x | ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware (State or other jurisdiction of incorporation or organization) | 77-0051991 (I.R.S. Employer Identification Number) |
Title of Each Class Common Stock, par value $0.001 per share | Name of Exchange on Which Registered The NASDAQ Stock Market LLC (NASDAQ Global Select Market) |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting filer o |
Page | |
• | Microcontroller. This segment includes Atmel's general purpose microcontroller and microprocessor families, AVR® 8-bit and 32-bit products, Atmel®| SMARTTM ARM® based products, Atmel's 8051 8-bit products, designated commercial wireless products, including low power radio and SOC products that meet Bluetooth, Bluetooth Low Energy, ZigBee and Wi-Fi specifications, Atmel's maXTouch capacitive touch product families and optimized products for smart energy, automotive, touch button, and mobile sensor hub and LED lighting applications. The Microcontroller segment comprised 69% of our net revenue for the year ended December 31, 2015, compared to 70% of our net revenue for the year ended December 31, 2014. |
• | Nonvolatile Memory. This segment includes electrically erasable programmable read-only memory ("EEPROM") devices, erasable programmable read-only memory (“EPROM”) devices and secure cryptographic products. The Nonvolatile Memory segment comprised 13% of our net revenue for the year ended December 31, 2015, compared to 12% of our net revenue for the year ended December 31, 2014. |
• | Automotive. This segment includes devices for automotive electronics, including products using radio frequency technology. The Automotive segment comprised 12% of our net revenue for the year ended December 31, 2015, compared to 11% of our net revenue for the year ended December 31, 2014. |
• | Multi-Market and Other. This segment includes application specific and standard products for aerospace applications and legacy products. The Multi-Market and Other segment comprised 6% of our net revenue for the year ended December 31, 2015, compared to 7% of our net revenue for the year ended December 31, 2014. On April 16, 2015, we completed the sale of our XSense touch sensor assets to UniPixel, Inc. For further discussion see Note 14 of Notes to Consolidated Financial Statements. |
• | Atmel | SMART 32-bit ARM product families; |
• | Atmel | SMART Connect Wireless product families; |
• | Atmel AVR proprietary 8-bit and 32-bit product families; |
• | Atmel 8051 8-bit product families; and |
• | Atmel maXTouch and QTouch® product families. |
• | Bluetooth - State of the art low power Bluetooth Low Energy ("BLE") solutions integrated with Atmel │ SMART ARM® Cortex®-M based MCUs bring connectivity to any embedded design. These self-contained SoCs and certified modules are ideally suited for a variety of battery-powered devices and applications requiring a wireless connection without compromising on cost and power consumption. |
• | 802.15.4 - To support today's increasingly-connected applications, we offer a complete line of IEEE 802.15.4-compliant and ZigBee® certified wireless solutions. These are based on the rich family of Atmel RF transceivers, as well as Atmel AVR®, ARM®-based and single-chip wireless microcontrollers. |
• | Wi-Fi - Addressing the need for Wi-Fi capability in embedded systems, our low-power Wi-Fi solutions cover a wide range of applications. The SmartConnect solutions include self-contained, low-power, and certified modules bringing wireless Internet connectivity to any embedded design. The SmartDirect solutions offer the world’s first fully-integrated RF, baseband SoC (system on a chip) Wi-Fi personal area network solution. |
• | the pendency and outcome of any legal proceedings that have been or may be instituted against us, our directors and others relating to the transactions contemplated by the Merger Agreement; |
• | potential adverse effects on our relationships with, and negative reactions from, our current suppliers, vendors and other business partners, or those with which we are seeking to establish business relationships; |
• | the restrictions imposed on our business and operations under the Merger Agreement, which may prevent us from pursuing opportunities without Microchip’s approval or taking other actions, whether in the form of dividend payments, stock repurchases, restructurings, asset dispositions or otherwise, that we might have undertaken in the absence of this transaction; |
• | that we may forego opportunities we might otherwise have pursued absent the Merger Agreement; |
• | potential adverse effects on our ability to attract, recruit, retain and motivate current and prospective employees who may be uncertain about their future roles and relationships with us following the completion of the Merger; and |
• | the significant diversion of our employees’ and management’s attention resulting from the transactions contemplated by the Merger Agreement may prevent us from taking advantage of alternative business opportunities or effectively responding to competitive pressures. |
• | competitive disadvantages that may arise from integration and related undertakings, including information sharing, associated with Microchip’s efforts to close the transaction with us; |
• | we paid a termination fee of $137.3 million to Dialog in connection with the termination of our merger agreement with Dialog resulting in additional borrowings under our credit facility to fund that payment, and we could be required to pay a further termination fee of $137.3 million to Microchip under circumstances as described in the Merger Agreement, which could require additional borrowings under our credit facility; |
• | we incurred significant costs in connection with the terminated Dialog merger agreement and we could incur significant costs in connection with our pending acquisition by Microchip that we would be unable to recover; |
• | we may be subject to legal proceedings related to the acquisition; |
• | the failure of the acquisition to be consummated may result in adverse publicity and a negative impression of us in the investment community; |
• | any disruptions to our business resulting from the announcement and pendency of the acquisition, including any adverse changes in our relationships with, or negative reactions from, our customers, vendors, other business partners and employees, may continue or intensify in the event the Merger is not consummated; |
• | our Chief Executive Officer announced that his previously announced retirement will be effective on April 18, 2016, which may occur prior to the closing of our acquisition by Microchip; if we do not complete the transaction with Microchip by April 18, 2016, we would need to appoint an interim Chief Executive Officer to help manage the Company until the completion of that transaction; if we fail to complete the transaction with Microchip, we would need to recruit and hire a new Chief Executive Officer, which would lead to further uncertainty about our business and strategy; and |
• | we may experience employee departures. |
• | uncertain or unstable global macroeconomic, geo-political and social conditions, including those in Europe (where deflationary pressures and high unemployment continue to exist and concerns about the financial stability of members of the European Union continue), the Middle East (where U.S. military action remains ongoing, and Russian intervention in Syria has occurred), and Asia (where economic activity in China has slowed); |
• | the effect of fluctuations in currency exchange rates, continued political and economic uncertainties within the European Union, or the possible exit of member states from the European Union; |
• | restrictions in our revolving credit facility that may limit our flexibility in operating our business; |
• | the success of our customers’ end products, our ability to introduce new products into the market and to ramp production of new products, and our ability to improve and implement new manufacturing technologies, reduce manufacturing costs and achieve acceptable manufacturing yields; |
• | the cyclical nature of, and consolidation occurring within, the semiconductor industry; |
• | disruption to our business caused by our dependence on outside foundries, and the insolvency and liquidation proceedings, and associated litigation, of those foundries in some cases; |
• | our dependence on selling through independent distributors and our ability to obtain accurate and timely sell-through information from these distributors; |
• | the complexity of our revenue reporting and dependence on our management’s ability to make judgments and estimates regarding inventory write-downs, future claims for returns and other matters affecting our financial statements; |
• | our reliance on non-binding customer forecasts and the effect of customer changes to forecasts and actual demand; |
• | the increasing complexity and added costs, compliance and otherwise, associated with laws and regulations around the world that affect our businesses and activities, including, for example, trade, export control, foreign corrupt practices, and bribery regulations; |
• | compliance with regulations regarding the use of “conflict minerals” and the resulting potential for increased costs for certain metals used in manufacturing our products resulting therefrom; |
• | the capacity constraints of our independent assembly contractors; |
• | the effect of intellectual property and other litigation on us and our customers, and our ability to protect our intellectual property rights; |
• | the highly competitive nature of our markets and our ability to keep pace with technological change; |
• | our dependence on international sales and operations and the added complexity and compliance costs associated therewith; |
• | information technology system failures or network disruptions and disruptions caused by our system integration efforts; |
• | business interruptions, natural disasters, terrorist acts or similar unforeseen events or circumstances; |
• | our ability to maintain relationships with our key customers, the absence of long-term supply contracts with most of our customers, and product liability claims our customers may bring; |
• | unanticipated changes to environmental, health and safety regulations or related compliance issues; |
• | our dependence on certain key personnel; |
• | uneven expense recognition related to our issuance of performance-based restricted stock units or expectations related to cash-based executive incentive plans; |
• | the anti-takeover effects of provisions in our certificate of incorporation and bylaws; |
• | the unfunded nature of our foreign pension plans; |
• | the effect of acquisitions we may undertake, including our ability to effectively integrate acquisitions into our operations; |
• | disruptions in the availability of raw materials used in our products; |
• | the complexity of our global legal entity structure, the effect of intercompany loans within this structure, and the occurrence and outcome of income tax audits for these entities; and |
• | our receipt of economic grants in various jurisdictions, which may require repayment if we are unable to comply with the terms of such grants. |
• | slow, uneven economic growth throughout the world; |
• | continued uncertainty regarding macroeconomic conditions in Europe (including potential deflationary pressures, continuing high unemployment, the financial stability of members of the European Union and possible exits from the European Union) and Asia (including an ongoing economic slowdown in China); |
• | geo-political events throughout the world, including, for example, in the Middle East (which continues to witness increased military activities in Iraq and Syria, including renewed U.S. involvement, and Russian intervention) and Eastern Europe (which continues to experience political and economic unrest in the wake of Russian and Ukrainian territorial claims); and |
• | social unrest or disorder arising from the threat of global pandemics. |
• | reduced control over delivery schedules and product costs; |
• | financial instability, liquidity issues, or insolvency proceedings, and related litigation, affecting our foundry partners; |
• | manufacturing disruptions at our Colorado Springs wafer fabrication facility or at those of our third-party foundries; |
• | higher than anticipated manufacturing costs; |
• | inability of our manufacturing subcontractors to develop manufacturing methods appropriate for our products and their unwillingness to devote adequate capacity to produce our products; |
• | possible abandonment of key fabrication processes by our foundry subcontractors used in products that are strategically important to us; |
• | reduced control over or decline in product quality and reliability; |
• | inability to maintain continuing relationships with our foundries; |
• | restricted ability to meet customer demand when faced with product shortages or order increases; and |
• | increased risk of potential misappropriation of our intellectual property. |
• | reduced control over quality and delivery schedules; |
• | the potential lack of adequate capacity of independent assembly contractors; |
• | discontinuance or phase-out of our contractors’ assembly processes; |
• | inability of our contractors to develop and maintain assembly and test methods and equipment that are appropriate for our products; |
• | lack of long-term contracts and the potential inability to secure strategically important service contracts on favorable terms, if at all; |
• | increased opportunities for potential misappropriation of our intellectual property; and |
• | financial instability, or liquidity issues, affecting our subcontractors. |
• | our success in designing and manufacturing new products that implement new technologies and processes; |
• | our ability to offer integrated solutions using our advanced nonvolatile memory process with other technologies; |
• | the rate at which customers incorporate our products into their systems; |
• | product introductions by our competitors; |
• | the number and nature of our competitors in a given market; |
• | our ability to minimize production costs by outsourcing our manufacturing, assembly and testing functions; |
• | our ability to improve our process technologies and production efficiency; and |
• | general market and economic conditions. |
• | greater difficulty in protecting intellectual property; |
• | reduced flexibility and increased cost of effecting staffing adjustments; |
• | foreign labor conditions and practices; |
• | adverse changes in tax laws; |
• | credit and collectibility risks on our trade receivables with customers in certain jurisdictions; |
• | longer collection cycles; |
• | legal and regulatory requirements, including antitrust laws, import and export regulations, trade barriers, tariffs and tax laws, and environmental and privacy regulations and changes to those laws and regulations; |
• | negative effects from fluctuations in foreign currency exchange rates; |
• | cash repatriation restrictions; |
• | impact of natural disasters on local infrastructures, including those of our distributors and end customers; and |
• | general economic and political conditions in these foreign markets. |
Number of Buildings | Location | Total Square Feet | Use | |||||||
6 | Colorado Springs, Colorado | 603,000 | Wafer fabrication, research and development, marketing, product design, final product testing. | |||||||
2 | Calamba City, Philippines | 460,000 | Probe operations and final product testing. | |||||||
6 | Rousset, France | 1,038,000 | Research and development, marketing and product design. |
High | Low | |||||||
Year ended December 31, 2014 | ||||||||
First Quarter | $ | 8.83 | $ | 7.44 | ||||
Second Quarter | $ | 9.63 | $ | 7.58 | ||||
Third Quarter | $ | 9.51 | $ | 8.02 | ||||
Fourth Quarter | $ | 8.50 | $ | 6.50 | ||||
Year ended December 31, 2015: | ||||||||
First Quarter | $ | 8.97 | $ | 7.80 | ||||
Second Quarter | $ | 10.44 | $ | 7.48 | ||||
Third Quarter | $ | 9.75 | $ | 6.59 | ||||
Fourth Quarter | $ | 8.73 | $ | 7.52 |
Years Ended December 31, | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
(in thousands, except for per share data) | |||||||||||||||||||
Net revenue | $ | 1,172,456 | $ | 1,413,334 | $ | 1,386,447 | $ | 1,432,110 | $ | 1,803,053 | |||||||||
Cost of revenue (3) | $ | 629,429 | $ | 794,704 | $ | 812,822 | $ | 830,791 | $ | 894,820 | |||||||||
Income (loss) from operations before income taxes(1)(2) | $ | 58,295 | $ | 57,226 | $ | (513 | ) | $ | 42,238 | $ | 381,190 | ||||||||
Net income (loss) | $ | 26,902 | $ | 35,208 | $ | (22,055 | ) | $ | 30,445 | $ | 314,990 | ||||||||
Less: net income attributable to noncontrolling interest, net of taxes | $ | (11 | ) | $ | (3,013 | ) | $ | — | $ | — | $ | — | |||||||
Net income (loss) attributable to Atmel | $ | 26,891 | $ | 32,195 | $ | (22,055 | ) | $ | 30,445 | $ | 314,990 | ||||||||
Basic net income (loss) per share attributable to Atmel: | |||||||||||||||||||
Net income (loss) per share | $ | 0.06 | $ | 0.08 | $ | (0.05 | ) | $ | 0.07 | $ | 0.69 | ||||||||
Weighted-average shares used in basic net income (loss) per share calculations | 418,759 | 419,103 | 427,460 | 433,017 | 455,629 | ||||||||||||||
Diluted net income (loss) per share attributable to Atmel: | |||||||||||||||||||
Net income (loss) per share | $ | 0.06 | $ | 0.08 | $ | (0.05 | ) | $ | 0.07 | $ | 0.68 | ||||||||
Weighted-average shares used in diluted net income (loss) per share calculations | 420,287 | 420,910 | 427,460 | 437,582 | 462,673 | ||||||||||||||
Cash dividends declared and paid per share | $ | 0.12 | $ | — | $ | — | $ | — | $ | — |
As of December 31, | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Cash and cash equivalents | $ | 210,252 | $ | 206,937 | $ | 276,881 | $ | 293,370 | $ | 329,431 | |||||||||
Fixed assets, net (3) | $ | 131,154 | $ | 158,281 | $ | 184,983 | $ | 221,044 | $ | 257,070 | |||||||||
Total assets | $ | 1,260,418 | $ | 1,362,304 | $ | 1,352,526 | $ | 1,433,533 | $ | 1,526,598 | |||||||||
Long-term debt and capital lease obligations, less current portion | $ | 55,000 | $ | 75,002 | $ | 7,010 | $ | 5,602 | $ | 4,599 | |||||||||
Stockholders’ equity | $ | 876,684 | $ | 869,999 | $ | 937,927 | $ | 996,638 | $ | 1,082,444 |
(1) | We recorded pre-tax, share-based compensation expense of $51.4 million, $59.7 million, $43.1 million, $72.4 million and $68.1 million for the years ended December 31, 2015, 2014, 2013, 2012 and 2011, respectively, excluding acquisition-related stock compensation expenses. |
(2) | We recorded $12.5 million, $13.8 million, $5.5 million, $7.4 million and $5.4 million in acquisition-related charges for the years ended December 31, 2015, 2014, 2013, 2012 and 2011, respectively. We recorded restructuring charges of $4.6 million, $13.9 million, $50.0 million, $24.0 million and $20.1 million for the years ended December 31, 2015, 2014, 2013, 2012 and 2011, respectively. We recorded a settlement charges of $21.6 million for the year ended December 31, 2013. |
(3) | Fixed assets, net, was reduced as of December 31, 2014 and 2013 as a result of the asset impairment charges of $25.3 million and $7.5 million for the years then ended, respectively. The charges were recorded in cost of revenues. |
Years Ended | |||||||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||||||||
(in thousands, except for percentage of net revenue) | |||||||||||||||||
Net revenue | $ | 1,172,456 | 100.0 | % | $ | 1,413,334 | 100.0 | % | $ | 1,386,447 | 100.0 | % | |||||
Gross margin | 543,027 | 46.3 | % | 618,630 | 43.8 | % | 573,625 | 41.4 | % | ||||||||
Research and development | 230,212 | 19.6 | % | 274,568 | 19.4 | % | 266,408 | 19.2 | % | ||||||||
Selling, general and administrative | 246,559 | 21.0 | % | 262,031 | 18.5 | % | 237,559 | 17.1 | % | ||||||||
Acquisition-related charges | 12,526 | 1.1 | % | 13,767 | 1.0 | % | 5,534 | 0.4 | % | ||||||||
Restructuring charges | 4,595 | 0.4 | % | 13,882 | 1.0 | % | 50,026 | 3.6 | % | ||||||||
Recovery of receivables due from foundry supplier | — | — | % | (485 | ) | — | % | (600 | ) | — | % | ||||||
Gain on sale of assets | (1,626 | ) | (0.1 | )% | (4,364 | ) | (0.3 | )% | (4,430 | ) | (0.3 | )% | |||||
Settlement charges | — | — | % | — | — | % | 21,600 | 1.6 | % | ||||||||
Income (loss) from operations | $ | 50,761 | 4.3 | % | $ | 59,231 | 4.2 | % | $ | (2,472 | ) | (0.2 | )% |
Years Ended | ||||||||||||||
December 31, 2015 | December 31, 2014 | Change | % Change | |||||||||||
(in thousands, except for percentages) | ||||||||||||||
Microcontroller | $ | 807,924 | $ | 994,069 | $ | (186,145 | ) | (19 | )% | |||||
Nonvolatile Memory | 150,780 | 166,768 | (15,988 | ) | (10 | )% | ||||||||
Automotive | 138,728 | 153,221 | (14,493 | ) | (9 | )% | ||||||||
Multi-Market and Other | 75,024 | 99,276 | (24,252 | ) | (24 | )% | ||||||||
Total net revenue | $ | 1,172,456 | $ | 1,413,334 | $ | (240,878 | ) | (17 | )% |
Years Ended | ||||||||||||||
December 31, 2014 | December 31, 2013 | Change | % Change | |||||||||||
(in thousands, except for percentages) | ||||||||||||||
Microcontroller | $ | 994,069 | $ | 958,471 | $ | 35,598 | 4 | % | ||||||
Nonvolatile Memory | 166,768 | 153,363 | 13,405 | 9 | % | |||||||||
Automotive | 153,221 | 159,774 | (6,553 | ) | (4 | )% | ||||||||
Multi-Market and Other | 99,276 | 114,839 | (15,563 | ) | (14 | )% | ||||||||
Total net revenue | $ | 1,413,334 | $ | 1,386,447 | $ | 26,887 | 2 | % |
Years Ended | ||||||||||||||
December 31, 2015 | December 31, 2014 | Change | % Change | |||||||||||
(in thousands, except for percentages) | ||||||||||||||
Asia | 652,380 | $ | 811,721 | $ | (159,341 | ) | (20 | )% | ||||||
Europe | 290,527 | 359,214 | (68,687 | ) | (19 | )% | ||||||||
United States | 204,197 | 211,532 | (7,335 | ) | (3 | )% | ||||||||
Other* | 25,352 | 30,867 | (5,515 | ) | (18 | )% | ||||||||
Total net revenue | $ | 1,172,456 | $ | 1,413,334 | $ | (240,878 | ) | (17 | )% |
Years Ended | ||||||||||||||
December 31, 2014 | December 31, 2013 | Change | % Change | |||||||||||
(in thousands, except for percentages) | ||||||||||||||
Asia | $ | 811,721 | $ | 818,703 | $ | (6,982 | ) | (1 | )% | |||||
Europe | 359,214 | 354,409 | 4,805 | 1 | % | |||||||||
United States | 211,532 | 192,878 | 18,654 | 10 | % | |||||||||
Other* | 30,867 | 20,457 | 10,410 | 51 | % | |||||||||
Total net revenue | $ | 1,413,334 | $ | 1,386,447 | $ | 26,887 | 2 | % |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
Cost of revenue | $ | 5,900 | $ | 6,356 | $ | 5,889 | |||||
Research and development | 14,172 | 17,569 | 14,852 | ||||||||
Selling, general and administrative | 31,320 | 35,754 | 22,383 | ||||||||
Total share-based compensation expense, before income taxes | 51,392 | 59,679 | 43,124 | ||||||||
Tax benefit | (11,144 | ) | (11,423 | ) | (7,707 | ) | |||||
Total share-based compensation expense, net of income taxes | $ | 40,248 | $ | 48,256 | $ | 35,417 |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
Interest and other income (expense) | $ | 1,117 | $ | (199 | ) | $ | 1,911 | ||||
Interest expense | (2,681 | ) | (2,618 | ) | (2,208 | ) | |||||
Foreign exchange transaction gains | 9,098 | 812 | 2,256 | ||||||||
Total | $ | 7,534 | $ | (2,005 | ) | $ | 1,959 |
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations: | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Total | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Debt including interest expense (a) | $ | 1,517 | $ | 57,927 | $ | — | $ | — | $ | 59,444 | ||||||||||
Capital purchase commitments | 2,175 | — | — | — | 2,175 | |||||||||||||||
Manufacturing suppliers open commitments | 21,792 | — | — | — | 21,792 | |||||||||||||||
Estimated pension plan benefit payments (b) | 673 | 1,397 | 2,120 | 8,472 | 12,662 | |||||||||||||||
Operating leases (c) | 10,939 | 15,729 | 14,099 | 11,606 | 52,373 | |||||||||||||||
Other obligations (d) | 7,762 | 8,317 | — | — | 16,079 | |||||||||||||||
Total | $ | 44,858 | $ | 83,370 | $ | 16,219 | $ | 20,078 | $ | 164,525 |
(a) | Borrowings under the Credit Agreement which mature on December 6, 2018. On January 20, 2016, we borrowed $137.0 million to fund the termination fee payable to Dialog in connection with the termination of the Dialog merger agreement. |
(b) | The "More than 5 years" amount represents the estimated payments to be made in years 5 through 10. Estimated payments beyond 10 years are not practical to estimate. See Note 12 to the Notes to Consolidated Financial Statements for further discussion. |
(c) | Operating leases include the San Jose headquarters lease of $35.9 million and other worldwide operating leases of $16.5 million. |
(d) | Other obligations consist of $16.1 million of obligations relating to software rights. |
Page | |
Consolidated Financial Statements of Atmel Corporation | |
Financial Statement Schedules | |
The following Financial Statement Schedules for the years ended December 31, 2015, 2014 and 2013 should be read in conjunction with the Consolidated Financial Statements, and related notes thereto: | |
Schedules not listed above have been omitted because they are not applicable or are not required or the information required to be set forth therein is included in the Consolidated Financial Statements or notes thereto | |
Supplementary Financial Data | |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands, except for per share data) | |||||||||||
Net revenue | $ | 1,172,456 | $ | 1,413,334 | $ | 1,386,447 | |||||
Operating expenses | |||||||||||
Cost of revenue | 629,429 | 794,704 | 812,822 | ||||||||
Research and development | 230,212 | 274,568 | 266,408 | ||||||||
Selling, general and administrative | 246,559 | 262,031 | 237,559 | ||||||||
Acquisition-related charges | 12,526 | 13,767 | 5,534 | ||||||||
Restructuring charges | 4,595 | 13,882 | 50,026 | ||||||||
Recovery of receivables from foundry supplier | — | (485 | ) | (600 | ) | ||||||
Gain on sale of assets | (1,626 | ) | (4,364 | ) | (4,430 | ) | |||||
Settlement charges | — | — | 21,600 | ||||||||
Total operating expenses | 1,121,695 | 1,354,103 | 1,388,919 | ||||||||
Income (loss) from operations | 50,761 | 59,231 | (2,472 | ) | |||||||
Interest and other income (expense), net | 7,534 | (2,005 | ) | 1,959 | |||||||
Income (loss) before income taxes | 58,295 | 57,226 | (513 | ) | |||||||
Provision for income taxes | (31,393 | ) | (22,018 | ) | (21,542 | ) | |||||
Net income (loss) | 26,902 | 35,208 | (22,055 | ) | |||||||
Less: net income attributable to noncontrolling interest, net of taxes | (11 | ) | (3,013 | ) | — | ||||||
Net income (loss) attributable to Atmel | $ | 26,891 | $ | 32,195 | $ | (22,055 | ) | ||||
Basic net income (loss) per share attributable to Atmel: | |||||||||||
Net income (loss) per share | $ | 0.06 | $ | 0.08 | $ | (0.05 | ) | ||||
Weighted-average shares used in basic net income (loss) per share calculations | 418,759 | 419,103 | 427,460 | ||||||||
Diluted net income (loss) per share attributable to Atmel: | |||||||||||
Net income (loss) per share | $ | 0.06 | $ | 0.08 | $ | (0.05 | ) | ||||
Weighted-average shares used in diluted net income (loss) per share calculations | 420,287 | 420,910 | 427,460 | ||||||||
Cash dividends declared and paid per share | $ | 0.12 | $ | — | $ | — |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
Net income (loss) | $ | 26,902 | $ | 35,208 | $ | (22,055 | ) | ||||
Other comprehensive (loss) income, net of tax: | |||||||||||
Foreign currency translation adjustments, net of tax benefit (expense) | (11,342 | ) | (13,899 | ) | 3,325 | ||||||
Actuarial gains (losses) related to defined benefit pension plans, net of tax benefit (expense) of $4,561 in 2015, $2,826 in 2014 and $(1,210) in 2013 | 7,096 | (6,309 | ) | 2,913 | |||||||
Unrealized holding (losses) gains on investments arising during period, net of tax benefit | (1,364 | ) | (771 | ) | 147 | ||||||
Reclassification adjustment from sale of investments | 2,137 | — | — | ||||||||
Other comprehensive (loss) income | (3,473 | ) | (20,979 | ) | 6,385 | ||||||
Total comprehensive income (loss) | 23,429 | 14,229 | (15,670 | ) | |||||||
Net income attributable to noncontrolling interest, net of taxes | (11 | ) | (3,013 | ) | — | ||||||
Comprehensive income (loss) attributable to Atmel | $ | 23,418 | $ | 11,216 | $ | (15,670 | ) |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands, except for par value) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 210,252 | $ | 206,937 | |||
Accounts receivable, net of allowance for doubtful accounts of $5,861 and $5,945, respectively | 195,481 | 222,021 | |||||
Inventories | 257,376 | 278,242 | |||||
Prepaids and other current assets | 35,299 | 89,101 | |||||
Total current assets | 698,408 | 796,301 | |||||
Fixed assets, net | 131,154 | 158,281 | |||||
Goodwill | 188,237 | 191,088 | |||||
Intangible assets, net | 38,943 | 50,286 | |||||
Other assets | 203,676 | 166,348 | |||||
Total assets | $ | 1,260,418 | $ | 1,362,304 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities | |||||||
Trade accounts payable | $ | 59,470 | $ | 97,467 | |||
Accrued and other liabilities | 113,012 | 139,696 | |||||
Deferred income on shipments to distributors | 38,710 | 49,059 | |||||
Current portion of long-term debt | — | 7,413 | |||||
Total current liabilities | 211,192 | 293,635 | |||||
Long-term debt | 55,000 | 75,000 | |||||
Other long-term liabilities | 117,542 | 123,670 | |||||
Total liabilities | 383,734 | 492,305 | |||||
Commitments and contingencies (Note 10) | |||||||
Stockholders’ equity | |||||||
Preferred stock; par value $0.001; Authorized: 5,000 shares; no shares issued and outstanding | — | — | |||||
Common stock; par value $0.001; Authorized: 1,600,000 shares; Shares issued and outstanding: 421,310 at December 31, 2015 and 416,178 at December 31, 2014, respectively | 421 | 416 | |||||
Additional paid-in capital | 790,249 | 756,760 | |||||
Accumulated other comprehensive loss | (11,655 | ) | (8,182 | ) | |||
Retained earnings | 94,645 | 117,992 | |||||
Total Atmel stockholders’ equity | 873,660 | 866,986 | |||||
Noncontrolling interest | 3,024 | 3,013 | |||||
Total stockholders' equity | 876,684 | 869,999 | |||||
Total liabilities and stockholders’ equity | $ | 1,260,418 | $ | 1,362,304 |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | $ | 26,902 | $ | 35,208 | $ | (22,055 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||
Depreciation and amortization | 55,028 | 60,152 | 75,084 | ||||||||
Curtailment gain | (1,699 | ) | — | (1,607 | ) | ||||||
Gain from foundry arrangement | — | — | (3,034 | ) | |||||||
Realized gain on sales of investments in privately-held companies | (1,317 | ) | — | — | |||||||
Recovery of receivables from foundry supplier | — | (485 | ) | (600 | ) | ||||||
(Recovery) provision for doubtful accounts | (98 | ) | 4,054 | (22 | ) | ||||||
Asset impairment charges | — | 26,624 | 7,502 | ||||||||
Gains on sale of assets, net | (1,626 | ) | (4,364 | ) | (886 | ) | |||||
Deferred income taxes | 16,063 | 18,507 | (8,660 | ) | |||||||
Write-off of equipment deposit | — | 1,730 | — | ||||||||
Realized gain on short-term investments | — | (385 | ) | — | |||||||
Accretion of interest on long-term debt | 1,272 | 1,756 | 1,113 | ||||||||
Share-based compensation expense | 51,392 | 59,679 | 43,124 | ||||||||
Excess tax benefit on share-based compensation | (1,575 | ) | (1,601 | ) | (2,260 | ) | |||||
Other non-cash (gains) losses, net | (6,929 | ) | (6,881 | ) | (1,201 | ) | |||||
Changes in operating assets and liabilities, net of acquisitions | |||||||||||
Accounts receivable | 26,638 | (17,070 | ) | (18,171 | ) | ||||||
Inventories | 21,041 | 3,922 | 69,460 | ||||||||
Current and other assets | 9,090 | 1,253 | (14,050 | ) | |||||||
Trade accounts payable | (34,851 | ) | (332 | ) | (13,655 | ) | |||||
Accrued and other liabilities | (32,266 | ) | (10,161 | ) | 12,912 | ||||||
Income taxes payable | (10,940 | ) | 1,717 | (9,238 | ) | ||||||
Deferred income on shipments to distributors | (10,349 | ) | 6,465 | 13,368 | |||||||
Net cash provided by operating activities | 105,776 | 179,788 | 127,124 | ||||||||
Cash flows from investing activities | |||||||||||
Acquisitions of fixed assets | (28,752 | ) | (44,693 | ) | (35,117 | ) | |||||
Proceeds from sale of business | — | 3,219 | 5,092 | ||||||||
Proceeds from sale of assets | 21,191 | 73 | 3,100 | ||||||||
Proceeds from sales of investments in privately-held companies | 3,817 | — | — | ||||||||
Acquisition of businesses, net of cash acquired | — | (139,580 | ) | (25,852 | ) | ||||||
Acquisitions of intangible assets | (2,025 | ) | (3,341 | ) | (6,328 | ) | |||||
Sales or maturities of marketable securities | — | 3,071 | — | ||||||||
Net cash used in investing activities | (5,769 | ) | (181,251 | ) | (59,105 | ) | |||||
Cash flows from financing activities | |||||||||||
Proceeds from issuance of debt | — | 90,000 | — | ||||||||
Principal payments on debt and capital leases | (29,094 | ) | (16,353 | ) | (3,644 | ) | |||||
Debt issuance cost | — | — | (2,051 | ) | |||||||
Repurchases of common stock | (11,984 | ) | (130,383 | ) | (87,781 | ) | |||||
Payment of dividends | (50,238 | ) | — | — | |||||||
Proceeds from issuance of common stock | 13,974 | 13,538 | 22,948 | ||||||||
Tax payments related to shares withheld for vested restricted stock units | (20,284 | ) | (25,128 | ) | (20,315 | ) | |||||
Excess tax benefit on share-based compensation | 1,575 | 1,601 | 2,260 | ||||||||
Net cash used in financing activities | (96,051 | ) | (66,725 | ) | (88,583 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (641 | ) | (1,756 | ) | 4,075 | ||||||
Net increase (decrease) in cash and cash equivalents | 3,315 | (69,944 | ) | (16,489 | ) | ||||||
Cash and cash equivalents at beginning of the period | 206,937 | 276,881 | 293,370 | ||||||||
Cash and cash equivalents at end of the period | $ | 210,252 | $ | 206,937 | $ | 276,881 | |||||
Supplemental cash flow disclosures: | |||||||||||
Interest paid | $ | 1,346 | $ | 860 | $ | 912 | |||||
Income taxes paid (refund) | $ | 7,526 | $ | (7,300 | ) | $ | 13,761 |
Supplemental non-cash investing and financing activities disclosures: | |||||||||||
(Decrease) increase in accounts payable related to fixed assets purchases | $ | (3,194 | ) | $ | (1,393 | ) | $ | 4,825 | |||
Decrease in liabilities related to intangible assets purchases | $ | (2,025 | ) | $ | (3,341 | ) | $ | (6,328 | ) |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (loss) Income | Noncontrolling Interest | |||||||||||||||||||||||
Shares | Par Value | Retained Earnings | Total | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Balances, December 31, 2012 | 428,593 | $ | 429 | $ | 881,945 | $ | 6,412 | $ | 107,852 | $ | — | $ | 996,638 | |||||||||||||
Net loss | — | — | — | — | (22,055 | ) | — | (22,055 | ) | |||||||||||||||||
Other comprehensive loss | — | — | — | 6,385 | — | — | 6,385 | |||||||||||||||||||
Share-based compensation expense | — | — | 42,454 | — | — | — | 42,454 | |||||||||||||||||||
Equity related restructuring charges | — | — | 566 | — | — | — | 566 | |||||||||||||||||||
Tax benefit on share-based compensation expense | — | — | (913 | ) | — | — | — | (913 | ) | |||||||||||||||||
Exercise of stock options | 2,990 | 3 | 12,340 | — | — | — | 12,343 | |||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 1,920 | 2 | 10,603 | — | — | — | 10,605 | |||||||||||||||||||
Vested restricted stock units | 7,335 | 7 | (7 | ) | — | — | — | — | ||||||||||||||||||
Shares withheld for employee taxes related to vested restricted stock units | (3,256 | ) | (4 | ) | (20,311 | ) | — | — | — | (20,315 | ) | |||||||||||||||
Repurchase of common stock | (12,192 | ) | (12 | ) | (87,769 | ) | — | — | — | (87,781 | ) | |||||||||||||||
Balances, December 31, 2013 | 425,390 | 425 | 838,908 | 12,797 | 85,797 | — | 937,927 | |||||||||||||||||||
Net income attributable to Atmel Corporation | — | — | — | — | 32,195 | — | 32,195 | |||||||||||||||||||
Other comprehensive income | — | — | — | (20,979 | ) | — | — | (20,979 | ) | |||||||||||||||||
Noncontrolling interest | — | — | — | — | — | 3,013 | 3,013 | |||||||||||||||||||
Share-based compensation expense | — | — | 59,816 | — | — | — | 59,816 | |||||||||||||||||||
Exercise of stock options | 603 | — | 2,362 | — | — | — | 2,362 | |||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 1,695 | 2 | 11,166 | — | — | — | 11,168 | |||||||||||||||||||
Vested restricted stock units | 7,972 | 8 | — | — | — | — | 8 | |||||||||||||||||||
Shares withheld for employee taxes related to vested restricted stock units | (3,211 | ) | (3 | ) | (25,125 | ) | — | — | — | (25,128 | ) | |||||||||||||||
Repurchase of common stock | (16,271 | ) | (16 | ) | (130,367 | ) | — | — | — | (130,383 | ) | |||||||||||||||
Balances, December 31, 2014 | 416,178 | 416 | 756,760 | (8,182 | ) | 117,992 | 3,013 | 869,999 | ||||||||||||||||||
Net income attributable to Atmel Corporation | — | — | — | — | 26,891 | — | 26,891 | |||||||||||||||||||
Other comprehensive loss | — | — | — | (3,473 | ) | — | — | (3,473 | ) | |||||||||||||||||
Noncontrolling interest | — | — | — | — | — | 11 | 11 | |||||||||||||||||||
Cash dividend | — | — | — | — | (50,238 | ) | — | (50,238 | ) | |||||||||||||||||
Share-based compensation expense | — | — | 51,788 | — | — | — | 51,788 | |||||||||||||||||||
Exercise of stock options | 709 | — | 2,874 | — | — | — | 2,874 | |||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 1,634 | 2 | 11,098 | — | — | — | 11,100 | |||||||||||||||||||
Vested restricted stock units | 6,723 | 7 | (7 | ) | — | — | — | — | ||||||||||||||||||
Shares withheld for employee taxes related to vested restricted stock units | (2,485 | ) | (3 | ) | (20,281 | ) | — | — | — | (20,284 | ) | |||||||||||||||
Repurchase of common stock | (1,449 | ) | (1 | ) | (11,983 | ) | — | — | — | (11,984 | ) | |||||||||||||||
Balances, December 31, 2015 | 421,310 | $ | 421 | $ | 790,249 | $ | (11,655 | ) | $ | 94,645 | $ | 3,024 | $ | 876,684 |
Building and improvements | 10 | to | 20 years |
Machinery, equipment and software | 3 | to | 7 years |
Furniture and fixtures | 5 years |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Raw materials and purchased parts | $ | 9,739 | $ | 12,633 | |||
Work-in-progress | 161,356 | 192,206 | |||||
Finished goods | 86,281 | 73,403 | |||||
$ | 257,376 | $ | 278,242 |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Income tax receivable | $ | 6,723 | $ | 8,559 | |||
Prepaid income taxes | 5,989 | 7,258 | |||||
Value-added tax receivable | 2,617 | 2,375 | |||||
Deferred income tax assets | — | 45,518 | |||||
Other | 19,970 | 25,391 | |||||
$ | 35,299 | $ | 89,101 |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Deferred income tax assets | $ | 157,929 | $ | 117,278 | |||
Investments in privately-held companies | 1,663 | 4,466 | |||||
Auction-rate securities | 1,066 | 1,066 | |||||
Other | 43,018 | 43,538 | |||||
$ | 203,676 | $ | 166,348 |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Accrued salaries and benefits and other employee related | $ | 33,061 | $ | 49,402 | |||
Accrued vacation | 16,469 | 18,154 | |||||
Accrued restructuring, current portion | 7,886 | 14,607 | |||||
Income taxes payable | 6,713 | 4,346 | |||||
Warranty accruals and accrued returns | 5,258 | 5,397 | |||||
Royalties and licenses | 5,060 | 8,332 | |||||
Other | 38,565 | 39,458 | |||||
$ | 113,012 | $ | 139,696 |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Income taxes payable | $ | 49,965 | $ | 48,547 | |||
Accrued pension liability | 38,884 | 49,278 | |||||
Accrued restructuring, net of current portion | 726 | 5,118 | |||||
Other | 27,967 | 20,727 | |||||
$ | 117,542 | $ | 123,670 |
July 31, 2014 | |||
(in thousands) | |||
Current assets | $ | 12,287 | |
Fixed assets | 983 | ||
Intangible assets acquired: | |||
Distributor and end-customer relationships | 3,910 | ||
Backlog | 1,670 | ||
Non-compete agreements | 1,000 | ||
Trade name | 300 | ||
Developed technology | 10,910 | ||
In-process technology | 13,690 | ||
Goodwill | 86,123 | ||
Deferred tax assets | 17,863 | ||
Other long-term assets | 945 | ||
Current liabilities | (5,216 | ) | |
Other liabilities assumed | (1,406 | ) | |
$ | 143,059 |
December 31, 2015 | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
(in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash | |||||||||||||||
Money market funds | $ | 1,290 | $ | 1,290 | $ | — | $ | — | |||||||
Other assets | |||||||||||||||
Auction-rate security | 1,066 | — | — | 1,066 | |||||||||||
Investment funds - Deferred compensation plan assets | |||||||||||||||
Institutional money market funds | 1,914 | 1,914 | — | — | |||||||||||
Fixed income | 1,141 | 1,141 | — | — | |||||||||||
Marketable equity securities | 3,792 | 3,792 | — | — | |||||||||||
Total investment funds - Deferred compensation plan | 6,847 | 6,847 | — | — | |||||||||||
Total other assets | 7,913 | 6,847 | — | 1,066 | |||||||||||
Total | $ | 9,203 | $ | 8,137 | $ | — | $ | 1,066 |
December 31, 2014 | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
(in thousands) | |||||||||||||||
Assets | |||||||||||||||
Cash | |||||||||||||||
Money market funds | $ | 1,267 | $ | 1,267 | $ | — | $ | — | |||||||
Other assets | |||||||||||||||
Auction-rate security | 1,066 | — | — | 1,066 | |||||||||||
Investment funds - Deferred compensation plan assets | |||||||||||||||
Institutional money market funds | 2,039 | 2,039 | — | — | |||||||||||
Fixed income | 984 | 984 | — | — | |||||||||||
Marketable equity securities | 3,576 | 3,576 | — | — | |||||||||||
Total investment funds - Deferred compensation plan | 6,599 | 6,599 | — | — | |||||||||||
Total other assets | 7,665 | 6,599 | — | 1,066 | |||||||||||
Total | $ | 8,932 | $ | 7,866 | $ | — | $ | 1,066 |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Land | $ | 7,456 | $ | 11,370 | |||
Buildings and improvements | 464,918 | 516,643 | |||||
Machinery and equipment | 934,174 | 934,951 | |||||
Furniture and fixtures | 17,889 | 18,620 | |||||
Construction-in-progress | 6,963 | 9,800 | |||||
1,431,400 | 1,491,384 | ||||||
Less: Accumulated depreciation and amortization | (1,300,246 | ) | (1,333,103 | ) | |||
$ | 131,154 | $ | 158,281 |
Micro- Controllers | Multi-Market and Other | Total | |||||||||
(in thousands) | |||||||||||
Balance at December 31, 2013 | $ | 107,400 | $ | 840 | $ | 108,240 | |||||
Goodwill recorded in connection with acquisition | 86,123 | — | 86,123 | ||||||||
Effects of foreign currency translation | (3,041 | ) | (234 | ) | (3,275 | ) | |||||
Balance at December 31, 2014 | 190,482 | 606 | 191,088 | ||||||||
Effects of foreign currency translation | (2,682 | ) | (169 | ) | (2,851 | ) | |||||
Balance at December 31, 2015 | $ | 187,800 | $ | 437 | $ | 188,237 |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Licensed technology | $ | 25,328 | $ | 25,228 | |||
Accumulated amortization | (22,227 | ) | (20,333 | ) | |||
Total technology licenses | 3,101 | 4,895 | |||||
Customer relationships | 29,597 | 29,597 | |||||
Developed technologies | 33,308 | 33,308 | |||||
Non-compete agreements, NRE contract, in process technology, tradename and backlog | 20,624 | 20,624 | |||||
Acquisition-related intangible assets | 83,529 | 83,529 | |||||
Accumulated amortization | (47,687 | ) | (38,138 | ) | |||
Total acquisition-related intangible assets | 35,842 | 45,391 | |||||
Total intangible assets, net | $ | 38,943 | $ | 50,286 |
Years Ending December 31: | Technology Licenses | Acquisition-Related Intangible Assets | Total | ||||||||
(in thousands) | |||||||||||
2016 | $ | 1,598 | $ | 6,829 | $ | 8,427 | |||||
2017 | 1,396 | 5,966 | 7,362 | ||||||||
2018 | 107 | 4,829 | 4,936 | ||||||||
2019 | — | 1,568 | 1,568 | ||||||||
2020 | — | 438 | 438 | ||||||||
Thereafter | — | 16,212 | 16,212 | ||||||||
Total future amortization | $ | 3,101 | $ | 35,842 | $ | 38,943 |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
Employee stock options | $ | 44 | $ | 186 | $ | 1,644 | |||||
Employee stock purchase plan | 2,381 | 2,803 | 2,858 | ||||||||
Restricted stock units | 49,365 | 56,842 | 37,952 | ||||||||
Net amounts (capitalized in) released from inventory | (398 | ) | (152 | ) | 670 | ||||||
$ | 51,392 | $ | 59,679 | $ | 43,124 |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
Cost of revenue | $ | 5,900 | $ | 6,356 | $ | 5,889 | |||||
Research and development | 14,172 | 17,569 | 14,852 | ||||||||
Selling, general and administrative | 31,320 | 35,754 | 22,383 | ||||||||
Total share-based compensation expense, before income taxes | 51,392 | 59,679 | 43,124 | ||||||||
Tax benefit | (11,144 | ) | (11,423 | ) | (7,707 | ) | |||||
Total share-based compensation expense, net of income taxes | $ | 40,248 | $ | 48,256 | $ | 35,417 |
Outstanding Options | Weighted- | |||||||||||
Exercise | Average | |||||||||||
Available for Grant | Number of Options | Price per Share | Exercise Price per Share | |||||||||
(in thousands, except for per share data) | ||||||||||||
Balances, December 31, 2012 | 6,148 | 6,675 | $1.68-$10.01 | $ | 4.33 | |||||||
Additional shares approved for issuance | 25,000 | |||||||||||
Restricted stock units issued | (7,922 | ) | — | — | — | |||||||
Plan adjustment for restricted stock units issued | (4,563 | ) | — | — | — | |||||||
Restricted stock units cancelled | 2,084 | — | — | — | ||||||||
Plan adjustment for restricted stock units cancelled | 1,388 | — | — | — | ||||||||
2014 Plan - Performance-based restricted stock units issued | (1,048 | ) | — | — | — | |||||||
Plan adjustment for 2014 performance-based restricted stock units issued | (597 | ) | — | — | — | |||||||
2011 Plan - Performance-based restricted stock units cancelled | 422 | — | — | — | ||||||||
Plan adjustment for 2011 performance-based restricted stock units cancelled | 257 | — | — | — | ||||||||
Options cancelled/expired/forfeited | 76 | (76 | ) | $1.77-$7.12 | $ | 4.95 | ||||||
Options exercised | — | (2,964 | ) | $1.68-$7.12 | $ | 4.12 | ||||||
Balances, December 31, 2013 | 21,245 | 3,635 | $2.13-$10.01 | $ | 4.50 | |||||||
Restricted stock units issued | (6,675 | ) | — | — | — | |||||||
Plan adjustment for restricted stock units issued | (3,805 | ) | — | — | — | |||||||
Restricted stock units cancelled | 1,696 | — | — | — | ||||||||
Plan adjustment for restricted stock units cancelled | 1,029 | — | — | — | ||||||||
Performance-based restricted stock units issued | (2,673 | ) | — | — | — | |||||||
Plan adjustment for performance-based restricted stock units issued | (1,523 | ) | — | — | — | |||||||
Performance-based restricted stock units cancelled | 2,682 | — | — | — | ||||||||
Plan adjustment for performance-based restricted stock units cancelled | 1,631 | — | — | — | ||||||||
Options cancelled/expired/forfeited | 4 | (4 | ) | $4.92-$7.25 | $ | 5.63 | ||||||
Options exercised | — | (572 | ) | $2.65-$7.25 | $ | 4.09 | ||||||
Balances, December 31, 2014 | 13,611 | 3,059 | $2.13-$10.01 | $ | 4.57 | |||||||
Restricted stock units issued | (5,216 | ) | — | — | — | |||||||
Plan adjustment for restricted stock units issued | (2,973 | ) | — | — | — | |||||||
Restricted stock units cancelled | 1,386 | — | — | — | ||||||||
Plan adjustment for restricted stock units cancelled | 799 | — | — | — | ||||||||
Performance-based restricted stock units issued | (170 | ) | — | — | — | |||||||
Plan adjustment for performance-based restricted stock units issued | (97 | ) | — | — | — | |||||||
Performance-based restricted stock units cancelled | 248 | — | — | — | ||||||||
Plan adjustment for performance-based restricted stock units cancelled | 141 | — | — | — | ||||||||
Options cancelled/expired/forfeited | 5 | (5 | ) | $3.26-$6.28 | $ | 4.30 | ||||||
Options exercised | — | (687 | ) | $2.13-$6.28 | $ | 4.16 | ||||||
Balances, December 31, 2015 | 7,734 | 2,367 | $3.24-$10.01 | $ | 4.70 | |||||||
Options vested and expected to vest at December 31, 2015 | 2,367 | $3.24-$10.01 | $ | 4.70 | ||||||||
Options exercisable at December 31, 2015 | 2,365 | $3.24-$10.01 | $ | 4.70 |
Number of Units | Weighted-Average Grant Date Fair Value | |||||
(in thousands, except for per share data) | ||||||
Balances, December 31, 2012 | 21,944 | $ | 8.71 | |||
Restricted stock units issued | 7,922 | $ | 7.36 | |||
Restricted stock units vested | (7,271 | ) | $ | 7.30 | ||
Restricted stock units cancelled | (2,084 | ) | $ | 8.25 | ||
Performance-based restricted stock units issued | 1,048 | $ | 7.33 | |||
Performance-based restricted stock units cancelled | (422 | ) | $ | 13.50 | ||
Balances, December 31, 2013 | 21,137 | $ | 8.84 | |||
Restricted stock units issued | 6,675 | $ | 8.44 | |||
Restricted stock units vested | (7,943 | ) | $ | 7.80 | ||
Restricted stock units cancelled | (1,696 | ) | $ | 7.93 | ||
Performance-based restricted stock units issued | 2,673 | $ | 7.68 | |||
Performance-based restricted stock units cancelled | (2,683 | ) | $ | 13.30 | ||
Balances, December 31, 2014 | 18,163 | $ | 8.40 | |||
Restricted stock units issued | 5,216 | $ | 8.23 | |||
Restricted stock units vested | (6,644 | ) | $ | 8.25 | ||
Restricted stock units cancelled | (1,386 | ) | $ | 7.82 | ||
Performance-based restricted stock units issued | 170 | $ | 8.33 | |||
Performance-based restricted stock units cancelled | (248 | ) | $ | 8.13 | ||
Balances, December 31, 2015 | 15,271 | $ | 8.46 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Price ($) | Number Outstanding | Weighted- Average Remaining Contractual Term (years) | Weighted- Average Exercise Price ($) | Number Exercisable | Weighted- Average Exercise Price ($) | |||||||||||
(in thousands, except for per share prices and life data) | ||||||||||||||||
3.24-3.24 | 301 | 2.29 | $ | 3.24 | 301 | $ | 3.24 | |||||||||
3.27-4.20 | 290 | 2.69 | 3.86 | 290 | 3.86 | |||||||||||
4.23-4.37 | 256 | 1.34 | 4.26 | 254 | 4.26 | |||||||||||
4.43-4.70 | 229 | 3.65 | 4.43 | 229 | 4.43 | |||||||||||
4.74-4.74 | 388 | 1.62 | 4.74 | 388 | 4.74 | |||||||||||
4.89-4.92 | 295 | 1.00 | 4.90 | 295 | 4.90 | |||||||||||
4.99-5.73 | 293 | 1.88 | 5.55 | 293 | 5.55 | |||||||||||
5.96-6.11 | 131 | 2.69 | 6.08 | 131 | 6.08 | |||||||||||
6.28-6.28 | 170 | 0.96 | 6.28 | 170 | 6.28 | |||||||||||
10.01-10.01 | 14 | 4.87 | 10.01 | 14 | 10.01 | |||||||||||
2,367 | 2,365 |
Years Ended | ||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | ||||||
Risk-free interest rate | 0.16 | % | 0.07 | % | 0.10 | % | ||
Expected life (years) | 0.50 | 0.50 | 0.50 | |||||
Expected volatility | 33 | % | 31 | % | 44 | % | ||
Expected dividend yield | 1.92 | % | — | — |
Foreign currency translation adjustments | Defined benefit pension plans | Change in unrealized (loss) gain on investments | Total | ||||||||||||
(in thousands) | |||||||||||||||
Balance as of December 31, 2013 | $ | 14,952 | $ | (2,153 | ) | $ | (2 | ) | $ | 12,797 | |||||
Other comprehensive loss | (13,899 | ) | (6,309 | ) | (771 | ) | (20,979 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | |||||||||||
Net decrease in other comprehensive loss | (13,899 | ) | (6,309 | ) | (771 | ) | (20,979 | ) | |||||||
Balance as of December 31, 2014 | $ | 1,053 | $ | (8,462 | ) | $ | (773 | ) | $ | (8,182 | ) | ||||
Other comprehensive (loss) gain | (11,342 | ) | 7,096 | (1,364 | ) | (5,610 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 2,137 | 2,137 | |||||||||||
Net (decrease) increase in other comprehensive loss | (11,342 | ) | 7,096 | 773 | (3,473 | ) | |||||||||
Balance as of December 31, 2015 | $ | (10,289 | ) | $ | (1,366 | ) | $ | — | $ | (11,655 | ) |
Years Ending December 31: | Operating Leases | ||
(in thousands) | |||
2016 | $ | 10,939 | |
2017 | 8,530 | ||
2018 | 7,199 | ||
2019 | 7,263 | ||
2020 | 6,836 | ||
Thereafter | 11,606 | ||
$ | 52,373 |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(In thousands) | |||||||||||
Balance at beginning of period | $ | 3,945 | $ | 3,686 | $ | 4,832 | |||||
Accrual for warranties during the period, net | 3,639 | 3,884 | 2,203 | ||||||||
Actual costs incurred | (3,760 | ) | (3,625 | ) | (3,349 | ) | |||||
Balance at end of period | $ | 3,824 | $ | 3,945 | $ | 3,686 |
Years Ended | ||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | ||||||||||
(in thousands) | ||||||||||||
U.S. | $ | 23,235 | $ | 3,375 | $ | 25,648 | ||||||
Foreign | 35,060 | 53,851 | (26,161 | ) | ||||||||
Income (loss) before income taxes | $ | 58,295 | $ | 57,226 | $ | (513 | ) |
Years Ended | ||||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | ||||||||||||
(in thousands) | ||||||||||||||
Federal | Current | $ | 3,854 | $ | (4,739 | ) | $ | 4,805 | ||||||
Deferred | 15,806 | 10,013 | (10,220 | ) | ||||||||||
State | Current | 230 | 241 | 35 | ||||||||||
Deferred | (355 | ) | 2,522 | (124 | ) | |||||||||
Foreign | Current | 11,246 | 8,009 | 25,362 | ||||||||||
Deferred | 612 | 5,972 | 1,684 | |||||||||||
Provision for income taxes | $ | 31,393 | $ | 22,018 | $ | 21,542 |
Years Ended | |||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||
U.S. Federal statutory income tax rate | 35.00 | % | 35.00 | % | 35.00 | % | |||
State tax | (1.41 | ) | 2.85 | 3.56 | |||||
Effect of foreign operations | 16.49 | 2.13 | (3,979.63 | ) | |||||
Recognition of tax credits | (4.28 | ) | (5.27 | ) | 875.54 | ||||
Change of valuation allowance | (0.32 | ) | (2.14 | ) | (295.93 | ) | |||
Transaction costs | 6.98 | 3.86 | — | ||||||
Audit settlements and IRS refunds | (0.26 | ) | 1.06 | (828.85 | ) | ||||
Other, net (1) | 1.64 | 0.96 | (4.15 | ) | |||||
Effective tax provision rate | 53.84 | % | 38.45 | % | (4,194.46 | )% |
(1) | Other included items such as US permanent differences, return to provision true up, unrecognized tax benefit, and nondeductible stock compensation. |
December 31, 2015 | December 31, 2014 | |||||||
(in thousands) | ||||||||
Deferred income tax assets: | ||||||||
Net operating losses | $ | 31,402 | $ | 37,634 | ||||
Research and development, foreign tax and other tax credits | 71,381 | 55,408 | ||||||
Accrued liabilities | 26,534 | 37,380 | ||||||
Fixed assets | 49,067 | 54,348 | ||||||
Intangible assets | 10,103 | 11,977 | ||||||
Deferred income | 10,648 | 10,319 | ||||||
Share-based compensation | 2,590 | 3,291 | ||||||
Unrealized foreign exchange translation | 3,854 | 2,424 | ||||||
Other | 1,307 | 2,363 | ||||||
Total deferred income tax assets | 206,886 | 215,144 | ||||||
Deferred income tax liabilities: | ||||||||
Foreign losses subject to recapture | (11,510 | ) | (12,164 | ) | ||||
Total deferred tax liabilities | (11,510 | ) | (12,164 | ) | ||||
Less valuation allowance | (37,579 | ) | (40,372 | ) | ||||
Net deferred income tax assets | $ | 157,797 | $ | 162,608 | ||||
Reported as: | ||||||||
Current deferred tax assets(1) | $ | — | $ | 45,518 | ||||
Current deferred tax liabilities(2) | — | (182 | ) | |||||
Non-current deferred tax assets(3) | 157,929 | 117,278 | ||||||
Non-current deferred tax liabilities(4) | (132 | ) | (6 | ) | ||||
Net deferred income tax assets | $ | 157,797 | $ | 162,608 |
(1) | Included within Prepaids and other current assets on the consolidated balance sheets. |
(2) | Included within Accrued and other liabilities on the consolidated balance sheets. |
(3) | Included within Other assets on the consolidated balance sheets. |
(4) | Included within Other long-term liabilities on the consolidated balance sheets. |
Years Ended | ||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | ||||||||||
(in thousands) | ||||||||||||
Beginning gross unrecognized tax benefits | $ | 122,825 | $ | 119,506 | $ | 72,692 | ||||||
Increases in balances related to tax positions taken during the current periods | 1,647 | 8,181 | 13,201 | |||||||||
Increases in balances related to tax positions taken during the prior periods | 316 | 7,453 | 58,253 | |||||||||
Decreases in balances related to tax positions taken during the prior periods | (6,644 | ) | (9,537 | ) | (13,836 | ) | ||||||
Lapse of statute of limitation | (516 | ) | (2,418 | ) | (7,152 | ) | ||||||
Settlements and effective settlements | — | (360 | ) | (3,652 | ) | |||||||
Ending gross unrecognized tax benefits | $ | 117,628 | $ | 122,825 | $ | 119,506 |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
Service costs | $ | 1,352 | $ | 1,526 | $ | 1,795 | |||||
Interest costs | 1,394 | 1,509 | 1,430 | ||||||||
Amortization of actuarial loss | 772 | 47 | 376 | ||||||||
Settlement and other related gain | — | — | (59 | ) | |||||||
Curtailment gain | (1,699 | ) | — | (1,607 | ) | ||||||
Net pension period cost | $ | 1,819 | $ | 3,082 | $ | 1,935 |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
Projected benefit obligation at beginning of the year | $ | 49,836 | $ | 38,916 | |||
Service costs | 1,352 | 1,526 | |||||
Interest costs | 1,394 | 1,509 | |||||
Curtailment gain | (1,699 | ) | — | ||||
Actuarial (gains) losses | (3,354 | ) | 8,753 | ||||
Benefits paid | (705 | ) | (483 | ) | |||
Foreign currency exchange rate changes | (7,225 | ) | (385 | ) | |||
Projected benefit obligation at end of the year | $ | 39,599 | $ | 49,836 | |||
Accumulated benefit obligation at end of the year | 35,470 | 46,092 |
Years Ended | |||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||
Assumed discount rate | 1.93%-2.57% | 1.49-2.15% | 3.1-4.0% | ||
Assumed compensation rate of increase | 2.9%-3.0% | 2.9-3.0% | 2.4-3.0% |
Years Ending December 31: | |||
(in thousands) | |||
2016 | $ | 673 | |
2017 | 550 | ||
2018 | 847 | ||
2019 | 1,064 | ||
2020 | 1,056 | ||
2021 through 2025 | 8,472 | ||
$ | 12,662 |
• | Microcontroller. This segment includes Atmel's general purpose microcontroller and microprocessor families, AVR® 8-bit and 32-bit products, Atmel®| SMARTTM ARM® based products, Atmel's 8051 8-bit products, designated commercial wireless products, including low power radio and SOC products that meet Bluetooth, Bluetooth Low Energy, Zigbee and Wi-Fi specifications, Atmel's maXTouch capacitive touch product families and optimized products for smart energy, touch button, and mobile sensor hub and LED lighting applications. |
• | Nonvolatile Memory. This segment includes electrically erasable programmable read-only memory ("EEPROM") and erasable programmable read-only memory (“EPROM”) devices, secure cryptographic products, and other advanced security solutions. |
• | Automotive. This segment includes devices for automotive electronics, including products using radio frequency technology. |
• | Multi-Market and Other. This segment includes application specific and standard products for aerospace applications and legacy products. On April 16, 2015, the Company completed the sale of its XSense touch sensor manufacturing assets and separately licensed to UniPixel, Inc. its XSense intellectual property assets, which the Company retained. See Note 14 for further information. |
Micro- Controllers | Nonvolatile Memory | Automotive | Multi-market and Other | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||
Net revenue from external customers | $ | 807,924 | $ | 150,780 | $ | 138,728 | $ | 75,024 | $ | 1,172,456 | |||||||||
Segment income from operations | 67,631 | 25,039 | 20,425 | 23,531 | 136,626 | ||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||
Net revenue from external customers | $ | 994,069 | $ | 166,768 | $ | 153,221 | $ | 99,276 | $ | 1,413,334 | |||||||||
Segment income from operations | 116,417 | 35,868 | 23,096 | 3,260 | 178,641 | ||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||
Net revenue from external customers | $ | 958,471 | $ | 153,363 | $ | 159,774 | $ | 114,839 | $ | 1,386,447 | |||||||||
Segment income from operations | 67,847 | 24,383 | 13,685 | 17,441 | 123,356 |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
Total segment income from operations | $ | 136,626 | $ | 178,641 | $ | 123,356 | |||||
Unallocated amounts: | |||||||||||
Stock-based compensation expense | (51,392 | ) | (59,679 | ) | (43,124 | ) | |||||
Loss from manufacturing facility damage and shutdown | — | (3,485 | ) | (2,205 | ) | ||||||
Acquisition-related charges | (12,526 | ) | (13,767 | ) | (5,534 | ) | |||||
French building underutilization and other | (1,522 | ) | (2,957 | ) | (945 | ) | |||||
Restructuring charges | (4,595 | ) | (13,882 | ) | (50,026 | ) | |||||
(Loss) gain related to foundry arrangements | (5,825 | ) | 2,583 | (7,424 | ) | ||||||
Recovery of receivables due from foundry supplier | — | 485 | 600 | ||||||||
Fair value adjustments to inventory from businesses acquired | — | (2,322 | ) | — | |||||||
Impairment of XSense assets | — | (26,624 | ) | — | |||||||
Writeoff of uncollectible receivable | — | (4,126 | ) | — | |||||||
Settlement charges | — | — | (21,600 | ) | |||||||
Merger expenses and other | (11,631 | ) | — | — | |||||||
Gain on sale of assets | 1,626 | 4,364 | 4,430 | ||||||||
Consolidated income (loss) from operations | $ | 50,761 | $ | 59,231 | $ | (2,472 | ) |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
China, including Hong Kong | $ | 368,930 | $ | 435,958 | $ | 417,617 | |||||
United States | 204,197 | 211,532 | 192,878 | ||||||||
Germany | 161,386 | 204,257 | 199,298 | ||||||||
South Korea | 78,991 | 119,886 | 142,476 | ||||||||
Japan | 49,398 | 37,066 | 41,533 | ||||||||
Singapore | 33,515 | 55,536 | 44,957 | ||||||||
Taiwan | 31,205 | 60,632 | 51,830 | ||||||||
France | 13,903 | 15,499 | 26,270 | ||||||||
Rest of Europe | 115,238 | 139,458 | 128,841 | ||||||||
Rest of Asia-Pacific | 90,341 | 102,643 | 120,290 | ||||||||
Rest of the World | 25,352 | 30,867 | 20,457 | ||||||||
Total net revenue | $ | 1,172,456 | $ | 1,413,334 | $ | 1,386,447 |
December 31, 2015 | December 31, 2014 | ||||||
(in thousands) | |||||||
United States | $ | 80,500 | $ | 92,466 | |||
Philippines | 53,891 | 56,094 | |||||
France | 10,364 | 13,714 | |||||
Germany | 7,354 | 17,920 | |||||
Rest of Asia-Pacific | 15,036 | 20,237 | |||||
Rest of Europe | 4,566 | 5,854 | |||||
Total | $ | 171,711 | $ | 206,285 |
April 16, 2015 | |||
(in thousands) | |||
Total consideration | $ | (16,700 | ) |
Fair value of patent license agreement | 13,123 | ||
Selling and other costs | 457 | ||
Net assets transferred | 961 | ||
Gain on sale of assets | $ | (2,159 | ) |
Q2'10 | Q2'12 | Q1'13 | Q3'13 | Q3'14 | Q4'14 | Q1'15 | Q2'15 | Total 2015 Activity | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2015 - Restructuring Accrual | $ | 281 | $ | 19 | $ | 3,988 | $ | 9 | $ | 920 | $ | 14,508 | $ | — | $ | — | $ | 19,725 | |||||||||||||||||
Charges (credits) - Employee termination costs, net of change in estimate | — | (210 | ) | (634 | ) | (9 | ) | 2,389 | 788 | 2,707 | 943 | 5,974 | |||||||||||||||||||||||
Payments- Employee termination costs | — | 213 | (1,524 | ) | — | (3,249 | ) | (7,234 | ) | (2,705 | ) | (652 | ) | (15,151 | ) | ||||||||||||||||||||
Foreign exchange loss (gain) | — | — | 226 | — | (60 | ) | (2,041 | ) | (3 | ) | (58 | ) | (1,936 | ) | |||||||||||||||||||||
Balance at December 31, 2015 - Restructuring Accrual | $ | 281 | $ | 22 | $ | 2,056 | $ | — | $ | — | $ | 6,021 | $ | (1 | ) | $ | 233 | $ | 8,612 | ||||||||||||||||
Non-cash credit (see discussion below) | $ | — | $ | — | $ | — | $ | — | $ | (471 | ) | $ | (720 | ) | $ | — | $ | (188 | ) | $ | (1,379 | ) |
Q2'10 | Q2'12 | Q1'13 | Q3'13 | Q3'14 | Q4'14 | Total 2014 Activity | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Balance at January 1, 2014 - Restructuring Accrual | $ | 281 | $ | 897 | $ | 22,949 | $ | 1,314 | $ | — | $ | — | $ | 25,441 | |||||||||||||
Charges (credits) - Employee termination costs, net of change in estimate | — | — | (2,077 | ) | (292 | ) | 1,397 | 14,854 | 13,882 | ||||||||||||||||||
Non-cash - Other | — | — | — | — | (321 | ) | — | (321 | ) | ||||||||||||||||||
Payments - Employee termination costs | — | (878 | ) | (16,773 | ) | (1,018 | ) | (55 | ) | (346 | ) | (19,070 | ) | ||||||||||||||
Foreign exchange (gain) loss | — | — | (111 | ) | 5 | (101 | ) | — | (207 | ) | |||||||||||||||||
Balance at December 31, 2014 - Restructuring Accrual | $ | 281 | $ | 19 | $ | 3,988 | $ | 9 | $ | 920 | $ | 14,508 | $ | 19,725 |
Q2'10 | Q2'12 | Q4'12 | Q1'13 | Q3'13 | Total 2013 Activity | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance at January 1, 2013 - Restructuring Accrual | $ | 439 | $ | 7,418 | $ | 8,365 | $ | — | $ | — | $ | 16,222 | |||||||||||
Charges (credits) - Employee termination costs, net of change in estimate | — | (13 | ) | (1,720 | ) | 44,084 | 2,043 | 44,394 | |||||||||||||||
Charges - Other | — | — | — | 453 | — | 453 | |||||||||||||||||
Payments - Employee termination costs | (158 | ) | (6,508 | ) | (6,400 | ) | (21,873 | ) | (723 | ) | (35,662 | ) | |||||||||||
Payments - Other | — | — | (229 | ) | (453 | ) | — | (682 | ) | ||||||||||||||
Foreign exchange (gain) loss | — | — | (16 | ) | 738 | (6 | ) | 716 | |||||||||||||||
Balance at December 31, 2013 - Restructuring Accrual | $ | 281 | $ | 897 | $ | — | $ | 22,949 | $ | 1,314 | $ | 25,441 | |||||||||||
Non-cash charges (see discussion below) | $ | — | $ | — | $ | 68 | $ | 5,111 | $ | — | $ | 5,179 |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands, except per share data) | |||||||||||
Net income (loss) attributable to Atmel | $ | 26,891 | $ | 32,195 | $ | (22,055 | ) | ||||
Weighted-average shares - basic | 418,759 | 419,103 | 427,460 | ||||||||
Dilutive effect of incremental shares and share equivalents | 1,528 | 1,807 | — | ||||||||
Weighted-average shares - diluted | 420,287 | 420,910 | 427,460 | ||||||||
Net income (loss) per share: | |||||||||||
Basic | |||||||||||
Net income (loss) per share attributable to Atmel common stockholders - basic | $ | 0.06 | $ | 0.08 | $ | (0.05 | ) | ||||
Diluted | |||||||||||
Net income (loss) per share attributable to Atmel common stockholders - diluted | $ | 0.06 | $ | 0.08 | $ | (0.05 | ) |
Years Ended | ||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | ||||||
(in thousands) | ||||||||
Employee stock options and restricted stock units outstanding | 6,049 | 6,879 | 11,860 |
Years Ended | |||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
(in thousands) | |||||||||||
Interest and other income (expense) | $ | 1,117 | $ | (199 | ) | $ | 1,911 | ||||
Interest expense | (2,681 | ) | (2,618 | ) | (2,208 | ) | |||||
Foreign exchange transaction gains | 9,098 | 812 | 2,256 | ||||||||
Total | $ | 7,534 | $ | (2,005 | ) | $ | 1,959 |
Balance at Beginning of Year | Charges (Credits) to Expense | Deductions- Write-offs | Balance at End of Year | ||||||||||||
(in thousands) | |||||||||||||||
Allowance for doubtful accounts receivable: | |||||||||||||||
Year ended December 31, 2015 | $ | 5,945 | $ | (98 | ) | $ | 14 | $ | 5,861 | ||||||
Year ended December 31, 2014 | $ | 1,926 | $ | 4,054 | $ | (35 | ) | $ | 5,945 | ||||||
Year ended December 31, 2013 | $ | 11,005 | $ | (22 | ) | $ | (9,057 | ) | $ | 1,926 | |||||
Valuation/Allowance for deferred tax assets: | |||||||||||||||
Year ended December 31, 2015 | $ | 40,372 | $ | 570 | $ | (3,363 | ) | $ | 37,579 | ||||||
Year ended December 31, 2014 | $ | 41,321 | $ | 3,240 | $ | (4,189 | ) | $ | 40,372 | ||||||
Year ended December 31, 2013 | $ | 41,271 | $ | 3,402 | $ | (3,352 | ) | $ | 41,321 |
Year Ended December 31, 2015 (1) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(in thousands, except for per share data) | ||||||||||||||||
Net revenue | $ | 318,288 | $ | 306,353 | $ | 286,533 | $ | 261,282 | ||||||||
Gross profit | $ | 147,297 | $ | 141,314 | $ | 133,356 | $ | 121,060 | ||||||||
Net income (loss) attributable to Atmel | $ | 16,495 | $ | 6,312 | $ | (614 | ) | $ | 4,698 | |||||||
Basic net income (loss) per share attributable to Atmel: | ||||||||||||||||
Net income (loss) per share | $ | 0.04 | $ | 0.02 | $ | — | $ | 0.01 | ||||||||
Weighted-average shares used in basic net income (loss) per share calculations | 417,038 | 417,861 | 419,293 | 420,798 | ||||||||||||
Diluted net income (loss) per share attributable to Atmel: | ||||||||||||||||
Net income (loss) per share | $ | 0.04 | $ | 0.02 | $ | — | $ | 0.01 | ||||||||
Weighted-average shares used in diluted net income (loss) per share calculations | 418,462 | 419,158 | 419,293 | 422,227 | ||||||||||||
Cash dividends declared and paid per share | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | — |
Year Ended December 31, 2014 (2) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(in thousands, except for per share data) | ||||||||||||||||
Net revenue | $ | 337,361 | $ | 355,534 | $ | 374,485 | $ | 345,954 | ||||||||
Gross profit | $ | 139,990 | $ | 161,238 | $ | 176,843 | $ | 140,559 | ||||||||
Net income (loss) attributable to Atmel | $ | 2,166 | $ | 19,236 | $ | 17,250 | $ | (6,457 | ) | |||||||
Basic net income (loss) per share attributable to Atmel: | ||||||||||||||||
Net income (loss) per share | $ | 0.01 | $ | 0.05 | $ | 0.04 | $ | (0.02 | ) | |||||||
Weighted-average shares used in basic net income (loss) per share calculations | 425,390 | 421,090 | 418,954 | 417,797 | ||||||||||||
Diluted net income (loss) per share attributable to Atmel: | ||||||||||||||||
Net income (loss) per share attributable to Atmel | $ | 0.01 | $ | 0.05 | $ | 0.04 | $ | (0.02 | ) | |||||||
Weighted-average shares used in diluted net income (loss) per share calculations | 427,276 | 422,834 | 420,964 | 417,797 |
(1) | The Company recorded restructuring (credits) charges of $(0.9) million, $(0.6) million, $4.9 million and $1.1 million in the quarters ended December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively. The Company recorded acquisition-related charges of $1.9 million, $2.4 million, $3.8 million and $4.4 million in the quarters ended December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015, respectively. |
(2) | The Company recorded asset impairment charge of $26.6 million in the quarter ended December 31, 2014. The Company recorded restructuring charges (credits) of $14.8 million, $0.8 million, $(1.6) million and $(0.2) million in the quarters ended December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively. The Company recorded acquisition-related charges of $3.5 million, $7.2 million, $1.5 million and $1.6 million in the quarters ended December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively. |
Name | Age | Position |
Steven Laub | 57 | President, Chief Executive Officer |
Tsung-Ching Wu | 65 | Executive Vice President, Office of the President and Director |
Steve Skaggs | 53 | Senior Vice President, Chief Financial Officer |
Scott Wornow | 53 | Senior Vice President, Chief Legal Officer and Secretary |
Reza Kazerounian | 58 | Senior Vice President and General Manager, Microcontroller Business Unit |
Robert Valiton | 52 | Senior Vice President and General Manager, Automotive, Memory and Secure Products Business Units Segments |
Hugo De La Torre | 55 | Vice President, Chief Accounting Officer |
Name of Director | Age | Director since | Position with Atmel | Independent | Other U.S. Public Company boards | Committee Memberships | ||
AC | CC | GN | ||||||
Steven Laub | 57 | 2006 | President and Chief Executive Officer and Director | No | — | |||
Tsung-Ching Wu | 65 | 1985 | Executive Vice President, Office of the President and Director | No | — | |||
David Sugishita | 68 | 2004 | Director and Non-executive chairman of the board | Yes | 1 | C,F | M | M |
Papken Der Torossian | 77 | 2007 | Director | Yes | 1 | M | M | |
Jack L. Saltich | 72 | 2007 | Director | Yes | 1 | M | C | |
Charles Carinalli | 67 | 2008 | Director | Yes | 2 | M | M | |
Dr. Edward Ross | 74 | 2008 | Director | Yes | 1 | C | ||
Audit committee | Compensation Committee | Corporate Governance and Nominating Committee |
David Sugishita (Chair) | Jack L. Saltich (Chair) | Dr. Edward Ross (Chair) |
Charles Carinalli | Charles Carinalli | Papken Der Torossian |
Jack L. Saltich | Papken Der Torossian | David Sugishita |
David Sugishita |
• | link total compensation with the achievement of both Atmel’s strategic objectives (financial and non-financial) and individual performance goals; and |
Steven Laub | President and Chief Executive Officer |
Steven Skaggs | Senior Vice President and Chief Financial Officer |
Reza Kazerounian | Senior Vice President and General Manager, Microcontroller Business Unit |
Robert Valiton | Senior Vice President and General Manager, Automotive, Memory and Secure Products Business Units |
Tsung-Ching Wu | Executive Vice President, Office of the President |
Compensation Element | What the Element Rewards | Purpose and Key Features | ||
Base Salary | Individual performance, level of experience, expected future performance and contributions to Atmel. | Provides competitive level of fixed compensation determined by the market value of the position, with actual salaries determined based on the facts and circumstances of each executive officer and each individual position. | ||
Annual Cash Incentive Bonus | Achievement of Committee-established corporate, business-level and individual performance objectives (for 2015, focused on revenue and non-GAAP operating profit, as well as individual contributions and management objectives). Our annual cash incentive bonus plans typically use different, yet complementary, performance metrics than our long-term performance-based equity incentive plans. | Motivate participants to achieve (i) corporate financial performance objectives during two semi-annual performance periods (for 2015, these periods ran from January 1, 2015 to June 30, 2015 and from July 1, 2015 to December 31, 2015) and for the full-year performance period (for 2015, this period ran from January 1, 2015 to December 31, 2015), (ii) individual management objectives reviewed and approved by the Committee, and (iii) for some participants, business unit objectives tied to a business unit's financial and operating performance, or sales revenue objectives. Performance levels are generally established to incent our management to achieve or exceed performance objectives. Payouts for 2015 could range from 0% to 100% for achievement of all “target” objectives and up to 200% for achievement of all “maximum” objectives (with payouts scaled between all those levels). | ||
Long-Term Equity Incentives | Achievement of corporate and individual performance objectives designed to enhance long-term stockholder interests and attract, retain, motivate and reward employees over extended periods for achieving important Company objectives. Vesting requirements promote retention of highly valued members of management, including our NEOs. | Annual awards of time-based RSUs that vest over four years and provide an at-risk variable pay opportunity. Because the ultimate value of these equity awards is directly related to the price of Atmel’s common stock, and the awards are subject to vesting, they serve to focus management on the creation and maintenance of long-term stockholder value. Awards of performance-based RSUs under our performance-based plans help align management performance with the interests of our stockholders. |
Base Salary | Base Salary | |||
for 2015 | for 2014 | |||
Name and Title | ($) | ($) | ||
Steven Laub | 755,000 | 755,000 | ||
President and Chief Executive Officer | ||||
Steve Skaggs | 450,000 | 450,000 | ||
Senior Vice President and Chief Financial Officer | ||||
Reza Kazerounian | 475,000 | 475,000 | ||
Senior Vice President, General Manager | ||||
Robert Valiton | 420,000 | 420,000 | ||
Senior Vice President, General Manager | ||||
Tsung-Ching Wu | 509,200 | 509,200 | ||
Executive Vice President, Office of the President |
Executive | Performance Goals ** |
CEO and Corporate Executives | 40% Corporate Revenue 35% Corporate Non-GAAP Operating Profit 25% Individual Management Performance Objectives* |
Business Unit Executives | 50% Business Unit Performance • 27% Business Unit Revenue• 23% Business Unit Non-GAAP Operating Profit25% Corporate Performance • 27% “Core Product” Revenue• 23%Non-GAAP Operating Profit25% Individual Management Performance Objectives* |
Sales Executives | 75% Corporate Revenue 25% Individual Management Performance Objectives* |
* | Individual performance objectives included strategic, profitability, operational, human resources and teamwork-oriented objectives (except for our CEO, for whom the objectives included investor objectives rather than teamwork-oriented objectives). |
** | No bonuses were payable if the business unit did not achieve an annual non-GAAP operating profit and, with respect to revenue objectives, satisfy a minimum revenue hurdle based on “core products.” |
Performance Component | Payout* |
Revenue | Minimum = 50% of target payout Target = 100% of target payout Maximum = 200% of target payout |
Non-GAAP Operating Profit % | Minimum = 50% of target payout Target = 100% of target payout Maximum = 200% of target payout |
Individual Performance | Minimum = 0% of target payout Target = 100% of target payout Maximum = 300% of target payout |
Performance Period | Target Revenue Objective* | Target non-GAAP Operating Profit Objective* | ||||
January 1, 2015 to December 31, 2015 | 1,409.0 million | 17.2% | ||||
January 1, 2015 to June 30, 2015 | 652.3 million | 13.8% | ||||
July 1, 2015 to December 31, 2015 | 596.0 million | 12.9% |
* | As adjusted in accordance with the Executive Incentive Plan. |
Performance Period | Actual Performance vs. Target Revenue Goal | Actual Performance vs. Target non-GAAP Operating Profit Goal | ||||||
January 1, 2015 to December 31, 2015 | 83.1% | 69.3% | ||||||
January 1, 2015 to June 30, 2015 | 95.5% | 91.6% | ||||||
July 1, 2015 to December 31, 2015 | 91.9% | 86.1% |
Name | Fiscal 2015 | Fiscal 2015 | Fiscal 2015 | |
Target Executive | Target (Potential) | Actual Executive | ||
Incentive as % of | Executive Incentive | Incentive Payout | ||
Base Salary | ($) | ($) | ||
Steven Laub* | 160% | 1,208,000 | 604,000 | |
Steve Skaggs | 90% | 405,000 | 225,309 | |
Reza Kazerounian | 100% | 475,000 | 190,730 | |
Rob Valiton | 90% | 378,000 | 277,867 | |
Tsung-Ching Wu | 85% | 432,820 | 183,653 |
* | Mr. Laub’s incentive bonus for 2015 was established by the terms of his employment letter dated August 24, 2015, which provided for a 2015 incentive bonus equal to 50% of his target award. |
• | A review of the competitive assessment of Atmel’s senior executive compensation program performed by Radford, a business unit of Aon Hewitt (“Radford”); |
• | A review of Atmel’s short-term and long-term incentive plans, including the balance between short-term and long-term compensation and the relative percentages of performance and variable-based compensation, and of competitive incentive plan practices; and |
• | A review of the Committee’s processes and effectiveness. |
Name | Year | Salary | Bonus | Stock | Option | Non-Equity | All Other | |||||||||||
($) | ($) | Awards | Awards | Incentive Plan | Compensation | Total | ||||||||||||
($)(1) | ($) | Compensation | ($)(3) | ($)(4) | ||||||||||||||
($)(2) | ||||||||||||||||||
Steven Laub | 2015 | 740,481 | — | 0 | (6) | — | 604,000 | (7) | 23,350 | 1,367,831 | (8) | |||||||
President and Chief | 2014 | 737,577 | — | 5,247,485 | (9) | — | 966,400 | 23,074 | 6,974,536 | (10) | ||||||||
Executive Officer | 2013 | 755,000 | — | 5,174,095 | (11) | — | 1,000,224 | 24,388 | 6,953,707 | (12) | ||||||||
Steve Skaggs | 2015 | 450,000 | — | 1,189,885 | (6) | — | 225,309 | 120,083 | 1,985,277 | (8) | ||||||||
Senior Vice President and | 2014 | 444,462 | — | 1,311,865 | (9) | — | 352,553 | 113,803 | 2,222,682 | (10) | ||||||||
Chief Financial Officer | 2013 | 418,366 | — | 2,956,953 | (11) | — | 440,168 | 99,387 | 3,914,874 | (12) | ||||||||
Reza Kazerounian (5) | 2015 | 475,000 | — | 1,388,201 | (6) | — | 190,730 | 22,742 | 2,076,673 | (8) | ||||||||
Senior Vice President, | 2014 | 453,365 | — | 1,513,692 | (9) | — | 451,652 | 22,054 | 2,440,763 | (10) | ||||||||
General Manager | — | |||||||||||||||||
Robert Valiton | 2015 | 420,000 | — | 1,090,727 | (6) | — | 277,867 | 19,779 | 1,808,373 | (8) | ||||||||
Senior Vice President, | 2014 | 393,000 | — | 1,866,896 | (9) | — | 389,685 | 18,987 | 2,668,569 | (10) | ||||||||
General Manager | 2013 | 373,385 | — | 1,152,281 | (11) | — | 345,343 | 19,793 | 1,890,801 | (12) | ||||||||
Tsung-Ching Wu | 2015 | 509,200 | 2,250 | (13) | 694,096 | (6) | — | 183,653 | 32,627 | 1,421,826 | (8) | |||||||
Executive Vice President, | 2014 | 509,200 | 790 | (13) | 1,009,120 | (9) | — | 346,256 | 25,665 | 1,891,031 | (10) | |||||||
Office of the President | 2013 | 509,200 | 950 | (13) | 687,086 | (11) | — | 446,456 | 26,793 | 1,670,485 | (12) |
(1) | Stock awards consist of RSUs and performance-based RSUs. Amounts shown in this column do not reflect compensation actually received by the NEO. Instead, the dollar value of the awards shown in this column is the aggregate grant date fair value computed in accordance with the Financial Accounting Standards Board (“FASB”) ASC 718 for the years ended December 31, 2013, 2014 and 2015, excluding any estimate of future forfeitures related to service-based vesting conditions for RSUs. |
(2) | The amounts under Non-Equity Incentive Plan Compensation reflect bonuses paid pursuant to the executive incentive plans adopted by the Committee on (i) April 7, 2015 (the “2015 Executive Incentive Plan”), (ii) March 22, 2014 (the “2014 Executive Incentive Plan”), and (iii) May 10, 2013 (the “2013 Executive Incentive Plan”). Amounts paid under the 2015 Executive Incentive Plan, 2014 Executive Incentive Plan and the 2013 Executive Incentive Plan were paid or will be paid in cash in fiscal 2016, fiscal 2015 and fiscal 2014, respectively. |
(3) | The value and components of perquisites and other personal benefits for each of the NEOs for fiscal 2015 are set forth below in the “All Other Compensation for Fiscal Year 2015” table. |
(4) | Amounts shown in this column do not reflect compensation actually received by the NEO. Instead, the dollar value of the awards reflected as part of total compensation in this column is the aggregate grant date fair value computed in accordance with the FASB ASC 718 for the years ended December 31, 2013, 2014 and 2015, excluding any estimate of future forfeitures related to service-based vesting conditions for RSUs. See footnote (1). |
(5) | Mr. Kazerounian became an NEO of Atmel in 2014. |
(6) | Stock award consists of grants of annual time-based RSUs and PRSUs granted in August 2015. In August 2015, the Committee granted a target number of PRSUs to our NEOs, but did not establish performance criteria or maximum payout levels. Consequently, these awards are presented in the table as time-based RSU grants. The grant date fair values for these awards are calculated in accordance with footnote (1). These amounts do not necessarily correspond to the actual value that will be recognized by the NEOs, if any. |
(7) | On August 24, 2015, Mr. Laub agreed to a request from Atmel’s Board to extend his retirement date to facilitate the completion of the then-ongoing strategic evaluation process and entered into a letter agreement with the Company (the “Laub Agreement”). For fiscal year 2015, under the Laub Agreement, Mr. Laub is entitled to receive 50% of his target bonus under the 2015 Executive Incentive Plan. |
(8) | See footnote 6. |
(9) | Stock award consists of grants of annual time-based RSUs granted in August 2014 and performance-based RSUs granted in August 2014 and December 2014 under our 2015 Long-Term Performance-Based Incentive Plan (our "2015 Plan"). The grant date fair values for these awards are calculated in accordance with footnote (1). Although the performance |
(10) | Total compensation for 2014 includes grants of annual time-based RSUs granted in August 2014 and performance-based RSUs granted in August 2014 and December 2014 under our 2015 Plan. The grant date fair values for these awards are calculated in accordance with footnote (1). Although the performance period under our 2015 Plan ended on December 31, 2015 and, contingent upon, and immediately prior to, the occurrence of the closing of the Microchip transaction, our NEOs will be awarded 57% of the “target” level of shares granted to them under the 2015 Plan, with the remaining awards under the 2015 Plan being converted into time-based awards, the grant date fair value for the performance-based RSUs assumes achievement at the target level and a payout of the target number of shares. Assuming achievement at the maximum level and payout of the maximum number of shares, the maximum total compensation would be as follows: Mr. Laub $10,178,684; Mr. Skaggs $2,630,309; Mr. Kazerounian $2,914,748; Mr. Valiton $3,253,152; and Mr. Wu $2,206,225. |
(11) | Stock award consists of grants of annual time-based RSUs and performance-based RSUs granted under our 2014 Long-Term Performance-Based Incentive Plan (our “2014 Plan”). The grant date fair values for these awards are calculated in accordance with footnote (1). Although the performance period under our 2014 Plan ended on December 31, 2014 and, with the exception of one of our NEOs, our NEOs were awarded less than the “target” level of shares granted to them under the 2014 Plan, for the purposes of this table, the grant date fair value for the performance-based RSUs assumes achievement at the target level under our 2014 Plan and a payout of the target number of shares. |
Name | Health | Life | Short Term | Long Term | Company | Other | Total |
Insurance | Insurance | Disability | Disability | Match 401(k) | ($)(1) | ($) | |
($) | ($) | Insurance | Insurance | Contribution | |||
($) | ($) | ($) | |||||
Steven Laub | 12,940 | 1,020 | 151 | 337 | 4,000 | 4,902 | 23,350 |
Steve Skaggs | 12,640 | 918 | 151 | 337 | 4,000 | 102,037 | 120,083 |
Reza Kazerounian | 12,640 | 969 | 151 | 337 | 4,000 | 4,644 | 22,742 |
Robert Valiton | 12,310 | 797 | 151 | 337 | 4,000 | 2,183 | 19,779 |
Tsung-Ching Wu | 12,640 | 1,020 | 151 | 337 | 4,000 | 14,478 | 32,627 |
Estimated Possible Payouts Under Non-Equity Incentive Plans(1) | All Other Stock Awards | ||||||||||||
Name | Grant Date | Threshold | Target | Maximum | Number of Shares of Stock or Units | Grant Date Fair Value of Stock Awards | |||||||
($) | ($) | ($) | (#)(2) | ($)(3) | |||||||||
Steven Laub | — | 0 | 1,208,000 | 2,416,000 | — | — | |||||||
8/27/2015 | — | — | — | — | — | ||||||||
Steve Skaggs | — | 0 | 405,000 | 810,000 | — | — | |||||||
8/27/2015 | — | — | — | 147,263 | 1,189,885 | ||||||||
Reza Kazerounian | — | 0 | 475,000 | 950,000 | — | — | |||||||
8/27/2015 | — | — | — | 171,807 | 1,388,201 | ||||||||
Rob Valiton | — | 0 | 378,000 | 756,000 | — | — | |||||||
8/27/2015 | — | — | — | 134,991 | 1,090,727 | ||||||||
Tsung-Ching Wu | — | 0 | 432,820 | 865,640 | — | — | |||||||
8/27/2015 | — | — | — | 85,903 | 694,096 |
(1) | Reflects the minimum, target and maximum payment amounts established for our NEOs under our 2015 Executive Incentive Plan. The amounts achievable under the 2015 Executive Incentive Plan could range from zero (if the minimum level for financial performance and individual goals are not achieved) to a cap of 200% of the NEO’s individual bonus target. The actual payout was determined by the Committee by multiplying (a) the percentage completion of the executive’s goals by (b) the sum of the amounts calculated by applying the performance multipliers to the performance objectives. The Committee determined the actual amounts payable to our NEOs under the 2015 Executive Incentive Plan in February 2016 and these amounts are reflected in the “Non-Equity Incentive Plan Compensation” column of the “Summary Compensation Table.” For each NEO, these amounts will be paid as a cash bonus during 2016, as follows: |
Fiscal 2015 Bonus Awards ($) | ||||
Steven Laub * | $ | 604,000 | ||
Steve Skaggs | $ | 225,309 | ||
Reza Kazerounian | $ | 190,730 | ||
Robert Valiton | $ | 277,867 | ||
Tsung-Ching Wu | $ | 183,653 |
* | Mr. Laub’s incentive bonus for 2015 was established by the terms of his employment letter dated August 24, 2015, which provided for a 2015 incentive bonus equal to 50% of his target award. |
(2) | Reflects grants of annual time-based RSUs and PRSUs granted in August 2015. In August 2015, the Committee granted a target number of PRSUs to our NEOs, but did not establish performance criteria or maximum payout levels. Consequently, these awards are presented in the table as time-based RSU grants. |
(3) | Reflects the grant date fair value of each equity award computed in accordance with FASB ASC 718, excluding any estimate of future forfeitures related to service-based vesting conditions. These amounts do not necessarily correspond to the actual value that will be recognized by the NEOs, if any. |
Option Awards | Stock Awards | ||||||||||||||||
Grant | Number of Securities Underlying Unexercised Options (#) | Option Exercise Price | Option Expiration | Number of Shares or Units of Stock That Have Not Vested | Market Value of Shares or Units of Stock That Have Not Vested | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested | ||||||||||
Name | Date(1) | Exercisable | Unexercisable | ($) | Date | (#) | ($)(2) | (#)(3) | ($)(2)(4) | ||||||||
Steven Laub | 08/23/12 (5) | — | — | — | — | 152,531 | 1,313,292 | — | — | ||||||||
08/23/13 (5) | — | — | — | — | 200,295 | 1,724,540 | — | — | |||||||||
12/17/13 (6) | — | — | — | — | 61,928 | 533,200 | — | — | |||||||||
08/28/14 (5) | — | — | — | — | 147,165 | 1,267,091 | — | — | |||||||||
8/28/14 & 12/11/14 (3) | — | — | — | — | — | — | 397,537 | 3,422,794 | |||||||||
Steve Skaggs | 09/02/10 (7) | 54,168 | — | 6.11 | 9/2/2020 | — | — | — | — | ||||||||
09/02/10 (7) | 5,832 | — | 6.11 | 9/2/2020 | — | — | — | — | |||||||||
08/23/12 (5) | — | — | — | — | 22,237 | — | — | — | |||||||||
12/17/13 (6) | — | — | — | — | 10,579 | 91,085 | — | — | |||||||||
05/21/13 (5) | — | — | — | — | 93,750 | 807,188 | — | — | |||||||||
08/23/13 (5) | — | — | — | — | 45,638 | 392,943 | — | — | |||||||||
08/28/14 (5) | — | — | — | — | 70,348 | 605,696 | — | — | |||||||||
8/28/14 & 12/11/14 (3) | — | — | — | — | — | — | 50,574 | 435,442 | |||||||||
08/27/15 (5) | — | — | — | — | 92,040 | 792,464 | — | — | |||||||||
08/27/15 (8) | — | — | — | — | 49,087 | 422,639 | — | — | |||||||||
Reza Kazerounian | 03/29/13 (9) | — | — | — | — | 186,875 | 1,608,994 | — | — | ||||||||
08/23/13 (5) | — | — | — | — | 68,457 | 589,415 | — | — | |||||||||
12/17/13 (6) | — | — | — | — | 5,667 | 48,793 | — | — | |||||||||
08/28/14 (5) | — | — | — | — | 80,860 | 696,205 | — | — | |||||||||
8/28/14 & 12/11/14 (3) | — | — | — | — | — | — | 58,807 | 506,328 | |||||||||
08/27/15 (5) | — | — | — | — | 107,380 | 924,542 | — | — | |||||||||
08/27/15 (8) | — | — | — | — | 57,268 | 493,077 | — | — | |||||||||
Robert Valiton | 08/28/09 (7) | 2,645 | — | 4.23 | 5/14/2017 | — | — | — | — | ||||||||
08/28/09 (7) | 57,354 | — | 4.23 | 5/14/2017 | — | — | — | — | |||||||||
08/23/12 (5) | — | — | — | — | 29,381 | 252,970 | — | — | |||||||||
08/23/13 (5) | — | — | — | — | 51,343 | 442,063 | — | — | |||||||||
12/17/13 (6) | — | — | — | — | 16,956 | 145,991 | — | — | |||||||||
08/28/14 (5) | — | — | — | — | 99,727 | 858,649 | — | — | |||||||||
8/28/14 & 12/11/14 (3) | — | — | — | — | — | — | 72,529 | 624,475 | |||||||||
08/27/15 (5) | — | — | — | — | 84,370 | 726,426 | — | — | |||||||||
08/27/15 (8) | — | — | — | — | 44,996 | 387,416 | — | — | |||||||||
Tsung-Ching Wu | 09/06/06 (7) | 65,105 | — | 5.73 | 9/6/2016 | — | — | — | — | ||||||||
08/15/07 (7) | 257,537 | — | 4.74 | 8/15/2017 | — | — | — | — | |||||||||
08/15/08 (7) | 16,667 | — | 4.20 | 8/15/2018 | — | — | — | — | |||||||||
08/15/08 (7) | 83,333 | — | 4.20 | 8/15/2018 | — | — | — | — | |||||||||
09/15/09 (7) | 29,344 | — | 4.43 | 9/15/2019 | — | — | — | — | |||||||||
09/15/09 (7) | 128,213 | — | 4.43 | 9/15/2019 | — | — | — | — | |||||||||
08/23/12 (5) | — | — | — | — | 36,544 | 314,644 | — | — | |||||||||
08/23/13 (5) | — | — | — | — | 28,524 | 245,592 | — | — | |||||||||
12/17/13 (6) | — | — | — | — | 7,052 | 60,718 | — | — |
08/28/14 (5) | — | — | — | — | 53,906 | 464,131 | — | — | |||||||||
8/28/14 & 12/11/14 (3) | — | — | — | — | — | — | 39,204 | 337,546 | |||||||||
08/27/15 (5) | — | — | — | — | 53,690 | 462,271 | — | — | |||||||||
08/27/15 (8) | — | — | — | — | 28,634 | 246,539 | — | — |
(1) | In each case, vesting is subject to the NEO being a service provider, as defined in the 2005 Stock Plan, on the applicable vesting date, or as otherwise provided under any applicable employment agreement or change of control plan. |
(2) | In accordance with SEC rule, the market value of unvested RSUs and performance-based RSUs is calculated based on the closing price of our common stock on the NASDAQ Global Select Market of $8.61 per share on December 31, 2015. This per share amount exceeds the aggregate per share cash and stock consideration of $8.15 that holders of Atmel common stock will receive in the Microchip merger and, consequently, the market value of unvested RSUs and performance-based RSUs set forth in the table above reflects a higher value than the NEO is likely to realize on such awards. |
(3) | Awards on August 28, 2014 and December 11, 2014 reflect share amounts at target that NEOs may receive under the 2015 Plan although the performance period under our 2015 Plan ended on December 31, 2015 and, contingent upon, and immediately prior to, the occurrence of the closing of the Microchip transaction, our NEOs will be awarded 57% of the “target” level of shares granted to them under the 2015 Plan, with the remaining awards under the 2015 Plan being converted into time-based awards. |
(4) | Calculates value for performance-based RSUs granted on August 28, 2014 and December 11, 2014 under our 2015 Plan based on achievement at the target level and a payout of the target number of shares although the performance period under our 2015 Plan ended on December 31, 2015 and, contingent upon, and immediately prior to, the occurrence of the closing of the Microchip transaction, our NEOs will be awarded 57% of the “target” level of shares granted to them under the 2015 Plan, with the remaining awards under the 2015 Plan being converted into time-based awards. Assuming achievement at the maximum level under the 2015 Plan and payout of the maximum number of shares, the maximum values for the awards granted on August 28, 2014 and December 11, 2014 be as follows: Mr. Laub $6,845,587; Mr. Skaggs $870,884; Mr. Kazerounian $1,012,657; Mr. Valiton $1,248,949; and Mr. Wu $675,093. These amounts do not necessarily correspond to the actual value that will be recognized by the NEOs, if any. |
(5) | These RSUs vest 6.25% per quarter until fully vested. |
(6) | Awards on December 17, 2013 reflect performance-based RSUs granted under our 2014 Plan that were credited to each NEO based upon the achievement for each NEO under the 2014 Plan. These RSUs vest 1/3 in the first quarter of 2015, 1/3, on a quarterly basis, in 2015, and 1/3 on a quarterly basis, in 2016. |
(7) | These options are fully vested. |
(8) | In August 2015, the Committee granted a target number of PRSUs to our NEOs, but did not establish performance criteria or maximum payout levels. Concurrent with the closing of the Microchip merger, these awards would be converted into time-based restricted stock units. |
(9) | This RSU vests 25% on February 15, 2014 and then 6.25% per quarter until fully vested. |
Option Awards | Stock Awards | ||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($)(1) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($)(2)(3) | |||||||||
Steven Laub | — | — | 576,446 | 4,773,902 | |||||||||
Steve Skaggs | — | — | 181,253 | 1,497,365 | |||||||||
Reza Kazerounian | — | — | 236,508 | 1,950,684 | |||||||||
Robert Valiton | — | — | 160,551 | 1,329,241 | |||||||||
Tsung-Ching Wu | — | — | 122,629 | 1,013,199 |
(1) | Market value of underlying shares on date of exercise based on the closing price of our common stock on the NASDAQ Global Select Market on the dates of exercise, minus the exercise price. |
(2) | Market value of shares on date of vesting based on the closing price of our common stock on the NASDAQ Global Select Market on the dates of vesting, provided that if the date or dates of vesting do not fall on a trading day then the market value of shares is based on the average of the closing price of our common stock on the NASDAQ Global Select Market on the immediately following and preceding trading days. |
(3) | Does not indicate shares were actually sold by the NEO. |
Estimated Payments and Benefits(1) | |||
($) | |||
Type of Benefit | Termination not in Connection with a Change of Control | Change of Control with Continued Employment | Change of Control without Continued Employment |
Annual, Variable Incentive Bonus | 604,000 | — | 604,000 |
RSU Vesting Acceleration (2) | — | — | 3,292,705 |
Performance-based RSU Vesting Acceleration | 1,950,992 | (3) | 2,447,297 (3) |
Total Benefits (4) | 2,554,992 | — | 6,344,002 (3) |
(1) | Payments and benefits are estimated assuming that the triggering event took place on December 31, 2015, and the price per share of Atmel’s common stock is the closing price on the NASDAQ Global Select Market as of that date ($8.61). The occurrence of a triggering event on another date, or at different stock prices, would likely produce different results. This per share amount exceeds the aggregate per share cash and stock consideration of $8.15 that holders of Atmel common |
(2) | Reflects the aggregate market value of unvested RSUs (other than PRSUs) that would accelerate. Aggregate market value for RSUs has been determined as the product of (i) $8.61, multiplied by (ii) the number of shares underlying unvested RSUs at December 31, 2015. |
(3) | Excludes the value, estimated in accordance with footnote (2), of the actual number of 2015 PRSUs that were deemed to be credited and vest subject to the closing of the Microchip transaction immediately prior to the effective time of such transaction. The value of such 2015 PRSUs for Mr. Laub, calculated in accordance with footnote (2), is $1,950,992. |
(4) | Under the 2005 Stock Plan, in the event of a merger of Atmel into another corporation or the sale of substantially all of the assets of Atmel, each outstanding equity award is required to be assumed, or an equivalent option or right substituted, by the successor corporation. If the successor corporation refuses to assume or substitute for the award, the participant will fully vest in, and, where applicable, have the right to exercise, all of his or her outstanding options and equity awards, including shares that would not otherwise be vested or exercisable. Assuming a successor corporation had refused to assume or substitute for Mr. Laub’s outstanding equity awards, and assuming the date of the triggering event was December 31, 2015, the estimated value of such accelerated equity awards, calculated in accordance with footnote (2), would be $11,683,710. |
• | In the event of a termination of employment without cause or due to death or disability that does not occur within a “change of control determination period,” an Eligible Participant will be entitled to receive: |
◦ | A lump sum payment in cash equal to one hundred percent (100%) of the Eligible Participant’s annual base salary, as in effect at the time of termination; |
◦ | A lump sum payment in cash equal to the Eligible Participant’s target incentive compensation for the year of termination, pro-rated to the date of termination (plus an additional amount equal to the Eligible Participant’s target incentive compensation if such termination occurs during a sunset period between September 1, 2015 and August 31, 2016); |
◦ | In the case of death or disability only, one hundred percent (100%) vesting of unvested equity awards outstanding on the date of death or disability, other than performance-based RSU awards or other equity compensation awards that vest based on achievement of express performance goals, which performance goals have not, as of the date of death or disability, been achieved (except to the extent the performance plan governing, or terms of, those performance-based awards otherwise provides for, and permits, acceleration of those performance-based awards irrespective of whether all applicable performance goals have, or have not, been achieved on the date of the death or disability); and |
◦ | Twelve (12) months Company-paid COBRA coverage; and |
◦ | Transitional outplacement benefits in accordance with the policies and guidelines of Atmel, as in effect immediately prior to the change of control. |
• | In the event of a termination of employment without cause, a resignation for good reason or a termination of employment due to death or disability, in each case within a “change of control determination period,” an Eligible Participant will be entitled to receive: |
◦ | A lump sum payment in cash equal to one hundred percent (100%) of the Eligible Participant’s annual base salary, as in effect at the time of termination; |
◦ | A lump sum payment in cash equal to one hundred percent (100%) of the Eligible Participant’s target incentive compensation for the year of termination; |
◦ | A lump sum payment in cash equal to the Eligible Participant’s target incentive compensation for the year of termination, pro-rated to the date of termination; |
◦ | One hundred percent (100%) vesting acceleration of unvested equity awards outstanding on the later of the date of termination or the change of control, other than performance-based RSU awards or other equity compensation awards that vest based on achievement of express performance goals, which performance goals have not, as of the later of the date of his or her termination or change of control, been achieved (except to the extent the performance plan governing, or terms of, those performance-based awards otherwise provide for, and permit, acceleration of those performance-based awards irrespective of whether all applicable performance goals have, or have not, been achieved on the date of the termination or change of control); |
◦ | Twelve (12) months Company-paid COBRA coverage; and |
◦ | Transitional outplacement benefits in accordance with the policies and guidelines of Atmel, as in effect immediately prior to the change of control. |
Estimated Payments and Benefits (1) | |||||
Involuntary Termination Other Than for Cause or Termination Due to Death or Disability | Involuntary Termination Other Than for Cause, Termination Due to Death or Disability or Termination for Good Reason | ||||
Name | Type of Benefit | Change in Control with Continued Employment | Not in Connection with a Change in Control | In Connection with a Change in Control | |
Skaggs | Salary | — | 450,000 | 450,000 | |
Annual, Variable Incentive Bonuses | — | 810,000 | 810,000 | ||
COC Plan Vesting Acceleration (2) | — | 3,926,158 (4)(5) | 3,926,158 (4) | ||
Continued Coverage of Employee Benefits (3) | — | 18,936 | 18,936 | ||
Total Benefits (6) | — | 5,205,094 (4) | 5,205,094 (4) | ||
Kazerounian | Salary | — | 475,000 | 475,000 | |
Annual, Variable Incentive Bonuses | — | 950,000 | 950,000 | ||
COC Plan Vesting Acceleration (2) | — | 5,085,075 (4)(5) | 5,085,075 (4) | ||
Continued Coverage of Employee Benefits (3) | — | 18,936 | 18,936 | ||
Total Benefits (6) | — | 6,529,011 (4) | 6,529,011 (4) | ||
Valiton | Salary | — | 420,000 | 420,000 | |
Annual, Variable Incentive Bonuses | — | 756,000 | 756,000 | ||
COC Plan Vesting Acceleration (2) | — | 3,706,514 (4)(5) | 3,706,514 (4) | ||
Continued Coverage of Employee Benefits (3) | — | 17,952 | 17,952 | ||
Total Benefits (6) | — | 4,900,466 (4) | 4,900,466 (4) | ||
Wu | Salary | — | 509,200 | 509,200 | |
Annual, Variable Incentive Bonuses | — | 865,640 | 865,640 | ||
COC Plan Vesting Acceleration (2) | — | 2,276,585 (4)(5) | 2,276,585 (4) | ||
Continued Coverage of Employee Benefits (3) | — | 11,506 | 11,506 | ||
Total Benefits (6) | — | 3,662,931 (4) | 3,662,931 (4) |
(1) | Payments and benefits are estimated assuming that the triggering event took place on December 31, 2015, and the price per share of Atmel’s common stock is the closing price on the NASDAQ Global Select Market as of that date ($8.61). The payments and benefits reflected in the table assume no material payments are made for transitional outplacement services. The occurrence of a triggering event on another date, or at different stock prices, would likely produce different results. This per share amount exceeds the aggregate per share cash and stock consideration of $8.15 that holders of Atmel common stock will receive in the Microchip merger and, consequently, the market value of unvested RSUs and performance-based RSUs set forth in the table above reflects a higher value than our NEOs are likely to realize on such awards. |
(2) | Reflects the aggregate market value of unvested RSUs and PRSUs that would accelerate. Aggregate market value for RSUs and PRSUs has been determined as the product of (i) $8.61, multiplied by (ii) the number of shares underlying unvested RSUs and PRSUs that would accelerate, as applicable, at December 31, 2015. |
(3) | Assumes continued coverage of health benefits at the same level as provided for 2015. |
(4) | Excludes the value, estimated in accordance with footnote (2), of the actual number of 2015 PRSUs that were deemed to be credited and vest subject to the closing of the Microchip transaction immediately prior to the effective time of such transaction. The value of such 2015 PRSUs, calculated in accordance with footnote (2), would be as follows: Mr. Skaggs $248,202; Mr. Kazerounian $288,607; Mr. Valiton $355,951; and Mr. Wu $192,401. |
(5) | Assumes termination is due to death or disability. Under the CoC Plan, in the event of a termination that does not occur within a “change of control determination period,” unvested option grants, RSUs and performance-based shares granted |
(6) | Under the 2005 Stock Plan, in the event of a merger of Atmel into another corporation or the sale of substantially all of the assets of Atmel, each outstanding equity award is required to be assumed, or an equivalent option or right substituted, by the successor corporation. If the successor corporation refuses to assume or substitute for the award, the participant will fully vest in, and, where applicable, have the right to exercise, all of his or her outstanding options and equity awards, including shares that would not otherwise be vested or exercisable. Assuming a successor corporation had refused to assume or substitute for our NEO’s outstanding equity awards, and assuming the date of the triggering event was December 31, 2015, the estimated value of such accelerated equity awards would be as follows: Mr. Skaggs $4,174,360; Mr. Kazerounian $5,373,682; Mr. Valiton $4,062,465; and Mr. Wu $2,468,986. |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($)(1)(2) | Total ($) | ||||||
Charles Carinalli | 133,000 | 195,046 | 328,046 | ||||||
Papken Der Torossian | 122,000 | 195,046 | 317,046 | ||||||
Dr. Edward Ross | 118,000 | 195,046 | 313,046 | ||||||
Jack L. Saltich | 146,000 | 195,046 | 341,046 | ||||||
David Sugishita | 211,500 | 195,046 | 406,546 |
(1) | Amounts shown do not reflect compensation actually received by the director. Instead the dollar value of these awards is the aggregate grant date fair value computed in accordance with FASB ASC 718, excluding any estimate of future forfeitures related to service-based vesting conditions. |
(2) | As of December 31, 2015, the aggregate number of shares underlying options and RSUs outstanding for each of our non-employee directors was as follows: |
Name | Aggregate Number of Shares Underlying Options | Aggregate Number of Shares Underlying RSUs | ||||||
Charles Carinalli | 49,000 | 22,064 | ||||||
Papken Der Torossian | 111,500 | 22,064 | ||||||
Dr. Edward Ross | 64,000 | 22,064 | ||||||
Jack L. Saltich | 41,500 | 22,064 | ||||||
David Sugishita | 9,625 | 22,064 |
Beneficial Owner(1) | Common Stock Beneficially Owned(2) | Approximate Percent Beneficially Owned(2) |
T. Rowe Price Associates, Inc.(3) | 34,526,548 | 8.18% |
Janus Capital Management LLC(4) | 31,084,075 | 7.36% |
BlackRock, Inc.(5) | 28,414,924 | 6.73% |
Vanguard Group, Inc.(6) | 28,134,695 | 6.66% |
Steven Laub(7) | 2,200,951 | * |
Steve Skaggs(8) | 505,097 | * |
Reza Kazerounian(9) | 336,197 | * |
Rob Valiton(10) | 433,911 | * |
Tsung-Ching Wu(11) | 9,291,247 | 2.20% |
David Sugishita(12) | 119,567 | * |
Charles Carinalli(13) | 201,943 | * |
Dr. Edward Ross(14) | 201,943 | * |
Papken Der Torossian(15) | 302,643 | * |
Jack L. Saltich(16) | 175,117 | * |
All current directors and executive officers as a group (12 persons)(17) | 14,147,288 | 3.34% |
(1) | Unless otherwise indicated, the address of each beneficial owner is c/o Atmel Corporation, 1600 Technology Drive, San Jose, CA 95110. |
(2) | Based on 422,182,986 shares outstanding on February 16, 2016. Beneficial ownership is determined in accordance with SEC rules and generally includes voting or investment power with respect to the securities. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of Atmel’s common stock subject to options and Atmel Units held by that person that will be exercisable/vested within 60 days after February 16, 2016, are deemed outstanding. Such shares, however, are not deemed outstanding for the purpose of computing the percentage ownership of any other person. Assumes that the Merger will not be completed on or before April 16, 2016. |
(3) | Based on a Schedule 13G, Amendment No. 6 filed with the SEC on February 11, 2016, T. Rowe Price Associates, Inc. (“Price Associates”), reported having sole voting power over 9,781,448 shares and sole dispositive power over 34,526,548 shares. The address of Price Associates is 100 E. Pratt Street, Baltimore, Maryland 21202. These securities are owned by various individual and institutional investors for which Price Associates serves as investment advisor with power to direct investments and/or sole power to vote the securities. For purposes of the reporting requirements of the Exchange Act, Price Associates is deemed to be a beneficial owner of such securities; however, Price Associates expressly disclaims that it is, in fact, the beneficial owner of such securities. |
(4) | Based on a Schedule 13G, Amendment No. 7 filed with the SEC on February 16, 2016, Janus Capital Management LLC (“Janus”), reported having sole voting and dispositive power over 31,068,575 shares. The address of Janus is 151 Detroit Street, Denver, Colorado 80206. |
(5) | Based on a Schedule 13G, Amendment No. 3 filed with the SEC on February 10, 2016, BlackRock, Inc. (“Blackrock”), reported having sole voting power over 27,040,278 shares and sole dispositive power over 28,414,924 shares. The address of BlackRock is 40 East 52nd Street, New York, NY 10022. |
(6) | Based on a Schedule 13G, Amendment No. 2 filed with the SEC on February 10, 2016, Vanguard Group, Inc. (“Vanguard”), reported having sole voting power over 308,973 shares, sole dispositive power over 27,828,622 shares and shared dispositive power over 306,073 shares. The address of Vanguard is 100 Vanguard Blvd., Malvern, PA 19355. |
(7) | Includes 2,200,951 shares owned directly. No shares are issuable under stock options exercisable within 60 days after February 16, 2016. |
(8) | Includes 445,097 shares owned directly. Also includes 60,000 shares issuable under stock options exercisable within 60 days after February 16, 2016. |
(9) | Includes 336,197 shares owned directly. No shares are issuable under stock options exercisable within 60 days after February 16, 2016. |
(10) | Includes 373,912 shares owned directly. Also includes 59,999 shares issuable under stock options exercisable within 60 days after February 16, 2016. |
(11) | Includes 1,808,976 shares owned directly, 6,644,902 shares held in trust, of which Mr. Wu and his wife are the trustees, and 257,170 shares held in trust for Mr. Wu’s children, of which Mr. Wu and his wife are the trustees. Also includes 580,199 shares issuable under stock options exercisable within 60 days after February 16, 2016. |
(12) | Includes 109,942 shares owned directly. Also includes 9,625 shares issuable under stock options exercisable within 60 days after February 16, 2016. |
(13) | Includes 93,776 share owned directly, and 59,167 shares held in trust, of which Mr. Carinalli and his wife are the trustees. Also includes 49,000 shares issuable under stock options exercisable within 60 days after February 16, 2016. |
(14) | Includes 137,943 shares owned directly. Also includes 64,000 shares issuable under stock options exercisable within 60 days after February 16, 2016. |
(15) | Includes 105,942 shares owned directly, 79,201 shares held in trust, of which Mr. Der Torossian is the trustee, and 6,000 shares held in Mr. Der Torossian’s IRA. Also includes 111,500 shares issuable under stock options exercisable within 60 days after February 16, 2016. |
(16) | Includes 126,617 shares owned directly, and 7,000 shares held in trust, of which Mr. Saltich and his wife are the trustees. Also includes 41,500 shares issuable under stock options exercisable within 60 days after February 16, 2016. |
(17) | Includes 975,823 shares issuable under stock options exercisable within 60 days after February 16, 2016. |
Plan Category | (a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (#) | (b) Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights ($) | (c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (#) |
Equity compensation plans approved by security holders | 17,638 (1)(2) | $ 4.6956 (3) | 25,037 (4) |
Equity compensation plans not approved by security holders | |||
Total | 17,638 (1)(2) | $ 4.6956 | 25,037 |
(1) | Includes options to purchase shares outstanding under the 2005 Stock Plan. Excluded from the table are 0.4 million shares subject to equity awards that we assumed in December 2012 and 0.1 million shares subject to equity awards that we assumed in July 2014 in connection with past acquisitions and 0.6 million restricted stock units granted in August 2015 as performance-based RSUs for which the performance criteria had not been established as of December 31, 2015. We do not plan to issue additional equity under those assumed plans. |
(2) | Includes 15,271 RSUs granted under our 2005 Stock Plan that had not vested as of such date. |
(3) | This weighted-average exercise price does not include outstanding RSUs. |
(4) | Consists of 7,734 shares available for future issuance under our 2005 Stock Plan (for options, RSUs and performance-based RSUs) and 17,303 shares available for future issuance under our 2010 Employee Stock Purchase Plan. Pursuant |
2014 ($) | 2015 ($) | |||||
Audit fees(1) | 1,679,656 | 1,892,126 | ||||
Audit-related fees | — | 16,555 | ||||
Tax fees(2) | 184,800 | 372,000 | ||||
All other fees(3) | 84,500 | 350,000 | ||||
Total | 1,948,956 | 2,630,681 |
(1) | Audit fees represent fees for professional services provided in connection with the integrated audit of our financial statements and of our internal control over financial reporting, and the review of our quarterly financial statements and audit services provided in connection with other statutory or regulatory audits and filings. |
(2) | Tax fees consisted of fees for assistance with international tax planning and other tax compliance services for the United States and foreign jurisdictions. |
(3) | All other fees consisted of fees for financial due diligence services. |
ATMEL CORPORATION | ||
February 26, 2016 | By: | /s/ STEVEN LAUB |
Steven Laub President & Chief Executive Officer |
Signature | Title | ||||
s/ STEVEN LAUB | President & Chief Executive Officer (principal executive officer) | ||||
Steven Laub | |||||
/s/ STEVE SKAGGS | Senior Vice President & Chief Financial Officer (principal financial officer) | ||||
Steve Skaggs | |||||
/s/ HUGO DE LA TORRE | Vice President & Chief Accounting Officer (principal accounting officer) | ||||
Hugo De La Torre | |||||
/s/ TSUNG-CHING WU | Director | ||||
Tsung-Ching Wu | |||||
/s/ DR. EDWARD ROSS | Director | ||||
Dr. Edward Ross | |||||
/s/ DAVID SUGISHITA | Director | ||||
David Sugishita | |||||
/s/ PAPKEN DER TOROSSIAN | Director | ||||
Papken Der Torossian | |||||
/s/ JACK L. SALTICH | Director | ||||
Jack L. Saltich | |||||
/s/ CHARLES CARINALLI | Director | ||||
Charles Carinalli |
2.1 | Agreement and Plan of Merger, dated as of September 19, 2015, by and among Dialog Semiconductor Plc, Avengers Acquisition Corporation and Atmel Corporation (which is incorporated herein by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on September 21, 2015). |
2.2 | Amendment No. 1 to Agreement and Plan of Merger, dated as of September 29, 2015, by and among Dialog Semiconductor Plc, Avengers Acquisition Corporation and Atmel Corporation (which is incorporated herein by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on September 30, 2015). |
2.3 | Agreement and Plan of Merger, dated as of January 19, 2016, by and among Microchip Technology Incorporated, Hero Acquisition Corporation and Atmel Corporation (which is incorporated herein by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on January 20, 2016). |
3.1 | Restated Certificate of Incorporation of Registrant (which is incorporated herein by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on February 8, 2010). |
3.2 | Amended and Restated Bylaws of Registrant (which is incorporated herein by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on May 29, 2014), as amended on September 19, 2015 (which is by incorporated herein by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on September 21, 2015). |
3.3 | Certificate of Elimination of Series A Preferred Stock (which is incorporated herein by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on February 8, 2010). |
10.1+ | Form of Indemnification Agreement between Registrant and its officers and directors (which is incorporated herein by reference to Exhibit 10.7 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, Commission File No. 0-19032). |
10.2+ | Atmel Corporation 2010 Employee Stock Purchase Plan (which is incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on May 25, 2010). |
10.3+ | 2005 Stock Plan, as amended (which is incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on May 20, 2011), as amended by Amendment No.1 (which is incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on May 15, 2013. |
10.4+ | 2005 Stock Plan forms of option agreement (which is incorporated herein by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, Commission File No. 0-19032). |
10.5+ | 2005 Stock Plan forms of restricted stock unit agreement (which is incorporated herein by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, Commission File No. 0-19032). |
10.6+ | 2005 Stock Plan forms of performance restricted stock unit agreement (which is incorporated herein by reference to Exhibit 10.4 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, Commission File No. 0-19032). |
10.7+ | Stock Option Fixed Exercise Date Forms (which are incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on January 8, 2007 and Exhibit 10.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on April 15, 2008). |
10.8+ | Amendment and Restatement of Employment Agreement, effective as of May 31, 2009 and dated as of June 3, 2009, between Registrant and Steven Laub (which is incorporated herein by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, Commission File No. 0-19032). |
10.9+ | Amendment No. 1 to Amended Employment Agreement between Registrant and Steven Laub dated as of October 25, 2011 (which is incorporated herein by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, Commission File No. 0-19032). |
10.10+ | Amendment No. 2 to Amended Employment Agreement between Registrant and Steven Laub dated as of March 27, 2014 (which is incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on March 27, 2014). |
10.11+ | Amendment No. 3 to Amended Employment Agreement between Registrant and Steven Laub dated as of March 27, 2014 (which is incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on April 11, 2014). |
10.12+ | Letter Agreement, dated August 24, 2015, between Registrant and Steven Laub (which are incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on August 25, 2015). |
10.13+ | Amended and Restated Senior Executive Change of Control and Severance Plan (which is incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on June 3, 2015). |
10.14+ | Description of Fiscal 2015 Executive Bonus Plan (which is incorporated herein by reference to Item 5.02 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on April 13, 2015) |
10.15 | Office Lease between Registrant and CA-Skyport III Limited Partnership dated as of August 30, 2011 (which is incorporated herein by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, Commission File No. 0-19032). |
10.16+ | Description of 2014 Long-Term Performance Incentive Plan (which is incorporated by reference to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on December 23, 2013 and by reference to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on March 27, 2014). |
10.17+ | Description of 2015 Long-Term Performance Incentive Plan (which is incorporated by reference to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on December 15, 2014). |
10.18 | Credit Agreement dated as of December 6, 2013, among Atmel Corporation, the Lenders party thereto, Morgan Stanley Senior Funding, Inc. as Administrative Agent and Union Bank N.A., BNP Paribas and SunTrust Bank as co-syndication agents (which is incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (Commission File No. 0-19032) filed on December 12, 2013. |
10.19 | Amendment No. 1 to Credit Agreement, dated as of June 27, 2014, to that certain Credit Agreement, dated as of December 6, 2013 among Atmel Corporation, the Lenders party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent (which is incorporated herein by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, Commission File No. 0-19032). |
10.20 | Agreement and Plan of Merger, dated as of July 3, 2014, by and among Atmel Corporation, Marina MCU Acquisition Corporation, Newport Media, Inc. and Shareholder Representative Services LLC, as representative (which is incorporated herein by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, Commission File No. 0-19032). |
21.1 | Subsidiaries of Registrant |
23.1 | Consent of KPMG LLP, Independent Registered Public Accounting Firm |
24.1 | Power of Attorney (included on the signature pages hereof) |
31.1 | Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a). |
31.2 | Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a). |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | XBRL Taxonomy Definition Linkbase |
101.LAB | XBRL Taxonomy Extension Label Linkbase |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
1. | I have reviewed this Annual Report on Form 10-K of Atmel Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
February 26, 2016 | /s/ STEVEN LAUB | |
Steven Laub | ||
President & Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K of Atmel Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
February 26, 2016 | /s/ STEVE SKAGGS | |
Steve Skaggs | ||
Senior Vice President & Chief Financial Officer |
February 26, 2016 | By: | /s/ STEVEN LAUB |
Steven Laub | ||
President & Chief Executive Officer |
February 26, 2016 | By: | /s/ STEVE SKAGGS |
Steve Skaggs | ||
Senior Vice President & Chief Financial Officer |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Jan. 29, 2016 |
Jun. 30, 2015 |
|
Document Information [Line Items] | |||
Entity Registrant Name | ATMEL CORP | ||
Entity Central Index Key | 0000872448 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Entity Voluntary Filers | No | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 4,000,947,879 | ||
Entity Common Stock, Shares Outstanding | 421,332,253 | 418,377,333 | |
Entity Well Known Seasoned Issuer | Yes | ||
Document Fiscal Focus | 2015 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Comprehensive Income [Abstract] | |||
Tax benefit (expense) | $ 4,561 | $ 2,826 | $ (1,210) |
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 5,861 | $ 5,945 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, Authorized shares | 5,000 | 5,000 |
Preferred stock, Shares issued | 0 | 0 |
Preferred stock, Shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, Authorized shares | 1,600,000 | 1,600,000 |
Common stock, Shares issued | 421,310 | 416,178 |
Common stock, Shares outstanding | 421,310 | 416,178 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Atmel Corporation (collectively, including its wholly-owned subsidiaries, "Atmel" or the "Company") is one of the world’s leading suppliers of general purpose microcontrollers, which are self-contained computers-on-a-chip. This product focus has enabled the Company to develop and maintain a diversified, global customer base that incorporates its semiconductors into industrial products, automotive systems, digital consumer products, mobile computing devices, communications networks, and other electronics in which the Company's products provide embedded processing and critical interface functions. Leveraging the Company's microcontroller technology and experience integrating silicon and firmware, the Company delivers market leading “capacitive touch” solutions for mobile, industrial, consumer and automotive markets. The Company's cryptographic products offer highly secure solutions for reliable device protection and authentication. These products also enable secure storage of sensitive and confidential information and trusted identification of devices for the Internet of Things ("loT") across wired and wireless networks. The Company is a leading supplier of automobile access and networking solutions. The Company's car access products comprise keyless entry solutions for passive entry/go systems, key fob electronics, car side receiver products and immobilizer functionality. These automobile networking products incorporate the latest industry standards and include stand-alone and integrated LIN and CAN transceiver solutions. In addition, the Company designs and sells semiconductor products that complement the Company's general microcontroller business, including nonvolatile memory, radio frequency and mixed-signal components and application specific integrated circuits. The Company's expansive product portfolio, sold through its global distribution channels to a broad customer base, has allowed the Company to target market segments in which the Company expects semiconductor content to continue to increase in the future. Principles of Consolidation The consolidated financial statements include the accounts of Atmel and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates in these financial statements include provision for excess and obsolete inventory, sales return reserves, share-based compensation expense, allowances for doubtful accounts receivable, warranty accruals, estimates for useful lives associated with long-lived assets, asset impairment charges, recoverability of goodwill and intangible assets, restructuring charges, fair value of net assets held for sale, liabilities for uncertain tax positions, and deferred tax asset valuation allowances. Actual results could differ from those estimates. Pending Acquisition of Atmel by Microchip Technology On January 19, 2016, Atmel entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Microchip Technology Incorporated (“Microchip”), and Hero Acquisition Corporation, a wholly-owned subsidiary of Microchip (“Merger Sub”), after terminating a previously announced merger agreement with Dialog Semiconductor plc. Under the terms of the Merger Agreement, the acquisition of Atmel will be accomplished through a merger of Merger Sub with and into Atmel (the “Merger”), with Atmel being the surviving corporation (the “Surviving Corporation”). At the effective time of the Merger (the “Effective Time”), each share of Atmel’s common stock issued and outstanding immediately prior to the Merger (other than dissenting shares and shares held by Microchip, Merger Sub, Atmel or any of their respective subsidiaries) will be converted into the right to receive (1) $7.00 in cash and (2) a fraction of a share of Microchip common stock having a value of $1.15, based on a ten-day average of the closing price of Microchip’s common stock measured as of the day before the closing of the Merger (with cash being substituted for Microchip common stock to the extent that the aggregate number of shares of Microchip stock issued in exchange for Atmel stock would exceed 13 million shares) (the “Merger Consideration”). Each of Microchip’s and Atmel’s respective obligation to consummate the Merger is subject to a number of conditions specified in the Merger Agreement, including the following: (1) adoption of the Merger Agreement by Atmel’s stockholders, (2) effectiveness under the Securities Act of 1933 of the Registration Statement on Form S-4 to be filed with the U.S. Securities and Exchange Commission (the “SEC”) by Microchip in connection with the Microchip common stock issuable to Atmel stockholders in the Merger; (3) approval for listing on The NASDAQ Stock Market of the Microchip common stock issuable to Atmel stockholders in the Merger; (4) expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and receipt of antitrust clearances in Germany and South Korea (the “Antitrust Condition”); (5) absence of laws, orders, judgments and injunctions that enjoin or otherwise prohibit consummation of the Merger and any proceedings instituted by a governmental entity with competent jurisdiction seeking any of the foregoing; (6) subject to certain materiality-related standards contained in the Merger Agreement, the accuracy of the respective representations and warranties made by Atmel and Microchip and material compliance with the respective covenants of Atmel and Microchip in the Merger Agreement and (7) the absence of a material adverse effect with respect to the other party. The consummation of the Merger is not subject to a financing condition. The Merger Agreement contains customary representations, warranties and covenants by the parties and requires the payment of termination fees under specified conditions. The foregoing description of the Merger and the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement. In the year ended December 31, 2015, Atmel recorded transaction-related costs of approximately $11.6 million, principally for outside financial advisory, legal, and related fees and expenses associated with the strategic transaction process. These costs were recorded in selling, general and administrative expense included in the Consolidated Statements of Operations for the year ended December 31, 2015. Additional transaction-related costs are expected to be incurred through the closing of the Merger. Fair Value of Financial Instruments For certain of Atmel's financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable and other current assets and current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these items. Investments in debt securities are carried at fair value based on quoted market prices. The estimated fair value has been determined by the Company using available market information. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that Atmel could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. Cash and Cash Equivalents Investments with an original or remaining maturity of 90 days or less, as of the date of purchase, are considered cash equivalents, and consist of highly liquid money market instruments. Atmel maintains its cash balances at a variety of financial institutions and has not experienced any material losses relating to such instruments. Atmel invests its excess cash in accordance with its investment policy that has been reviewed and approved by the Board of Directors. Investments All of the Company's investments are classified as available-for-sale. Available-for-sale securities with an original or remaining maturity of greater than 90 days, as of the date of purchase, are classified as short-term when they represent investments of cash that are intended for use in current operations. Investments in available-for-sale securities are reported at fair value with unrealized (losses) gains, net of related tax, included as a component of accumulated other comprehensive income. The Company's marketable securities include auction-rate securities. The Company monitors its investments for impairment periodically and recognizes an impairment charge when the decline in the fair value of these investments is judged to be other-than temporary. Significant judgment is used to identify events or circumstances that would likely have a significant adverse effect on the future use of the investment. The Company considers various factors in determining whether impairment is other-than-temporary, including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and the Company's ability and intent to hold the investment for a period of time that may be sufficient for anticipated recovery of market value. The Company's investments include an auction-rate security with a fair value of $1.1 million at both December 31, 2015 and 2014, which is structured with short-term interest rate reset dates of either 7 days or 28 days, and contractual maturities that can be in excess of 10 years. The Company evaluates its portfolio by continuing to monitor the credit rating and interest yields of these auction-rate securities and status of reset at each auction date. Accounts Receivable An allowance for doubtful accounts is calculated based on the aging of Atmel's accounts receivable, historical experience, and management judgment. Atmel writes off accounts receivable against the allowance when Atmel determines a balance is uncollectible and no longer intends to actively pursue collection of the receivable. The Company's bad debt expenses (recoveries) were not material for the years ended December 31, 2015 and 2013. In the year ended December 31, 2014, the Company recorded $4.1 million in bad debt expenses primarily due to an amount deemed uncollectible from a contract manufacturer. Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or market. Market is based on estimated net realizable value. Determining market value of inventories involves numerous judgments, including estimating average selling prices and sales volumes for future periods. The Company establishes provisions for lower of cost or market and excess and obsolescence write-downs, which are charged to cost of revenue. The Company makes a determination regarding excess and obsolete inventory on a quarterly basis. This determination requires an estimation of the future demand for the Company’s products and involves an analysis of historical and forecasted sales levels by product, competitiveness of product offerings, market conditions, product lifecycles, as well as other factors. Excess and obsolete inventory write-downs are recorded when the inventory on hand exceeds management’s estimate of future demand for each product and are charged to cost of revenue. The Company’s inventories include parts that have a potential for rapid technological obsolescence and are sold in a highly competitive industry. The Company writes down inventory that is considered excess or obsolete. When the Company recognizes a loss on such inventory, it establishes a new, lower-cost basis for that inventory, and subsequent changes in facts and circumstances will not result in the restoration or increase in that newly established cost basis. If inventory with a lower-cost basis is subsequently sold, it will result in higher gross margin for the products making up that inventory. Fixed Assets The Company's business requires investment in manufacturing facilities that are technologically advanced but can quickly become significantly underutilized or rendered obsolete by rapid changes in demand for semiconductors produced in those facilities. The Company estimates the useful life of its manufacturing equipment, which is the largest component of our fixed assets, to be seven years. The Company bases its estimate on its experience with acquiring, using and disposing of equipment over time. Useful lives for fixed assets may be evaluated from time to time to determine whether they require adjustment to reflect new or additional information. During the first quarter of 2014, the Company revised its accounting estimate for the expected useful life of manufacturing equipment from five years to seven years. In reviewing the useful life of the Company's remaining manufacturing equipment during the fourth quarter of 2013, the Company determined that the adoption of its manufacturing "lite" strategy, the consolidation of its back-end subcontracting activities during the prior several years and the transition of its business to common test platforms had resulted in an extension of the economic life of those assets. Management believes that this change better reflects the expected economic benefits from the use of its manufacturing equipment over time based on an analysis of historical experience and general industry practices. The revised useful life of the manufacturing equipment decreased the Company's depreciation by approximately $18.0 million for the year ended December 31, 2014. This change had the effect of increasing net income by $12.8 million for the year ended December 31, 2014. Fixed assets are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the following estimated useful lives:
Maintenance, repairs and minor upgrades are expensed as incurred. Investments in Privately-Held Companies Periodically, the Company makes minority investments in certain privately-held companies to further its strategic objectives. Investments in privately-held companies are accounted for at historical cost or, if Atmel has significant influence over the investee, using the equity method of accounting. Atmel's proportionate share of income or losses from investments accounted for under the equity method, and any gain or loss on disposal, are recorded in interest and other income (expense), net. Investments in privately- held companies are included in other assets on the Company's consolidated balance sheets. For investments in privately-held companies, the Company monitors for impairment annually, or when indicators arise, and reduces their carrying values to fair value when the declines are determined to be other-than-temporary. Revenue Recognition The Company sells its products to original equipment manufacturers ("OEMs") and distributors and recognizes revenue when the rights and risks of ownership have passed to the customer, when persuasive evidence of an arrangement exists, the product has been delivered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Allowances for sales returns and other credits are recorded at the time of sale. Contracts and customer purchase orders are used to determine the existence of an arrangement. Shipping documents are used to verify delivery. The Company assesses whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. The Company assesses collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history. Sales terms do not include post-shipment obligations except for product warranty. For sales to certain distributors (primarily based in the U.S. and Europe) with agreements allowing for price protection and product returns, the Company historically has not had the ability to estimate future claims at the point of shipment, and given that price is not fixed or determinable at that time, revenue is not recognized until the distributor sells the product to its end customer. At the time of shipment to these distributors, the Company records a trade receivable for the selling price as there is a legally-enforceable right to payment, relieves inventory for the carrying value of goods shipped since legal title has passed to the distributor, and records the gross margin in deferred income on shipments to distributors on the consolidated balance sheets. For sales to independent distributors in Asia, excluding Japan, the Company invoices these distributors at full list price upon shipment and issues a rebate, or "credit," once product has been sold to the end customer and the distributor has met certain reporting requirements. After reviewing the more limited pricing, rebate and quotation-related terms, the Company concluded that it could reliably estimate future claims, and therefore recognized revenue at the point of shipment for its Asian distributors (excluding Japan), assuming all of the other revenue recognition criteria are met, utilizing amounts invoiced, less estimated future claims. Grant Recognition Subsidy grants from government organizations are amortized as a reduction of expenses over the period the related obligations are fulfilled. Recognition of future subsidy benefits will depend on the Company's achievement of certain technical milestones, capital investment spending goals, employment goals and other requirements. The Company recognized subsidy grant benefits as a reduction of either cost of revenue or research and development expenses, depending on the nature of the grant. The reduction to research and development expenses amounted to $5.8 million, and $4.0 million, and $5.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. The amounts recognized as a reduction of cost of revenue were not material in each of those years. From time to time, the Company receives economic incentive grants and allowances from European governments, agencies and research organizations targeted at preserving employment at specific locations. The subsidy grant agreements typically contain economic incentive, headcount, capital and research and development expenditures and other conditions that must be met to receive and retain grant benefits. Noncompliance with the conditions of the grants could result in the forfeiture of all or a portion of any future amounts to be received, as well as the repayment of all or a portion of amounts previously received. In addition, the Company may need to record charges to reverse grant benefits recorded in prior periods as a result of changes to its plans for headcount, project spending, or capital investment at any of these specific locations. If the Company is unable to comply with any of the conditions in the grant agreements, the Company may face adverse actions from the government agencies providing the grants. If the Company were required to repay grant benefits, its results of operations and financial position could be materially adversely affected by the amount of such repayments. As of December 31, 2015 and 2014, the total liability for grant benefits subject to repayment was $0.5 million and $0.6 million and is included in accrued and other liabilities on the consolidated balance sheets. Advertising Costs Atmel expenses all advertising costs as incurred. Advertising costs were not significant for the years ended December 31, 2015, 2014 and 2013. Foreign Currency Translation Certain of Atmel's major international subsidiaries use their local currencies as their respective functional currencies. Financial statements of these foreign subsidiaries are translated into U.S. dollars at current rates, except that revenue, costs and expenses are translated at average current rates during each reporting period. The effect of translating the accounts of these foreign subsidiaries into U.S. dollars has been included in the consolidated statements of stockholders' equity and comprehensive (loss) income as a foreign currency translation adjustment. Gains and losses from re-measurement of assets and liabilities denominated in currencies other than the respective functional currencies are included in the consolidated statements of operations. Gains due to foreign currency re-measurement included in interest and other income (expense), net for the years ended December 31, 2015, 2014 and 2013 were $9.1 million, $0.8 million and $2.3 million, respectively. Share-Based Compensation The Company determines the fair value of options and ESPP shares on the measurement date utilizing an option-pricing model, which is affected by its common stock price, as well as changes in assumptions regarding a number of subjective variables. These variables include, but are not limited to: expected common stock price volatility over the term of the option awards, as well as the projected employee option exercise behaviors during the expected period between the stock option grant date and stock option exercise date. For performance-based restricted stock units, the Company is required to assess the probability of achieving certain financial objectives at the end of each reporting period. Based on the assessment of this probability, which requires subjective judgment, the Company records share-based compensation expense before the performance criteria are actually fully achieved, which may then be reversed in future periods if the Company determines that it is no longer probable that the objectives will be achieved. The expected cost of each award is reflected over the performance period and is reduced for estimated forfeitures. The fair value of a restricted stock unit is equivalent to the market price of the Company's common stock on the measurement date. The Company recognizes stock-based compensation expense on a straight-line basis over the service period of each separately vesting portion of the award, which is generally three years. Valuation of Goodwill and Intangible Assets Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. The Company reviews goodwill and intangible assets with indefinite lives for impairment annually at the beginning of the fourth quarter of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. While the Company is permitted to conduct a qualitative assessment to determine whether it is necessary to perform a two-step quantitative goodwill impairment test, for the annual goodwill impairment test in the fourth quarter of fiscal 2015, the Company performed a quantitative test for all of our reporting units with goodwill. The performance of the test involves a two-step process. The first step requires comparing the fair value of each of the reporting units to its net book value, including goodwill. The Company has three reporting units with goodwill, the fair values of which are determined based on an income approach, whereby the Company calculates the fair value of the reporting unit based on the present value of estimated future cash flows, which are formed by evaluating operating plans. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process is only performed if a potential impairment exists, and it involves determining the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then the Company records an impairment loss equal to the difference. The Company has not been required to perform this second step of the process because the fair value of the reporting units have exceeded their net book value for the year ended December 31, 2015. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions may include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions. Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit. In addition, the Company makes certain judgments and assumptions in allocating shared assets and liabilities to individual reporting units to determine the carrying amount for each reporting unit. Purchased intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that the Company may not be able to recover the asset's carrying amount. Certain Risks and Concentrations Atmel sells its products primarily to OEMs and distributors in North America, Europe and Asia, generally without requiring any collateral. Atmel performs ongoing credit evaluations and seeks to maintain adequate allowances for potential credit losses. Two distributors accounted for 16% and 12% of accounts receivable at December 31, 2015 and no end-customer accounted for 10% or more of accounts receivable at December 31, 2015. Two distributors accounted for 17% and 11% of accounts receivable at December 31, 2014 and no end-customer accounted for 10% or more of accounts receivable at December 31, 2014. The Company had two distributors that accounted for 18% and 10% of net revenue in the year ended December 31, 2015. The Company had two distributors that accounted for 16% and 10% of net revenue in the year ended December 31, 2014. The Company had one distributor and one end-customer that accounted for 14% and 12%, respectively, of net revenue in the year ended December 31, 2013. The semiconductor industry is characterized by rapid technological change, competitive pricing pressures and cyclical market patterns. The Company's financial results are affected by a wide variety of factors, including general economic conditions worldwide, economic conditions specific to the semiconductor industry, the timely introduction of new products and implementation of new manufacturing process technologies, and the ability to safeguard patents and intellectual property in a rapidly evolving market. In addition, the semiconductor industry has historically been cyclical and subject to significant economic downturns at various times. As a result, Atmel may experience significant period-to-period fluctuations in future operating results due to the factors mentioned above or other factors. Atmel believes that its existing cash, cash equivalents and investments together with cash flow from operations and future withdrawals from a new credit facility, will be sufficient to support its liquidity and capital investment activities for the next twelve months. Additionally, the Company relies on a limited number of contract manufacturers to provide assembly services for its products. The inability of a contract manufacturer or supplier to fulfill supply requirements of the Company could materially affect future operating results. Income Taxes The Company's provision for income tax comprises its current tax liability and change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management's judgment is more likely than not to be recoverable against future taxable income. No U.S. taxes are provided on earnings of non-U.S. subsidiaries to the extent such earnings are deemed to be indefinitely reinvested. The Company's income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. The Company's tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, the Company recognizes tax liabilities based upon its estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases are recorded as income tax expense or benefit in the consolidated statements of operations. In assessing the realizability of deferred tax assets, the Company evaluates both positive and negative evidence that may exist and considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the consolidated statements of operations for the period that the adjustment is determined to be required. Long-Lived Assets Atmel periodically evaluates the recoverability of its long-lived assets. Factors which could trigger an impairment review include the following: (i) significant negative industry or economic trends; (ii) exiting an activity in conjunction with a restructuring of operations; (iii) current, historical or projected losses that demonstrate a likelihood of continuing losses associated with an asset; (iv) significant decline in the Company's market capitalization for an extended period of time relative to net book value; (v) material changes in the Company's manufacturing model; and (vi) management's assessment of future manufacturing capacity requirements. When the Company determines that there is an indicator that the carrying value of long-lived assets may not be recoverable, the assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset from the expected future undiscounted pre-tax cash flows of the related operations. These estimates include assumptions about future conditions such as future revenue, gross margin, operating expenses, and the fair values of certain assets based on appraisals and industry trends. If these cash flows are less than the carrying value of such assets, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate future cash flows and the fair value of long-lived assets. The evaluation is performed at the lowest levels for which there are identifiable, independent cash flows. Costs that the Company incurs to acquire completed product and process technology are capitalized and amortized on a straight-line basis over three to five years. Capitalized product and process technology costs are amortized over the shorter of the estimated useful life of the technology or the term of the technology agreement. Net Income (Loss) Per Share Basic net income (loss) per share is computed by using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental common shares issuable upon exercise of stock options, upon vesting of restricted stock units, contingently issuable shares for all periods and assumed issuance of shares under the Company's employee stock purchase plan. No dilutive potential common shares are included in the computation of any diluted per share amount when a loss from continuing operations is reported by the Company. Research and Development Cost incurred in the research and development of Atmel's products is expensed as incurred. Research and development expenses were $230.2 million, $274.6 million and $266.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. In July 2015, the FASB deferred the effective date of ASU 2014-09 so that it will apply to annual reporting periods beginning after December 15, 2017. Early application is permitted to the original effective date of December 15, 2016, in which case ASU 2014-09 would apply to annual reporting periods beginning December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor determined the effect of the standard on its ongoing financial reporting. In July 2015, the FASB amended the existing accounting standards for the measurement of inventory, ASU 2015-11, Inventory. The amendments require inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company is required to adopt the amendments in the first quarter of 2017. The amendments should be applied prospectively with early adoption permitted as of the beginning of an interim or annual reporting period. The Company does not expect that the adoption of these amendments will have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires an entity to classify deferred tax liabilities and assets as noncurrent on the balance sheet. ASU 2015-17 is effective for annual and interim reporting periods beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted as of the beginning of the interim or annual reporting period. The Company early adopted ASU 2015-17 as of December 31, 2015 on a prospective basis. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires, among other things, the recognition of lease assets and lease liabilities on the balance sheet by lessees for certain leases classified as operating leases under previous GAAP. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method with early adoption permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. |
BALANCE SHEET DETAILS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET DETAILS | BALANCE SHEET DETAILS Inventories are comprised of the following:
Prepaids and other current assets consist of the following:
Other assets consist of the following:
Accrued and other liabilities consist of the following:
Other long-term liabilities consist of the following:
Included in other long-term liabilities balance at December 31, 2014 was a note payable to an entity in which the Company held an equity interest that provides facilities services to the Company's site in Heilbronn, Germany. The total outstanding amount due at December 31, 2014 was $1.9 million, of which $1.6 million was included in other long-term liabilities and $0.3 million was included in accounts payable. On September 23, 2015, the Company completed the sale of its equity interest and the real estate holdings in Heilbronn and repaid the note payable. In addition, the Company paid $5.8 million and $6.8 million to this entity for the years ended December 31, 2015 and 2014, respectively, relating to costs for facility services. |
BUSINESS COMBINATIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Newport Media, Inc. On July 31, 2014, the Company acquired a 100% equity interest in privately-held Newport Media, Inc. (“NMI”). The purchase consideration, net of cash acquired, consisted of $139.6 million payable in cash at closing of the acquisition, subject to working capital adjustments and deductions for specified closing expenses. In addition, the acquisition agreement provides for an aggregate cash earn-out payment of up to $30.0 million payable if specified revenue targets are achieved over the next two years. The Company recorded a liability of $0.4 million as of December 31, 2014, representing the estimated fair value of the earn-out based on the probability of achievement as of the acquisition date. The table below represents the allocation of the purchase price to the net assets acquired based on their estimated fair values as of July 31, 2014. The purchase price allocation was finalized as of July 31, 2015.
The Company incurred $5.3 million of one-time bonuses, subject to claw-back and other employment-related terms, for certain employees, which will be recorded ratably through the date on which the bonus is no longer recoverable by the Company. For the years ended December 31, 2015 and 2014, the Company recorded $3.1 million and $1.8 million, respectively, of one-time bonus expense as acquisition-related charges in the Consolidated Statements of Operations. For the years ended December 31, 2015 and 2014, the Company recorded $4.9 million and $3.8 million, respectively, of amortization expense related to identifiable intangible assets in the Consolidated Statements of Operations. |
FAIR VALUE OF ASSETS AND LIABILITIES |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF ASSETS AND LIABILITIES | FAIR VALUE OF ASSETS AND LIABILITIES Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price)”. The accounting standard establishes a consistent framework for measuring fair value and expands disclosure requirements regarding fair value measurements. This accounting standard, among other things, requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The tables below present the balances of investments measured at fair value on a recurring basis:
The Company’s investments, with the exception of auction-rate securities, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, or broker or dealer quotations in active markets. Auction-rate securities are classified within Level 3 because significant assumptions for such securities are not observable in the market. The total amount of assets measured using Level 3 valuation methodologies represented less than 1% of the Company's total assets as of December 31, 2015 and December 31, 2014. There were no changes in Level 3 assets measured at fair value on a recurring basis for the years ended December 31, 2015 and 2014. There were no transfers between Level 1 and 2 hierarchies for the years ended December 31, 2015 and 2014. |
FIXED ASSETS, NET |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FIXED ASSETS, NET | FIXED ASSETS, NET Fixed assets, net consist of the following:
Depreciation expense on fixed assets for the years ended December 31, 2015, 2014 and 2013 was $43.6 million, $48.4 million and $66.6 million, respectively. Fixed assets acquired under capital leases were not material at December 31, 2015, 2014, and 2013. During 2015, the Company completed the sale to an unrelated party of both its real estate holdings in Heilbronn, Germany and its equity interest in a privately-held company that provides facilities services to the tenants of that property. In addition, in a further effort to focus on its core business, the Company completed the sale of its XSense manufacturing assets and separately licensed to the buyer its XSense intellectual property assets, which the Company retained. See Note 14 Notes to Consolidated Financial Statements for a further discussion. During 2014, management completed a strategic review of the XSense business and assessed its assets for possible impairment as changes in circumstances indicated that the carrying value of the Company’s assets might not be recoverable. As a result, the Company recognized a non-cash impairment charge of $25.3 million related to impairment of fixed assets and $1.3 million related to write-off of equipment deposit which are included in the consolidated statements of operations as cost of revenue. |
GOODWILL AND INTANGIBLE ASSETS, NET |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET The following table summarizes activities related to the carrying value of goodwill:
Intangible assets, net, consist of technology licenses and acquisition-related intangible assets as follows:
Amortization expense for technology licenses totaled $1.9 million, $1.9 million and $2.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Amortization expense for acquisition-related intangible assets totaled $9.5 million, $8.9 million and $6.0 million, of which $3.5 million, $2.0 million and $1.1 million pertained to developed technology, for the years ended December 31, 2015, 2014 and 2013, respectively. The following table presents the estimated future amortization of the technology licenses and acquisition-related intangible assets:
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BORROWING ARRANGEMENTS |
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Debt Disclosure [Abstract] | |
BORROWING ARRANGEMENTS | BORROWING ARRANGEMENTS Senior Secured Revolving Credit Facility On December 6, 2013, the Company entered into a five-year $300.0 million, senior secured revolving credit facility (the “Facility”), the terms of which are set forth in a Credit Agreement (the “Credit Agreement”). The Company may increase the aggregate availability under the Facility through a customary “accordion” feature in an amount not to exceed $250.0 million. The Company recorded debt issuance costs of $2.1 million associated with the Facility that are being amortized over the expected life of the Facility. Borrowings under the Facility will be available for general corporate purposes, including working capital, stock repurchases, acquisitions and other purposes. Amounts outstanding under the Facility are due on the earlier of December 6, 2018 or 180 days prior to the maturity date of any Permitted Convertible Notes (as defined in the Credit Agreement) if, in the latter case, the Company does not otherwise have available sufficient unrestricted cash and other investments to redeem the Permitted Convertible Notes. The Company may prepay loans under the Credit Agreement at any time, in whole or in part, upon payment of accrued interest and break funding payments, if applicable. The Company may terminate or reduce the Facility at any time without penalty. The obligations under the Facility are guaranteed by certain domestic subsidiaries of the Company, are secured by a pledge of substantially all of the assets of the Company and the guarantors, and contains affirmative, negative and financial covenants. Affirmative covenants include, among other things, the delivery of financial statements and other information. Negative covenants include, among other things, limitations on asset sales, mergers and acquisitions, indebtedness, liens, investments and transactions with affiliates. The financial covenants require the Company to maintain compliance with a maximum total leverage ratio, a maximum senior secured leverage ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all its financial covenants under the Credit Agreement. The Credit Agreement includes customary events of default that include, among other things, non-payment defaults, inaccuracy of representations and warranties, covenant defaults, cross default to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults, ERISA defaults and a change of control default. The occurrence of an event of default could result in an acceleration of obligations under the Credit Agreement. At December 31, 2015, after principal repayments, the Company had $55.0 million of outstanding borrowings under the Facility. Interest on the borrowed amounts equals the applicable periodic LIBOR rate, plus 1.25% per annum, and was $1.6 million and $0.9 million for the years ended December 31, 2015 and 2014, respectively. The Facility matures on December 6, 2018. On January 20, 2016, the Company borrowed $137.0 million under the Facility to pay a termination fee to Dialog Semiconductor plc ("Dialog") of $137.3 million in connection with the termination of the Company's transaction with Dialog. Other Debt Obligations The Company had other long-term debt obligations amounting to $8.9 million as of December 31, 2014, of which $7.3 million related to an amount previously advanced from a foreign government and the remaining balance of $1.6 million related to a loan owed to privately-held company in which the Company owned an equity interest until September 2015. Both debt obligations were repaid in full in 2015. |
STOCKHOLDERS' EQUITY |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Share-Based Compensation The components of the Company's share-based compensation expense are summarized below:
The accounting standard on share-based compensation requires the gross benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow, rather than as an operating cash flow. The future realizability of tax benefits related to share-based compensation is dependent upon the timing of employee exercises and future taxable income, among other factors. The Company reported gross excess tax benefits of $1.6 million, $1.6 million and $2.3 million in the years ended December 31, 2015, 2014 and 2013, respectively. There was no significant non-employee share-based compensation expense for the years ended December 31, 2015, 2014 and 2013. The following table summarizes share-based compensation, net of amount capitalized in (released from) inventory, included in operating results:
Stock Options, Restricted Stock Units and Employee Stock Purchase Plan In May 2005, Atmel’s stockholders initially approved Atmel’s 2005 Stock Plan (as amended, the “2005 Stock Plan”). On May 9, 2013, Atmel's stockholders approved an amendment to the 2005 Stock Plan to increase the number of shares allocated to the 2005 Stock Plan by 25.0 million shares. As of December 31, 2015, 158.0 million shares had been authorized for issuance under the 2005 Stock Plan, and 7.7 million shares remained available for issuance without giving effect to any adjustment that may be required by the terms of the 2005 Stock Plan in respect of shares underlying restricted stock or restricted stock units. Under the 2005 Stock Plan, Atmel may issue common stock directly, grant options to purchase common stock, or grant restricted stock units payable in common stock to employees, consultants and directors of Atmel. Restricted stock units generally vest on a quarterly basis over a service period of up to four years from the grant date, although restricted stock unit grants to newly-hired employees generally have a one-year cliff vest equal to one-quarter of the total grant. Options, which generally vest over four years, are granted at fair market value on the date of the grant and generally expire ten years from that date. Activity under Atmel’s 2005 Stock Plan is set forth below:
Restricted stock units are granted from the pool of options available for grant. Every share underlying restricted stock, restricted stock units (including performance-based restricted stock units), or stock purchase rights issued on or after May 9, 2013 is counted against the numerical limit for options available for grant as 1.57 shares, as reflected in the table above in the line items for "Plan adjustments", except that restricted stock units (including performance-based restricted stock units), or stock purchase rights issued prior to May 9, 2013 but on or after May 18, 2011, provide for a numerical limit of 1.61 shares, and restricted stock units (including performance-based restricted stock units), or stock purchase rights issued prior to May 18, 2011 but on or after May 14, 2008, provided for a numerical limit of 1.78 shares. If shares issued pursuant to any restricted stock, restricted stock unit, and stock purchase right agreements are cancelled, forfeited or repurchased by the Company, the number of shares returned to the 2005 Stock Plan is based upon the same ratio as they were issued and will again become available for issuance. In connection with the Company's acquisition of Ozmo in December 2012, the Company assumed Ozmo's equity incentive plan. Excluded from the table above are 0.4 million shares assumed as part of the acquisition of Ozmo. This amount is comprised of 0.3 million restricted stock units, with a weighted average grant date fair value of $6.17 and 0.1 million options, with a weighted average grant date fair value of $0.81. These stock options and restricted stock units remain governed by the terms and conditions of the Ozmo plan. No additional equity is expected to be granted under the Ozmo plan. In connection with the Company's acquisition of NMI in July 2014, the Company assumed NMI’s equity incentive plan. Excluded from the table above are 0.1 million restricted stock units assumed as part of the acquisition of NMI. These restricted stock units remain governed by the terms and conditions of the NMI plan. No additional equity is expected to be granted under the NMI plan. The table set forth above does not include 0.6 million restricted stock units granted in August 2015 as performance-based restricted units since the performance criteria for those performance-based restricted units had not been established as of December 31, 2015. As of December 31, 2015, there were 7.7 million shares available for issuance under the 2005 Stock Plan, or 4.9 million shares after giving effect to the applicable ratios under the 2005 Stock Plan for issuances of restricted stock units, as described above. The shares assumed as part of the Ozmo and NMI acquisitions were not issued under the 2005 Stock Plan. Pursuant to the terms of the Merger Agreement, at the Effective Time, each outstanding option to acquire shares of Atmel common stock will, contingent upon the occurrence of the Effective Time, accelerate and become vested in full and, to the extent not exercised prior to the Effective Time, will be automatically “net exercised” immediately prior to the Effective Time, with the exercise price and applicable withholding taxes paid by withholding shares of Atmel common stock otherwise issuable to the option holder upon the exercise of the option, and the net number of shares resulting from the “net exercise” will be converted into the right to receive the Merger Consideration. Each outstanding restricted stock unit, deferred stock unit, performance-based restricted stock unit or similar right (each such unit or right, an “Atmel Unit”) that is vested but not yet issued, will be converted into the right to receive the Merger Consideration. In addition, each Atmel Unit that is unvested and held by an employee or other service provider of Atmel who will continue to be employed by or provide services to, Microchip or the Surviving Corporation will be converted into equivalent awards in respect of shares of Microchip common stock using a customary exchange ratio. For the performance-based Atmel Units granted with a performance period that ended December 31, 2015 (the “2015 PRSUs”), Atmel’s Board of Directors previously determined, in connection with the Dialog merger and consistent with the terms of the 2015 Plan and information then available, that 57.0% of the target awards should vest contingent upon, and immediately prior to, the occurrence of that merger transaction (which was subsequently reaffirmed by the Board of Directors in connection with the Microchip Merger), with the remaining 2015 PRSUs converted into time-based awards that vest through November 15, 2017. In addition, in connection with the Dialog merger, Atmel’s Board of Directors determined that the Atmel Units granted in August 2015, for which performance criteria had not been established, would be converted, contingent upon the occurrence of that merger transaction (which was subsequently reaffirmed by the Board of Directors in connection with the Microchip Merger), into time-based awards vesting through November 15, 2018. If Microchip determines that the assumption and conversion of an Atmel Unit would violate, in respect of the holder thereof, the applicable laws of a non-U.S. jurisdiction, Microchip may treat such Atmel Unit in a different manner so long as the holder of such Atmel Unit receives the full value of the Merger Consideration (less applicable withholdings) in cash not later than the vesting date originally applicable to such Atmel Unit. Restricted Stock Units Activity related to restricted stock units is set forth below:
Excluded from the table above are 0.3 million restricted stock units, with a weighted average grant date fair value of $6.17, assumed as part of the acquisition of Ozmo, and 0.1 million restricted stock units, with a weighted average grant date fair value of $8.20 assumed as part of the acquisition of NMI. For the year ended December 31, 2015, 6.6 million restricted stock units vested, including 2.5 million units withheld for taxes. These vested restricted stock units had a weighted-average grant date fair value of $8.25 per share for the year ended December 31, 2015. The aggregate intrinsic value of vested restricted stock units amounted to $54.5 million, $61.9 million and $53.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, total unearned share-based compensation related to unvested restricted stock units previously granted (including performance-based restricted stock units) was approximately $86.0 million, excluding forfeitures, and is expected to be recognized over a weighted-average period of 2.20 years. Until restricted stock units are vested, they do not have the voting rights of common stock and the shares underlying such restricted stock units are not considered issued and outstanding. Upon vesting of restricted stock units, shares withheld by the Company to pay taxes are retired. The table set forth above does not include 0.6 million restricted stock units granted in August 2015 as performance-based restricted units since the performance criteria for those performance-based restricted units had not been established as of December 31, 2015. Performance-Based Restricted Stock Units In August 2015, the Company granted 0.6 million performance-based restricted units applicable for the 2016 performance period. The performance criteria for those performance-based restricted units had not been established prior to the date on which the Company entered into its merger agreement with Dialog. For the treatment of those performance-based restricted stock units in connection with the Merger see "Restricted Stock Units, Employee Stock Purchase Plan and Stock Options" above. On December 11, 2014, the Company adopted the Atmel 2015 Long-Term Performance-Based Incentive Plan (the “2015 Plan”), which provides for the grant of performance-based restricted stock units to Company participants. The Company issued 2.6 million shares under the 2015 Plan for the year ended December 31, 2014. The Company initially recorded performance-based restricted stock units issued under the 2015 Plan based on achievement of the “target” performance metrics. The Company recorded total share-based compensation expense related to the 2015 Plan of $2.7 million and $0.3 million for the years ended December 31, 2015 and 2014, respectively. For the treatment of those performance-based restricted stock units in connection with the Merger, see "Restricted Stock Units, Employee Stock Purchase Plan and Stock Options" above. On December 17, 2013, the Company adopted the Atmel 2014 Long-Term Performance-Based Incentive Plan (the “2014 Plan”), which ended on December 31, 2014. The Company issued 1.0 million shares under the 2014 Plan for the year ended December 31, 2013. The Company recorded total share-based compensation expense related to 2014 Plan of $2.0 million and $2.6 million for the years ended December 31, 2015 and 2014, respectively. In May 2011, the Company adopted the 2011 Long-Term Performance Based Incentive Plan (the "2011 Plan"), which ended on December 31, 2013. For the year ended December 31, 2013, the Company recognized a share-based compensation credit of $14.5 million, which resulted from finalizing our estimates regarding the achievement of certain performance criteria established under the 2011 Plan and increasing our forfeiture rate estimates for those performance-based restricted stock units. Stock Option Awards
Excluded from the table above are 0.1 million options, with a weighted average grant date fair value of $0.81, assumed as part of the acquisition of Ozmo. The number of options exercisable under Atmel's stock option plans at December 31, 2015, 2014 and 2013 were 2.4 million, 3.0 million and 3.6 million, respectively. For the years ended December 31, 2015, 2014 and 2013, the number of stock options that were forfeited, but were not available for future stock option grants due to the expiration of these shares under the 1986 Stock Plan was not material. For the years ended December 31, 2015, 2014 and 2013, the number of stock options that were exercised were 0.7 million, 0.6 million and 3.0 million, respectively, which had a total intrinsic value at the date of exercise of $3.2 million, $2.6 million and $9.4 million, respectively, and had an aggregate exercise price of $2.9 million, $2.4 million and $12.2 million, respectively. The aggregate intrinsic value of options vested and expected to vest was $9.3 million and options exercisable was $9.3 million at December 31, 2015. As of December 31, 2015, total unearned compensation expense related to unvested stock options was immaterial, excluding forfeitures, and is expected to be recognized over a weighted-average period of 0.04 year. Employee Stock Purchase Plan Under the 2010 Employee Stock Purchase Plan (“2010 ESPP” ), eligible employees are entitled to purchase shares of Atmel’s common stock at the lower of 85% of the fair market value of the common stock at the date of commencement of the 6-month offering period or 85% of the fair market value on the last day of the offering period. Purchases are limited to 10% of an employee’s eligible compensation subject to a maximum annual employee contribution limit of $25,000 of the market value of the shares (determined at the time the shares are granted) per calendar year. There were 1.6 million, 1.7 million and 1.9 million shares purchased under the 2010 ESPP for the years ended December 31, 2015, 2014 and 2013 at an average price per share of $6.79, $6.59 and $5.52, respectively. Of the 25.0 million shares authorized for issuance under the 2010 ESPP, 17.3 million shares were available for issuance at December 31, 2015. The fair value of each purchase under the 2010 ESPP is estimated on the date of the beginning of the offering period using the Black-Scholes option-pricing model. The following assumptions were utilized to determine the fair value of the 2010 ESPP shares:
The weighted-average fair value per share under the 2010 ESPP for purchase periods beginning in the years ended December 31, 2015, 2014 and 2013 was $1.50, $1.66 and $1.49, respectively. Cash proceeds from the issuance of shares under the 2010 ESPP were $11.1 million, $11.2 million and $10.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. Pursuant to the terms of the Merger Agreement, the ESPP will be terminated prior to the Effective Time of the Merger. Common Stock Repurchase Program Atmel’s Board of Directors has authorized an aggregate of $1.0 billion of funding for the Company’s common stock repurchase program since 2011. The repurchase program does not have an expiration date, and the number of shares repurchased and the timing of repurchases are based on the level of the Company’s cash balances, general business and market conditions, regulatory requirements, and other factors, including alternative investment opportunities. As of December 31, 2015, $197.1 million remained available for repurchasing common stock under this program. Pursuant to the terms of the Merger Agreement, the Company is not permitted to make further stock repurchases. During the years ended December 31, 2015, 2014 and 2013, Atmel repurchased 1.4 million, 16.3 million and 12.2 million shares, respectively, of its common stock on the open market at an average repurchase price of $8.27, $8.01 and $7.20 per share, respectively, excluding commission, and subsequently retired those shares. Common stock and additional paid-in capital were reduced by $12.0 million, $130.4 million and $87.8 million, excluding commission, for the years ended December 31, 2015, 2014 and 2013, respectively, as a result of the stock repurchases. Dividends The Company paid cash dividends of $0.12 per common share, the aggregate cost of which was $50.2 million for the year ended December 31, 2015. Pursuant to the terms of the Merger Agreement, the Company is not permitted to declare or pay any further dividends. |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Comprehensive income is defined as a change in equity of a company during a period, from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. The primary difference between net income and comprehensive income for the Company arises from foreign currency translation adjustments, actuarial loss related to defined benefit pension plans and net unrealized loss on investments. The following table summarizes the changes in accumulated balances of other comprehensive (loss) income, net of tax:
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COMMITMENTS AND CONTINGENCIES |
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COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments Leases The Company leases its domestic and foreign sales offices under non-cancelable operating leases. These leases contain various expiration dates and renewal options. The Company also leases certain manufacturing equipment and software rights under operating leases. Total rental expense for the years ended December 31, 2015, 2014 and 2013 was $25.8 million, $27.3 million and $24.4 million, respectively. Aggregate non-cancelable future minimum rental payments under operating leases are as follows:
Indemnification As is customary in the Company’s industry, the Company’s standard contracts provide remedies to its customers, such as defense, settlement, or payment of judgment for intellectual property claims related to the use of the Company’s products. From time to time, the Company will indemnify customers against combinations of loss, expense, or liability arising from various trigger events related to the sale and the use of the Company’s products and services, usually up to a specified maximum amount. In addition, as permitted under state laws in the United States, the Company has entered into indemnification agreements with its officers and directors and certain employees, and the Company’s bylaws permit the indemnification of the Company’s agents. The estimated fair value of the liability is not material. Purchase Commitments At December 31, 2015, the Company, or its affiliates, had certain non-cancellable commitments that were not included on the consolidated balance sheets at that date. These include the outstanding capital purchase commitments of approximately $2.2 million and wafer purchase commitments of approximately $21.8 million. Contingencies Legal Proceedings The Company is party to various legal proceedings. Management currently believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not have a material adverse effect on the Company's financial position, results of operations and statements of cash flows. If an unfavorable ruling were to occur in any of the legal proceedings described below or other legal proceedings that were not deemed material as of December 31, 2015, there exists the possibility of a material adverse effect on the Company's financial position, results of operations and cash flows. The Company has accrued for losses related to litigation that it considers probable and for which the loss can be reasonably estimated. In the event that a probable loss cannot be reasonably estimated, it has not accrued for such losses. Management makes a determination as to when a potential loss is reasonably possible based on relevant accounting literature and then includes appropriate disclosure of the contingency. As the Company continues to monitor litigation matters, whether deemed material as of December 31, 2015 or not, its determination could change, and the Company may decide, at some future date, to establish an appropriate reserve. Putative Class Action Litigation. On February 17 and 19, 2016, two substantially identical putative class action lawsuits were filed in the United States District Court for the Southern District of Florida and the United States District Court for the Northern District of California against the Company and various other defendants, including Continental AG and certain affiliates, Honda Motor Co., Ltd. and an affiliate, and (with respect to the Florida action only) Daimler AG and an affiliate. The complaints-which include claims arising under federal and Florida or California state law-allege that class members unknowingly purchased or leased vehicles containing defective airbag control units (allegedly incorporating defective application specific integrated circuits manufactured by the Company between 2006 and 2010), and thereby suffered financial harm, including a loss in the value of their purchased or leased vehicles. The plaintiffs in both suits are seeking unspecified compensatory and exemplary damages, statutory penalties, pre- and post-judgment interest, attorneys’ fees, and injunctive and other relief. The Company intends to contest plaintiffs’ claims vigorously. Southern District of New York Action by LFoundry Rousset (“LFR”) and LFR Employees. On March 4, 2014, LFR and Jean-Yves Guerrini, individually and on behalf of a putative class of LFR employees, filed an action in the United States District Court for the Southern District of New York (the "District Court") against the Company, our French subsidiary, Atmel Rousset S.A.S. (“Atmel Rousset”), and LFoundry GmbH (“LF”), LFR’s German parent. The case purports to relate to Atmel Rousset’s June 2010 sale of its wafer manufacturing facility in Rousset, France to LF, and LFR’s subsequent insolvency, and later liquidation, more than three years later. The District Court dismissed the case on August 21, 2015, and plaintiffs are appealing the dismissal. Individual Labor Actions by former LFR Employees. In the wake of LFR's insolvency and liquidation, over 500 former employees of LFR have filed individual labor actions against Atmel Rousset in a French labor court. Atmel Rousset believes that each of these actions is entirely devoid of merit, and, further, that any assertion by any of the Claimants of a co-employment relationship with Atmel Rousset is based substantially on the same specious arguments that the Paris Commercial Court summarily rejected in 2014 in related proceedings. Atmel Rousset therefore intends to defend vigorously against each of these claims. Other Contingencies From time to time, the Company is notified of claims that its products may infringe patents, or other intellectual property, issued to or owned by other parties. The Company periodically receives demands for indemnification from its customers with respect to intellectual property matters. The Company also periodically receives claims relating to the quality of its products, including claims for additional labor costs, costs for replacing defective parts, reimbursement to customers for damages incurred in correcting defective products, costs for product recalls or other damages. With respect to the matter of defective products, the Company is evaluating a claim related to purported titanium nitride corrosion contained in an application specific integrated circuit, last sold in 2010, to an original equipment manufacturer in the automotive sector. That claim is subject to legal defenses or limitations on liability, including a liability cap. Based on current circumstances and information available to the Company, the Company has not undertaken an accrual with respect to that matter as of the date of this Form 10-K. In addition, at this point in time, the Company is unable to make an estimate of a range of losses, if any, that might result from this matter. Receipt of this, and similar, claims and requests occurs in the ordinary course of the Company's business, and the Company responds based on the specific circumstances of each event. The Company undertakes an accrual for losses relating to those types of claims when it considers those losses “probable” and when a reasonable estimate of loss can be determined. Product Warranties The Company accrues for warranty costs based on historical trends of product failure rates and the expected material and labor costs to provide warranty services. The Company’s products are generally covered by a warranty typically ranging from 30 days to three years. Product warranty liability is included in accrued and other liabilities in the Consolidated Balance Sheets. The following table summarizes the activity related to the product warranty liability:
Product warranty liability is included in accrued and other liabilities on the consolidated balance sheets. Guarantees In the ordinary course of business, the Company may provide standby letters of credit or other guarantee instruments to certain parties as required for certain transactions initiated by either the Company or its subsidiaries. The Company has not recorded any liability in connection with these guarantee arrangements. Based on historical experience and information currently available, the Company believes it will not be required to make any payments under these guarantee arrangements. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The components of income (loss) before income taxes are as follows:
The provision for income taxes consists of the following:
The Company's effective tax rate differs from the U.S. Federal statutory income tax rate as follows:
Deferred income taxes The tax effects of temporary differences that constitute significant portions of the deferred tax assets and deferred tax liabilities are presented below:
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The valuation allowance is based on our assessment that it is more likely than not that the tax benefit of certain deferred tax assets will not be realized in the foreseeable future. The Company has provided allowances on the deferred tax assets relating to state and some foreign net operating losses and state tax credits for year ended December 31, 2015. The table of deferred tax assets and liabilities shown above excludes deferred tax assets that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. The Company recognizes excess tax benefits from stock-based awards in additional paid-in capital if an incremental tax benefit is realized from a reduction in taxes payable, after all other available tax attributes have been utilized. The Company accounts for the indirect effects of stock-based awards on other tax attributes, such as research tax credits, through the consolidated statements of operations. The tax benefit realized from excess stock options exercised and restricted stock units vested during 2015 were $1.6 million. As of December 31, 2015, the Company had not recognized deferred income taxes on a cumulative total of $269.0 million of undistributed earnings for certain non-U.S. subsidiaries. Determining the unrecognized deferred tax liability related to investments in our non-U.S. subsidiaries that are indefinitely reinvested is not practicable. The Company estimates that our domestic cash needs will be met from our ongoing business operations. As of December 31, 2015, the Company had federal, state, and non-U.S. net operating loss carryforwards for income tax purposes of $17.5 million, $482.6 million, and $134.9 million, respectively, some of which will begin to expire in 2031, 2016 and 2016, respectively. The U.S. net operating loss carryforwards relate to acquisitions and, as a result, are limited in the amount that can be recognized in any one year. Approximately $122.4 million of the non-U.S. net operating loss carryforwards have no expiration date. Additionally, the Company had federal, state and non-U.S. tax credit carryforwards of $76.0 million, $25.3 million, and $44.6 million, respectively. A portion of the federal and state credits will begin to expire in 2019 and 2016 respectively. The non-U.S. tax credit carryforwards have no expiration date. Unrecognized tax benefits The Company recognizes uncertain tax positions only to the extent that management believes that it is more-likely-than-not that the position will be sustained. The reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Included in the unrecognized tax benefits at December 31, 2015, 2014 and 2013, are $87.0 million, $88.1 million and $87.5 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in its income tax provision. In the years ended December 31, 2015, 2014, and 2013, the Company recognized expense related to interest and penalties in the consolidated statements of operations of $2.2 million, $1.2 million, and $2.8 million, respectively. The total amount of interest and penalties accrued on the consolidated balance sheets as of December 31, 2015 and 2014 was $6.9 million and $5.2 million, respectively. The timing of resolutions and closures of tax audits is highly unpredictable. Given the uncertainty, it is reasonably possible that certain tax audits may be concluded within the next 12 months that could materially impact the balance of our gross unrecognized tax benefits. An estimate of the range of increase or decrease that could occur in the next twelve months cannot be made. However, the estimated impact to tax expense and net income from the resolution and closure of tax exams is not expected to be significant within the next 12 months. The Company files U.S. federal, state, and foreign income tax returns in many jurisdictions with varying statutes of limitations. For U.S. federal and most state tax filings, we are no longer subject to examination for periods prior to 2004. For tax filings in significant foreign jurisdictions, we are no longer subject to examination for periods prior to 2005. |
PENSION PLANS |
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Pension and Other Postretirement Benefit Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSION PLANS | PENSION PLANS The Company sponsors defined benefit pension plans that cover substantially all of its French, German and Philippines employees. Plan benefits are provided in accordance with local statutory requirements. Benefits are based on years of service and employee compensation levels. The plans are unfunded. Pension liabilities and charges are based upon various assumptions, updated annually, including discount rates, future salary increases, employee turnover, and mortality rates. The Company’s French pension plan provides for termination benefits paid to covered French employees only at retirement, and consists of approximately one to five months of salary. The Company’s German pension plan provides for defined benefit payouts for covered German employees following retirement. The Company's Philippines pension plan provides for termination benefits following retirement and consists of a percentage of salary per year of service. The aggregate net pension expense relating to these three plans are as follows:
Settlement and other related gains for the years ended December 31, 2015, 2014 and 2013 were insignificant. Curtailment gains of $1.7 million and $1.6 million for the years ended December 31, 2015 and 2013, respectively, related to restructuring activities in the Company’s Rousset and Nantes operations in France and in the Philippines and were recorded as a credit to restructuring charges upon termination of the affected employees during the fourth quarter of 2013 and 2015, respectively. The change in projected benefit obligation and the accumulated benefit obligation, were as follows:
As the defined benefit plans are unfunded, the liability recognized on the consolidated balance sheets as of December 31, 2015 was $39.6 million, of which $0.7 million is included in accrued and other liabilities and $38.9 million is included in other long-term liabilities on the consolidated balance sheets. The liability recognized on the consolidated balance sheets as of December 31, 2014 was $49.8 million, of which $0.6 million is included in accrued and other liabilities and $49.3 million is included in other long-term liabilities on the consolidated balance sheets. Actuarial assumptions used to determine benefit obligations for the plans were as follows:
The discount rate is based on the quarterly average yield for Euros treasuries with a duration of 30 years, plus a supplement for corporate bonds (Euros, AA rating). Future estimated expected benefit payments over the next 10 years are as follows:
The Company’s pension liability represents the present value of estimated future benefits to be paid. With respect to the Company’s unfunded pension plans in Europe, for the year ended December 31, 2015, a change in assumed discount rate and compensation rate used to calculate the present value of pension obligation resulted in an decrease in pension liability of $7.1 million, which was recorded in accumulated other comprehensive income in stockholders’ equity. The Company’s net pension period cost for 2016 is expected to be approximately $2.7 million. Cash funding for benefits paid was $0.4 million for the year ended December 31, 2015. The Company expects total contribution to these plans to be approximately $0.7 million in 2016. Net actuarial gains (losses) are expected to be minimal and will be recognized as a component of net periodic pension benefit cost during 2016, which is included in accumulated other comprehensive loss in the consolidated statements of stockholders’ equity as of December 31, 2015. |
OPERATING AND GEOGRAPHICAL SEGMENTS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATING AND GEOGRAPHICAL SEGMENTS | OPERATING AND GEOGRAPHICAL SEGMENTS The Company designs, develops, manufactures and sells semiconductor integrated circuit products. The Company’s operating segments represent management’s view of the Company’s businesses and how it allocates Company resources and measures performance of its major components. Each segment consists of product families with similar requirements for design, development and marketing. Each segment requires different design, development and marketing resources to produce and sell products. During the first quarter of 2014, the Company realigned its business segments to better allocate resources and to focus more effectively on core markets. As a result, the Company created a new reportable segment entitled "Multi-Market and Other" and eliminated the former Application Specific Integrated Circuit (“ASIC”) segment. A summary of each reportable segment follows:
Prior period operating segment presentations have been revised to conform to the Company's revised segment reporting. The Company continually evaluates operating segment performance based on revenue and income or loss from operations excluding share-based compensation and other non-recurring items. Because the Company’s operating segments reflect the manner in which management reviews its business, they necessarily involve subjective judgments that management believes are reasonable in light of the circumstances under which they are made. These judgments may change over time or may be modified to reflect new facts or circumstances. Operating segments may also be changed or modified to reflect products, technologies or applications that are newly created, or that change over time, or other business conditions that evolve, each of which may result in reassessing specific segments and the elements included within each of those segments. Operating segments are defined by the products they design and sell. They do not sell to each other. The Company’s net revenue and segment income from operations for each reportable segment is as follows: Information about Reportable Segments
The Company's primary products are semiconductor integrated circuits, which it has concluded constitutes a group of similar products. Therefore, it is impracticable to differentiate the revenue from external customers for each product sold. The Company does not allocate assets by segment, as management does not use asset information to measure or evaluate a segment’s performance. Reconciliation of Segment Information to Consolidated Statements of Operations
Geographic sources of revenue were as follows:
Net revenue is attributed to regions based on ship-to locations. The Company had two distributors that accounted for 18% and 10%, respectively, of net revenue in the year ended December 31, 2015. The Company had two distributors that accounted for 16% and 10%, respectively, of net revenue in the year ended December 31, 2014. The Company had one distributor and one end-customer that accounted for 14% and 12%, respectively, of net revenue in the year ended December 31, 2013. Two distributors accounted for 16% and 12% of accounts receivable at December 31, 2015 and no end-customer accounted for 10% or more of accounts receivable at December 31, 2015. Two distributors accounted for 17% and 11% of accounts receivable at December 31, 2014 and no end-customer accounted for 10% or more of accounts receivable at December 31, 2014. Physical locations of tangible long-lived assets were as follows:
Excluded from the table above are auction-rate securities of $1.1 million at December 31, 2015 and 2014, which are included in other assets on the consolidated balance sheets. Also excluded from the table above as of December 31, 2015 and 2014 are goodwill of $188.2 million and $191.1 million, respectively, intangible assets, net of $38.9 million and $50.3 million, respectively, and deferred income tax assets of $157.9 million and $117.3 million, respectively. |
SALE OF ASSETS |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||
SALE OF ASSETS | SALE OF ASSETS Sale of Heilbronn Real Estate On September 23, 2015, the Company completed the sale to an unrelated party of its real estate holdings in Heilbronn, Germany and its equity interest in a privately-held company that provides facilities services to the tenants at that property for a total of $11.5 million. The Company also entered into an agreement with the same party to lease back a portion of the office space for a three-year period. The total gain of $3.1 million was reduced by Atmel’s proportionate share of the investee’s equity adjustments for other comprehensive loss of $2.1 million upon discontinuation of the equity investment. A portion of the gain equivalent to the present value of the minimum lease payments associated with the sale-leaseback transaction of $1.1 million will be recognized as a reduction to rent expense over the three-year lease term. During the year ended December 31, 2015, the Company recognized $0.2 million of loss on sale of assets included in the Consolidated Statement of Operations. Sale of XSense On April 16, 2015, the Company completed the sale of XSense touch sensor assets to UniPixel, Inc. In connection with the transaction, the Company transferred its XSense related manufacturing assets to UniPixel, which also assumed related operating costs, and separately licensed to UniPixel its XSense patent portfolio and other intellectual property, which the Company is retaining. The intellectual property licenses have an initial five-year term, renewable by UniPixel for an additional ten-year term. The Company will receive minimum royalties during the initial five-year term equal to $16.3 million, of which $9.3 million was prepaid in cash at the close of the transaction. Under the terms of the patent license agreement, the Company licensed to UniPixel its pending, published or issued XSense patents as of the close of the transaction and, subject to certain exclusions, any other patents owned or licensable by the Company during the license period to the extent such patents are necessary to make, use, sell or otherwise dispose of licensed XSense products. The Company also agreed to lease facilities and provided transitional support to UniPixel for a limited period of time. Upon closing this transaction, the Company recognized a gain that is summarized in the following table:
The fair value of the patent license revenue to be received from the licensee over the term of the arrangement was determined using an income approach and an assumed discount rate of 40%. The present value of the patent license agreement is reduced over the initial five-year term of the patent license agreement and recognized as royalty revenue over that term. For the year ended December 31, 2015, the Company recognized $1.9 million of royalty revenue and recognized $2.2 million of gain on sale of assets included in the Consolidated Statement of Operations. North Tyneside In connection with the 2007 sale of land and other assets in North Tyneside, England, the Company had previously sold a portion of its net operating loss carryforwards related to its North Tyneside operations. Following the closure by the relevant tax authorities of matters relating to the surrender of those net operating losses, the Company recorded a gain of $4.4 million, net of related fees of $0.5 million, as gain on sale of assets and $1.3 million as interest income in our consolidated statement of operations for the year ended 2014. Based on the structure of the North Tyneside entity, the Company holds a 50.2% interest in the shares of North Tyneside. The Company consolidates the financial results of North Tyneside and attributes the share of profit and loss to the noncontrolling interest. Activity subsequent to the 2007 sale of land and other assets has been immaterial. Serial Flash Product Line On September 28, 2012, the Company completed the sale of its Serial Flash product line. Under the terms of the sale agreement, the Company transferred assets to the buyer, who assumed certain liabilities, in return for cash consideration of $25.0 million. As part of the sale transaction, the Company also granted the buyer an exclusive option to purchase the Company's remaining $7.0 million of Serial Flash inventory, which the buyer fully exercised during the first quarter of 2013. As a result of the sale of that $7.0 million of remaining inventory, the Company recorded a gain of $4.4 million in 2013 to reflect receipt of payment upon exercise of the related purchase option and the completion of the sale of the Serial Flash product line. |
RESTRUCTURING CHARGES |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES The following table summarizes the activity related to the accrual for restructuring charges detailed by event:
The Company records restructuring liabilities related to workforce reductions when the accounting recognition criteria are met and consistent with management's approval and commitment to the restructuring plans in each particular quarter. The restructuring plans identify the number of employees to be terminated, job classifications and functions, location and the date the plan is expected to be completed. As of December 31, 2015, the Company expects the majority of the remaining employee termination costs and facility exit costs to be paid by the end of fiscal year 2017. 2015 Restructuring Charges Restructuring charges were recorded in first and second quarter of 2015. The charges primarily related to workforce reductions, principally in the U.S., in connection with the Company's decision to exit the XSense business and workforce reductions and other costs in connection with the Company's decision to shut down an assembly operations plant in the Philippines. These actions, which are consistent with management's approval of the restructuring plan and the communication to affected employees, were intended to align operating expenses with macroeconomic conditions and revenue outlooks, and to improve operational efficiency, competitiveness and business profitability. The 2015 restructuring charges were partially reduced by pension curtailment gains upon termination of employees affected by France restructuring action initiated in the fourth quarter of 2014 and the Philippines restructuring action initiated in the second quarter of 2015 and gain on sale of certain equipment located in the Philippines. All employees affected by the Philippines and XSense restructuring ceased active service as of September 30, 2015. 2014 Restructuring Charges Restructuring charges were recorded in the third and fourth quarter of 2014. The charges primarily related to workforce reductions at our subsidiaries in Rousset, France ("Rousset") and Nantes, France (“Nantes”). These actions were intended to align operating expenses with macroeconomic conditions and revenue outlooks, and to improve operational efficiency, competitiveness and business profitability. In connection with formulating this restructuring plan, during the third and fourth quarters of 2014, the Company confidentially negotiated and developed a “social plan” in coordination and consultation with the local Works Council. This social plan, which is subject to French law, set forth general parameters, terms and benefits for both voluntary and involuntary employee dismissals. All employees affected by the France restructuring ceased active service as of December 31, 2015. 2013 Restructuring Charges Restructuring charges were recorded in the first and third quarters of 2013. The charge in the first quarter of 2013 was primarily related to workforce reductions at our subsidiaries in Rousset, Nantes, and Heilbronn, Germany ("Heilbronn"). The charge in the third quarter of 2013 related primarily to workforce reduction in the U.S. and Norway. Rousset and Nantes In 2013, each of Rousset and Nantes restructured operations to further align operating expenses with macroeconomic conditions and revenue outlooks, and to improve operational efficiency, competitiveness and business profitability. In connection with formulating these restructuring plans, during the first quarter of 2013, Rousset and Nantes each confidentially negotiated and developed “social plans” in coordination and consultation with their respective local Works Councils. These social plans, which are subject to French law, set forth general parameters, terms and benefits for both voluntary and involuntary employee dismissals. The restructuring charges related to Rousset and Nantes were $32.9 million, including net non-cash charges of $5.1 million. Total net non-cash charges comprised impairment charges of $6.7 million, which was partially offset by pension curtailment gain of $1.6 million, as discussed further below. Substantially all of the affected employees ceased active service as of June 30, 2014. There were no significant changes to the plan and no material modifications or changes were made after implementation began. The Company vacated a building in Rousset, France in September 2013. Due to ongoing restructuring activities, the Company evaluated the carrying value of this building and a building located in Greece, which is also no longer used in operations. Based on this evaluation, the Company determined that the Rousset and Greece buildings with carrying amounts of $10.1 million and $2.7 million, respectively, were impaired and wrote them down to their estimated fair value of $5.0 million and $1.1 million, respectively. Total impairment charges of $6.7 million were recorded as restructuring expense. Fair value was based on independent third-party appraisal or estimated selling price. As a result of these workforce reductions, the Company recognized pension curtailment gain of $1.6 million in the fourth quarter of 2013 upon termination of the affected employees. Such amount was recorded as a credit to the total restructuring expense in 2013. Heilbronn In 2013, Heilbronn, and a related site in Ulm, Germany, restructured operations to further align operating expenses with macroeconomic conditions and revenue outlooks, and to improve operational efficiency, competitiveness and business profitability. In connection with formulating this restructuring plan, initial discussions with local Works Councils in Heilbronn and Ulm began in the first quarter of 2013. The restructuring charges related to Heilbronn were $15.8 million. The Company anticipates all affected employees will cease active service on or before the end of the fourth quarter of 2016. The Company is not expecting significant changes to the plan or material modifications or changes after implementation. The restructuring charges recorded in the first quarter of 2013 also included $0.9 million relating to U.S. and other countries. U.S. and Norway Restructuring charges recorded in 2013 were primarily related to workforce reductions in the U.S. and Norway amounting to $2.0 million. The workforce reductions were designed to further align operating expenses with macroeconomic conditions and revenue outlook, and to improve operational efficiency, competitiveness and business profitability. Restructuring charges related to these workforce reductions were paid to affected employees after their dismissal date. There have been no significant changes to the plan, and no material modifications or changes have been made after the implementation began. |
LOSS FROM EUROPEAN FOUNDRY ARRANGEMENTS |
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Discontinued Operations and Disposal Groups [Abstract] | |
LOSS FROM EUROPEAN FOUNDRY ARRANGEMENTS | LOSS FROM EUROPEAN FOUNDRY ARRANGEMENTS In December 2008 and June 2010, Atmel entered into a take-or-pay agreement to purchase wafers from two European foundries that had acquired its European manufacturing operations in France and Germany, respectively. In connection with the anticipated expiration of these agreements, the Company notified customers of its end-of-life process and requested that customers provide to the Company last-time-buy orders. To the extent that the Company believes it has excess wafers that remain after satisfying anticipated customer demand, the Company estimates a probable loss for those excess wafers and records a charge to cost of revenue in the consolidated statements of operations. During 2013, the Company recognized a charge to cost of revenue of $7.4 million, which comprised a write-off of excess wafers in the amount of $10.4 million and a write-off of wafer prepayment in the amount of $1.9 million, which were partially offset by a reduction of a previously recorded liability from a take-or-pay arrangement for $4.9 million. These transactions resulted from the insolvencies of two of the Company's foundry suppliers. |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO ATMEL COMMON STOCKHOLDERS |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO ATMEL COMMON STOCKHOLDERS | NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO ATMEL COMMON STOCKHOLDERS A reconciliation of the numerator and denominator of basic and diluted net income (loss) per share is as follows:
The following table summarizes securities that were not included in the “Weighted-average shares - diluted” used for calculation of diluted net income (loss) per share, as their effect would have been anti-dilutive:
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INTEREST AND OTHER INCOME (EXPENSE), NET |
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INTEREST AND OTHER INCOME (EXPENSE), NET | INTEREST AND OTHER INCOME (EXPENSE), NET Interest and other income (expense), net, are summarized in the following table:
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Schedule II |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Atmel and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates in these financial statements include provision for excess and obsolete inventory, sales return reserves, share-based compensation expense, allowances for doubtful accounts receivable, warranty accruals, estimates for useful lives associated with long-lived assets, asset impairment charges, recoverability of goodwill and intangible assets, restructuring charges, fair value of net assets held for sale, liabilities for uncertain tax positions, and deferred tax asset valuation allowances. Actual results could differ from those estimates. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments For certain of Atmel's financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable and other current assets and current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these items. Investments in debt securities are carried at fair value based on quoted market prices. The estimated fair value has been determined by the Company using available market information. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that Atmel could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. |
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Cash and Cash Equivalents | Cash and Cash Equivalents Investments with an original or remaining maturity of 90 days or less, as of the date of purchase, are considered cash equivalents, and consist of highly liquid money market instruments. Atmel maintains its cash balances at a variety of financial institutions and has not experienced any material losses relating to such instruments. Atmel invests its excess cash in accordance with its investment policy that has been reviewed and approved by the Board of Directors. |
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Investments | Investments All of the Company's investments are classified as available-for-sale. Available-for-sale securities with an original or remaining maturity of greater than 90 days, as of the date of purchase, are classified as short-term when they represent investments of cash that are intended for use in current operations. Investments in available-for-sale securities are reported at fair value with unrealized (losses) gains, net of related tax, included as a component of accumulated other comprehensive income. The Company's marketable securities include auction-rate securities. The Company monitors its investments for impairment periodically and recognizes an impairment charge when the decline in the fair value of these investments is judged to be other-than temporary. Significant judgment is used to identify events or circumstances that would likely have a significant adverse effect on the future use of the investment. The Company considers various factors in determining whether impairment is other-than-temporary, including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and the Company's ability and intent to hold the investment for a period of time that may be sufficient for anticipated recovery of market value. The Company's investments include an auction-rate security with a fair value of $1.1 million at both December 31, 2015 and 2014, which is structured with short-term interest rate reset dates of either 7 days or 28 days, and contractual maturities that can be in excess of 10 years. The Company evaluates its portfolio by continuing to monitor the credit rating and interest yields of these auction-rate securities and status of reset at each auction date. |
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Accounts Receivable | Accounts Receivable An allowance for doubtful accounts is calculated based on the aging of Atmel's accounts receivable, historical experience, and management judgment. Atmel writes off accounts receivable against the allowance when Atmel determines a balance is uncollectible and no longer intends to actively pursue collection of the receivable. The Company's bad debt expenses (recoveries) were not material for the years ended December 31, 2015 and 2013. In the year ended December 31, 2014, the Company recorded $4.1 million in bad debt expenses primarily due to an amount deemed uncollectible from a contract manufacturer. |
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Inventories | Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or market. Market is based on estimated net realizable value. Determining market value of inventories involves numerous judgments, including estimating average selling prices and sales volumes for future periods. The Company establishes provisions for lower of cost or market and excess and obsolescence write-downs, which are charged to cost of revenue. The Company makes a determination regarding excess and obsolete inventory on a quarterly basis. This determination requires an estimation of the future demand for the Company’s products and involves an analysis of historical and forecasted sales levels by product, competitiveness of product offerings, market conditions, product lifecycles, as well as other factors. Excess and obsolete inventory write-downs are recorded when the inventory on hand exceeds management’s estimate of future demand for each product and are charged to cost of revenue. The Company’s inventories include parts that have a potential for rapid technological obsolescence and are sold in a highly competitive industry. The Company writes down inventory that is considered excess or obsolete. When the Company recognizes a loss on such inventory, it establishes a new, lower-cost basis for that inventory, and subsequent changes in facts and circumstances will not result in the restoration or increase in that newly established cost basis. If inventory with a lower-cost basis is subsequently sold, it will result in higher gross margin for the products making up that inventory. |
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Fixed Assets | Fixed Assets The Company's business requires investment in manufacturing facilities that are technologically advanced but can quickly become significantly underutilized or rendered obsolete by rapid changes in demand for semiconductors produced in those facilities. The Company estimates the useful life of its manufacturing equipment, which is the largest component of our fixed assets, to be seven years. The Company bases its estimate on its experience with acquiring, using and disposing of equipment over time. Useful lives for fixed assets may be evaluated from time to time to determine whether they require adjustment to reflect new or additional information. During the first quarter of 2014, the Company revised its accounting estimate for the expected useful life of manufacturing equipment from five years to seven years. In reviewing the useful life of the Company's remaining manufacturing equipment during the fourth quarter of 2013, the Company determined that the adoption of its manufacturing "lite" strategy, the consolidation of its back-end subcontracting activities during the prior several years and the transition of its business to common test platforms had resulted in an extension of the economic life of those assets. Management believes that this change better reflects the expected economic benefits from the use of its manufacturing equipment over time based on an analysis of historical experience and general industry practices. The revised useful life of the manufacturing equipment decreased the Company's depreciation by approximately $18.0 million for the year ended December 31, 2014. This change had the effect of increasing net income by $12.8 million for the year ended December 31, 2014. Fixed assets are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the following estimated useful lives:
Maintenance, repairs and minor upgrades are expensed as incurred. |
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Investments in Privately-Held Companies | Investments in Privately-Held Companies Periodically, the Company makes minority investments in certain privately-held companies to further its strategic objectives. Investments in privately-held companies are accounted for at historical cost or, if Atmel has significant influence over the investee, using the equity method of accounting. Atmel's proportionate share of income or losses from investments accounted for under the equity method, and any gain or loss on disposal, are recorded in interest and other income (expense), net. Investments in privately- held companies are included in other assets on the Company's consolidated balance sheets. For investments in privately-held companies, the Company monitors for impairment annually, or when indicators arise, and reduces their carrying values to fair value when the declines are determined to be other-than-temporary. |
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Revenue Recognition | Revenue Recognition The Company sells its products to original equipment manufacturers ("OEMs") and distributors and recognizes revenue when the rights and risks of ownership have passed to the customer, when persuasive evidence of an arrangement exists, the product has been delivered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Allowances for sales returns and other credits are recorded at the time of sale. Contracts and customer purchase orders are used to determine the existence of an arrangement. Shipping documents are used to verify delivery. The Company assesses whether the price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. The Company assesses collectibility based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history. Sales terms do not include post-shipment obligations except for product warranty. For sales to certain distributors (primarily based in the U.S. and Europe) with agreements allowing for price protection and product returns, the Company historically has not had the ability to estimate future claims at the point of shipment, and given that price is not fixed or determinable at that time, revenue is not recognized until the distributor sells the product to its end customer. At the time of shipment to these distributors, the Company records a trade receivable for the selling price as there is a legally-enforceable right to payment, relieves inventory for the carrying value of goods shipped since legal title has passed to the distributor, and records the gross margin in deferred income on shipments to distributors on the consolidated balance sheets. For sales to independent distributors in Asia, excluding Japan, the Company invoices these distributors at full list price upon shipment and issues a rebate, or "credit," once product has been sold to the end customer and the distributor has met certain reporting requirements. After reviewing the more limited pricing, rebate and quotation-related terms, the Company concluded that it could reliably estimate future claims, and therefore recognized revenue at the point of shipment for its Asian distributors (excluding Japan), assuming all of the other revenue recognition criteria are met, utilizing amounts invoiced, less estimated future claims. |
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Grant Recognition | Grant Recognition Subsidy grants from government organizations are amortized as a reduction of expenses over the period the related obligations are fulfilled. Recognition of future subsidy benefits will depend on the Company's achievement of certain technical milestones, capital investment spending goals, employment goals and other requirements. The Company recognized subsidy grant benefits as a reduction of either cost of revenue or research and development expenses, depending on the nature of the grant. The reduction to research and development expenses amounted to $5.8 million, and $4.0 million, and $5.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. The amounts recognized as a reduction of cost of revenue were not material in each of those years. From time to time, the Company receives economic incentive grants and allowances from European governments, agencies and research organizations targeted at preserving employment at specific locations. The subsidy grant agreements typically contain economic incentive, headcount, capital and research and development expenditures and other conditions that must be met to receive and retain grant benefits. Noncompliance with the conditions of the grants could result in the forfeiture of all or a portion of any future amounts to be received, as well as the repayment of all or a portion of amounts previously received. In addition, the Company may need to record charges to reverse grant benefits recorded in prior periods as a result of changes to its plans for headcount, project spending, or capital investment at any of these specific locations. If the Company is unable to comply with any of the conditions in the grant agreements, the Company may face adverse actions from the government agencies providing the grants. If the Company were required to repay grant benefits, its results of operations and financial position could be materially adversely affected by the amount of such repayments. As of December 31, 2015 and 2014, the total liability for grant benefits subject to repayment was $0.5 million and $0.6 million and is included in accrued and other liabilities on the consolidated balance sheets. |
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Advertising Costs | Advertising Costs Atmel expenses all advertising costs as incurred. Advertising costs were not significant for the years ended December 31, 2015, 2014 an |
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Foreign Currency Translation | Foreign Currency Translation Certain of Atmel's major international subsidiaries use their local currencies as their respective functional currencies. Financial statements of these foreign subsidiaries are translated into U.S. dollars at current rates, except that revenue, costs and expenses are translated at average current rates during each reporting period. The effect of translating the accounts of these foreign subsidiaries into U.S. dollars has been included in the consolidated statements of stockholders' equity and comprehensive (loss) income as a foreign currency translation adjustment. Gains and losses from re-measurement of assets and liabilities denominated in currencies other than the respective functional currencies are included in the consolidated statements of operations. Gains due to foreign currency re-measurement included in interest and other income (expense), net for the years ended December 31, 2015, 2014 and 2013 were $9.1 million, $0.8 million and $2.3 million, respectively. |
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Share-Based Compensation | Share-Based Compensation The Company determines the fair value of options and ESPP shares on the measurement date utilizing an option-pricing model, which is affected by its common stock price, as well as changes in assumptions regarding a number of subjective variables. These variables include, but are not limited to: expected common stock price volatility over the term of the option awards, as well as the projected employee option exercise behaviors during the expected period between the stock option grant date and stock option exercise date. For performance-based restricted stock units, the Company is required to assess the probability of achieving certain financial objectives at the end of each reporting period. Based on the assessment of this probability, which requires subjective judgment, the Company records share-based compensation expense before the performance criteria are actually fully achieved, which may then be reversed in future periods if the Company determines that it is no longer probable that the objectives will be achieved. The expected cost of each award is reflected over the performance period and is reduced for estimated forfeitures. The fair value of a restricted stock unit is equivalent to the market price of the Company's common stock on the measurement date. The Company recognizes stock-based compensation expense on a straight-line basis over the service period of each separately vesting portion of the award, which is generally three years. |
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Valuation of Goodwill and Intangible Assets | Valuation of Goodwill and Intangible Assets Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. The Company reviews goodwill and intangible assets with indefinite lives for impairment annually at the beginning of the fourth quarter of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. While the Company is permitted to conduct a qualitative assessment to determine whether it is necessary to perform a two-step quantitative goodwill impairment test, for the annual goodwill impairment test in the fourth quarter of fiscal 2015, the Company performed a quantitative test for all of our reporting units with goodwill. The performance of the test involves a two-step process. The first step requires comparing the fair value of each of the reporting units to its net book value, including goodwill. The Company has three reporting units with goodwill, the fair values of which are determined based on an income approach, whereby the Company calculates the fair value of the reporting unit based on the present value of estimated future cash flows, which are formed by evaluating operating plans. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process is only performed if a potential impairment exists, and it involves determining the implied fair value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then the Company records an impairment loss equal to the difference. The Company has not been required to perform this second step of the process because the fair value of the reporting units have exceeded their net book value for the year ended December 31, 2015. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions may include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions. Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit. In addition, the Company makes certain judgments and assumptions in allocating shared assets and liabilities to individual reporting units to determine the carrying amount for each reporting unit. Purchased intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that the Company may not be able to recover the asset's carrying amount. |
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Certain Risks and Concentrations | Certain Risks and Concentrations Atmel sells its products primarily to OEMs and distributors in North America, Europe and Asia, generally without requiring any collateral. Atmel performs ongoing credit evaluations and seeks to maintain adequate allowances for potential credit losses. Two distributors accounted for 16% and 12% of accounts receivable at December 31, 2015 and no end-customer accounted for 10% or more of accounts receivable at December 31, 2015. Two distributors accounted for 17% and 11% of accounts receivable at December 31, 2014 and no end-customer accounted for 10% or more of accounts receivable at December 31, 2014. The Company had two distributors that accounted for 18% and 10% of net revenue in the year ended December 31, 2015. The Company had two distributors that accounted for 16% and 10% of net revenue in the year ended December 31, 2014. The Company had one distributor and one end-customer that accounted for 14% and 12%, respectively, of net revenue in the year ended December 31, 2013. The semiconductor industry is characterized by rapid technological change, competitive pricing pressures and cyclical market patterns. The Company's financial results are affected by a wide variety of factors, including general economic conditions worldwide, economic conditions specific to the semiconductor industry, the timely introduction of new products and implementation of new manufacturing process technologies, and the ability to safeguard patents and intellectual property in a rapidly evolving market. In addition, the semiconductor industry has historically been cyclical and subject to significant economic downturns at various times. As a result, Atmel may experience significant period-to-period fluctuations in future operating results due to the factors mentioned above or other factors. Atmel believes that its existing cash, cash equivalents and investments together with cash flow from operations and future withdrawals from a new credit facility, will be sufficient to support its liquidity and capital investment activities for the next twelve months. Additionally, the Company relies on a limited number of contract manufacturers to provide assembly services for its products. The inability of a contract manufacturer or supplier to fulfill supply requirements of the Company could materially affect future operating results. |
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Income Taxes | Income Taxes The Company's provision for income tax comprises its current tax liability and change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Valuation allowances are provided to reduce deferred tax assets to an amount that in management's judgment is more likely than not to be recoverable against future taxable income. No U.S. taxes are provided on earnings of non-U.S. subsidiaries to the extent such earnings are deemed to be indefinitely reinvested. The Company's income tax calculations are based on application of the respective U.S. federal, state or foreign tax law. The Company's tax filings, however, are subject to audit by the relevant tax authorities. Accordingly, the Company recognizes tax liabilities based upon its estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. To the extent the final tax liabilities are different than the amounts originally accrued, the increases or decreases are recorded as income tax expense or benefit in the consolidated statements of operations. In assessing the realizability of deferred tax assets, the Company evaluates both positive and negative evidence that may exist and considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the consolidated statements of operations for the period that the adjustment is determined to be required. |
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Long-Lived Assets | Long-Lived Assets Atmel periodically evaluates the recoverability of its long-lived assets. Factors which could trigger an impairment review include the following: (i) significant negative industry or economic trends; (ii) exiting an activity in conjunction with a restructuring of operations; (iii) current, historical or projected losses that demonstrate a likelihood of continuing losses associated with an asset; (iv) significant decline in the Company's market capitalization for an extended period of time relative to net book value; (v) material changes in the Company's manufacturing model; and (vi) management's assessment of future manufacturing capacity requirements. When the Company determines that there is an indicator that the carrying value of long-lived assets may not be recoverable, the assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset from the expected future undiscounted pre-tax cash flows of the related operations. These estimates include assumptions about future conditions such as future revenue, gross margin, operating expenses, and the fair values of certain assets based on appraisals and industry trends. If these cash flows are less than the carrying value of such assets, an impairment loss is recognized for the difference between estimated fair value and carrying value. The measurement of impairment requires management to estimate future cash flows and the fair value of long-lived assets. The evaluation is performed at the lowest levels for which there are identifiable, independent cash flows. Costs that the Company incurs to acquire completed product and process technology are capitalized and amortized on a straight-line basis over three to five years. Capitalized product and process technology costs are amortized over the shorter of the estimated useful life of the technology or the term of the technology agreement. |
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Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed giving effect to all dilutive potential common shares that were outstanding during the period. Dilutive potential common shares consist of incremental common shares issuable upon exercise of stock options, upon vesting of restricted stock units, contingently issuable shares for all periods and assumed issuance of shares under the Company's employee stock purchase plan. No dilutive potential common shares are included in the computation of any diluted per share amount when a loss from continuing operations is reported by the Company. |
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Research and Development | Research and Development Cost incurred in the research and development of Atmel's products is expensed as incurred. Research and development expenses were $230.2 million, $274.6 million and $266.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. In July 2015, the FASB deferred the effective date of ASU 2014-09 so that it will apply to annual reporting periods beginning after December 15, 2017. Early application is permitted to the original effective date of December 15, 2016, in which case ASU 2014-09 would apply to annual reporting periods beginning December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method, nor determined the effect of the standard on its ongoing financial reporting. In July 2015, the FASB amended the existing accounting standards for the measurement of inventory, ASU 2015-11, Inventory. The amendments require inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company is required to adopt the amendments in the first quarter of 2017. The amendments should be applied prospectively with early adoption permitted as of the beginning of an interim or annual reporting period. The Company does not expect that the adoption of these amendments will have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires an entity to classify deferred tax liabilities and assets as noncurrent on the balance sheet. ASU 2015-17 is effective for annual and interim reporting periods beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted as of the beginning of the interim or annual reporting period. The Company early adopted ASU 2015-17 as of December 31, 2015 on a prospective basis. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires, among other things, the recognition of lease assets and lease liabilities on the balance sheet by lessees for certain leases classified as operating leases under previous GAAP. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method with early adoption permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Useful Lives of Fixed Assets | ation. Depreciation is computed using the straight-line method over the following estimated useful li Fixed assets, net consist of the following:
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BALANCE SHEET DETAILS (Tables) |
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Schedule of Components of inventories | Inventories are comprised of the following:
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Schedule of Components of Prepaids and Other Current Assets | Prepaids and other current assets consist of the following:
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Schedule of Other Assets | Other assets consist of the following:
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Schedule of Accrued and Other Liabilities | Accrued and other liabilities consist of the following:
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Schedule of Other Long-term Liabilities | Other long-term liabilities consist of the following:
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BUSINESS COMBINATIONS (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
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FAIR VALUE OF ASSETS AND LIABILITIES (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investments Measured at Fair Value on a Recurring Basis | The tables below present the balances of investments measured at fair value on a recurring basis:
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FIXED ASSETS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fixed Assets | ation. Depreciation is computed using the straight-line method over the following estimated useful li Fixed assets, net consist of the following:
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INTANGIBLE ASSETS, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table summarizes activities related to the carrying value of goodwill:
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Schedule of Intangible assets, net | Intangible assets, net, consist of technology licenses and acquisition-related intangible assets as follows:
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Schedule of Estimated Future Amortization | The following table presents the estimated future amortization of the technology licenses and acquisition-related intangible assets:
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STOCKHOLDERS' EQUITY (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allocation of Share-based Compensation Costs | The components of the Company's share-based compensation expense are summarized below:
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Schedule of Share-based Compensation, Net of Amount Capitalized | The following table summarizes share-based compensation, net of amount capitalized in (released from) inventory, included in operating results:
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Activity under the entity's 2005 Stock Plan | Activity under Atmel’s 2005 Stock Plan is set forth below:
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Schedule of Restricted Stock Units | Activity related to restricted stock units is set forth below:
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Schedule of Options Outstanding and Exercisable by Range of Exercise Price |
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Assumptions Used to Estimate the Fair Value of the Company's ESPP Shares | The following assumptions were utilized to determine the fair value of the 2010 ESPP shares:
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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income, Net of Tax | The following table summarizes the changes in accumulated balances of other comprehensive (loss) income, net of tax:
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COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Aggregate non-cancelable future minimum rental payments under operating leases are as follows:
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Schedule of Activity Related to Product Warranty Liability | The following table summarizes the activity related to the product warranty liability:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income (loss) before Income Taxes | The components of income (loss) before income taxes are as follows:
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Schedule of Provision for Income Taxes | The provision for income taxes consists of the following:
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Schedule of Effective Income Tax Rate Reconciliation | The Company's effective tax rate differs from the U.S. Federal statutory income tax rate as follows:
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Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that constitute significant portions of the deferred tax assets and deferred tax liabilities are presented below:
_________________________________________
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Summary of Income Tax Contingencies |
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PENSION PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Aggregate Net Pension Expense | The aggregate net pension expense relating to these three plans are as follows:
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Schedule of Changes in Projected Benefit Obligation and Accumulated Benefit Obligation | The change in projected benefit obligation and the accumulated benefit obligation, were as follows:
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Schedule of Actuarial Assumptions Used to Determine Benefit Obligations | Actuarial assumptions used to determine benefit obligations for the plans were as follows:
|
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Schedule of Expected Benefit Payments | Future estimated expected benefit payments over the next 10 years are as follows:
|
OPERATING AND GEOGRAPHICAL SEGMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Information about Reportable Segments
|
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Reconciliation of Segment Information to Consolidated Statements of Operations | The Company does not allocate assets by segment, as management does not use asset information to measure or evaluate a segment’s performance. Reconciliation of Segment Information to Consolidated Statements of Operations
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Schedule of Geographic Sources of Revenue | Geographic sources of revenue were as follows:
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Schedule of Physical Locations of Long-lived Assets | Physical locations of tangible long-lived assets were as follows:
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SALE OF ASSETS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Summary of Recognized Gain | Upon closing this transaction, the Company recognized a gain that is summarized in the following table:
|
RESTRUCTURING CHARGES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Summarizing the Activity Related to the Accrual for Restructuring Charges | The following table summarizes the activity related to the accrual for restructuring charges detailed by event:
|
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO ATMEL COMMON STOCKHOLDERS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | A reconciliation of the numerator and denominator of basic and diluted net income (loss) per share is as follows:
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Schedule of Antidilutive Securities | The following table summarizes securities that were not included in the “Weighted-average shares - diluted” used for calculation of diluted net income (loss) per share, as their effect would have been anti-dilutive:
|
INTEREST AND OTHER INCOME (EXPENSE), NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest and Other Income (Expense), Net | Interest and other income (expense), net, are summarized in the following table:
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives of Fixed Assets) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 10 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 20 years |
Machinery and Equipment and Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Machinery and Equipment and Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 7 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
BALANCE SHEET DETAILS (Schedule of Components of inventories) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 9,739 | $ 12,633 |
Work-in-progress | 161,356 | 192,206 |
Finished goods | 86,281 | 73,403 |
Inventories | $ 257,376 | $ 278,242 |
BALANCE SHEET DETAILS (Schedule of Components of Prepaids and Other Current Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Income tax receivable | $ 6,723 | $ 8,559 |
Prepaid income taxes | 5,989 | 7,258 |
Value-added tax receivable | 2,617 | 2,375 |
Deferred income tax assets | 0 | 45,518 |
Other | 19,970 | 25,391 |
Prepaids and other current assets | $ 35,299 | $ 89,101 |
BALANCE SHEET DETAILS (Schedule of Other Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred income tax assets | $ 157,929 | $ 117,278 |
Investments in privately-held companies | 1,663 | 4,466 |
Auction-rate securities | 1,066 | 1,066 |
Other | 43,018 | 43,538 |
Other assets | $ 203,676 | $ 166,348 |
BALANCE SHEET DETAILS (Schedule of Accrued and Other Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accrued salaries and benefits and other employee related | $ 33,061 | $ 49,402 |
Accrued Vacation, Current | 16,469 | 18,154 |
Accrued restructuring, current portion | 7,886 | 14,607 |
Income taxes payable | 6,713 | 4,346 |
Warranty accruals and accrued returns | 5,258 | 5,397 |
Royalties and licenses | 5,060 | 8,332 |
Other | 38,565 | 39,458 |
Accrued and other liabilities | $ 113,012 | $ 139,696 |
BALANCE SHEET DETAILS (Schedule of Other Long-term Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Income taxes payable | $ 49,965 | $ 48,547 |
Accrued pension liability | 38,884 | 49,278 |
Accrued restructuring, net of current portion | 726 | 5,118 |
Other | 27,967 | 20,727 |
Other long-term liabilities | $ 117,542 | $ 123,670 |
BALANCE SHEET DETAILS (Narrative) (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Outstanding note payable | $ 1.9 | |
Outstanding note payable included in other long-term liabilities | 1.6 | |
Outstanding note payable included in accounts payable | 0.3 | |
Payment to equity method investee relating to a cost sharing arrangement for facility services | $ 5.8 | $ 6.8 |
BUSINESS COMBINATIONS (Schedule of Business Acquisitions, by Acquisition) (Total Purchase Price) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2014
USD ($)
| |
NMI [Member] [Member] | |
Business Acquisition [Line Items] | |
Total cash consideration | $ 139.6 |
FAIR VALUE OF ASSETS AND LIABILITIES (Narrative) (Details) |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Maximum percentage of assets measured using Level 3 valuation methodologies to total assets | 1.00% | 1.00% |
FIXED ASSETS, NET (Schedule of Fixed Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,431,400 | $ 1,491,384 |
Less: Accumulated depreciation and amortization | (1,300,246) | (1,333,103) |
Property, Plant and Equipment, Net | 131,154 | 158,281 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 7,456 | 11,370 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 464,918 | 516,643 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 934,174 | 934,951 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 17,889 | 18,620 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 6,963 | $ 9,800 |
FIXED ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 43,600 | $ 48,400 | $ 66,600 |
Impairment of Long-Lived Assets Held-for-use | 25,300 | ||
Asset impairment charges | $ 0 | 26,624 | $ 7,502 |
Cost of revenue | Equipment Deposits [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | $ 1,300 |
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule of Goodwill) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill [Roll Forward] | ||
Goodwill | $ 191,088 | $ 108,240 |
Goodwill recorded in connection with acquisition | 86,123 | |
Effects of foreign currency translation | (2,851) | (3,275) |
Goodwill | 188,237 | 191,088 |
Micro Controllers [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 190,482 | 107,400 |
Goodwill recorded in connection with acquisition | 86,123 | |
Effects of foreign currency translation | (2,682) | (3,041) |
Goodwill | 187,800 | 190,482 |
Application Specific Integrated Circuit [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 606 | 840 |
Goodwill recorded in connection with acquisition | 0 | |
Effects of foreign currency translation | (169) | (234) |
Goodwill | $ 437 | $ 606 |
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule of Estimated Future Amortization) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
2016 | $ 8,427 | |
2017 | 7,362 | |
2018 | 4,936 | |
2019 | 1,568 | |
2020 | 438 | |
Thereafter | 16,212 | |
Total future amortization | 38,943 | $ 50,286 |
Patented Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2016 | 1,598 | |
2017 | 1,396 | |
2018 | 107 | |
2019 | 0 | |
2020 | 0 | |
Thereafter | 0 | |
Total future amortization | 3,101 | |
Acquisition Related Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2016 | 6,829 | |
2017 | 5,966 | |
2018 | 4,829 | |
2019 | 1,568 | |
2020 | 438 | |
Thereafter | 16,212 | |
Total future amortization | $ 35,842 | $ 45,391 |
GOODWILL AND INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Patented Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 1.9 | $ 1.9 | $ 2.3 |
Acquisition Related Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | 9.5 | 8.9 | 6.0 |
For developed technology [Member] | Acquisition Related Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 3.5 | $ 2.0 | $ 1.1 |
STOCKHOLDERS' EQUITY (Schedule of Allocation of Share-based Compensation Costs) (Details) - Total stock-based compensation expense, excluding acquisition-related charges - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Stock-based compensation expense | |||
Stock-based compensation expense | $ 51,392 | $ 59,679 | $ 43,124 |
Net amounts (capitalized in) released from inventory | (398) | (152) | 670 |
Stock Options [Member] | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 44 | 186 | 1,644 |
Employee Stock [Member] | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 2,381 | 2,803 | 2,858 |
Restricted Stock Units (RSUs) [Member] | |||
Stock-based compensation expense | |||
Stock-based compensation expense | $ 49,365 | $ 56,842 | $ 37,952 |
STOCKHOLDERS' EQUITY (Schedule of Share-based Compensation, Net of Amount Capitalized) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Total stock-based compensation expense, excluding acquisition-related charges | |||
Stock-based compensation expense | |||
Stock-based compensation expense | $ 51,392 | $ 59,679 | $ 43,124 |
Tax benefit | (11,144) | (11,423) | (7,707) |
Total share-based compensation expense, net of income taxes | 40,248 | 48,256 | 35,417 |
Cost of revenue | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 5,900 | 6,356 | 5,889 |
Research and development | |||
Stock-based compensation expense | |||
Stock-based compensation expense | 14,172 | 17,569 | 14,852 |
Selling, general and administrative | |||
Stock-based compensation expense | |||
Stock-based compensation expense | $ 31,320 | $ 35,754 | $ 22,383 |
STOCKHOLDERS' EQUITY (Assumptions Used to Estimate the Fair Value of the Company's ESPP Shares) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Assumptions used to estimate the fair value of the Company ESPPs shares | |||
Expected dividend yield | 1.92% | 0.00% | 0.00% |
Employee Stock [Member] | |||
Assumptions used to estimate the fair value of the Company ESPPs shares | |||
Risk-free interest rate (as a percent) | 0.16% | 0.07% | 0.10% |
Expected life (in years) | 6 months | 6 months | 6 months |
Expected volatility (as a percent) | 33.00% | 31.00% | 44.00% |
STOCKHOLDERS' EQUITY (Share-Based Compensation) (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Stockholders' Equity Note [Abstract] | |||
Excess tax benefit on share-based compensation | $ (1,575) | $ (1,601) | $ (2,260) |
COMMITMENTS AND CONTINGENCIES (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $ 10,939 |
2017 | 8,530 |
2018 | 7,199 |
2019 | 7,263 |
2020 | 6,836 |
Thereafter | 11,606 |
Total | $ 52,373 |
COMMITMENTS AND CONTINGENCIES (Schedule of Activity Related to Product Warranty Liability) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 3,945 | $ 3,686 | $ 4,832 |
Accrual for warranties during the period, net | 3,639 | 3,884 | 2,203 |
Actual costs incurred | (3,760) | (3,625) | (3,349) |
Balance at end of period | $ 3,824 | $ 3,945 | $ 3,686 |
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
Employee
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Long-term Purchase Commitment [Line Items] | |||
Total rental expense | $ 25.8 | $ 27.3 | $ 24.4 |
Capital Addition Purchase Commitments [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Capital purchase commitment | 2.2 | ||
Wafer Purchase Commitment [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Capital purchase commitment | $ 21.8 | ||
Minimum [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Product Warranty Period | 30 days | ||
Maximum [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Product Warranty Period | 3 years | ||
LFoundry Rousset S.A.S. [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Loss Contingency, Number of Plaintiffs | Employee | 500 |
INCOME TAXES (Schedule of Income (loss) before Income Taxes) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||
U.S. | $ 23,235 | $ 3,375 | $ 25,648 |
Foreign | 35,060 | 53,851 | (26,161) |
Income (loss) before income taxes | $ 58,295 | $ 57,226 | $ (513) |
INCOME TAXES (Schedule of Provision for Income Taxes) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ 3,854 | $ (4,739) | $ 4,805 |
Federal, Deferred | 15,806 | 10,013 | (10,220) |
State, Current | 230 | 241 | 35 |
State, Deferred | (355) | 2,522 | (124) |
Foreign, Current | 11,246 | 8,009 | 25,362 |
Foreign, Deferred | 612 | 5,972 | 1,684 |
Provision for income taxes | $ 31,393 | $ 22,018 | $ 21,542 |
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State tax | (1.41%) | 2.85% | 3.56% |
Effect of foreign operations | 16.49% | 2.13% | (3979.63%) |
Recognition of tax credits | (4.28%) | (5.27%) | 875.54% |
Change of valuation allowance | (0.32%) | (2.14%) | (295.93%) |
Effective Income Tax Rate Reconciliation, Costs Related to Acquisitions, Percent | 6.98% | 3.86% | 0.00% |
Audit settlements and IRS refunds | (0.26%) | 1.06% | (828.85%) |
Other, net | 1.64% | 0.96% | (4.15%) |
Effective tax provision rate | 53.84% | 38.45% | (4194.46%) |
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred income tax assets: | ||
Net operating losses | $ 31,402 | $ 37,634 |
Research and development, foreign tax and other tax credits | 71,381 | 55,408 |
Accrued liabilities | 26,534 | 37,380 |
Fixed assets | 49,067 | 54,348 |
Intangible assets | 10,103 | 11,977 |
Deferred income | 10,648 | 10,319 |
Share-based compensation | 2,590 | 3,291 |
Unrealized foreign exchange translation | 3,854 | 2,424 |
Other | 1,307 | 2,363 |
Total deferred income tax assets | 206,886 | 215,144 |
Deferred income tax liabilities: | ||
Foreign losses subject to recapture | (11,510) | (12,164) |
Total deferred tax liabilities | (11,510) | (12,164) |
Less valuation allowance | (37,579) | (40,372) |
Reported as: | ||
Current deferred tax assets | 0 | 45,518 |
Current deferred tax liabilities | 0 | (182) |
Non-current deferred tax assets | 157,929 | 117,278 |
Non-current deferred tax liabilities | (132) | (6) |
Net deferred income tax assets | $ 157,797 | $ 162,608 |
INCOME TAXES (Summary of Income Tax Contingencies) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning gross unrecognized tax benefits | $ 122,825 | $ 119,506 | $ 72,692 |
Increases in balances related to tax positions taken during the current periods | 1,647 | 8,181 | 13,201 |
Increases in balances related to tax positions taken during the prior periods | 316 | 7,453 | 58,253 |
Decreases in balances related to tax positions taken during the prior periods | (6,644) | (9,537) | (13,836) |
Lapse of statute of limitation | (516) | (2,418) | (7,152) |
Settlements and effective settlements | 0 | (360) | (3,652) |
Ending gross unrecognized tax benefits | $ 117,628 | $ 122,825 | $ 119,506 |
PENSION PLANS (Schedule of Aggregate Net Pension Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Pension and Other Postretirement Benefit Expense [Abstract] | |||
Service costs | $ 1,352 | $ 1,526 | $ 1,795 |
Interest costs | 1,394 | 1,509 | 1,430 |
Amortization of actuarial loss | 772 | 47 | 376 |
Settlement and other related gain | 0 | (59) | |
Settlement and other related gain | (1,699) | 0 | (1,607) |
Net pension period cost | $ 1,819 | $ 3,082 | $ 1,935 |
PENSION PLANS (Schedule of Changes in Projected Benefit Obligation and Accumulated Benefit Obligation) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of the year | $ 49,836 | $ 38,916 | |
Service costs | 1,352 | 1,526 | $ 1,795 |
Interest costs | 1,394 | 1,509 | 1,430 |
Curtailment gain | (1,699) | 0 | (1,607) |
Actuarial (gains) losses | (3,354) | 8,753 | |
Benefits paid | (705) | (483) | |
Foreign currency exchange rate changes | (7,225) | (385) | |
Projected benefit obligation at end of the year | 39,599 | 49,836 | $ 38,916 |
Accumulated benefit obligation at end of the year | $ 35,470 | $ 46,092 |
PENSION PLANS (Schedule of Actuarial Assumptions Used to Determine Benefit Obligations) (Details) |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed discount rate | 1.93% | 1.49% | 3.10% |
Assumed compensation rate of increase | 2.90% | 2.90% | 2.40% |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed discount rate | 2.57% | 2.15% | 4.00% |
Assumed compensation rate of increase | 3.00% | 3.00% | 3.00% |
PENSION PLANS (Schedule of Expected Benefit Payments) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Compensation and Retirement Disclosure [Abstract] | |
2016 | $ 673 |
2017 | 550 |
2018 | 847 |
2019 | 1,064 |
2020 | 1,056 |
2021 through 2025 | 8,472 |
Total | $ 12,662 |
OPERATING AND GEOGRAPHICAL SEGMENTS (Schedule of Physical Locations of Long-lived Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | $ 171,711 | $ 206,285 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | 80,500 | 92,466 |
Philippines [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | 53,891 | 56,094 |
France [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | 10,364 | 13,714 |
Germany [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | 7,354 | 17,920 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | 15,036 | 20,237 |
Rest of Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-Lived Assets | $ 4,566 | $ 5,854 |
SALE OF ASSETS Sales of XSense table (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 16, 2015 |
Dec. 31, 2015 |
Sep. 23, 2015 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
atml_FiniteLivedIntangibleAssetsIntellectualPropertyLicenseTerm | 5 years | ||
Royalty Revenue | $ 1,900 | ||
atml_FiniteLivedIntangibleAssetsIntellectualPropertyLicenseOptiontoRenewRenewalPeriod | 10 years | ||
atml_RoyaltyAgreementGuaranteedMinimumRoyalties | $ 16,300 | ||
Disposal Group, Including Discontinued Operation, Consideration | (16,700) | $ (11,500) | |
Finite-lived Intangible Assets, Fair Value Disclosure | 13,123 | ||
atml_DisposalGroupNotDiscontinuedOperationsSuccessFeesandSellingExpenses | 457 | ||
Disposal Group, Including Discontinued Operation, Assets | 961 | ||
Proceeds from Royalties Received | $ 9,300 | ||
atml_FiniteLivedIntangibleAssetsFairValueAssumptionDiscountRate | 40.00% | ||
us-gaap_DisposalGroupNotDiscontinuedOperationGainLossOnDisposal | $ (2,159) |
LOSS FROM EUROPEAN FOUNDRY ARRANGEMENTS Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Loss from European foundry supply [Line Items] | |||
(Recovery) impairment of receivable from foundry supplier | $ 0 | $ 485 | $ 600 |
Take-or-pay Agreement to Purchase Wafers from a European Foundry [Member] | |||
Loss from European foundry supply [Line Items] | |||
Loss (gain) from foundry arrangement | 7,400 | ||
Write-off of excess wafer | 10,400 | ||
Write-off a wafer prepayment | 1,900 | ||
Reduction of previously recorded take-or-pay liability | $ (4,900) |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO ATMEL COMMON STOCKHOLDERS (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to Atmel | $ 26,891 | $ 32,195 | $ (22,055) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 26,902 | $ 35,208 | $ (22,055) |
Reconciliation of the numerator and denominator of basic and diluted net income per share | |||
Weighted-average shares - basic | 418,759 | 419,103 | 427,460 |
Dilutive effect of incremental shares and share equivalents | 1,528 | 1,807 | 0 |
Weighted-average shares - diluted | 420,287 | 420,910 | 427,460 |
Basic | |||
Net income (loss) per share attributable to Atmel common stockholders - basic | $ 0.06 | $ 0.08 | $ (0.05) |
Diluted | |||
Net income (loss) per share attributable to Atmel common stockholders - diluted | $ 0.06 | $ 0.08 | $ (0.05) |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO ATMEL COMMON STOCKHOLDERS (Schedule of Antidilutive Securities) (Details) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Earnings Per Share [Abstract] | |||
Employee stock options and restricted stock units outstanding | 6,049 | 6,879 | 11,860 |
Schedule of Interest and Other Income (Expense), Net (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Interest and other income (expense), net | |||
Interest and other income (expense) | $ 1,117 | $ (199) | $ 1,911 |
Interest expense | (2,681) | (2,618) | (2,208) |
Foreign exchange transaction gains | 9,098 | 812 | 2,256 |
Total | $ 7,534 | $ (2,005) | $ 1,959 |
Schedule II (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2011 |
|
Allowance for doubtful accounts receivable: | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 5,861 | $ 5,945 | $ 1,926 | $ 11,005 |
Charges (Credits) to Expense | (98) | 4,054 | (22) | |
Deductions- Write-offs | 14 | (35) | (9,057) | |
Balance at End of Year | 5,861 | 5,945 | 1,926 | |
Valuation/Allowance for deferred tax assets: | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 37,579 | 40,372 | 41,321 | $ 41,271 |
Charges (Credits) to Expense | 570 | 3,240 | 3,402 | |
Deductions- Write-offs | (3,363) | (4,189) | (3,352) | |
Balance at End of Year | $ 37,579 | $ 40,372 | $ 41,321 |
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