REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
four ordinary shares |
* |
Not for trading, but only in connection with the listing on the Nasdaq Global Select Market of American Depositary Shares, or ADSs, each representing four ordinary shares. |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Emerging growth company |
|
International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ |
Other ☐ |
3 |
||||||
3 |
||||||
3 |
||||||
3 |
||||||
23 |
||||||
29 |
||||||
29 |
||||||
44 |
||||||
50 |
||||||
51 |
||||||
52 |
||||||
52 |
||||||
58 |
||||||
58 |
||||||
59 |
||||||
59 |
||||||
59 |
||||||
59 |
||||||
61 |
||||||
61 |
||||||
61 |
||||||
62 |
||||||
62 |
||||||
62 |
||||||
62 |
||||||
63 |
||||||
63 |
||||||
63 |
||||||
63 |
• | “ADRs” are to the American depositary receipts that evidence our ADSs; |
• | “ADSs” are to our American depositary shares, each of which represents four of our ordinary shares; |
• | “CAGR” are to compound annual growth rate; |
• | “China” or “PRC” are to the People’s Republic of China, excluding the special administrative regions of Hong Kong and Macau; |
• | “Korea” are to the Republic of Korea, or South Korea; |
• | “Nasdaq” are to the Nasdaq Global Select Stock Market; |
• | “NT dollar,” “NT dollars” or “NT$” are to New Taiwan dollars, the legal currency of Taiwan; |
• | “ROC” or “Taiwan” are to the Republic of China, the official name of Taiwan; |
• | “shares” or “ordinary shares” are to our ordinary shares, with a par value US$0.01 per share; |
• | “U.S. GAAP” are to generally accepted accounting principles in the United States; |
• | “U.S. dollar,” “U.S. dollars” or “US$” are to United States dollars, the legal currency of the United States; and |
• | “we,” “us,” “our company,” “our,” “SMTC” and “Silicon Motion” are to Silicon Motion Technology Corporation and its subsidiaries. |
ITEM 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. |
OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. |
KEY INFORMATION |
Year Ended December 31, |
||||||||||||||||||||
2016 |
2017 |
2018 |
2019 |
2020 |
||||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||
(in thousands, except for per share data) |
||||||||||||||||||||
Consolidated Statements of Income Data: |
||||||||||||||||||||
Net sales |
556,146 | 523,404 | 530,348 | 457,253 | 539,521 | |||||||||||||||
Cost of sales |
281,541 | 272,210 | 269,541 | 235,081 | 279,365 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross profit |
274,605 | 251,194 | 260,807 | 222,172 | 260,156 | |||||||||||||||
Operating expenses: |
||||||||||||||||||||
Research and development |
92,405 | 102,053 | 102,028 | 110,305 | 121,784 | |||||||||||||||
Sales and marketing |
25,765 | 25,868 | 29,279 | 25,108 | 24,805 | |||||||||||||||
General and administrative |
17,072 | 16,933 | 17,633 | 17,878 | 15,604 | |||||||||||||||
Impairment of goodwill and intangible assets |
— | 10,337 | 4,069 | 15,970 | 17,489 | |||||||||||||||
Amortization of intangible assets |
2,103 | 2,534 | 2,964 | 766 | — | |||||||||||||||
Gain from disposal of noncurrent assets held for sale |
— | (1,880 | ) | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating expenses |
137,345 | 155,845 | 155,973 | 170,027 | 179,682 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income |
137,260 | 95,349 | 104,834 | 52,145 | 80,474 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total non-operating income |
1,370 | 3,652 | 5,027 | 19,929 | 5,084 | |||||||||||||||
Income before income taxes |
138,630 | 99,001 | 109,861 | 72,074 | 85,558 | |||||||||||||||
Income tax expense |
27,690 | 24,046 | 11,791 | 7,676 | 5,812 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
110,940 | 74,955 | 98,070 | 64,398 | 79,746 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding: |
||||||||||||||||||||
Basic |
140,919 | 142,738 | 144,123 | 140,708 | 139,421 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted |
142,050 | 143,606 | 144,512 | 141,183 | 139,910 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings per share: |
||||||||||||||||||||
Basic |
0.79 | 0.53 | 0.68 | 0.46 | 0.57 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted |
0.78 | 0.52 | 0.68 | 0.46 | 0.57 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings per ADS (1) : |
||||||||||||||||||||
Basic |
3.15 | 2.10 | 2.72 | 1.83 | 2.29 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted |
3.12 | 2.09 | 2.71 | 1.82 | 2.28 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Each ADS represents four ordinary shares. |
As of December 31, |
||||||||||||||||||||
2016 |
2017 |
2018 |
2019 |
2020 |
||||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Consolidated Balance Sheet Data: |
||||||||||||||||||||
Cash and cash equivalents |
274,483 | 359,453 | 284,989 | 323,166 | 342,961 | |||||||||||||||
Other current assets |
202,417 | 209,344 | 213,501 | 242,033 | 275,132 | |||||||||||||||
Working capital |
330,914 | 391,553 | 384,839 | 433,711 | 459,349 | |||||||||||||||
Long-term investments |
120 | — | 4,242 | 3,000 | 5,000 | |||||||||||||||
Property and equipment, net |
47,892 | 51,370 | 101,410 | 98,488 | 105,496 | |||||||||||||||
Goodwill and intangible assets, net |
73,883 | 66,393 | 59,352 | 17,489 | — | |||||||||||||||
Other non-current assets |
7,231 | 7,172 | 9,120 | 13,553 | 13,471 | |||||||||||||||
Total assets |
606,026 | 693,732 | 672,614 | 697,729 | 742,060 | |||||||||||||||
Total liabilities |
163,263 | 199,681 | 140,337 | 160,945 | 184,318 | |||||||||||||||
Total shareholders’ equity |
442,763 | 494,051 | 532,277 | 536,784 | 557,742 |
As of December 31, |
||||||||||||||||||||
2016 |
2017 |
2018 |
2019 |
2020 |
||||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Consolidated Cash Flow Data: |
||||||||||||||||||||
Net cash provided by operating activities |
125,568 | 103,881 | 108,242 | 77,695 | 117,229 | |||||||||||||||
Net cash provided by (used in) investing activities |
(8,220 | ) | (14,548 | ) | (79,568 | ) | 34,668 | (21,545 | ) | |||||||||||
Net cash provided by (used in) financing activities |
2,194 | (31,740 | ) | (101,820 | ) | (70,260 | ) | (73,914 | ) | |||||||||||
Depreciation and amortization |
11,585 | 13,133 | 14,796 | 13,213 | 13,562 | |||||||||||||||
Capital expenditures |
(12,220 | ) | (11,683 | ) | (74,853 | ) | (11,015 | ) | (19,545 | ) |
• | Our results of operations are subject to substantial quarterly and annual fluctuations due to a number of factors that could adversely affect our business and the price of our ADSs. |
• | The COVID-19 pandemic continues to impact our business and could materially adversely affect our financial condition and results of operations. |
• | We are subject to the cyclical nature of the semiconductor industry, which has been subject to significant fluctuations. |
• | We are subject to order and shipment uncertainties and our results of operations could be materially adversely affected if we are unable to accurately forecast customer demand. |
• | The demand for our products depends in part on the market conditions in the industries into which they are sold. Fluctuations in demand for our products or a market decline in any of these industries could have a material adverse effect on our results of operations. |
• | We may pursue acquisitions, investments and dispositions, which could adversely affect our results of operations. |
• | We depend on a few large customers for a significant portion of our revenues and a loss of some of these customers would result in the loss of a significant portion of our revenues. |
• | NAND industry cyclicality could adversely affect our growth and profitability. |
• | If we fail to accurately anticipate and respond to market trends or fail to develop and introduce new or enhanced products to address these trends on a timely basis, our ability to attract and retain customers could be impaired and our competitive position could be harmed. |
• | Our gross margin and results of operations may be adversely affected in the future by a number of factors, including decreases in average selling prices of products over time and shifts in our product mix. |
• | Our SSD solutions product performance could continue to adversely affect our results of operations. |
• | The loss of any of our key personnel or the failure to attract or retain specialized technical and management personnel could impair our ability to grow our business. |
• | We rely on independent semiconductor foundries and subcontractors for the fabrication, assembly and testing of our integrated circuits, and any limitation of their available capacity to us or failure to fulfill our orders satisfactorily could damage our relationships with our customers, decrease our sales or limit our ability to grow our business. |
• | Failure to protect our intellectual properties or maintain the right to certain other technologies may negatively affect our ability to compete. |
• | Failure to successfully defend against intellectual property lawsuits brought against us may adversely affect our business. |
• | Because the markets in which we compete are highly competitive and many of our competitors have greater resources than we have, we cannot be certain that our products will compete favorably in the marketplace. |
• | Our products must meet exacting specifications and undetected defects and failures may occur, which may cause customers to return or stop buying our products and may expose us to product liability risk and risks of indemnification against defects in our products. |
• | Our intellectual property indemnification practices may adversely impact our business. |
• | We are exposed to potential impairment on investments. |
• | Any failure to achieve and maintain effective internal controls could have a material adverse effect on our business, results of operations and the market price of our ADSs. |
• | We are subject to cybersecurity risk. |
• | Our business is subject to various governmental regulations, and compliance with these regulations may cause us to incur significant expense. |
• | Our stock price has been, and may continue to be, volatile, which could result in investors losing all or part of their investments. |
• | There can be no assurance that we will continue to declare cash dividends, if at all, or in any particular amounts. |
• | If we are characterized as a passive foreign investment company, U.S. Holders may experience adverse tax consequences. |
• | Our business, financial condition and results of operations could be adversely affected by the political and economic conditions of the countries in which we conduct business and other factors related to our international operations. |
• | We operate primarily in regions that are susceptible to natural disasters. |
• | We face substantial risks associated with doing business in Taiwan because of tense regional geopolitical risk. |
• | The enactment of legislation implementing changes in taxation of international business activities, the adoption of other tax reform policies or changes in tax legislation or policies could materially impact our financial position and results of operations. |
• | A substantial amount of our stock is held by a small number of large investors and significant sales of our ADSs in the public market by one or more of these holders could cause our stock price to fall. |
• | We are subject to risks associated with development and construction of our office buildings. |
• | the unpredictable consequences of public health emergencies such as COVID-19, further discussed in the following Risk Factor, and natural or man-made disasters; |
• | business conditions, including downturns in market segments, such as the computing and mobile markets, in which we operate, or in global and regional economies; |
• | the availability and pricing of third-party semiconductor foundry, assembly, packaging and testing services, including their yield, and related raw materials; |
• | significant reduction, changes in timing or cancellation of customer orders; |
• | changes in our customers’ sales outlook, purchasing patterns and inventory adjustments; |
• | the loss of a design-win or key customer; |
• | competitive and pricing pressures, including new product introductions and other actions taken by competitors; |
• | availability and cost of NAND flash used in our and our customer’s products; |
• | changes in our product mix, especially relating to the sales of our NAND flash controllers and SSD solutions, and their effect on our gross margin; |
• | inventory impairment uncertainties relating to the effects of volatile NAND flash price and excess inventory; |
• | our ability to develop, market and transition to volume production new or enhanced products and in a cost-effective and timely manner; |
• | changes in the timing and number of tape-outs and other significant R&D expenses; |
• | competitive pressure to attract, retain and motivate a highly skilled workforce, including R&D personnel; |
• | intellectual property disputes; and |
• | changes in our effective tax rate. |
• | actual or anticipated variations in our quarterly operating results or those of our competitors, customers, or NAND flash vendors; |
• | actual or anticipated changes in NAND flash supply and demand dynamics; |
• | actual or anticipated changes in our market share or the market share of our competitors; |
• | the commencement or results of litigation; |
• | short selling or other market manipulation activities; |
• | announcements by us, our competitors, our customers, or their other suppliers of new products or technological innovations; |
• | changes in financial estimates or recommendations by securities analysts; |
• | economic and social effects of the COVID-19 virus or other pandemics; |
• | the payment or non-payment of cash dividends at the discretion of our board of directors; |
• | the announcement and implementation of share repurchase programs; |
• | announcements by us or our competitors of significant acquisitions, divestitures or partnerships; and |
• | actual or anticipated changes in the global economic or industry outlook. |
• | international economic and political conditions, such as political tensions between countries in which we do business (please also refer to Risk Factors relating to China and Taiwan); |
• | unexpected changes in, or impositions of, legislative or regulatory requirements; |
• | complying with a variety of foreign laws; |
• | differing legal standards with respect to protection of intellectual property and employment practices; |
• | cultural differences in the conduct of business; |
• | inadequate local infrastructure that could result in business disruptions; |
• | trade issues related to export or import restrictions, tariffs, quotas and other trade barriers and restrictions, including those related to the ongoing trade disputes between China and the U.S.; |
• | financial risks such as longer payment cycles and difficulty in collecting accounts receivable; |
• | adverse taxes rules, regulations and penalties; and |
• | other factors beyond our control such as nature disasters, terrorism, civil unrest, war and health emergencies, such as COVID-19. |
ITEM 4. |
INFORMATION ON THE COMPANY |
Name of Entity |
Jurisdiction of Incorporation | |
Silicon Motion, Inc. | Taiwan | |
Silicon Motion (MCO) Ltd*. | Macau | |
Silicon Motion Technology (HK) Ltd. | Hong Kong |
* | Liquidated in December 2020. |
• | the performance, features, quality and price of our products; |
• | the timing and success of new product introductions by us, our customers and our competitors; |
• | emergence, rate of adoption and acceptance of new industry standards; |
• | our ability to obtain adequate foundry capacity at competitive prices; and |
• | the number and nature of our competitors in a given market sub-segment. |
Location |
Primary Use |
Approximate Square Footage | ||
Hsinchu, Taiwan |
Research & development, management & administration | 205,200 | ||
Taipei, Taiwan |
Research & development, sales & marketing | 82,200 | ||
Shanghai, China |
Research & development, sales & marketing | 43,400 | ||
Shenzhen, China |
Sales & marketing | 20,200 | ||
Milpitas, California |
Sales & marketing, management | 13,300 | ||
Others (1) |
Sales & marketing, management | 18,900 |
(1) | Korea, Macau, Hong Kong, Yokohama, Japan, Beijing, Nanjing, Hangzhou and Suzhou, China |
ITEM 4A. |
UNRESOLVED STAFF COMMENTS |
ITEM 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
• | Total revenue increased by 18% to US$539.5 million. |
• | Gross profit as a percentage of revenue decreased by 0.4% points to 48.2%. |
• | Total operating expenses increased by 6% to US$179.7 million. |
• | Operating profit increased by 54% to US$80.5 million. |
• | Income tax expense as a percentage of income before income tax decreased to 6.8%. |
• | Diluted earnings per ADS increased by 25% to US$2.28. |
Year Ended December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
Currency |
||||||||||||
U.S. dollars |
88 | % | 95 | % | 98 | % | ||||||
Korean won |
3 | % | 1 | % | — | |||||||
Chinese yuan |
9 | % | 4 | % | 2 | % |
• | cost of wafer fabrication; |
• | assembly, testing and shipping costs of our semiconductors; |
• | personnel and equipment costs associated with manufacturing support; |
• | quality assurance; |
• | cost of raw materials; and |
• | write-down of inventory. |
• | the selection of critical accounting policies; and |
• | the judgments and other uncertainties affecting the application of those critical accounting policies. |
Year Ended December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
Net sales |
100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost of sales |
50.8 | 51.4 | 51.8 | |||||||||
|
|
|
|
|
|
|||||||
Gross profit |
49.2 | 48.6 | 48.2 | |||||||||
|
|
|
|
|
|
|||||||
Operating expenses: |
||||||||||||
Research and development |
19.2 | 24.1 | 22.6 | |||||||||
Sales and marketing |
5.5 | 5.5 | 4.6 | |||||||||
General and administrative |
3.3 | 3.9 | 2.9 | |||||||||
Impairment of goodwill and intangible assets |
0.8 | 3.5 | 3.2 | |||||||||
Amortization of intangible assets |
0.6 | 0.2 | — | |||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
29.4 | 37.2 | 33.3 | |||||||||
|
|
|
|
|
|
|||||||
Operating income |
19.8 | 11.4 | 14.9 | |||||||||
|
|
|
|
|
|
|||||||
Non-operating income (expenses): |
||||||||||||
Gain from disposal of subsidiary |
0.0 | 2.7 | — | |||||||||
Gain from disposal of long-term investments |
0.0 | 0.1 | — | |||||||||
Gain from disposal of short-term investments |
0.0 | 0.0 | 0.0 | |||||||||
Interest income |
1.2 | 1.5 | 0.9 | |||||||||
Foreign exchange gain (loss), net |
(0.1 | ) | 0.0 | 0.1 | ||||||||
Interest expense |
(0.1 | ) | 0.0 | 0.0 | ||||||||
Loss on equity-method investment |
(0.1 | ) | — | — | ||||||||
Other income (loss), net |
0.0 | 0.0 | 0.0 | |||||||||
|
|
|
|
|
|
|||||||
Total non-operating income |
0.9 | 4.3 | 1.0 | |||||||||
|
|
|
|
|
|
|||||||
Income before income taxes |
20.7 | 15.7 | 15.9 | |||||||||
Income tax expense |
2.2 | 1.7 | 1.1 | |||||||||
|
|
|
|
|
|
|||||||
Net income |
18.5 | % | 14.0 | % | 14.8 | % | ||||||
|
|
|
|
|
|
Years Ended December 31 |
||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Net sales |
||||||||||||||||||||||||
Mobile Storage |
441,700 | 97 | 532,682 | 99 | 90,982 | 21 | ||||||||||||||||||
Mobile Communications |
10,356 | 2 | — | — | (10,356 | ) | (100 | ) | ||||||||||||||||
Others |
5,197 | 1 | 6,839 | 1 | 1,642 | 32 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net sales |
457,253 | 100 | 539,521 | 100 | 82,268 | 18 |
Years Ended December 31 |
||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Gross profit |
222,172 | 49 | 260,156 | 48 | 37,984 | 17 |
Years Ended December 31 |
||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
57,165 | 13 | 66,674 | 12 | 9,509 | 17 | ||||||||||||||||||
Stock-based compensation |
9,927 | 2 | 10,132 | 2 | 205 | 2 | ||||||||||||||||||
Other research and development |
43,213 | 9 | 44,978 | 9 | 1,765 | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Research and development |
110,305 | 24 | 121,784 | 23 | 11,479 | 10 |
Years Ended December 31 |
||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
14,586 | 3 | 15,599 | 3 | 1,013 | 7 | ||||||||||||||||||
Stock-based compensation |
1,789 | 1 | 1,759 | — | (30 | ) | (2 | ) | ||||||||||||||||
Other sales and marketing |
8,733 | 2 | 7,447 | 2 | (1,286 | ) | (15 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sales and marketing |
25,108 | 6 | 24,805 | 5 | (303 | ) | (1 | ) |
Years Ended December 31 |
||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
9,202 | 2 | 9,445 | 2 | 243 | 3 | ||||||||||||||||||
Stock-based compensation |
2,570 | 1 | 2,445 | — | (125 | ) | (5 | ) | ||||||||||||||||
Other general and administrative |
6,106 | 1 | 3,714 | 1 | (2,392 | ) | (39 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
General and administrative |
17,878 | 4 | 15,604 | 3 | (2,274 | ) | (13 | ) |
Years Ended December 31 |
||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Cost of sales |
305 | — | 253 | — | (52 | ) | (17 | ) | ||||||||||||||||
Research and development |
9,927 | 2 | 10,132 | 2 | 205 | 2 | ||||||||||||||||||
Sales and marketing |
1,789 | — | 1,759 | — | (30 | ) | (2 | ) | ||||||||||||||||
General and administrative |
2,570 | 1 | 2,445 | — | (125 | ) | (5 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total stock-based compensation |
14,591 | 3 | 14,589 | 2 | (2 | ) | (0 | ) |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Net sales |
||||||||||||||||||||||||
Mobile Storage |
494,012 | 93 | 441,700 | 97 | (52,312 | ) | (11 | ) | ||||||||||||||||
Mobile Communications |
30,163 | 6 | 10,356 | 2 | (19,807 | ) | (66 | ) | ||||||||||||||||
Others |
6,173 | 1 | 5,197 | 1 | (976 | ) | (16 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net sales |
530,348 | 100 | 457,253 | 100 | (73,095 | ) | (14 | ) |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Gross profit |
260,807 | 49 | 222,172 | 49 | (38,635 | ) | (15 | ) |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
53,922 | 10 | 57,165 | 13 | 3,243 | 6 | ||||||||||||||||||
Stock-based compensation |
13,278 | 2 | 9,927 | 2 | (3,351 | ) | (25 | ) | ||||||||||||||||
Other research and development |
34,828 | 7 | 43,213 | 9 | 8,385 | 24 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Research and development |
102,028 | 19 | 110,305 | 24 | 8,277 | 8 |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
15,546 | 3 | 14,586 | 3 | (960 | ) | (6 | ) | ||||||||||||||||
Stock-based compensation |
3,407 | 1 | 1,789 | 1 | (1,618 | ) | (47 | ) | ||||||||||||||||
Other sales and marketing |
10,326 | 2 | 8,733 | 2 | (1,593 | ) | (15 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sales and marketing |
29,279 | 6 | 25,108 | 6 | (4,171 | ) | (14 | ) |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Salary and benefits |
8,073 | 1 | 9,202 | 2 | 1,129 | 14 | ||||||||||||||||||
Stock-based compensation |
3,704 | 1 | 2,570 | 1 | (1,134 | ) | (31 | ) | ||||||||||||||||
Other general and administrative |
5,856 | 1 | 6,106 | 1 | 250 | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
General and administrative |
17,633 | 3 | 17,878 | 4 | 245 | 1 |
Years Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
|||||||||||||||||||||||
US$ |
% of net sales |
US$ |
% of net sales |
$ change |
% change |
|||||||||||||||||||
(in thousands, except percentage data) |
||||||||||||||||||||||||
Cost of sales |
390 | — | 305 | — | (85 | ) | (22 | ) | ||||||||||||||||
Research and development |
13,278 | 2 | 9,927 | 2 | (3,351 | ) | (25 | ) | ||||||||||||||||
Sales and marketing |
3,407 | 1 | 1,789 | — | (1,618 | ) | (47 | ) | ||||||||||||||||
General and administrative |
3,704 | 1 | 2,570 | 1 | (1,134 | ) | (31 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total stock-based compensation |
20,779 | 4 | 14,591 | 3 | (6,188 | ) | (30 | ) |
Year Ended December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
(in thousands) |
||||||||
Cash and cash equivalents |
323,166 | 342,961 | ||||||
Short-term investments |
2,010 | — | ||||||
|
|
|
|
|||||
Cash, cash equivalents and short-term investments |
325,176 | 342,961 |
Year Ended December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
(in thousands) |
||||||||||||
Consolidated Cash Flow Data: |
||||||||||||
Net cash provided by operating activities |
108,242 | 77,695 | 117,229 | |||||||||
Net cash provided by (used in) investing activities |
(79,568 | ) | 34,668 | (21,545 | ) | |||||||
Net cash used in financing activities |
(101,820 | ) | (70,260 | ) | (73,914 | ) | ||||||
Depreciation and amortization |
14,796 | 13,213 | 13,562 | |||||||||
Capital expenditures |
(74,853 | ) | (11,015 | ) | (19,545 | ) |
• | Our net income includes substantial non-cash charges, namely US$13.6 million of depreciation and amortization, US$14.6 million of stock-based compensation and US$17.5 million of impairment of goodwill. |
• | Net working capital increased by US$10.2 million. Inventory increased by US$21.7 million, notes and accounts receivable increased by US$7.1 million, notes and accounts payable increased by US$13.8 million, income tax payable increased by US$4.4 million, and other assets net of other liabilities provided US$0.4 million of cash. |
• | Our net income includes substantial non-cash charges, namely US$13.2 million of depreciation and amortization, US$14.6 million of stock-based compensation and US$16.0 million of impairment of goodwill and intangible assets. |
• | Net working capital increased by US$20.3 million. Inventory increased by US$10.2 million, notes and accounts receivable increased by US$18.8 million, notes and accounts payable increased by US$4.4 million, income tax payable decreased by US$1.7 million, and other assets net of other liabilities provided US$5.9 million of cash. |
Amount of Commitment Maturing by Year |
||||||||||||||||||||
Total |
Less Than 1 Year |
1-3 Years |
3-5 Years |
More Than 5 Years |
||||||||||||||||
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Operating leases |
7,339 | 3,253 | 3,247 | 807 | 32 | |||||||||||||||
Pension |
2,603 | 2,603 | (a |
) |
(a |
) |
(a |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Contractual cash obligations |
9,942 | 5,856 | 3,247 | 807 | 32 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Our pension obligation after one year has not been estimated. |
ITEM 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
Name |
Age |
Position | ||||
James Chow |
70 | Chairman of the Board | ||||
Wallace C. Kou |
62 | President, Chief Executive Officer and Managing Director | ||||
Steve Chen |
49 | Director | ||||
Tsung-Ming Chung |
71 | Director | ||||
Lien-Chun Liu |
63 | Director | ||||
Yung-Chien Wang |
58 | Director | ||||
Han-Ping D. Shieh |
67 | Director | ||||
Kenneth Kuan-Ming Lin |
68 | Director | ||||
Riyadh Lai |
52 | Chief Financial Officer | ||||
Nelson Duann |
52 | Senior VP of Marketing & R&D and Director | ||||
Arthur Yeh |
60 | VP of Sales, Asia and Greater China | ||||
Robert Fan |
57 | President of SMI USA | ||||
Ken Chen |
59 | VP of Operations | ||||
Kevin Yeh |
57 | VP of R&D, Algorithm & Technology | ||||
Kevin Tsai |
55 | Senior Director of R&D, System Validation |
• | convening shareholders’ meetings and reporting its work to shareholders at such meetings; |
• | implementing shareholders’ resolutions; |
• | determining our business plans and investment proposals; |
• | formulating our profit distribution plans and loss recovery plans; |
• | determining our debt and finance policies and proposals for the increase or decrease in our registered capital and the issuance of debentures; |
• | formulating our major acquisition and disposition plans, and plans for merger, division or dissolution; |
• | proposing amendments to our amended and restated memorandum and articles of association; and |
• | exercising any other powers conferred by the shareholders’ meetings or under our amended and restated memorandum and articles of association. |
As of December 31, |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
Management and administration |
132 | 120 | 120 | |||||||||
Operations |
41 | 33 | 35 | |||||||||
Research and development |
897 | 880 | 964 | |||||||||
Sales and marketing |
237 | 204 | 204 | |||||||||
|
|
|
|
|
|
|||||||
Total |
1,307 | 1,237 | 1,323 | |||||||||
|
|
|
|
|
|
Shares Beneficially Owned |
||||||||
Number |
% |
|||||||
Executive Officers and Directors: |
||||||||
James Chow (1) |
2,401,266 | 1.72 | ||||||
Wallace C. Kou (2) |
1,977,248 | 1.42 | ||||||
Steve Chen |
60,000 | * | ||||||
Tsung-Ming Chung |
90,000 | * | ||||||
Lien-Chun Liu |
244,280 | * | ||||||
Yung-Chien Wang |
848,674 | * | ||||||
Han-Ping D. Shieh |
70,800 | * | ||||||
Kenneth Kuan-Ming Lin |
30,000 | * | ||||||
Riyadh Lai (3) |
1,804,180 | 1.29 | ||||||
Nelson Duann |
44,000 | * | ||||||
Arthur Yeh |
50,524 | * | ||||||
Robert Fan |
54,000 | * | ||||||
Ken Chen (4) |
217,649 | * | ||||||
Kevin Yeh |
52,000 | * | ||||||
Kevin Tsai |
6,000 | * |
* | Less than one percent |
(1) | Represents 2,401,266 shares owned by Mr. Chow. Mr. Chow is the chairman of Concord Consulting Inc. and Concord Financial Co. Ltd. which owned 42,445 and 196,491 shares, respectively. Mr. Chow disclaims any beneficial ownership of these shares. |
(2) | Represents 1,657,248 shares owned by Mr. Kou, 320,000 shares owned by his family members. |
(3) | Represents 984,300 shares owned by Mr. Lai and 819,880 shares owned by his spouse. |
(4) | Represents 35,324 shares owned by Mr. Chen and 182,325 shares owned by his spouse. |
ITEM 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
Identity of person or group |
Number of shares owned |
Percentage Owned (1) |
||||||
Cardinal Capital Management, LLC |
9,714,888 | (2) |
7.0 | % | ||||
ARGA Investment Management, LP and Avula Rama Krishna. |
7,688,452 | (3) |
5.5 | % |
(1) | Based on 139,700,652 ordinary shares outstanding as of March 31, 2021. |
(2) | Cardinal Capital Management, LLC held 2,428,722 ADSs (representing 9,714,888 ordinary shares) according to a Schedule 13G filed February 17, 2021. |
(3) | ARGA Investment Management, LP and Avula Rama Krishna held 1,922,113 ADSs (representing 7,688,452 ordinary shares), according to a Schedule 13G dated February 11, 2019. |
ITEM 8. |
FINANCIAL INFORMATION |
ITEM 9. |
THE OFFER AND LISTING |
Price per ADS (US$) |
||||||||
High |
Low |
|||||||
Annual: |
||||||||
2016 |
55.85 | 27.41 | ||||||
2017 |
55.68 | 37.37 | ||||||
2018 |
61.85 | 31.73 | ||||||
2019 |
50.87 | 30.86 | ||||||
2020 |
53.04 | 26.72 | ||||||
Quarterly: |
||||||||
First Quarter, 2019 |
44.30 | 32.15 | ||||||
Second Quarter, 2019 |
44.41 | 36.43 | ||||||
Third Quarter, 2019 |
47.23 | 30.86 | ||||||
Fourth Quarter, 2019 |
50.87 | 34.73 | ||||||
First Quarter, 2020 |
53.04 | 26.72 | ||||||
Second Quarter, 2020 |
52.46 | 35.11 | ||||||
Third Quarter, 2020 |
50.42 | 35.13 | ||||||
Fourth Quarter, 2020 |
48.39 | 35.16 | ||||||
First Quarter, 2021 |
67.69 | 46.54 | ||||||
Second Quarter, 2021 (1) |
74.10 | 60.47 | ||||||
Monthly |
||||||||
November 2020 |
40.1 | 35.16 | ||||||
December 2020 |
48.39 | 38.43 | ||||||
January 2021 |
52.19 | 46.54 | ||||||
February 2021 |
64.40 | 49.51 | ||||||
March 2021 |
67.69 | 56.06 | ||||||
April 2021 |
74.10 | 60.47 | ||||||
May 2021 (1) |
72.24 | 62.71 |
(1) | Through May 7, 2021. |
ITEM 10. |
ADDITIONAL INFORMATION |
• | banks and financial institutions; |
• | brokers and dealers in securities or currencies; |
• | insurance companies; |
• | tax-exempt organizations and retirement plans; |
• | grantor trusts; |
• | S corporations; |
• | persons holding ADSs or ordinary shares as part of hedging, conversion, constructive sale, straddle or other integrated transactions; |
• | persons who acquired their ordinary shares upon the exercise of employee stock options or otherwise as compensation; |
• | persons who have elected the mark-to-market |
• | persons who own 10% or more of our ADSs or shares; |
• | real estate investment trusts or regulated investment companies; |
• | U.S. persons whose “functional currency” is not the U.S. dollar; |
• | certain former citizens or long-term residents of the United States; and |
• | Non-U.S. Holders (as defined below). |
• | a citizen or resident individual of the United States; |
• | a corporation or other entity taxable as a corporation created or organized in or under the laws of the United States, any state thereof, or the District of Columbia; |
• | an estate the income of which is subject to U.S. federal income taxation, regardless of its source; or |
• | a trust if it is subject to the primary supervision of a court within the United States and one or more U.S. persons have the authority to control all substantial decisions of the trust or has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person. |
• | a foreign corporation that is eligible for the benefits of a comprehensive income tax treaty with the United States that includes an exchange of information program; or |
• | a foreign corporation if its stock with respect to which a dividend is paid or its ADSs backed by such stock are readily tradable on an established securities market within the United States. |
• | no law which is enacted in the Cayman Islands imposing any tax to be levied on profits or income or gains or appreciation applies to us or our operations; and |
• | the aforesaid tax or any tax in the nature of estate duty or inheritance tax are not payable on our ordinary shares, debentures or other obligations. |
ITEM 11. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
ITEM 13. |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. |
CONTROLS AND PROCEDURES |
ITEM 16A. |
AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. |
CODE OF ETHICS |
ITEM 16C. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
(in thousands) |
||||||||
Audit Fees (1) |
881 | 887 | ||||||
Audit-Related Fees (2) |
— | — | ||||||
Tax Fees (3) |
200 | 190 | ||||||
All Other Fees (4) |
— | — | ||||||
Total |
1,081 | 1,077 |
(1) | Audit Fees |
(2) | Audit-Related Fees |
(3) | Tax Fees |
(4) | All other fees |
ITEM 16D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
ITEM 16F. |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. |
CORPORATE GOVERNANCE |
ITEM 17. |
FINANCIAL STATEMENTS |
ITEM 18. |
FINANCIAL STATEMENTS |
ITEM 19. |
EXHIBITS |
Exhibit Number |
Description | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File — the cover page XBRL tags are embedded within the Exhibit 101 Inline XBRL document set |
* | Filed herewith. |
SILICON MOTION TECHNOLOGY CORPORATION | ||
By: |
/S/ WALLACE C. KOU | |
Wallace C. Kou, President and Chief Executive Officer |
F-2 |
||||
F-4 |
||||
F-5 |
||||
F-6 |
||||
F-7 |
||||
F-8 |
||||
F-9 |
• | We tested the design and operating effectiveness of controls over management’s goodwill impairment analysis, including those over the assumptions used in determination of Shannon reporting unit’s fair value, such as controls related to management’s selection of the discount rate and assessment on the reasonableness of forecasts of future revenue. |
• | We evaluated management’s ability to accurately forecast future revenue by comparing actual results to management’s historical forecasts. |
• | We performed sensitivity analyses to evaluate the risk of impairment if key assumptions are changed. |
• | We evaluated the reasonableness of management’s forecasts of revenue by comparing the forecasts to: |
• | Historical revenues. |
• | Internal communications to management and the Board of Directors of the Company’s business plans that support the forecast of revenue. |
• | Forecasted information included in Company’s press releases as well as in analyst and industry reports for the Company and its peer companies. |
• | We tested the underlying data used in the discounted cash flow calculations and the mathematical accuracy of the discounted cash flow calculations. |
• | We considered the impact of industry and market conditions on management’s forecasts for this reporting unit, including consideration of the effects related to the COVID-19 pandemic. |
• | With the assistance of our fair value specialists, we evaluated the reasonableness of the discount rate by (1) testing the source information underlying the determination of the discount rate and the mathematical accuracy of the calculation, and (2) developing a range of independent estimates and comparing those to the discount rate selected by management. |
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
||||||||
Short-term investments |
— | |||||||
Notes and accounts receivable, net |
||||||||
Inventories |
||||||||
Restricted assets-current |
||||||||
Noncurrent assets held for sale |
||||||||
Prepaid expenses and other current assets |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Long-term investments |
||||||||
Property and equipment, net |
||||||||
Deferred income tax assets, net |
||||||||
Goodwill |
— | |||||||
Operating lease assets |
||||||||
Other assets |
||||||||
|
|
|
|
|||||
Total assets |
||||||||
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current Liabilities |
||||||||
Notes and accounts payable |
||||||||
Income tax payable |
||||||||
Refund liabilities |
||||||||
Accrued expenses and other current liabilities |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Other long-term liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
|
|
|
|
|||||
Commitments and Contingencies (Note 19) |
||||||||
Shareholders’ Equity |
||||||||
Ordinary Shares at US$ |
||||||||
Authorized: |
||||||||
Issued and outstanding: |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive income (loss) |
( |
) | ( |
) | ||||
Retained Earnings |
||||||||
|
|
|
|
|||||
Total shareholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and shareholders’ equity |
||||||||
|
|
|
|
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
NET SALES |
||||||||||||
COST OF SALES |
||||||||||||
|
|
|
|
|
|
|||||||
GROSS PROFIT |
||||||||||||
|
|
|
|
|
|
|||||||
OPERATING EXPENSES |
||||||||||||
Research and development |
||||||||||||
Sales and marketing |
||||||||||||
General and administrative |
||||||||||||
Impairment of goodwill and intangible assets |
||||||||||||
Amortization of intangible assets |
— | |||||||||||
|
|
|
|
|
|
|||||||
Total operating expenses |
||||||||||||
|
|
|
|
|
|
|||||||
OPERATING INCOME |
||||||||||||
|
|
|
|
|
|
|||||||
NON-OPERATING INCOME (EXPENSES) |
||||||||||||
Gain (loss) from disposal of subsidiary |
— | ( |
) | |||||||||
Gain from disposal of long-term investments |
— | — | ||||||||||
Gain from disposal of short-term investments |
||||||||||||
Interest income |
||||||||||||
Foreign exchange gain (loss), net |
( |
) | ||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ||||||
Loss on equity-method investment |
( |
) | — | — | ||||||||
Other income (loss), net |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Total non-operating income |
||||||||||||
|
|
|
|
|
|
|||||||
INCOME BEFORE INCOME TAX |
||||||||||||
INCOME TAX EXPENSE |
||||||||||||
|
|
|
|
|
|
|||||||
NET INCOME |
||||||||||||
|
|
|
|
|
|
|||||||
EARNINGS PER ORDINARY SHARE: |
||||||||||||
Basic |
||||||||||||
|
|
|
|
|
|
|||||||
Diluted |
||||||||||||
|
|
|
|
|
|
|||||||
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING |
||||||||||||
Basic (Thousands) |
||||||||||||
|
|
|
|
|
|
|||||||
Diluted (Thousands) |
||||||||||||
|
|
|
|
|
|
|||||||
EARNINGS PER ADS (one ADS equals four ordinary shares): |
||||||||||||
Basic |
||||||||||||
|
|
|
|
|
|
|||||||
Diluted |
||||||||||||
|
|
|
|
|
|
|||||||
WEIGHTED AVERAGE ADS OUTSTANDING |
||||||||||||
Basic (Thousands) |
||||||||||||
|
|
|
|
|
|
|||||||
Diluted (Thousands) |
||||||||||||
|
|
|
|
|
|
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
NET INCOME |
||||||||||||
|
|
|
|
|
|
|||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX EFFECT OF NIL |
||||||||||||
Change in net foreign currency translation adjustments |
( |
) | ( |
) | ||||||||
Change in deferred pension gain (loss) |
— | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
OTHER COMPREHENSIVE INCOME (LOSS) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
TOTAL COMPREHENSIVE INCOME |
||||||||||||
|
|
|
|
|
|
Ordinary Share |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings |
Treasury Stock |
Total Shareholders’ Equity |
|||||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||||||
(thousands) |
US$ |
US$ |
US$ |
US$ |
US$ |
US$ |
||||||||||||||||||||||
BALANCE, JANUARY 1, 2018 |
— | |||||||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income (loss) |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Stock-based compensation expenses |
— | — | — | — | — | |||||||||||||||||||||||
Issuance of ordinary shares upon exercise of employee stock options and restricted stock units |
( |
) | — | — | — | ( |
) | |||||||||||||||||||||
Share repurchase |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Dividends declared (US$ |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, DECEMBER 31, 2018 |
( |
) | ||||||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income (loss) |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Stock-based compensation expenses |
— | — | — | — | — | |||||||||||||||||||||||
Issuance of ordinary shares upon exercise of restricted stock units |
( |
) | — | — | — | ( |
) | |||||||||||||||||||||
Share repurchase |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Treasury stock retired |
( |
) | ( |
) | ( |
) | — | ( |
) | — | ||||||||||||||||||
Dividends declared (US$ |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, DECEMBER 31, 2019 |
( |
) | — | |||||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income (loss) |
— | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation expenses |
— | — | — | — | — | |||||||||||||||||||||||
Issuance of ordinary shares upon exercise of restricted stock |
( |
) | — | — | — | ( |
) | |||||||||||||||||||||
Share repurchase |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Treasury stock retired |
( |
) | ( |
) | ( |
) | — | ( |
) | — | ||||||||||||||||||
Dividends declared (US$ |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, DECEMBER 31, 2020 |
( |
) | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||||
Net income |
||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization |
||||||||||||
Amortization of intangible assets |
— |
|||||||||||
Gain from disposal of short-term investments |
( |
) |
( |
) |
( |
) | ||||||
Gain (loss) from disposal of subsidiary |
— |
( |
) |
|||||||||
Gain from disposal of long-term investments |
— |
( |
) |
— |
||||||||
Loss on equity-method investment |
— |
— |
||||||||||
Stock-based compensation |
||||||||||||
Loss on disposal of property and equipment |
||||||||||||
Impairment of goodwill and intangible assets |
||||||||||||
Deferred income taxes |
( |
) |
( |
) | ||||||||
Changes in operating assets and liabilities: |
||||||||||||
Short-term investments |
||||||||||||
Notes and accounts receivable |
( |
) |
( |
) |
( |
) | ||||||
Inventories |
( |
) |
( |
) | ||||||||
Prepaid expenses and other current assets |
( |
) |
( |
) | ||||||||
Other assets |
( |
) |
||||||||||
Notes and accounts payable |
( |
) |
||||||||||
Refund liabilities |
( |
) | ||||||||||
Accrued expenses and other current liabilities |
( |
) |
||||||||||
Income tax payable |
( |
) |
( |
) |
||||||||
Other liabilities |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Net cash provided by operating activities |
||||||||||||
|
|
|
|
|
|
|||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||||||
Purchase of long-term investment |
( |
) |
— |
( |
) | |||||||
Proceeds from sale of subsidiary |
— |
— |
||||||||||
Proceeds from sale of long-term investment |
— |
— |
||||||||||
Purchase of property and equipment |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) investing activities |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||||||
Repayments of bank loan |
( |
) |
— |
( |
) | |||||||
Proceeds from bank loan |
— | — | ||||||||||
Dividends paid |
( |
) |
( |
) |
( |
) | ||||||
Share repurchase |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Net cash used in financing activities |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
( |
) |
||||||||||
EFFECT OF EXCHANGE RATE CHANGES |
( |
) |
( |
) |
( |
) | ||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR |
||||||||||||
|
|
|
|
|
|
|||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF YEAR |
||||||||||||
|
|
|
|
|
|
|||||||
SUPPLEMENTAL INFORMATION |
||||||||||||
Interest paid |
— |
|||||||||||
|
|
|
|
|
|
|||||||
Income taxes paid |
||||||||||||
|
|
|
|
|
|
|||||||
Disposal of FCI |
||||||||||||
Total consideration |
— |
— |
||||||||||
Other current assets |
— |
( |
) |
— |
||||||||
Cash and restricted cash disposed |
— |
( |
) |
— |
||||||||
|
|
|
|
|
|
|||||||
Proceeds from sale of subsidiary |
— |
— |
||||||||||
|
|
|
|
|
|
|||||||
Non-Cash Investing and Financing Activities: |
||||||||||||
Unpaid purchase of property and equipment included in accounts payable and accrued liabilities |
||||||||||||
|
|
|
|
|
|
|||||||
Dividend declared included in accrued expenses and accrued liabilities |
||||||||||||
|
|
|
|
|
|
Year Ended December 31, 2018 |
Year Ended December 31, 2019 |
Year Ended December 31, 2020 |
||||||||||||||||||||||||||||||||||
US$ |
US$ |
US$ |
||||||||||||||||||||||||||||||||||
Foreign currency items |
Defined benefit pension plans |
Accumulated other comprehensive income (loss) |
Foreign currency items |
Defined benefit pension plans |
Accumulated other comprehensive income (loss) |
Foreign currency items |
Defined benefit pension plans |
Accumulated other comprehensive income (loss) |
||||||||||||||||||||||||||||
Beginning balance |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Current-period change |
( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Ending balance |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Cash |
||||||||
Time deposits |
||||||||
Repurchase agreements |
||||||||
|
|
|
|
|||||
Total cash and cash equivalents |
||||||||
Restricted cash |
||||||||
|
|
|
|
|||||
|
|
|
|
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Trading securities |
— |
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Trade accounts receivable |
||||||||
Allowance for doubtful accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
|
|
|
|
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Allowance for doubtful accounts |
||||||||||||
Balance, beginning of year |
||||||||||||
Additions (reversals) charged to expense, net |
||||||||||||
Write-offs |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Balance, end of year |
||||||||||||
|
|
|
|
|
|
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Finished goods |
||||||||
Work in process |
||||||||
Raw materials |
||||||||
|
|
|
|
|||||
|
|
|
|
Percentage of Ownership |
December 31 |
|||||||||||||||
2019 |
2020 |
2019 |
2020 |
|||||||||||||
US$ |
US$ |
|||||||||||||||
Equity securities measured at cost: |
||||||||||||||||
Cashido Corp. (Cashido) |
% | % | — | — | ||||||||||||
Vastview Technology, Corp. (Vastview) |
% | % | — | — | ||||||||||||
Deep Vision, Inc (Deep Vision) |
% | % | ||||||||||||||
|
|
|
|
|||||||||||||
|
|
|
|
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Assets held for sale |
||||||||
|
|
|
|
|||||
|
|
|
|
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Cost: |
||||||||
Land |
||||||||
Buildings |
||||||||
Machinery and equipment |
||||||||
Furniture and fixtures |
||||||||
Leasehold and buildings improvement |
||||||||
Software |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
|||||
Accumulated depreciation: |
||||||||
Buildings |
||||||||
Machinery and equipment |
||||||||
Furniture and fixtures |
||||||||
Leasehold and buildings improvement |
||||||||
Software |
||||||||
|
|
|
|
|||||
Prepayment and construction in progress |
||||||||
|
|
|
|
|||||
|
|
|
|
December 31 |
||||||||||||||||
2019 |
||||||||||||||||
US$ |
||||||||||||||||
Cost |
Accumulated Impairment |
Accumulated Amortization |
Net Carrying Amount |
|||||||||||||
Acquisition-related intangible assets |
( |
) | ( |
) | — |
December 31 |
||||||||||||||||||||||||||||||||||||||||
2019 |
2020 |
|||||||||||||||||||||||||||||||||||||||
US$ |
US$ |
|||||||||||||||||||||||||||||||||||||||
Cost |
Disposal of FCI |
Accumulated Impairment |
Foreign Currency Adjustment |
Net Carrying Amount |
Cost |
Disposal of FCI |
Accumulated Impairment |
Foreign Currency Adjustment |
Net Carrying Amount |
|||||||||||||||||||||||||||||||
Goodwill |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — |
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Refund liabilities |
||||||||
|
|
|
|
Year Ended December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Refund liabilities |
||||||||
Balance, beginning of year |
||||||||
Additions |
||||||||
Actual sales return and discount |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Balance, end of year |
||||||||
|
|
|
|
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Wages and bonus |
||||||||
Dividends |
||||||||
Research and development payable |
||||||||
License fees and royalties |
||||||||
Professional fees |
||||||||
Equipment |
||||||||
Lease liabilities – current portion |
||||||||
Others |
||||||||
|
|
|
|
|||||
|
|
|
|
December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Change in benefit obligation |
||||||||||||
Projected benefit obligation at beginning of year |
||||||||||||
Service cost |
||||||||||||
Interest cost |
||||||||||||
Actuarial loss (gain) |
( |
) | ||||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ||||||
Disposal of subsidiary |
— | ( |
) | — | ||||||||
|
|
|
|
|
|
|||||||
Projected benefit obligation at end of year |
||||||||||||
|
|
|
|
|
|
|||||||
Change in plan assets |
||||||||||||
Fair value of plan assets at beginning of year |
||||||||||||
Actual return on plan assets |
||||||||||||
Employer contributions |
||||||||||||
Benefits paid |
( |
) | ( |
) | ( |
) | ||||||
Disposal of subsidiary |
— | ( |
) | — | ||||||||
|
|
|
|
|
|
|||||||
Fair value of plan assets at end of year |
||||||||||||
|
|
|
|
|
|
|||||||
Funded status recognized as an other liabilities |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Net loss |
||||||||||||
|
|
|
|
|
|
|||||||
Total recognized in accumulated other comprehensive income |
||||||||||||
|
|
|
|
|
|
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Service cost |
||||||||||||
Interest cost |
||||||||||||
Projected return on plan assets |
( |
) | ( |
) | ( |
) | ||||||
Amortization of unrecognized net transition obligation and unrecognized net actuarial gain |
||||||||||||
|
|
|
|
|
|
|||||||
Net periodic benefit cost |
||||||||||||
|
|
|
|
|
|
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Recognize the decrease in net gain (loss) |
— | |||||||||||
|
|
|
|
|
|
|||||||
Total recognized in other comprehensive loss (income) |
— | |||||||||||
|
|
|
|
|
|
US$ |
||||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
2026 and thereafter |
2018 |
2019 |
2020 |
||||||||||||||
Taiwan |
Korea |
Taiwan |
Taiwan |
|||||||||||||
Weighted-average assumptions used to determine benefit obligations: |
||||||||||||||||
Discount rate |
% | % | % | % | ||||||||||||
Rate of compensation increase |
% | % | % | % | ||||||||||||
Weighted-average assumptions used to determine net projected benefit cost: |
||||||||||||||||
Discount rate |
% | % | % | % | ||||||||||||
Expected long-term return on plan assets |
% | % | % | % | ||||||||||||
Rate of compensation increase |
% | % | % | % |
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Current |
||||||||||||
Deferred |
( |
) | ( |
) | ||||||||
Income tax expense |
||||||||||||
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Domestic |
( |
) | ( |
) | ( |
) | ||||||
Foreign |
||||||||||||
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Tax expense at statutory rate of Cayman |
||||||||||||
Differences between Cayman and foreign statutory tax rates |
||||||||||||
Permanent differences |
( |
) | ||||||||||
Temporary differences |
( |
) | ( |
) | ||||||||
Alternative minimum tax |
||||||||||||
Income tax on undistributed earnings |
||||||||||||
Net changes in income tax credit |
||||||||||||
Net changes in valuation allowance of deferred income tax assets |
( |
) | ||||||||||
Net operating loss carryforwards |
( |
) | ( |
) | ( |
) | ||||||
Liabilities related to unrealized tax benefits |
( |
) | ( |
) | ( |
) | ||||||
Adjustment of prior years’ taxes and others |
( |
) | ( |
) | ||||||||
Income tax expense |
||||||||||||
December 31 |
||||||||
2019 |
2020 |
|||||||
US$ |
US$ |
|||||||
Notes and accounts receivable |
||||||||
Stock-based compensation |
||||||||
Allowance for sales return |
||||||||
Inventory reserve |
||||||||
Foreign currency translation |
( |
) | ||||||
Property and equipment |
( |
) | ( |
) | ||||
Investment tax credits |
||||||||
Net operating loss carryforwards |
||||||||
Others |
||||||||
Valuation allowance |
( |
) | ( |
) | ||||
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Balance, beginning of year |
||||||||||||
Increases in tax positions taken in current year |
||||||||||||
Decrease in tax position taken in prior year primarily related to the resolution of tax audit |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance, end of year |
||||||||||||
|
|
|
|
|
|
Tax Jurisdiction |
Tax Years | |
China |
||
Hong Kong |
||
Taiwan |
||
United States |
2018 |
2019 |
2020 |
||||||||||||||||||||||
Dividends Per Share (US$) |
Amount (in US$ thousand) |
Dividends Per Share (US$) |
Amount (in US$ thousand) |
Dividends Per Share (US$) |
Amount (in US$ thousand) |
|||||||||||||||||||
First quarter |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Second quarter |
$ | $ | $ | |||||||||||||||||||||
Third quarter |
$ | $ | $ | |||||||||||||||||||||
Fourth quarter |
$ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
$ | $ | $ | ||||||||||||||||||||||
|
|
|
|
|
|
Unit (in Thousands) |
||||
Available for grant at January 1, 2018 |
||||
Restricted stock units granted |
( |
) | ||
Restricted stock units forfeited |
||||
|
|
|||
Available for grant at December 31, 2018 |
||||
Restricted stock units granted |
( |
) | ||
Restricted stock units forfeited |
||||
|
|
|||
Available for grant at December 31, 2019 |
||||
Restricted stock units granted |
( |
) | ||
Restricted stock units forfeited |
||||
|
|
|||
Available for grant at December 31, 2020 |
||||
|
|
Number of Non-vested Stock Units (in Thousands) |
Weighted Average Grant Date Fair Value (US$) |
Weight Average Remaining Recognition Period (Years) |
||||||||||
Non-vested at January 1, 2018 |
||||||||||||
Restricted stock units granted |
||||||||||||
Restricted stock units vested |
( |
) | ||||||||||
Restricted stock units forfeited |
( |
) | ||||||||||
|
|
|
|
|||||||||
Non-vested at December 31, 2018 |
||||||||||||
Restricted stock units granted |
||||||||||||
Restricted stock units vested |
( |
) | ||||||||||
Restricted stock units forfeited |
( |
) | ||||||||||
|
|
|
|
|||||||||
Non-vested at December 31, 2019 |
||||||||||||
Restricted stock units granted |
||||||||||||
Restricted stock units vested |
( |
) | ||||||||||
Restricted stock units forfeited |
( |
) | ||||||||||
|
|
|
|
|||||||||
Non-vested at December 31, 2020 |
||||||||||||
|
|
|
|
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Cost of sales |
||||||||||||
Research and development |
||||||||||||
Sales and marketing |
||||||||||||
General and administrative |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
Operating Lease Obligations |
||||
Fiscal Year: |
||||
2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
2026 and thereafter |
||||
|
|
|||
Total |
||||
Less imputed interest |
||||
|
|
|||
s |
||||
t |
||||
|
|
|||
s |
$ | |||
|
|
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Mobile Storage |
||||||||||||
Mobile Communications |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
Year Ended December 31 |
||||||||||||
2018 (1) |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Taiwan |
||||||||||||
United States |
||||||||||||
Korea |
||||||||||||
China |
||||||||||||
Malaysia |
||||||||||||
Singapore |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
(1) | In 2019 and 2020, revenue billed to Japan was reclassified to others. |
Year Ended December 31 |
||||||||||||||||||||||||
2018 |
2019 |
2020 |
||||||||||||||||||||||
US$ |
% |
US$ |
% |
US$ |
% |
|||||||||||||||||||
Intel |
* | * | ||||||||||||||||||||||
Micron |
* | * | ||||||||||||||||||||||
SK Hynix |
* | * | * | * |
* | Less than 10% |
Year Ended December 31 |
||||||||||||
2018 |
2019 |
2020 |
||||||||||
US$ |
US$ |
US$ |
||||||||||
Taiwan |
||||||||||||
United States |
||||||||||||
Korea |
||||||||||||
China |
||||||||||||
Japan |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
US$ |
US$ |
US$ |
US$ |
|||||||||||||
Assets |
||||||||||||||||
Short-term investments — trading securities |
— | — |
Exhibit 8.1
Significant Subsidiaries of Silicon Motion Technology Corporation
Name of Entity |
Jurisdiction of Incorporation | |
Silicon Motion, Inc. | Taiwan | |
Silicon Motion (MCO) Ltd*. | Macau | |
Silicon Motion Technology (HK) Ltd. | Hong Kong |
* | Liquidated in December 2020. |
Exhibit 12.1
Certification by the Chief Executive Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
I, Wallace C. Kou, certify that:
1. I have reviewed this annual report on Form 20-F of Silicon Motion Technology Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4. The companys other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting; and
5. The companys other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the companys auditors and the audit committee of companys board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the companys ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the companys internal control over financial reporting.
Date: May 12, 2021
/s/ Wallace C. Kou | ||
Name: | Wallace C. Kou | |
Title: | President and Chief Executive Officer |
Exhibit 12.2
Certification by the Chief Financial Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
I, Riyadh Lai, certify that:
1. I have reviewed this annual report on Form 20-F of Silicon Motion Technology Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4. The companys other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting; and
5. The companys other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the companys auditors and the audit committee of companys board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the companys ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the companys internal control over financial reporting.
Date: May 12, 2021
/s/ Riyadh Lai | ||
Name: | Riyadh Lai | |
Title: | Chief Financial Officer |
Exhibit 13.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned each hereby certifies that, to his knowledge, the annual report on Form 20-F of Silicon Motion Technology Corporation for the year ended December 31, 2020 fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and that the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of Silicon Motion Technology Corporation.
The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350 solely for purposes of complying with the provisions of Section 906 of the Sarbanes-Oxley Act of 2002, is not intended to be used or relied upon for any other purpose and is not being filed as part of the periodic report or as a separate disclosure document.
Date: May 12, 2021
/s/ Wallace C. Kou | ||
Name: | Wallace C. Kou | |
Title: | President and Chief Executive Officer | |
/s/ Riyadh Lai | ||
Name: | Riyadh Lai | |
Title: | Chief Financial Officer |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement No. 333-204876 on Form S-8 of our reports dated May 12, 2021, relating to the consolidated financial statements of Silicon Motion Technology Corporation and subsidiaries and the effectiveness of Silicon Motion Technology Corporation and subsidiaries internal control over financial reporting, appearing in the Annual Report on Form 20-F for the year ended December 31, 2020.
/s/ Deloitte & Touche
Taipei, Taiwan
Republic of China
May 12, 2021
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Ordinary Shares, par value | $ 0.01 | $ 0.01 |
Ordinary Shares, Authorized | 500,000,000 | 500,000,000 |
Ordinary Shares, Issued | 138,168,000 | 139,110,000 |
Ordinary Shares, outstanding | 138,168,000 | 139,110,000 |
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 79,746 | $ 64,398 | $ 98,070 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX EFFECT OF NIL | |||
Change in net foreign currency translation adjustments | 497 | (1,265) | (2,148) |
Change in deferred pension gain (loss) | (61) | (15) | |
OTHER COMPREHENSIVE INCOME (LOSS) | 436 | (1,280) | (2,148) |
TOTAL COMPREHENSIVE INCOME | $ 80,182 | $ 63,118 | $ 95,922 |
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands |
Total |
Ordinary Shares |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings (accumulated deficit) |
Treasury Stock |
---|---|---|---|---|---|---|
Beginning Balance at Dec. 31, 2017 | $ 494,051 | $ 1,431 | $ 242,487 | $ 2,643 | $ 247,490 | |
Beginning Balance, shares at Dec. 31, 2017 | 143,162 | |||||
Net income | 98,070 | 98,070 | ||||
Other comprehensive income (loss) | (2,148) | (2,148) | ||||
Stock-based compensation expenses | 20,779 | 20,779 | ||||
Issuance of ordinary shares upon exercise of restricted stock units, shares | 1,517 | |||||
Issuance of ordinary shares upon exercise of restricted stock units | (20) | $ 16 | (36) | |||
Share repurchase | (34,755) | $ (34,755) | ||||
Dividends declared | (43,700) | (43,700) | ||||
Ending Balance at Dec. 31, 2018 | 532,277 | $ 1,447 | 263,230 | 495 | 301,860 | (34,755) |
Ending Balance, shares at Dec. 31, 2018 | 144,679 | |||||
Net income | 64,398 | 64,398 | ||||
Other comprehensive income (loss) | (1,280) | (1,280) | ||||
Stock-based compensation expenses | 14,591 | 14,591 | ||||
Issuance of ordinary shares upon exercise of restricted stock units, shares | 1,505 | |||||
Issuance of ordinary shares upon exercise of restricted stock units | (22) | $ 15 | (37) | |||
Share repurchase | (25,103) | (25,103) | ||||
Treasury stock retired (Shares) | (7,074) | |||||
Treasury stock retired | $ (71) | (12,574) | (47,213) | 59,858 | ||
Dividends declared | (48,077) | (48,077) | ||||
Ending Balance at Dec. 31, 2019 | $ 536,784 | $ 1,391 | 265,210 | (785) | 270,968 | |
Ending Balance, shares at Dec. 31, 2019 | 139,110 | 139,110 | ||||
Net income | $ 79,746 | 79,746 | ||||
Other comprehensive income (loss) | 436 | 436 | ||||
Stock-based compensation expenses | 14,589 | 14,589 | ||||
Issuance of ordinary shares upon exercise of restricted stock units, shares | 1,564 | |||||
Issuance of ordinary shares upon exercise of restricted stock units | (22) | $ 16 | (38) | |||
Share repurchase | (25,044) | (25,044) | ||||
Treasury stock retired (Shares) | (2,506) | |||||
Treasury stock retired | $ (25) | (4,629) | (20,390) | $ 25,044 | ||
Dividends declared | (48,747) | (48,747) | ||||
Ending Balance at Dec. 31, 2020 | $ 557,742 | $ 1,382 | $ 275,132 | $ (349) | $ 281,577 | |
Ending Balance, shares at Dec. 31, 2020 | 138,168 | 138,168 |
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Dividends declared, per share | $ 0.0875 | $ 0.0875 | $ 0.0875 | $ 0.0875 | $ 0.0875 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.35 | $ 0.35 | $ 0.30 |
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 79,746 | $ 64,398 | $ 98,070 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,562 | 12,447 | 11,832 |
Amortization of intangible assets | 0 | 766 | 2,964 |
Gain from disposal of short-term investments | (169) | (48) | (134) |
Gain (loss) from disposal of subsidiary | 293 | (12,409) | |
Gain from disposal of long-term investments | (473) | ||
Loss on equity-method investment | 473 | ||
Stock-based compensation | 14,589 | 14,591 | 20,779 |
Loss on disposal of property and equipment | 143 | 22 | 66 |
Impairment of goodwill and intangible assets | 17,489 | 15,970 | 4,069 |
Deferred income taxes | (667) | 1,118 | (1,664) |
Changes in operating assets and liabilities: | |||
Short-term investments | 2,391 | 1,627 | 3,240 |
Notes and accounts receivable | (7,091) | (18,755) | (12,628) |
Inventories | (21,723) | (10,155) | 12,668 |
Prepaid expenses and other current assets | (5,031) | (1,932) | 2,689 |
Other assets | 172 | (397) | 142 |
Notes and accounts payable | 13,848 | 4,426 | (28,766) |
Refund liabilities | (154) | 167 | 2,093 |
Accrued expenses and other current liabilities | 7,328 | 10,607 | (4,679) |
Income tax payable | 4,421 | (1,698) | (7,329) |
Other liabilities | (1,918) | (2,577) | 4,357 |
Net cash provided by operating activities | 117,229 | 77,695 | 108,242 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of long-term investment | (2,000) | (4,715) | |
Proceeds from sale of subsidiary | 43,968 | ||
Proceeds from sale of long-term investment | 1,715 | ||
Purchase of property and equipment | (19,545) | (11,015) | (74,853) |
Net cash provided by (used in) investing activities | (21,545) | 34,668 | (79,568) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayments of bank loan | (50,000) | (25,000) | |
Proceeds from bank loan | 50,000 | ||
Dividends paid | (48,901) | (44,029) | (43,281) |
Share repurchase | (25,013) | (26,231) | (33,539) |
Net cash used in financing activities | (73,914) | (70,260) | (101,820) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 21,770 | 42,103 | (73,146) |
EFFECT OF EXCHANGE RATE CHANGES | (812) | (977) | (1,250) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 348,253 | 307,127 | 381,523 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF YEAR | 369,211 | 348,253 | 307,127 |
SUPPLEMENTAL INFORMATION | |||
Interest paid | 11 | 376 | |
Income taxes paid | 8,518 | 5,612 | 13,792 |
Disposal of FCI | |||
Total consideration | 54,129 | ||
Other current assets | (245) | ||
Cash and restricted cash disposed | (9,916) | ||
Proceeds from sale of subsidiary | 43,968 | ||
Non-Cash Investing and Financing Activities: | |||
Unpaid purchase of property and equipment included in accounts payable and accrued liabilities | 2,105 | 523 | 960 |
Dividend declared included in accrued expenses and accrued liabilities | $ 36,658 | $ 35,906 | $ 32,851 |
Organization and Operations |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | 1. ORGANIZATION AND OPERATIONS Silicon Motion Technology Corporation (“SMTC”, collectively with its subsidiaries the “Company”) is the global leader in supplying NAND flash controllers for solid state storage devices. The Company supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. The Company also supply customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com. |
Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of SMTC and its wholly-owned subsidiaries. The Company owns 100% of the outstanding shares in all of its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. The actual results could differ from those estimates. Disposal of Subsidiary The Company accounts for the disposal of a subsidiary when it ceases to control the subsidiary’s assets and liabilities. A gain or loss is recognized and measured as the difference between the fair value of consideration received or to be received and the value of assets, liabilities and equity components de-recognized, related to that subsidiary when deconsolidated. On May 31, 2019, the Company completed the sale of FCI to Dialog Semiconductor for a total consideration of approximately US$ 54 million. The Company derecognized the assets and liabilities and recorded a gain of US$12,409 thousand, net of transaction fees on the disposal, which is the difference between the consideration of US$ 54 million and the US$39,367 thousand carrying value of the subsidiary. US$5,400 thousand of the consideration was withheld and deposited into an escrow account and, as the escrowed amount is expected to be released within 12 months, it was classified as restricted assets-current on the consolidated balance sheet as ofDecember 31, 2019 and 2020. Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to a significant concentration of credit risk consist principally of cash equivalents, short term investments and accounts receivable. Cash, cash equivalents and short-term investments balances are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company believes that the concentration of credit risk in its trade receivables, is substantially mitigated by the Company’s credit evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial conditions and limits the amount of credit extended based upon payment history and the customer’s current credit worthiness. The Company regularly reviews the allowance for bad debt and doubtful accounts or expected losses during the accounts receivable collection process by considering factors, such as historical write off and recovery experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. The Company also takes into account reasonable and supportable forecasts of future conditions when evaluating the adequacy of the allowance for doubtful accounts. Historically, a relatively small number of customers have accounted for a significant portion of our net revenue. Sales to two customers in 2018 and 2019, and one customer in 2020 accounted for 10% or more of our net revenue, representing 34%, 31% and 24% of our net revenue in 2018, 2019 and 2020, respectively. In 2020, the significant customer was Micron. In 2019, were Intel and Micron and in 2018, were SK Hynix and Intel. The Company’s top ten customers in 2018, 2019 and 2020 accounted for approximately 69%, 74% and 71% of net sales, respectively. Fair Value of Financial Instruments The carrying amount of the Company’s financial instruments, including cash and cash equivalents, notes and accounts receivable and notes and accounts payables approximates fair value due to the short-term maturity of the instruments. Fair values of short-term investments represent quoted market prices, if available. If no quoted market prices are available, fair values are estimated based on discounted cash flow, or other valuation techniques. Long-term investments in privately-held companies with no readily determinable market value are recorded using the cost method since the cost of obtaining verifiable fair value is unreasonably high. Upon adoption of Accounting Standard Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) starting January 1, 2018, these investments are measured at cost less impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any resulting change in carrying amount would be reflected in net income. The Company’s long-term liabilities approximate their fair values as they contain interest rates that vary according to market interest rates. Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that assets or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the Company. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 — Use unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Use observable inputs other than Level 1 prices such as quoted prices for identical or similar instruments in markets that are not active, quoted prices for similar instruments in active markets, and model-based valuation in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Use inputs that are generally unobservable and reflect the use of significant management judgments and estimates. See Note 21, “Fair Value Measurement”, for the related disclosure. Cash Equivalents The Company considers all highly liquid instruments acquired with a remaining maturity of three months or less when purchased to be cash equivalents. In addition, time deposits with maturities ranging from more than three months to one year qualifies as cash equivalents because they can be readily converted into known amounts of cash without advance notice with the principal of the time deposits protected and not subject to penalty in an early withdrawal. Short-term Investments The Company’s short-term investments are income yielding investments with maturities between three and 12 months, primarily bond funds and principal protected notes that are bought and held principally for the purpose of selling them in the near term and are classified as trading securities as well as senior notes classified as held-to-maturity Allowance for Doubtful Receivables An allowance for doubtful receivables is provided based on a review of the collectability of accounts receivables. The Company determines the amount of allowance for doubtful receivables by examining the historical collection experience, current trends in the credit quality of its customers and its internal credit policies as well as current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect a customer’s ability to pay. Inventories Inventories are stated at the lower of cost or net realizable value for raw materials, work in process and finished goods. Inventories are recorded at standard cost and adjusted to the approximate weighted-average cost at the balance sheet date. The Company assesses its net realizable value of the inventory for estimated obsolescence or unmarketable inventory based upon management’s assumptions about future demand and market conditions. In estimating reserves for obsolescence, the Company primarily evaluates estimates based on the timing of the introduction of new products and the quantities remaining of old products and provides reserves for inventory on hand in excess of the estimated demand. Estimated losses on slow-moving items are recognized and included in the allowance for losses. Long-term Investments Investee companies over which the Company had the ability to exercise significant influence but did not have a controlling interest and was the primary beneficiary were accounted for using the equity method. Significant influence was generally considered to exist when the Company had an ownership interest in the voting shares of the investee between 20% and 50% and other factors, such as representation in the investee’s board of directors, voting rights and the impact of commercial arrangements, were considered in determining whether the equity method of accounting was appropriate. Under this method of accounting, the Company recorded its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. The Company evaluated its equity method investments for impairment whenever events or changes in circumstances indicated that the carrying amounts of such investments might not be recoverable. Prior to adopting ASU 2016-01 on January 1, 2018, the Company had long-term investments in companies that it does not exercise significant influence and accounted for these investments under the cost method. Management regularly evaluates financial information related to these investments to determine whether an other than temporary decline in their value exists. Factors indicative of an other than temporary decline include recurring operating losses, credit defaults and subsequent rounds of financings at lower valuation. Management periodically weighs all quantitative and qualitative factors in determining if any impairment loss exists. When a decline in value is deemed to be other-than-temporary, the Company recognizes an impairment loss in other income and expense. After adopting ASU 2016-01 on January 1, 2018, the Company elected to record equity investments without readily determinable fair values and not accounted for by the equity method at cost less impairment and adjusted for subsequent changes in fair value. Noncurrent Assets Held for Sale The Company is disposing of property located in Shanghai and account for these assets as “held for sale” as they meet the criteria specified in Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment.” Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Significant additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Depreciation is computed using the straight-line method over estimated useful lives that range as follows: buildings — 25 to 50 years; machinery and equipment — 3 to 6 years; furniture and fixtures — 3 to 8 years; software — 1 to 5 years; leasehold and buildings improvement — the shorter of the estimated useful life or lease term, which is generally 2 to 6 years. Land is not depreciated. Depreciation expense on property and equipment were approximately US$11,832 thousand, US$12,447 thousand and US$13,562 thousand for the years ended December 31, 2018, 2019 and 2020, respectively. Upon the sale or other disposal of property and equipment, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is credited or charged to operating income. Lease The Company determines if an arrangement is a lease at inception. Operating lease right-of-use Goodwill and Intangible Assets Goodwill is the excess of the purchase price paid over the fair value of the net tangible and intangible assets acquired in a business combination. Intangible assets, which consist primarily of development technology, are amortized over their estimated useful lives, of 3.5 to 5.5 years. Impairment of Goodwill and Long-Lived Assets The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. Estimates of undiscounted cash flows may differ from actual cash flows due to, among other things, technological changes, economic conditions, changes to the business model or changes in operating performance. If the sum of the undiscounted cash flows is less than the carrying value, an impairment loss is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined by reference to quoted market prices, if available, or discounted cash flows, as appropriate. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing in fiscal year 2018, 2019 and 2020. The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or sooner if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company conducts its annual impairment test of goodwill on November 30. Reporting units may be operating segments as a whole or an operation one level below an operating segment, referred to as a component. Estimating fair value is performed by utilizing various valuation approaches, such as income approach or market approach. The total of all reporting unit fair values is also compared to the Company’s market capitalization plus control premium for reasonableness. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing. Other Assets Other assets consist of deposits for office leases. Restricted Assets Restricted assets consist of restricted cash, cash set aside as collateral for obtaining foundry capacity and escrowed cash receipted from the sale of an asset. . Other long-term liabilities Other long-term liabilities primarily consist of noncurrent lease liabilities and unrecognized tax benefit. Pension Costs For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees’ individual pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on actuarial calculations. Revenue Recognition The Company adopts Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606) on January 1, 2018. The Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Under the new revenue recognition standard, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company enters into contracts that may include products that are capable of being distinct and accounted for as separate performance obligations. To date, the majority of the revenue has been generated by sales associated with products, where a single performance obligation is identified in general. Revenue from services has been insignificant. Performance obligations associated with product sales transactions are generally satisfied when control passes to customers upon shipment or the written acceptance of the customers. Accordingly, product revenue is recognized at a point in time when control of the asset is transferred to the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer in an amount that reflects the consideration to which it is entitled in exchange for those goods. Some of the Company’s sales are made to distributors Under terms where control passes to the distributor upon shipment, and payment is not contingent on the distributors’ resale of the product. The Company grants certain distributors limited rights of return and price protection rights on unsold products. The return rights are generally limited to five percent of the monetary value of products purchased within the preceding six months, provided that the distributor places a corresponding restocking order of equal or greater value. An allowance for sales returns for distributors and all customers is recorded at the time of sale based on historical returns information available, management’s judgment and any known factors at the time the financial statements are prepared that would significantly affect the allowance. Price protection rights are based on the inventory products the distributors have on hand at the date the price protection is offered. The actual price adjustments to distributors incurred by the Company are minimal. The Company provides warranty for its products. Warranty returns have been infrequent and relate to defective or off-specification parts. The Company estimates a reserve for warranty based on historical experience and records this amount to cost of sales. For the years ended December 31, 2018, 2019 and 2020, the Company did not experience significant costs associated with warranty returns. Research and Development Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as product masks, IP licensing, design tool and testing costs, equipment depreciation, amortization of intangible assets and an allocated portion of occupancy costs. Income Taxes The provision for income tax represents income tax paid and payable for the current year plus changes in the deferred income tax assets and liabilities during the years. Deferred income tax assets are recognized for net operating loss carryforwards, research and development credits, and temporary differences. The Company believes that uncertainty exists regarding the realizability of certain deferred income tax assets and, accordingly, has established a valuation allowance for those deferred income tax assets to the extent the realizability is not deemed to be more likely than not. Deferred income tax assets and liabilities are measured using enacted tax rates. The Company utilizes a two steps approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained in a dispute with tax authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. Foreign Currency Transactions Foreign currency transactions are recorded at the rates of exchange in effect when the transaction occurs. Gains or losses, resulting from the application of different foreign exchange rates when cash in foreign currency is converted into the entities’ functional currency, or when foreign currency receivables and payables are settled, are credited or charged to income in the period of conversion or settlement. At the balance sheet date, assets and liabilities denominated in foreign currencies are remeasured based on prevailing exchange rates and any resulting gains or losses are credited or charged to income. Translation of Foreign Currency Financial Statements The reporting currency of the Company is the U.S. dollars. The functional currency of some of the Company’s subsidiaries is the local currency of the respective entity. Accordingly, the financial statements of the foreign subsidiaries were translated into U.S. dollars at the following exchange rates: assets and liabilities — current rate on the balance sheet date; shareholders’ equity — historical rates; income and expenses — average rate during the period. The resulting translation adjustment is recorded as a separate component of comprehensive income. Comprehensive Income (Loss) Comprehensive income and loss represents net income (loss) plus the results of certain changes in shareholders’ equity during a period from non-owner sources.
Legal Contingencies The Company is regularly involved in various claims and legal proceedings. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to the pending claims and litigation and revises these estimates as appropriate. Such revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position. Earnings Per Share Basic earnings per share are computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share are computed by dividing net income attributable to ordinary shareholders by the weighted-average number of ordinary shares and potentially dilutive shares of ordinary shares outstanding during the period. Dilutive shares outstanding include unvested RSUs. Dilutive securities are excluded from the computation of the diluted income per share in periods when their effect is anti-dilutive. The effect of dilutive securities were 389 thousand shares (97 thousand ADSs), 475 thousand shares (119 thousand ADSs) and 489 thousand shares (123 thousand ADSs) for the years ended December 31, 2018, 2019 and 2020, respectively. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718 Compensation — Stock Compensation. The value of our restricted stock units is based on the fair value of our shares on the date of grant and expensed over the vesting period. The fair value of RSUs was measured based on the grant date share price, less the present value of expected dividends during the vesting period, discounted at a risk-free interest rate. Treasury Stock Treasury stock is stated at cost and shown as a reduction to shareholders’ equity. The Company retires ordinary shares repurchased. Accordingly, upon retirement the excess of the purchase price over par value is allocated between additional paid-in capital and retained earnings based on the average issuance price of the shares repurchased. A repurchase of ADSs is recorded as treasury stock until the Company completes the withdrawal of the underlying ordinary shares from the ADS program. Recent Accounting Pronouncements In June 2016, the FASB issued an accounting update to amend the guidance on the impairment of financial instruments that are not measured at fair value through profit and loss, which has subsequently been amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, ASU 2020-02, and ASU 2020-03. These amendments introduced a current expected credit loss (CECL) model based on expected losses rather than incurred losses to estimate credit losses on financial instruments measured at amortized cost and requires a broader range of relevant information about past events, current conditions, and reasonable and supportable forward-looking forecasts information to estimate the lifetime expected credit loss. In addition, under the amendment, an entity recognizes an allowance for expected credit losses on financial instruments measured at amortized cost and available-for-sale In August 2018, the FASB issued an accounting update to amend fair value measurement disclosure requirements to eliminate, add and modify certain disclosures to improve the effectiveness of such disclosure. The amendments removed (1) the disclosure requirements for transfers between Levels 1 and 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels of the fair value hierarchy; and (3) the valuation processes for Level 3 fair value measurements. Additionally, the amendments modified the disclosure requirements for investments in certain entities that calculate net asset value and measurement uncertainty. Finally, the amendments added disclosure requirements for the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This amendment is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. The adoption of this amendment did not have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. In August 2018, the FASB issued an accounting update to modify the disclosure requirements by removing, modifying and clarifying disclosures related to defined benefit plans. This amendment modified the disclosure requirements for employers that sponsor defined benefit pension plans or other post-retirement benefit plans. Certain disclosure requirements have been removed while the disclosure requirements of (1) the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period, have been added. The amendment also clarified the disclosure requirements with respect to the projected benefit obligation and the accumulated benefit obligation. The amendment is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The amendments should be applied on a retrospective basis to all periods presented. The adoption of this amendment did not have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. In December 2019, the FASB issued an accounting update which eliminated certain exceptions to the general principles in ASC 740, such as recognizing deferred taxes for equity investments, the incremental approach to performing intra-period tax allocation, and calculating income taxes in interim periods. The standard also simplified income tax accounting for franchise taxes that are partially based on income, transactions with a government that result in a
step-up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim period. This amendment is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. |
Cash, Cash Equivalents, and Restricted Cash |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash | 3. CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
Short-Term Investments |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments | 4. SHORT-TERM INVESTMENTS
The Company classified certain short-term investments as trading securities. Realized gains on sales of these trading securities were US$134 thousand, US$48 thousand and US$169 thousand for the years ended December 31, 2018, 2019 and 2020, respectively . The amount of unrealized losses related to trading securities at year end was nil for the years ended December 31, 2018, 2019 and 2020, respectively. |
Notes and Accounts Receivable |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes and Accounts Receivable | 5. NOTES AND ACCOUNTS RECEIVABLE
The changes in allowance are summarized as follows:
|
Inventories |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | 6. INVENTORIES The components of inventories are as follows:
The Company wrote down US$2,095 thousand, US$9,085 thousand and US$6,883 thousand in 2018, 2019 and 2020, respectively, for obsolete or unmarketable inventory. |
Long-Term Investments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments | 7. LONG-TERM INVESTMENTS As of December 31, 2019 and 2020, the Company held equity investments in several privately-held companies with the carrying value as follows:
In June 2018, the Company invested US$3,000 thousand in the preferred stock of Deep Vision which is accounted for under the cost method. Deep Vision is a developer of
low-power deep-learning processors. In March 2020, the Company invested additional US$2,000 thousand in the SAFE securities of Deep Vision. |
Noncurrent Assets Held for Sale |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent Assets Held for Sale | 8. NONCURRENT ASSETS HELD FOR SALE
held-for-sale |
Property and Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | 9. PROPERTY AND EQUIPMENT
In April 2006, the Company leased a property located in Taipei, Taiwan to a third party. The lessee has been renewing annually and last renewed in March 2021. Net carrying value of the properties as of December 31, 2019 and 2020 was US$673 thousand and US$654 thousand, respectively. Annual rental income from the lease is US$45 thousand. In September 2018, the Company paid US$58,931 thousand to acquire land in Hsinchu, Taiwan for the purpose of constructing its future Taiwan headquarters building. |
Goodwill and Acquired Intangible Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Acquired Intangible Assets | 10. GOODWILL AND ACQUIRED INTANGIBLE ASSETS Intangible assets:
The Company assesses the impairment of intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In 2018 and 2019, the Company determined that the carrying amounts for intangible assets of its Bigtera and Shannon reporting units exceeded its fair value, which was close to nil, and recorded impairment charges of US$3,444 thousand and US$255 thousand due to lower than projected business outlook. The impairment was measured based on the discounted cash flow method, which uses assumptions that are considered Level 3 within the fair value hierarchy due to the significant use of unobservable company specific information. Amortization expense of acquisition-related intangible assets for the years ended December 31, 2018, 2019 and 2020 were US$2,964 thousand, US$766 thousand and nil, respectively. Goodwill: Goodwill that resulted from the Company’s acquisition of Shannon Systems in 2015 and Bigtera in 2017were US$33,204 thousand and US$625 thousand, respectively. Goodwill is tested for impairment annually on November 30. Total goodwill was US$17,489 thousand as of December 31, 2019 and nil as of December 31, 2020after recognizing an impairment charge for the Shannon reporting unit. The Company applied a one-step quantitative test and recorded the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value. Fair value determinations are sensitive to changes in the underlying assumptions and factors including those relating to estimating future operating cash flows to be generated from the reporting unit which are dependent upon historical data and internal forecasts and projections developed by management. Assumptions used to determine fair value used are classified as Level 3 within the fair value hierarchy due to the significant use of unobservable company-specific information. As a result of the goodwill impairment tests conducted as of June 30, 2019, November 30, 2019 and November 30, 2020, the Company determined that the carrying amounts for Shannon reporting unit exceeded the fair value and recorded goodwill impairment charges of US$15,715 thousand and US$17,489 thousand in the third quarter of 2019 and in the fourth quarter of 2020, respectively. The company used the discounted cash flow method to determine the fair value of the Bigtera unit and the Shannon unit.
|
Short-Term Bank Loans |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Bank Loans | 11. SHORT-TERM BANK LOANS The Company obtained US dollar bank revolver credit facilities and drew down US$25,000 thousand and $50,000 thousand in 2017 and 2020, respectively. The loan was repaid in 2018 and 2020. Interest rates ranged from 0.78% to 2.95% per annum on outstanding monthly balance.The interest expenses for the years ended December 31, 2018, 2019 and 2020 were US$355 thousand, nil and US$11 thousand, respectively. |
Refund Liabilities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Refund Liabilities | 12. REFUND LIABILITIES
Estimated sales returns and other allowances are made and adjusted based on historical experience and the consideration of varying contractual terms. The changes in the refund liabilities are summarized as follows:
|
Accrued Expenses and Other Current Liabilities |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | 13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
|
Pension Plan |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plan | 14. PENSION PLAN SMI Taiwan, the Company’s largest operating company is a Taiwan registered company and subject to Taiwan’s Labor Pension Act (the “Act”), which became effective on July 1, 2005, and the pension mechanism under the Act is deemed a defined contribution plan. The employees who were subject to the Labor Standards Law prior to July 1, 2005 could choose to be subject to the pension mechanism under the Act or continue to be subject to the pension mechanism under the Labor Standards Law. For those employees who were subject to the Labor Standards Law prior to July 1, 2005 and still work for the same company after July 1, 2005 and have chosen to be subject to the pension mechanism under the Act, their seniority as of July 1, 2005 were maintained. The Act prescribes that the rate of contribution by an employer to employees’ pension accounts per month will not be less than 6% of each employee’s monthly salary. According to the Act, SMI Taiwan made monthly contributions and recognized pension costs of US$1,682 thousand, US$1,783 thousand and US$2,109 thousand for the years ended December 31, 2018, 2019 and 2020, respectively. The Company provides a defined benefit plan to the employees of SMI Taiwan under the Labor Standards Law that offers benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to a pension funds (the “Funds”), which is administered by the Labor Pension Fund Supervisory Committee established by the government (the “Committee”) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefit for employees who conform to retirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The government is responsible for the administration of all the defined benefit plans for the companies in Taiwan under the Labor Standards Law. The government also sets investment policies and strategies, determines investment allocation and selects investment managers. As of December 31, 2019 and 2020, the asset allocation was primarily in cash, equity securities and debt securities. Furthermore, under the Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by local banks. The government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. However, information on how investment allocation decisions are made, inputs and valuation techniques used to measure the fair value of plan assets, the effect of fair value measurements using significant unobservable inputs on changes in plan assets for the period and significant concentrations of risk within plan assets is not fully made available to the Company by the government. Therefore, the Company is unable to provide the required fair value disclosures related to pension plan assets. Future contributions will be based on 2% of employees’ annual salary. The Company estimates its contribution for the year ending December 31, 2021 to be US$61 thousand which was determined based on 2% of estimated salaries in 2021. Starting in 2010, the Company provides a defined benefit pension plan to the Korean employees of FCI with at least one year of service. FCI’s overall investment strategy is to avoid a negative return on plan assets. On May 31, 2019, the Company divested FCI. For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees’ individual pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on actuarial calculations. Determining the cost associated with such benefits is dependent on various actuarial assumptions, including discount rate, expected return on plan assets, compensation increase, employee mortality and turnover rates. The Company reviewed its actuarial assumptions at the measurement date on December 31 every year. The effect of modifications to assumptions is recorded in accumulated other comprehensive loss and amortized to net periodic cost over future periods using the corridor method. The Company believes that assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. Independent actuaries perform the required calculations to determine expense in accordance with U.S. GAAP. Actual results may differ from the actuarial assumptions and are generally accumulated and amortized into earnings over future periods. The net periodic costs are recognized as employees render services necessary to earn the benefits . The changes in benefits obligation and plan assets and the reconciliation of funded status are as follows:
Amounts recognized in accumulated other comprehensive income consist of the following:
The accumulated benefit obligation for all defined benefit pension plans was US$3,864 thousand, US$939 thousand and US$1,008 thousand at December 31, 2018, 2019 and 2020, respectively. The components of net periodic benefit cost are as follows:
Other changes in plan assets and benefit obligation recognized in other comprehensive loss:
The estimated net gain for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is US$33 thousand. Expected benefit payments:
The actuarial assumptions to determine the benefit obligations were as follows:
|
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | 15. INCOME TAXES The components of income tax expense are as follows:
The income (loss) before income taxes for domestic and foreign entities is as follows:
Since the Company is based in the Cayman Islands, a British overseas territory with no corporate income tax, tax on pretax income is calculated at the Cayman Islands statutory rate of zero for each year. The Company and its subsidiaries file separate income tax returns. A reconciliation of income tax expense on pretax income at statutory rate and income tax expense is shown below:
Deferred income tax assets (liabilities) are as follows:
The valuation allowance shown in the table above relates to net operating loss carryforwards, tax credits and temporary differences for which the Company believes that realization is uncertain. Valuation allowance decreased by US$1,933 thousand for the year ended December 31, 2019 and increased by US$2,708 thousand for the year ended December 31, 2020, respectively. The decrease in valuation allowance in 2019 was primarily due to the FCI disposal. The increase in valuation allowance in 2020 was primarily due to the uncertainty in generating sufficient taxable income in the future and utilization of operating loss carryforwards before they expire. As of December 31, 2020, the Company’s U.S. federal net operating loss carryforwards for federal income tax purposes were approximately US$36,823 thousand as of December 31, 2020, expiring at various times starting from 2021 through 2037 for Federal losses generated through December 31, 2017, if not utilized. As a result of the U.S. Tax Cuts and Jobs Act (TCJA), all Federal net operating losses of US$12,244 that are generated beginning January 1, 2018 and beyond will carryforward indefinitely. As of December 31, 2020, the Company’s U.S. federal and state research and development tax credit carryforwards for federal and state income tax purposes were approximately US$2,659 thousand and US$1,853 thousand, respectively. If not utilized, the federal tax credit carryforwards will expire starting in 2040 while the state tax credit carryforward has no expiration date in California. Current U.S. federal and California state laws include substantial restrictions on the utilization of net operating losses and credits in the event of an “ownership change” of a corporation. Accordingly, the Company’s ability to utilize net operating loss and tax credit carryforwards may be limited as a result of such “ownership change”. Such a limitation could result in the expiration of carryforwards before they are utilized. As of December 31, 2020, the Company had accumulated undistributed earnings from a foreign subsidiary of US$370 million. No deferred tax liability was recorded in respect of those amounts as these earnings are considered indefinitely reinvested. It is not practicable to estimate the amount of unrecognized deferred tax liabilities for these undistributed foreign earnings. Unrecognized Tax Benefit A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:
At December 31, 2020, the Company had US$19,001 thousand of unrecognized tax benefits that if recognized would affect the effective tax rate. For the years ended December 31, 2018, 2019 and 2020, the total amount of interest expense and penalties related to uncertain tax positions recorded in the provision for income tax expense was approximately US$776 thousand, US$319 thousand and US$430 thousand, respectively. The total amount of accrued interest and penalties recognized as of December 31, 2019 and 2020 was US$4,511 thousand and US$5,179 thousand, respectively. The Company does not expect uncertain tax positions to change in the next twelve months, except in the case of settlements with tax authorities, the likelihood and timing of which are difficult to estimate. The Company files income tax returns in the U.S. and foreign jurisdictions. The following table summarizes the Company’s major jurisdictions and tax year that remain subject to examination by tax authorities as of December 31, 2020:
|
Shareholders' Equity |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | 16. SHAREHOLDERS’ EQUITY Dividends The Company declared cash dividends per ordinary share during the periods presented as follows:
On November 2, 2015, the board of directors, began declaring, declared an annual dividend payable in four quarterly installments. The board of directors declared annual dividends of US$1.20, US$1.40 and US$1.40, equivalent to US$0.30, US$0.35 and US$0.35 per common share, payable in four quarterly installments on October 29, 2018, October 25, 2019 and October 26, 2020, respectively. Future dividends, if any, will be declared by and subject to the discretion of the Company’s board of directors. Share Repurchase On November 21, 2018, the board of directors of the Company authorized a plan to repurchase up to US$200 million of the Company’s ADSs over a 24 month period. On October 26, 2020, the Board of Directors of the Company to November 21, 2021. The repurchase plan does not obligate the Company to acquire any particular amount of ADS and may be modified or suspended at any time at the Company’s discretion. For the years ended December 31, 2018, 2019 and 2020, the Company repurchased 1,006 thousand, 762 thousand and 626 thousand ADSs for a total cost of US$34,755 thousand, US$25,103 thousand and US$25,044 thousand, respectively. The weighted average purchase price per ADS repurchased was US$34.54, US$32.82 and US$39.93 in 2018, 2019 and 2020, respectively. |
Equity Incentive Plan |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Incentive Plan | 17. EQUITY INCENTIVE PLAN 2015 Equity Incentive Plan Restricted stock units are converted into shares of the Company’s ordinary shares upon vesting on one-for-one non-vested share awards as defined under ASC 718. On June 3, 2015, the Company adopted its 2015 Equity Incentive Plan (“the 2015 Plan”). The 2015 Plan provides for the grant of stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights, which may be granted to employees (including officers), directors and consultants. The 2015 Plan reserved 20,000 thousand shares of ordinary shares for issuance upon exercise of stock options and restricted stock units. Restricted Stock Units Activity The following is a summary of, the 2015 Plan, which includes restricted stock units:
The related tax effect for stock-based compensation benefit (expense) were US$177 thousand, US$(49) thousand and US$11 thousand for 2018, 2019 and 2020, respectively. The related tax effect for stock-based compensation expense for restricted stock units exercised during 2018, 2019 and 2020 was US$2,211 thousand, US$3,446 thousand and US$2,188 thousand, respectively. The related tax effect was determined using the applicable tax rates . Restricted Stock Units A summary of the status of restricted stock units and changes is as follows:
As of December 31, 2020, there was US$3,116 thousand of total unrecognized compensation cost related to restricted stock units granted under the 2015 Plan. Stock-based Compensation Expense The following table shows total stock-based compensation expense included in the Consolidated Statements of Income for the years ended December 31, 2018, 2019 and 2020.
|
Lease |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease | 18. LEASE Operating Leases The Company entered into various operating lease agreements which consist of real property and office equipment with lease periods expiring between fiscal years 2021 and 2027. The Company recognized leased assets in operating lease assets of US$8,603 and US$6,704 thousand and corresponding accrued expenses and other current liabilities of US$3,046 and US$3,058 thousand, and other long-term liabilities of US$5,621 and US$3,881 thousand. The weight average remaining lease term was 3.5 years and 2.87 years, and the weight average discount rate was 3.78% and 3.56% as of December 31, 2019 and 2020, respectively. Future minimum lease payments under the operating leases as of December 31, 2020, were as follows:
Operating lease expense for the years ended December 31, 2018, 2019 and 2020 the cash paid for amounts included in the measurement of operating lease liabilities were US$3,233 thousand and US$3,226 thousand for the year ended December 31, 2019 and 2020, respectively. were US$3,933 thousand, US$4,775 thousand, and US$4,261 thousand, respectively. For the supplemental cash flow information related to leases, |
Commitments and Contingencies |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. COMMITMENTS AND CONTINGENCIES Litigation From time to time, the Company is subject to threats of litigation or actual litigation in the ordinary course of business, some of which may be material. The Company believes that there are no currently pending litigation matters that, if determined adversely by the Company, would have a material effect on the Company’s business. |
Segment Information |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 20. SEGMENT INFORMATION The Company is the global leader and pioneer in developing NAND flash controllers for solid storage devices. The Company currently operates as one reportable segment. The chief operating decision maker (“CODM”) is the Chief Executive Officer. The fact that the Company operates in only one reportable segment is because the decisions on allocation of resources and other operational decisions are made by the CODM based on his direct involvement with the Company’s operations and product development. The Company groups its products into three categories, based on the markets in which they may be used. The following summarizes the Company’s revenue by product category:
Revenue is attributed to a geographic area based on the bill-to location. The following summarizes the Company’s revenue by geographic area:
Major customers representing at least 10% of net sales
Long-lived assets (property and equipment, net) by geographic area were as follows:
|
Fair Value Measurement |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | 21. FAIR VALUE MEASUREMENT The following section describes the valuation methodologies the Company uses to measure assets and liabilities at fair value. The Company uses quoted prices in active markets for identical assets to determine fair value where applicable. This pricing methodology applies to Level 1 investments such as bond funds. The fair value of principal protected notes was determined by its present value utilizing rate of return as the market observable input as there are no quoted prices in active markets for identical securities and are classified as Level 2 instruments. For the years ended December 31, 2019, none of the Company’s assets were Level 2 instruments assets valued based significant unobservable inputs. The following table presents our assets measured at fair value on a recurring basis as of December 31, 2019: December 31, 2019
|
Subsequent Events |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. SUBSEQUENT EVENTS On February 18, 2021, the Company won a bid with a third-party to build an office building in Taipei and paid a NT$30,000 thousand (approximately US$1,051 thousand) bid bond. The Company is expected to execute a property development agreement in May 2021, at which time it will pay a third of a NT$30,000 thousand (approximately US$1,051 thousand) administrative fee, with balance to be paid at later dates, and deliver a NT$150,000 thousand (approximately US$5,257 thousand) performance bond secured by a certificate of deposit. Based on the terms of the property development agreement, the Company is required to complete construction within three years. Property development costs will be defined and agreed in a subsequent agreement. |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of SMTC and its wholly-owned subsidiaries. The Company owns 100% of the outstanding shares in all of its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. The actual results could differ from those estimates. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of Subsidiary | Disposal of Subsidiary The Company accounts for the disposal of a subsidiary when it ceases to control the subsidiary’s assets and liabilities. A gain or loss is recognized and measured as the difference between the fair value of consideration received or to be received and the value of assets, liabilities and equity components de-recognized, related to that subsidiary when deconsolidated. On May 31, 2019, the Company completed the sale of FCI to Dialog Semiconductor for a total consideration of approximately US$ 54 million. The Company derecognized the assets and liabilities and recorded a gain of US$12,409 thousand, net of transaction fees on the disposal, which is the difference between the consideration of US$ 54 million and the US$39,367 thousand carrying value of the subsidiary. US$5,400 thousand of the consideration was withheld and deposited into an escrow account and, as the escrowed amount is expected to be released within 12 months, it was classified as restricted assets-current on the consolidated balance sheet as ofDecember 31, 2019 and 2020. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to a significant concentration of credit risk consist principally of cash equivalents, short term investments and accounts receivable. Cash, cash equivalents and short-term investments balances are maintained with high quality financial institutions, the composition and maturities of which are regularly monitored by management. The Company believes that the concentration of credit risk in its trade receivables, is substantially mitigated by the Company’s credit evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial conditions and limits the amount of credit extended based upon payment history and the customer’s current credit worthiness. The Company regularly reviews the allowance for bad debt and doubtful accounts or expected losses during the accounts receivable collection process by considering factors, such as historical write off and recovery experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. The Company also takes into account reasonable and supportable forecasts of future conditions when evaluating the adequacy of the allowance for doubtful accounts. Historically, a relatively small number of customers have accounted for a significant portion of our net revenue. Sales to two customers in 2018 and 2019, and one customer in 2020 accounted for 10% or more of our net revenue, representing 34%, 31% and 24% of our net revenue in 2018, 2019 and 2020, respectively. In 2020, the significant customer was Micron. In 2019, were Intel and Micron and in 2018, were SK Hynix and Intel. The Company’s top ten customers in 2018, 2019 and 2020 accounted for approximately 69%, 74% and 71% of net sales, respectively. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of the Company’s financial instruments, including cash and cash equivalents, notes and accounts receivable and notes and accounts payables approximates fair value due to the short-term maturity of the instruments. Fair values of short-term investments represent quoted market prices, if available. If no quoted market prices are available, fair values are estimated based on discounted cash flow, or other valuation techniques. Long-term investments in privately-held companies with no readily determinable market value are recorded using the cost method since the cost of obtaining verifiable fair value is unreasonably high. Upon adoption of Accounting Standard Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) starting January 1, 2018, these investments are measured at cost less impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any resulting change in carrying amount would be reflected in net income. The Company’s long-term liabilities approximate their fair values as they contain interest rates that vary according to market interest rates. Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that assets or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the Company. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 — Use unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Use observable inputs other than Level 1 prices such as quoted prices for identical or similar instruments in markets that are not active, quoted prices for similar instruments in active markets, and model-based valuation in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Use inputs that are generally unobservable and reflect the use of significant management judgments and estimates. See Note 21, “Fair Value Measurement”, for the related disclosure. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Equivalents | Cash Equivalents The Company considers all highly liquid instruments acquired with a remaining maturity of three months or less when purchased to be cash equivalents. In addition, time deposits with maturities ranging from more than three months to one year
qualifies as cash equivalents because they can be readily converted into known amounts of cash without advance notice with the principal of the time deposits protected and not subject to penalty in an early withdrawal. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Investments | Short-term Investments The Company’s short-term investments are income yielding investments with maturities between three and 12 months, primarily bond funds and principal protected notes that are bought and held principally for the purpose of selling them in the near term and are classified as trading securities as well as senior notes classified as held-to-maturity |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Doubtful Receivables | Allowance for Doubtful Receivables An allowance for doubtful receivables is provided based on a review of the collectability of accounts receivables. The Company determines the amount of allowance for doubtful receivables by examining the historical collection experience, current trends in the credit quality of its customers and its internal credit policies as well as current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect a customer’s ability to pay. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value for raw materials, work in process and finished goods. Inventories are recorded at standard cost and adjusted to the approximate weighted-average cost at the balance sheet date. The Company assesses its net realizable value of the inventory for estimated obsolescence or unmarketable inventory based upon management’s assumptions about future demand and market conditions. In estimating reserves for obsolescence, the Company primarily evaluates estimates based on the timing of the introduction of new products and the quantities remaining of old products and provides reserves for inventory on hand in excess of the estimated demand. Estimated losses on slow-moving items are recognized and included in the allowance for losses. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Investments | Long-term Investments Investee companies over which the Company had the ability to exercise significant influence but did not have a controlling interest and was the primary beneficiary were accounted for using the equity method. Significant influence was generally considered to exist when the Company had an ownership interest in the voting shares of the investee between 20% and 50% and other factors, such as representation in the investee’s board of directors, voting rights and the impact of commercial arrangements, were considered in determining whether the equity method of accounting was appropriate. Under this method of accounting, the Company recorded its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. The Company evaluated its equity method investments for impairment whenever events or changes in circumstances indicated that the carrying amounts of such investments might not be recoverable. Prior to adopting than temporary decline in their value exists. Factors indicative of an other than temporary decline include recurring operating losses, credit defaults and subsequent rounds of financings at lower valuation. Management periodically weighs all quantitative and qualitative factors in determining if any impairment loss exists. When a decline in value is deemed to be other-than-temporary, the Company recognizes an impairment loss in other income and expense. After adopting ASU 2016-01 on January 1, 2018, the Company elected to record equity investments without readily determinable fair values and not accounted for by the equity method at cost less impairment and adjusted for subsequent changes in fair value.
ASU 2016-01 on January 1, 2018, the Company had long-term investments in companies that it does not exercise significant influence and accounted for these investments under the cost method. Management regularly evaluates financial information related to these investments to determine whether an other |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent Assets Held for Sale | Noncurrent Assets Held for Sale The Company is disposing of property located in Shanghai and account for these assets as “held for sale” as they meet the criteria specified in Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment.” |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Significant additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred. Depreciation is computed using the straight-line method over estimated useful lives that range as follows: buildings — 25 to 50 years; machinery and equipment — 3 to 6 years; furniture and fixtures — 3 to 8 years; software — 1 to 5 years; leasehold and buildings improvement — the shorter of the estimated useful life or lease term, which is generally 2 to 6 years. Land is not depreciated. Depreciation expense on property and equipment were approximately US$11,832 thousand, US$12,447 thousand and US$13,562 thousand for the years ended December 31, 2018, 2019 and 2020, respectively. Upon the sale or other disposal of property and equipment, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is credited or charged to operating income. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease | Lease The Company determines if an arrangement is a lease at inception. Operating lease
right-of-use |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the excess of the purchase price paid over the fair value of the net tangible and intangible assets acquired in a business combination. Intangible assets, which consist primarily of development technology, are amortized over their estimated useful lives, of 3.5 to 5.5 years. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Goodwill and Long-Lived Assets | Impairment of Goodwill and Long-Lived Assets The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. Estimates of undiscounted cash flows may differ from actual cash flows due to, among other things, technological changes, economic conditions, changes to the business model or changes in operating performance. If the sum of the undiscounted cash flows is less than the carrying value, an impairment loss is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined by reference to quoted market prices, if available, or discounted cash flows, as appropriate. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing in fiscal year 2018, 2019 and 2020. The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or sooner if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company conducts its annual impairment test of goodwill on November 30. Reporting units may be operating segments as a whole or an operation one level below an operating segment, referred to as a component. Estimating fair value is performed by utilizing various valuation approaches, such as income approach or market approach. The total of all reporting unit fair values is also compared to the Company’s market capitalization plus control premium for reasonableness. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other Assets Other assets consist of deposits for office leases. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Assets | Restricted Assets Restricted assets consist of restricted cash, cash set aside as collateral for obtaining foundry capacity and escrowed cash receipted from the sale of an asset. . |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term liabilities | Other long-term liabilities Other long-term liabilities primarily consist of noncurrent lease liabilities and unrecognized tax benefit. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Costs | Pension Costs For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees’ individual pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on actuarial calculations. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The Company adopts Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (ASC 606) on January 1, 2018. The Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Under the new revenue recognition standard, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company enters into contracts that may include products that are capable of being distinct and accounted for as separate performance obligations. To date, the majority of the revenue has been generated by sales associated with products, where a single performance obligation is identified in general. Revenue from services has been insignificant. Performance obligations associated with product sales transactions are generally satisfied when control passes to customers upon shipment or the written acceptance of the customers. Accordingly, product revenue is recognized at a point in time when control of the asset is transferred to the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer in an amount that reflects the consideration to which it is entitled in exchange for those goods. Some of the Company’s sales are made to distributors Under terms where control passes to the distributor upon shipment, and payment is not contingent on the distributors’ resale of the product. The Company grants certain distributors limited rights of return and price protection rights on unsold products. The return rights are generally limited to five percent of the monetary value of products purchased within the preceding six months, provided that the distributor places a corresponding restocking order of equal or greater value. An allowance for sales returns for distributors and all customers is recorded at the time of sale based on historical returns information available, management’s judgment and any known factors at the time the financial statements are prepared that would significantly affect the allowance. Price protection rights are based on the inventory products the distributors have on hand at the date the price protection is offered. The actual price adjustments to distributors incurred by the Company are minimal. The Company provides warranty for its products. Warranty returns have been infrequent and relate to defective or off-specification parts. The Company estimates a reserve for warranty based on historical experience and records this amount to cost of sales. For the years ended December 31, 2018, 2019 and 2020, the Company did not experience significant costs associated with warranty returns. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development expense consists primarily of personnel-related expenses, including stock-based compensation, as well as product masks, IP licensing, design tool and testing costs, equipment depreciation, amortization of intangible assets and an allocated portion of occupancy costs. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The provision for income tax represents income tax paid and payable for the current year plus changes in the deferred income tax assets and liabilities during the years. Deferred income tax assets are recognized for net operating loss carryforwards, research and development credits, and temporary differences. The Company believes that uncertainty exists regarding the realizability of certain deferred income tax assets and, accordingly, has established a valuation allowance for those deferred income tax assets to the extent the realizability is not deemed to be more likely than not. Deferred income tax assets and liabilities are measured using enacted tax rates. The Company utilizes a two steps approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained in a dispute with tax authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Transactions | Foreign Currency Transactions Foreign currency transactions are recorded at the rates of exchange in effect when the transaction occurs. Gains or losses, resulting from the application of different foreign exchange rates when cash in foreign currency is converted into the entities’ functional currency, or when foreign currency receivables and payables are settled, are credited or charged to income in the period of conversion or settlement. At the balance sheet date, assets and liabilities denominated in foreign currencies are remeasured based on prevailing exchange rates and any resulting gains or losses are credited or charged to income. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation of Foreign Currency Financial Statements | Translation of Foreign Currency Financial Statements The reporting currency of the Company is the U.S. dollars. The functional currency of some of the Company’s subsidiaries is the local currency of the respective entity. Accordingly, the financial statements of the foreign subsidiaries were translated into U.S. dollars at the following exchange rates: assets and liabilities — current rate on the balance sheet date; shareholders’ equity — historical rates; income and expenses — average rate during the period. The resulting translation adjustment is recorded as a separate component of comprehensive income. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income and loss represents net income (loss) plus the results of certain changes in shareholders’ equity during a period from non-owner sources.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Contingencies | Legal Contingencies The Company is regularly involved in various claims and legal proceedings. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to the pending claims and litigation and revises these estimates as appropriate. Such revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share are computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share are computed by dividing net income attributable to ordinary shareholders by the weighted-average number of ordinary shares and potentially dilutive shares of ordinary shares outstanding during the period. Dilutive shares outstanding include unvested RSUs. Dilutive securities are excluded from the computation of the diluted income per share in periods when their effect is anti-dilutive. The effect of dilutive securities were 389 thousand shares (97 thousand ADSs), 475 thousand shares (119 thousand ADSs) and 489 thousand shares (123 thousand ADSs) for the years ended December 31, 2018, 2019 and 2020, respectively. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718 Compensation — Stock Compensation. The value of our restricted stock units is based on the fair value of our shares on the date of grant and expensed over the vesting period. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock | Treasury Stock Treasury stock is stated at cost and shown as a reduction to shareholders’ equity. The Company retires ordinary shares repurchased. Accordingly, upon retirement the excess of the purchase price over par value is allocated between additional
paid-in capital and retained earnings based on the average issuance price of the shares repurchased. A repurchase of ADSs is recorded as treasury stock until the Company completes the withdrawal of the underlying ordinary shares from the ADS program. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued an accounting update to amend the guidance on the impairment of financial instruments that are not measured at fair value through profit and loss, which has subsequently been amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, ASU 2020-02, and ASU 2020-03. These amendments introduced a current expected credit loss (CECL) model based on expected losses rather than incurred losses to estimate credit losses on financial instruments measured at amortized cost and requires a broader range of relevant information about past events, current conditions, and reasonable and supportable forward-looking forecasts information to estimate the lifetime expected credit loss. In addition, under the amendment, an entity recognizes an allowance for expected credit losses on financial instruments measured at amortized cost and available-for-sale In August 2018, the FASB issued an accounting update to amend fair value measurement disclosure requirements to eliminate, add and modify certain disclosures to improve the effectiveness of such disclosure. The amendments removed (1) the disclosure requirements for transfers between Levels 1 and 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels of the fair value hierarchy; and (3) the valuation processes for Level 3 fair value measurements. Additionally, the amendments modified the disclosure requirements for investments in certain entities that calculate net asset value and measurement uncertainty. Finally, the amendments added disclosure requirements for the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This amendment is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. The adoption of this amendment did not have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. In August 2018, the FASB issued an accounting update to modify the disclosure requirements by removing, modifying and clarifying disclosures related to defined benefit plans. This amendment modified the disclosure requirements for employers that sponsor defined benefit pension plans or other post-retirement benefit plans. Certain disclosure requirements have been removed while the disclosure requirements of (1) the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period, have been added. The amendment also clarified the disclosure requirements with respect to the projected benefit obligation and the accumulated benefit obligation. The amendment is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The amendments should be applied on a retrospective basis to all periods presented. The adoption of this amendment did not have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. In December 2019, the FASB issued an accounting update which eliminated certain exceptions to the general principles in ASC 740, such as recognizing deferred taxes for equity investments, the incremental approach to performing intra-period tax allocation, and calculating income taxes in interim periods. The standard also simplified income tax accounting for franchise taxes that are partially based on income, transactions with a government that result in a
step-up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim period. This amendment is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures. |
Summary of Significant Accounting Policies (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | The following table presents the components of accumulated other comprehensive income (loss) as of December 31, 2018, 2019 and 2020:
|
Cash, Cash Equivalents, and Restricted Cash (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of Cash, Cash Equivalents, and Restricted Cash |
|
Short-Term Investments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Short Term Investments |
|
Notes and Accounts Receivable (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Notes and Accounts Receivable |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Allowances | The changes in allowance are summarized as follows:
|
Inventories (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventory | The components of inventories are as follows:
|
Long-Term Investments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Investments | As of December 31, 2019 and 2020, the Company held equity investments in several privately-held companies with the carrying value as follows:
|
Noncurrent Assets Held for Sale (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Noncurrent Assets Held for Sale |
|
Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment |
|
Goodwill and Acquired Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Value of Intangible Assets Related to Acquisition |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill |
|
Refund Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Change in Refund Liabilities |
Estimated sales returns and other allowances are made and adjusted based on historical experience and the consideration of varying contractual terms. The changes in the refund liabilities are summarized as follows:
|
Accrued Expenses and Other Current Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities |
|
Pension Plan (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Benefits Obligation and Plan Assets and Reconciliation of Funded Status | The changes in benefits obligation and plan assets and the reconciliation of funded status are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income | Amounts recognized in accumulated other comprehensive income consist of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Loss | Other changes in plan assets and benefit obligation recognized in other comprehensive loss:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Benefit Payments | Expected benefit payments:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial Assumptions to Determine Benefit Obligations | The actuarial assumptions to determine the benefit obligations were as follows:
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income Tax Expense | The components of income tax expense are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes for Domestic and Foreign Entities | The income (loss) before income taxes for domestic and foreign entities is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Income Tax Expense on Pretax Income at Statutory Rate and Income Tax Expense | The Company and its subsidiaries file separate income tax returns. A reconciliation of income tax expense on pretax income at statutory rate and income tax expense is shown below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Income Tax Assets (Liabilities) | Deferred income tax assets (liabilities) are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Major Jurisdictions and Tax Year Subject to Examination by Tax Authorities | The Company files income tax returns in the U.S. and foreign jurisdictions. The following table summarizes the Company’s major jurisdictions and tax year that remain subject to examination by tax authorities as of December 31, 2020:
|
Shareholders' Equity (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Dividends Declared Per Ordinary Share | The Company declared cash dividends per ordinary share during the periods presented as follows:
|
Equity Incentive Plan (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option and Restricted Stock Units Activity | The following is a summary of, the 2015 Plan, which includes restricted stock units:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Units and Changes | Restricted Stock Units A summary of the status of restricted stock units and changes is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation Expense | The following table shows total stock-based compensation expense included in the Consolidated Statements of Income for the years ended December 31, 2018, 2019 and 2020.
|
Lease (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of minimum lease payments under the operating lease | Future minimum lease payments under the operating leases as of December 31, 2020, were as follows:
|
Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Product Category | The Company groups its products into three categories, based on the markets in which they may be used. The following summarizes the Company’s revenue by product category:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Geographic Area | Revenue is attributed to a geographic area based on the bill-to location. The following summarizes the Company’s revenue by geographic area:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major customers representing at least 10% of net sales | Major customers representing at least 10% of net sales
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Lived Assets (Property and Equipment, Net) by Geographic Area | Long-lived assets (property and equipment, net) by geographic area were as follows:
|
Fair Value Measurement (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | The following table presents our assets measured at fair value on a recurring basis as of December 31, 2019: December 31, 2019
|
Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
May 31, 2019
USD ($)
|
Dec. 31, 2020
USD ($)
Customer
shares
|
Dec. 31, 2019
USD ($)
Customer
shares
|
Dec. 31, 2018
USD ($)
Customer
shares
|
|
Significant Accounting Policies [Line Items] | ||||
Subsidiary ownership percentage | 100.00% | |||
Number of customers accounted for 10% or more sales | Customer | 1 | 2 | 2 | |
Depreciation and amortization of property & equipment | $ 13,562 | $ 12,447 | $ 11,832 | |
Evaluation of tax benefits realized upon settlement | 50.00% | |||
Gain loss on disposal of subsidary | $ (293) | 12,409 | ||
Dialogue Semiconductor PLC [Member] | FCI | ||||
Significant Accounting Policies [Line Items] | ||||
Disposal group discontinued operation consideration receivable | $ 54,000 | |||
Gain loss on disposal of subsidary | 12,409 | |||
Disposal group discontinued operations net asset value | $ 39,367 | |||
Restricted assets net | $ 5,400 | 5,400 | ||
Escrow Deposit | $ 5,400 | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Short term investment maturity period | 3 months | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Short term investment maturity period | 1 year | |||
Held-to-maturity investment maturity period | 1 year | |||
Net sales | Customers accounted for 10% or more | Top Ten Customers [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Major customers percentage of net sales | 71.00% | 74.00% | 69.00% | |
Net sales | Customers accounted for 10% or more | Two Customers [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Major customers percentage of net sales | 24.00% | 31.00% | 34.00% | |
Employee Stock Option And Restricted Stock Units [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
The effect of dilutive securities of employee stock options and restricted stock units | shares | 489 | 475 | 389 | |
Employee Stock Option And Restricted Stock Units [Member] | American Depositary Shares | ||||
Significant Accounting Policies [Line Items] | ||||
The effect of dilutive securities of employee stock options and restricted stock units | shares | 123 | 119 | 97 | |
Development technology | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible asset amortized over estimated useful lives | 3 years 6 months | |||
Development technology | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible asset amortized over estimated useful lives | 5 years 6 months | |||
Software | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 1 year | |||
Software | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 5 years | |||
Buildings | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 25 years | |||
Buildings | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 50 years | |||
Machinery and Equipment | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 3 years | |||
Machinery and Equipment | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 6 years | |||
Furniture and Fixtures | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 3 years | |||
Furniture and Fixtures | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 8 years | |||
Leasehold And Building Improvement | Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 2 years | |||
Leasehold And Building Improvement | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Property plant and equipment estimated useful life | 6 years |
Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Assets and Liabilities Eliminated upon Consolidation [Abstract] | |||
Beginning balance, Foreign currency items | $ (92) | $ 1,173 | $ 3,321 |
Current-period change, Foreign currency items | 497 | (1,265) | (2,148) |
Ending balance, Foreign currency items | 405 | (92) | 1,173 |
Beginning balance, Defined benefit pension plans | (693) | (678) | (678) |
Current-period change, Defined benefit pension plans | (61) | (15) | |
Ending balance, Defined benefit pension plans | (754) | (693) | (678) |
Beginning balance, Accumulated other comprehensive income (loss) | (785) | 495 | 2,643 |
Current-period change, Accumulated other comprehensive income (loss) | 436 | (1,280) | (2,148) |
Ending balance, Accumulated other comprehensive income (loss) | $ (349) | $ (785) | $ 495 |
Details of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 54,947 | $ 61,184 | ||
Time deposits | 265,936 | 229,419 | ||
Repurchase agreements | 22,078 | 32,563 | ||
Total cash and cash equivalents | 342,961 | 323,166 | ||
Restricted cash | 26,250 | 25,087 | ||
Total cash ,cash equivalents, and restricted cash | $ 369,211 | $ 348,253 | $ 307,127 | $ 381,523 |
Short Term Investments (Detail) $ in Thousands |
Dec. 31, 2019
USD ($)
|
---|---|
Investments, Debt and Equity Securities [Abstract] | |
Trading securities | $ 2,010 |
Short Term Investments - Additional Information (Detail) - Trading Securities - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Gain (Loss) on Securities [Line Items] | |||
Realized gains on sales of short-term investments, trading securities | $ 169,000 | $ 48,000 | $ 134,000 |
Unrealized holding loss on short-term investment | $ 0 | $ 0 | $ 0 |
Summary of Notes and Accounts Receivable (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Receivables [Abstract] | ||||
Trade accounts receivable | $ 117,387 | $ 110,351 | ||
Allowance for doubtful accounts | (1,561) | (1,617) | $ (645) | $ (598) |
Notes and accounts receivable, net | $ 115,826 | $ 108,734 |
Change In Allowances (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Allowances for doubtful accounts | |||
Balance, beginning of year | $ 1,617 | $ 645 | $ 598 |
Additions (reversals) charged to expense, net | 15 | 1,164 | 47 |
Write-offs | (71) | (192) | 0 |
Balance, end of year | $ 1,561 | $ 1,617 | $ 645 |
Components of Inventories (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 11,039 | $ 26,305 |
Work in process | 55,988 | 37,342 |
Raw materials | 43,135 | 24,792 |
Inventory, Net | $ 110,162 | $ 88,439 |
Inventories - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Inventory Disclosure [Abstract] | |||
Inventory written down | $ 6,883 | $ 9,085 | $ 2,095 |
Long-Term Investments - Equity Investments with Carrying Value (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Schedule of Equity and Cost Investments [Line Items] | ||
Long-term investments | $ 5,000 | $ 3,000 |
Cashido Corp. (Cashido) | ||
Schedule of Equity and Cost Investments [Line Items] | ||
Equity Investments Percentage of Ownership | 0.60% | 0.60% |
Vastview Technology, Corp. (Vastview) | ||
Schedule of Equity and Cost Investments [Line Items] | ||
Equity Investments Percentage of Ownership | 2.90% | 2.90% |
Deep Vision, Inc (Deep Vision) | ||
Schedule of Equity and Cost Investments [Line Items] | ||
Long-term investments | $ 5,000 | $ 3,000 |
Equity Investments Percentage of Ownership | 16.20% | 16.20% |
Long-term Investment - Additional Information (Detail) - USD ($) $ in Thousands |
1 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Jun. 30, 2018 |
|
Simple Agreement For Future Equity [Member] | ||
Schedule of Equity and Cost Investments [Line Items] | ||
Invested in common stock | $ 2,000 | |
Deep Vision, Inc (Deep Vision) | ||
Schedule of Equity and Cost Investments [Line Items] | ||
Invested in common stock | $ 3,000 |
Summary of Noncurrent Assets Held for Sale (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 11,124 | $ 10,405 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 11,124 | $ 10,405 |
Property and Equipment (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Property, Plant and Equipment [Line Items] | |||
Land | $ 68,243 | $ 68,243 | |
Buildings | 18,130 | 18,130 | |
Machinery and equipment | 35,555 | 26,426 | |
Furniture and fixtures | 7,855 | 6,919 | |
Leasehold and buildings improvement | 8,023 | 7,964 | |
Software | 33,528 | 25,938 | |
Total | 171,334 | 153,620 | |
Accumulated Depreciation | 66,331 | 55,318 | |
Prepayment and construction in progress | 493 | 186 | |
Property, Plant and Equipment, Net | 105,496 | 98,488 | $ 101,410 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | 27,293 | 22,312 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | 4,033 | 3,632 | |
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | 22,922 | 18,828 | |
Furniture and Fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | 5,862 | 5,196 | |
Leasehold and buildings improvement | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation | $ 6,221 | $ 5,350 |
Property And Equipment - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2018 |
|
Property, Plant and Equipment [Line Items] | |||
Net carrying value of leased properties | $ 654 | $ 673 | |
Annual lease and rental income from operating lease | $ 45 | ||
Land | Taiwan | |||
Property, Plant and Equipment [Line Items] | |||
Total consideration | $ 58,931 |
Cumulative Value of Intangible Assets Related to Acquisition (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Finite-Lived Intangible Liabilities [Line Items] | ||
Accumulated Impairment | $ (255) | $ (3,444) |
FCI, Centronix, BTL, Shannon and Bigtera | ||
Finite-Lived Intangible Liabilities [Line Items] | ||
Cost | 13,117 | |
Accumulated Impairment | (3,699) | |
Accumulated Amortization | $ (9,418) |
Goodwill And Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Jul. 03, 2017 |
Jul. 01, 2015 |
|
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Accumulated Impairment | $ 255 | $ 3,444 | |||
Amortization of intangible assets | $ 0 | 766 | $ 2,964 | ||
Goodwill | 0 | 17,489 | |||
Goodwill impairment | $ 17,489 | $ 15,715 | |||
Shannon Systems | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill | $ 33,204 | ||||
Bigtera | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill | $ 625 |
Schedule of Goodwill (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Cost | $ 100,129 | $ 100,129 |
Disposal of FCI | (25,117) | (25,117) |
Accumulated Impairment | (74,974) | (57,485) |
Foreign Currency Adjustment | (38) | (38) |
Net Carrying Amount | $ 0 | $ 17,489 |
Short-Term Bank Loans - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Short-term Debt [Line Items] | ||||
Proceeds from bank loan | $ 50,000 | $ 25,000 | ||
Repayments of bank debt | 50,000 | $ 25,000 | $ 25,000 | |
Interest expense | $ 11 | $ 0 | $ 355 | |
Minimum | ||||
Short-term Debt [Line Items] | ||||
Interest rate | 0.78% | |||
Maximum | ||||
Short-term Debt [Line Items] | ||||
Interest rate | 2.95% |
Refund Liabilities - Summary of Refund Liabilities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Other Liabilities [Abstract] | ||
Refund liabilities | $ 2,105 | $ 2,260 |
Refund Liabilities - Summary of Change in Refund Liabilities (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Other Liabilities [Abstract] | ||
Balance, beginning of year | $ 2,260 | $ 2,093 |
Additions | 10,576 | 5,076 |
Actual sales return and discount | (10,731) | (4,909) |
Balance, end of year | $ 2,105 | $ 2,260 |
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Payables and Accruals [Abstract] | ||
Wages and bonus | $ 35,027 | $ 26,643 |
Dividends | 36,764 | 36,919 |
Research and development payable | 6,722 | 5,693 |
License fees and royalties | 9,034 | 9,371 |
Professional fees | 1,869 | 1,772 |
Equipment | 2,145 | 557 |
Lease liabilities – current portion | 3,058 | 3,046 |
Others | 10,599 | 12,075 |
Accrued expenses and other current liabilities | $ 105,218 | $ 96,076 |
Pension Plan - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligation | $ 1,008 | $ 939 | $ 3,864 |
Estimated amortization of net gain from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | 33 | ||
SMI Taiwan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions and Recognized Pension Costs under Labor Pension Act | $ 2,109 | $ 1,783 | $ 1,682 |
Contributions Based on Percentage Employee Salaries under Labor Standards Law | 2.00% | ||
The contribution under defined benefit plans | $ 61 | ||
SMI Taiwan | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of Contribution by an Employer to Employees Pension | 6.00% |
Changes in Benefits Obligation and Plan Assets and Reconciliation of Funded Status (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Change in benefit obligation | |||
Projected benefit obligation at beginning of year | $ 1,754 | $ 5,838 | $ 5,131 |
Service cost | 5 | 275 | 568 |
Interest cost | 5 | 91 | 126 |
Actuarial loss (gain) | (8) | 72 | 146 |
Benefits paid | (40) | (450) | (133) |
Disposal of subsidiary | (4,072) | ||
Projected benefit obligation at end of year | 1,716 | 1,754 | 5,838 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 1,487 | 5,410 | 5,114 |
Actual return on plan assets | 49 | 98 | 63 |
Employer contributions | 49 | 85 | 331 |
Benefits paid | (34) | (448) | (98) |
Disposal of subsidiary | (3,658) | ||
Fair value of plan assets at end of year | 1,551 | 1,487 | 5,410 |
Funded status recognized as an other liabilities | $ (165) | $ (267) | $ (428) |
Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Retirement Benefits [Abstract] | ||||
Net loss | $ 754 | $ 693 | $ 678 | |
Total recognized in accumulated other comprehensive income | $ 754 | $ 693 | $ 678 | $ 678 |
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Net Periodic Benefit Cost: | |||
Service cost | $ 5 | $ 275 | $ 568 |
Interest cost | 5 | 91 | 126 |
Projected return on plan assets | (29) | (77) | (78) |
Amortization of unrecognized net transition obligation and unrecognized net actuarial gain | 37 | 48 | 41 |
Net periodic benefit cost | $ 18 | $ 337 | $ 657 |
Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Loss (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss): | ||
Recognize the decrease in net gain (loss) | $ 61 | $ 15 |
Total recognized in other comprehensive loss (income) | $ 61 | $ 15 |
Expected Benefit Payments (Detail) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Retirement Benefits [Abstract] | |
2021 | $ 7 |
2022 | 21 |
2023 | 16 |
2024 | 82 |
2025 | 50 |
2026 and thereafter | $ 308 |
Actuarial Assumptions to Determine Benefit Obligations (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
SMI Taiwan | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 0.50% | 1.00% | 1.38% |
Rate of compensation increase | 4.00% | 4.00% | 4.25% |
Weighted-average assumptions used to determine net projected benefit cost: | |||
Discount rate | 0.50% | 1.00% | 1.38% |
Expected long-term return on plan assets | 2.00% | 2.00% | 1.75% |
Rate of compensation increase | 4.00% | 4.00% | 4.25% |
Korea | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 3.60% | ||
Rate of compensation increase | 3.00% | ||
Weighted-average assumptions used to determine net projected benefit cost: | |||
Discount rate | 3.60% | ||
Expected long-term return on plan assets | 1.40% | ||
Rate of compensation increase | 3.00% |
Components of Income Tax Expense (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Income Tax Disclosure [Abstract] | |||
Current | $ 6,479 | $ 6,558 | $ 13,455 |
Deferred | (667) | 1,118 | (1,664) |
Income tax expense | $ 5,812 | $ 7,676 | $ 11,791 |
Income (loss) Before Income Taxes for Domestic and Foreign Entities (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes, domestic | $ (17,067) | $ (3,911) | $ (23,750) |
Income (loss) before income taxes, foreign | 102,625 | 75,985 | 133,611 |
INCOME BEFORE INCOME TAX | $ 85,558 | $ 72,074 | $ 109,861 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Tax Credit Carryforward [Line Items] | |||||
Change in valuation allowance | $ 2,708 | $ (1,933) | |||
Accumulated undistributed earnings from a foreign subsidiary | $ 370,000 | 370,000 | |||
Deferred tax liability on undistributed foreign earnings | 0 | 0 | |||
Unrecognized tax benefit | 19,001 | 19,001 | 20,655 | $ 18,707 | $ 15,056 |
Total amount of interest expense and penalties | 430 | 319 | $ 776 | ||
Total amount of accrued interest and penalties | 5,179 | $ 5,179 | $ 4,511 | ||
Cayman Islands Tax Information Authority [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Corporate income tax rate | 0.00% | 0.00% | 0.00% | ||
Foreign Tax Authority | Internal Revenue Service (IRS) [Member] | Tax Year 2017 [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Net operating loss carryforwards for income tax purposes | 36,823 | $ 36,823 | |||
Foreign Tax Authority | Internal Revenue Service (IRS) [Member] | Tax Year 2018 [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Net operating loss carryforwards for income tax purposes | $ 12,244 | $ 12,244 | |||
Operating loss carryforward expiration year description | carryforward indefinitely | ||||
Foreign Tax Authority | Maximum | Internal Revenue Service (IRS) [Member] | Tax Year 2017 [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Federal net operating loss carryforwards expiration year | 2037 | ||||
Foreign Tax Authority | Research And Development | Internal Revenue Service (IRS) [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Deferred tax assets tax credit carryforwards | $ 2,659 | $ 2,659 | |||
Tax credit carryforward expiration year for federal | 2040 | ||||
State and Local Jurisdiction [Member] | Minimum | Internal Revenue Service (IRS) [Member] | Tax Year 2017 [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Federal net operating loss carryforwards expiration year | 2021 | ||||
State and Local Jurisdiction [Member] | Research And Development | |||||
Tax Credit Carryforward [Line Items] | |||||
Deferred tax assets tax credit carryforwards | $ 1,853 | $ 1,853 | |||
Tax credit carryforward expiration year for state | no expiration date in California |
Reconciliation of Income Tax Expense on Pretax Income at Statutory Rate and Income Tax Expense (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Reconciliation Of Income Taxes [Line Items] | |||
Differences between Cayman and foreign statutory tax rates | $ 5,286 | $ 846 | $ 12,509 |
Permanent differences | 1,441 | 4,109 | (703) |
Temporary differences | (129) | 638 | (159) |
Alternative minimum tax | 1 | 1 | 9 |
Income tax on undistributed earnings | 1,196 | 575 | 408 |
Net changes in income tax credit | 20 | 3,917 | 116 |
Net changes in valuation allowance of deferred income tax assets | 2,439 | (1,820) | 1,243 |
Net operating loss carryforwards | (1,180) | (294) | (1,431) |
Liabilities related to unrealized tax benefits | (3,066) | (171) | (302) |
Adjustment of prior years' taxes and others | (196) | (125) | 101 |
Income tax expense | 5,812 | 7,676 | 11,791 |
Cayman Islands Tax Information Authority [Member] | |||
Reconciliation Of Income Taxes [Line Items] | |||
Tax expense at statutory rate |
Deferred Income Tax Assets (liabilities) (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Notes and accounts receivable | $ 0 | $ 3 |
Stock-based compensation | 1,339 | 1,104 |
Allowance for sales return | 324 | 541 |
Inventory reserve | 1,925 | 1,733 |
Foreign currency translation | 47 | (20) |
Property and equipment | (483) | (359) |
Investment tax credits | 4,512 | 4,532 |
Net operating loss carryforwards | 16,754 | 14,028 |
Others | 1,013 | 494 |
Valuation allowance | (20,816) | (18,108) |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | $ 4,615 | $ 3,948 |
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Income Tax Disclosure [Abstract] | |||
Balance, beginning of year | $ 20,655 | $ 18,707 | $ 15,056 |
Increases in tax positions taken in current year | 5,029 | 6,890 | 5,937 |
Decrease in tax position taken in prior year primarily related to the resolution of tax audit | (6,683) | (4,942) | (2,286) |
Balance, end of year | $ 19,001 | $ 20,655 | $ 18,707 |
Summary of Major Jurisdictions and Tax Year Subject to Examination Tax Authorities (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
China | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2017 and onward |
HONG KONG | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2017 and onward |
Taiwan | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2015 and onward |
United States | |
Income Tax Examination [Line Items] | |
Years Subject to Income Tax Examination | 2015 onward |
Cash Dividends Declared Per Ordinary Share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Dividends [Abstract] | |||||||||||||||
Dividend Per Share | $ 0.0875 | $ 0.0875 | $ 0.0875 | $ 0.0875 | $ 0.0875 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.35 | $ 0.35 | $ 0.30 |
Amount | $ 12,089 | $ 12,303 | $ 12,301 | $ 12,301 | $ 12,171 | $ 10,029 | $ 10,957 | $ 10,956 | $ 10,849 | $ 10,843 | $ 10,835 | $ 10,832 | $ 48,994 | $ 44,113 | $ 43,359 |
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 26, 2020 |
Oct. 25, 2019 |
Oct. 29, 2018 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Nov. 21, 2018 |
|
Retained Earnings Adjustments [Line Items] | |||||||||||||||||||
Dividend declared | $ 0.0875 | $ 0.0875 | $ 0.0875 | $ 0.0875 | $ 0.0875 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.35 | $ 0.35 | $ 0.30 | ||||
Annual Dividend [Member] | |||||||||||||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||||||||
Dividend declared | $ 1.40 | $ 1.40 | $ 1.20 | ||||||||||||||||
Quarterly Dividend [Member] | |||||||||||||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||||||||
Dividend declared | $ 0.35 | $ 0.35 | $ 0.30 | ||||||||||||||||
American Depositary Shares | |||||||||||||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||||||||
ADSs repurchased during period, shares | 626 | 762 | 1,006 | ||||||||||||||||
ADSs repurchased during period, cost | $ 25,044 | $ 25,103 | $ 34,755 | ||||||||||||||||
Average purchase price per ADS | $ 39.93 | $ 32.82 | $ 34.54 | ||||||||||||||||
American Depositary Shares | Maximum | |||||||||||||||||||
Retained Earnings Adjustments [Line Items] | |||||||||||||||||||
Repurchase of shares | $ 200,000 |
Equity Incentive Plan - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Jun. 03, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Tax effect for stock-based compensation benefit (expense) for option and restricted stock units exercised | $ 11 | $ (49) | $ 177 | |
Employee Stock Options And Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Tax effect for stock-based compensation benefit (expense) for option and restricted stock units exercised | $ 2,188 | $ 3,446 | $ 2,211 | |
2005 Equity Incentive Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion ratio of restricted stock unit to ordinary shares | one-for-one | |||
2015 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ordinary shares authorized | 20,000,000 | |||
The 2005 Plan and The 2015 Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost related to non-vested share-based compensation | $ 3,116 |
Summary of Stock Option and Restricted Stock Units Activity (Detail) - The 2005 Plan and The 2015 Plan - Employee Stock Options And Restricted Stock Units [Member] - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Available for grant at beginning date | 14,260 | 15,787 | 17,387 |
Restricted stock units granted | (1,692) | (1,584) | (1,622) |
Restricted stock units forfeited | 57 | 57 | 22 |
Available for grant at ending balance | 12,625 | 14,260 | 15,787 |
Summary of Status of Restricted Stock Units and Changes (Detail) - Restricted Stock Units - $ / shares shares in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Number of Nonvested Stock Units | ||||
Nonvested at beginning period | 1,643 | 1,621 | 1,538 | |
Restricted stock units granted | 1,692 | 1,584 | 1,622 | |
Restricted stock units vested | (1,564) | (1,505) | (1,517) | |
Restricted stock units forfeited | (57) | (57) | (22) | |
Nonvested at ending period | 1,714 | 1,643 | 1,621 | 1,538 |
Weighted Average Grant Date Fair Value | ||||
Nonvested at beginning period | $ 8.08 | $ 13.85 | $ 10.36 | |
Restricted stock units granted | 9.40 | 8.01 | 13.86 | |
Restricted stock units vested | 8.02 | 14.12 | 9.79 | |
Restricted stock units forfeited | 9.31 | 9.59 | 11.75 | |
Nonvested at ending period | $ 9.37 | $ 8.08 | $ 13.85 | $ 10.36 |
Weighted Average Remaining Recognition Period (Years) | ||||
Nonvested at ending period | 3 months 21 days | 3 months 14 days | 4 months 17 days | 3 months 29 days |
Table of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 14,589 | $ 14,591 | $ 20,779 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 253 | 305 | 390 |
Research and Development Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 10,132 | 9,927 | 13,278 |
Selling and Marketing Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 1,759 | 1,789 | 3,407 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 2,445 | $ 2,570 | $ 3,704 |
Lease - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Operating Leased Assets [Line Items] | |||
Lease Expense | $ 4,261 | $ 4,775 | $ 3,933 |
Operating Lease Payments | 3,226 | 3,233 | |
Operating lease right of use assets | 6,704 | 8,603 | |
Operating lease liabilities accrued current | 3,058 | ||
Operating lease liabilitites long term | 3,881 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease right of use assets | $ 6,704 | $ 8,603 | |
Operating lease weighted average remaining lease term | 2 years 10 months 13 days | 3 years 6 months | |
Operating lease weighted average discount rate | 3.56% | 3.78% | |
Accounting Standards Update 2016-02 [Member] | Other Current Liabilities [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease liabilities accrued current | $ 3,058 | $ 3,046 | |
Accounting Standards Update 2016-02 [Member] | Other Noncurrent Liabilities [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease liabilitites long term | $ 3,881 | $ 5,621 |
Lease - Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
2021 | $ 3,253 |
2022 | 1,875 |
2023 | 1,372 |
2024 | 783 |
2025 | 24 |
2026 and Thereafter | 32 |
Total | 7,339 |
Less imputed interest | 400 |
Present value of net future minimum lease payments | 6,939 |
Less operating lease liabilities-current | 3,058 |
Long-term operating lease liabilities | $ 3,881 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Present value of net future minimum lease payments |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Less operating lease liabilities-current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term operating lease liabilities |
Segment Information - Additional Information (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2020
Segment
| |
Segment Reporting [Abstract] | |
Reportable segment | 1 |
Revenue by Product Category (Detail) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
||||
Segment Reporting Information [Line Items] | ||||||
NET SALES | $ 539,521 | $ 457,253 | $ 530,348 | [1] | ||
Mobile Storage | ||||||
Segment Reporting Information [Line Items] | ||||||
NET SALES | 532,682 | 441,700 | 494,012 | |||
Mobile Communications | ||||||
Segment Reporting Information [Line Items] | ||||||
NET SALES | 0 | 10,356 | 30,163 | |||
Others | ||||||
Segment Reporting Information [Line Items] | ||||||
NET SALES | $ 6,839 | $ 5,197 | $ 6,173 | |||
|
Revenue by Geographic Area (Detail) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
[1] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
NET SALES | $ 539,521 | $ 457,253 | $ 530,348 | |||
Taiwan | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
NET SALES | 95,023 | 77,117 | 70,984 | |||
United States | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
NET SALES | 42,099 | 63,432 | 53,476 | |||
Korea | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
NET SALES | 24,261 | 52,885 | 135,845 | |||
China | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
NET SALES | 154,789 | 123,261 | 142,948 | |||
Malaysia | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
NET SALES | 46,319 | 50,663 | 49,444 | |||
Singapore | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
NET SALES | 97,813 | 45,032 | 35,387 | |||
Others | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
NET SALES | $ 79,217 | $ 44,863 | $ 42,264 | |||
|
Major customers representing at least 10% of net sales (Detail) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
||||
Revenue, Major Customer [Line Items] | ||||||
NET SALES | $ 539,521 | $ 457,253 | $ 530,348 | [1] | ||
Net sales | Customers accounted for 10% or more | Intel | ||||||
Revenue, Major Customer [Line Items] | ||||||
NET SALES | $ 75,608 | $ 67,791 | ||||
Major customers, percentage of net sales | 16.00% | 13.00% | ||||
Net sales | Customers accounted for 10% or more | Micron | ||||||
Revenue, Major Customer [Line Items] | ||||||
NET SALES | $ 127,708 | $ 67,682 | ||||
Major customers, percentage of net sales | 24.00% | 15.00% | ||||
Net sales | Customers accounted for 10% or more | SK Hynix | ||||||
Revenue, Major Customer [Line Items] | ||||||
NET SALES | $ 111,265 | |||||
Major customers, percentage of net sales | 21.00% | |||||
|
Long-lived Assets (Property And Equipment, net) by Geographic Area (Detail) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 105,496 | $ 98,488 | $ 101,410 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 102,420 | 94,996 | 96,920 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 254 | 315 | 348 |
Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 11 | 23 | 1,645 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 2,770 | 3,117 | 2,447 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 41 | $ 37 | $ 50 |
Assets Measured at Fair Value on Recurring Basis (Detail) $ in Thousands |
Dec. 31, 2019
USD ($)
|
---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments - trading securities | $ 2,010 |
Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments - trading securities | $ 2,010 |
Subsequent Events - Additional Information (Detail) $ in Thousands, $ in Thousands |
May 31, 2021
TWD ($)
|
May 31, 2021
USD ($)
|
Feb. 18, 2021
TWD ($)
|
Feb. 18, 2021
USD ($)
|
---|---|---|---|---|
Subsequent Event [Line Items] | ||||
Property development construction required to complete with in period | 3 years | 3 years | ||
Subsequent Event | Property Development Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Property development administrative Fee | $ 30,000 | $ 1,051 | ||
Subsequent Event | Performance Bond Secured By A Certificate Of Deposit [Member] | Property Development Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Property development surety amount | $ 150,000 | $ 5,257 | ||
Subsequent Event | Taipei [Member] | Office Building [Member] | ||||
Subsequent Event [Line Items] | ||||
Amount paid for bid bond | $ 30,000 | $ 1,051 |
$D14<^D97/+,G4KEN245+^G #K3+EUZ3G=&KS(N,.U!&!"@/O6O
M\(5=^:'E"Z^4;VO]6P'X/MWJZO6E^7$E3-2%B6R8Z/^H?)T\[,%\NKXE=H3E
MUZ>[Y^F7Y<-F36#ZL(#5 H35T"IK8O; 1$Z;!<\0\'O'6VM$Q66J 8FTN,PUX%/+
ME;U@AZ9'%%!PG1'0'IG2-AMS!T7">O8+7X69+ 7_090=8@Y,:R1B7+RD[4^(
MY->'=VFPBA('2HM5L(X68"IRUN[8OTPJA;J5(K< +,M41^#$D]X"BIESS%2H
MJ#](D;RJ.=OQFAN.ARN2(%JL#E?08IF.5P1' +44Y7N*>O,*Q#)8#:X[B#2=
MCQ ^#KWK>&"/Y&J)% [[!OYTV<'V3$,R6P[!='&W[.B^AHGHD:Q!XLI:JH@9#M?%UK8 6#E1Q
M/PJ"B5]1)KPL=7L+E:6R,9P)6"BBFZJBZN46N-S-O-![W7ADF]+8#3]+:[J!
M)9BO]4)AY/LZAJ*=YO&\
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M;CPQW8LA>IHNUG?'!$/+IQ1*411/_*Q#^7K&1
=/
MG_%275C_"YNM;+\;0%I;I\N=,C$HI=H^Q<,N#@<*)]%W%)*=0N)Y;PUYEC/A
MQ'AH] 8,2Q,:+[RK7IO(2<67LG"&WDK2<^,+K;.-+ H0*H-)^K66!C.8*R?4
M6BX+A(FUZ.RPX\@8JW32'?!T"YQ\!SA.X*-6+K=PKC+,G@-TB&5#-=E3G29O
M(LXP;4,W#B&)DN@-O&[C>M?C=7_$]1<>PTS:M-"V-@A_39;6&4J@O]\PVVO,
M]KS9WO\?\3>!N7Q/;252' 54GQ;-/0;C.&K#Q:=/L\_SRTN87,U@.Z6N/?W&1V2,'16W#X%.=0$-
M'IV3H&S=Y,%.G0$;/]:1JH,!(%\V^JZ#-CKC.RX+/BF$]Z7>6>[(1ZXJU.[;
M QT2F@;1,.UL2?WU;NS18, 8V=_&!R:F0B*5L6V6H2V)R,*[M.=WQ,QG4(^>V%O
MHVFY&70 .,KKFID():;2D3UQCT2Q3Y8"VM/-]<\T33>)'2!A+Q[M/Z0Z_I"+
M/I#0$.Y#$Q$D(3Q?Q@OAS_QB5=?2C\)LT'FF+4UA74\YR2N#R?\"%++D%E&S
M@+6 >^^B((X'S]QC 1T.6XP[>8)&