XML 15 R10.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Balance Sheet Information | 3 Months Ended
--- | ---
Mar. 31, 2013
Balance Sheet Information |
Balance Sheet Information | Note 3—Balance Sheet Information Cash and Cash Equivalents Cash and cash equivalents include cash and certain highly liquid investments. Highly liquid investments with maturities of three months or less when purchased may be classified as cash equivalents. Such items may include liquid money market accounts, treasury bills, government agency securities and corporate debt. The investments that are classified as cash equivalents are carried at cost, which approximates fair value. Short-Term Investments Available-for-sale securities consist of the following (in thousands):
|  | March 31, 2013 |
|  | Amortized Cost |  | Gains in Accumulated Other Comprehensive Income |  | Losses in Accumulated Other Comprehensive Income |  | Estimated Fair Value |
Treasury bills |  | $ | 271,168 |  | $ | 33 |  | $ | — |  | $ | 271,201 |
Government agency securities |  | 8,055 |  | — |  | — |  | 8,055 |
Corporate bonds |  | 63,488 |  | 38 |  | (27 | ) | 63,499 |
Commercial paper |  | 19,992 |  | — |  | — |  | 19,992 |
Total available-for-sale securities |  | $ | 362,703 |  | $ | 71 |  | $ | (27 | ) | $ | 362,747 |
|  | December 31, 2012 |
|  | Amortized Cost |  | Gains in Accumulated Other Comprehensive Income |  | Losses in Accumulated Other Comprehensive Income |  | Estimated Fair Value |
Treasury bills |  | $ | 184,102 |  | $ | 76 |  | $ | — |  | $ | 184,178 |
Government agency securities |  | 8,056 |  | — |  | — |  | 8,056 |
Total available-for-sale securities |  | $ | 192,158 |  | $ | 76 |  | $ | — |  | $ | 192,234 |
During the three months ended March 31, 2013 and 2012, available-for-sale securities were liquidated for total proceeds of $101.2 million and $43.6 million, respectively. The gross realized gains and losses on these sales were $0.1 million for the three months ended March 31, 2013 and minimal gross realized gains for the three months ended March 31, 2012. The cost of securities sold is based on specific identification. The table below shows the fair value of short-term investments that have been in an unrealized loss position for less than 12 months as of March 31, 2013 (in thousands):
|  | Estimated Fair value |  | Unrealized Losses |
Corporate bonds |  | $ | 28,491 |  | $ | (27 | )
Total |  | $ | 28,491 |  | $ | (27 | )
We did not hold any short-term investments that have been in an unrealized loss position for 12 months or longer for the period noted in the preceding table. The Company regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether an unrealized loss was considered to be temporary or other-than-temporary and therefore impaired include: the length of time and extent to which fair value has been lower than the cost basis; the financial condition and near-term prospects of the investee; and whether it is more likely than not that the Company will be required to sell the security prior to recovery. The Company believes the gross unrealized losses on the Company’s short-term investments as of March 31, 2013 were temporary in nature and therefore did not recognize any impairment. As of December 31, 2012 we did not hold any short-term investments that were in a loss position. Contractual maturities of available-for-sale securities are as follows (in thousands):
|  | March 31, 2013 |
|  | Estimated Fair Value |
Due in one year or less |  | $ | 288,752 |
Due in 1—2 years |  | 32,811 |
Due in 2—3 years |  | 41,184 |
Total available-for-sale securities |  | $ | 362,747 |
Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Restricted Cash As of March 31, 2013 and December 31, 2012, restricted cash consisted of $2.1 million and $2.0 million, respectively, which serves as collateral for bank guarantees that provide financial assurance that the Company will fulfill certain customer obligations. This cash is held in custody by the issuing bank and is restricted as to withdrawal or use while the related bank guarantees are outstanding. Accounts Receivable, Net Accounts receivable are shown net of the allowance for doubtful accounts of $0.5 million as of March 31, 2013 and December 31, 2012. Inventories Inventories are stated at the lower of cost (principally first-in, first-out) or market. Inventories consist of (in thousands):
|  | March 31, |  | December 31, |
|  | 2013 |  | 2012 |
Materials |  | $ | 44,219 |  | $ | 36,523 |
Work in process |  | 17,248 |  | 13,363 |
Finished goods |  | 6,222 |  | 9,921 |
|  | $ | 67,689 |  | $ | 59,807 |
Cost Method Investment As of March 31, 2013 and December 31, 2012 we have recorded a total investment of $14.5 million in a rapidly developing organic light emitting diode (“OLED”) equipment company (the “Investment”). Our ownership in the Investment is approximately 15.3% of the preferred shares and a 12.0% interest in the total company. Since we do not exert significant influence on the Investment, this investment is treated under the cost method in accordance with applicable accounting guidance. The fair value of this investment is not estimated because there are no identified events or changes in circumstances that may indicate an other-than-temporary decline in the fair value of the investment and we are exempt from estimating interim fair values because the investment does not meet the definition of a publicly traded company. This investment is recorded in other assets in our Condensed Consolidated Balance Sheets. Subsequently, during the second and third quarters of 2013, we invested an additional $0.8 million in the Investment each quarter. Customer Deposits As of March 31, 2013 and December 31, 2012, we had customer deposits of $38.4 million and $32.7 million, respectively, which are recorded as a component of accrued expenses and other current liabilities. Accrued Warranty We estimate the costs that may be incurred under the warranties we provide and record a liability in the amount of such costs at the time the related revenue is recognized. Factors that affect our warranty liability include product failure rates, material usage and labor costs incurred in correcting product failures during the warranty period. This accrual is recorded in accrued expense and other current liabilities in our Condensed Consolidated Balance Sheets. We periodically assess the adequacy of our recognized warranty liability and adjust the amount as necessary. Changes in our warranty liability during the period are as follows (in thousands):
|  | Three months ended |
|  | March 31, |
|  | 2013 |  | 2012 |
Balance as of the beginning of period |  | $ | 4,942 |  | $ | 8,731 |
Warranties issued during the period |  | 478 |  | 696 |
Settlements made during the period |  | (1,341 | ) | (1,840 | )
Changes in estimate during the period |  | — |  | 327 |
Balance as of the end of period |  | $ | 4,079 |  | $ | 7,914 |
In the current year’s presentation we no longer include installation in the accrued warranty balance; therefore, in order to conform the balance to current year presentation, we have reclassified $1.047 million from the beginning balance of 2012 accrued warranty to accrued installation which, along with accrued warranty, is also a component of Accrued expenses and other current liabilities. Mortgage Payable We have a mortgage payable with approximately $2.3 million outstanding as of March 31, 2013 and $2.4 million outstanding as of December 31, 2012. The mortgage accrues interest at an annual rate of 7.91%, and the final payment is due on January 1, 2020. The fair value of the mortgage as of March 31, 2013 was approximately $2.5 million and $2.6 million as of December 31, 2012. Accumulated Other Comprehensive Income The components of accumulated other comprehensive income are (in thousands):
As of March 31, 2013 |  | Gross |  | Taxes |  | Net |
Translation adjustments |  | $ | 6,290 |  | $ | (352 | ) | $ | 5,938 |
Minimum pension liability |  | (1,285 | ) | 510 |  | (775 | )
Unrealized gain on available-for-sale securities |  | 44 |  | (13 | ) | 31 |
Accumulated other comprehensive income |  | $ | 5,049 |  | $ | 145 |  | $ | 5,194 |
As of December 31, 2012 |  | Gross |  | Taxes |  | Net |
Translation adjustments |  | $ | 7,040 |  | $ | (339 | ) | $ | 6,701 |
Minimum pension liability |  | (1,285 | ) | 510 |  | (775 | )
Unrealized gain on available-for-sale securities |  | 76 |  | (29 | ) | 47 |
Accumulated other comprehensive income |  | $ | 5,831 |  | $ | 142 |  | $ | 5,973 |

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

X
- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References No definition available. + Details
Name: | us-gaap_SupplementalBalanceSheetDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration