Investments in Equity Securities Investments in Equity Securities

9 Months Ended

Sep. 26, 2014

Investments, All Other Investments [Abstract]

Investments in Equity Securities

INVESTMENTS IN EQUITY SECURITIES

On September 26, 2014, the Company acquired a 19.8% interest in VJU iTV Development GmbH ("VJU"), a software company based in Austria, for $2.5 million. Since VJU's equity is deemed not sufficient to permit it to finance its activities without additional support from its shareholders, VJU is considered a variable interest entity ("VIE"). The Company determined that it is not the primary beneficiary of VJU because its financial interest in VJU's equity and its research and development agreement with VJU do not empower the Company to direct VJU's activities that will most significantly impact VJU's economic performance. VJU is accounted for as a cost method investment as the Company does not have significant influence over the operational and financial policies of VJU. As of September 26, 2014, the carrying value of VJU was $2.5 million and it is included in “Other assets" in the Condensed Consolidated Balance Sheet. As of September 26, 2014, the Company's maximum exposure to loss from investment in VJU was limited to the investment cost and research and development fees paid to VJU in the amount of $2.5 million and $0.1 million, respectively.

On September 2, 2014, the Company acquired a 3.3% interest in Vislink plc ("Vislink"), a U.K. public company listed on the AIM exchange, for $3.3 million, and also made $3.3 million prepayment for future software license purchases. The investment in Vislink is being accounted for as a cost method investment as the Company does not have significant influence over the operational and financial policies of Vislink. The Vislink investment is marked to market for the difference in fair value at period end, and as of September 26, 2014, the carrying value of Vislink was $3.1 million and is included in “Other assets" in the Condensed Consolidated Balance Sheet. The $3.3 million prepayment for future software license purchases is included in "Prepaid expenses and other current assets" in the Condensed Consolidated Balance Sheet.

The Company reviews all of its cost method investments quarterly to determine if impairment indicators exist.