Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'MICREL INC |
Entity Central Index Key | '0000932111 |
Document Type | '10-Q |
Document Period End Date | 31-Mar-14 |
Amendment Flag | 'false |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 56,474,252 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $26,957 | $23,787 |
Restricted cash | 1,116 | 1,116 |
Short-term investments | 63,286 | 64,806 |
Accounts receivable, less allowances: 2014, $846; 2013, $760 | 35,934 | 29,437 |
Inventories | 41,989 | 43,201 |
Prepaid taxes | 878 | 4,513 |
Prepaid expenses and other | 2,324 | 2,698 |
Deferred income taxes | 22,321 | 21,662 |
Total current assets | 194,805 | 191,220 |
LONG-TERM INVESTMENTS | 4,325 | 4,195 |
PROPERTY, PLANT AND EQUIPMENT, NET | 55,966 | 57,779 |
LONG-TERM PREPAID TAXES | 1,725 | 0 |
GOODWILL | 8,655 | 8,554 |
INTANGIBLE ASSETS, NET | 10,910 | 11,749 |
DEFERRED INCOME TAXES | 1,975 | 1,581 |
OTHER ASSETS | 1,583 | 1,046 |
TOTAL | 279,944 | 276,124 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 14,427 | 13,502 |
Accrued liabilities | 13,343 | 12,874 |
Deferred income on shipments to distributors | 28,989 | 27,026 |
Total current liabilities | 56,759 | 53,402 |
LONG-TERM INCOME TAXES PAYABLE | 3,692 | 3,575 |
LONG-TERM DEFERRED INCOME TAXES | 1,220 | 973 |
OTHER LONG-TERM LIABILITIES | 201 | 201 |
Total liabilities | 61,872 | 58,151 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Preferred stock, no par value - authorized: 5,000,000 shares; issued and outstanding: none | 0 | 0 |
Common stock, no par value - authorized: 250,000,000 shares; issued and outstanding: 2014 - 56,474,252 shares; 2013 - 56,441,346 shares | 544 | 0 |
Accumulated other comprehensive loss | -240 | -320 |
Retained earnings | 217,768 | 218,293 |
Shareholders' Equity | 218,072 | 217,973 |
TOTAL | $279,944 | $276,124 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowances for accounts receivable | $846 | $760 |
Preferred stock, par value | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | ' | ' |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 56,474,252 | 56,441,346 |
Common stock, shares outstanding | 56,474,252 | 56,441,346 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Income Statement [Abstract] | ' | ' | ||
NET REVENUES | $59,857 | $59,733 | ||
COST OF REVENUES | 28,638 | [1] | 28,653 | [1] |
GROSS PROFIT | 31,219 | 31,080 | ||
OPERATING EXPENSES: | ' | ' | ||
Research and development | 15,481 | [1] | 13,771 | [1] |
Selling, general and administrative | 12,436 | [1] | 11,861 | [1] |
Total operating expenses | 27,917 | 25,632 | ||
INCOME FROM OPERATIONS | 3,302 | 5,448 | ||
OTHER INCOME (EXPENSE): | ' | ' | ||
Interest income | 103 | 126 | ||
Other income (expense), net | -72 | -91 | ||
Total other income (expense), net | 31 | 35 | ||
INCOME BEFORE INCOME TAXES | 3,333 | 5,483 | ||
PROVISION FOR INCOME TAXES | 1,044 | 238 | ||
NET INCOME | $2,289 | $5,245 | ||
NET INCOME PER SHARE: | ' | ' | ||
Basic (Per Share) | $0.04 | $0.09 | ||
Diluted (Per Share) | $0.04 | $0.09 | ||
CASH DIVIDENDS DECLARED PER COMMON SHARE | $0.05 | $0 | ||
WEIGHTED AVERAGE SHARES USED IN COMPUTING PER SHARE AMOUNTS: | ' | ' | ||
Basic (Shares) | 56,388 | 58,270 | ||
Diluted (Shares) | 57,208 | 59,030 | ||
[1] | Share-based compensation expense included in:Cost of revenues$234B $244Research and development690B 652Selling, general and administrative798B 723 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income (Parenthetical) (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Share-based compensation expense included in: | ' | ' | ||
Cost of revenues | $28,638 | [1] | $28,653 | [1] |
Research and development | 15,481 | [1] | 13,771 | [1] |
Selling, general and administrative | 12,436 | [1] | 11,861 | [1] |
Share-Based Compensation Expense | ' | ' | ||
Share-based compensation expense included in: | ' | ' | ||
Cost of revenues | 234 | 244 | ||
Research and development | 690 | 652 | ||
Selling, general and administrative | $798 | $723 | ||
[1] | Share-based compensation expense included in:Cost of revenues$234B $244Research and development690B 652Selling, general and administrative798B 723 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
NET INCOME | $2,289 | $5,245 |
Other comprehensive income: | ' | ' |
Unrealized gains on investments | 122 | 384 |
Reclassification adjustment for a realized loss on investment included in other expense | 0 | 26 |
Income taxes | -42 | -140 |
Other comprehensive income, net of taxes | 80 | 270 |
COMPREHENSIVE INCOME | $2,369 | $5,515 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $2,289 | $5,245 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 3,469 | 3,404 |
Share-based compensation expense | 1,722 | 1,619 |
Excess tax benefits from stock-based awards | -267 | -89 |
Deferred income tax provision | -849 | -833 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | -6,497 | -3,757 |
Inventories | 1,204 | 466 |
Prepaid taxes | 1,641 | 1,244 |
Prepaid expenses and other assets | 12 | -536 |
Accounts payable | 1,213 | -3,817 |
Income taxes payable | 117 | 583 |
Accrued liabilities and other long-term liabilities | 409 | 1,653 |
Deferred income on shipments to distributors | 1,963 | 2,544 |
Net cash provided by operating activities | 6,426 | 7,726 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property, plant and equipment | -1,321 | -1,551 |
Purchases of investments | -17,265 | -9,037 |
Proceeds from sale and maturities of investments | 18,778 | 29,500 |
Change in restricted cash | 0 | 102 |
Net cash provided by investing activities | 192 | 19,014 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from the issuance of common stock | 2,351 | 1,508 |
Repurchases of common stock | -3,000 | 0 |
Payment of cash dividends | -2,814 | 0 |
Purchase of stock for withholding taxes on vested restricted stock | -252 | -134 |
Excess tax benefits from stock-based awards | 267 | 89 |
Net cash (used in) provided by financing activities | -3,448 | 1,463 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 3,170 | 28,203 |
CASH AND CASH EQUIVALENTS - Beginning of period | 23,787 | 27,281 |
CASH AND CASH EQUIVALENTS - End of period | $26,957 | $55,484 |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Accounting Policies [Abstract] | ' | |||||
SIGNIFICANT ACCOUNTING POLICIES | ' | |||||
SIGNIFICANT ACCOUNTING POLICIES | ||||||
Interim Financial Information - The accompanying condensed consolidated financial statements of Micrel, Incorporated and its wholly-owned subsidiaries (together “Micrel” or the “Company”) as of March 31, 2014 and for the three months ended March 31, 2014 and 2013 are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair statement of its financial position, operating results, comprehensive income and cash flows for the interim periods presented. Operating results and cash flows for interim periods are not necessarily indicative of results for the entire year. The Condensed Consolidated Balance Sheet as of December 31, 2013, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted (“GAAP”) in the United States of America. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. These financial statements should also be read in conjunction with the Company’s critical accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and those included in this Form 10-Q below. | ||||||
Net Income Per Share - Basic net income per share is computed by dividing net income by the number of weighted-average common shares outstanding. Diluted net income per share reflects potential dilution from outstanding stock options and restricted stock units ("RSUs") using the treasury stock method. Reconciliation of weighted-average shares used in computing basic and diluted net income per share is as follows (in thousands): | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Weighted average common shares outstanding | 56,388 | 58,270 | ||||
Dilutive effect of stock options and restricted stock units | 820 | 760 | ||||
Shares used in computing diluted net income per share | 57,208 | 59,030 | ||||
For the three months ended March 31, 2014 and 2013, 4.7 million and 5.3 million shares underlying stock options, respectively, have been excluded from the weighted-average number of common shares outstanding for the diluted net income per share computations as they were anti-dilutive. | ||||||
Goodwill - Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. Goodwill is measured and tested for impairment annually at the reporting unit level during the last quarter of the Company’s fiscal year, or more frequently if the Company believes indicators of impairment exist. Events that could trigger a more frequent impairment review may include adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. | ||||||
On April 2, 2012, the Company acquired PhaseLink™ Company Limited (“Phaselink”) and recorded $6.1 million of goodwill as the purchase price exceeded the fair value allocated to net tangible assets and identifiable intangible assets. On September 9, 2013, the Company acquired specific net assets of Discera Inc. (“Discera”) and recorded $2.5 million of goodwill as the purchase price exceeded the fair value allocated to net tangible assets and identifiable intangible assets. During the first quarter of 2014, goodwill recorded from the Discera transaction was increased by approximately $0.1 million to $2.6 million. The goodwill for each acquisition was allocated to the timing and communications reporting unit and is reviewed annually in October or whenever events or circumstances occur which indicate that goodwill might be impaired. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
RECENTLY ISSUED ACCOUNTING STANDARDS | ' |
RECENTLY ISSUED ACCOUNTING STANDARDS | |
In April 2014, the Financial Accounting Standards Board issued an accounting standards update to change the requirements for reporting discontinued operations. This guidance modifies the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity's operations and financial results. The guidance requires expanded disclosures for discontinued operations for the assets, liabilities, revenues, and expenses of discontinued operations, and also requires an entity to disclose the pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. The Company is required to adopt this standard for its interim and annual periods beginning after December 15, 2014. The Company is currently evaluating the impact of adopting this guidance. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
SHARE-BASED COMPENSATION | ' | |||||||
SHARE-BASED COMPENSATION | ||||||||
Share-based compensation expense is measured at the grant date based on the fair value of the award and is recognized over the employee’s requisite service period. The following table summarizes total share-based compensation expense included in the Condensed Consolidated Statement of Operations (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Cost of revenues | $ | 234 | $ | 244 | ||||
Research and development | 690 | 652 | ||||||
Selling, general and administrative | 798 | 723 | ||||||
Pre-tax share-based compensation expense | 1,722 | 1,619 | ||||||
Less income tax effect | (549 | ) | (550 | ) | ||||
Net share-based compensation expense | $ | 1,173 | $ | 1,069 | ||||
During the three months ended March 31, 2014, the Company granted 0.2 million stock options at a weighted average fair value of $2.79. During the three months ended March 31, 2013, the Company granted 0.2 million stock options at a weighted average fair value of $2.91 per share. The fair value of the Company’s stock options granted under the Company’s option plans was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Expected term (years) | 6.1 | 5.9 | ||||||
Stock volatility | 31 | % | 33.5 | % | ||||
Risk free interest rates | 2.1 | % | 1 | % | ||||
Dividends during expected terms | 1.8 | % | 1.6 | % | ||||
The Company also grants RSUs to its employees. In the three months ended March 31, 2014 and 2013, the Company granted 0.2 million and 0.1 million RSUs, respectively, at weighted average fair values of $9.81 and $10.07, respectively. | ||||||||
As of March 31, 2014, there was $6.5 million of total unrecognized share-based compensation related to non-vested stock option awards and $9.0 million related to non-vested RSUs, which are expected to be recognized over a weighted-average period of 2.8 and 3.1 years, respectively. Total share-based compensation expense capitalized as part of inventory as of March 31, 2014 and December 31, 2013 was $0.1 million and $0.2 million, respectively. | ||||||||
Under the Company’s Employee Stock Purchase Plan (“ESPP”), eligible employees are permitted to have salary withholdings to purchase shares of Common Stock at a price equal to 95% of the market value of the stock at the end of each three-month offer period, subject to an annual limitation. The ESPP is considered non-compensatory per current share-based compensation accounting guidelines. |
Investments
Investments | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||||||||||
Investments purchased with remaining maturity dates of less than three months are classified as cash equivalents. Investments are classified either as short-term or as long-term based on maturities and the Company’s intent with regard to those securities (expectations of sales and redemptions). Short-term investments as of March 31, 2014 consisted primarily of liquid municipal and corporate debt instruments with maturities ranging from less than one month to less than two years and were classified as available-for-sale securities. Long-term investments as of March 31, 2014 consisted of auction-rate notes secured by student loans and were classified as available-for-sale securities. Available-for-sale securities are stated at market value with unrealized gains and losses included in accumulated other comprehensive loss, a component of shareholders' equity. Unrealized losses are charged against income when a decline in the fair market value of an individual security is determined to be other than temporary. Realized gains and losses on investments are included in other income or expense. | ||||||||||||||||||||||||||||||||
A summary of the Company’s short-term investments at March 31, 2014 and December 31, 2013 was as follows (in thousands): | ||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
Cost | Gross Unrealized | Gross Unrealized | Fair | Cost | Gross Unrealized | Gross Unrealized Losses | Fair | |||||||||||||||||||||||||
Gains | Losses | Value | Gains | Value | ||||||||||||||||||||||||||||
Municipal Securities | $ | 15,163 | $ | 2 | $ | — | $ | 15,165 | $ | 13,858 | $ | — | $ | (2 | ) | $ | 13,856 | |||||||||||||||
Corporate Debt Securities | 37,145 | — | (1 | ) | 37,144 | 36,947 | 10 | — | 36,957 | |||||||||||||||||||||||
Commercial Paper | 10,976 | 1 | — | 10,977 | 13,991 | 2 | — | 13,993 | ||||||||||||||||||||||||
Total | $ | 63,284 | $ | 3 | $ | (1 | ) | $ | 63,286 | $ | 64,796 | $ | 12 | $ | (2 | ) | $ | 64,806 | ||||||||||||||
As of March 31, 2014, the Company had no short-term investments that have been in a significant continuous unrealized loss position for more than twelve months. | ||||||||||||||||||||||||||||||||
A summary of the Company’s long-term investments at March 31, 2014 and December 31, 2013 was as follows (in thousands): | ||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
Cost | Gross Unrealized | Gross Unrealized | Fair | Cost | Gross Unrealized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||||||||||||
Auction Rate Notes | $ | 4,700 | $ | — | $ | (375 | ) | $ | 4,325 | $ | 4,700 | $ | — | $ | (505 | ) | $ | 4,195 | ||||||||||||||
As of March 31, 2014, the Company had $4.7 million of auction-rate notes. Auction-rate notes are securities that are structured with short-term interest rate reset dates of generally less than ninety days, but with contractual maturities that can be in excess of ten years. At the end of each reset period, which occurs every seven or twenty-eight days for the securities held by the Company, investors can sell or continue to hold the securities at par. As a result of sell orders exceeding buy orders, auctions for the student loan-backed notes held by the Company have failed as of March 31, 2014. To date the Company has collected all interest receivable on all of its auction-rate notes when due and expects to continue to do so in the future. The principal associated with failed auctions will not be accessible until a successful auction occurs, a buyer is found outside of the auction process, the issuers redeem the securities, the issuers repay principal over time from cash flows prior to final maturity or final payments come due according to contractual maturities ranging from 18 to 34 years. As a result, the Company has classified all auction-rate notes as long-term investments as of March 31, 2014 and December 31, 2013. In the event of a failed auction, the notes bear interest at a predetermined maximum rate based on the credit rating of notes as determined by one or more nationally recognized statistical rating organizations. For the auction-rate notes held by the Company as of March 31, 2014 and December 31, 2013, the maximum interest rate is generally one month LIBOR plus 1.5% and 2.5%, respectively, based on the notes’ rating as of that date. | ||||||||||||||||||||||||||||||||
To determine the fair value of financial instruments, the Company uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below: | ||||||||||||||||||||||||||||||||
• | Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||
• | Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||||||||||
• | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s short-term investments 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 other significant observable inputs. | ||||||||||||||||||||||||||||||||
The types of instruments valued based on unobservable inputs consist of the auction-rate notes held by the Company. Such instruments are classified within Level 3 of the fair value hierarchy. The Company estimated the fair value of these auction-rate notes using a discounted cash flow model incorporating assumptions that market participants would use in their estimates of fair value. Some of these assumptions include estimates for interest rates, timing and amount of cash flows and expected holding periods of the auction-rate securities. | ||||||||||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis as of March 31, 2014 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||||||||||||||
for Identical | Level 2 | Inputs | ||||||||||||||||||||||||||||||
Assets | Level 3 | |||||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||||||
Money Market Funds (1) | $ | 7,150 | $ | — | $ | — | $ | 7,150 | ||||||||||||||||||||||||
Corporate Debt Securities (2) | — | 37,144 | — | 37,144 | ||||||||||||||||||||||||||||
Commercial Paper (3) | — | 13,478 | — | 13,478 | ||||||||||||||||||||||||||||
Municipal Securities (2) | — | 15,165 | — | 15,165 | ||||||||||||||||||||||||||||
Auction-rate notes (4) | — | — | 4,325 | 4,325 | ||||||||||||||||||||||||||||
Total | $ | 7,150 | $ | 65,787 | $ | 4,325 | $ | 77,262 | ||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis as of December 31, 2013 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||||||||||||||
for Identical | Level 2 | Inputs | ||||||||||||||||||||||||||||||
Assets | Level 3 | |||||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||||||
Money Market Funds (1) | $ | 16,945 | $ | — | $ | — | $ | 16,945 | ||||||||||||||||||||||||
Corporate Debt Securities (2) | — | 36,957 | — | 36,957 | ||||||||||||||||||||||||||||
Commercial Paper (2) | — | 13,993 | — | 13,993 | ||||||||||||||||||||||||||||
Municipal Securities (2) | — | 13,856 | — | 13,856 | ||||||||||||||||||||||||||||
Auction-rate notes (4) | — | — | 4,195 | 4,195 | ||||||||||||||||||||||||||||
Total | $ | 16,945 | $ | 64,806 | $ | 4,195 | $ | 85,946 | ||||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
(1) Included in cash and cash equivalents | ||||||||||||||||||||||||||||||||
(2) Included in short-term investments | ||||||||||||||||||||||||||||||||
(3) Included in short-term investments and cash and cash equivalents | ||||||||||||||||||||||||||||||||
(4) Included in long-term investments | ||||||||||||||||||||||||||||||||
There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy. | ||||||||||||||||||||||||||||||||
The Company has used a combination of discounted cash flow models and observable transactions for similar securities to determine the estimated fair value of its investment in auction-rate notes as of March 31, 2014 and December 31, 2013. The assumptions used in preparing the discounted cash flow model include estimates for interest rates, estimates for discount rates using yields of comparable traded instruments adjusted for illiquidity and other risk factors, amount of cash flows and expected holding periods of the auction-rate notes. Based on this assessment of fair value, as of March 31, 2014, the Company determined there was a cumulative decline in the fair value of its auction-rate notes and recorded a $0.2 million net of tax ($0.4 million pre-tax) temporary impairment of these securities to accumulated other comprehensive income, a component of shareholders’ equity. | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014, the changes in the Company’s Level 3 securities (consisting of auction-rate notes) were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Measurements | ||||||||||||||||||||||||||||||||
Using Significant | ||||||||||||||||||||||||||||||||
Unobservable | ||||||||||||||||||||||||||||||||
Inputs | ||||||||||||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||||||||||
Beginning balance, December 31, 2013 | $ | 4,195 | ||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||
Total unrealized gains, before tax, included in other comprehensive income | 130 | |||||||||||||||||||||||||||||||
Settlements | — | |||||||||||||||||||||||||||||||
Ending balance, March 31, 2014 | $ | 4,325 | ||||||||||||||||||||||||||||||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
Inventories consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Finished goods | $ | 10,575 | $ | 11,592 | ||||
Work in process | 30,161 | 30,109 | ||||||
Raw materials | 1,253 | 1,500 | ||||||
Total inventories | $ | 41,989 | $ | 43,201 | ||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Manufacturing equipment | $ | 176,986 | $ | 176,730 | ||||
Land | 8,101 | 8,101 | ||||||
Buildings and improvements | 54,214 | 53,915 | ||||||
Office furniture and research equipment | 18,164 | 17,791 | ||||||
257,465 | 256,537 | |||||||
Accumulated depreciation | (201,499 | ) | (198,758 | ) | ||||
Total property, plant and equipment, net | $ | 55,966 | $ | 57,779 | ||||
Depreciation expense for the three months ended March 31, 2014 and 2013 was $2.7 million and $3.0 million, respectively. |
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
INTANGIBLE ASSETS | ' | |||||||||||||||||||||||
INTANGIBLE ASSETS | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
The Company reviews its purchased intangible assets with finite lives for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of these intangible assets is assessed based on the estimated undiscounted future cash flows expected to result from the use of the asset. If the undiscounted future cash flows are less than the carrying amount, the purchased intangible assets with finite lives are considered to be impaired. The amount of the impairment is measured as the difference between the carrying amount of these assets and the fair value. | ||||||||||||||||||||||||
The Company's business combinations have included the purchase of in-process research and development assets that are not amortizable until the underlying project is complete. The Company assesses that its in-process research and development project is complete when all material research and development costs have been incurred and no significant risks remain. The Company reviews the carrying value of indefinite-lived intangible assets for impairment at least annually during the last quarter of its fiscal year, or more frequently if it believes indicators of impairment exist. | ||||||||||||||||||||||||
The following table sets forth the components of intangible assets as follows (in thousands): | ||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Carrying Amount | Carrying Amount | |||||||||||||||||||||||
Developed and core technology | $ | 7,443 | $ | (1,192 | ) | $ | 6,251 | $ | 7,783 | $ | (986 | ) | $ | 6,797 | ||||||||||
Customer relationships | 3,800 | (756 | ) | 3,044 | 3,800 | (552 | ) | 3,248 | ||||||||||||||||
Trademarks | 610 | (312 | ) | 298 | 610 | (284 | ) | 326 | ||||||||||||||||
Non-competition agreements | 40 | (23 | ) | 17 | 450 | (372 | ) | 78 | ||||||||||||||||
In-process research and development | 1,300 | — | 1,300 | 1,300 | — | 1,300 | ||||||||||||||||||
$ | 13,193 | $ | (2,283 | ) | $ | 10,910 | $ | 13,943 | $ | (2,194 | ) | $ | 11,749 | |||||||||||
The above intangible assets acquired in connection with the Discera acquisition in 2013 of $2.8 million, PhaseLink acquisition in 2012 of $8.3 million, and other acquired intangible assets of $2.1 million are amortized over their estimated useful lives ranging from 1 to 10 years using the straight-line method. Total intangible amortization expense for the three months ended March 31, 2014 and 2013 was $0.5 million and $0.3 million, respectively. The Company expects the completion of development projects for Phaselink in 2014 and Discera in 2015 and expects to begin amortizing the related in-process research and development in those respective years. | ||||||||||||||||||||||||
The estimated future amortization expense of intangible assets as of March 31, 2014 was as follows (in thousands): | ||||||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||||||
2014 (remaining nine months) | $ | 1,145 | ||||||||||||||||||||||
2015 | 1,599 | |||||||||||||||||||||||
2016 | 1,510 | |||||||||||||||||||||||
2017 | 1,281 | |||||||||||||||||||||||
2018 | 1,223 | |||||||||||||||||||||||
Thereafter | 4,152 | |||||||||||||||||||||||
$ | 10,910 | |||||||||||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accrued Liabilities, Current [Abstract] | ' | |||||||
ACCRUED LIABILITIES | ' | |||||||
ACCRUED LIABILITIES | ||||||||
Accrued liabilities consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued compensation | $ | 6,538 | $ | 5,767 | ||||
Accrued commissions | 1,590 | 1,666 | ||||||
Accrued restructuring | 277 | 902 | ||||||
Other accrued liabilities | 4,938 | 4,539 | ||||||
Total accrued liabilities | $ | 13,343 | $ | 12,874 | ||||
Borrowing_Arrangements
Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
BORROWING ARRANGEMENTS | ' |
BORROWING ARRANGEMENTS | |
Under the terms of an unsecured credit facility with Bank of the West that expires on April 30, 2015, the Company has a $5.0 million line of credit available for general working capital needs, which includes a $5.0 million letter of credit sub-facility including a $2.0 million foreign exchange sub-facility. Interest rates under the facility are based on one of three interest rates, at the Company’s option: (1) a variable alternate base rate plus 1.0%, the alternate base rate being the greater of (x) Bank of the West’s prime rate, (y) the Fed Funds Rate plus 0.5% or (z) daily adjusted one-month LIBOR plus 1.0%; (2) floating one-month LIBOR plus 2.0% or (3) fixed LIBOR for one, two, three or six month periods, plus 2.0%. The credit agreement includes certain restrictive covenants and, as of March 31, 2014, the Company was in compliance with such covenants. As of March 31, 2014, the Company had no borrowings under the line of credit facility. | |
The Company's borrowing arrangements include a provision for the issuance of commercial or standby letters of credit by the bank on behalf of the Company. The letters of credit are issued to guarantee payments for the Company's workers compensation program. As of March 31, 2014, there was $0.3 million in letters of credit outstanding. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
DERIVATIVE FINANCIAL INSTRUMENTS | ' |
DERIVATIVE FINANCIAL INSTRUMENTS | |
During the three months ended March 31, 2014 and 2013, the Company was not party to any derivative instrument arrangements. At March 31, 2014, there were no derivative instrument contracts outstanding. |
Major_Customers
Major Customers | 3 Months Ended |
Mar. 31, 2014 | |
Risks and Uncertainties [Abstract] | ' |
MAJOR CUSTOMERS | ' |
MAJOR CUSTOMERS | |
During the three months ended March 31, 2014, distributors A and B accounted for 28% and 23% of total net revenues, respectively. During the three months ended March 31, 2013, distributors A and B accounted for 31% and 21% of total net revenues, respectively. These distributors sell Micrel's products to many customers across various end markets. | |
At March 31, 2014, distributors A, B, and C accounted for 33%, 19%, and 12% respectively, of total accounts receivable. At December 31, 2013, distributors A and B accounted for 36% and 11%, respectively, of total accounts receivable. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Segment Reporting [Abstract] | ' | ||||||
SEGMENT REPORTING | ' | ||||||
SEGMENT REPORTING | |||||||
The Company currently operates in one segment: the design, manufacturing, marketing and sale of semiconductor products. The chief operating decision maker, the President and CEO, evaluates the financial performance of the Company and allocates resources on a company-wide basis. | |||||||
The Company generates revenue from four product groups: Linear and Power; Timing and Communications; LAN; and Foundry. The following table sets forth the net revenues attributable to our four product groups as a percentage of total net revenues. | |||||||
Three Months Ended | |||||||
Net Revenues by Product Group | March 31, | ||||||
2014 | 2013 | ||||||
Net Revenues: | |||||||
Linear and Power | 55 | % | 57 | % | |||
Timing and Communications | 22 | 20 | |||||
LAN | 20 | 21 | |||||
Foundry | 3 | 2 | |||||
Total net revenues | 100 | % | 100 | % | |||
The Company recorded revenue from customers throughout the United States, Canada and Mexico (collectively referred to as “North America”); the United Kingdom, Italy, Germany, France, Israel, Sweden, Hungary, Austria, Finland, Switzerland and other European countries (collectively referred to as “Europe”); Korea, Taiwan, Singapore, China, Japan, Hong Kong, Malaysia and other Asian countries (collectively referred to as “Asia”). Revenues by major geographic area are based on the geographic location of the OEMs or the distributors who have purchased the Company's products. The geographic locations of the Company's distributors may be different from the geographic locations of the end customers. | |||||||
The following table sets forth the net revenues by geographic region as a percentage of total net revenues, for the periods presented: | |||||||
Net Revenues by Geographic Region | Three Months Ended | ||||||
March 31, | |||||||
2014 | 2013 | ||||||
Net Revenues: | |||||||
North America | 27 | % | 31 | % | |||
Asia | 57 | 56 | |||||
Europe | 16 | 13 | |||||
Total net revenues | 100 | % | 100 | % |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
From time to time, claims have been filed by or have arisen against the Company in its normal course of business. Generally, litigation is subject to inherent uncertainties, and the Company can provide no assurance that it will prevail in any particular lawsuit. Accordingly, litigation could result in substantial costs and diversion of resources and could have a material adverse effect on the Company’s financial condition, results of operations or cash flows. | |
As of March 31, 2014, the Company has not recorded any accrual for contingent liabilities associated with the legal proceedings described above based on the belief that liabilities, while possible, are not probable. Further, ranges of possible losses in these matters cannot be reasonably estimated at this time. |
Share_Repurchase_Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2014 | |
Share Repurchase Program [Abstract] | ' |
SHARE REPURCHASE PROGRAM | ' |
SHARE REPURCHASE PROGRAM | |
On October 24, 2013, the Company announced that its Board of Directors authorized the repurchase of $30.0 million of the Company’s common stock, which increased the total approval for repurchase since February 2010 to $120.0 million. Under our stock repurchase program, as of March 31, 2014, we have remaining authorization to repurchase $22.8 million of our common stock. | |
Shares of common stock purchased pursuant to the repurchase program are canceled from outstanding shares upon repurchase. Share repurchases are recorded as a reduction to common stock to the extent available. Any amounts repurchased which are in excess of the existing total common stock balance are recorded as a reduction of retained earnings. Share repurchases are intended to reduce the number of outstanding shares of common stock to increase shareholder value and offset dilution from the Company’s stock incentive plans and ESPP. During the three months ended March 31, 2014, the Company repurchased 0.3 million shares of its common stock for an aggregate price of $3.0 million. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The income tax provision for the three months ended March 31, 2014, as a percentage of income before taxes was 31.3%. | |
The income tax provision for the three months ended March 31, 2013, as a percentage of income before taxes, was 4.3%. The income tax provision for this period included a $1.4 million benefit for 2012 research tax credits as a tax law was enacted on January 2, 2013 to retroactively reinstate the federal research and development tax credit to January 1, 2012. | |
As of March 31, 2014, the gross amount of unrecognized tax benefits for uncertain tax positions was $13.4 million and the net amount, reduced for the federal effects of potential state tax exposures, was $9.7 million. If these uncertain tax positions are sustained upon tax authority audit, or otherwise become certain, a net $3.8 million would favorably affect the Company’s tax provision in such future periods. The remaining $5.9 million would increase deferred tax assets on which a valuation allowance is placed and would be expected to also increase by a corresponding amount. The $3.8 million liability is included in long-term income taxes payable for $3.7 million and a reduction of prepaid taxes for $0.1 million. The Company does not anticipate a significant change to unrecognized tax benefits for uncertain income tax positions within the next 12 months. | |
The Company continues to recognize interest and penalties related to income tax matters as part of the income tax provision. As of March 31, 2014 and December 31, 2013, the Company had $0.4 million and $0.4 million, respectively, accrued for interest and none accrued for penalties in both periods. These accruals are included as a component of long-term income taxes payable. | |
The Company is required to file U.S. federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The Company may be subject to examination by the Internal Revenue Service (“IRS”) for calendar years 2010 and forward. Significant state tax jurisdictions include California, Massachusetts and Texas, and generally, the Company is subject to routine examination for years 2006 and forward in these jurisdictions. In addition, any research and development credit carryforwards that were generated in prior years and utilized in these years may also be subject to examination by respective state taxing authorities. Generally, the Company is subject to routine examination for years 2005 and forward in various immaterial foreign tax jurisdictions in which it operates. | |
Deferred tax assets and liabilities result primarily from temporary differences between book and tax bases of assets and liabilities and state research and development credit carryforwards. The Company had net current deferred tax assets of $22.3 million and net long-term deferred tax assets of $0.8 million as of March 31, 2014. The Company must regularly assess the likelihood that future taxable income levels will be sufficient to ultimately realize the tax benefits of these deferred tax assets. The Company currently believes that future taxable income levels will be sufficient to realize the tax benefits of these deferred tax assets and has not established a valuation allowance except for a valuation allowance of $9.3 million and $9.0 million that was established against state deferred tax assets as of March 31, 2014 and December 31, 2013, respectively, due to California tax law changes in 2012 which require mandatory single sales factor apportionment in California for most multi-state taxpayers for tax years beginning on or after January 1, 2013. Should the Company determine that future realization of these tax benefits is not more likely than not, additional valuation allowances would be established which would increase the Company's tax provision in the period of such determination. | |
Included in net deferred tax assets are credit carryforwards. The Company has available state research and development credit carryforwards of approximately $24.9 million, of which approximately $2.3 million represents pre-ownership change carryforwards subject to Section 382 annual limitation. The state research credit carryforwards are not subject to expiration and may be carried forward indefinitely until utilized. |
Dividends
Dividends | 3 Months Ended |
Mar. 31, 2014 | |
Dividends, Common Stock [Abstract] | ' |
DIVIDENDS | ' |
DIVIDENDS | |
On January 30, 2014, the Company’s Board of Directors declared a cash dividend of $0.05 per share of common stock. The aggregate payment of $2.8 million was made on February 27, 2014 to shareholders of record as of February 13, 2014. |
Restructuring
Restructuring | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
RESTRUCTURING CHARGES | ' | |||
RESTRUCTURING CHARGES | ||||
In the fourth quarter of 2013, the Company recorded restructuring charges of $1.4 million related to workforce reductions. The Company paid $0.6 million related to severance costs in the quarter ended March 31, 2014. The following table summarizes the activity related to the accrual for restructuring charges for the quarter ended March 31, 2014 (in thousands): | ||||
Amount | ||||
Balance at December 31, 2013 | $ | 902 | ||
Payments | (625 | ) | ||
Balance at March 31, 2014 | $ | 277 | ||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
On April 24, 2014, the Company’s Board of Directors declared a cash dividend of $0.05 per outstanding share of common stock payable on May 22, 2014 to shareholders of record at the close of business on May 8, 2014. This dividend will be recorded in the second quarter of 2014 and is expected to be approximately $2.8 million. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Accounting Policies [Abstract] | ' | |||||
Interim Financial Information | ' | |||||
Interim Financial Information - The accompanying condensed consolidated financial statements of Micrel, Incorporated and its wholly-owned subsidiaries (together “Micrel” or the “Company”) as of March 31, 2014 and for the three months ended March 31, 2014 and 2013 are unaudited. In the opinion of management, the condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) that management considers necessary for a fair statement of its financial position, operating results, comprehensive income and cash flows for the interim periods presented. Operating results and cash flows for interim periods are not necessarily indicative of results for the entire year. The Condensed Consolidated Balance Sheet as of December 31, 2013, was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted (“GAAP”) in the United States of America. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. These financial statements should also be read in conjunction with the Company’s critical accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and those included in this Form 10-Q below. | ||||||
Net Income Per Common and Equivalent Share | ' | |||||
Net Income Per Share - Basic net income per share is computed by dividing net income by the number of weighted-average common shares outstanding. Diluted net income per share reflects potential dilution from outstanding stock options and restricted stock units ("RSUs") using the treasury stock method. Reconciliation of weighted-average shares used in computing basic and diluted net income per share is as follows (in thousands): | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Weighted average common shares outstanding | 56,388 | 58,270 | ||||
Dilutive effect of stock options and restricted stock units | 820 | 760 | ||||
Shares used in computing diluted net income per share | 57,208 | 59,030 | ||||
For the three months ended March 31, 2014 and 2013, 4.7 million and 5.3 million shares underlying stock options, respectively, have been excluded from the weighted-average number of common shares outstanding for the diluted net income per share computations as they were anti-dilutive. | ||||||
Goodwill | ' | |||||
Goodwill - Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. Goodwill is measured and tested for impairment annually at the reporting unit level during the last quarter of the Company’s fiscal year, or more frequently if the Company believes indicators of impairment exist. Events that could trigger a more frequent impairment review may include adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in our market capitalization. | ||||||
On April 2, 2012, the Company acquired PhaseLink™ Company Limited (“Phaselink”) and recorded $6.1 million of goodwill as the purchase price exceeded the fair value allocated to net tangible assets and identifiable intangible assets. On September 9, 2013, the Company acquired specific net assets of Discera Inc. (“Discera”) and recorded $2.5 million of goodwill as the purchase price exceeded the fair value allocated to net tangible assets and identifiable intangible assets. During the first quarter of 2014, goodwill recorded from the Discera transaction was increased by approximately $0.1 million to $2.6 million. The goodwill for each acquisition was allocated to the timing and communications reporting unit and is reviewed annually in October or whenever events or circumstances occur which indicate that goodwill might be impaired. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Accounting Policies [Abstract] | ' | |||||
Reconciliation of weighted-average shares used in computing net income per share | ' | |||||
Reconciliation of weighted-average shares used in computing basic and diluted net income per share is as follows (in thousands): | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Weighted average common shares outstanding | 56,388 | 58,270 | ||||
Dilutive effect of stock options and restricted stock units | 820 | 760 | ||||
Shares used in computing diluted net income per share | 57,208 | 59,030 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Share-based compensation expense | ' | |||||||
The following table summarizes total share-based compensation expense included in the Condensed Consolidated Statement of Operations (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Cost of revenues | $ | 234 | $ | 244 | ||||
Research and development | 690 | 652 | ||||||
Selling, general and administrative | 798 | 723 | ||||||
Pre-tax share-based compensation expense | 1,722 | 1,619 | ||||||
Less income tax effect | (549 | ) | (550 | ) | ||||
Net share-based compensation expense | $ | 1,173 | $ | 1,069 | ||||
Stock options granted under the Company's option plans | ' | |||||||
The fair value of the Company’s stock options granted under the Company’s option plans was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Expected term (years) | 6.1 | 5.9 | ||||||
Stock volatility | 31 | % | 33.5 | % | ||||
Risk free interest rates | 2.1 | % | 1 | % | ||||
Dividends during expected terms | 1.8 | % | 1.6 | % |
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of short-term investments | ' | |||||||||||||||||||||||||||||||
A summary of the Company’s short-term investments at March 31, 2014 and December 31, 2013 was as follows (in thousands): | ||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
Cost | Gross Unrealized | Gross Unrealized | Fair | Cost | Gross Unrealized | Gross Unrealized Losses | Fair | |||||||||||||||||||||||||
Gains | Losses | Value | Gains | Value | ||||||||||||||||||||||||||||
Municipal Securities | $ | 15,163 | $ | 2 | $ | — | $ | 15,165 | $ | 13,858 | $ | — | $ | (2 | ) | $ | 13,856 | |||||||||||||||
Corporate Debt Securities | 37,145 | — | (1 | ) | 37,144 | 36,947 | 10 | — | 36,957 | |||||||||||||||||||||||
Commercial Paper | 10,976 | 1 | — | 10,977 | 13,991 | 2 | — | 13,993 | ||||||||||||||||||||||||
Total | $ | 63,284 | $ | 3 | $ | (1 | ) | $ | 63,286 | $ | 64,796 | $ | 12 | $ | (2 | ) | $ | 64,806 | ||||||||||||||
Summary of long-term investments | ' | |||||||||||||||||||||||||||||||
A summary of the Company’s long-term investments at March 31, 2014 and December 31, 2013 was as follows (in thousands): | ||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
Cost | Gross Unrealized | Gross Unrealized | Fair | Cost | Gross Unrealized | Gross Unrealized | Fair | |||||||||||||||||||||||||
Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||||||||||||
Auction Rate Notes | $ | 4,700 | $ | — | $ | (375 | ) | $ | 4,325 | $ | 4,700 | $ | — | $ | (505 | ) | $ | 4,195 | ||||||||||||||
Schedule of financial assets measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis as of March 31, 2014 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||||||||||||||
for Identical | Level 2 | Inputs | ||||||||||||||||||||||||||||||
Assets | Level 3 | |||||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||||||
Money Market Funds (1) | $ | 7,150 | $ | — | $ | — | $ | 7,150 | ||||||||||||||||||||||||
Corporate Debt Securities (2) | — | 37,144 | — | 37,144 | ||||||||||||||||||||||||||||
Commercial Paper (3) | — | 13,478 | — | 13,478 | ||||||||||||||||||||||||||||
Municipal Securities (2) | — | 15,165 | — | 15,165 | ||||||||||||||||||||||||||||
Auction-rate notes (4) | — | — | 4,325 | 4,325 | ||||||||||||||||||||||||||||
Total | $ | 7,150 | $ | 65,787 | $ | 4,325 | $ | 77,262 | ||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis as of December 31, 2013 were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||||||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||||||||||||||
for Identical | Level 2 | Inputs | ||||||||||||||||||||||||||||||
Assets | Level 3 | |||||||||||||||||||||||||||||||
Level 1 | ||||||||||||||||||||||||||||||||
Money Market Funds (1) | $ | 16,945 | $ | — | $ | — | $ | 16,945 | ||||||||||||||||||||||||
Corporate Debt Securities (2) | — | 36,957 | — | 36,957 | ||||||||||||||||||||||||||||
Commercial Paper (2) | — | 13,993 | — | 13,993 | ||||||||||||||||||||||||||||
Municipal Securities (2) | — | 13,856 | — | 13,856 | ||||||||||||||||||||||||||||
Auction-rate notes (4) | — | — | 4,195 | 4,195 | ||||||||||||||||||||||||||||
Total | $ | 16,945 | $ | 64,806 | $ | 4,195 | $ | 85,946 | ||||||||||||||||||||||||
__________ | ||||||||||||||||||||||||||||||||
(1) Included in cash and cash equivalents | ||||||||||||||||||||||||||||||||
(2) Included in short-term investments | ||||||||||||||||||||||||||||||||
(3) Included in short-term investments and cash and cash equivalents | ||||||||||||||||||||||||||||||||
(4) Included in long-term investments | ||||||||||||||||||||||||||||||||
Schedule of changes in Level 3 securities | ' | |||||||||||||||||||||||||||||||
For the three months ended March 31, 2014, the changes in the Company’s Level 3 securities (consisting of auction-rate notes) were as follows (in thousands): | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Measurements | ||||||||||||||||||||||||||||||||
Using Significant | ||||||||||||||||||||||||||||||||
Unobservable | ||||||||||||||||||||||||||||||||
Inputs | ||||||||||||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||||||||||
Beginning balance, December 31, 2013 | $ | 4,195 | ||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||||||||||||||
Total unrealized gains, before tax, included in other comprehensive income | 130 | |||||||||||||||||||||||||||||||
Settlements | — | |||||||||||||||||||||||||||||||
Ending balance, March 31, 2014 | $ | 4,325 | ||||||||||||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Finished goods | $ | 10,575 | $ | 11,592 | ||||
Work in process | 30,161 | 30,109 | ||||||
Raw materials | 1,253 | 1,500 | ||||||
Total inventories | $ | 41,989 | $ | 43,201 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, plant and equipment | ' | |||||||
Property, plant and equipment consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Manufacturing equipment | $ | 176,986 | $ | 176,730 | ||||
Land | 8,101 | 8,101 | ||||||
Buildings and improvements | 54,214 | 53,915 | ||||||
Office furniture and research equipment | 18,164 | 17,791 | ||||||
257,465 | 256,537 | |||||||
Accumulated depreciation | (201,499 | ) | (198,758 | ) | ||||
Total property, plant and equipment, net | $ | 55,966 | $ | 57,779 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | ' | |||||||||||||||||||||||
The following table sets forth the components of intangible assets as follows (in thousands): | ||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Carrying Amount | Carrying Amount | |||||||||||||||||||||||
Developed and core technology | $ | 7,443 | $ | (1,192 | ) | $ | 6,251 | $ | 7,783 | $ | (986 | ) | $ | 6,797 | ||||||||||
Customer relationships | 3,800 | (756 | ) | 3,044 | 3,800 | (552 | ) | 3,248 | ||||||||||||||||
Trademarks | 610 | (312 | ) | 298 | 610 | (284 | ) | 326 | ||||||||||||||||
Non-competition agreements | 40 | (23 | ) | 17 | 450 | (372 | ) | 78 | ||||||||||||||||
In-process research and development | 1,300 | — | 1,300 | 1,300 | — | 1,300 | ||||||||||||||||||
$ | 13,193 | $ | (2,283 | ) | $ | 10,910 | $ | 13,943 | $ | (2,194 | ) | $ | 11,749 | |||||||||||
Schedule of future amortization expenses | ' | |||||||||||||||||||||||
The estimated future amortization expense of intangible assets as of March 31, 2014 was as follows (in thousands): | ||||||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||||||
2014 (remaining nine months) | $ | 1,145 | ||||||||||||||||||||||
2015 | 1,599 | |||||||||||||||||||||||
2016 | 1,510 | |||||||||||||||||||||||
2017 | 1,281 | |||||||||||||||||||||||
2018 | 1,223 | |||||||||||||||||||||||
Thereafter | 4,152 | |||||||||||||||||||||||
$ | 10,910 | |||||||||||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accrued Liabilities, Current [Abstract] | ' | |||||||
Schedule of accrued liabilities | ' | |||||||
Accrued liabilities consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued compensation | $ | 6,538 | $ | 5,767 | ||||
Accrued commissions | 1,590 | 1,666 | ||||||
Accrued restructuring | 277 | 902 | ||||||
Other accrued liabilities | 4,938 | 4,539 | ||||||
Total accrued liabilities | $ | 13,343 | $ | 12,874 | ||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Schedule of Segment Revenue by Percent | ' | ||||||
The following table sets forth the net revenues attributable to our four product groups as a percentage of total net revenues. | |||||||
Three Months Ended | |||||||
Net Revenues by Product Group | March 31, | ||||||
2014 | 2013 | ||||||
Net Revenues: | |||||||
Linear and Power | 55 | % | 57 | % | |||
Timing and Communications | 22 | 20 | |||||
LAN | 20 | 21 | |||||
Foundry | 3 | 2 | |||||
Total net revenues | 100 | % | 100 | % | |||
Net Revenues by Geographic Region by Percent | ' | ||||||
The following table sets forth the net revenues by geographic region as a percentage of total net revenues, for the periods presented: | |||||||
Net Revenues by Geographic Region | Three Months Ended | ||||||
March 31, | |||||||
2014 | 2013 | ||||||
Net Revenues: | |||||||
North America | 27 | % | 31 | % | |||
Asia | 57 | 56 | |||||
Europe | 16 | 13 | |||||
Total net revenues | 100 | % | 100 | % |
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Restructuring Cost and Reserve (Line Items) | ' | |||
Restructuring and Related Costs | ' | |||
The following table summarizes the activity related to the accrual for restructuring charges for the quarter ended March 31, 2014 (in thousands): | ||||
Amount | ||||
Balance at December 31, 2013 | $ | 902 | ||
Payments | (625 | ) | ||
Balance at March 31, 2014 | $ | 277 | ||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reconciliation of weighted-average shares used in computing basic and diluted net income per share | ' | ' |
Weighted average common shares outstanding | 56,388 | 58,270 |
Dilutive effect of stock options and restricted stock units | 820 | 760 |
Shares used in computing diluted net income per share | 57,208 | 59,030 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details Textual) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Significant Accounting Policies (Textual) [Abstract] | ' | ' |
Stock options excluded from the weighted-average number of common shares outstanding for the diluted net income per share computations as they were anti-dilutive | 4.7 | 5.3 |
Significant_Accounting_Policie5
Significant Accounting Policies - Goodwill (Details) (USD $) | Apr. 02, 2012 | Mar. 31, 2014 | Sep. 09, 2013 |
In Millions, unless otherwise specified | PhaseLink Acquisition [Member] | Discera, Inc. [Member] | Discera, Inc. [Member] |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Gross | $6.10 | $2.60 | $2.50 |
Goodwill, Other Changes | ' | $0.10 | ' |
ShareBased_Compensation_Detail
Share-Based Compensation (Details Textual) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Share-Based Compensation (Textual) [Abstract] | ' | ' | ' |
Stock options granted | 0.2 | 0.2 | ' |
Weighted Average Fair Value of Options Granted | $2.79 | $2.91 | ' |
Unrecognized share-based compensation related to non-vested stock option awards | $6.50 | ' | ' |
Weighted-average period for unrecognized share-based compensation | '2 years 9 months 18 days | ' | ' |
Total share-based compensation capitalized as part of inventory | 0.1 | ' | 0.2 |
Purchase shares of Common Stock with respect to market value of stock | 95.00% | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-Based Compensation (Textual) [Abstract] | ' | ' | ' |
Restricted Stock Units granted | 0.2 | 0.1 | ' |
Weighted average fair values of Restricted Stock Units granted | $9.81 | $10.07 | ' |
Unrecognized share-based compensation related to non-vested stock option awards | $9 | ' | ' |
Weighted-average period for unrecognized share-based compensation | '3 years 1 month 6 days | ' | ' |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based compensation expense | ' | ' |
Allocated Share-based Compensation Expense | $1,722 | $1,619 |
Less income tax effect | -549 | -550 |
Net share-based compensation expense | 1,173 | 1,069 |
Cost of revenues [Member] | ' | ' |
Share-based compensation expense | ' | ' |
Allocated Share-based Compensation Expense | 234 | 244 |
Research and development [Member] | ' | ' |
Share-based compensation expense | ' | ' |
Allocated Share-based Compensation Expense | 690 | 652 |
Selling, general and administrative [Member] | ' | ' |
Share-based compensation expense | ' | ' |
Allocated Share-based Compensation Expense | $798 | $723 |
ShareBased_Compensation_Detail2
Share-Based Compensation (Details 1) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock options granted under the Company's option plans | ' | ' |
Expected term (years) | '6 years 1 month 15 days | '5 years 10 months 29 days |
Stock volatility | 31.00% | 33.50% |
Risk free interest rates | 2.10% | 1.00% |
Dividends during expected terms | 1.80% | 1.60% |
Investments_Details
Investments (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Short Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | $63,284 | $64,796 |
Gross Unrealized Gains | 3 | 12 |
Gross Unrealized Losses | -1 | -2 |
Fair Value | 63,286 | 64,806 |
Short Term Investments [Member] | Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 37,145 | 36,947 |
Gross Unrealized Gains | 0 | 10 |
Gross Unrealized Losses | -1 | 0 |
Fair Value | 37,144 | 36,957 |
Short Term Investments [Member] | Commercial Paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 10,976 | 13,991 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 10,977 | 13,993 |
Short Term Investments [Member] | Municipal Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 15,163 | 13,858 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | -2 |
Fair Value | 15,165 | 13,856 |
Long Term Investments [Member] | Auction Rate Notes [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 4,700 | 4,700 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | -375 | -505 |
Fair Value | $4,325 | $4,195 |
Investments_Details_1
Investments (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | $77,262 | $85,946 | ||
Corporate Debt Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 37,144 | [1] | 36,957 | [1] |
Commercial Paper [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 13,478 | [2] | 13,993 | [1] |
Auction rate notes [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 4,325 | [3] | 4,195 | [3] |
Money Market Funds [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 7,150 | [4] | 16,945 | [4] |
Municipal Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 15,165 | [1] | 13,856 | [1] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 7,150 | 16,945 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 0 | [1] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Commercial Paper [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 0 | [2] | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Auction rate notes [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 0 | [3] | 0 | [3] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Money Market Funds [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 7,150 | [4] | 16,945 | [4] |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Municipal Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 0 | [1] | 0 | [1] |
Significant Other Observable Inputs Level 2 [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 65,787 | 64,806 | ||
Significant Other Observable Inputs Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 37,144 | [1] | 36,957 | [1] |
Significant Other Observable Inputs Level 2 [Member] | Commercial Paper [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 13,478 | [2] | 13,993 | [1] |
Significant Other Observable Inputs Level 2 [Member] | Auction rate notes [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 0 | [3] | 0 | [3] |
Significant Other Observable Inputs Level 2 [Member] | Money Market Funds [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 0 | [4] | 0 | [4] |
Significant Other Observable Inputs Level 2 [Member] | Municipal Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 15,165 | [1] | 13,856 | [1] |
Significant Unobservable Inputs Level 3 [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 4,325 | 4,195 | ||
Significant Unobservable Inputs Level 3 [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 0 | [1] | 0 | [1] |
Significant Unobservable Inputs Level 3 [Member] | Commercial Paper [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 0 | [2] | 0 | [1] |
Significant Unobservable Inputs Level 3 [Member] | Auction rate notes [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 4,325 | [3] | 4,195 | [3] |
Significant Unobservable Inputs Level 3 [Member] | Money Market Funds [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs Level 3 [Member] | Municipal Securities [Member] | ' | ' | ||
Schedule of financial assets measured at fair value on a recurring basis | ' | ' | ||
Total | $0 | [1] | $0 | [1] |
[1] | Included in short-term investments | |||
[2] | Included in short-term investments and cash and cash equivalents | |||
[3] | Included in long-term investments | |||
[4] | Included in cash and cash equivalents |
Investments_Details_Textual
Investments (Details Textual) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Short-term investments, minimum maturity period | '1 month |
Short -term investments, maximum maturity period | '2 years |
Short-term interest rate reset dates of auction rate note securities | ' less than ninety days |
Auction rate note securities with contractual maturities | 'excess of ten years |
Reset period for the securities held | 'seven or twenty-eight days |
Auction rate notes [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Comprehensive income net of tax due to auction rate notes | 0.2 |
Comprehensive income before tax due to auction rate notes | 0.4 |
Minimum [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Period for principal repayments by issuer | '18 years |
Minimum [Member] | Auction rate notes [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Maximum Interest Rate | 1.50% |
Maximum [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Period for principal repayments by issuer | '34 years |
Maximum [Member] | Auction rate notes [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Maximum Interest Rate | 2.50% |
Investments_Details_2
Investments (Details 2) (Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) [Member] | ' |
Schedule of changes in Level 3 securities | ' |
Beginning balance | $4,195 |
Transfers in and/or out of Level 3 | 0 |
Total unrealized gains before tax, included in other comprehensive income | 130 |
Settlements | 0 |
Ending balance | $4,325 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Inventory, Finished Goods, Net of Reserves | $10,575 | $11,592 |
Inventory, Work in Process, Net of Reserves | 30,161 | 30,109 |
Inventory, Raw Materials, Net of Reserves | 1,253 | 1,500 |
Total inventories | $41,989 | $43,201 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | $257,465 | $256,537 |
Accumulated depreciation | -201,499 | -198,758 |
Total property, plant and equipment, net | 55,966 | 57,779 |
Manufacturing equipment [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | 176,986 | 176,730 |
Land [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | 8,101 | 8,101 |
Buildings and improvements [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | 54,214 | 53,915 |
Office furniture and research equipment [Member] | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, Gross | $18,164 | $17,791 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Property, Plant and Equipment (Textual) [Abstract] | ' | ' |
Depreciation | $2.70 | $3 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization of Intangible Assets | $0.50 | $0.30 |
Minimum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '1 year | ' |
Maximum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '10 years | ' |
Discera, Inc. [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived Intangible Assets Acquired | 2.8 | ' |
PhaseLink Acquisition [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived Intangible Assets Acquired | 8.3 | ' |
Other Intangible Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived Intangible Assets Acquired | $2.10 | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | $13,193 | $13,943 |
Accumulated Amortization | -2,283 | -2,194 |
Net Carrying Amount | 10,910 | 11,749 |
Developed and core technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 7,443 | 7,783 |
Accumulated Amortization | -1,192 | -986 |
Net Carrying Amount | 6,251 | 6,797 |
Customer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 3,800 | 3,800 |
Accumulated Amortization | -756 | -552 |
Net Carrying Amount | 3,044 | 3,248 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 610 | 610 |
Accumulated Amortization | -312 | -284 |
Net Carrying Amount | 298 | 326 |
Noncompete agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 40 | 450 |
Accumulated Amortization | -23 | -372 |
Net Carrying Amount | 17 | 78 |
In-process research and development [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,300 | 1,300 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | $1,300 | $1,300 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
2014 (remaining nine months) | $1,145 | ' |
2015 | 1,599 | ' |
2016 | 1,510 | ' |
2017 | 1,281 | ' |
2018 | 1,223 | ' |
Thereafter | 4,152 | ' |
Net Carrying Amount | $10,910 | $11,749 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of accrued liabilities | ' | ' |
Accrued compensation | $6,538 | $5,767 |
Accrued commissions | 1,590 | 1,666 |
Accrued restructuring | 277 | 902 |
Other accrued liabilities | 4,938 | 4,539 |
Total accrued liabilities | $13,343 | $12,874 |
Borrowing_Arrangements_Details
Borrowing Arrangements (Details) (USD $) | Mar. 31, 2014 |
Borrowing Arrangements (Additional Textual) [Abstract] | ' |
Line of credit available for general working capital needs | $5,000,000 |
Letter of credit sub-facility | 5,000,000 |
Foreign exchange sub-facility | 2,000,000 |
Amount outstanding on the line of credit | 0 |
Letter of Credit [Member] | ' |
Borrowing Arrangements (Additional Textual) [Abstract] | ' |
Letters of credit, outstanding | $300,000 |
Major_Customers_Details
Major Customers (Details) (Customer Concentration Risk [Member]) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |
Distributor A [Member] | Distributor A [Member] | Distributor B [Member] | Distributor B [Member] | Distributor A [Member] | Distributor A [Member] | Distributor B [Member] | Distributor B [Member] | Distributor C [Member] | |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | 28.00% | 31.00% | 23.00% | 21.00% | 33.00% | 36.00% | 19.00% | 11.00% | 12.00% |
Segment_Reporting_Details
Segment Reporting (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Segment Revenue by Percent | 100.00% | 100.00% |
Linear and Power [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment Revenue by Percent | 55.00% | 57.00% |
Timing and Communications [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment Revenue by Percent | 22.00% | 20.00% |
LAN [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment Revenue by Percent | 20.00% | 21.00% |
Foundry [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment Revenue by Percent | 3.00% | 2.00% |
Segment_Reporting_Segment_Repo
Segment Reporting Segment Reporting Geographic Information (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues from External Customers [Line Items] | ' | ' |
Net Revenues by Geographic Region by Percentage | 100.00% | 100.00% |
North America [Member] | ' | ' |
Revenues from External Customers [Line Items] | ' | ' |
Net Revenues by Geographic Region by Percentage | 27.00% | 31.00% |
Asia [Member] | ' | ' |
Revenues from External Customers [Line Items] | ' | ' |
Net Revenues by Geographic Region by Percentage | 57.00% | 56.00% |
Europe [Member] | ' | ' |
Revenues from External Customers [Line Items] | ' | ' |
Net Revenues by Geographic Region by Percentage | 16.00% | 13.00% |
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | 0 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Oct. 24, 2013 | Mar. 31, 2014 |
Share Repurchase Program [Abstract] | ' | ' |
Stock Repurchase Program, Additional Authorized Amount | $30 | ' |
Share Repurchase Program, Authorized Amount | 120 | ' |
Remaining Authorized Repurchase Amount | ' | 22.8 |
Stock Repurchased During Period, Shares | ' | 0.3 |
Stock Repurchased During Period, Value | ' | $3 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Income tax provision as percentage of income before taxes | 31.30% | ' | ' |
Percentage of income before taxes | ' | 4.30% | ' |
Income tax benefit research and development tax credit | ' | $1.40 | ' |
Liability for uncertain tax positions | 13.4 | ' | ' |
Net liability, reduced for the federal effects of potential state tax exposures | 9.7 | ' | ' |
Tax provision, included not yet reduced income tax payments | 3.8 | ' | ' |
Increase in deferred tax assets, uncertain tax positions | 5.9 | ' | ' |
Long-term uncertain income tax positions | 3.7 | ' | ' |
Accrued income taxes, current | 0.1 | ' | ' |
Interest and penalties related to income tax | 0.4 | ' | 0.4 |
Current deferred tax assets | 22.3 | ' | ' |
Deferred tax liabilities, net, noncurrent | 0.8 | ' | ' |
Deferred tax valuation allowance | 9.3 | ' | 9 |
State and Local Jurisdiction [Member] | ' | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 24.9 | ' | ' |
Deferred tax Assets, Tax Carryforwards, Research, Pre-Ownership Change | $2.30 | ' | ' |
Dividends_Details
Dividends (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Dividends, Common Stock [Abstract] | ' | ' |
Board of Directors declared a cash dividend | $0.05 | ' |
Payments of Ordinary Dividends, Common Stock | $2,814 | $0 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | ' | ' |
Beginning Balance | $902,000 | ' |
Restructuring Charges | ' | 1,400,000 |
Payments for Restructuring | -625,000 | ' |
Ending Balance | $277,000 | $902,000 |
Subsequent_Events_Details
Subsequent Events (Details) (Dividend Declared [Member], Subsequent Event [Member], USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Apr. 24, 2014 |
Dividend Declared [Member] | Subsequent Event [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Board of Directors declared a cash dividend payable | ' | $0.05 |
Dividends to be paid in second quarter | $2.80 | ' |