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Note 1 - Basis of Presentation and Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
1.
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Basis of Presentation
— 
 
The interim unaudited condensed consolidated financial statements included herein have been prepared by PDF Solutions, Inc. (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to the Quarterly Report on Form
10
-Q and Article
10
of Regulation S-
X.
Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The interim unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary (consisting only of normal recurring adjustments), to present a fair statement of results for the interim periods presented. The operating results for any interim period are
not
necessarily indicative of the results that
may
be expected for other interim periods or the full fiscal year. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form
10
-K for the year ended
December 31, 2017.
 
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all intercompany balances and transactions.
 
The condensed consolidated balance sheet at
December 31, 2017, 
has been derived from the audited consolidated financial statements but does
not
include all disclosures required by accounting principles generally accepted in the United States of America.
 
Use of Estimates
 — 
 
The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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 period. Significant estimates in these financial statements include significant estimates and judgments made in recognizing revenue, accounting for goodwill and intangible assets, stock-based compensation expense and accounting for income taxes. Actual results could differ from those estimates. For a discussion of significant estimates and judgments made in recognizing revenue under the new revenue standard, see Note
2.
Revenue Recognition.
 
Recent Accounting Pronouncements –
 
Recently Adopted Accounting Standards
 
In
May 2014,
the Financial Accounting Standards Board ("FASB") issued ASU
No.
2014
-
09,
Revenue from Contracts with Customers (Topic
606
), which supersedes the revenue recognition requirements in “Revenue Recognition (Topic
605
).” Subsequently, the FASB has issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. Under Topic
606,
the new revenue recognition standard provides a
five
-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this new standard on the
first
day of the
first
fiscal quarter of fiscal
2018.
The Company chose to adopt the standard using the modified retrospective transition method. See Note
2.
Revenue Recognition, below for further information, including further discussion on the impact of adoption and changes in accounting policies relating to revenue recognition.
 
In
August 2016,
the FASB issued ASU
No.
2016
-
15,
Statement of Cash Flows (Topic
230
): Classification of Certain Cash Receipts and Cash Payments. The purpose of this standard is to clarify the treatment of several cash flow categories. This update is effective for annual periods beginning after
December 15, 2017,
and interim periods within those fiscal years. The Company adopted this standard on
January 1, 2018
and it did
not
have a material impact on its financial statements and footnote disclosures.
 
In 
November 2016,
the FASB issued ASU
No.
2016
-
18,
Statement of Cash Flows (Topic
230
): Restricted Cash, that will require that the amounts generally described as restricted cash and restricted cash equivalents would be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. The new guidance also requires certain disclosures to supplement the statement of cash flows. This update is effective for annual periods beginning after
December 15, 2017,
and interim periods within those fiscal years. The Company adopted this standard on
January 1, 2018,
and it did
not
have a material impact on our financial statements and footnote disclosures.
 
In
January 2017,
the FASB issued ASU
No.
2017
-
01,
Business Combinations: Clarifying the Definition of a Business, which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The guidance is effective for fiscal years beginning after
December 15, 2017.
The Company adopted this standard on
January 1, 2018,
and it did
not
have a material impact on its financial statements and footnote disclosures.
 
In
May 2017,
the FASB issued ASU
No.
2017
-
09,
Compensation-Stock Compensation (Topic
718
) Scope of Modification Accounting. This standard clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic
718.
The standard is effective for interim and annual reporting periods beginning after
December 15, 2017.
The Company adopted this standard on
January 1, 2018,
and it did
not
have a material impact on our financial statements and footnote disclosures.
 
Accounting Standards
Not
Yet Effective
 
In
February 2016,
the FASB issued ASU
No.
2016
-
02,
Leases (Topic
842
). The update requires that most leases, including operating leases, be recorded on the balance sheet as an asset and a liability, initially measured at the present value of the lease payments. Subsequently, the lease asset will be amortized generally on a straight-line basis over the lease term, and the lease liability will bear interest expense and be reduced for lease payments. The amendments in this update are effective for public companies’ financial statements issued for fiscal years beginning after
December 15, 2018,
including interim periods within those fiscal years. The Company is still in the process of evaluating the impact of adopting this new accounting standard on its consolidated financial statements and footnote disclosures.
 
In
January 2017,
the FASB issued ASU
No.
2017
-
04,
Intangibles - Goodwill and Other (Topic
350
). This standard eliminates step
2
from the annual goodwill impairment test. This update is effective for annual periods beginning after
December 15, 2019,
and interim periods within those fiscal years, with early adoption permitted, and is to be applied on a prospective basis. The Company does
not
anticipate that the adoption of this standard will have a significant impact on its consolidated financial statements or the related disclosures.
 
In
February 2018,
the FASB issued ASU
No.
2018
-
02,
Income Statement – Reporting Comprehensive Income (Topic
220
): Reclassification of Certain Tax Effect from Accumulated Other Comprehensive Income. This update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Job Act ("TCJA") enacted in
December 2017.
This update will be effective for the Company for fiscal years beginning after
December 15, 2018
and interim periods within those fiscal years. Early adoption is permitted. The Company does
not
anticipate that the adoption of this standard will have a significant impact on its consolidated financial statements or the related disclosures.
 
In
March 2018,
the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 
2018
-
05,
 "Income Taxes (Topic
740
): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin
No.
118".
The staff of the SEC recognized the complexity of reflecting the impacts of the TCJA, and on
December 22, 2017
issued guidance in Staff Accounting Bulletin
118
(SAB
118
), which clarifies accounting for income taxes under Accounting Standards Codification (ASC)
740
if information is
not
yet available or complete and provides for up to a
one
year period in which to complete the required analysis and accounting (the measurement period).  Refer to Note
5.
Income Taxes, for further discussion regarding the impact of this standard to the Company's consolidated financial statements.