XML 101 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Segments and Major Customers | 6 Months Ended
--- | ---
Jun. 30, 2013
Segment Reporting [Abstract] |
Segments and Major Customers | Segments and Major Customers For the three and six months ended June 30, 2013 and 2012, only MID and CTO were reportable segments as each of them met the quantitative thresholds for disclosure as a reportable segment. The results of the remaining other operating segments were combined and shown under “All Other”. The Company evaluates the performance of its segments based on segment operating income (loss), which is defined as customer licensing income ("CLI") minus segment operating expenses. Segment operating expenses are comprised of direct operating expenses and the allocation of certain engineering expenses. CLI is defined as total cash royalties received from its customers under its licensing agreements with them. In addition, customer licensing income includes other patent royalties received but not recognizable as revenue and proceeds from sale of intellectual property. Since the third quarter of 2011, the Company has received patent royalty payments from certain patent license agreements assumed in the acquisition of CRI which were treated as favorable contracts. Cash received from these acquired favorable contracts reduced the favorable contract intangible asset on the Company's balance sheet. The Company has combined these cash royalty payments as CLI to reflect the total amounts received from its customers. Segment operating expenses do not include marketing, general and administrative expenses and the allocation of certain expenses managed at the corporate level, such as stock-based compensation, amortization, and certain bonus and acquisition costs. The “Reconciling Items” category includes these unallocated marketing, general and administrative expenses as well as corporate level expenses. The presentation of the three and six months ended June 30, 2012 segment data has been updated to conform with the 2013 segment operating income (loss) definition applied starting in the fourth quarter of 2012. The tables below present reported segment operating income (loss) for the three and six months ended June 30, 2013 and 2012, respectively.
| For the Three Months Ended June 30, 2013 |  | For the Six Months Ended June 30, 2013
| MID |  | CTO |  | All Other |  | Total |  | MID |  | CTO |  | All Other |  | Total
| (In thousands) |  | (In thousands)
Revenues | $ | 49,456 |  |  | $ | — |  |  | $ | 8,463 |  |  | $ | 57,919 |  |  | $ | 109,131 |  |  | $ | — |  |  | $ | 15,654 |  |  | $ | 124,785 |
Other patent royalties received | 3,125 |  |  | — |  |  | 267 |  |  | 3,392 |  |  | 5,000 |  |  | — |  |  | 3,629 |  |  | 8,629 |
Customer licensing income | $ | 52,581 |  |  | $ | — |  |  | $ | 8,730 |  |  | $ | 61,311 |  |  | $ | 114,131 |  |  | $ | — |  |  | $ | 19,283 |  |  | $ | 133,414 |
Segment operating expenses | 9,347 |  |  | 7,074 |  |  | 12,215 |  |  | 28,636 |  |  | 18,272 |  |  | 14,932 |  |  | 22,289 |  |  | 55,493 |
Segment operating income (loss) | $ | 43,234 |  |  | $ | (7,074 | ) |  | $ | (3,485 | ) |  | $ | 32,675 |  |  | $ | 95,859 |  |  | $ | (14,932 | ) |  | $ | (3,006 | ) |  | $ | 77,921 |
Reconciling items |  |  |  |  |  |  |  |  | (26,931 | ) |  |  |  |  |  |  |  |  |  | (70,736 | )
Operating income |  |  |  |  |  |  |  |  | $ | 5,744 |  |  |  |  |  |  |  |  |  |  | $ | 7,185 |
Interest and other income (expense), net |  |  |  |  |  |  |  |  | (8,845 | ) |  |  |  |  |  |  |  |  |  | (16,177 | )
Loss before income taxes |  |  |  |  |  |  |  |  | $ | (3,101 | ) |  |  |  |  |  |  |  |  |  | $ | (8,992 | )
| For the Three Months Ended June 30, 2012 |  | For the Six Months Ended June 30, 2012
| MID |  | CTO |  | All Other |  | Total |  | MID |  | CTO |  | All Other |  | Total
| (In thousands) |  | (In thousands)
Revenues | $ | 52,137 |  |  | $ | — |  |  | $ | 4,078 |  |  | $ | 56,215 |  |  | $ | 109,225 |  |  | $ | — |  |  | $ | 9,853 |  |  | $ | 119,078 |
Other patent royalties received | — |  |  | — |  |  | 1,201 |  |  | 1,201 |  |  | — |  |  | — |  |  | 3,615 |  |  | 3,615 |
Customer licensing income | $ | 52,137 |  |  | $ | — |  |  | $ | 5,279 |  |  | $ | 57,416 |  |  | $ | 109,225 |  |  | $ | — |  |  | $ | 13,468 |  |  | $ | 122,693 |
Segment operating expenses | 10,045 |  |  | 7,864 |  |  | 8,117 |  |  | 26,026 |  |  | 21,594 |  |  | 14,368 |  |  | 16,188 |  |  | 52,150 |
Segment operating income (loss) | $ | 42,092 |  |  | $ | (7,864 | ) |  | $ | (2,838 | ) |  | $ | 31,390 |  |  | $ | 87,631 |  |  | $ | (14,368 | ) |  | $ | (2,720 | ) |  | $ | 70,543 |
Reconciling items |  |  |  |  |  |  |  |  | (53,139 | ) |  |  |  |  |  |  |  |  |  | (109,850 | )
Operating loss |  |  |  |  |  |  |  |  | $ | (21,749 | ) |  |  |  |  |  |  |  |  |  | $ | (39,307 | )
Interest and other income (expense), net |  |  |  |  |  |  |  |  | (6,630 | ) |  |  |  |  |  |  |  |  |  | (13,112 | )
Loss before income taxes |  |  |  |  |  |  |  |  | $ | (28,379 | ) |  |  |  |  |  |  |  |  |  | $ | (52,419 | )
The CODM does not review information regarding assets on an operating segment basis. Additionally, the Company does not record intersegment revenue or expense. Revenue from the Company’s major customers representing 10% or more of total revenue for the three and six months ended June 30, 2013 and 2012, respectively, were as follows:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, |  | June 30,
Customer |  | 2013 |  | 2012 |  | 2013 |  | 2012
Customer A |  | 39 | % |  | 38 | % |  | 36 | % |  | 38 | %
Customer B |  | * |  |  | * |  |  | * |  |  | 10 | %
_________________________________________ * Customer accounted for less than 10% of total revenue in the period Revenue from customers in the geographic regions based on the location of customers' headquarters is as follows:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, |  | June 30,
(In thousands) |  | 2013 |  | 2012 |  | 2013 |  | 2012
South Korea |  | $ | 22,502 |  |  | $ | 21,468 |  |  | $ | 44,527 |  |  | $ | 44,715 |
USA |  | 15,106 |  |  | 15,280 |  |  | 40,675 |  |  | 31,469 |
Japan |  | 12,261 |  |  | 15,902 |  |  | 26,869 |  |  | 33,471 |
Europe |  | 5,432 |  |  | 943 |  |  | 7,560 |  |  | 2,072 |
Canada |  | 1,862 |  |  | 1,872 |  |  | 3,648 |  |  | 3,851 |
Asia-Other |  | 756 |  |  | 750 |  |  | 1,506 |  |  | 3,500 |
Total |  | $ | 57,919 |  |  | $ | 56,215 |  |  | $ | 124,785 |  |  | $ | 119,078 |

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration