2.2.0.25falsefalse006020 - Disclosure - Summary of Significant Accounting Policiestruefalsefalse1falsefalseUSDfalsefalse3/1/2010 - 2/28/2011 USD ($) USD ($) / shares $c20100301to20110228http://www.sec.gov/CIK0000093384duration2010-03-01T00:00:002011-02-28T00:00:00U001Standardhttp://www.xbrl.org/2003/iso4217USDiso42170U002Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0smsc_SummaryOfSignificantAccountingPoliciesAbstractsmscfalsenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalseSummary of Significant Accounting Policies [Abstract]3false0us-gaap_SignificantAccountingPoliciesTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="font-style: normal; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></font></div><div align="left" style="text-indent: 18pt; display: block; margin-left: 0pt; margin-right: 0pt;">&#160;</div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Principles of Consolidation</font></font></div><div align="left" style="text-indent: 18pt; display: block; margin-left: 0pt; margin-right: 0pt;">&#160;</div><div align="left" style="text-indent: 18pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="font-style: normal; display: inline; font-family: times new roman; font-size: 10pt;">The Company's fiscal year ends on the last calendar day of February. 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The Company bases estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. 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The difference in these amounts is attributable to the method of adopting ASC 718 ("ASC 718") on March 1, 2006. Under the provisions of ASC 718, the Company elected to recognize stock-based compensation cost using the modified prospective transition method.&#160;&#160;Under this method, the Company recognized stock-based compensation cost, including deferred taxes, for all employee stock-based instruments issued or vested after February 28, 2006.&#160;&#160;No compensation cost or deferred taxes were recorded for employee stock-based instruments that vested on or before February 28, 2006. As a result, all tax benefits from employee stock-based instruments that vested on or before February 28, 2006 are recorded as an increase to additional paid-in capital. Excess tax benefits related to employee stock-based instruments issued or vested after February 28, 2006 result in an increase or decrease to additional paid-in capital or an increase to income tax expense based upon the difference between the amount of stock-based compensation cost reported on the tax return as compared to the consolidated financial statements and the cumulative balance of tax benefits recorded in additional paid-in capital.</font></font></div><div align="center" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">&#160;</div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="font-style: italic; display: inline; font-family: times new roman; font-size: 10pt; font-weight: bold;">Recent Accounting Standards</font></font></div><div align="left" style="text-indent: 18pt; display: block; margin-left: 0pt; margin-right: 0pt;">&#160;</div><div align="left" style="text-indent: 18pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="left" style="text-indent: 18pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="font-style: normal; display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In October 2009 the Financial Accounting Standards Board (&#8220;FASB&#8221;)&#160;&#160;the FASB issued Accounting Standards Update (&#8220;ASU&#8221;) 2009-13, &#8220; <font style="font-style: italic; display: inline;">Revenue Recognition (Topic 605) - Multiple-Deliverable Revenue Arrangements&#8221;</font> (&#8220;ASU 2009-13&#8221;) and ASU 2009-14, &#8220; <font style="font-style: italic; display: inline;">Software (Topic 985) - Certain Revenue Arrangements That Include Software Elements&#8221;</font> (&#8220;ASU 2009-14&#8221;). ASU 2009-13 modifies the requirements that must be met for an entity to recognize revenue from the sale of a delivered item that is part of a multiple-element arrangement when other items have not yet been delivered. ASU 2009-13 eliminates the requirement that all undelivered elements must have either: (i) vendor-specific objective evidence, or &#8220;VSOE&#8221;, or (ii) third-party evidence, or &#8220;TPE&#8221;, before an entity can recognize the portion of an overall arrangement consideration that is attributable to items that already have been delivered. In the absence of VSOE or TPE of the standalone selling price for one or more delivered or undelivered elements in a multiple-element arrangement, entities will be required to estimate the selling prices of those elements. Overall arrangement consideration will be allocated to each element (both delivered and undelivered items) based on their relative selling prices, regardless of whether those selling prices are evidenced by VSOE or TPE or are based on the entity's estimated selling price. The residual method of allocating arrangement consideration has been eliminated. ASU 2009-14 modifies the software revenue recognition guidance to exclude from its scope tangible products that contain both software and non-software components that function together to deliver a product's essential functionality. For SMSC, these new updates are required to be effective for revenue arrangements entered into or materially modified in the first quarter of fiscal year 2012, with early adoption available. The Company adopted these ASUs retroactively beginning in the first quarter of fiscal 2011. The adoption of these ASUs did not have a material effect on our consolidated financial statements.</font></font></font></div></div><div align="left" style="text-indent: 18pt; display: block; margin-left: 0pt; margin-right: 0pt;">&#160;</div><div align="left" style="text-indent: 18pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div align="left" style="text-indent: 18pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 10pt;"><font style="font-style: normal; display: inline; font-family: times new roman; font-size: 10pt;"><font style="display: inline; font-family: Times New Roman; font-size: 10pt;">In January 2010, the FASB issued new standards in the FASB Accounting Standards Codification 820, &#8220;<font style="font-style: italic; display: inline;">Fair Value Measurements and Disclosures&#8221; (&#8220;ASC 820&#8221;), </font>which require new disclosures on the amount and reason for transfers in and out of Level 1 and 2 fair value measurements. The standards also require disclosure of activities, including purchases, sales, issuances, and settlements within the Level 3 fair value measurements. The standards also clarify existing disclosure requirements on levels of disaggregation and disclosures about inputs and valuation techniques. The new disclosures regarding Level 1 and 2 fair value measurements and clarification of existing disclosures were adopted by SMSC beginning in the first quarter of fiscal 2011. The adoption of ASC 820 did not have a material effect on our consolidated financial statements.</font></font></font></div></div></div>2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES&#160;Principles of Consolidation&#160;The Company's fiscal year ends on the last calendar day of February. 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