Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | OLED | ||
Entity Registrant Name | UNIVERSAL DISPLAY CORPORATION | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Central Index Key | 0001005284 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-12031 | ||
Entity Tax Identification Number | 23-2372688 | ||
Entity Address, Address Line One | 250 Phillips Boulevard | ||
Entity Address, City or Town | Ewing | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 08618 | ||
City Area Code | 609 | ||
Local Phone Number | 671-0980 | ||
Entity Common Stock, Shares Outstanding | 47,365,600 | ||
Entity Public Float | $ 320,500,461 | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2024 Annual Meeting of Shareholders, which is to be filed with the Securities and Exchange Commission no later than April 29, 2024 (the first business day after the 120 th day following the end of the registrant's fiscal year), are incorporated by reference into Part III of this report. | ||
Auditor Firm ID | 185 | ||
Auditor Name | KPMG, LLP | ||
Auditor Location | Philadelphia, PA, USA |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 91,985 | $ 93,430 | |
Short-term investments | 422,137 | 484,345 | |
Accounts receivable | 139,850 | 92,664 | |
Inventory | 175,795 | 183,220 | |
Other current assets | 87,365 | 45,791 | |
Total current assets | 917,132 | 899,450 | |
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $143,908 and $117,118 | 175,150 | 143,445 | |
ACQUIRED TECHNOLOGY, net of accumulated amortization of $186,850 and $189,671 | 90,325 | [1] | 38,382 |
OTHER INTANGIBLE ASSETS, net of accumulated amortization of $10,414 and $8,989 | 6,874 | 8,247 | |
GOODWILL | 15,535 | 15,535 | |
INVESTMENTS | 299,548 | 259,861 | |
DEFERRED INCOME TAXES | 59,108 | 58,161 | |
OTHER ASSETS | 105,289 | 109,739 | |
TOTAL ASSETS | 1,668,961 | 1,532,820 | |
CURRENT LIABILITIES: | |||
Accounts payable | 10,933 | 9,519 | |
Accrued expenses | 52,080 | 51,002 | |
Deferred revenue | 47,713 | 45,599 | |
Other current liabilities | 8,096 | 29,577 | |
Total current liabilities | 118,822 | 135,697 | |
DEFERRED REVENUE | 12,006 | 18,279 | |
RETIREMENT PLAN BENEFIT LIABILITY | 52,249 | 59,790 | |
OTHER LIABILITIES | 38,658 | 43,685 | |
Total liabilities | 221,735 | 257,451 | |
COMMITMENTS AND CONTINGENCIES (Note 18) | |||
SHAREHOLDERS' EQUITY: | |||
Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500) | 2 | 2 | |
Common Stock, par value $0.01 per share, 200,000,000 shares authorized, 48,731,026and 49,136,030 shares issued, and 47,365,378 and 47,770,382 share outstanding at December 31, 2023 and December 31, 2022, respectively | 487 | 491 | |
Additional paid-in capital | 699,554 | 681,335 | |
Retained earnings | 789,553 | 653,277 | |
Accumulated other comprehensive loss | (1,086) | (18,452) | |
Treasury stock, at cost (1,365,648 shares at December 31, 2023 and December 31, 2022) | (41,284) | (41,284) | |
Total shareholders’ equity | 1,447,226 | 1,275,369 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,668,961 | $ 1,532,820 | |
[1] During the year ended December 31, 2023, the gross value and accumulated amortization associated with the PD-LD, Inc. and Motorola patent portfolios have been removed from the table as the underlying patents have reached the end of their useful lives. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 143,908 | $ 117,118 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 186,850 | [1] | 189,671 |
Other Finite-Lived Intangible Assets, Accumulated Amortization | $ 10,414 | $ 8,989 | |
SHAREHOLDERS' EQUITY: | |||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred Stock, shares authorized ( in shares) | 5,000,000 | 5,000,000 | |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common Stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | |
Common Stock, shares issued (in shares) | 48,731,026 | 49,136,030 | |
Common Stock, shares outstanding (in shares) | 47,365,378 | 47,770,382 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |||
Treasury Stock, Common, Shares | 1,365,648 | 1,365,648 | |
Treasury Stock, Preferred, Shares | 1,365,648 | 1,365,648 | |
Series A Nonconvertible Preferred Stock [Member] | |||
Shareholders' Equity A Nonconvertible Preferred Stock | |||
Preferred Stock, shares issued (in shares) | 200,000 | 200,000 | |
Preferred Stock, shares outstanding (in shares) | 200,000 | 200,000 | |
Preferred Stock, liquidation value per share (in dollars per share) | $ 7.5 | $ 7.5 | |
Preferred Stock, liquidation value | $ 1,500 | $ 1,500 | |
[1] During the year ended December 31, 2023, the gross value and accumulated amortization associated with the PD-LD, Inc. and Motorola patent portfolios have been removed from the table as the underlying patents have reached the end of their useful lives. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUE: | |||
Total revenue | $ 576,429 | $ 616,619 | $ 553,525 |
COST OF SALES | 135,376 | 127,896 | 114,991 |
Gross margin | 441,053 | 488,723 | 438,534 |
OPERATING EXPENSES: | |||
Research and development | 130,481 | 117,062 | 99,673 |
Selling, general and administrative | 67,387 | 77,886 | 80,372 |
Amortization of acquired technology and other intangible assets | 15,993 | 17,459 | 21,994 |
Patent costs | 9,356 | 8,329 | 8,160 |
Royalty and license expense | 647 | 877 | 691 |
Total operating expenses | 223,864 | 221,613 | 210,890 |
OPERATING INCOME | 217,189 | 267,110 | 227,644 |
Interest income, net | 28,166 | 7,811 | 505 |
Other (loss) income, net | (184) | (6,691) | 98 |
Interest and other income, net | 27,982 | 1,120 | 603 |
Income before income taxes | 245,171 | 268,230 | 228,247 |
INCOME TAX EXPENSE | (42,160) | (58,169) | (44,034) |
NET INCOME | $ 203,011 | $ 210,061 | $ 184,213 |
NET INCOME PER COMMON SHARE: | |||
BASIC | $ 4.25 | $ 4.41 | $ 3.87 |
DILUTED | $ 4.24 | $ 4.4 | $ 3.87 |
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE: | |||
BASIC | 47,559,669 | 47,390,352 | 47,296,447 |
DILUTED | 47,622,763 | 47,468,507 | 47,365,435 |
CASH DIVIDEND DECLARED PER COMMON SHARE | $ 1.4 | $ 1.2 | $ 0.8 |
Material sales | |||
REVENUE: | |||
Total revenue | $ 322,029 | $ 331,081 | $ 318,623 |
Royalty and license fees | |||
REVENUE: | |||
Total revenue | 238,389 | 267,115 | 219,032 |
Contract research services | |||
REVENUE: | |||
Total revenue | $ 16,011 | $ 18,423 | $ 15,870 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 203,011 | $ 210,061 | $ 184,213 |
OTHER COMPREHENSIVEINCOME (LOSS), NET OF TAX: | |||
Unrealized gain (loss) on available-for-sale securities, net of tax of ($351), none and $65, respectively | 8,745 | (7,745) | (233) |
Employee benefit plan: | |||
Actuarial gain on retirement plan, net of tax of ($2,168), ($1,667) and ($1,336), respectively | 7,207 | 5,971 | 13,620 |
Plan amendment cost, net of tax of none, none and $79, respectively | 0 | 0 | (283) |
Amortization of prior service cost and actuarial loss for retirement plan included in net periodic pension costs net of tax of ($299), ($569) and ($1,316), respectively | 996 | 2,037 | 4,719 |
Net change in employee benefit plan | 8,203 | 8,008 | 18,056 |
Change in cumulative foreign currency translation adjustment | 418 | (480) | (39) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 17,366 | (217) | 17,784 |
COMPREHENSIVE INCOME | $ 220,377 | $ 209,844 | $ 201,997 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on available-for-sale securities, tax | $ (351) | $ 0 | $ 65 |
Actuarial gain on retirement plan, tax | (2,168) | (1,667) | (1,336) |
Plan amendment cost | 0 | 0 | 79 |
Amortization of prior service cost and actuarial loss for retirement plan included in net periodic pension costs, tax | $ (299) | $ (569) | $ (1,316) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock, Common [Member] | Series A Nonconvertible Preferred Stock [Member] Preferred Stock [Member] |
BALANCE at Dec. 31, 2020 | $ 912,714 | $ 490 | $ 635,595 | $ 353,930 | $ (36,019) | $ (41,284) | $ 2 |
BALANCE (in shares) at Dec. 31, 2020 | 49,013,476 | 1,365,648 | 200,000 | ||||
Net income | 184,213 | 184,213 | |||||
Other comprehensive income (loss) | 17,784 | 17,784 | |||||
Cash dividend | (37,931) | (37,931) | |||||
Issuance of common stock to employees | 34,472 | $ 1 | 34,471 | ||||
Issuance of common stock to employees (in shares) | 63,969 | ||||||
Shares withheld for employee taxes | (14,949) | (14,949) | |||||
Shares withheld for employee taxes (in shares) | (29,179) | ||||||
Issuance of common stock to Board of Directors and Scientific Advisory Board | 1,704 | 1,704 | |||||
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | 8,502 | ||||||
Issuance of common stock to employees under an ESPP | 1,907 | 1,907 | |||||
Issuance of common stock to employees under an ESPP (in shares) | 9,156 | ||||||
BALANCE at Dec. 31, 2021 | 1,099,914 | $ 491 | 658,728 | 500,212 | (18,235) | $ (41,284) | $ 2 |
BALANCE (in shares) at Dec. 31, 2021 | 49,065,924 | 1,365,648 | 200,000 | ||||
Net income | 210,061 | 210,061 | |||||
Other comprehensive income (loss) | (217) | (217) | |||||
Cash dividend | (56,996) | (56,996) | |||||
Issuance of common stock to employees | 27,907 | 27,907 | |||||
Issuance of common stock to employees (in shares) | 72,769 | ||||||
Shares withheld for employee taxes | $ (9,209) | (9,209) | |||||
Shares withheld for employee taxes (in shares) | (31,938) | ||||||
Common shares repurchased (in shares) | 0 | ||||||
Issuance of common stock to Board of Directors and Scientific Advisory Board | $ 1,866 | 1,866 | |||||
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | 12,218 | ||||||
Issuance of common stock to employees under an ESPP | 2,043 | 2,043 | |||||
Issuance of common stock to employees under an ESPP (in shares) | 17,057 | ||||||
BALANCE at Dec. 31, 2022 | 1,275,369 | $ 491 | 681,335 | 653,277 | (18,452) | $ (41,284) | $ 2 |
BALANCE (in shares) at Dec. 31, 2022 | 49,136,030 | 1,365,648 | 200,000 | ||||
Net income | 203,011 | 203,011 | |||||
Other comprehensive income (loss) | 17,366 | 17,366 | |||||
Cash dividend | (66,735) | (66,735) | |||||
Issuance of common stock to employees | 21,793 | $ 1 | 21,792 | ||||
Issuance of common stock to employees (in shares) | 145,428 | ||||||
Shares withheld for employee taxes | $ (8,206) | $ 0 | (8,206) | ||||
Shares withheld for employee taxes (in shares) | (58,512) | ||||||
Common shares repurchased (in shares) | 0 | ||||||
Issuance of common stock to Board of Directors and Scientific Advisory Board | $ 2,074 | 2,074 | |||||
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | 16,808 | ||||||
Issuance of common stock to employees under an ESPP | 2,554 | 2,554 | |||||
Issuance of common stock to employees under an ESPP (in shares) | 17,513 | ||||||
Shares Issued, Shares, Share-Based Payment Arrangement, Forfeited | (526,241) | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Forfeitures | 0 | $ (5) | 5 | ||||
BALANCE at Dec. 31, 2023 | $ 1,447,226 | $ 487 | $ 699,554 | $ 789,553 | $ (1,086) | $ (41,284) | $ 2 |
BALANCE (in shares) at Dec. 31, 2023 | 48,731,026 | 1,365,648 | 200,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 203,011 | $ 210,061 | $ 184,213 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 27,409 | 24,815 | 19,968 |
Amortization of intangibles | 15,993 | 17,459 | 21,994 |
Amortization of premium and discount on investments, net | (11,603) | (6,461) | (373) |
Impairment of minority investments | 0 | 6,962 | 0 |
Stock-based compensation to employees | 22,335 | 28,380 | 34,871 |
Stock-based compensation to Board of Directors and Scientific Advisory Board | 1,774 | 1,566 | 1,404 |
Deferred income tax (benefit) expense | (3,766) | (26,946) | 1,748 |
Retirement plan expense, net of benefit payments | 3,129 | 5,276 | 8,875 |
Decrease (increase) in assets: | |||
Accounts receivable | (47,186) | 14,975 | (25,378) |
Inventory | 7,425 | (49,060) | (42,569) |
Other current assets | (41,574) | (24,843) | (202) |
Other assets | 4,450 | 25,971 | (32,369) |
Increase (decrease) in liabilities: | |||
Accounts payable and accrued expenses | 4,047 | 3,338 | 1,902 |
Other current liabilities | (21,481) | 20,917 | 2,105 |
Deferred revenue | (4,159) | (93,203) | (5,220) |
Other liabilities | (5,027) | (32,392) | 20,136 |
Net cash provided by operating activities | 154,777 | 126,815 | 191,105 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (59,792) | (42,497) | (43,161) |
Purchase of intangibles | (66,563) | (4,709) | (394) |
Purchases of investments | (531,103) | (701,993) | (642,180) |
Proceeds from sale and maturity of investments | 574,165 | 468,456 | 227,984 |
Net cash used in investing activities | (83,293) | (280,743) | (457,751) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock | 2,012 | 1,570 | 1,507 |
Payment of withholding taxes related to stock-based compensation to employees | (8,206) | (9,209) | (14,949) |
Cash dividends paid | (66,735) | (56,996) | (37,931) |
Net cash used in financing activities | (72,929) | (64,635) | (51,373) |
DECREASE IN CASH AND CASH EQUIVALENTS | (1,445) | (218,563) | (318,019) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 93,430 | 311,993 | 630,012 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 91,985 | $ 93,430 | $ 311,993 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS Non-Cash Activities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Significant Noncash Transactions [Line Items] | |||
Unrealized (loss) gain on available-for-sale securities | $ (8,938) | $ (8,100) | $ (295) |
Net change in accounts payable and accrued expenses related to purchases of property and equipment | 678 | 3,069 | (3,526) |
Cash paid for income tax | 96,176 | 72,347 | 52,650 |
Common Stock Issued to Board of Directors and Scientific Advisory Board that was Earned and Accrued for in Previous Period [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Other significant noncash transaction, value of consideration received | $ 300 | $ 300 | $ 300 |
BUSINESS
BUSINESS | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS | 1. BUSINESS: Universal Display Corporation and its subsidiaries (the Company) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. OLEDs are thin, lightweight and power-efficient solid-state devices that emit light and can be manufactured on both flexible and rigid substrates, making them highly suitable for use in full-color displays and as lighting products. OLED displays are capturing a growing share of the display market, especially in the mobile phone, television, monitor, wearable, tablet, notebook and personal computer, augmented reality (AR), virtual reality (VR) and automotive markets. The Company believes this is because OLEDs offer potential advantages over competing display technologies with respect to power efficiency, contrast ratio, viewing angle, video response time, form factor and manufacturing cost. The Company also believes that OLED lighting products have the potential to replace many existing light sources in the future because of their high-power efficiency, excellent color rendering index, low operating temperature and novel form factor. The Company’s technology leadership, intellectual property position, and more than 20 years of experience working closely with leading OLED display manufacturers are some of the competitive advantages that should enable the Company to continue to share in the revenues from OLED displays and lighting products as they gain wider acceptance. The Company’s primary business strategy is to (1) develop new OLED materials and sell existing and new materials to product manufacturers of products for display applications, such as mobile phones, televisions, monitors, wearables, tablets, portable media devices, notebook computers, personal computers and automotive applications, and specialty and general lighting products; and (2) further develop and either license or otherwise commercialize the Company’s proprietary OLED material, device design and manufacturing technologies to those manufacturers. The Company has established a significant portfolio of proprietary OLED technologies and materials, primarily through internal research and development efforts and acquisitions of patents and patent applications, as well as maintaining long-standing, and establishing new relationships with world-class universities, research institutions and strategic manufacturing partnerships. The Company currently owns, exclusively licenses or has the sole right to sublicense more than 6,000 patents issued and pending worldwide. The Company manufactures and sells its proprietary OLED materials to customers for evaluation and use in commercial OLED products. The Company also enters into agreements with manufacturers of OLED display and lighting products under which it grants them licenses to practice under the Company’s patents and to use the Company's proprietary know-how. At the same time, the Company works with these and other companies that are evaluating the Company's OLED material, device design and manufacturing technologies for possible use in commercial OLED display and lighting products. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation The Consolidated Financial Statements include the accounts of Universal Display Corporation and its wholly owned subsidiaries, UDC, Inc., UDC Ireland Limited (UDC Ireland), Universal Display Corporation Hong Kong, Limited, Universal Display Corporation Korea, Y.H. (UDC Korea), Universal Display Corporation Japan GK, Universal Display Corporation China, Ltd., Adesis, Inc. (Adesis), UDC Ventures LLC, OVJP Corporation (OVJP Corp) and OLED Material Manufacturing Limited (OMM). All intercompany transactions and accounts have been eliminated. Reclassification of Prior Year Presentation Certain prior year adjustments to reconcile net income to net cash provided by operating activities have been reclassified on the Consolidated Statements of Cash Flows to conform to the current year presentation. These adjustments have been consolidated into their respective operating assets and liabilities accounts, specifically, inventory, other current assets, other assets and deferred revenue. Management’s Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates made are principally in the areas of revenue recognition including estimates of material unit sales and royalties, the useful life of acquired intangibles, lease liabilities, right-of-use assets, the use and recoverability of inventories, intangibles, investments and income taxes including realization of deferred tax assets, stock-based compensation and retirement benefit plan liabilities. Actual results could differ from those estimates. Cash, Cash Equivalents and Investments The Company considers all highly liquid debt instruments purchased with an original maturity (maturity at the purchase date) of three months or less to be cash equivalents. The Company classifies its remaining investments as available-for-sale. These securities (excluding minority equity investments) are carried at fair market value, with unrealized gains and losses reported in shareholders’ equity. Gains or losses on securities sold are based on the specific identification method. Trade Accounts Receivable Trade accounts receivable are stated at the amount the Company expects to collect and do not bear interest. The Company considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company’s accounts receivable balance is a result of chemical sales, royalties and license fees. These receivables have historically been paid timely. Due to the nature of the accounts receivable balance, the Company believes there is no significant collection risk. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, allowances for credit losses would be required. As of December 31, 2023 and 2022, the allowance for credit losses was $ 166,000 and $ 279,000 , respectively. Inventories Inventories consist of raw materials, work-in-process and finished goods, and are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value. Inventory valuation and firm committed purchase order assessments are performed on a quarterly basis and those items that are identified to be obsolete or in excess of forecasted usage are written down to their estimated realizable value. Estimates of realizable value are based upon management’s analyses and assumptions, including, but not limited to, forecasted sales levels by product, expected product lifecycle, product development plans and future demand requirements. A 12-month rolling forecast based on factors, including, but not limited to, production cycles, anticipated product orders, marketing forecasts, backlog, and shipment activities is used in the inventory analysis. If market conditions are less favorable than forecasts or actual demand from customers is lower than estimates, additional inventory write-downs may be required. If demand is higher than expected, inventories that had previously been written down may be sold. Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful life of 30 years for buildings, 15 years for building improvements, and three to seven years for office and lab equipment and furniture and fixtures. Repair and maintenance costs are charged to expense as incurred. Additions and betterments are capitalized. Major renewals and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to current operations as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the Consolidated Balance Sheets and any gain or loss is reflected in other operating expenses. Certain costs of computer software obtained for internal use are capitalized and amortized on a straight-line basis over three years . Costs for maintenance and training, as well as the cost of software that does not add functionality to an existing system, are expensed as incurred. Impairment of Long-Lived Assets Company management continually evaluates whether events or changes in circumstances might indicate that the remaining estimated useful life of long-lived assets may warrant revision, or that the remaining balance may not be recoverable. When factors indicate that long-lived assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted cash flows in measuring whether the long-lived asset should be written down to fair value. Measurement of the amount of impairment would be based on generally accepted valuation methodologies, as deemed appropriate. As of December 31, 2023, Company management believed that no revision to the remaining useful lives or write-down of the Company’s long-lived assets was required, and similarly, no such revisions were required for the years ended December 31, 2022 or 2021. Goodwill and Purchased Intangible Assets Goodwill is tested for impairment in the fourth fiscal quarter and, when specific circumstances dictate, between annual tests. If after assessing the totality of events or circumstances as those described in the qualitative assessment, it is determined that it is more likely than not the fair value of a reporting unit is less than its carrying amount, then a quantitative goodwill impairment test will be performed. Under the quantitative test, the fair value of the reporting unit is compared to its carrying amount including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit would be considered not impaired. However, if the carrying amount of the reporting unit exceeds its fair value, an impairment loss would be recognized in the amount equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. The Company performed its annual impairment assessment as of December 31, 2023 utilizing a qualitative assessment and concluded that it was more likely than not that the fair value of Adesis is greater than its carrying value. Future impairment tests will continue to be performed annually in the fiscal fourth quarter, or sooner if a triggering event occurs. As of December 31, 2023, no indications of impairment existed. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. Fair Value of Financial Instruments The carrying values of accounts receivable, other current assets, accounts payable and other current liabilities approximate fair value in the accompanying Consolidated Financial Statements due to the short-term nature of those instruments. The Company’s other financial instruments, which include cash equivalents and investments (excluding minority equity investments) are carried at fair value. Fair Value Measurements Fair value is defined as an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability and are based on market data obtained from sources independent of the Company. Unobservable inputs reflect assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. Minority Equity Investments The Company accounts for minority equity investments in companies that are not accounted for under the equity method as equity securities without readily determinable fair values. The value of these securities is based on original cost less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment in the same issuer. Under this method, the share of income or loss of such companies is not included in the Consolidated Statements of Income. The carrying value of these investments is included in investments on the Consolidated Balance Sheets. The Company’s policy is to recognize an impairment in the value of its minority equity investments when evidence of an impairment exists. Factors considered in the assessment include a significant adverse change in the regulatory, economic, or technological environment, the completion of new equity financing that may indicate a decrease in value, the failure to complete new equity financing arrangements after seeking to raise additional funds, or the commencement of proceedings under which the assets of the business may be placed in receivership or liquidated to satisfy the claims of debt and equity stakeholders. The impairment in the value of minority equity investments is included in the other (loss) income, net line item on the Consolidated Statements of Income. Leases The Company is a lessee in operating leases primarily incurred to facilitate manufacturing, research and development, and selling, general and administrative activities. At contract inception, the Company determines if an arrangement is or contains a lease, and if so recognizes a right-of-use asset and lease liability at the lease commencement date. For operating leases, the lease liability is measured at the present value of the unpaid lease payments at the lease commencement date, whereas for finance leases, the lease liability is initially measured at the present value of the unpaid lease payments and subsequently measured at amortized cost using the interest method. Operating lease right-of-use assets are included in other assets on the Consolidated Balance Sheets. The short-term portion of operating lease liabilities is included in other current liabilities on the Consolidated Balance Sheets and the long-term portion is included in other liabilities on the Consolidated Balance Sheets. As of December 31, 2023, the Company had no leases that qualified as financing arrangements. Key estimates and judgments include how the Company determines the discount rate used to discount the unpaid lease payments to present value and the lease term. The Company monitors for events or changes in circumstances that could potentially require recognizing an impairment loss. Revenue Recognition and Deferred Revenue Material sales relate to the Company’s sale of its OLED materials for incorporation into its customers’ commercial OLED products or for their OLED development and evaluation activities. Revenue associated with material sales is generally recognized at the time title passes, which is typically at the time of shipment or at the time of delivery, depending upon the contractual agreement between the parties. Revenue may be recognized after control of the material passes in the event the transaction price includes variable consideration. For example, a customer may be provided an extended opportunity to stock materials prior to use in mass production and given a general right of return not conditioned on breaches of warranties associated with the specific product. In such circumstances, revenue will be recognized at the earlier of the expiration of the customer’s general right of return or once it becomes unlikely that the customer will exercise its right of return. The vast majority of revenue attributed to material sales is determined through technology license agreements and material supply agreements the terms of which are jointly agreed upon with the Company’s customers. The remaining revenue recognized is in the form of contract research services revenue earned by the Company’s subsidiary, Adesis, Inc., and the Company’s occasional material sales to smaller customers. None of the revenue recognized during the years ended December 31, 2023, 2022 or 2021 resulted solely from royalty or license fee arrangements as to which there were not associated material sales. The rights and benefits to the Company’s OLED technologies are conveyed to the customer through technology license agreements and material supply agreements. The Company believes that the licenses and materials sold under these combined agreements are not distinct from each other for financial reporting purposes and as such, they are accounted for as a single performance obligation. Accordingly, total contract consideration is estimated and recognized over the contract term based on material units sold at the estimated per unit fee over the life of the contract. Total contract consideration is allocated to material sales and royalty and licensing fees on the Consolidated Statements of Income based on contract pricing. Various estimates are relied upon to recognize revenue. The Company estimates total material units to be purchased by its customers over the contract term based on historical trends, industry estimates and its forecast process. Management uses the expected value method to estimate the material per unit fee. Additionally, management estimates the sales-based portion of royalty revenue based on the estimated net sales revenue of its customers over the contract term. Contract research services revenue is revenue earned by Adesis by providing chemical materials synthesis research, development and commercialization for non-OLED applications on a contractual basis. These services range from intermediates for structure-activity relationship studies, reference agents and building blocks for combinatorial synthesis, re-synthesis of key intermediates, specialty organic chemistry needs, and selective toll manufacturing. These services are provided to third-party pharmaceutical and life sciences firms and other technology firms at fixed costs or predetermined rates on a contract basis. Revenue is recognized as services are performed with billing schedules and payment terms negotiated on a contract-by-contract basis. Payments received in excess of revenue recognized are recorded as deferred revenue. In other cases, services may be provided and revenue is recognized before the customer is invoiced. In these cases, revenue recognized will exceed amounts billed and the difference, representing amounts which are currently unbillable to the customer pursuant to contractual terms, is recorded as an unbilled receivable. Technology development and support revenue is revenue earned from development and technology evaluation agreements and commercialization assistance fees. Technology development and support revenue is included in contract research services on the Consolidated Statements of Income. On December 2, 2022, the Company entered into a commercial patent license agreement with Samsung Display Co., Ltd. (SDC), replacing a previous license agreement that had been in place since 2018. This agreement, which covers the manufacture and sale of specified OLED display materials, was effective as of January 1, 2023 and lasts through the end of 2027 with an additional two-year extension option for SDC. Under this agreement, the Company is being paid a license fee, which includes quarterly and annual payments over the agreement term of five years . The agreement conveys to SDC the non-exclusive right to use certain of the Company's intellectual property assets for a limited period of time that is less than the estimated life of the assets. At the same time the Company entered into the current commercial license agreement with SDC, the Company also entered into a new supplemental material purchase agreement with SDC, which lasts for the same term as the license agreement and is subject to the same extension option. This new material purchase agreement replaced a previous purchase agreement that had been in place since 2018. Under the supplemental material purchase agreement, SDC agrees to purchase red and green phosphorescent emitter materials from the Company for use in the manufacture of licensed products. This amount purchased is subject to SDC’s requirements for phosphorescent emitter materials and the Company’s ability to meet these requirements over the term of the supplemental agreement. In 2015, the Company entered into an OLED patent license agreement and an OLED commercial supply agreement with LG Display Co., Ltd. (LG Display), which were effective as of January 1, 2015. The terms of these agreements were extended by a January 1, 2021 amendment through the end of 2025. The patent license agreement provides LG Display a non-exclusive, royalty bearing portfolio license to make and sell OLED displays under the Company's patent portfolio. The patent license calls for license fees, prepaid royalties and running royalties on licensed products. The OLED commercial supply agreement provides for the sale of materials for use by LG Display, which may include phosphorescent emitters and host materials. The agreements provide for certain other minimum obligations relating to the volume of material sales anticipated over the lives of the agreements as well as minimum royalty revenue. In 2023, the Company entered into new long-term, multi-year agreements with BOE Technology Group Co., Ltd. (BOE). Under these agreements, the Company has granted BOE non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The Company supplies phosphorescent OLED materials to BOE for use in its licensed products. In 2019, the Company entered into an evaluation and commercial supply relationship with Wuhan China Star Optoelectronics Semiconductor Display Technology Co., Ltd. (CSOT). In 2020, the Company entered into long-term, multi-year agreements with CSOT. Under these agreements, the Company has granted CSOT non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The Company also supplies phosphorescent OLED materials to CSOT for use in its licensed products. In 2018, the Company entered into long-term, multi-year OLED patent license and material purchase agreements with Visionox Technology, Inc. (Visionox). Under the license agreement, the Company granted certain of Visionox’s affiliates non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The license agreement calls for license fees and running royalties on licensed products. Additionally, the Company supplies phosphorescent OLED materials to Visionox for use in its licensed products. In 2021, the Company announced that it had extended the Visionox agreement by entering into new five-year OLED material supply and license agreements with a new affiliate of Visionox, Visionox Hefei Technology Co. Ltd. In 2016, the Company entered into long-term, multi-year OLED patent license and material purchase agreements with Tianma Micro-electronics Co., Ltd. (Tianma). Under the license agreement, the Company has granted Tianma non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The license agreement calls for license fees and running royalties on licensed products. Additionally, the Company supplies phosphorescent OLED materials to Tianma for use in its licensed products. In 2021, the parties extended the terms of both the patent license and material purchase agreements for an additional multi-year-term. All material sales transactions that are not variable consideration transactions are billed and due within 90 days and substantially all are transacted in U.S. dollars. Cost of Sales Cost of sales consists of labor and material costs associated with the production of materials processed at the facilities of the Company's manufacturing partner, PPG Industries, Inc. (PPG) and at the Company's internal facilities. The Company’s portion of cost of sales also includes depreciation of manufacturing equipment, as well as manufacturing overhead costs and inventory adjustments for excess and obsolete inventory. Research and Development Expenditures for research and development are charged to expense as incurred. Patent Costs Costs associated with patent applications, patent prosecution, patent defense and the maintenance of patents are charged to expense as incurred. Costs to successfully defend a challenge to a patent are capitalized to the extent of an evident increase in the value of the patent. Costs that relate to an unsuccessful outcome are charged to expense. Amortization of Acquired Technology Amortization costs primarily relate to technology acquired from Merck KGaA, Darmstadt, Germany (Merck KGaA), BASF SE (BASF) and Fujifilm Corporation ( Fujifilm). The Merck KGaA acquisition was completed on April 28, 2023. The BASF and Fujifilm acquisitions were completed in the years ended December 31, 2016 and 2012, respectively. Acquisition costs are being amortized over a period of 10 years for the Merck KGaA and BASF patents. The Fujifilm acquired technology was fully amortized over a period of 10 years that ended in July 2022. Amortization of Other Intangible Assets Other intangible assets from the Adesis acquisition are being amortized over a period of 10 to 15 years . See Note 7 for further discussion. Translation of Foreign Currency Financial Statements and Foreign Currency Transactions The Company’s reporting currency is the U.S. dollar. The functional currency for the UDC Ireland and UDC Korea subsidiaries are also the U.S. dollar and the functional currency for the OMM subsidiary and each of the Company's other Asia-Pacific foreign subsidiaries is its respective local currency. The Company translates the amounts included in the Consolidated Statements of Income from OMM and its Asia-Pacific foreign subsidiaries into U.S. dollars at weighted-average exchange rates, which the Company believes are representative of the actual exchange rates on the dates of the transactions. The Company's OMM subsidiary and each of the Company's other Asia-Pacific foreign subsidiaries' assets and liabilities are translated into U.S. dollars from the local currency at the actual exchange rates as of the end of each reporting date, and the Company records the resulting foreign exchange translation adjustments in the Consolidated Balance Sheets as a component of accumulated other comprehensive loss. The overall effect of the translation of foreign currency and foreign currency transactions to date has been insignificant. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount of which the likelihood of realization is greater than 50 % . Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties, if any, related to unrecognized tax benefits as a component of tax expense. Share-Based Payment Awards The Company recognizes in the Consolidated Statements of Income the grant-date fair value of equity-based awards such as shares issued under employee stock purchase plans, restricted stock awards, restricted stock units and performance unit awards issued to employees and directors. The grant-date fair value of stock awards is based on the closing price of the stock on the date of grant. The fair value of share-based awards is recognized as compensation expense on a straight-line basis over the requisite service period, net of forfeitures. The Company issues new shares upon the respective grant, exercise or vesting of the share-based payment awards, as applicable. Performance unit awards are subject to either a performance-based or market-based vesting requirement. For performance-based vesting, the grant-date fair value of the award, based on fair value of the Company's common stock, is recognized over the service period based on an assessment of the likelihood that the applicable performance goals will be achieved, and compensation expense is periodically adjusted based on actual and expected performance. Compensation expense for performance unit awards with market-based vesting is calculated based on the estimated fair value as of the grant date utilizing a Monte Carlo simulation model and is recognized over the service period on a straight-line basis. Recent Accounting Pronouncements Adoption of New Accounting Standards In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with FASB ASC 606. The adoption of ASU 2021-08, beginning on January 1, 2023, did not have a impact on the Consolidated Financial Statements and related disclosures. In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 450-50): Disclosure of Supplier Finance Program Obligations , which require disclosures about a buyer's supplier finance program. The adoption of ASU 2022-04, beginning on January 1, 2023, did not have a impact on the Consolidated Financial Statements and related disclosures. Accounting Standards Issued But Not Yet Adopted In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . Under this standard, a contractual restriction on the sale of an equity security is not considered in measuring the security's fair value. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. ASU 2022-03 becomes effective January 1, 2024, and will not have a significant impact on the Consolidated Financial Statements and related disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The standard improves the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 becomes effective January 1, 2024, and the Company is evaluating the potential impact of this standard on the Consolidated Financial Statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740) . The standard enhances to the annual income tax disclosures to address investor requests for more information about the tax risks and opportunities present in an entity's worldwide operations. ASU 2023-09 becomes effective January 1, 2025, and the Company is evaluating the potential impact of this standard on its income tax disclosures. |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | 3. CASH, CASH EQUIVALENTS AND INVESTMENTS: The Company’s portfolio of marketable fixed income securities consists of U.S. Government bonds and corporate bonds. The Company considers all highly liquid debt instruments purchased with an original maturity (maturity at the purchase date) of three months or less to be cash equivalents. The Company classifies its remaining debt security investments as available-for-sale. These debt securities are carried at fair market value, with unrealized gains and losses reported in shareholders’ equity. Gains or losses on securities sold are based on the specific identification method. Cash and Cash Equivalents The following table provides details regarding the Company’s portfolio of cash and cash equivalents (in thousands): Amortized Unrealized Aggregate Fair Cash and Cash Equivalents Classification Cost Gains (Losses) Market Value December 31, 2023 Cash accounts in banking institutions $ 91,717 $ — $ — $ 91,717 Money market accounts 268 — — 268 $ 91,985 $ — $ — $ 91,985 December 31, 2022 Cash accounts in banking institutions $ 86,268 $ — $ — $ 86,268 Money market accounts 7,162 — — 7,162 $ 93,430 $ — $ — $ 93,430 Short-term Investments The following table provides details regarding the Company’s portfolio of short-term investments (in thousands): Amortized Unrealized Aggregate Fair Short-term Investments Classification Cost Gains (Losses) Market Value December 31, 2023 Corporate bonds $ 1,763 $ 1 $ ( 5 ) $ 1,759 U.S. Government bonds 420,769 303 ( 694 ) 420,378 $ 422,532 $ 304 $ ( 699 ) $ 422,137 December 31, 2022 Corporate bonds $ 150,698 $ — $ ( 910 ) $ 149,788 U.S. Government bonds 339,472 32 ( 4,947 ) 334,557 $ 490,170 $ 32 $ ( 5,857 ) $ 484,345 Long-term Corporate Bond and U.S. Government Bond Investments The following table provides details regarding the Company’s portfolio of long-term investments (in thousands): Amortized Unrealized Aggregate Fair Long-term Investments Classification Cost Gains (Losses) Market Value December 31, 2023 U.S. Government bonds $ 284,053 $ 1,457 $ ( 8 ) $ 285,502 $ 284,053 $ 1,457 $ ( 8 ) $ 285,502 December 31, 2022 Corporate bonds $ 2,479 $ — $ ( 28 ) $ 2,451 U.S. Government bonds 247,464 52 ( 2,152 ) $ 245,364 $ 249,943 $ 52 $ ( 2,180 ) $ 247,815 Minority Equity Investments The Company’s portfolio of minority equity investments consists of investments in privately held early-stage companies primarily motivated for the Company to gain early access to new technology and are passive in nature in that the Company typically does not seek to obtain representation on the boards of directors of the companies in which it invests. Minority equity investments are included in investments on the Consolidated Balance Sheets. As of December 31, 2023, the Company had minority equity investments in five entities with a total carrying value of $ 14.0 million accounted for as equity securities without readily determinable fair values as compared to four minority equity investments with a total carrying value of $ 12.0 million as of December 31, 2022. During the year ended December 31, 2022, the Company recognized an impairment in the value of two of its minority equity investments, an impairment of an equity security investment in the amount of $ 3.0 million and an impairment of a long-term convertible note investment of $ 4.0 million which had been acquired during the year ended December 31, 2022. During the year ended December 31, 2023, the Company did not recognize an impairment in the value of its minority equity investments. The impairment in the value of minority equity investments are included in the other (loss) income, net line item on the Consolidated Statements of Income. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 4. FAIR VALUE MEASUREMENTS: The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2023 (in thousands): Fair Value Measurements, Using Total Carrying Value Quoted Prices in Significant Other Significant Unobservable Cash equivalents $ 268 $ 268 $ — $ — Short-term Corporate bonds 1,759 1,759 — — Short-term U.S. Government bonds 420,378 420,378 — — Long-term U.S. Government bonds 285,502 285,502 — — The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2022 (in thousands): Fair Value Measurements, Using Total Carrying Value Quoted Prices in Significant Other Significant Unobservable Cash equivalents $ 7,162 $ 7,162 $ — $ — Short-term Corporate bonds 149,788 149,788 — — Short-term U.S. Government bonds 334,557 334,557 — — Long-term Corporate bonds 2,451 2,451 — — Long-term U.S. Government bonds 245,364 245,364 — — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s classification is determined based on the lowest level input that is significant to the fair value measurement. Changes in fair value of the debt investments are recorded as unrealized gains and losses in accumulated other comprehensive loss on the Consolidated Balance Sheets and any credit losses on debt investments are recorded as an allowance for credit losses with an offset recognized in other (loss) income, net on the Consolidated Statements of Income. There were no credit losses on debt investments as of December 31, 2023 or December 31, 2022. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 5. INVENTORY: Inventory consisted of the following (in thousands): December 31, 2023 2022 Raw materials $ 113,400 $ 115,448 Work-in-process 9,433 7,626 Finished goods 52,962 60,146 Inventory $ 175,795 $ 183,220 The Company recorded an inventory reserve of $ 8.5 million, $ 3.6 million and $ 3.6 million for the years ended December 31, 2023, 2022 and 2021, respectively, due to excess inventory levels in certain products. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 6. PROPERTY AND EQUIPMENT: Property and equipment, net consist of the following (in thousands): December 31, 2023 2022 Land $ 12,230 $ 2,642 Building and improvements 116,903 99,586 Office and lab equipment 148,465 129,697 Furniture, fixtures and computer related assets 18,970 18,071 Construction-in-progress 22,490 10,567 319,058 260,563 Less: Accumulated depreciation ( 143,908 ) ( 117,118 ) Property and equipment, net $ 175,150 $ 143,445 Depreciation expense was $ 27.4 million, $ 24.8 million and $ 20.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. The increase in property and equipment, net for the year ended December 31, 2023 is primarily due to the purchases of two previously leased facilities for an aggregate cost of $ 23.4 million and ongoing renovation activities at our research and development center in Ewing, New Jersey. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 7. GOODWILL AND INTANGIBLE ASSETS: The Company monitors the recoverability of goodwill annually or whenever events or changes in circumstances indicate the carrying value may not be recoverable. Purchased intangible assets subject to amortization consist of acquired technology and other intangible assets that include trade names, customer relationships and developed intellectual property (IP) processes. Acquired Technology Acquired technology primarily consists of acquired license rights for patents and know-how obtained from Merck KGaA, BASF and Fujifilm. These intangible assets consist of the following (in thousands) : December 31, 2023 (1) 2022 PD-LD, Inc. $ — $ 1,481 Motorola — 15,909 Merck KGaA 66,012 — BASF 95,989 95,989 Fujifilm 109,462 109,462 Other 5,712 5,212 277,175 228,053 Less: Accumulated amortization ( 186,850 ) ( 189,671 ) Acquired technology, net $ 90,325 $ 38,382 (1) During the year ended December 31, 2023, the gross value and accumulated amortization associated with the PD-LD, Inc. and Motorola patent portfolios have been removed from the table as the underlying patents have reached the end of their useful lives. Amortization expense related to acquired technology was $ 14.6 million, $ 16.0 million and $ 20.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Amortization expense is included in amortization of acquired technology and other intangible assets expense line item on the Consolidated Statements of Income and is expected to be $ 16.8 million in each of the years ending December 31, 2024 and 2025, $ 12.0 million in the year ending December 31, 2026, $ 7.2 million in each of the years ending December 2027 and 2028, and $ 30.3 million in total thereafter. Merck KGaA Patent Acquisition In April 2023, UDC Ireland entered into a Patent Sale and License Agreement with Merck KGaA. Under this agreement, Merck KGaA sold to UDC Ireland all of its rights, title and interest to over 550 of its owned and licensed OLED-related patents and patent applications in exchange for a cash payment of $ 66.0 million. The Patent Sale and License Agreement contains customary representations, warranties and covenants of the parties. UDC Ireland recorded the payment of $ 66.0 million as acquired technology, which is being amortized over a period of 10 years. BASF Patent Acquisition On June 28, 2016, UDC Ireland entered into and consummated an IP Transfer Agreement with BASF. Under the IP Transfer Agreement, BASF sold to UDC Ireland all of its rights, title and interest to certain of its owned and co-owned intellectual property rights relating to the composition, development, manufacture and use of OLED materials, including OLED lighting and display stack technology, as well as certain tangible assets. The intellectual property includes knowhow and more than 500 issued and pending patents in the area of phosphorescent materials and technologies. These assets were acquired in exchange for a cash payment of € 86.8 million ($ 95.8 million). In addition, UDC Ireland also took on certain rights and obligations under three joint research and development agreements to which BASF was a party. The IP Transfer Agreement also contains customary representations, warranties and covenants of the parties. UDC Ireland recorded the payment of € 86.8 million ($ 95.8 million) and acquisition costs incurred of $ 217,000 as acquired technology, which is being amortized over a period of 10 years. Fujifilm Patent Acquisition On July 23, 2012, the Company entered into a Patent Sale Agreement with Fujifilm. Under the agreement, Fujifilm sold more than 1,200 OLED-related patents and patent applications in exchange for a cash payment of $ 105.0 million, plus $ 4.5 million in costs incurred in connection with the purchase. The agreement contains customary representations and warranties and covenants, including respective covenants not to sue by both parties thereto. The agreement permitted the Company to assign all of its rights and obligations under the agreement to its affiliates, and the Company assigned, prior to the consummation of the transactions contemplated by the agreement, its rights and obligations to UDC Ireland. The transactions contemplated by the agreement were consummated on July 26, 2012. The Company recorded the $ 105.0 million plus $ 4.5 million of purchase costs as acquired technology, which was amortized over a period of 10 years that ended in July 2022. Other Intangible Assets As a result of the Adesis acquisition in June 2016, the Company recorded $ 16.8 million of other intangible assets, including $ 10.5 million assigned to customer relationships with a weighted average life of 11.5 years, $ 4.8 million to internally developed IP, processes and recipes with a weighted average life of 15 years, and $ 1.5 million to trade name and trademarks with a weighted average life of 10 years. At December 31, 2023, these other intangible assets consist of the following (in thousands): December 31, 2023 Gross Carrying Accumulated Net Carrying Customer relationships $ 10,520 $ ( 6,801 ) $ 3,719 Developed IP, processes and recipes 4,820 ( 2,388 ) 2,432 Trade name/Trademarks 1,500 ( 1,118 ) 382 Other 448 ( 107 ) 341 Total identifiable other intangible assets $ 17,288 $ ( 10,414 ) $ 6,874 Amortization expense related to other intangible assets was $ 1.4 million for each of the years ended December 31, 2023, 2022, and 2021. Amortization expense is included in amortization of acquired technology and other intangible assets expense line item on the Consolidated Statements of Income and is expected to be $ 1.4 million for each of the next three fiscal years (2024 - 2026), $ 1.3 million for the year ending December 31, 2027, $ 422,000 for the year ending December 31, 2028, and $ 1.0 million in total thereafter. Goodwill As a result of the Adesis acquisition, the Company recorded $ 15.5 million of goodwill. The Company performs its annual assessment of goodwill during the fourth quarter of the fiscal year unless events suggest an impairment may have been incurred in an interim period using Adesis’ standalone financial operating performance information. Application of the goodwill impairment test requires the exercise of judgment, including the determination of the fair value of each reporting unit, as Adesis is considered to be the reporting unit. As part of the annual assessment of goodwill completed during the fourth quarter ended December 31, 2023, there were no significant indicators to conclude that an impairment of the goodwill associated with the acquisition of Adesis had occurred. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
Other assets | 8. OTHER ASSETS: Other assets consist of the following (in thousands): December 31, 2023 2022 Long-term taxes receivable $ 60,146 $ 63,915 Right-of-use assets 24,910 31,486 Long-term unbilled receivables 9,074 — Long-term contract assets 9,278 11,651 Other long-term assets 1,881 2,687 Other assets $ 105,289 $ 109,739 See Notes 9 and 20 for further explanation on right-of-use assets and long-term taxes receivable, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | 9. LEASES: The Company has entered into operating leases to facilitate the expansion of its manufacturing, research and development, and selling, general and administrative activities. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when those events are reasonably certain to occur. The interest rate implicit in lease contracts is typically not readily determinable and as such the Company uses the appropriate incremental borrowing rate based on information available at the lease commencement date in determining the present value of the lease payments. Current lease agreements do not contain any residual value guarantees or material restrictive covenants. As of December 31, 2023, the Company did not have any finance leases and no additional operating leases that have not yet commenced. The following table presents the Company’s operating lease cost and supplemental cash flow information related to the Company’s operating leases (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease cost $ 4,639 $ 4,436 $ 3,637 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 1,072 $ 4,750 $ 26,174 The following table presents the Company’s operating lease right-of-use assets and liabilities (in thousands): December 31, 2023 2022 Right-of-use assets $ 24,910 $ 31,486 Short-term lease liabilities 3,533 3,737 Long-term lease liabilities 22,855 29,039 The following table presents weighted average assumptions used to compute the Company’s right-of-use assets and lease liabilities: December 31, 2023 Weighted average remaining lease term (in years) 6.7 Weighted average discount rate 3.7 % As of December 31, 2023, current operating leases had remaining terms between three and eight years with options to extend the lease terms. Undiscounted future minimum lease payments as of December 31, 2023, by year and in the aggregate, having non-cancelable lease terms in excess of one year were as follows (in thousands): Maturities of Operating Lease Liabilities 2024 $ 4,267 2025 4,321 2026 4,401 2027 4,323 2028 3,996 Thereafter 8,083 Total lease payments 29,391 Less: imputed interest ( 3,003 ) Present value of lease payments $ 26,388 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | 10. ACCRUED EXPENSES: Accrued expenses consist of the following (in thousands): December 31, 2023 2022 Compensation $ 29,456 $ 31,751 PPG Industries, Inc. agreement 11,962 9,864 Consulting 2,121 910 Professional fees 1,124 906 Research and development agreements 822 662 Royalties 647 877 Other 5,948 6,032 Accrued expenses $ 52,080 $ 51,002 |
RESEARCH AND LICENSE AGREEMENTS
RESEARCH AND LICENSE AGREEMENTS WITH ACADEMIC PARTNERS | 12 Months Ended |
Dec. 31, 2023 | |
Research and Development [Abstract] | |
RESEARCH AND LICENSE AGREEMENTS WITH ACADEMIC PARTNERS | 11. RESEARCH AND LICENSE AGREEMENTS WITH ACADEMIC PARTNERS: The Company has long-standing relationships with a number of academic institutions that undertake funded research projects, including Princeton University (Princeton) and the University of Southern California (USC). Under the current license agreement among the Company, Princeton and USC, the universities have granted the Company worldwide, exclusive license rights, with rights to sublicense, to make, have made, use, lease and/or sell products and to practice processes based on patent applications and issued patents arising out of research performed by the universities for the Company. The Company recorded royalty expense in connection with this agreement of $ 575,000 , $ 853,000 and $ 691,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The Company also makes payments under the current research agreement with USC on a quarterly basis as actual expenses are incurred. As of December 31, 2023, the Company was obligated to pay USC up to $ 2.0 million for work to be performed during the remaining extended term. The Company recorded research and development expense in connection with work performed under the agreement of $ 1.1 million, $ 905,000 and $ 1.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities [Abstract] | |
OTHER LIABILITIES | 12. OTHER LIABILITIES: Other liabilities consist of the following (in thousands): December 31, 2023 2022 Long-term lease liabilities $ 22,855 $ 29,039 Long-term taxes payable 15,749 14,592 Other long-term liabilities 54 54 Other liabilities $ 38,658 $ 43,685 See Notes 9 and 20 for further explanation on long-term lease liabilities and long-term taxes payable, respectively. |
EQUITY AND CASH COMPENSATION UN
EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | |
EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS | 13. EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS: On September 22, 2011, the Company entered into an Amended and Restated OLED Materials Supply and Service Agreement with PPG (the New OLED Materials Agreement), which, effective as of October 1, 2011, replaced the original OLED Materials Agreement with PPG. The term of the New OLED Materials Agreement, by amendment in February 2021, runs through December 31, 2024, and thereafter is automatically renewed for additional one-year terms, unless terminated by the Company by providing prior notice of one year or terminated by PPG by providing prior notice of two years. The New OLED Materials Agreement contains provisions that are substantially similar to those of the original OLED Materials Agreement. Under the New OLED Materials Agreement, PPG continues to assist the Company in developing its proprietary OLED materials and supplying the Company with those materials for evaluation purposes and for resale to its customers. Under the New OLED Materials Agreement, the Company compensates PPG on a cost-plus basis for the services provided during each calendar quarter. The Company is required to pay for some of these services in all cash. Up to 50 % of the remaining services are payable, at the Company’s sole discretion, in cash or shares of the Company’s common stock, with the balance payable in cash. The actual number of shares of common stock issuable to PPG is determined based on the average closing price for the Company’s common stock during a specified number of days prior to the end of each calendar half-year period ending on March 31 and September 30. If, however, this average closing price is less than $ 20.00 , the Company is required to compensate PPG in cash. No shares have been issued for services rendered by PPG since the inception of the contract. The Company is also required to reimburse PPG for raw materials used for research and development. The Company records the purchases of these raw materials as a current asset until such materials are used for research and development efforts. In February 2021, the Company entered into an amendment to the New OLED Materials Agreement extending the term of the agreement and specifying operation and maintenance services to be provided by PPG affiliate, PPG SCM Ireland Limited (PPG SCM), to UDC Ireland, at the Company’s manufacturing site in Shannon, Ireland that UDC Ireland’s wholly-owned subsidiary, OLED Material Manufacturing Limited (OMM), began leasing at such time for the production of OLED materials. OMM purchased the site in September 2023 and the Company amended and restated the February 2021 amendment to reflect OMM’s ownership and PPG SCM’s updated operation and maintenance services after such purchase. Facility improvements have been completed and operations commenced in June 2022. As with the initial New OLED Materials Agreement, the Company compensates PPG on a cost-plus basis for the services provided at the Shannon manufacturing facility. The Company recorded research and development expense of $ 9.1 million, $ 7.3 million and $ 3.6 million for the years ended December 31, 2023, 2022 and 2021, respectively, in relation to the cash portion of the reimbursement of expenses and work performed by PPG, excluding amounts paid for commercial chemicals. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | 14. SHAREHOLDERS' EQUITY: Preferred Stock The Company’s Amended and Restated Articles of Incorporation authorize it to issue up to 5,000,000 shares of $ 0.01 par value preferred stock with designations, rights and preferences determined from time-to-time by the Company’s Board of Directors. Accordingly, the Company’s Board of Directors is empowered, without shareholder approval, to issue preferred stock with dividend, liquidation, conversion, voting or other rights superior to those of shareholders of the Company’s common stock. In 1995, the Company issued 200,000 shares of Series A Nonconvertible Preferred Stock (Series A) to American Biomimetics Corporation (ABC) pursuant to a certain Technology Transfer Agreement between the Company and ABC. The Series A shares have a liquidation value of $ 7.50 per share. Series A shareholders, as a single class, have the right to elect two members of the Company’s Board of Directors. This right has never been exercised. Holders of the Series A shares are entitled to one vote per share on matters which shareholders are generally entitled to vote. The Series A shareholders are not entitled to any dividends. As of December 31, 2023, the Company had issued 200,000 shares of preferred stock, all of which were outstanding. Common Stock The Company’s Amended and Restated Articles of Incorporation authorize it to issue up to 200,000,000 shares of $ 0.01 par value common stock. Each share of the Company’s common stock entitles the holder to one vote on all matters to be voted upon by the shareholders. As of December 31, 2023, the Company had issued 48,731,026 shares of common stock, of which 47,365,378 were outstanding. During the years ended December 31, 2023 and 2022, the Company repurchased no shares of common stock. Dividends During the year ended December 31, 2023, the Company declared and paid cash dividends of $ 1.40 per common share, or $ 66.7 million, on the Company’s outstanding common stock. On February 20, 2024, the Company’s Board of Directors declared a first quarter dividend of $ 0.40 per share to be paid on March 29, 2024 to all shareholders of record of the Company's common stock as of the close of business on March 15, 2024 . All future dividends will be subject to the approval of the Company’s Board of Directors. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 15. ACCUMULATED OTHER COMPREHENSIVE LOSS: Amounts related to the changes in accumulated other comprehensive loss were as follows (in thousands): Unrealized Net Unrealized (2) Change in Cumulative Total Affected Line items in the Balance January 1, 2021, net of tax $ 91 $ ( 36,075 ) $ ( 35 ) $ ( 36,019 ) Other comprehensive (loss) gain ( 233 ) 13,620 ( 39 ) 13,348 Plan amendment cost — ( 283 ) — ( 283 ) (1) — 4,719 — 4,719 Selling, general and administrative, Change during period ( 233 ) 18,056 ( 39 ) 17,784 Balance December 31, 2021, net of tax ( 142 ) ( 18,019 ) ( 74 ) ( 18,235 ) Other comprehensive (loss) gain ( 7,745 ) 5,971 ( 480 ) ( 2,254 ) (1) — 2,037 — 2,037 Selling, general and administrative, Change during period ( 7,745 ) 8,008 ( 480 ) ( 217 ) Balance December 31, 2022, net of tax ( 7,887 ) ( 10,011 ) ( 554 ) ( 18,452 ) Other comprehensive (loss) gain 8,745 7,207 418 16,370 (1) — 996 — 996 Selling, general and administrative, Change during period 8,745 8,203 418 17,366 Balance December 31, 2023, net of tax $ 858 $ ( 1,808 ) $ ( 136 ) $ ( 1,086 ) (1) The Company reclassified amortization of prior service cost, actuarial loss and plan amendment cost for its retirement plan from accumulated other comprehensive loss to net income of $ 1.0 million, $ 2.0 million and $ 4.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. Refer to Note 17: Employee Retirement Plans |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 16. STOCK-BASED COMPENSATION: Equity Compensation Plan On June 15, 2023, the shareholders of the Company voted to approve the Universal Display Corporation 2023 Equity Compensation Plan (the “Equity Compensation Plan”), which replaced the Universal Display Corporation 2014 Equity Compensation Plan. The Equity Compensation Plan provides for the granting of incentive and nonqualified stock options, shares of common stock, stock appreciation rights and performance units to employees, directors and consultants of the Company. Stock options are exercisable over periods determined by the Company’s Human Capital Committee, but for no longer than 10 years from the grant date. The total number of shares that may be subject to awards under the Equity Compensation Plan is equal to the shares that were available for issuance and not subject to an award under the 2014 Equity Compensation Plan at the time it was replaced by the Equity Compensation Plan, subject to adjustment with respect to shares underlying any outstanding award granted under the Equity Compensation Plan or the 2014 Equity Compensation Plan that may expire, or be terminated, surrendered or forfeited for any reason, without issuance of such shares. As of December 31, 2023, there were 1,519,235 shares that remained available to be granted under the Equity Compensation Plan. The Equity Compensation Plan will terminate on June 15, 2033. Restricted Stock Award and Units The Company has issued restricted stock awards and units to employees and non-employees with vesting terms of one to five years. The fair value is equal to the market price of the Company’s common stock on the date of grant for awards granted to employees. Consistent with the accounting for equity-classified awards issued to employees, our equity-classified nonemployee share-based awards are measured at the grant date fair value. Expense for restricted stock awards and units is amortized ratably over the vesting period for the awards issued to employees and using a graded vesting method for the awards issued to non-employees. The following table summarizes the activity related to restricted stock unit (RSU) share based payment awards: Number of Weighted- Unvested, January 1, 2023 230,223 $ 165.13 Granted 121,896 136.22 Vested ( 132,010 ) 163.85 Forfeited ( 3,623 ) 152.21 Unvested, December 31, 2023 216,486 $ 149.68 The weighted average grant-date fair value per unit of RSU awards granted was $ 136.22 , $ 140.37 and $ 208.67 during the years ended December 31, 2023, 2022 and 2021, respectively. The grant date fair value of RSUs that vested during the year was $ 21.6 million for the year ended December 31, 2023, $ 18.0 million for the year ended December 31, 2022 and $ 12.5 million for the year ended December 31, 2021. The fair value of RSUs as of their respective vesting dates was $ 18.6 million for the year ended December 31, 2023, $ 15.3 million for the year ended December 31, 2022 and $ 15.1 million for the year ended December 31, 2021. The following table summarizes the activity related to restricted stock award (RSA) share based payment awards: Number of Weighted- Unvested, January 1, 2023 33,637 $ 178.37 Granted 2,366 126.87 Vested ( 18,456 ) 178.82 Unvested, December 31, 2023 17,547 $ 170.96 The weighted average grant-date fair value per award of RSA awards granted was $ 126.87 , $ 148.35 and $ 172.95 during the years ended December 31, 2023, 2022 and 2021, respectively. The grant date fair value of RSAs that vested during the year was $ 3.3 million for the year ended December 31, 2023, $ 8.3 million for the year ended December 31, 2022 and $ 9.3 million for the year ended December 31, 2021. The fair value of RSAs as of their respective vesting dates was $ 2.6 million for the year ended December 31, 2023, $ 6.5 million for the year ended December 31, 2022 and $ 20.0 million for the year ended December 31, 2021. For the years ended December 31, 2023, 2022 and 2021, the Company recorded, as compensation charges related to restricted stock awards and units issued to employees and non-employees, selling, general and administrative expense of $ 9.5 million, $ 14.3 million and $ 15.4 million, respectively, cost of sales of $ 1.9 million, $ 2.2 million and $ 2.5 million, respectively, and research and development expense of $ 5.8 million, $ 6.1 million and $ 5.2 million, respectively. In connection with the vesting of restricted stock awards and units during the years ended December 31, 2023, 2022 and 2021, 53,162 , 54,856 and 67,798 shares, respectively, with aggregate fair values of $ 7.4 million, $ 8.4 million and $ 14.1 million, respectively, were withheld in satisfaction of tax withholding obligations and are reflected as a financing activity within the Consolidated Statements of Cash Flows. For the years ended December 31, 2023, 2022 and 2021, the Company recorded as compensation charges related to all restricted stock units to non-employee members of the Scientific Advisory Board, whose unvested shares are marked-to-market each reporting period, research and development expense of $ 248,000 , $ 234,000 and $ 220,000 , respectively. The Company has granted restricted stock units to non-employee members of the Board of Directors with quarterly vesting over a period of approximately one year . The fair value is equal to the market price of the Company's common stock on the date of grant. The restricted stock units are issued and expense is recognized ratably over the vesting period. For the years ended December 31, 2023, 2022 and 2021, the Company recorded compensation charges for services performed, related to all restricted stock units granted to non-employee members of the Board of Directors, selling, general and administrative expense of $ 1.5 million, $ 1.3 million and $ 1.2 million, respectively. In connection with the vesting of the restricted stock, the Company issued to non-employee members of the Board of Directors 13,016 , 8,784 and 5,412 shares during the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, the total unrecognized expense related to all restricted stock awards and units was $ 21.7 million, which the Company expects to recognize over a weighted average period of 1.80 years. Performance Unit Awards Each performance unit award is subject to both a performance-vesting requirement (either performance-based or market-based) and a service-vesting requirement. The performance-based vesting requirement is tied to EBITDA and cash flow achievement, as measured over a specific performance period. The market-based vesting requirement is tied to the Company's total shareholder return (TSR) relative to the TSR of companies comprising the Nasdaq Electronics Components Index, as measured over a three-year performance period. The maximum number of performance units that may vest based on performance is three times the shares granted. Further, if the Company's performance falls below certain thresholds, the performance units will not vest at all. The following table summarizes the activity related to performance unit awards (PSU) share based payment awards: Number of Weighted- Unvested, January 1, 2023 227,866 $ 185.57 Granted 84,448 165.72 Vested ( 11,970 ) 155.85 Forfeited ( 91,791 ) 170.96 Unvested, December 31, 2023 208,553 $ 185.86 During the years ended December 31, 2023, 2022 and 2021, the Company granted 84,448 , 100,621 and 77,086 performance units, respectively, of which 63,335 , 75,465 and 42,291 units, respectively, are subject to performance-based vesting requirements and 21,113 , 25,156 and 34,795 units, respectively, are subject to market-based vesting requirements, and which will vest over the terms described above. During the years ended December 31, 2023, 2022 and 2021, there were no ne, 1,268 , and no ne incremental performance-based shares, respectively, that vested resulting from an increased vesting factor based on Company performance. The weighted average grant date fair value per unit of the performance unit awards granted was $ 165.72 , $ 186.66 and $ 214.70 during the years ended December 31, 2023, 2022 and 2021, respectively, as determined by the Company’s common stock on date of grant for the units with performance-based vesting and a Monte-Carlo simulation for the units with market-based vesting. The grant date fair value of PSUs that vested during the year was $ 1.9 million for the year ended December 31, 2023, $ 1.9 million for the year ended December 31, 2022 and $ 1.1 million for the year ended December 31, 2021. The fair value of PSUs as of their respective vesting dates was $ 1.7 million for the year ended December 31, 2023, $ 1.8 million for the year ended December 31, 2021 and $ 2.0 million for the year ended December 31, 2021. For the years ended December 31, 2023, 2022 and 2021, the Company recorded, as compensation charges related to all performance stock units, selling, general and administrative expense of $ 2.6 million, $ 2.8 million and $ 8.0 million, respectively, cost of sales of $ 770,000 , $ 940,000 and $ 1.3 million, respectively, and research and development expense of $ 1.2 million, $ 1.5 million and $ 2.1 million, respectively. In connection with the vesting of performance units during the years ended December 31, 2023, 2022 and 2021, 5,350 , 5,082 and 3,881 shares, respectively, with aggregate fair values of $ 775,000 , $ 826,000 and $ 875,000 , respectively, were withheld in satisfaction of tax withholding obligations and are reflected as a financing activity within the Consolidated Statements of Cash Flows. As of December 31, 2023, the total unrecognized compensation expense related to performance unit awards was $ 12.9 million, which the Company expects to recognize over a weighted average period of 1.98 years. Employee Stock Purchase Plan On April 7, 2009, the Board of Directors of the Company adopted an Employee Stock Purchase Plan (ESPP). The ESPP was approved by the Company’s shareholders and became effective on June 25, 2009. The Company has reserved 1,000,000 shares of common stock for issuance under the ESPP. Unless terminated by the Board of Directors, the ESPP will expire when all reserved shares have been issued. Eligible employees may elect to contribute to the ESPP through payroll deductions during consecutive three-month purchase periods, the first of which began on July 1, 2009. Each employee who elects to participate will be deemed to have been granted an option to purchase shares of the Company’s common stock on the first day of the purchase period. Unless the employee opts out during the purchase period, the option will automatically be exercised on the last day of the period, which is the purchase date, based on the employee’s accumulated contributions to the ESPP. The purchase price will equal 85 % of the lesser of the closing price per share of common stock on the first day of the period or the last business day of the period. Employees may allocate up to 10 % of their base compensation to purchase shares of common stock under the ESPP; however, each employee may purchase no more than 12,500 shares on a given purchase date, and no employee may purchase more than $ 25,000 of common stock under the ESPP during a given calendar year. For the years ended December 31, 2023, 2022 and 2021, the Company issued 17,513 , 17,057 and 9,156 shares, respectively, of its common stock under the ESPP, resulting in proceeds of $ 2.0 million, $ 1.6 million and $ 1.5 million, respectively. For the years ended December 31, 2023, 2022 and 2021, the Company recorded charges of $ 136,000 , $ 107,000 and $ 93,000 , respectively, to selling, general and administrative expense, $ 167,000 , $ 141,000 , $ 119,000 , respectively, to cost of sales and $ 240,000 , $ 224,000 and $ 188,000 , respectively, to research and development expense, related to the ESPP equal to the amount of the discount and the value of the look-back feature. Scientific Advisory Board Awards During the years ended December 31, 2023 and 2022, the Company granted a total of 2,366 and 2,024 shares, respectively, of fully vested common stock to non-employee members of the Scientific Advisory Board for services performed in 2022 and 2021, respectively. The fair value of the shares issued to members of the Scientific Advisory Board was $ 300,000 for both years ended December 31, 2023 and 2022. |
EMPLOYEE RETIREMENT PLANS
EMPLOYEE RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans [Abstract] | |
EMPLOYEE RETIREMENT PLANS | 17. EMPLOYEE RETIREMENT PLANS: Defined Contribution Plan The Company maintains the Universal Display Corporation 401(k) Plan (the Plan) in accordance with the provisions of Section 401(k) of the Internal Revenue Code (the Code). The Plan covers substantially all full-time employees of the Company. Participants may contribute up to 90 % of their total compensation to the Plan, not to exceed the limit as defined in the Code. Once an employee is eligible to participate in the Plan, the Company will make a non-elective contribution equal to 3 % of the employee’s total compensation. For the years ended December 31, 2023, 2022 and 2021, the Company contributed $ 1.5 million, $ 1.4 million and $ 1.3 million, respectively, to the Plan. Defined Benefit Plan On March 18, 2010, the Human Capital Committee and the Board of Directors of the Company approved and adopted the Universal Display Corporation Supplemental Executive Retirement Plan (SERP), effective as of April 1, 2010. On March 3, 2015, the Human Capital Committee and the Board of Directors amended the SERP to include salary and bonus as part of the plan. Prior to this amendment, the SERP benefit did not take into account any bonuses. The purpose of the SERP, which is unfunded, is to provide certain of the Company’s key employees with supplemental pension benefits following a cessation of their employment and to encourage their continued employment with the Company. As of December 31, 2023 there were eight participants in the SERP. The SERP benefit is based on a percentage of the participant’s annual base salary and in certain cases, the participant's average annual bonus for the most recent three fiscal years ending prior to the participant's date of termination of employment with the Company for the life of the participant. For this purpose, annual base salary means 12 times the average monthly base salary paid or payable to the participant during the 24 -month period immediately preceding the participant’s date of termination of employment, or, if required, the date of a change in control of the Company. Under the SERP, if a participant resigns or is terminated without cause at or after age 65 and with at least 20 years of service, he or she will be eligible to receive a SERP benefit. The benefit is based on a percentage of the participant’s annual base salary and bonus for the life of the participant. This percentage is 50 %, 25 % or 15 %, depending on the participant’s benefit class. If a participant resigns at or after age 65 and with at least 15 years of service, he or she will be eligible to receive a prorated SERP benefit. If a participant is terminated without cause or on account of a disability after at least 15 years of service, he or she will be eligible to receive a prorated SERP benefit regardless of age. The prorated benefit in either case would be based on the participant’s number of years of service (up to 20), divided by 20 . In the event a participant is terminated for cause, his or her SERP benefit and any future benefit payments are subject to immediate forfeiture. The SERP benefit is payable in installments over 10 years, beginning at the later of age 65 or the date of the participant’s separation from service. Payments are based on a present value calculation of the benefit amount for the actuarial remaining life expectancy of the participant. This calculation is made as of the date benefit payments are to begin (later of age 65 or separation from service). If the participant dies after reaching age 65, any future or remaining benefit payments are made to the participant’s beneficiary or estate. If the participant dies before reaching age 65, the benefit is forfeited. In the event of a change in control of the Company, each participant will become immediately vested in his or her SERP benefit. Unless the participant’s benefit has already fully vested, if the participant has less than 20 years of service at the time of the change in control, he or she will receive a prorated benefit based on his or her number of years of service (up to 20), divided by 20. If the change in control qualifies as a “change in control event” for purposes of Section 409A of the Internal Revenue Code, then each participant (including former employees who are entitled to SERP benefits) will receive a lump sum cash payment equal to the present value of the benefit immediately upon the change in control. Certain of the Company’s executive officers are designated as special participants under the SERP. If these participants resign or are terminated without cause after 20 years of service, or at or after age 65 and with at least 15 years of service, they will be eligible to receive a SERP benefit. If they are terminated without cause or on account of a disability, they will be eligible to receive a prorated SERP benefit regardless of age. The prorated benefit would be based on the participant’s number of years of service (up to 20), divided by 20. The SERP benefit for special participants is based on 50 % of their annual base salary and bonus for their life and the life of their surviving spouse, if any. Payments are based on a present value calculation of the benefit amount for the actuarial remaining life expectancies of the participant and their surviving spouse, if any. If they die before reaching age 65, the benefit is not forfeited if the surviving spouse, if any, lives until the participant would have reached age 65. If their spouse also dies before the participant would have reached age 65, the benefit is forfeited. The Company records amounts relating to the SERP based on calculations that incorporate various actuarial and other assumptions, including discount rates, rate of compensation increases, retirement dates, and life expectancies. The net periodic costs are recognized as employees render the services necessary to earn the SERP benefits. In connection with the initiation and subsequent amendments of the SERP, the Company recorded cost related to prior service of $ 1.9 million as accumulated other comprehensive loss as of December 31, 2023. The prior service cost is being amortized as a component of net periodic pension cost over the average of the remaining service period of the employees expected to receive benefits under the plan. The prior service cost expected to be amortized for the year ending December 31, 2024 is $ 43,000 . In December 2022, one of the participants retired and monthly SERP benefit payments commenced in January 2023. The total SERP benefit payments for the year ended December 31, 2023 were $ 2.0 million. Information relating to the Company’s plan is as follows (in thousands): Year Ended December 31, 2023 2022 Change in benefit obligation: Benefit obligation, beginning of year $ 61,804 $ 66,773 Service cost 951 1,287 Interest cost 2,898 1,383 Actuarial gain ( 9,375 ) ( 7,639 ) Benefit payments ( 2,015 ) — Benefit obligation, end of year 54,263 61,804 Fair value of plan assets — — Unfunded status of the plan, end of year $ 54,263 $ 61,804 Current liability $ 2,014 $ 2,014 Non-current liability $ 52,249 $ 59,790 The accumulated benefit obligation for the plan was $ 52.5 million and $ 59.5 million as of December 31, 2023 and 2022, respectively. The actuarial gain of $ 9.4 million for the year ended December 31, 2023 was primarily due to a decrease in the total average annual bonus for each of the participants during the most recent three fiscal years. The actuarial gain of $ 7.6 million for the year ended December 31, 2022 was primarily due to an increase in the discount rate. The components of net periodic pension cost were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Service cost $ 951 $ 1,287 $ 1,675 Interest cost 2,898 1,383 1,165 Amortization of prior service cost 815 1,119 1,099 Amortization of loss 480 1,487 4,936 Total net periodic benefit cost $ 5,144 $ 5,276 $ 8,875 The measurement date is the Company’s fiscal year end. The net periodic pension cost is based on assumptions determined at the prior year end measurement date. Assumptions used to determine the year end benefit obligation were as follows: Year Ended December 31, 2023 2022 Discount rate 4.74 % 4.94 % Rate of compensation increases 3.50 % 3.50 % Assumptions used to determine the net periodic pension cost were as follows: Year Ended December 31, 2023 2022 2021 Discount rate 4.94 % 2.16 % 1.54 % Rate of compensation increases 3.50 % 3.50 % 3.50 % Actuarial gains and losses are amortized from accumulated other comprehensive loss into net periodic pension cost over future years based upon the average remaining service period of active plan participants, when the accumulation of such gains or losses exceeds 10 % of the year end benefit obligation. The cost or benefit of plan changes that increase or decrease benefits for prior employee service (prior service cost or credit) is included in the Company’s results of income on a straight-line basis over the average remaining service period of active plan participants. The estimated amounts to be amortized from accumulated other comprehensive loss into the net periodic pension cost in 2024 are as follows (in thousands): Amortization of prior service cost $ 43 Amortization of loss — Total $ 43 Benefit payments, which reflect estimated future service, are currently expected to be paid as follows (in thousands): Year Projected 2024 $ 2,014 2025 5,097 2026 6,141 2027 6,489 2028 6,489 2029-2033 34,503 Thereafter 14,855 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES: Commitments Under the current research agreement with USC, the Company is obligated to make certain payments to USC based on work performed by it under that agreement, and by the University of Michigan (Michigan) under a subcontractor agreement that Michigan has with USC. Under the terms of the current license agreement among the Company, Princeton and USC, the Company makes royalty payments to Princeton. See Note 11 for further explanation. The Company has agreements with five executive officers and 13 senior level employees which provide for certain cash and other benefits upon termination of employment of the officer or employee in connection with a change in control of the Company. If a covered person’s employment is terminated in connection with the change in control, the person is entitled to a lump-sum cash payment equal to two times (in the case of the executive officers) or either one or two times (in the case of the senior level employees) the sum of the average annual base salary and bonus of the person and immediate vesting of all stock options and other equity awards that may be outstanding at the date of the change in control, among other items. In order to manage manufacturing lead times and help ensure adequate material supply, the Company entered into the New OLED Materials Agreement (see Note 13) that allows PPG to procure and produce inventory based upon criteria as defined by the Company. These purchase commitments consist of firm, noncancelable and unconditional commitments. In certain instances, this agreement allows the Company the option to reschedule and adjust the Company’s requirements based on its business needs prior to firm orders being placed. As of December 31, 2023, 2022 and 2021, the Company had purchase commitments for inventory of $ 29.8 million, $ 31.9 million and $ 25.7 million, respectively. Patent Related Challenges and Oppositions Each major jurisdiction in the world that issues patents provides both third parties and applicants an opportunity to seek a further review of an issued patent. The process for requesting and considering such reviews is specific to the jurisdiction that issued the patent in question, and generally does not provide for claims of monetary damages or a review of specific claims of infringement. The conclusions made by the reviewing administrative bodies tend to be appealable and generally are limited in scope and applicability to the specific claims and jurisdiction in question. The Company believes that opposition proceedings are frequently commenced in the ordinary course of business by third parties who may believe that one or more claims in a patent do not comply with the technical or legal requirements of the specific jurisdiction in which the patent was issued. The Company views these proceedings as reflective of its goal of obtaining the broadest legally permissible patent coverage permitted in each jurisdiction. Once a proceeding is initiated, as a general matter, the issued patent continues to be presumed valid until the jurisdiction’s applicable administrative body issues a final non-appealable decision. Depending on the jurisdiction, the outcome of these proceedings could include affirmation, denial or modification of some or all of the originally issued claims. The Company believes that as OLED technology becomes more established and its patent portfolio increases in size, so will the number of these proceedings. |
CONCENTRATION OF RISK
CONCENTRATION OF RISK | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF RISK | 19. CONCENTRATION OF RISK: Revenues and accounts receivable from the Company's largest customers for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): 2023 2022 2021 Customer % of Total Revenue Accounts Receivable % of Total Revenue Accounts Receivable % of Total Revenue Accounts Receivable A 36 % $ 38,105 41 % $ 11,425 44 % $ 10,850 B 23 % 30,142 25 % 24,440 26 % 45,867 C 17 % 38,529 16 % 22,291 14 % 18,557 Revenues from outside of North America represented approximately 98 %, 97 %, and 97 % of consolidated revenue for each of the years ended December 31, 2023, 2022 and 2021, respectively. Revenues by geographic area are as follows (in thousands): Year Ended December 31, Country 2023 2022 2021 South Korea $ 322,509 $ 360,640 $ 334,835 China 229,727 230,582 192,079 Japan 6,971 5,579 7,358 Other non-U.S. locations 4,411 3,829 3,137 Total non-U.S. locations 563,618 600,630 537,409 United States 12,811 15,989 16,116 Total revenue $ 576,429 $ 616,619 $ 553,525 The Company attributes revenue to different geographic areas on the basis of the location of the customer. Property and equipment, net by geographic area are as follows (in thousands): December 31, Country 2023 2022 United States $ 118,250 $ 117,255 Ireland 42,203 20,270 Other 14,697 5,920 Total long-lived assets $ 175,150 $ 143,445 Substantially all chemical materials were purchased from one supplier. See Note 13. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 20. INCOME TAXES: The components of income before income taxes are as follows (in thousands): Year ended December 31, 2023 2022 2021 United States $ 71,514 $ 77,205 $ 60,066 Foreign 173,657 191,025 168,181 Income before income taxes $ 245,171 $ 268,230 $ 228,247 The components of the income tax expense are as follows (in thousands): Year ended December 31, 2023 2022 2021 Current income tax (expense) benefit: Federal $ ( 15,848 ) $ ( 51,980 ) $ ( 16,433 ) State ( 3,048 ) ( 1,833 ) ( 641 ) Foreign ( 27,030 ) ( 31,302 ) ( 25,212 ) ( 45,926 ) ( 85,115 ) ( 42,286 ) Deferred income tax (expense) benefit: Federal ( 460 ) 25,916 ( 844 ) State 3,936 1,216 ( 734 ) Foreign 290 ( 186 ) ( 170 ) 3,766 26,946 ( 1,748 ) Income tax expense $ ( 42,160 ) $ ( 58,169 ) $ ( 44,034 ) Reconciliation of the statutory U.S. federal tax rate to the Company's effective tax rate is as follows: Year ended December 31, 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Effect of foreign operations ( 4.0 ) ( 4.9 ) ( 5.0 ) U.S. International Tax (Sub F, GILTI, FDII) 2.9 4.2 2.1 Research tax credits ( 2.4 ) ( 1.9 ) ( 1.4 ) Redetermination of foreign tax credit utilization ( 2.0 ) — — Nondeductible employee compensation 1.7 1.9 3.0 State income taxes, net of federal benefit ( 0.2 ) 0.1 0.2 Stock based compensation 0.1 0.2 ( 0.3 ) Accruals and reserves — — ( 0.8 ) Other 0.1 1.1 0.5 Effective tax rate 17.2 % 21.7 % 19.3 % The following table summarizes Company tax credit carry forwards for tax return purposes as of December 31, 2023 (in thousands): Tax Benefit Expiration Date Tax credit carry forwards: State research tax credits $ 8,752 2034 - 2038 Foreign tax credits $ 186 2031 Total credit carry forwards $ 8,938 Significant components of the Company's net deferred tax assets and liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax asset: Capitalized research expenditures $ 39,459 $ 38,485 Retirement plan 12,555 13,495 Tax credit carry forwards 8,938 8,100 Accruals and reserves 7,180 6,944 Lease Liabilities 6,671 7,230 Deferred revenue 1,741 2,077 Stock-based compensation 1,498 1,454 Other 1,362 3,400 79,404 81,185 Valuation allowance ( 9,551 ) ( 11,087 ) Deferred tax assets 69,853 70,098 Deferred tax liability: Lease Assets ( 6,302 ) ( 6,944 ) Acquisition Goodwill ( 1,549 ) ( 1,283 ) Other ( 2,894 ) ( 3,710 ) Deferred tax liabilities ( 10,745 ) ( 11,937 ) Net deferred tax assets $ 59,108 $ 58,161 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the Company's ability to generate future taxable income to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credits. As part of its assessment, management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. At this time there is not sufficient evidence to release the valuation allowance that has been recorded for the New Jersey research and development credits and unrealized loss on investments. There are no indicators against the realizability of the remaining net deferred tax asset. The U.S.-Korean Mutual Agreement Procedure (MAP) for the years ended December 31, 2010, to December 31, 2017, was closed in September 2022, resulting in a refund of the Korean withholding taxes previously withheld. The Company filed amended U.S. federal tax returns to reflect the refund and to redetermine the foreign tax credit amount. As a result, the Company has recorded a long-term asset of $ 3.0 million in the year ended December 31, 2022. There was no long-term asset recorded for the year ended December 31, 2023. On December 27, 2018, the Korean Supreme Court, citing prior cases, held that only royalties paid with respect to Korean registered patents are considered Korean source income and subject to Korean withholding tax under the applicable law and interpretation of the Korea-U.S. Tax Treaty. The Company has incurred Korean withholding tax of $ 14.9 million for each of the years ended December 31, 2018, through December 31, 2022. Based on the Korean Supreme Court decision, a tax refund request on behalf of the Company was or will be filed with the Korean National Tax Service (KNTS) for the entire period from January 1, 2018, to December 31, 2022. The Company received a formal rejection from the KNTS; and in May 2022 filed an appeal with the Korean Tax Tribunal. On December 18th, 2023, the Company received a formal rejection from the Tax Tribunal. Anticipating the rejection of the appeal, in September 2023 the Company filed a petition to the District Court and is awaiting its decision. The Company has been advised by a prominent Korean law firm that there is a more-likely-than-not chance of success. As a result, the Company has recorded a long-term asset of $ 60.1 million and $ 60.9 million as of December 31, 2023, and December 31, 2022, respectively for the receipt of the Korean withholding tax. The Company also recorded foreign exchange loss of $ 732,000 during the year ended December 31, 2023, due to the fluctuation of the Korean Won to the U.S. Dollar and resulting remeasurement of this Won-denominated receivable. The Company will amend U.S. federal tax returns for the 2018 to 2022 years when the anticipated refund from KNTS is received to offset the additional tax liability. The Company has recorded a long-term liability of $ 15.7 million and $ 14.6 million as of December 31, 2023, and December 31, 2022, respectively, for the estimated amounts due to the U.S. federal government based on the amendment of the Company's U.S. tax returns, indicating that lower withholding amounts were required. The Company is not subject to examinations by the federal tax authority for the years prior to 2017. The Company's state and foreign tax returns are open for a period of generally three to four years . The Company is under California tax audit for 2019 and 2020 years, which is in the information-collecting stage. The above estimates may change in the future and upon settlement. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 21. REVENUE RECOGNITION: The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (Topic 606) . The standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows from a contract with a customer. For each of the years ended December 31, 2023, 2022 and 2021, the Company recorded 97 % of its revenue from OLED related sales and 3 % from the providing of services through Adesis, respectively. Contract Balances The following table provides information about assets and liabilities associated with the Company's contracts from customers (in thousands): As of December 31, 2023 Accounts receivable $ 139,850 Short-term unbilled receivables 21,084 Short-term contract assets 2,698 Long-term unbilled receivables 9,074 Long-term contract assets 9,278 Short-term deferred revenue 47,713 Long-term deferred revenue 12,006 Short-term and long-term unbilled receivables and contract assets are classified as other current assets and other assets, respectively, on the Consolidated Balance Sheets. Contract assets represent consideration related to the renewal of customer contracts which is recognized over the contract term based on material units sold. The deferred revenue balance as of December 31, 2023 will be recognized as materials are shipped to customers over the remaining contract periods. As of December 31, 2023, the Company had $ 25.2 million of backlog associated with committed purchase orders from its customers for phosphorescent emitter material. These orders are anticipated to be fulfilled within the next 90 days. Significant changes in the assets and liabilities balances associated with the Company's contracts from customers for the years ended December 31, 2023 and 2022, are as follows (in thousands): Year Ended December 31, 2023 Assets Liabilities Balance at December 31, 2022 $ 38,457 $ ( 63,878 ) Revenue recognized that was previously included in deferred revenue, net — 195,703 Increases due to cash received — ( 202,100 ) Cumulative catch-up adjustment arising from changes in estimates of — 10,556 Unbilled receivables recorded, net 41,659 — Contract assets recorded, net ( 2,407 ) — Transferred to receivables from unbilled receivables ( 35,575 ) — Net change 3,677 4,159 Balance at December 31, 2023 $ 42,134 $ ( 59,719 ) Year Ended December 31, 2022 Assets Liabilities Balance at December 31, 2021 $ 8,127 $ ( 157,081 ) Revenue recognized that was previously included in deferred revenue, net — 239,608 Increases due to cash received — ( 176,667 ) Cumulative catch-up adjustment arising from changes in estimates of — 30,262 Unbilled receivables recorded, net 15,946 — Contract assets recorded, net 14,384 — Net change 30,330 93,203 Balance at December 31, 2022 $ 38,457 $ ( 63,878 ) The cumulative catch-up adjustment arising from changes in estimates of transaction price, net was $ 10.6 million for the year ended December 31, 2023 as compared to $ 30.3 million for the year ended December 31, 2022. These adjustments resulted from an increase in the average price per gram that was primarily due to the decrease in anticipated demand by several of the Company's customers over the remaining lives of their contracts, resulting from changes in global macroeconomic factors. |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME PER COMMON SHARE | 22. NET INCOME PER COMMON SHARE: The Company computes earnings per share in accordance with ASC Topic 260, Earnings per Share , which requires earnings per share (EPS) for each class of stock to be calculated using the two-class method. The two-class method is an allocation of income between the holders of common stock and the Company's participating security holders. Under the two-class method, income for the reporting period is allocated between common shareholders and other security holders based on their respective participation rights in undistributed income. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and, therefore, are included in computing earnings per share pursuant to the two-class method. Basic net income per common share is computed by dividing net income allocated to common shareholders by the weighted-average number of shares of common stock outstanding for the period excluding unvested restricted stock units and performance units. Net income allocated to the holders of the Company's unvested restricted stock awards is calculated based on the shareholders proportionate share of weighted average shares of common stock outstanding on an if-converted basis. For purposes of determining diluted net income per common share, basic net income per share is further adjusted to include the effect of potential dilutive common shares outstanding, including restricted stock units, performance units and the impact of shares to be issued under the Company's Employee Stock Purchase Plan. The following table is a reconciliation of net income and the shares used in calculating basic and diluted net income per common share for the years ended December 31, 2023, 2022 and 2021 (in thousands, except share and per share data): Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 203,011 $ 210,061 $ 184,213 Adjustment for Basic EPS: Earnings allocated to unvested shareholders ( 993 ) ( 1,215 ) ( 1,137 ) Adjusted net income $ 202,018 $ 208,846 $ 183,076 Denominator: Weighted average common shares outstanding – Basic 47,559,669 47,390,352 47,296,447 Effect of dilutive shares: Common stock equivalents arising from stock options and ESPP 2,173 2,340 1,010 Restricted stock awards and units and performance units 60,921 75,815 67,978 Weighted average common shares outstanding – Diluted 47,622,763 47,468,507 47,365,435 Net income per common share: Basic $ 4.25 $ 4.41 $ 3.87 Diluted $ 4.24 $ 4.40 $ 3.87 For the years ended December 31, 2023, 2022, and 2021, the combined effects of unvested restricted stock awards, restricted stock units, performance unit awards and stock options of 36,345 , 122,843 and none , respectively, were excluded from the calculation of diluted EPS as their impact would have been antidilutive. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Universal Display Corporation and its wholly owned subsidiaries, UDC, Inc., UDC Ireland Limited (UDC Ireland), Universal Display Corporation Hong Kong, Limited, Universal Display Corporation Korea, Y.H. (UDC Korea), Universal Display Corporation Japan GK, Universal Display Corporation China, Ltd., Adesis, Inc. (Adesis), UDC Ventures LLC, OVJP Corporation (OVJP Corp) and OLED Material Manufacturing Limited (OMM). All intercompany transactions and accounts have been eliminated. |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation Certain prior year adjustments to reconcile net income to net cash provided by operating activities have been reclassified on the Consolidated Statements of Cash Flows to conform to the current year presentation. These adjustments have been consolidated into their respective operating assets and liabilities accounts, specifically, inventory, other current assets, other assets and deferred revenue. |
Management's Use of Estimates | Management’s Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates made are principally in the areas of revenue recognition including estimates of material unit sales and royalties, the useful life of acquired intangibles, lease liabilities, right-of-use assets, the use and recoverability of inventories, intangibles, investments and income taxes including realization of deferred tax assets, stock-based compensation and retirement benefit plan liabilities. Actual results could differ from those estimates. |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments The Company considers all highly liquid debt instruments purchased with an original maturity (maturity at the purchase date) of three months or less to be cash equivalents. The Company classifies its remaining investments as available-for-sale. These securities (excluding minority equity investments) are carried at fair market value, with unrealized gains and losses reported in shareholders’ equity. Gains or losses on securities sold are based on the specific identification method. |
Trade Accounts Receivable | Trade Accounts Receivable Trade accounts receivable are stated at the amount the Company expects to collect and do not bear interest. The Company considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company’s accounts receivable balance is a result of chemical sales, royalties and license fees. These receivables have historically been paid timely. Due to the nature of the accounts receivable balance, the Company believes there is no significant collection risk. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, allowances for credit losses would be required. As of December 31, 2023 and 2022, the allowance for credit losses was $ 166,000 and $ 279,000 , respectively. |
Inventories | Inventories Inventories consist of raw materials, work-in-process and finished goods, and are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value. Inventory valuation and firm committed purchase order assessments are performed on a quarterly basis and those items that are identified to be obsolete or in excess of forecasted usage are written down to their estimated realizable value. Estimates of realizable value are based upon management’s analyses and assumptions, including, but not limited to, forecasted sales levels by product, expected product lifecycle, product development plans and future demand requirements. A 12-month rolling forecast based on factors, including, but not limited to, production cycles, anticipated product orders, marketing forecasts, backlog, and shipment activities is used in the inventory analysis. If market conditions are less favorable than forecasts or actual demand from customers is lower than estimates, additional inventory write-downs may be required. If demand is higher than expected, inventories that had previously been written down may be sold. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful life of 30 years for buildings, 15 years for building improvements, and three to seven years for office and lab equipment and furniture and fixtures. Repair and maintenance costs are charged to expense as incurred. Additions and betterments are capitalized. Major renewals and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to current operations as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the Consolidated Balance Sheets and any gain or loss is reflected in other operating expenses. Certain costs of computer software obtained for internal use are capitalized and amortized on a straight-line basis over three years . Costs for maintenance and training, as well as the cost of software that does not add functionality to an existing system, are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Company management continually evaluates whether events or changes in circumstances might indicate that the remaining estimated useful life of long-lived assets may warrant revision, or that the remaining balance may not be recoverable. When factors indicate that long-lived assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted cash flows in measuring whether the long-lived asset should be written down to fair value. Measurement of the amount of impairment would be based on generally accepted valuation methodologies, as deemed appropriate. As of December 31, 2023, Company management believed that no revision to the remaining useful lives or write-down of the Company’s long-lived assets was required, and similarly, no such revisions were required for the years ended December 31, 2022 or 2021. |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets Goodwill is tested for impairment in the fourth fiscal quarter and, when specific circumstances dictate, between annual tests. If after assessing the totality of events or circumstances as those described in the qualitative assessment, it is determined that it is more likely than not the fair value of a reporting unit is less than its carrying amount, then a quantitative goodwill impairment test will be performed. Under the quantitative test, the fair value of the reporting unit is compared to its carrying amount including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit would be considered not impaired. However, if the carrying amount of the reporting unit exceeds its fair value, an impairment loss would be recognized in the amount equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. The Company performed its annual impairment assessment as of December 31, 2023 utilizing a qualitative assessment and concluded that it was more likely than not that the fair value of Adesis is greater than its carrying value. Future impairment tests will continue to be performed annually in the fiscal fourth quarter, or sooner if a triggering event occurs. As of December 31, 2023, no indications of impairment existed. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of accounts receivable, other current assets, accounts payable and other current liabilities approximate fair value in the accompanying Consolidated Financial Statements due to the short-term nature of those instruments. The Company’s other financial instruments, which include cash equivalents and investments (excluding minority equity investments) are carried at fair value. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability and are based on market data obtained from sources independent of the Company. Unobservable inputs reflect assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. |
Minority Equity Investments | Minority Equity Investments The Company accounts for minority equity investments in companies that are not accounted for under the equity method as equity securities without readily determinable fair values. The value of these securities is based on original cost less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment in the same issuer. Under this method, the share of income or loss of such companies is not included in the Consolidated Statements of Income. The carrying value of these investments is included in investments on the Consolidated Balance Sheets. The Company’s policy is to recognize an impairment in the value of its minority equity investments when evidence of an impairment exists. Factors considered in the assessment include a significant adverse change in the regulatory, economic, or technological environment, the completion of new equity financing that may indicate a decrease in value, the failure to complete new equity financing arrangements after seeking to raise additional funds, or the commencement of proceedings under which the assets of the business may be placed in receivership or liquidated to satisfy the claims of debt and equity stakeholders. The impairment in the value of minority equity investments is included in the other (loss) income, net line item on the Consolidated Statements of Income. |
Leases | Leases The Company is a lessee in operating leases primarily incurred to facilitate manufacturing, research and development, and selling, general and administrative activities. At contract inception, the Company determines if an arrangement is or contains a lease, and if so recognizes a right-of-use asset and lease liability at the lease commencement date. For operating leases, the lease liability is measured at the present value of the unpaid lease payments at the lease commencement date, whereas for finance leases, the lease liability is initially measured at the present value of the unpaid lease payments and subsequently measured at amortized cost using the interest method. Operating lease right-of-use assets are included in other assets on the Consolidated Balance Sheets. The short-term portion of operating lease liabilities is included in other current liabilities on the Consolidated Balance Sheets and the long-term portion is included in other liabilities on the Consolidated Balance Sheets. As of December 31, 2023, the Company had no leases that qualified as financing arrangements. Key estimates and judgments include how the Company determines the discount rate used to discount the unpaid lease payments to present value and the lease term. The Company monitors for events or changes in circumstances that could potentially require recognizing an impairment loss. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue Material sales relate to the Company’s sale of its OLED materials for incorporation into its customers’ commercial OLED products or for their OLED development and evaluation activities. Revenue associated with material sales is generally recognized at the time title passes, which is typically at the time of shipment or at the time of delivery, depending upon the contractual agreement between the parties. Revenue may be recognized after control of the material passes in the event the transaction price includes variable consideration. For example, a customer may be provided an extended opportunity to stock materials prior to use in mass production and given a general right of return not conditioned on breaches of warranties associated with the specific product. In such circumstances, revenue will be recognized at the earlier of the expiration of the customer’s general right of return or once it becomes unlikely that the customer will exercise its right of return. The vast majority of revenue attributed to material sales is determined through technology license agreements and material supply agreements the terms of which are jointly agreed upon with the Company’s customers. The remaining revenue recognized is in the form of contract research services revenue earned by the Company’s subsidiary, Adesis, Inc., and the Company’s occasional material sales to smaller customers. None of the revenue recognized during the years ended December 31, 2023, 2022 or 2021 resulted solely from royalty or license fee arrangements as to which there were not associated material sales. The rights and benefits to the Company’s OLED technologies are conveyed to the customer through technology license agreements and material supply agreements. The Company believes that the licenses and materials sold under these combined agreements are not distinct from each other for financial reporting purposes and as such, they are accounted for as a single performance obligation. Accordingly, total contract consideration is estimated and recognized over the contract term based on material units sold at the estimated per unit fee over the life of the contract. Total contract consideration is allocated to material sales and royalty and licensing fees on the Consolidated Statements of Income based on contract pricing. Various estimates are relied upon to recognize revenue. The Company estimates total material units to be purchased by its customers over the contract term based on historical trends, industry estimates and its forecast process. Management uses the expected value method to estimate the material per unit fee. Additionally, management estimates the sales-based portion of royalty revenue based on the estimated net sales revenue of its customers over the contract term. Contract research services revenue is revenue earned by Adesis by providing chemical materials synthesis research, development and commercialization for non-OLED applications on a contractual basis. These services range from intermediates for structure-activity relationship studies, reference agents and building blocks for combinatorial synthesis, re-synthesis of key intermediates, specialty organic chemistry needs, and selective toll manufacturing. These services are provided to third-party pharmaceutical and life sciences firms and other technology firms at fixed costs or predetermined rates on a contract basis. Revenue is recognized as services are performed with billing schedules and payment terms negotiated on a contract-by-contract basis. Payments received in excess of revenue recognized are recorded as deferred revenue. In other cases, services may be provided and revenue is recognized before the customer is invoiced. In these cases, revenue recognized will exceed amounts billed and the difference, representing amounts which are currently unbillable to the customer pursuant to contractual terms, is recorded as an unbilled receivable. Technology development and support revenue is revenue earned from development and technology evaluation agreements and commercialization assistance fees. Technology development and support revenue is included in contract research services on the Consolidated Statements of Income. On December 2, 2022, the Company entered into a commercial patent license agreement with Samsung Display Co., Ltd. (SDC), replacing a previous license agreement that had been in place since 2018. This agreement, which covers the manufacture and sale of specified OLED display materials, was effective as of January 1, 2023 and lasts through the end of 2027 with an additional two-year extension option for SDC. Under this agreement, the Company is being paid a license fee, which includes quarterly and annual payments over the agreement term of five years . The agreement conveys to SDC the non-exclusive right to use certain of the Company's intellectual property assets for a limited period of time that is less than the estimated life of the assets. At the same time the Company entered into the current commercial license agreement with SDC, the Company also entered into a new supplemental material purchase agreement with SDC, which lasts for the same term as the license agreement and is subject to the same extension option. This new material purchase agreement replaced a previous purchase agreement that had been in place since 2018. Under the supplemental material purchase agreement, SDC agrees to purchase red and green phosphorescent emitter materials from the Company for use in the manufacture of licensed products. This amount purchased is subject to SDC’s requirements for phosphorescent emitter materials and the Company’s ability to meet these requirements over the term of the supplemental agreement. In 2015, the Company entered into an OLED patent license agreement and an OLED commercial supply agreement with LG Display Co., Ltd. (LG Display), which were effective as of January 1, 2015. The terms of these agreements were extended by a January 1, 2021 amendment through the end of 2025. The patent license agreement provides LG Display a non-exclusive, royalty bearing portfolio license to make and sell OLED displays under the Company's patent portfolio. The patent license calls for license fees, prepaid royalties and running royalties on licensed products. The OLED commercial supply agreement provides for the sale of materials for use by LG Display, which may include phosphorescent emitters and host materials. The agreements provide for certain other minimum obligations relating to the volume of material sales anticipated over the lives of the agreements as well as minimum royalty revenue. In 2023, the Company entered into new long-term, multi-year agreements with BOE Technology Group Co., Ltd. (BOE). Under these agreements, the Company has granted BOE non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The Company supplies phosphorescent OLED materials to BOE for use in its licensed products. In 2019, the Company entered into an evaluation and commercial supply relationship with Wuhan China Star Optoelectronics Semiconductor Display Technology Co., Ltd. (CSOT). In 2020, the Company entered into long-term, multi-year agreements with CSOT. Under these agreements, the Company has granted CSOT non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The Company also supplies phosphorescent OLED materials to CSOT for use in its licensed products. In 2018, the Company entered into long-term, multi-year OLED patent license and material purchase agreements with Visionox Technology, Inc. (Visionox). Under the license agreement, the Company granted certain of Visionox’s affiliates non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The license agreement calls for license fees and running royalties on licensed products. Additionally, the Company supplies phosphorescent OLED materials to Visionox for use in its licensed products. In 2021, the Company announced that it had extended the Visionox agreement by entering into new five-year OLED material supply and license agreements with a new affiliate of Visionox, Visionox Hefei Technology Co. Ltd. In 2016, the Company entered into long-term, multi-year OLED patent license and material purchase agreements with Tianma Micro-electronics Co., Ltd. (Tianma). Under the license agreement, the Company has granted Tianma non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The license agreement calls for license fees and running royalties on licensed products. Additionally, the Company supplies phosphorescent OLED materials to Tianma for use in its licensed products. In 2021, the parties extended the terms of both the patent license and material purchase agreements for an additional multi-year-term. All material sales transactions that are not variable consideration transactions are billed and due within 90 days and substantially all are transacted in U.S. dollars. |
Cost of Sales | Cost of Sales Cost of sales consists of labor and material costs associated with the production of materials processed at the facilities of the Company's manufacturing partner, PPG Industries, Inc. (PPG) and at the Company's internal facilities. The Company’s portion of cost of sales also includes depreciation of manufacturing equipment, as well as manufacturing overhead costs and inventory adjustments for excess and obsolete inventory. |
Research and Development | Research and Development Expenditures for research and development are charged to expense as incurred. |
Patent Costs | Patent Costs Costs associated with patent applications, patent prosecution, patent defense and the maintenance of patents are charged to expense as incurred. Costs to successfully defend a challenge to a patent are capitalized to the extent of an evident increase in the value of the patent. Costs that relate to an unsuccessful outcome are charged to expense. |
Amortization of Acquired Technology | Amortization of Acquired Technology Amortization costs primarily relate to technology acquired from Merck KGaA, Darmstadt, Germany (Merck KGaA), BASF SE (BASF) and Fujifilm Corporation ( Fujifilm). The Merck KGaA acquisition was completed on April 28, 2023. The BASF and Fujifilm acquisitions were completed in the years ended December 31, 2016 and 2012, respectively. Acquisition costs are being amortized over a period of 10 years for the Merck KGaA and BASF patents. The Fujifilm acquired technology was fully amortized over a period of 10 years that ended in July 2022. |
Amortization of Other Intangible Assets | Amortization of Other Intangible Assets Other intangible assets from the Adesis acquisition are being amortized over a period of 10 to 15 years . See Note 7 for further discussion. |
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions | Translation of Foreign Currency Financial Statements and Foreign Currency Transactions The Company’s reporting currency is the U.S. dollar. The functional currency for the UDC Ireland and UDC Korea subsidiaries are also the U.S. dollar and the functional currency for the OMM subsidiary and each of the Company's other Asia-Pacific foreign subsidiaries is its respective local currency. The Company translates the amounts included in the Consolidated Statements of Income from OMM and its Asia-Pacific foreign subsidiaries into U.S. dollars at weighted-average exchange rates, which the Company believes are representative of the actual exchange rates on the dates of the transactions. The Company's OMM subsidiary and each of the Company's other Asia-Pacific foreign subsidiaries' assets and liabilities are translated into U.S. dollars from the local currency at the actual exchange rates as of the end of each reporting date, and the Company records the resulting foreign exchange translation adjustments in the Consolidated Balance Sheets as a component of accumulated other comprehensive loss. The overall effect of the translation of foreign currency and foreign currency transactions to date has been insignificant. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount of which the likelihood of realization is greater than 50 % . Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties, if any, related to unrecognized tax benefits as a component of tax expense. |
Share-Based Payment Awards | Share-Based Payment Awards The Company recognizes in the Consolidated Statements of Income the grant-date fair value of equity-based awards such as shares issued under employee stock purchase plans, restricted stock awards, restricted stock units and performance unit awards issued to employees and directors. The grant-date fair value of stock awards is based on the closing price of the stock on the date of grant. The fair value of share-based awards is recognized as compensation expense on a straight-line basis over the requisite service period, net of forfeitures. The Company issues new shares upon the respective grant, exercise or vesting of the share-based payment awards, as applicable. Performance unit awards are subject to either a performance-based or market-based vesting requirement. For performance-based vesting, the grant-date fair value of the award, based on fair value of the Company's common stock, is recognized over the service period based on an assessment of the likelihood that the applicable performance goals will be achieved, and compensation expense is periodically adjusted based on actual and expected performance. Compensation expense for performance unit awards with market-based vesting is calculated based on the estimated fair value as of the grant date utilizing a Monte Carlo simulation model and is recognized over the service period on a straight-line basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with FASB ASC 606. The adoption of ASU 2021-08, beginning on January 1, 2023, did not have a impact on the Consolidated Financial Statements and related disclosures. In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 450-50): Disclosure of Supplier Finance Program Obligations , which require disclosures about a buyer's supplier finance program. The adoption of ASU 2022-04, beginning on January 1, 2023, did not have a impact on the Consolidated Financial Statements and related disclosures. Accounting Standards Issued But Not Yet Adopted In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . Under this standard, a contractual restriction on the sale of an equity security is not considered in measuring the security's fair value. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. ASU 2022-03 becomes effective January 1, 2024, and will not have a significant impact on the Consolidated Financial Statements and related disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The standard improves the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 becomes effective January 1, 2024, and the Company is evaluating the potential impact of this standard on the Consolidated Financial Statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740) . The standard enhances to the annual income tax disclosures to address investor requests for more information about the tax risks and opportunities present in an entity's worldwide operations. ASU 2023-09 becomes effective January 1, 2025, and the Company is evaluating the potential impact of this standard on its income tax disclosures. |
CASH, CASH EQUIVALENTS AND IN_2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents | The following table provides details regarding the Company’s portfolio of cash and cash equivalents (in thousands): Amortized Unrealized Aggregate Fair Cash and Cash Equivalents Classification Cost Gains (Losses) Market Value December 31, 2023 Cash accounts in banking institutions $ 91,717 $ — $ — $ 91,717 Money market accounts 268 — — 268 $ 91,985 $ — $ — $ 91,985 December 31, 2022 Cash accounts in banking institutions $ 86,268 $ — $ — $ 86,268 Money market accounts 7,162 — — 7,162 $ 93,430 $ — $ — $ 93,430 |
Schedule of Investments | The following table provides details regarding the Company’s portfolio of short-term investments (in thousands): Amortized Unrealized Aggregate Fair Short-term Investments Classification Cost Gains (Losses) Market Value December 31, 2023 Corporate bonds $ 1,763 $ 1 $ ( 5 ) $ 1,759 U.S. Government bonds 420,769 303 ( 694 ) 420,378 $ 422,532 $ 304 $ ( 699 ) $ 422,137 December 31, 2022 Corporate bonds $ 150,698 $ — $ ( 910 ) $ 149,788 U.S. Government bonds 339,472 32 ( 4,947 ) 334,557 $ 490,170 $ 32 $ ( 5,857 ) $ 484,345 The following table provides details regarding the Company’s portfolio of long-term investments (in thousands): Amortized Unrealized Aggregate Fair Long-term Investments Classification Cost Gains (Losses) Market Value December 31, 2023 U.S. Government bonds $ 284,053 $ 1,457 $ ( 8 ) $ 285,502 $ 284,053 $ 1,457 $ ( 8 ) $ 285,502 December 31, 2022 Corporate bonds $ 2,479 $ — $ ( 28 ) $ 2,451 U.S. Government bonds 247,464 52 ( 2,152 ) $ 245,364 $ 249,943 $ 52 $ ( 2,180 ) $ 247,815 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2023 (in thousands): Fair Value Measurements, Using Total Carrying Value Quoted Prices in Significant Other Significant Unobservable Cash equivalents $ 268 $ 268 $ — $ — Short-term Corporate bonds 1,759 1,759 — — Short-term U.S. Government bonds 420,378 420,378 — — Long-term U.S. Government bonds 285,502 285,502 — — The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2022 (in thousands): Fair Value Measurements, Using Total Carrying Value Quoted Prices in Significant Other Significant Unobservable Cash equivalents $ 7,162 $ 7,162 $ — $ — Short-term Corporate bonds 149,788 149,788 — — Short-term U.S. Government bonds 334,557 334,557 — — Long-term Corporate bonds 2,451 2,451 — — Long-term U.S. Government bonds 245,364 245,364 — — |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in thousands): December 31, 2023 2022 Raw materials $ 113,400 $ 115,448 Work-in-process 9,433 7,626 Finished goods 52,962 60,146 Inventory $ 175,795 $ 183,220 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net consist of the following (in thousands): December 31, 2023 2022 Land $ 12,230 $ 2,642 Building and improvements 116,903 99,586 Office and lab equipment 148,465 129,697 Furniture, fixtures and computer related assets 18,970 18,071 Construction-in-progress 22,490 10,567 319,058 260,563 Less: Accumulated depreciation ( 143,908 ) ( 117,118 ) Property and equipment, net $ 175,150 $ 143,445 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule of Acquired Technology | December 31, 2023 (1) 2022 PD-LD, Inc. $ — $ 1,481 Motorola — 15,909 Merck KGaA 66,012 — BASF 95,989 95,989 Fujifilm 109,462 109,462 Other 5,712 5,212 277,175 228,053 Less: Accumulated amortization ( 186,850 ) ( 189,671 ) Acquired technology, net $ 90,325 $ 38,382 (1) During the year ended December 31, 2023, the gross value and accumulated amortization associated with the PD-LD, Inc. and Motorola patent portfolios have been removed from the table as the underlying patents have reached the end of their useful lives. |
Schedule of Other Intangible Assets | At December 31, 2023, these other intangible assets consist of the following (in thousands): December 31, 2023 Gross Carrying Accumulated Net Carrying Customer relationships $ 10,520 $ ( 6,801 ) $ 3,719 Developed IP, processes and recipes 4,820 ( 2,388 ) 2,432 Trade name/Trademarks 1,500 ( 1,118 ) 382 Other 448 ( 107 ) 341 Total identifiable other intangible assets $ 17,288 $ ( 10,414 ) $ 6,874 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Text Block [Abstract] | |
Other Asset | Other assets consist of the following (in thousands): December 31, 2023 2022 Long-term taxes receivable $ 60,146 $ 63,915 Right-of-use assets 24,910 31,486 Long-term unbilled receivables 9,074 — Long-term contract assets 9,278 11,651 Other long-term assets 1,881 2,687 Other assets $ 105,289 $ 109,739 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Operating Lease Cost and Supplemental Cash Flow Information Related to Operating Leases | Year Ended December 31, 2023 2022 2021 Operating lease cost $ 4,639 $ 4,436 $ 3,637 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 1,072 $ 4,750 $ 26,174 |
Schedule Of Operating Lease Right of Use Assets and Liabilities | The following table presents the Company’s operating lease right-of-use assets and liabilities (in thousands): December 31, 2023 2022 Right-of-use assets $ 24,910 $ 31,486 Short-term lease liabilities 3,533 3,737 Long-term lease liabilities 22,855 29,039 |
Schedule of Weighted Average Assumptions Used to Compute Right-of-use Assets and Lease Liabilities | The following table presents weighted average assumptions used to compute the Company’s right-of-use assets and lease liabilities: December 31, 2023 Weighted average remaining lease term (in years) 6.7 Weighted average discount rate 3.7 % |
Schedule of Undiscounted Future Minimum Lease Payments Having Non-cancelable Lease Terms | Undiscounted future minimum lease payments as of December 31, 2023, by year and in the aggregate, having non-cancelable lease terms in excess of one year were as follows (in thousands): Maturities of Operating Lease Liabilities 2024 $ 4,267 2025 4,321 2026 4,401 2027 4,323 2028 3,996 Thereafter 8,083 Total lease payments 29,391 Less: imputed interest ( 3,003 ) Present value of lease payments $ 26,388 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following (in thousands): December 31, 2023 2022 Compensation $ 29,456 $ 31,751 PPG Industries, Inc. agreement 11,962 9,864 Consulting 2,121 910 Professional fees 1,124 906 Research and development agreements 822 662 Royalties 647 877 Other 5,948 6,032 Accrued expenses $ 52,080 $ 51,002 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities [Abstract] | |
Schedule of other liabilities | Other liabilities consist of the following (in thousands): December 31, 2023 2022 Long-term lease liabilities $ 22,855 $ 29,039 Long-term taxes payable 15,749 14,592 Other long-term liabilities 54 54 Other liabilities $ 38,658 $ 43,685 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Amounts related to the changes in accumulated other comprehensive loss were as follows (in thousands): Unrealized Net Unrealized (2) Change in Cumulative Total Affected Line items in the Balance January 1, 2021, net of tax $ 91 $ ( 36,075 ) $ ( 35 ) $ ( 36,019 ) Other comprehensive (loss) gain ( 233 ) 13,620 ( 39 ) 13,348 Plan amendment cost — ( 283 ) — ( 283 ) (1) — 4,719 — 4,719 Selling, general and administrative, Change during period ( 233 ) 18,056 ( 39 ) 17,784 Balance December 31, 2021, net of tax ( 142 ) ( 18,019 ) ( 74 ) ( 18,235 ) Other comprehensive (loss) gain ( 7,745 ) 5,971 ( 480 ) ( 2,254 ) (1) — 2,037 — 2,037 Selling, general and administrative, Change during period ( 7,745 ) 8,008 ( 480 ) ( 217 ) Balance December 31, 2022, net of tax ( 7,887 ) ( 10,011 ) ( 554 ) ( 18,452 ) Other comprehensive (loss) gain 8,745 7,207 418 16,370 (1) — 996 — 996 Selling, general and administrative, Change during period 8,745 8,203 418 17,366 Balance December 31, 2023, net of tax $ 858 $ ( 1,808 ) $ ( 136 ) $ ( 1,086 ) (1) The Company reclassified amortization of prior service cost, actuarial loss and plan amendment cost for its retirement plan from accumulated other comprehensive loss to net income of $ 1.0 million, $ 2.0 million and $ 4.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. Refer to Note 17: Employee Retirement Plans |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Stock and Units Activity | The following table summarizes the activity related to restricted stock unit (RSU) share based payment awards: Number of Weighted- Unvested, January 1, 2023 230,223 $ 165.13 Granted 121,896 136.22 Vested ( 132,010 ) 163.85 Forfeited ( 3,623 ) 152.21 Unvested, December 31, 2023 216,486 $ 149.68 The weighted average grant-date fair value per unit of RSU awards granted was $ 136.22 , $ 140.37 and $ 208.67 during the years ended December 31, 2023, 2022 and 2021, respectively. The grant date fair value of RSUs that vested during the year was $ 21.6 million for the year ended December 31, 2023, $ 18.0 million for the year ended December 31, 2022 and $ 12.5 million for the year ended December 31, 2021. The fair value of RSUs as of their respective vesting dates was $ 18.6 million for the year ended December 31, 2023, $ 15.3 million for the year ended December 31, 2022 and $ 15.1 million for the year ended December 31, 2021. The following table summarizes the activity related to restricted stock award (RSA) share based payment awards: Number of Weighted- Unvested, January 1, 2023 33,637 $ 178.37 Granted 2,366 126.87 Vested ( 18,456 ) 178.82 Unvested, December 31, 2023 17,547 $ 170.96 |
Schedule of Nonvested Performance-Based Units Activity | The following table summarizes the activity related to performance unit awards (PSU) share based payment awards: Number of Weighted- Unvested, January 1, 2023 227,866 $ 185.57 Granted 84,448 165.72 Vested ( 11,970 ) 155.85 Forfeited ( 91,791 ) 170.96 Unvested, December 31, 2023 208,553 $ 185.86 |
EMPLOYEE RETIREMENT PLANS (Tabl
EMPLOYEE RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans [Abstract] | |
Information Relating to the Company's Plan | Information relating to the Company’s plan is as follows (in thousands): Year Ended December 31, 2023 2022 Change in benefit obligation: Benefit obligation, beginning of year $ 61,804 $ 66,773 Service cost 951 1,287 Interest cost 2,898 1,383 Actuarial gain ( 9,375 ) ( 7,639 ) Benefit payments ( 2,015 ) — Benefit obligation, end of year 54,263 61,804 Fair value of plan assets — — Unfunded status of the plan, end of year $ 54,263 $ 61,804 Current liability $ 2,014 $ 2,014 Non-current liability $ 52,249 $ 59,790 |
Components of Net Periodic Pension Cost | The components of net periodic pension cost were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Service cost $ 951 $ 1,287 $ 1,675 Interest cost 2,898 1,383 1,165 Amortization of prior service cost 815 1,119 1,099 Amortization of loss 480 1,487 4,936 Total net periodic benefit cost $ 5,144 $ 5,276 $ 8,875 |
Assumptions Used to Determine Benefit Obligation and Net Periodic Pension Cost | Assumptions used to determine the year end benefit obligation were as follows: Year Ended December 31, 2023 2022 Discount rate 4.74 % 4.94 % Rate of compensation increases 3.50 % 3.50 % Assumptions used to determine the net periodic pension cost were as follows: Year Ended December 31, 2023 2022 2021 Discount rate 4.94 % 2.16 % 1.54 % Rate of compensation increases 3.50 % 3.50 % 3.50 % |
Amounts to be Amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in Next Fiscal Year | The estimated amounts to be amortized from accumulated other comprehensive loss into the net periodic pension cost in 2024 are as follows (in thousands): Amortization of prior service cost $ 43 Amortization of loss — Total $ 43 |
Benefit Payments Expected to be Paid | Benefit payments, which reflect estimated future service, are currently expected to be paid as follows (in thousands): Year Projected 2024 $ 2,014 2025 5,097 2026 6,141 2027 6,489 2028 6,489 2029-2033 34,503 Thereafter 14,855 |
CONCENTRATION OF RISK (Tables)
CONCENTRATION OF RISK (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Revenues and Accounts Receivable From Our Largest Customers | Revenues and accounts receivable from the Company's largest customers for the years ended December 31, 2023, 2022 and 2021 were as follows (in thousands): 2023 2022 2021 Customer % of Total Revenue Accounts Receivable % of Total Revenue Accounts Receivable % of Total Revenue Accounts Receivable A 36 % $ 38,105 41 % $ 11,425 44 % $ 10,850 B 23 % 30,142 25 % 24,440 26 % 45,867 C 17 % 38,529 16 % 22,291 14 % 18,557 |
Revenues by Geographic Area | Revenues by geographic area are as follows (in thousands): Year Ended December 31, Country 2023 2022 2021 South Korea $ 322,509 $ 360,640 $ 334,835 China 229,727 230,582 192,079 Japan 6,971 5,579 7,358 Other non-U.S. locations 4,411 3,829 3,137 Total non-U.S. locations 563,618 600,630 537,409 United States 12,811 15,989 16,116 Total revenue $ 576,429 $ 616,619 $ 553,525 |
Long-Lived Assets (Net) by Geographic Area | Property and equipment, net by geographic area are as follows (in thousands): December 31, Country 2023 2022 United States $ 118,250 $ 117,255 Ireland 42,203 20,270 Other 14,697 5,920 Total long-lived assets $ 175,150 $ 143,445 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) before Income Taxes | The components of income before income taxes are as follows (in thousands): Year ended December 31, 2023 2022 2021 United States $ 71,514 $ 77,205 $ 60,066 Foreign 173,657 191,025 168,181 Income before income taxes $ 245,171 $ 268,230 $ 228,247 |
Components of Income Tax Expense | The components of the income tax expense are as follows (in thousands): Year ended December 31, 2023 2022 2021 Current income tax (expense) benefit: Federal $ ( 15,848 ) $ ( 51,980 ) $ ( 16,433 ) State ( 3,048 ) ( 1,833 ) ( 641 ) Foreign ( 27,030 ) ( 31,302 ) ( 25,212 ) ( 45,926 ) ( 85,115 ) ( 42,286 ) Deferred income tax (expense) benefit: Federal ( 460 ) 25,916 ( 844 ) State 3,936 1,216 ( 734 ) Foreign 290 ( 186 ) ( 170 ) 3,766 26,946 ( 1,748 ) Income tax expense $ ( 42,160 ) $ ( 58,169 ) $ ( 44,034 ) |
Reconciliation of the Statutory U.S. Federal Tax Rate to the Effective Tax Rate | Reconciliation of the statutory U.S. federal tax rate to the Company's effective tax rate is as follows: Year ended December 31, 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % Effect of foreign operations ( 4.0 ) ( 4.9 ) ( 5.0 ) U.S. International Tax (Sub F, GILTI, FDII) 2.9 4.2 2.1 Research tax credits ( 2.4 ) ( 1.9 ) ( 1.4 ) Redetermination of foreign tax credit utilization ( 2.0 ) — — Nondeductible employee compensation 1.7 1.9 3.0 State income taxes, net of federal benefit ( 0.2 ) 0.1 0.2 Stock based compensation 0.1 0.2 ( 0.3 ) Accruals and reserves — — ( 0.8 ) Other 0.1 1.1 0.5 Effective tax rate 17.2 % 21.7 % 19.3 % |
Tax Loss and Tax Credit Carryforwards | The following table summarizes Company tax credit carry forwards for tax return purposes as of December 31, 2023 (in thousands): Tax Benefit Expiration Date Tax credit carry forwards: State research tax credits $ 8,752 2034 - 2038 Foreign tax credits $ 186 2031 Total credit carry forwards $ 8,938 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company's net deferred tax assets and liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax asset: Capitalized research expenditures $ 39,459 $ 38,485 Retirement plan 12,555 13,495 Tax credit carry forwards 8,938 8,100 Accruals and reserves 7,180 6,944 Lease Liabilities 6,671 7,230 Deferred revenue 1,741 2,077 Stock-based compensation 1,498 1,454 Other 1,362 3,400 79,404 81,185 Valuation allowance ( 9,551 ) ( 11,087 ) Deferred tax assets 69,853 70,098 Deferred tax liability: Lease Assets ( 6,302 ) ( 6,944 ) Acquisition Goodwill ( 1,549 ) ( 1,283 ) Other ( 2,894 ) ( 3,710 ) Deferred tax liabilities ( 10,745 ) ( 11,937 ) Net deferred tax assets $ 59,108 $ 58,161 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Assets and Liabilities Associated with Contracts from Customers | The following table provides information about assets and liabilities associated with the Company's contracts from customers (in thousands): As of December 31, 2023 Accounts receivable $ 139,850 Short-term unbilled receivables 21,084 Short-term contract assets 2,698 Long-term unbilled receivables 9,074 Long-term contract assets 9,278 Short-term deferred revenue 47,713 Long-term deferred revenue 12,006 |
Summary of Significant Changes in Unbilled Receivables and Deferred Liabilities Balances | Significant changes in the assets and liabilities balances associated with the Company's contracts from customers for the years ended December 31, 2023 and 2022, are as follows (in thousands): Year Ended December 31, 2023 Assets Liabilities Balance at December 31, 2022 $ 38,457 $ ( 63,878 ) Revenue recognized that was previously included in deferred revenue, net — 195,703 Increases due to cash received — ( 202,100 ) Cumulative catch-up adjustment arising from changes in estimates of — 10,556 Unbilled receivables recorded, net 41,659 — Contract assets recorded, net ( 2,407 ) — Transferred to receivables from unbilled receivables ( 35,575 ) — Net change 3,677 4,159 Balance at December 31, 2023 $ 42,134 $ ( 59,719 ) Year Ended December 31, 2022 Assets Liabilities Balance at December 31, 2021 $ 8,127 $ ( 157,081 ) Revenue recognized that was previously included in deferred revenue, net — 239,608 Increases due to cash received — ( 176,667 ) Cumulative catch-up adjustment arising from changes in estimates of — 30,262 Unbilled receivables recorded, net 15,946 — Contract assets recorded, net 14,384 — Net change 30,330 93,203 Balance at December 31, 2022 $ 38,457 $ ( 63,878 ) |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table is a reconciliation of net income and the shares used in calculating basic and diluted net income per common share for the years ended December 31, 2023, 2022 and 2021 (in thousands, except share and per share data): Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 203,011 $ 210,061 $ 184,213 Adjustment for Basic EPS: Earnings allocated to unvested shareholders ( 993 ) ( 1,215 ) ( 1,137 ) Adjusted net income $ 202,018 $ 208,846 $ 183,076 Denominator: Weighted average common shares outstanding – Basic 47,559,669 47,390,352 47,296,447 Effect of dilutive shares: Common stock equivalents arising from stock options and ESPP 2,173 2,340 1,010 Restricted stock awards and units and performance units 60,921 75,815 67,978 Weighted average common shares outstanding – Diluted 47,622,763 47,468,507 47,365,435 Net income per common share: Basic $ 4.25 $ 4.41 $ 3.87 Diluted $ 4.24 $ 4.40 $ 3.87 |
BUSINESS - Additional Informati
BUSINESS - Additional Information (Details) | Dec. 31, 2023 Patent |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of patents issued and pending application | 6,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Jun. 28, 2016 | Jul. 23, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents maturity period | three months or less | |||
Allowance for doubtful accounts | $ 166,000 | $ 279,000 | ||
Goodwill impairment loss | $ 0 | |||
Recognized income tax positions measured at likelihood of realization description | Recognized income tax positions are measured at the largest amount of which the likelihood of realization is greater than 50% | |||
FUJIFILM [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period of acquired intangible assets (in years) | 10 years | |||
Visionox Hefei Technology [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Additional agreement duration | 5 years | |||
Patents [Member] | FUJIFILM [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
OLED patents useful life | 10 years | |||
Patents [Member] | BASF [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
OLED patents useful life | 10 years | 10 years | ||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Recognized income tax positions measured at percentage of likelihood of realization | 50% | |||
Minimum [Member] | Other Intangible Assets [Member] | Adesis, Inc. [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period of acquired intangible assets (in years) | 10 years | |||
Maximum [Member] | Other Intangible Assets [Member] | Adesis, Inc. [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization period of acquired intangible assets (in years) | 15 years | |||
Building [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life (in years) | 30 years | |||
Building Improvements [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life (in years) | 15 years | |||
Office, Lab Equipment and Furniture and Fixtures [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life (in years) | 3 years | |||
Office, Lab Equipment and Furniture and Fixtures [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life (in years) | 7 years | |||
Computer Software [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life (in years) | 3 years |
CASH, CASH EQUIVALENTS AND IN_3
CASH, CASH EQUIVALENTS AND INVESTMENTS - Schedule of Cash, Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash And Cash Equivalents [Line Items] | ||
Cash Equivalents, at Carrying Value | $ 91,985 | $ 93,430 |
Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 91,985 | 93,430 |
Cash Accounts in Banking Institutions [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Cash Equivalents, at Carrying Value | 91,717 | 86,268 |
Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 91,717 | 86,268 |
Money Market Accounts [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Cash Equivalents, at Carrying Value | 268 | 7,162 |
Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | $ 268 | $ 7,162 |
CASH, CASH EQUIVALENTS AND IN_4
CASH, CASH EQUIVALENTS AND INVESTMENTS - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | $ 4,000 | |
Short-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 422,532 | 490,170 |
Available-for-sale Securities, Gross Unrealized Gains | 304 | 32 |
Available-for-sale Securities, Gross Unrealized Losses | (699) | (5,857) |
Available-for-sale Securities, Fair Value Disclosure | 422,137 | 484,345 |
Long-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 284,053 | 249,943 |
Available-for-sale Securities, Gross Unrealized Gains | 1,457 | 52 |
Available-for-sale Securities, Gross Unrealized Losses | (8) | (2,180) |
Available-for-sale Securities, Fair Value Disclosure | 285,502 | 247,815 |
Corporate Bonds [Member] | Short-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 1,763 | 150,698 |
Available-for-sale Securities, Gross Unrealized Gains | 1 | 0 |
Available-for-sale Securities, Gross Unrealized Losses | (5) | (910) |
Available-for-sale Securities, Fair Value Disclosure | 1,759 | 149,788 |
Corporate Bonds [Member] | Long-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 2,479 | |
Available-for-sale Securities, Gross Unrealized Gains | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | (28) | |
Available-for-sale Securities, Fair Value Disclosure | 2,451 | |
U.S. Government Bonds [Member] | Short-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 420,769 | 339,472 |
Available-for-sale Securities, Gross Unrealized Gains | 303 | 32 |
Available-for-sale Securities, Gross Unrealized Losses | (694) | (4,947) |
Available-for-sale Securities, Fair Value Disclosure | 420,378 | 334,557 |
U.S. Government Bonds [Member] | Long-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 284,053 | 247,464 |
Available-for-sale Securities, Gross Unrealized Gains | 1,457 | 52 |
Available-for-sale Securities, Gross Unrealized Losses | (8) | (2,152) |
Available-for-sale Securities, Fair Value Disclosure | $ 285,502 | $ 245,364 |
CASH, CASH EQUIVALENTS AND IN_5
CASH, CASH EQUIVALENTS AND INVESTMENTS - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Investment | Dec. 31, 2023 USD ($) | Dec. 31, 2021 Investment | |
Cash and Cash Equivalents [Line Items] | |||
Number of minority investments | Investment | 4 | ||
Minority investment, carrying value | $ 12 | $ 14 | |
Number Of Convertible Note Investments | Investment | 2 | ||
Available-for-sale Securities, Fair Value Disclosure | $ 4 | ||
Impairment in minority investment | $ 3 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 91,985 | $ 93,430 |
Short-term Corporate bonds | 422,137 | 484,345 |
Short-term U.S. Government bonds | 2,698 | |
Long-term U.S. Government bonds | 299,548 | 259,861 |
Fair Value, Measurements, Recurring [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 268 | 7,162 |
Short-term Corporate bonds | 1,759 | 149,788 |
Short-term U.S. Government bonds | 420,378 | 334,557 |
Long-term Corporate bonds | 2,451 | |
Long-term U.S. Government bonds | 285,502 | 245,364 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 268 | 7,162 |
Short-term Corporate bonds | 1,759 | 149,788 |
Short-term U.S. Government bonds | 420,378 | 334,557 |
Long-term Corporate bonds | 2,451 | |
Long-term U.S. Government bonds | $ 285,502 | $ 245,364 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Credit losses on debt investments | $ 0 | $ 0 |
INVENTORY - Schedule of Invento
INVENTORY - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 113,400 | $ 115,448 |
Work-in-process | 9,433 | 7,626 |
Finished goods | 52,962 | 60,146 |
Inventory | $ 175,795 | $ 183,220 |
INVENTORY - Additional Informat
INVENTORY - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |||
Change in inventory reserve | $ 8.5 | $ 3.6 | $ 3.6 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 319,058 | $ 260,563 |
Less: Accumulated depreciation | (143,908) | (117,118) |
Property and equipment, net | 175,150 | 143,445 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,230 | 2,642 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 116,903 | 99,586 |
Office and lab equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 148,465 | 129,697 |
Furniture, fixtures and computer related assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,970 | 18,071 |
Construction-in-progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 22,490 | $ 10,567 |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 27,409 | $ 24,815 | $ 19,968 |
Increase in property and equipment | $ 59,792 | $ 42,497 | $ 43,161 |
Property Available for Operating Lease [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Descripion of Property Available for Operating Lease | The increase in property and equipment, net for the year ended December 31, 2023 is primarily due to the purchases of two previously leased facilities for an aggregate cost of $23.4 million | ||
Increase in property and equipment | $ 23,400 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Acquired Technology (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | [1] | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | |||
Acquired technology, gross | $ 277,175 | $ 228,053 | |
Less: Accumulated amortization | (186,850) | (189,671) | |
Acquired technology, net | 90,325 | 38,382 | |
PD LD, Inc [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired technology, gross | 0 | 1,481 | |
Motorola [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired technology, gross | 0 | 15,909 | |
Merck KGaA[Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired technology, gross | 66,012 | 0 | |
BASF [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired technology, gross | 95,989 | 95,989 | |
FUJIFILM [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired technology, gross | 109,462 | 109,462 | |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired technology, gross | $ 5,712 | $ 5,212 | |
[1] During the year ended December 31, 2023, the gross value and accumulated amortization associated with the PD-LD, Inc. and Motorola patent portfolios have been removed from the table as the underlying patents have reached the end of their useful lives. |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Acquired Technology - Additional Information (Details) € in Millions | 12 Months Ended | |||||||||||
Apr. 28, 2023 USD ($) Board_member | Jun. 28, 2016 USD ($) Patent | Jun. 28, 2016 EUR (€) Patent | Jul. 23, 2012 USD ($) Patent | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2029 USD ($) | Dec. 31, 2028 USD ($) | Dec. 31, 2027 USD ($) | Dec. 31, 2026 USD ($) | Apr. 30, 2023 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Amortization of Intangible Assets | $ 15,993,000 | $ 17,459,000 | $ 21,994,000 | |||||||||
Future amortization expense, 2023 | 16,800,000 | |||||||||||
Future amortization expense, 2024 | 16,800,000 | |||||||||||
Future amortization expense, 2025 | 16,800,000 | |||||||||||
Future amortization expense, 2026 | $ 12,000,000 | |||||||||||
Future amortization expense, 2027 | $ 7.2 | $ 7.2 | ||||||||||
Future amortization expense, thereafter | $ 30,300,000 | |||||||||||
Patent Technology [Member] | ||||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Amortization of Intangible Assets | $ 14,600,000 | $ 16,000,000 | $ 20,600,000 | |||||||||
Patents [Member] | FUJIFILM [Member] | ||||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Number of patents acquired (more than) | Patent | 1,200 | |||||||||||
Assigned value of acquired intangible assets | $ 105,000,000 | |||||||||||
Cash paid for OLED patents | $ 4,500,000 | |||||||||||
OLED patents useful life | 10 years | |||||||||||
Patents [Member] | BASF [Member] | ||||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Number of patents acquired (more than) | Patent | 500 | 500 | ||||||||||
Assigned value of acquired intangible assets | $ 95,800,000 | € 86.8 | ||||||||||
Acquisition Costs, Period Cost | 95,800,000 | € 86.8 | ||||||||||
Cash paid for OLED patents | $ 217,000,000 | |||||||||||
OLED patents useful life | 10 years | 10 years | ||||||||||
Patents [Member] | Merck KGaA[Member] | ||||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||||
Number of patents acquired (more than) | Board_member | 550 | |||||||||||
Assigned value of acquired intangible assets | $ 66,000,000 | |||||||||||
Cash paid for OLED patents | $ 66,000,000 | |||||||||||
OLED patents useful life | 10 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2027 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets | $ 16,800,000 | ||||||
Goodwill | 15,535,000 | $ 15,535,000 | |||||
Adesis, Inc. [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets | 17,288,000 | ||||||
Amortization expense related to other intangible assets | 1,400,000 | $ 1,400,000 | $ 1,400,000 | ||||
Future amortization expense of other intangible assets, fiscal year 2024 | 1,400,000 | ||||||
Future amortization expense of other intangible assets, fiscal year 2026 | $ 1,400,000 | ||||||
Future amortization expense of other intangible assets, fiscal year 2025 | $ 1,400,000 | ||||||
Future amortization expense of other intangible assets, fiscal year 2027 | $ 1,300,000 | ||||||
Future amortization expense of other intangible assets, fiscal year 2028 | 422,000 | $ 1,400,000 | |||||
Future amortization expense of other intangible assets, thereafter | $ 1,000,000 | ||||||
Goodwill | 15,500,000 | ||||||
Adesis, Inc. [Member] | Customer Relationships [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets | $ 10,520,000 | ||||||
Amortization period of acquired intangible assets (in years) | 11 years 6 months | ||||||
Adesis, Inc. [Member] | Internally-developed IP, Processes and Recipes [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets | $ 4,820,000 | ||||||
Amortization period of acquired intangible assets (in years) | 15 years | ||||||
Adesis, Inc. [Member] | Trade Name/Trademarks [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets | $ 1,500,000 | ||||||
Amortization period of acquired intangible assets (in years) | 10 years | ||||||
FUJIFILM [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization period of acquired intangible assets (in years) | 10 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 16,800 | |
Accumulated Amortization | (10,414) | $ (8,989) |
Net Carrying Amount | 6,874 | $ 8,247 |
Adesis, Inc. [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 17,288 | |
Accumulated Amortization | (10,414) | |
Net Carrying Amount | 6,874 | |
Customer Relationships [Member] | Adesis, Inc. [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,520 | |
Accumulated Amortization | (6,801) | |
Net Carrying Amount | 3,719 | |
Developed IP, Processes and Recipes [Member] | Adesis, Inc. [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,820 | |
Accumulated Amortization | (2,388) | |
Net Carrying Amount | 2,432 | |
Trade Name/Trademarks [Member] | Adesis, Inc. [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,500 | |
Accumulated Amortization | (1,118) | |
Net Carrying Amount | 382 | |
Other Intangible Assets [Member] | Adesis, Inc. [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 448 | |
Accumulated Amortization | (107) | |
Net Carrying Amount | $ 341 |
OTHER ASSETS - Schedule of Othe
OTHER ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Long-term taxes receivable | $ 60,146 | $ 63,915 |
Right-of-use assets | 24,910 | 31,486 |
Long-term unbilled receivables | $ 9,074 | $ 0 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Long-term contract assets | $ 9,278 | $ 11,651 |
Other Long-Term Investments | 1,881 | 2,687 |
Other Assets, Total | $ 105,289 | $ 109,739 |
LEASES- Additional Information
LEASES- Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | |||
Operating lease description | As of December 31, 2023, the Company did not have any finance leases and no additional operating leases that have not yet commenced. | ||
Operating lease cost | $ 4,639 | $ 4,436 | $ 3,637 |
Operating lease, option to extend | true | ||
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating leases remaining term | 3 years | ||
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating leases remaining term | 8 years |
LEASES - Summary of Operating L
LEASES - Summary of Operating Lease Cost and Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 4,639 | $ 4,436 | $ 3,637 |
Non-cash activity: | |||
Right-of-use assets obtained in exchange for lease obligations | $ 1,072 | $ 4,750 | $ 26,174 |
LEASES - Schedule Of Operating
LEASES - Schedule Of Operating Lease Right of Use Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Right-of-use assets | $ 24,910 | $ 31,486 |
Short-term lease liabilities | $ 3,533 | $ 3,737 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Long-term lease liabilities | $ 22,855 | $ 29,039 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
LEASES - Schedule of Weighted A
LEASES - Schedule of Weighted Average Assumptions Used to Compute Right-of-use Assets and Lease Liabilities (Details) | Dec. 31, 2023 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 6 years 8 months 12 days |
Weighted average discount rate | 3.70% |
LEASES - Schedule of Undiscount
LEASES - Schedule of Undiscounted Future Minimum Lease Payments Having Non-cancelable Lease Terms (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Lessee Lease Description [Line Items] | |
2024 | $ 4,267 |
2025 | 4,401 |
2026 | 4,321 |
2027 | 4,323 |
2028 | 3,996 |
Thereafter | 8,083 |
Total lease payments | 29,391 |
Less: imputed interest | (3,003) |
Present value of lease payments | $ 26,388 |
ACCRUED EXPENSES - Schedule of
ACCRUED EXPENSES - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Compensation | $ 29,456 | $ 31,751 |
PPG Industries, Inc. agreement | 11,962 | 9,864 |
Consulting | 2,121 | 910 |
Professional Fees | 1,124 | 906 |
Research and development agreements | 822 | 662 |
Royalties | 647 | 877 |
Other | 5,948 | 6,032 |
Accrued Expenses | $ 52,080 | $ 51,002 |
RESEARCH AND LICENSE AGREEMEN_2
RESEARCH AND LICENSE AGREEMENTS WITH ACADEMIC PARTNERS- Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||
Royalty expense | $ 647 | $ 877 | $ 691 |
1997 Amended License Agreement [Member] | |||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||
Royalty expense | 575,000 | 853,000 | 691,000 |
2006 Research Agreement [Member] | |||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||
Maximum obligation | 2,000 | ||
Research and development expense incurred | $ 1,100 | $ 905,000 | $ 1,300 |
OTHER LIABILITIES - Summary of
OTHER LIABILITIES - Summary of Other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Long-term taxes payable | $ 15,749 | $ 14,592 |
Long-term lease liabilities | $ 22,855 | $ 29,039 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Other long-term liabilities | $ 54 | $ 54 |
Other Liabilities | $ 38,658 | $ 43,685 |
EQUITY AND CASH COMPENSATION _2
EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long-term Purchase Commitment [Line Items] | |||
Percent of services payable in cash or shares | 50% | ||
Issuance of common stock in connection with materials and license agreements (in shares) | 0 | ||
Charges to expense for cash portion of reimbursement of expenses | $ 9.1 | $ 7.3 | $ 3.6 |
New OLED Materials Agreement and OLED Materials Agreement [Member] | Weighted Average | |||
Long-term Purchase Commitment [Line Items] | |||
Minimum average closing price of common stock (in dollars per share) | $ 20 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Feb. 20, 2024 $ / shares | Dec. 31, 2023 USD ($) Board_member $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares | |
Class Of Stock [Line Items] | ||||
Preferred Stock, shares authorized ( in shares) | 5,000,000 | 5,000,000 | ||
Preferred Stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Number of board members elected by class A shareholders | Board_member | 2 | |||
Common Stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | ||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Common Stock, shares issued (in shares) | 48,731,026 | 49,136,030 | ||
Common Stock, shares outstanding (in shares) | 47,365,378 | 47,770,382 | ||
Treasury stock repurchased shares | 0 | 0 | ||
Common stock dividends declared per share | $ / shares | $ 1.4 | $ 1.2 | $ 0.8 | |
Common stock dividends paid per share | $ / shares | $ 1.4 | |||
Common stock dividends paid | $ | $ 66.7 | |||
Subsequent Event [Member] | ||||
Class Of Stock [Line Items] | ||||
Common stock dividends declared per share | $ / shares | $ 0.4 | |||
Dividend payable date | Mar. 29, 2024 | |||
Dividend record date | Mar. 15, 2024 | |||
Series A Nonconvertible Preferred Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Preferred Stock, shares issued (in shares) | 200,000 | 200,000 | ||
Preferred Stock, liquidation value per share (in dollars per share) | $ / shares | $ 7.5 | $ 7.5 | ||
Preferred stock voting rights | Holders of the Series A shares are entitled to one vote per share on matters which shareholders are generally entitled to vote. | |||
Preferred Stock, shares outstanding (in shares) | 200,000 | 200,000 | ||
Series A Nonconvertible Preferred Stock [Member] | One Nine Nine Five [Member] | ||||
Class Of Stock [Line Items] | ||||
Preferred Stock, shares issued (in shares) | 200,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
BALANCE | $ 1,275,369 | $ 1,099,914 | $ 912,714 | |
Reclassification to net income | 1,000 | 2,000 | 4,700 | |
Other comprehensive loss | 17,366 | (217) | 17,784 | |
BALANCE | 1,447,226 | 1,275,369 | 1,099,914 | |
Unrealized gain (loss) on available-for-sale securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
BALANCE | (7,887) | (142) | 91 | |
Other comprehensive gain (loss) before reclassification | 8,745 | (7,745) | (233) | |
Plan amendment cost | 0 | |||
Reclassification to net income | [1] | 0 | 0 | 0 |
Other comprehensive loss | 8,745 | (7,745) | (233) | |
BALANCE | 858 | (7,887) | (142) | |
Net unrealized gain (loss) on retirement plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
BALANCE | [2] | (10,011) | (18,019) | (36,075) |
Other comprehensive gain (loss) before reclassification | [2] | 7,207 | 5,971 | 13,620 |
Plan amendment cost | [2] | (283) | ||
Reclassification to net income | [1],[2] | 996 | 2,037 | 4,719 |
Other comprehensive loss | [2] | 8,203 | 8,008 | 18,056 |
BALANCE | [2] | (1,808) | (10,011) | (18,019) |
Change in cumulative foreign currency translation adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
BALANCE | (554) | (74) | (35) | |
Other comprehensive gain (loss) before reclassification | 418 | (480) | (39) | |
Plan amendment cost | 0 | |||
Reclassification to net income | [1] | 0 | 0 | 0 |
Other comprehensive loss | 418 | (480) | (39) | |
BALANCE | (136) | (554) | (74) | |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
BALANCE | (18,452) | (18,235) | (36,019) | |
Other comprehensive gain (loss) before reclassification | 16,370 | (2,254) | 13,348 | |
Plan amendment cost | (283) | |||
Reclassification to net income | [1] | 996 | 2,037 | 4,719 |
Other comprehensive loss | 17,366 | (217) | 17,784 | |
BALANCE | $ (1,086) | $ (18,452) | $ (18,235) | |
[1] The Company reclassified amortization of prior service cost, actuarial loss and plan amendment cost for its retirement plan from accumulated other comprehensive loss to net income of $ 1.0 million, $ 2.0 million and $ 4.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. Refer to Note 17: Employee Retirement Plans |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Reclassification to net income | $ 1 | $ 2 | $ 4.7 |
STOCK-BASED COMPENSATION - Equi
STOCK-BASED COMPENSATION - Equity Compensation Plan - Additional Information (Details) - Equity Compensation Plan [Member] | 12 Months Ended |
Dec. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant (in shares) | 1,519,235 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration term (in years) | 10 years |
STOCK-BASED COMPENSATION - Eq_2
STOCK-BASED COMPENSATION - Equity Instruments Other Than Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Unvested, January 1, 2023 | 230,223 | ||
Number of Shares, Granted | 121,896 | ||
Number of Shares, Vested | (132,010) | ||
Number of Shares, Forfeited | (3,623) | ||
Number of Shares, Unvested, December 31, 2023 | 216,486 | 230,223 | |
Weighted-Average Grant-Date Fair Value, Unvested, January 1, 2023 | $ 165.13 | ||
Weighted-Average Grant-Date Fair Value, Granted | 136.22 | $ 140.37 | $ 208.67 |
Weighted-Average Grant-Date Fair Value, Vested | 163.85 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 152.21 | ||
Weighted-Average Grant-Date Fair Value, Unvested, December 31, 2023 | $ 149.68 | $ 165.13 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Unvested, January 1, 2023 | 33,637 | ||
Number of Shares, Granted | 2,366 | ||
Number of Shares, Vested | (18,456) | ||
Number of Shares, Unvested, December 31, 2023 | 17,547 | 33,637 | |
Weighted-Average Grant-Date Fair Value, Unvested, January 1, 2023 | $ 178.37 | ||
Weighted-Average Grant-Date Fair Value, Granted | 126.87 | $ 148.35 | 172.95 |
Weighted-Average Grant-Date Fair Value, Vested | 178.82 | ||
Weighted-Average Grant-Date Fair Value, Unvested, December 31, 2023 | $ 170.96 | $ 178.37 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Unvested, January 1, 2023 | 227,866 | ||
Number of Shares, Granted | 84,448 | ||
Number of Shares, Vested | (11,970) | ||
Number of Shares, Forfeited | (91,791) | ||
Number of Shares, Unvested, December 31, 2023 | 208,553 | 227,866 | |
Weighted-Average Grant-Date Fair Value, Unvested, January 1, 2023 | $ 185.57 | ||
Weighted-Average Grant-Date Fair Value, Granted | 165.72 | $ 186.66 | $ 214.7 |
Weighted-Average Grant-Date Fair Value, Vested | 155.85 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 170.96 | ||
Weighted-Average Grant-Date Fair Value, Unvested, December 31, 2023 | $ 185.86 | $ 185.57 |
STOCK-BASED COMPENSATION - Eq_3
STOCK-BASED COMPENSATION - Equity Instruments Other Than Options - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of shares withheld for tax withholding obligations | $ 8,206,000 | $ 9,209,000 | $ 14,949,000 |
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards and units vesting terms | 1 year | ||
Fair value of shares issued | $ 1,500,000 | $ 1,300,000 | $ 1,200,000 |
Shares issued (in shares) | 13,016 | 8,784 | 5,412 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value of RSU awards granted (in dollars per share) | $ 136.22 | $ 140.37 | $ 208.67 |
Fair value granted as of the respective vesting dates | $ 21,600,000 | $ 18,000,000 | $ 12,500,000 |
Fair value as of the respective vesting dates | $ 18,600,000 | 15,300,000 | 15,100,000 |
Grants in period (shares) | 121,896 | ||
Restricted Stock Units (RSUs) [Member] | Research and Development Expense [Member] | Non Employee Members of Scientific Advisory Board [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 248,000 | $ 234,000 | $ 220,000 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value of RSU awards granted (in dollars per share) | $ 126.87 | $ 148.35 | $ 172.95 |
Fair value granted as of the respective vesting dates | $ 3,300,000 | $ 8,300,000 | $ 9,300,000 |
Fair value as of the respective vesting dates | $ 2,600,000 | $ 6,500,000 | $ 20,000,000 |
Shares withheld for employee taxes (shares) | 53,162 | 54,856 | 67,798 |
Shares withheld for employee taxes | $ 7,400,000 | $ 8,400,000 | $ 14,100,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 21,700,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | ||
Grants in period (shares) | 2,366 | ||
Unrecognized compensation expense related to performance unit awards | $ 21,700,000 | ||
Restricted Stock [Member] | Selling, General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 9,500,000 | 14,300,000 | 15,400,000 |
Restricted Stock [Member] | Manufacturing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 1,900,000 | 2,200,000 | 2,500,000 |
Restricted Stock [Member] | Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 5,800,000 | $ 6,100,000 | $ 5,200,000 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value of RSU awards granted (in dollars per share) | $ 165.72 | $ 186.66 | $ 214.7 |
Fair value granted as of the respective vesting dates | $ 1,900,000 | $ 1,900,000 | $ 1,100,000 |
Fair value as of the respective vesting dates | 1,700,000 | $ 1,800,000 | $ 2,000,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 12,900,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 11 months 23 days | ||
Grants in period (shares) | 84,448 | ||
Shares withheld for tax withholding obligations (in shares) | 5,350 | 5,082 | 3,881 |
Fair value of shares withheld for tax withholding obligations | $ 775,000 | $ 826,000 | $ 875,000 |
Unrecognized compensation expense related to performance unit awards | $ 12,900,000 | ||
Performance Shares [Member] | Incremental Performance Based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (shares) | 84,448 | 100,621 | 77,086 |
Performance Shares [Member] | Performance-Based Vesting Requirement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (shares) | 63,335 | 75,465 | 42,291 |
Performance Shares [Member] | Market-Based Vesting Requirement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (shares) | 21,113 | 25,156 | 34,795 |
Performance Shares [Member] | Company Performance-Based Vesting Requirement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (shares) | 0 | 1,268 | 0 |
Performance Shares [Member] | Selling, General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 2,600,000 | $ 2,800,000 | $ 8,000,000 |
Performance Shares [Member] | Manufacturing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 770,000 | 940,000 | 1,300,000 |
Performance Shares [Member] | Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 1,200,000 | $ 1,500,000 | $ 2,100,000 |
STOCK-BASED COMPENSATION - Empl
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 25, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from common stock issued | $ 2,554,000 | $ 2,043,000 | $ 1,907,000 | |
Employee Stock Purchase Plan (ESPP) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Stock Purchase Plan ESPP Purchase Period1 | 3 months | |||
Reserved for issuance (in shares) | 1,000,000 | |||
Percentage of market value (in hundredths) | 85% | |||
Maximum allocation of base compensation (in hundredths) | 10% | |||
Maximum shares per purchase date (in shares) | 12,500 | |||
Maximum value per calendar year, per employee | $ 25,000 | |||
Common stock issued (in shares) | 17,513 | 17,057 | 9,156 | |
Proceeds from common stock issued | $ 2,000,000 | $ 1,600,000 | $ 1,500,000 | |
Employee Stock Purchase Plan (ESPP) [Member] | Selling, General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Charges to expense | 136,000 | 107,000 | 93,000 | |
Employee Stock Purchase Plan (ESPP) [Member] | Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Charges to expense | 167,000 | 141,000 | 119,000 | |
Employee Stock Purchase Plan (ESPP) [Member] | Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Charges to expense | $ 240,000 | $ 224,000 | $ 188,000 |
STOCK-BASED COMPENSATION - Defe
STOCK-BASED COMPENSATION - Deferred Compensation Arrangement - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Non-Employee Members of Scientific Advisory Board [Member] | ||
Deferred Compensation Arrangement with Employees and Non-Employees, Share-Based Payments [Line Items] | ||
Shares issued (in shares) | 2,366 | 2,024 |
Members of Scientific Advisory Board [Member] | ||
Deferred Compensation Arrangement with Employees and Non-Employees, Share-Based Payments [Line Items] | ||
Fair value of shares issued | $ 300,000 | $ 300,000 |
EMPLOYEE RETIREMENT PLANS - Add
EMPLOYEE RETIREMENT PLANS - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Denominator Multiple Participant | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contribution percentage (in hundredths) | 90% | ||
Matching contribution limit (in hundredths) | 3% | ||
Contributions to the 401(k) Plan | $ 1,500,000 | $ 1,400,000 | $ 1,300,000 |
Benefit Payments | (2,015,000) | 0 | |
Prior service cost expected to be amortized in next fiscal year | 43,000 | ||
Actuarial (gain) loss | $ 9,375,000 | 7,639,000 | |
Supplemental Executive Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of participants | Participant | 8 | ||
Factor used to determine annual base salary | Multiple | 12 | ||
Annual base salary period (in months) | 24 months | ||
Minimum period of service (in years) | 20 years | ||
Benefit percentage, tier one (in hundredths) | 50% | ||
Benefit percentage, tier two (in hundredths) | 25% | ||
Benefit percentage, tier three (in hundredths) | 15% | ||
Minimum period of service for prorated benefit (in years) | 15 years | ||
Factor used to determine prorated benefit | Denominator | 20 | ||
Installment period (in years) | 10 years | ||
Benefit percentage for special participants (in hundredths) | 50% | ||
Initial prior service cost for retirement plan | $ 1,900,000 | ||
Benefit Payments | 2,000,000 | ||
Prior service cost expected to be amortized in next fiscal year | 43,000 | ||
Accumulated benefit obligation | $ 52,500,000 | 59,500,000 | |
Defined benefit plan threshold of benefit obligation at which actuarial losses are amortized (in hundredths) | 10% | ||
Actuarial (gain) loss | $ 9,400,000 | $ 7,600,000 |
EMPLOYEE RETIREMENT PLANS - Inf
EMPLOYEE RETIREMENT PLANS - Information Relating to the Company's Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Change in benefit obligation: | ||
Benefit obligation, beginning of year | $ 61,804 | $ 66,773 |
Service cost | 951 | 1,287 |
Interest cost | $ 2,898 | $ 1,383 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Non-current liability | Non-current liability |
Actuarial gain | $ (9,375) | $ (7,639) |
Benefit Payments | (2,015) | 0 |
Benefit obligation, end of year | 54,263 | 61,804 |
Fair value of plan assets | 0 | 0 |
Unfunded status of the plan, end of year | (54,263) | (61,804) |
Current liability | 2,014 | 2,014 |
Non-current liability | $ 52,249 | $ 59,790 |
EMPLOYEE RETIREMENT PLANS - Com
EMPLOYEE RETIREMENT PLANS - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of net periodic pension cost [Abstract] | |||
Service cost | $ 951 | $ 1,287 | |
Interest cost | $ 2,898 | $ 1,383 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Liability, Defined Benefit Plan, Noncurrent | Liability, Defined Benefit Plan, Noncurrent | Liability, Defined Benefit Plan, Noncurrent |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Liability, Defined Benefit Plan, Noncurrent | Liability, Defined Benefit Plan, Noncurrent | Liability, Defined Benefit Plan, Noncurrent |
Supplemental Executive Retirement Plan [Member] | |||
Components of net periodic pension cost [Abstract] | |||
Service cost | $ 951 | $ 1,287 | $ 1,675 |
Interest cost | 2,898 | 1,383 | 1,165 |
Amortization of prior service cost | 815 | 1,119 | 1,099 |
Amortization of loss | 480 | 1,487 | 4,936 |
Total net periodic benefit cost | $ 5,144 | $ 5,276 | $ 8,875 |
EMPLOYEE RETIREMENT PLANS - Ass
EMPLOYEE RETIREMENT PLANS - Assumptions Used to Determine Benefit Obligation (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Assumptions used to determine the year end benefit obligation [Abstract] | ||
Discount rate | 4.74% | 4.94% |
Rate of compensation increases | 3.50% | 3.50% |
EMPLOYEE RETIREMENT PLANS - A_2
EMPLOYEE RETIREMENT PLANS - Assumptions Used to Determine Net Periodic Pension Cost (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assumptions used to determine the net periodic pension cost [Abstract] | |||
Discount rate | 4.94% | 2.16% | 1.54% |
Rate of compensation increases | 3.50% | 3.50% | 3.50% |
EMPLOYEE RETIREMENT PLANS - Amo
EMPLOYEE RETIREMENT PLANS - Amounts to be Amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in Next Fiscal Year (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Estimated amounts to be amortized from accumulated other comprehensive loss in next fiscal year [Abstract] | |
Amortization of prior service cost | $ 43 |
Amortization of loss | 0 |
Total | $ 43 |
EMPLOYEE RETIREMENT PLANS - Ben
EMPLOYEE RETIREMENT PLANS - Benefit Payments Expected to be Paid (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Benefit payments currently expected to be paid [Abstract] | |
2024 | $ 2,014 |
2025 | 5,097 |
2026 | 6,141 |
2027 | 6,489 |
2028 | 6,489 |
2029-2033 | 34,503 |
Thereafter | $ 14,855 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | Dec. 31, 2023 USD ($) Multiple Employee ExecutiveOfficer | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Loss Contingencies [Line Items] | |||
Purchase commitments for inventory | $ | $ 29.8 | $ 31.9 | $ 25.7 |
Commitment With Executive Officers [Member] | |||
Loss Contingencies [Line Items] | |||
Number of executive officers under agreement | ExecutiveOfficer | 5 | ||
Number of employees under agreement | Employee | 13 | ||
Commitment With Senior Level Employees [Member] | |||
Loss Contingencies [Line Items] | |||
Multiple of sum of average annual base salary and bonus agreement terms | 2 | ||
Commitment With Senior Level Employees [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Multiple of sum of average annual base salary and bonus agreement terms | 2 | ||
Commitment With Senior Level Employees [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Multiple of sum of average annual base salary and bonus agreement terms | 1 |
CONCENTRATION OF RISK - Revenue
CONCENTRATION OF RISK - Revenues and Accounts Receivable From Our Largest Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Accounts Receivable | $ 139,850 | $ 92,664 | |
Major Customer A [Member] | Total Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
% of Total Revenue | 36% | 41% | 44% |
Major Customer A [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Accounts Receivable | $ 38,105 | $ 11,425 | $ 10,850 |
Major Customer B [Member] | Total Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
% of Total Revenue | 23% | 25% | 26% |
Major Customer B [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Accounts Receivable | $ 30,142 | $ 24,440 | $ 45,867 |
Major Customer C [Member] | Total Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
% of Total Revenue | 17% | 16% | 14% |
Major Customer C [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Accounts Receivable | $ 38,529 | $ 22,291 | $ 18,557 |
CONCENTRATION OF RISK - Additio
CONCENTRATION OF RISK - Additional Information (Details) - Supplier | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Number of suppliers from which chemical materials were purchased | 1 | ||
Excluding North America [Member] | Total Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (less than 1% for contracts with U.S. government agencies) | 98% | 97% | 97% |
CONCENTRATION OF RISK - Reven_2
CONCENTRATION OF RISK - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Revenues | $ 576,429 | $ 616,619 | $ 553,525 |
South Korea [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 322,509 | 360,640 | 334,835 |
China [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 229,727 | 230,582 | 192,079 |
Japan [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 6,971 | 5,579 | 7,358 |
Other Non-U.S. Locations [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 4,411 | 3,829 | 3,137 |
Total Non-U.S. Locations [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | 563,618 | 600,630 | 537,409 |
United States [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 12,811 | $ 15,989 | $ 16,116 |
CONCENTRATION OF RISK - Long-Li
CONCENTRATION OF RISK - Long-Lived Assets (Net) by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 175,150 | $ 143,445 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 118,250 | 117,255 |
Ireland [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 42,203 | 20,270 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 14,697 | $ 5,920 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income (Loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of income before income taxes [Abstract] | |||
United States | $ 71,514 | $ 77,205 | $ 60,066 |
Foreign | 173,657 | 191,025 | 168,181 |
Income before income taxes | $ 245,171 | $ 268,230 | $ 228,247 |
INCOME TAXES - Components of _2
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax (expense) benefit: | |||
Federal | $ (15,848) | $ (51,980) | $ (16,433) |
State | (3,048) | (1,833) | (641) |
Foreign | (27,030) | (31,302) | (25,212) |
Current income tax benefit (expense) | (45,926) | (85,115) | (42,286) |
Deferred income tax (expense) benefit: | |||
Federal | (460) | 25,916 | (844) |
State | 3,936 | 1,216 | (734) |
Foreign | (290) | (186) | (170) |
Deferred income tax expense, gross | 3,766 | 26,946 | (1,748) |
Income tax expense | $ (42,160) | $ (58,169) | $ (44,034) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the Statutory U.S. Federal Tax Rate to the Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | 21% | 21% |
Effect of foreign operations | (4.00%) | (4.90%) | (5.00%) |
U.S. International Tax (Sub F, GILTI, FDII) | 2.90% | 4.20% | 2.10% |
Research tax credits | (2.40%) | (1.90%) | (1.40%) |
Redetermination of foreign tax credit utilization | (2.00%) | 0% | 0% |
Nondeductible employee compensation | 1.70% | 1.90% | 3% |
State income taxes, net of federal benefit | (0.20%) | 0.10% | 0.20% |
Stock based compensation | 0.10% | 0.20% | (0.30%) |
Accruals and reserves | 0% | 0% | (0.80%) |
Other | 0.10% | 1.10% | 0.50% |
Effective tax rate | 17.20% | 21.70% | 19.30% |
INCOME TAXES - Tax Loss and Tax
INCOME TAXES - Tax Loss and Tax Credit Carryforwards (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Total credit carry forwards, Tax Benefit | $ 8,938 |
Foreign Tax Authority [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Total credit carry forwards, Tax Benefit | $ 186 |
Tax credit carryforwards, Expiration Date | Dec. 31, 2031 |
Research Tax Credit [Member] | State [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Total credit carry forwards, Tax Benefit | $ 8,752 |
Research Tax Credit [Member] | State [Member] | Minimum [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, Expiration Date | Dec. 31, 2034 |
Research Tax Credit [Member] | State [Member] | Maximum [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, Expiration Date | Dec. 31, 2038 |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax asset: | ||
Capitalized research expenditures | $ 39,459 | $ 38,485 |
Retirement plan | 12,555 | 13,495 |
Tax credit carry forwards | 8,938 | 8,100 |
Accruals and reserves | 7,180 | 6,944 |
Lease liabilities | 6,671 | 7,230 |
Deferred revenue | 1,741 | 2,077 |
Stock-based compensation | 1,498 | 1,454 |
Other | 1,362 | 3,400 |
Valuation allowance | (9,551) | (11,087) |
Deferred Tax Assets, Gross | 79,404 | 81,185 |
Deferred tax assets | 69,853 | 70,098 |
Deferred tax liability: | ||
Lease Assets | 6,302 | 6,944 |
Acquisition Goodwill | (1,549) | (1,283) |
Other | (2,894) | (3,710) |
Deferred tax liabilities | (10,745) | (11,937) |
Net deferred tax assets | $ 59,108 | $ 58,161 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Line Items] | |||
Long-term asset | $ 105,289 | $ 109,739 | |
Current income tax expense | $ 27,030 | 31,302 | $ 25,212 |
State and foreign income tax returns subject to examination period minimum (in years) | 3 years | ||
State and foreign income tax returns subject to examination period maximum (in years) | 4 years | ||
Korean Government [Member] | |||
Income Taxes [Line Items] | |||
Long-term asset | $ 0 | 3,000 | |
South Korea [Member] | |||
Income Taxes [Line Items] | |||
Current income tax expense | 14,900 | ||
Foreign exchange loss | 732,000 | ||
Allocation of Withholding to Non-Korean Patents [Member] | |||
Income Taxes [Line Items] | |||
Long-term asset | 60,100 | 60,900 | |
Allocation of Withholding to Non-Korean Patents [Member] | U.S.Federal Government [Member] | |||
Income Taxes [Line Items] | |||
Estimated settlement amounts due (refunds) from withholding taxes | $ 15,700 | $ 14,600 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Backlog associated with committed purchase orders from customers | $ 25,200 | ||
Contract with customer liability, transaction price | 10,600 | $ 30,300 | |
Cumulative catch-up adjustment arising from changes in estimates of transaction price | $ 10,556 | $ 30,262 | |
Revenue from Contracts with Customers - ASU No. 2014-09 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of revenue recorded from sales of materials | 97% | 97% | 97% |
Revenue from Contracts with Customers - ASU No. 2014-09 [Member] | Adesis, Inc. [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of revenue recorded from provision of services | 3% | 3% | 3% |
REVENUE RECOGNITION - Schedule
REVENUE RECOGNITION - Schedule of Assets and Liabilities Associated with Contracts from Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disaggregation Of Revenue [Line Items] | ||
Accounts receivable | $ 139,850 | $ 92,664 |
Short-term unbilled receivables | 21,084 | |
Short-term contract assets | 2,698 | |
Long-term unbilled receivables | 9,074 | |
Long-term contract assets | 9,278 | |
Short-term deferred revenue | 47,713 | 45,599 |
Long-term deferred revenue | $ 12,006 | $ 18,279 |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Significant Changes in Unbilled Receivables and Deferred Liabilities Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Revenue (Increase) Decrease | ||
Balance | $ (63,878) | $ (157,081) |
Revenue recognized that was previously included in deferred revenue | 195,703 | 239,608 |
Increases due to cash received | (202,100) | (176,667) |
Cumulative catch-up adjustment arising from changes in estimates of transaction price | 10,556 | 30,262 |
Net change | 4,159 | 93,203 |
Balance | (59,719) | (63,878) |
Unbilled Receivables Increase (Decrease) | ||
Balance | 38,457 | 8,127 |
Unbilled receivables recognized | 41,659 | 15,946 |
Contract Assets Recorded | (2,407) | 14,384 |
Transferred to receivables from unbilled receivables | (35,575) | |
Contract Assets Recorded | (2,407) | 14,384 |
Net change | 3,677 | 30,330 |
Balance | $ 42,134 | $ 38,457 |
NET INCOME PER COMMON SHARE - S
NET INCOME PER COMMON SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income | $ 203,011 | $ 210,061 | $ 184,213 |
Adjustment for Basic EPS: | |||
Earnings allocated to unvested shareholders | (993) | (1,215) | (1,137) |
Adjusted net income | $ 202,018 | $ 208,846 | $ 183,076 |
Denominator: | |||
Weighted average common shares outstanding – Basic | 47,559,669 | 47,390,352 | 47,296,447 |
Effect of dilutive shares: | |||
Common stock equivalents arising from stock options and ESPP | 2,173 | 2,340 | 1,010 |
Restricted stock awards and units and performance units | 60,921 | 75,815 | 67,978 |
Weighted average common shares outstanding – Diluted | 47,622,763 | 47,468,507 | 47,365,435 |
Basic | $ 4.25 | $ 4.41 | $ 3.87 |
Diluted | $ 4.24 | $ 4.4 | $ 3.87 |
NET INCOME PER COMMON SHARE - A
NET INCOME PER COMMON SHARE - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from calculation of diluted EPS | 36,345 | 122,843 | 0 |
QUARTERLY SUPPLEMENTAL FINANCIA
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||
Revenues | $ 576,429 | $ 616,619 | $ 553,525 |
Net Income (Loss) | $ 203,011 | $ 210,061 | $ 184,213 |
Net income per common share: | |||
Basic | $ 4.25 | $ 4.41 | $ 3.87 |
Diluted | $ 4.24 | $ 4.4 | $ 3.87 |