7 | $ 1.6 |
BANK LINE OF CREDIT (Details)
BANK LINE OF CREDIT (Details) - USD ($) $ in Millions | Dec. 31, 2022 | 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 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Ship and Debit Credits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 41,599 | $ 26,435 | $ 33,475 |
Additions | 241,817 | 311,443 | 257,765 |
Deductions | (230,232) | (296,279) | (264,805) |
Balance at End of Period | $ 53,184 | $ 41,599 | $ 26,435 |