Organization And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2013 |
Organization And Summary Of Significant Accounting Policies [Abstract] | ' |
Basis Of Presentation | ' |
Basis of Presentation |
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The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States and include the accounts of the Company and its wholly-owned subsidiaries in China, India, Japan, Korea, Singapore, Taiwan and the United Kingdom. All intercompany transactions and balances have been eliminated. |
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Cash And Cash Equivalents | ' |
Cash and Cash Equivalents |
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The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
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Investments | ' |
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Investments |
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At December 31, 2013, the Company’s securities consisted of certificates of deposits and debt securities. Management determines the appropriate classification of debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. At December 31, 2013 and 2012, all debt securities were designated as available-for-sale. Available-for-sale securities are carried at fair value, based on quoted market prices or prices quoted in markets that are not active, with unrealized gains and losses reported in a separate component of stockholders' equity. The amortized cost of debt securities is adjusted for the amortization of premiums and the accretion of discounts to maturity both of which are included in interest income. Realized gains and losses are recorded on the specific identification method. |
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The accounting guidance for fair value measurements provided a framework for measuring fair value and expands related disclosures. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The guidance also established a hierarchy which requires an entity to maximize the use of observable inputs, when available. The guidance requires fair value measurement be classified and disclosed in one of the following three categories: |
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Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. The fair value of available-for-sale securities included in the level 1 category is based on quoted prices that are readily and regularly available in an active market. |
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Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. The fair value of available-for-sale securities included in the Level 2 category is based upon quoted prices in markets that are not active and incorporate available trade, bid and other market information. |
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Level 3: Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing. |
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Accounts Receivable And Allowance For Doubtful Accounts | ' |
Accounts Receivable and Allowance for Doubtful Accounts |
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Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company determines the allowance based on historical write-off experience and customer economic data. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days are reviewed individually for collectability. Account balances are charged off against the allowance when the Company believes that it is probable the receivable will not be recovered. |
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Inventories | ' |
Inventories |
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Inventories are valued at the lower of cost (first-in, first-out method) or market (net realizable value). Inventories were as follows (in thousands): |
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| | December 31, | | | | | |
| | 2013 | | 2012 | | | | | |
Work-in-process | | $ | 5,561 | | $ | 4,986 | | | | | |
Finished goods | | | 4,728 | | | 5,574 | | | | | |
Total | | $ | 10,289 | | $ | 10,560 | | | | | |
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The Company evaluates the need for potential inventory write downs by considering a combination of factors, including the life of the product, sales history, obsolescence, sales forecasts and expected sales prices. |
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Goodwill | ' |
Goodwill |
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Goodwill represents the excess of cost over the value of net assets of businesses acquired and is carried at cost unless write-downs for impairment are required. The Company’s goodwill as of December 31, 2013, is a result of the Oxford and Teranetics acquisition on January 2, 2009 and October 1, 2010, respectively, as adjusted for the 2012 divestiture of the PHY business and the 2011 divestiture of the UK design team. The Company evaluates the carrying value of goodwill on an annual basis during the fourth quarter and whenever events and changes in circumstances indicate that the carrying amount may not be recoverable. Such indicators would include a significant reduction in the Company's market capitalization, a decrease in operating results or a deterioration in the Company's financial position. The Company operates under a single reporting unit, and accordingly, all of its goodwill is associated with the entire company. In the fourth quarter of 2013 and 2012, the Company tested the carrying value of goodwill and determined there was no impairment. |
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Changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows (in thousands): |
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| | December 31, | | | | | |
| | 2013 | | 2012 | | | | | |
Goodwill | | $ | 55,153 | | $ | 56,030 | | | | | |
Accumulated impairment losses | | | -34,692 | | | -34,692 | | | | | |
Net goodwill at beginning of period | | | 20,461 | | | 21,338 | | | | | |
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Goodwill adjustment for divestiture of PHY business | | | - | | | -877 | | | | | |
Net goodwill at end of period | | $ | 20,461 | | $ | 20,461 | | | | | |
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Long-lived Asset Impairment | ' |
Long-lived Asset Impairment |
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Long-lived assets, principally property and equipment, held and used by the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable. The Company evaluates recoverability of assets to be held and used by comparing the carrying amount of an asset to estimated future net undiscounted cash flows generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
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Property And Equipment | ' |
Property and Equipment |
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Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of thirty nine years for buildings, three to eight years for building improvements and three to seven years for equipment, furniture and purchased software. |
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Property and equipment are as follows (in thousands): |
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| | December 31, | | | | | |
| | 2013 | | 2012 | | | | | |
Land | | $ | 3,150 | | $ | 3,150 | | | | | |
Building and improvements | | | 4,327 | | | 4,327 | | | | | |
Equipment and furniture | | | 15,888 | | | 14,955 | | | | | |
Purchased software | | | 2,401 | | | 2,371 | | | | | |
| | | 25,766 | | | 24,803 | | | | | |
Accumulated depreciation | | | -15,433 | | | -13,536 | | | | | |
Net property and equipment | | $ | 10,333 | | $ | 11,267 | | | | | |
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Depreciation and amortization expense from continuing operations pertaining to property and equipment was approximately $2.0 million, $2.2 million and $2.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
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Foreign Currency Translation | ' |
Foreign Currency Translation |
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The functional currency of the Company’s international subsidiaries in China, India, Japan, Korea Singapore, Taiwan and UK, is the local currency of the resident countries. Assets and liabilities of the Company’s foreign subsidiaries are translated into the Company’s reporting currency at month-end exchange rates. Revenues and expenses of the Company’s foreign subsidiaries are translated into the Company’s reporting currency at weighted-average exchange rates. The effects of the translation are included in a separate component of the Consolidated Statements of Stockholder’s Equity and Comprehensive Income (Loss). |
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Income Taxes | ' |
Income Taxes |
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Income taxes are accounted for using the asset and liability method. Under this method, deferred tax liabilities and assets are recognized for the expected future tax consequences of differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided when it is more likely than not that all or some portion of deferred tax assets will not be realized. |
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The Company recognizes the tax liability for uncertain income tax positions on the income tax return based on the two-step process. The first step is to determine whether it is more likely than not that each income tax position would be sustained upon audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. Estimating these amounts requires the Company to determine the probability of various possible outcomes. The Company evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors including changes in facts or circumstances, changes in applicable tax law, settlement of issues under audit and new exposures. If the Company later determines that the exposure is lower or that the liability is not sufficient to cover its revised expectations, the Company adjusts the liability and effect a related change in its tax provision during the period in which the Company makes such determination. |
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Revenue Recognition | ' |
Revenue Recognition |
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The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is reasonably assured. |
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Revenue from product sales to direct customers and distributors is recognized upon shipment and transfer of risk of loss, if the Company believes collection is reasonably assured and all other revenue recognition criteria are met. The Company assesses the probability of collection based on a number of factors, including past transaction history and the customer’s creditworthiness. At the end of each reporting period, the sufficiency of allowances is assessed based on the age of the receivable and the individual customer’s creditworthiness. |
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The Company offers pricing protection to two distributors whereby the Company supports the distributor’s resale product margin on certain products held in the distributor’s inventory. The Company analyzes current requests for credit in process, also known as ship and debits, historical rates and amounts of credits issued and inventory at the distributor to determine the ending sales reserve required for this program. The Company also offers stock rotation rights to two distributors such that they can return up to a total of 5% of products purchased every six months in exchange for other PLX products of equal value. The Company analyzes current stock rotation requests, past experience and ending inventory to determine the ending sales reserve required for this program. As of December 31, 2013 and 2012, the Company had a reserve allowance for these programs of $1.8 million and $2.1 million, respectively. Provisions for reserves are charged directly against revenue and related reserves are recorded as a reduction to accounts receivable. |
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Product Warranty | ' |
Product Warranty |
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The Company sells products with a limited warranty of product quality for a period of one year, and up to three years for a small number of customers, and a limited indemnification of customers against intellectual property infringement claims related to the Company’s products. The Company accrues for known warranty and indemnification issues if a loss is probable and can be reasonably estimated, and accrues for estimated incurred but unidentified issues based on historical activity. |
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Use Of Estimates | ' |
Use of Estimates |
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The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and such differences may be material to the consolidated financial statements. |
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Comprehensive Loss | ' |
Comprehensive Income (Loss) |
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The changes in the components of accumulated other comprehensive loss, net of tax, reflected in the Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss), consisted of the following (in thousands): |
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| | Year Ended December 31, 2013 | | |
| | Unrealized gain (loss) | | Foreign currency | | | | | |
| | on marketable securities | | translation adjustments | | Total | | |
Balance at January 1, 2013 | | $ | 1 | | $ | -227 | | $ | -226 | | |
Other comprehensive loss before reclassifications | | | -2 | | | -49 | | | -51 | | |
Balance at December 31, 2013 | | $ | -1 | | $ | -276 | | $ | -277 | | |
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There were no amounts reclassified from accumulated other comprehensive loss in 2013. |
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| | Year Ended December 31, 2012 | | |
| | Unrealized gain (loss) | | Foreign currency | | | | | |
| | on marketable securities | | translation adjustments | | Total | | |
Balance at January 1, 2012 | | $ | 9 | | $ | -156 | | $ | -147 | | |
Other comprehensive loss before reclassifications | | | -4 | | | -71 | | | -75 | | |
Amount reclassified from AOCI | | | -4 | | | - | | | -4 | | |
Balance at December 31, 2012 | | $ | 1 | | $ | -227 | | $ | -226 | | |
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| | Year Ended December 31, 2011 | | |
| | Unrealized gain (loss) | | Foreign currency | | | | | |
| | on marketable securities | | translation adjustments | | Total | | |
Balance at January 1, 2011 | | $ | -6 | | $ | -142 | | $ | -148 | | |
Other comprehensive income (loss) before reclassifications | | | 19 | | | -67 | | | -48 | | |
Amount reclassified from AOCI | | | -4 | | | 53 | | | 49 | | |
Balance at December 31, 2011 | | $ | 9 | | $ | -156 | | $ | -147 | | |
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The following table presents the classification and amount of the reclassifications from accumulated other comprehensive loss to the consolidated statement of operations (in thousands): |
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| | Years Ended December 31, | | Statement of Operations |
| | 2013 | | 2012 | | 2011 | | Location |
Unrealized gain (loss) on marketable securities | | $ | - | | $ | 4 | | $ | 4 | | Other income (expense), net |
Foreign currency translation adjustments | | | - | | | - | | | -53 | | Other income (expense), net |
| | $ | - | | $ | 4 | | $ | -49 | | Net income (loss) |
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Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements |
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In February 2013, the FASB issued amendments to the accounting guidance for presentation of comprehensive income to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments do not change the current requirements for reporting net income or other comprehensive income, but do require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where the net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about these amounts. For public companies, these amendments are effective prospectively for reporting periods beginning after December 15, 2012. Other than a change in presentation, the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
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In July 2013, the FASB issued guidance to address the diversity in practice related to the financial statement presentation of unrecognized tax benefits as either a reduction of a deferred tax asset or a liability when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. This guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
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