XML 36 R14.htm IDEA: XBRL DOCUMENT
v3.20.4

Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2020
Investments Debt And Equity Securities [Abstract] |
Financial Instruments | NOTE 6 – FINANCIAL INSTRUMENTS The Company has investments in debt securities which include corporate bonds and notes, treasury and agency notes and bills, commercial paper, certificates of deposit, and in equity securities consisting of money market funds. The Company classifies its debt securities as available-for-sale (“AFS”), which are accounted for at fair value with credit related losses recognized as a provision for credit losses in its Consolidated Statements of Operations and all non-credit related unrealized gains and losses recognized in accumulated other comprehensive income or loss on the Consolidated Balance Sheets. Under ASU 2016-01 (Topic 321), equity securities are measured at fair value with unrealized gains and losses recognized in other income and expense, net, in the Consolidated Statements of Operations. The following is a summary of marketable securities at December 31, 2020 and December 31, 2019 (in thousands):
|  | December 31, 2020 |
|  | Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Allowance for Credit Losses |  |  | Estimated Fair Values |
Marketable securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds and notes |  | $ | 69,973 |  |  | $ | 29 |  |  | $ | (42 | ) |  | $ | — |  |  | $ | 69,960 |
Commercial paper |  |  | 15,991 |  |  |  | — |  |  |  | (4 | ) |  |  | — |  |  |  | 15,987 |
Treasury and agency notes and bills |  |  | 32,299 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 32,299 |
Total debt securities |  |  | 118,263 |  |  |  | 29 |  |  |  | (46 | ) |  |  | — |  |  |  | 118,246 |
Money market funds |  |  | 3,849 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,849 |
Total equity securities |  |  | 3,849 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,849 |
Total marketable securities |  | $ | 122,112 |  |  | $ | 29 |  |  | $ | (46 | ) |  | $ | — |  |  | $ | 122,095 |
Reported in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 35,148 |
Available-for-sale debt securities (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 86,947 |
Total marketable securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 122,095 |
| (1) | Amortized cost related to the balance reported as AFS debt securities was $86,963.
|  | December 31, 2019 |
|  | Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Values |
Marketable securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds and notes |  | $ | 41,730 |  |  | $ | 29 |  |  | $ | (13 | ) |  | $ | 41,746 |
Commercial paper |  |  | 4,052 |  |  |  | 4 |  |  |  | — |  |  |  | 4,056 |
Total debt securities |  |  | 45,782 |  |  |  | 33 |  |  |  | (13 | ) |  |  | 45,802 |
Money market funds |  |  | 2,601 |  |  |  | — |  |  |  | — |  |  |  | 2,601 |
Marketable equity securities |  |  | 3,405 |  |  |  | — |  |  |  | (2,281 | ) |  |  | 1,124 |
Total equity securities |  |  | 6,006 |  |  |  | — |  |  |  | (2,281 | ) |  |  | 3,725 |
Total marketable securities |  | $ | 51,788 |  |  | $ | 33 |  |  | $ | (2,294 | ) |  | $ | 49,527 |
Reported in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,601 |
Available-for-sale debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 45,802 |
Equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,124 |
Total marketable securities |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 49,527 |
At December 31, 2020 and December 31, 2019, the Company had $257.1 million and $121.5 million, respectively, in cash, cash equivalents and short-term investments. A significant portion of these amounts was held in marketable securities, as shown above. The remaining balance of $135.0 million and $72.0 million at December 31, 2020 and December 31, 2019, respectively, was cash held in operating accounts not included in the tables above. Debt Securities The gross realized gains and losses on sales of marketable debt securities were not significant during the years ended December 31, 2020, 2019 and 2018. Unrealized losses on AFS debt securities were $0.1 million and $0.1 million, net of tax, as of December 31, 2020 and December 31, 2019, respectively. The Company evaluated whether the decline in fair value has resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of AFS securities and were due primarily to changes in interest rates and market conditions of the underlying securities. In addition, the contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. The Company does not intend to sell the debt securities and it is more-likely-than-not that it will not be required to sell the investments before recovery of their amortized cost bases. The Company did not recognize a provision for credit loss expense related to its AFS debt securities for the year ended December 31, 2020. No impairment charges were recorded on the AFS debt securities for the years ended December 31, 2019 and 2018, respectively. The following table summarizes the fair value and gross unrealized losses related to individual AFS debt securities at December 31, 2020 and 2019, which have been in a continuous unrealized loss position, aggregated by investment category and length of time (in thousands):
December 31, 2020 |  | Less Than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |
Corporate bonds and notes |  | $ | 53,137 |  |  | $ | (42 | ) |  | $ | — |  |  | $ | — |  |  | $ | 53,137 |  |  | $ | (42 | )
Commercial paper |  |  | 12,988 |  |  |  | (4 | ) |  |  | — |  |  |  | — |  |  |  | 12,988 |  |  |  | (4 | )
Total |  | $ | 66,125 |  |  | $ | (46 | ) |  | $ | — |  |  | $ | — |  |  | $ | 66,125 |  |  | $ | (46 | )
December 31, 2019 |  | Less Than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |
Corporate bonds and notes |  | $ | 20,031 |  |  | $ | (10 | ) |  | $ | 8,753 |  |  | $ | (3 | ) |  | $ | 28,784 |  |  | $ | (13 | )
Total |  | $ | 20,031 |  |  | $ | (10 | ) |  | $ | 8,753 |  |  | $ | (3 | ) |  | $ | 28,784 |  |  | $ | (13 | )
The estimated fair value of marketable debt securities by contractual maturity at December 31, 2020 is shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.
|  | Estimated Fair Value |
Due in one year or less |  | $ | 77,263 |
Due in one to two years |  |  | 40,983 |
Due in two to three years |  |  | — |
Total |  | $ | 118,246 |
Equity Securities On September 19, 2018, the Company purchased seven million common shares of Onkyo Corporation (“Onkyo”), a publicly traded Japanese company and a long-standing customer of the Company, pursuant to the Capital Alliance Agreement (“Agreement”) entered into between the two parties on September 3, 2018. Upon making the investment, the Company held a 6.3% ownership interest in Onkyo. Due to changes in business expectations, the Company determined not to continue discussions on the business alliance. In July 2019, the Company sold approximately 2.8 million shares of Onkyo stock, for which a realized gain of $0.9 million was recognized for the year ended December 31, 2019. In June 2020, the Company sold the remaining 4.2 million shares of Onkyo stock, for which a realized loss of $0.7 million was recognized for the year ended December 31, 2020. There were no sales of the Onkyo investment in 2018, during which period an unrealized loss of $2.2 million was recognized. Non-marketable Equity Securities Investments in non-marketable equity securities are accounted for using either the equity method or the cost method. Investments in entities over which the Company has the ability to exercise significant influence, but does not hold a controlling interest, are accounted for using the equity method. Under the equity method, the Company records its proportionate share of income or loss in other income and expense, net, in the Consolidated Statements of Operations. Investments in entities over which the Company does not have the ability to exercise significant influence are accounted for using the cost method. The Company monitors its non-marketable securities portfolio for potential impairment. When the carrying amount of an investment in a non-marketable security exceeds its fair value and the decline in fair value is determined to be other-than-temporary, the loss is recorded in other income and expense, net, in the Consolidated Statements of Operations. Upon merging with TiVo on June 1, 2020, the Company assumed certain investments in non-marketable equity. As of December 31, 2020, other long-term assets included equity securities accounted for under the equity method with a carrying amount of $4.2 million and equity securities without a readily determinable fair value with a carrying amount of $0.1 million, respectively. No impairments or adjustments to the carrying amount of the Company's equity securities without a readily determinable fair value were recognized in the year ended December 31, 2020. The Company had no investments in non-marketable equity as of December 31, 2019. Derivatives In the first quarter of 2019, the Company began to use derivative financial instruments to manage foreign currency exchange rate risk. The Company does not enter into derivative transactions for trading purposes. Cash flows from the derivative programs are classified as cash flows from operating activities in the Consolidated Statements of Cash Flows. The Company’s derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts, which are used primarily to hedge balance sheet and certain expenditure exposures. These instruments are generally short-term in nature, with typical maturities of less than one year, and are subject to fluctuations in foreign exchange rates. Fair values for derivative financial instruments are based on prices computed using third-party valuation models and are classified as Level 2 in accordance with the three-level hierarchy of fair value measurements. All significant inputs to the third-party valuation models are observable in active markets. Inputs include current market-based parameters such as forward rates, yield curves and credit default swap pricing. For additional information related to the three-level hierarchy of fair value measurements, see “Note 7 – Fair Value.” Under the Company’s policy election, these derivatives are not designated as hedge instruments, and are measured and reported at fair value. Changes in the fair value of these undesignated derivatives are reported in other income and expense, net, on the Consolidated Statements of Operations. Realized gains or losses were not significant in the year s ended December 31, 2020 and 2019, respectively. There were no derivative instruments outstanding as of December 31, 2020 and 2019, respectively. The Company did no t engage in derivative contracts in 2018.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration