Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 03, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 0-21044 | |
Entity Registrant Name | UNIVERSAL ELECTRONICS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0204817 | |
Entity Address, Address Line One | 15147 N. Scottsdale Road, Suite H300 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85254-2494 | |
City Area Code | 480 | |
Local Phone Number | 530-3000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | UEIC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,749,676 | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Entity Central Index Key | 0000101984 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 67,146 | $ 74,302 |
Accounts receivable, net | 128,094 | 139,198 |
Contract assets | 11,530 | 12,579 |
Inventories | 115,750 | 145,135 |
Prepaid expenses and other current assets | 5,768 | 6,733 |
Income tax receivable | 1,536 | 805 |
Total current assets | 329,824 | 378,752 |
Property, plant and equipment, net | 84,549 | 90,732 |
Goodwill | 48,526 | 48,447 |
Intangible assets, net | 19,617 | 19,830 |
Operating lease right-of-use assets | 18,678 | 19,826 |
Deferred income taxes | 4,581 | 4,409 |
Other assets | 2,842 | 2,163 |
Total assets | 508,617 | 564,159 |
Current liabilities: | ||
Accounts payable | 67,546 | 102,588 |
Line of credit | 50,000 | 68,000 |
Accrued compensation | 22,890 | 43,668 |
Accrued sales discounts, rebates and royalties | 10,183 | 9,766 |
Accrued income taxes | 9,910 | 6,989 |
Other accrued liabilities | 33,616 | 35,445 |
Total current liabilities | 194,145 | 266,456 |
Long-term liabilities: | ||
Operating lease obligations | 13,284 | 15,639 |
Contingent consideration | 250 | 4,349 |
Deferred income taxes | 2,327 | 1,703 |
Income tax payable | 1,368 | 1,600 |
Other long-term liabilities | 688 | 13 |
Total liabilities | 212,062 | 289,760 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 50,000,000 shares authorized; 24,292,657 and 24,118,088 shares issued on September 30, 2020 and December 31, 2019, respectively | 243 | 241 |
Paid-in capital | 296,674 | 288,338 |
Treasury stock, at cost, 10,437,363 and 10,174,199 shares on September 30, 2020 and December 31, 2019, respectively | (287,639) | (277,817) |
Accumulated other comprehensive income (loss) | (25,555) | (22,781) |
Retained earnings | 312,832 | 286,418 |
Total stockholders' equity | 296,555 | 274,399 |
Total liabilities and stockholders' equity | $ 508,617 | $ 564,159 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Stockholders' 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 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 24,292,657 | 24,118,088 |
Treasury stock, shares (in shares) | 10,437,363 | 10,174,199 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 153,505 | $ 200,724 | $ 458,416 | $ 578,783 |
Cost of sales | 109,349 | 154,245 | 333,244 | 458,437 |
Gross profit | 44,156 | 46,479 | 125,172 | 120,346 |
Research and development expenses | 7,696 | 7,930 | 22,979 | 21,884 |
Selling, general and administrative expenses | 26,214 | 32,422 | 77,441 | 94,598 |
Operating income | 10,246 | 6,127 | 24,752 | 3,864 |
Interest income (expense), net | (268) | (784) | (1,272) | (3,088) |
Accrued social insurance adjustment | 0 | 0 | 9,464 | 0 |
Other income (expense), net | (1,646) | (148) | (1,263) | (426) |
Income before provision for income taxes | 8,332 | 5,195 | 31,681 | 350 |
Provision for income taxes | 2,164 | 2,526 | 5,267 | 3,747 |
Net income (loss) | $ 6,168 | $ 2,669 | $ 26,414 | $ (3,397) |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ 0.44 | $ 0.19 | $ 1.90 | $ (0.25) |
Diluted (in dollars per share) | $ 0.43 | $ 0.19 | $ 1.86 | $ (0.25) |
Shares used in computing earnings (loss) per share: | ||||
Basic (in shares) | 13,928 | 13,894 | 13,935 | 13,861 |
Diluted (in shares) | 14,205 | 14,170 | 14,189 | 13,861 |
CONSOLIDATED COMPREHENSIVE INCO
CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 6,168 | $ 2,669 | $ 26,414 | $ (3,397) |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | 5,005 | (5,457) | (2,774) | (5,557) |
Comprehensive income (loss) | $ 11,173 | $ (2,788) | $ 23,640 | $ (8,954) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Issued | Common Stock in Treasury | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance (in shares) at Dec. 31, 2018 | 23,933 | (10,116) | ||||
Balance at Dec. 31, 2018 | $ 262,960 | $ 239 | $ (275,889) | $ 276,103 | $ (20,281) | $ 282,788 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (1,005) | (1,005) | ||||
Currency translation adjustment | 1,733 | 1,733 | ||||
Shares issued for employee benefit plan and compensation (in shares) | 78 | |||||
Shares issued for employee benefit plan and compensation | 347 | $ 1 | 346 | |||
Purchase of treasury shares (in shares) | (43) | |||||
Purchase of treasury shares | (1,215) | $ (1,215) | ||||
Shares issued to directors (in shares) | 8 | |||||
Shares issued to directors | 0 | $ 0 | ||||
Employee and director stock-based compensation | 1,918 | 1,918 | ||||
Performance-based common stock warrants | 434 | 434 | ||||
Balance (in shares) at Mar. 31, 2019 | 24,019 | (10,159) | ||||
Balance at Mar. 31, 2019 | 265,172 | $ 240 | $ (277,104) | 278,801 | (18,548) | 281,783 |
Balance (in shares) at Dec. 31, 2018 | 23,933 | (10,116) | ||||
Balance at Dec. 31, 2018 | 262,960 | $ 239 | $ (275,889) | 276,103 | (20,281) | 282,788 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (3,397) | |||||
Currency translation adjustment | $ (5,557) | |||||
Purchase of treasury shares (in shares) | (55) | |||||
Purchase of treasury shares | $ (1,741) | |||||
Balance (in shares) at Sep. 30, 2019 | 24,099 | (10,171) | ||||
Balance at Sep. 30, 2019 | 261,651 | $ 241 | $ (277,630) | 285,487 | (25,838) | 279,391 |
Balance (in shares) at Mar. 31, 2019 | 24,019 | (10,159) | ||||
Balance at Mar. 31, 2019 | 265,172 | $ 240 | $ (277,104) | 278,801 | (18,548) | 281,783 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (5,061) | (5,061) | ||||
Currency translation adjustment | (1,833) | (1,833) | ||||
Shares issued for employee benefit plan and compensation (in shares) | 17 | |||||
Shares issued for employee benefit plan and compensation | 273 | 273 | ||||
Purchase of treasury shares (in shares) | (5) | |||||
Purchase of treasury shares | (189) | $ (189) | ||||
Shares issued to directors (in shares) | 7 | |||||
Shares issued to directors | 0 | $ 0 | 0 | |||
Employee and director stock-based compensation | 2,273 | 2,273 | ||||
Performance-based common stock warrants | 236 | 236 | ||||
Balance (in shares) at Jun. 30, 2019 | 24,043 | (10,164) | ||||
Balance at Jun. 30, 2019 | 260,871 | $ 240 | $ (277,293) | 281,583 | (20,381) | 276,722 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,669 | 2,669 | ||||
Currency translation adjustment | (5,457) | (5,457) | ||||
Shares issued for employee benefit plan and compensation (in shares) | 29 | |||||
Shares issued for employee benefit plan and compensation | 256 | $ 1 | 255 | |||
Purchase of treasury shares (in shares) | (7) | |||||
Purchase of treasury shares | (337) | $ (337) | ||||
Stock options exercised (in shares) | 20 | |||||
Stock options exercised | 411 | 411 | ||||
Shares issued to directors (in shares) | 7 | |||||
Shares issued to directors | 0 | $ 0 | 0 | |||
Employee and director stock-based compensation | 2,527 | 2,527 | ||||
Performance-based common stock warrants | 711 | 711 | ||||
Balance (in shares) at Sep. 30, 2019 | 24,099 | (10,171) | ||||
Balance at Sep. 30, 2019 | 261,651 | $ 241 | $ (277,630) | 285,487 | (25,838) | 279,391 |
Balance (in shares) at Dec. 31, 2019 | 24,118 | (10,174) | ||||
Balance at Dec. 31, 2019 | 274,399 | $ 241 | $ (277,817) | 288,338 | (22,781) | 286,418 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 5,846 | 5,846 | ||||
Currency translation adjustment | (7,009) | (7,009) | ||||
Shares issued for employee benefit plan and compensation (in shares) | 129 | |||||
Shares issued for employee benefit plan and compensation | 527 | $ 1 | 526 | |||
Purchase of treasury shares (in shares) | (169) | |||||
Purchase of treasury shares | (6,291) | $ (6,291) | ||||
Shares issued to directors (in shares) | 9 | |||||
Shares issued to directors | 0 | $ 1 | (1) | |||
Employee and director stock-based compensation | 2,303 | 2,303 | ||||
Performance-based common stock warrants | 184 | 184 | ||||
Balance (in shares) at Mar. 31, 2020 | 24,256 | (10,343) | ||||
Balance at Mar. 31, 2020 | 269,959 | $ 243 | $ (284,108) | 291,350 | (29,790) | 292,264 |
Balance (in shares) at Dec. 31, 2019 | 24,118 | (10,174) | ||||
Balance at Dec. 31, 2019 | 274,399 | $ 241 | $ (277,817) | 288,338 | (22,781) | 286,418 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 26,414 | |||||
Currency translation adjustment | $ (2,774) | |||||
Purchase of treasury shares (in shares) | (263) | |||||
Purchase of treasury shares | $ (9,822) | |||||
Stock options exercised (in shares) | 0 | |||||
Balance (in shares) at Sep. 30, 2020 | 24,293 | (10,437) | ||||
Balance at Sep. 30, 2020 | $ 296,555 | $ 243 | $ (287,639) | 296,674 | (25,555) | 312,832 |
Balance (in shares) at Mar. 31, 2020 | 24,256 | (10,343) | ||||
Balance at Mar. 31, 2020 | 269,959 | $ 243 | $ (284,108) | 291,350 | (29,790) | 292,264 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 14,400 | 14,400 | ||||
Currency translation adjustment | (770) | (770) | ||||
Shares issued for employee benefit plan and compensation (in shares) | 13 | |||||
Shares issued for employee benefit plan and compensation | 212 | $ 0 | 212 | |||
Purchase of treasury shares (in shares) | (3) | |||||
Purchase of treasury shares | (114) | $ (114) | ||||
Employee and director stock-based compensation | 2,291 | 2,291 | ||||
Performance-based common stock warrants | 154 | 154 | ||||
Balance (in shares) at Jun. 30, 2020 | 24,269 | (10,346) | ||||
Balance at Jun. 30, 2020 | 286,132 | $ 243 | $ (284,222) | 294,007 | (30,560) | 306,664 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 6,168 | 6,168 | ||||
Currency translation adjustment | 5,005 | 5,005 | ||||
Shares issued for employee benefit plan and compensation (in shares) | 15 | |||||
Shares issued for employee benefit plan and compensation | 220 | $ 0 | 220 | |||
Purchase of treasury shares (in shares) | (91) | |||||
Purchase of treasury shares | (3,417) | $ (3,417) | ||||
Shares issued to directors (in shares) | 9 | |||||
Shares issued to directors | 0 | $ 0 | 0 | |||
Employee and director stock-based compensation | 2,260 | 2,260 | ||||
Performance-based common stock warrants | 187 | 187 | ||||
Balance (in shares) at Sep. 30, 2020 | 24,293 | (10,437) | ||||
Balance at Sep. 30, 2020 | $ 296,555 | $ 243 | $ (287,639) | $ 296,674 | $ (25,555) | $ 312,832 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash provided by (used for) operating activities: | ||
Net income (loss) | $ 26,414 | $ (3,397) |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 22,857 | 23,734 |
Provision for bad debts | 271 | 275 |
Deferred income taxes | 503 | 2,273 |
Shares issued for employee benefit plan | 959 | 876 |
Employee and director stock-based compensation | 6,854 | 6,718 |
Performance-based common stock warrants | 525 | 1,381 |
Impairment of long-term assets | 57 | 0 |
Accrued social insurance adjustment | (9,464) | 0 |
Loss on sale of Ohio call center | 712 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable and contract assets | 11,556 | (11,117) |
Inventories | 30,466 | 4,403 |
Prepaid expenses and other assets | 601 | 5,507 |
Accounts payable and accrued liabilities | (50,507) | 11,686 |
Accrued income taxes | 2,023 | (2,418) |
Net cash provided by (used for) operating activities | 43,827 | 39,921 |
Cash provided by (used for) investing activities: | ||
Acquisitions of property, plant and equipment | (10,864) | (15,854) |
Acquisitions of intangible assets | (5,254) | (1,505) |
Payment on sale of Ohio call center | (500) | 0 |
Net cash provided by (used for) investing activities | (16,618) | (17,359) |
Cash provided by (used for) financing activities: | ||
Borrowings under line of credit | 70,000 | 57,500 |
Repayments on line of credit | (88,000) | (71,000) |
Proceeds from stock options exercised | 0 | 411 |
Treasury stock purchased | (9,822) | (1,741) |
Contingent consideration payments in connection with business combinations | (3,091) | (4,251) |
Net cash provided by (used for) financing activities | (30,913) | (19,081) |
Effect of exchange rate changes on cash and cash equivalents | (3,452) | (1,959) |
Net increase (decrease) in cash and cash equivalents | (7,156) | 1,522 |
Cash and cash equivalents at beginning of period | 74,302 | 53,207 |
Cash and cash equivalents at end of period | 67,146 | 54,729 |
Supplemental cash flow information: | ||
Income taxes paid | 3,242 | 5,608 |
Interest paid | $ 1,404 | $ 3,479 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying consolidated financial statements of Universal Electronics Inc. and its subsidiaries contain all the adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature and certain reclassifications have been made to prior year amounts in order to conform to the current year presentation. Information and footnote disclosures normally included in financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). As used herein, the terms "Company," "we," "us," and "our" refer to Universal Electronics Inc. and its subsidiaries, unless the context indicates to the contrary. Our results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk," and the "Financial Statements and Supplementary Data" included in Items 1A, 7, 7A, and 8, respectively, of our Annual Report on Form 10-K for the year ended December 31, 2019. Estimates, Judgments and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, 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. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition; allowance for bad debts; inventory valuation; our review for impairment of long-lived assets, intangible assets and goodwill; leases; business combinations; income taxes; stock-based compensation expense and performance-based common stock warrants. The recent coronavirus ("COVID-19") pandemic and the mitigation efforts by governments to attempt to control its spread have created uncertainties and disruptions in the economic and financial markets. While we are not currently aware of events or circumstances that would require an update to our estimates, judgments or adjustments to the carrying values of our assets or liabilities, these estimates may change as developments occur and we obtain additional information. These future developments are highly uncertain and the outcomes are unpredictable. Actual results may differ from those estimates, and such differences may be material to the financial statements. See Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 for a summary of our significant accounting policies. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments", which updates existing guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred loss impairment model with an expected loss impairment model. Accordingly, financial assets are presented at amortized costs net of an allowance for expected credit losses over the lifetime of the assets. We adopted this new guidance on January 1, 2020 using the modified retrospective method. The adoption did not require an implementation adjustment and did not materially impact our consolidated statement of financial position, results of operations and cash flows. See Note 3 for further discussion on our allowance for bad debts. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to the reporting unit. Our adoption on January 1, 2020 did not have a material impact on our consolidated statement of financial position, results of operations and cash flows. In November 2019, the FASB issued ASU 2019-08, "Improvements - Share-based Consideration Payable to a Customer", which clarifies the accounting for share-based payments issued as sales incentives to customers. The guidance requires that stock-based compensation expense is recorded as a reduction in the transaction price on the basis of the grant-date fair value. The grant-date fair value is calculated using the provisions defined under Accounting Standards Codification "Stock Compensation". The transition provisions require that equity-classified awards be measured at the adoption date fair value if the measurement date has not been established prior to the adoption date. This guidance impacts the measurement date of our performance-based common stock warrants. The measurement periods for the first two successive two-year periods of our outstanding performance-based common stock warrants were completed prior to adoption and were not impacted by this updated guidance. The measurement period for the final two-year period began on January 1, 2020, and accordingly, we measured the fair value of the award as of our adoption date on January 1, 2020. We adopted this guidance using the modified retrospective method. Our adoption did not result in a cumulative adjustment in our consolidated statement of financial position. See Note 15 for further discussion on the performance-based common stock warrants. Recent Accounting Updates Not Yet Effective In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes", which, among other provisions, eliminates certain exceptions to existing guidance related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also requires an entity to reflect the effect of an enacted change in tax laws or rates in its effective income tax rate in the first interim period that includes the enactment date of the new legislation, aligning the timing of recognition of the effects from enacted tax law changes on the effective income tax rate with the effects on deferred income tax assets and liabilities. Under existing guidance, an entity recognizes the effects of the enacted tax law change on the effective income tax rate in the period that includes the effective date of the tax law. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this guidance on our consolidated statement of financial position, results of operations and cash flows. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents were held in the following geographic regions: (In thousands) September 30, 2020 December 31, 2019 North America $ 14,693 $ 16,751 People's Republic of China ("PRC") 15,054 13,700 Asia (excluding the PRC) 12,291 21,691 Europe 16,802 9,081 South America 8,306 13,079 Total cash and cash equivalents $ 67,146 $ 74,302 |
Revenue and Accounts Receivable
Revenue and Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Revenue and Accounts Receivable, Net | Revenue and Accounts Receivable, Net Revenue Details The pattern of revenue recognition was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Goods and services transferred at a point in time $ 127,657 $ 152,453 $ 365,902 $ 429,461 Goods and services transferred over time 25,848 48,271 92,514 149,322 Net sales $ 153,505 $ 200,724 $ 458,416 $ 578,783 Our net sales to external customers by geographic area were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 United States $ 64,367 $ 107,546 $ 203,981 $ 313,029 Asia (excluding PRC) 27,923 29,613 86,043 79,157 Europe 26,119 23,388 72,625 69,510 People's Republic of China 25,625 23,704 63,653 66,465 Latin America 4,546 8,281 12,652 26,187 Other 4,925 8,192 19,462 24,435 Total net sales $ 153,505 $ 200,724 $ 458,416 $ 578,783 Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas. Net sales to the following customers totaled more than 10% of our net sales: Three Months Ended September 30, 2020 2019 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Comcast Corporation $ 32,533 21.2 % $ 30,419 15.2 % Sony Corporation $ 15,927 10.4 % — (1) — (1) Ring L.L.C. — (1) — (1) $ 21,050 10.5 % Nine Months Ended September 30, 2020 2019 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Comcast Corporation $ 95,014 20.7 % $ 91,058 15.7 % (1) Net sales to this customer did not total more than 10% of our total net sales in the indicated period. Accounts Receivable, Net Accounts receivable, net were as follows: (In thousands) September 30, 2020 December 31, 2019 Trade receivables, gross $ 122,882 $ 130,888 Allowance for bad debts (1,797) (1,492) Allowance for sales returns (618) (623) Net trade receivables 120,467 128,773 Other 7,627 10,425 Accounts receivable, net $ 128,094 $ 139,198 Allowance for Bad Debts Changes in the allowance for bad debts were as follows: (In thousands) Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 1,492 $ 1,121 Additions to costs and expenses 271 275 Write-offs/Foreign exchange effects 34 (104) Balance at end of period $ 1,797 $ 1,292 Trade receivables associated with these significant customers that totaled more than 10% of our accounts receivable, net were as follows: September 30, 2020 December 31, 2019 $ (thousands) % of Accounts Receivable, Net $ (thousands) % of Accounts Receivable, Net Comcast Corporation $ 25,390 19.8 % — (1) — (1) DISH Network Corporation — (1) — (1) $ 14,677 10.5 % (1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net at the dates set forth. |
Inventories and Significant Sup
Inventories and Significant Suppliers | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories and Significant Suppliers | Inventories and Significant Suppliers Inventories were as follows: (In thousands) September 30, 2020 December 31, 2019 Raw materials $ 36,784 $ 56,352 Components 17,215 24,599 Work in process 4,075 1,526 Finished goods 57,676 62,658 Inventories $ 115,750 $ 145,135 Significant Suppliers We purchase integrated circuits, components and finished goods from multiple sources. Purchases from the following supplier totaled more than 10% of our total inventory purchases: Three Months Ended September 30, 2020 2019 $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases Qorvo International Pte Ltd. $ 8,472 13.0 % — (1) — (1) Nine Months Ended September 30, 2020 2019 $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases Qorvo International Pte Ltd. $ 29,679 13.4 % — (1) — (1) (1) Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period The supplier that totaled more than 10% of our accounts payable, was as follows: September 30, 2020 December 31, 2019 $ (thousands) % of Accounts Payable $ (thousands) % of Accounts Payable Zhejiang Zhen You Electronics Co. Ltd. — (1) — (1) $ 11,394 11.1 % (1) Accounts payable associated with this supplier did not total more than 10% of our accounts payable at the dates set forth. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At September 30, 2020, our operating leases had remaining lease terms of up to 40 years. Lease balances within our consolidated balance sheet were as follows: (In thousands) September 30, 2020 December 31, 2019 Assets: Operating lease right-of-use assets $ 18,678 $ 19,826 Liabilities: Other accrued liabilities $ 5,802 $ 4,903 Long-term operating lease obligations 13,284 15,639 Total lease liabilities $ 19,086 $ 20,542 Operating lease expense, including variable and short-term lease costs which were insignificant to the total, operating lease cash flows and supplemental cash flow information were as follows: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of sales $ 513 $ 574 $ 1,285 $ 1,627 Selling, general and administrative expenses 976 1,036 2,994 3,324 Total operating lease expense $ 1,489 $ 1,610 $ 4,279 $ 4,951 Operating cash outflows from operating leases $ 1,617 $ 1,537 $ 4,685 $ 5,197 Operating lease right-of-use assets obtained in exchange for lease obligations $ 1,935 $ 1,131 $ 2,121 $ 2,655 The weighted average remaining lease liability term and the weighted average discount rate were as follows: September 30, 2020 December 31, 2019 Weighted average lease liability term (in years) 3.8 4.3 Weighted average discount rate 4.18 % 4.50 % The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at September 30, 2020. The reconciliation excludes short-term leases that are not recorded on the balance sheet. (In thousands) September 30, 2020 2020 (remaining 3 months) $ 1,462 2021 6,671 2022 5,671 2023 2,835 2024 1,765 Thereafter 2,281 Total lease payments 20,685 Less: imputed interest (1,599) Total lease liabilities $ 19,086 At September 30, 2020, we had one operating lease with a five-year term that had not yet commenced. The total initial lease liability, which is immaterial to the balance sheet, is not reflected within the above maturity schedule. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill Changes in the carrying amount of goodwill were as follows: (In thousands) Balance at December 31, 2019 $ 48,447 Foreign exchange effects 79 Balance at September 30, 2020 $ 48,526 Intangible Assets, Net The components of intangible assets, net were as follows: September 30, 2020 December 31, 2019 (In thousands) Gross (1) Accumulated Amortization (1) Net Gross (1) Accumulated Amortization (1) Net Distribution rights $ 336 $ (241) $ 95 $ 322 $ (210) $ 112 Patents 20,962 (7,294) 13,668 16,587 (6,491) 10,096 Trademarks and trade names 2,786 (2,435) 351 2,785 (2,205) 580 Developed and core technology 4,080 (2,971) 1,109 12,480 (10,016) 2,464 Capitalized software development costs 254 — 254 — — — Customer relationships 31,233 (27,093) 4,140 32,534 (25,956) 6,578 Total intangible assets, net $ 59,651 $ (40,034) $ 19,617 $ 64,708 $ (44,878) $ 19,830 (1) This table excludes the gross value of fully amortized intangible assets totaling $17.6 million and $7.4 million at September 30, 2020 and December 31, 2019, respectively. Amortization expense, which was recognized in selling, general and administrative expenses, was $1.8 million and $1.8 million during the three months ended September 30, 2020 and 2019, respectively. Amortization expense, which was recognized in selling, general and administrative expenses, was $5.5 million and $5.4 million during the nine months ended September 30, 2020 and 2019, respectively. Estimated future annual amortization expense related to our intangible assets at September 30, 2020, was as follows: (In thousands) 2020 (remaining 3 months) $ 1,037 2021 3,391 2022 3,263 2023 2,999 2024 2,418 Thereafter 6,509 Total $ 19,617 |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit Our Second Amended and Restated Credit Agreement ("Second Amended Credit Agreement") with U.S. Bank National Association ("U.S. Bank") provides for a $125.0 million revolving line of credit ("Credit Line") that expires on November 1, 2021. The Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. Amounts available for borrowing under the Credit Line are reduced by the balance of any outstanding letters of credit, of which there were $2.7 million at September 30, 2020. All obligations under the Credit Line are secured by substantially all of our U.S. personal property and tangible and intangible assets as well as 65% of our ownership interest in Enson Assets Limited, our wholly-owned subsidiary which controls our manufacturing factories in the PRC. Under the Second Amended Credit Agreement, we may elect to pay interest on the Credit Line based on LIBOR plus an applicable margin (varying from 1.25% to 1.75%) or base rate (based on the prime rate of U.S. Bank or as otherwise specified in the Second Amended Credit Agreement) plus an applicable margin (varying from 0.00% to 0.50%). The applicable margins are calculated quarterly and vary based on our cash flow leverage ratio as set forth in the Second Amended Credit Agreement. The interest rate in effect at September 30, 2020 was 1.39%. There are no commitment fees or unused line fees under the Second Amended Credit Agreement. The Second Amended Credit Agreement includes financial covenants requiring a minimum fixed charge coverage ratio and a maximum cash flow leverage ratio. In addition, the Second Amended Credit Agreement contains other customary affirmative and negative covenants and events of default. At September 30, 2020, we were in compliance with the covenants and conditions of the Second Amended Credit Agreement. At September 30, 2020, we had $50.0 million outstanding under the Credit Line. Our total interest expense on borrowings was $0.3 million and $0.9 million during the three months ended September 30, 2020 and 2019, respectively. Our total interest expense on borrowings was $1.4 million and $3.4 million during the nine months ended September 30, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We utilize our estimated annual effective tax rate to determine our provision for income taxes for interim periods. The income tax provision is computed by taking the estimated annual effective rate and multiplying it by the year-to-date pre-tax book income. We recorded income tax expense of $2.2 million and $2.5 million for the three months ended September 30, 2020 and 2019, respectively. We recorded income tax expense of $5.3 million and $3.7 million for the nine months ended September 30, 2020 and 2019, respectively. The income tax expense for the nine months ended September 30, 2020 increased primarily due to an increase in global pre-tax income and the mix of pre-tax income among jurisdictions, including losses not benefited as a result of a valuation allowance. At December 31, 2019, we assessed the realizability of our deferred tax assets by considering whether it is "more likely than not" some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. At December 31, 2019, we had a three-year cumulative operating loss for our U.S. operations and accordingly, have provided a full valuation allowance on our U.S. federal and state deferred tax assets. During the nine months ended September 30, 2020, there was no change to our valuation allowance position. At September 30, 2020, we had gross unrecognized tax benefits of $3.1 million, including interest and penalties, of which approximately $3.1 million of this amount, if not for the state Research and Experimentation income tax credit valuation allowance, would affect the annual effective tax rate if these tax benefits are realized. Further, we are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase within the next twelve months. However, based on federal, state and foreign statute expirations in various jurisdictions, we anticipate a decrease in unrecognized tax benefits of approximately $0.2 million within the next twelve months based on federal, state, and foreign statute expirations in various jurisdictions. We have classified uncertain tax positions as non-current income tax liabilities unless they are expected to be paid within one year. We have elected to classify interest and penalties as a component of tax expense. Accrued interest and penalties of $0.2 million at September 30, 2020 and $0.2 million at December 31, 2019 are included in the unrecognized tax benefits. On March 18, 2020 and March 27, 2020, the Families First Coronavirus Response ("FFCR") Act and the Coronavirus Aid, Relief and Economic Security ("CARES") Act, respectively, were enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous income tax provisions, such as relaxing limitations on the deductibility of interest and the use of net operating losses arising in taxable years beginning after December 31, 2017. We are currently evaluating the impact of this legislation on our consolidated financial position, results of operations, and cash flows. Future regulatory guidance under the FFCR and CARES Acts (as well as under the Tax Cuts and Jobs Act) remains forthcoming and such guidance may ultimately increase or decrease their impact on our business and financial condition. It is also possible that Congress will enact additional legislation in connection with the COVID-19 pandemic, some of which may impact us. In April 2020, recent interpretations of a German law relating to withholding taxes on intellectual property rights emerged. We are currently evaluating this law and any related impact to our financial position and results of operations. |
Accrued Compensation
Accrued Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Compensation | Accrued Compensation In June 2018, we sold our Guangzhou entity via a stock deal and the terms of the agreement included a two-year indemnification period. In June 2020, the indemnification period expired and we determined we were no longer legally liable for any liabilities associated with our Guangzhou entity. Accordingly, we reversed the accrued social insurance by the amount associated with the Guangzhou entity, which was approximately $9.5 million. The components of accrued compensation were as follows: (In thousands) September 30, 2020 December 31, 2019 Accrued social insurance (1) $ 7,150 $ 16,588 Accrued salary/wages 6,606 7,465 Accrued vacation/holiday 3,046 2,766 Accrued bonus 3,750 13,965 Accrued commission 954 1,283 Other accrued compensation 1,384 1,601 Total accrued compensation $ 22,890 $ 43,668 (1) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job industry insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance at September 30, 2020 and December 31, 2019. The components of other accrued liabilities were as follows: (In thousands) September 30, 2020 December 31, 2019 Contract liabilities $ 2,207 $ 1,840 Duties 4,607 3,731 Freight and handling fees 2,503 3,769 Operating lease obligations 5,802 4,903 Product warranty claims costs 1,797 1,514 Professional fees 4,301 2,833 Sales and value added taxes 4,217 3,926 Short-term contingent consideration 1,780 5,428 Other 6,402 7,501 Total other accrued liabilities $ 33,616 $ 35,445 |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Accrued Compensation In June 2018, we sold our Guangzhou entity via a stock deal and the terms of the agreement included a two-year indemnification period. In June 2020, the indemnification period expired and we determined we were no longer legally liable for any liabilities associated with our Guangzhou entity. Accordingly, we reversed the accrued social insurance by the amount associated with the Guangzhou entity, which was approximately $9.5 million. The components of accrued compensation were as follows: (In thousands) September 30, 2020 December 31, 2019 Accrued social insurance (1) $ 7,150 $ 16,588 Accrued salary/wages 6,606 7,465 Accrued vacation/holiday 3,046 2,766 Accrued bonus 3,750 13,965 Accrued commission 954 1,283 Other accrued compensation 1,384 1,601 Total accrued compensation $ 22,890 $ 43,668 (1) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job industry insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance at September 30, 2020 and December 31, 2019. The components of other accrued liabilities were as follows: (In thousands) September 30, 2020 December 31, 2019 Contract liabilities $ 2,207 $ 1,840 Duties 4,607 3,731 Freight and handling fees 2,503 3,769 Operating lease obligations 5,802 4,903 Product warranty claims costs 1,797 1,514 Professional fees 4,301 2,833 Sales and value added taxes 4,217 3,926 Short-term contingent consideration 1,780 5,428 Other 6,402 7,501 Total other accrued liabilities $ 33,616 $ 35,445 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product Warranties Changes in the liability for product warranty claims costs were as follows: (In thousands) Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 1,514 $ 276 Accruals for warranties issued during the period 578 695 Settlements (in cash or in kind) during the period/Foreign exchange effects (295) — Balance at end of period $ 1,797 $ 971 Litigation Roku Matters 2018 Lawsuit On September 5, 2018, we filed a lawsuit against Roku, Inc. ("Roku") in the United States District Court, Central District of California, alleging that Roku is willfully infringing nine of our patents that are in four patent families related to remote control set-up and touchscreen remotes. On December 5, 2018, we amended our complaint to add additional details supporting our infringement and willfulness allegations. We have alleged that this complaint relates to multiple Roku streaming players and components therefore and certain universal control devices, including but not limited to the Roku App, Roku TV, Roku Express, Roku Streaming Stick, Roku Ultra, Roku Premiere, Roku 4, Roku 3, Roku 2, Roku Enhanced Remote and any other Roku product that provides for the remote control of an external device such as a TV, audiovisual receiver, sound bar or Roku TV Wireless Speakers. In October 2019, the Court stayed this lawsuit pending action by the Patent Trial and Appeals Board (the "PTAB") with respect to Roku's Inter Partes Review requests (see discussion below). International Trade Commission Investigation of Roku, TCL, Hisense and Funai On April 16, 2020, we filed a complaint with the International Trade Commission (the "ITC") against Roku, TCL Electronics Holding Limited and related entities (collectively, "TCL"), Hisense Co., Ltd. and related entities (collectively, "Hisense"), and Funai Electric Company, Ltd. and related entities (collectively, "Funai") claiming that certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices, and sound bars infringe certain of our patents. We asked the ITC to issue a permanent limited exclusion order prohibiting the importation of these infringing products into the United States and a cease and desist order to stop these parties from continuing their infringing activities. On May 18, 2020, the ITC announced that it instituted its investigation as requested by us. We are in the discovery phase of this investigation which is set to end in early November 2020. Inter Partes Reviews In September and October 2019, Roku filed Inter Partes Review ("IPR") requests with the PTAB on the nine patents at issue in the 2018 Lawsuit (see discussion above). To date, the PTAB has denied Roku's request with respect to three of the nine patents and granted Roku's request with respect to six of the nine patents. As for those IPRs for which the PTAB granted Roku's request for review, we will vigorously defend our patents. In May and June 2020, Roku filed four IPR requests against three patents asserted in the ITC investigation. UEI has responded to these requests and we are awaiting the PTAB decision in early to mid 2021. Federal District Court Actions against each of Roku, TCL, Hisense, and Funai related to the ITC Matter On April 9, 2020, we filed separate actions against each of Roku, TCL, Hisense, and Funai in the United States District Court, Central District of California, alleging that Roku is willfully infringing five of our patents and TCL, Hisense, and Funai are willfully infringing six of our patents by incorporating our patented technology into certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices, and sound bars. These matters have been stayed pending the results of the ITC investigation mentioned above. Court of International Trade Action against the United States of America, et. al. On October 9, 2020, Universal Electronics Inc. ("UEI") and our subsidiaries, Ecolink Intelligent Technology, Inc. ("Ecolink") and RCS Technology, LLC ("RCS") filed an amended complaint (20-cv-00670) in the Court of International Trade (the "CIT") against the United States of America; the Office of the United States Trade Representative; Robert E. Lighthizer, U.S. Trade Representative; U.S. Customs & Border Protection; and Mark A. Morgan, U.S. Customs & Border Protection Acting Commissioner, challenging both the substantive and procedural processes followed by the United States Trade Representative ("USTR") when instituting Section 301 Tariffs on imports from China under Lists 3 and 4A. By this complaint, UEI, Ecolink and RCS are alleging that USTR's institution of Lists 3 and 4A tariffs violated the Trade Act of 1974 (the "Trade Act") on the grounds that the USTR failed to make a determination or finding that there was an unfair trade practice that required a remedy and moreover, that Lists 3 and 4A tariffs were instituted beyond the 12-month time limit provided for in the governing statute. UEI, Ecolink and RCS also allege that the manner in which the Lists 3 and 4A tariff actions were implemented violated the Administrative Procedures Act (the "APA") by failing to provide adequate opportunity for comments, failed to consider relevant factors when making its decision and failed to connect the record facts to the choices it made by not explaining how the comments received by USTR came to shape the final implementation of Lists 3 and 4A. UEI, Ecolink and RCS are asking the CIT to declare that Defendants' actions resulting in the tariffs on products covered by Lists 3 and 4A are unauthorized by and contrary to the Trade Act and was arbitrarily and unlawfully promulgated in violation of the APA; to vacate the Lists 3 and 4A tariffs; to order a refund (with interest) of any Lists 3 and 4A duties paid by UEI, Ecolink and RCS; to permanently enjoin the U.S. government from applying Lists 3 and 4A duties against UEI, Ecolink and RCS; and award UEI, Ecolink and RCS their costs and reasonable attorney fees. The Government has requested an automatic stay of all pending cases challenging the List 3 and List 4A tariffs except for one or more "test cases." It proposed the first-filed case—the case filed by HMTX—as the test case. The government also asked the court to appoint a "steering committee" consisting of several lead counsel for the plaintiffs to direct the litigation. The government proposed a bifurcated briefing schedule, under which the parties would first brief the government's upcoming motion to dismiss before briefing the merits of plaintiffs' claims. We will agree to a stay in our case. HMTX has filed a response agreeing to the stay and to being the test case but opposed the Government's proposed briefing schedule . There are no other material pending legal proceedings to which we or any of our subsidiaries is a party or of which our respective property is the subject. However, as is typical in our industry and to the nature and kind of business in which we are engaged, from time to time, various claims, charges and litigation are asserted or commenced by third parties against us or by us against third parties arising from or related to product liability, infringement of patent or other intellectual property rights, breach of warranty, contractual relations, or employee relations. The amounts claimed may be substantial, but may not bear any reasonable relationship to the merits of the claims or the extent of any real risk of court awards assessed against us or in our favor. However, no assurances can be made as to the outcome of any of these matters, nor can we estimate the range of potential losses to us. In our opinion, final judgments, if any, which might be rendered against us in potential or pending litigation would not have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. Moreover, we believe that our products do not infringe any third parties' patents or other intellectual property rights. We maintain directors' and officers' liability insurance, which insures our individual directors and officers against certain claims, as well as attorney's fees and related expenses incurred in connection with the defense of such claims. |
Treasury Stock
Treasury Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Treasury Stock | Treasury StockFrom time to time, our Board of Directors authorizes management to repurchase shares of our issued and outstanding common stock. On September 15, 2020, our Board of Directors authorized a share repurchase program (the "September 2020 Program"), which replaced in its entirety the previous repurchase program. Pursuant to the September 2020 Program, we may repurchase up to 300,000 shares of our common stock. At September 30, 2020, we had 213,075 shares of common stock authorized for repurchase remaining under the September 2020 Program. Subsequent to September 30, 2020, we repurchased an additional 113,075 shares under the September 2020 Program at a cost of $4.4 million. On October 28, 2020, our Board terminated the September 2020 Program and replaced it with a new share repurchase program with an effective date of November 10, 2020 (the "November 2020 Program"). Pursuant to the November 2020 Program, we may, from time to time until February 18, 2021, repurchase up to 500,000 shares of our common stock. We may repurchase shares of common stock in privately negotiated and/or open-market transactions, including pursuant to plans complying with Rule 10b5-1 promulgated under the Securities Exchange Act of 1934. Repurchased shares of our common stock were as follows: Nine Months Ended September 30, (In thousands) 2020 2019 Shares repurchased 263 55 Cost of shares repurchased $ 9,822 $ 1,741 Repurchased shares are recorded as shares held in treasury at cost. We hold these shares for future use as management and the Board of Directors deem appropriate. |
Long-lived Tangible Assets
Long-lived Tangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Long-lived Tangible Assets | Long-lived Tangible Assets Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease right-of-use assets, were as follows: (In thousands) September 30, 2020 December 31, 2019 United States $ 16,327 $ 19,938 People's Republic of China 61,320 67,625 Mexico 20,624 16,644 All other countries 4,956 6,351 Total long-lived tangible assets $ 103,227 $ 110,558 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for each employee and director is presented in the same statement of operations caption as their cash compensation. Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Cost of sales $ 36 $ 37 $ 146 $ 102 Research and development expenses 287 315 811 809 Selling, general and administrative expenses: Employees 1,555 1,866 4,695 5,005 Outside directors 382 309 1,202 802 Total employee and director stock-based compensation expense $ 2,260 $ 2,527 $ 6,854 $ 6,718 Income tax benefit $ 494 $ 509 $ 1,500 $ 1,385 Stock Options Stock option activity was as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2019 745 $ 41.73 Granted 109 46.17 Exercised — — $ — Forfeited/canceled/expired — — Outstanding at September 30, 2020 (1) 854 $ 42.29 3.63 $ 3,853 Vested and expected to vest at September 30, 2020 (1) 854 $ 42.29 3.63 $ 3,853 Exercisable at September 30, 2020 (1) 634 $ 43.04 2.75 $ 3,048 (1) The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of the third quarter of 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on September 30, 2020. This amount will change based on the fair market value of our stock. The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average fair value of grants $ — $ — $ 17.70 $ 10.28 Risk-free interest rate — % — % 1.44 % 2.49 % Expected volatility — % — % 43.95 % 41.64 % Expected life in years 0.00 0.00 4.59 4.54 As of September 30, 2020, we expect to recognize $2.7 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 1.9 years. Restricted Stock Non-vested restricted stock award activity was as follows: Shares Weighted-Average Grant Date Fair Value Non-vested at December 31, 2019 310 $ 34.99 Granted 235 36.83 Vested (150) 38.09 Forfeited (6) 44.31 Non-vested at September 30, 2020 389 $ 34.75 As of September 30, 2020, we expect to recognize $10.2 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.9 years. |
Performance-Based Common Stock
Performance-Based Common Stock Warrants | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Performance-Based Common Stock Warrants | Performance-Based Common Stock Warrants On March 9, 2016, we issued common stock purchase warrants to Comcast Corporation ("Comcast") to purchase up to 725,000 shares of our common stock at a price of $54.55 per share. The right to exercise the warrants is subject to vesting over three successive two-year periods (with the first two-year period commencing on January 1, 2016) based on the level of purchases of goods and services from us by Comcast and its affiliates, as defined in the warrants. The table below presents the purchase levels and potential number of warrants to vest in each period based upon achieving the purchase levels. Potential Warrants To Vest Aggregate Level of Purchases by Comcast and Affiliates January 1, 2016 - December 31, 2017 January 1, 2018 - December 31, 2019 January 1, 2020 - December 31, 2021 $260 million 100,000 100,000 75,000 $300 million 75,000 75,000 75,000 $340 million 75,000 75,000 75,000 Maximum Potential Warrants Earned by Comcast 250,000 250,000 225,000 If total aggregate purchases by Comcast and its affiliates are below $260 million in any of the two-year periods above, no warrants will vest related to that two-year period. If total aggregate purchases of goods and services by Comcast and its affiliates exceed $340 million during either the first or second two-year period, the amount of any such excess would count toward aggregate purchases in the following two-year period. This threshold was not met in either the first or second two-year period. For the two-year period ended December 31, 2017, Comcast earned and vested in 175,000 out of the maximum potential 250,000 warrants. For the two-year period ended December 31, 2019, Comcast earned and vested in 100,000 out of the maximum potential 250,000 warrants. At September 30, 2020, 275,000 vested warrants were outstanding. To fully vest in the rights to purchase all of the remaining unearned 225,000 underlying shares, Comcast and its affiliates must purchase an aggregate of $340 million in goods and services from us during the period January 1, 2020 through December 31, 2021. All warrants that vest will expire on January 1, 2023. The warrants provide for certain adjustments that may be made to the exercise price and the number of shares issuable upon exercise due to customary anti-dilution provisions. Additionally, in connection with the common stock purchase warrants, we have also entered into a registration rights agreement with Comcast under which Comcast may from time to time request that we register the shares of common stock underlying vested warrants with the SEC. As the warrants contain performance criteria under which Comcast must achieve specified aggregate purchase levels for the warrants to vest, as detailed above, the measurement date for the warrants for the first two-year successive periods was the date on which the warrants vested. The FASB issued guidance in November 2019 that clarifies the accounting for share-based payments issued as sales incentives to customers. The guidance requires that stock-based compensation expense be recorded as a reduction in the transaction price on the basis of the grant-date fair value. The transition provisions require that equity-classified awards be measured at the adoption date fair value if the measurement date has not been established prior to the adoption date. The measurement periods for the first two successive two-year periods of our outstanding performance-based common stock warrants were completed prior to adoption and were not impacted by this updated guidance. The measurement period for the final two-year period began on January 1, 2020, and, accordingly, we measured the fair value of the award as of our adoption date on January 1, 2020 using the Black-Scholes option pricing model. Through September 30, 2020, none of the warrants had vested for the two-year period beginning January 1, 2020. The assumptions we utilized in the Black-Scholes option pricing model and the resulting grant-date fair value of the warrants as of January 1, 2020 were the following: Fair value $ 17.19 Price of Universal Electronics Inc. common stock $ 52.21 Risk-free interest rate 1.62 % Expected volatility 48.86 % Expected life in years 3.00 Prior to the adoption of the new guidance on January 1, 2020, we adjusted the estimated weighted average fair value of the warrants each period. The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of the warrants were the following: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Fair value $ 16.78 $ 16.78 Price of Universal Electronics Inc. common stock $ 51.09 $ 51.09 Risk-free interest rate 1.56 % 1.56 % Expected volatility 47.82 % 47.82 % Expected life in years 3.25 3.25 The impact to net sales recorded in connection with the warrants and the related income tax benefit were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Reduction to net sales $ 187 $ 711 $ 525 $ 1,381 Income tax benefit $ 47 $ 177 $ 131 $ 345 We estimate the number of warrants that will vest based on projected future purchases that will be made by Comcast and its affiliates. These estimates may increase or decrease based on actual future purchases. The aggregate estimated fair value of the warrants is recognized as a reduction to revenue over the related two-year vesting period. At September 30, 2020, the aggregate unrecognized estimated fair value of warrants we estimate will vest was $0.8 million. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Net gain (loss) on foreign currency exchange contracts (1) $ (72) $ 368 $ (523) $ (8) Net gain (loss) on foreign currency exchange transactions (1,525) (689) (865) (662) Other income (49) 173 125 244 Other (expense), net $ (1,646) $ (148) $ (1,263) $ (426) (1) This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 18 for further details). |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per-share amounts) 2020 2019 2020 2019 BASIC Net income (loss) $ 6,168 $ 2,669 $ 26,414 $ (3,397) Weighted-average common shares outstanding 13,928 13,894 13,935 13,861 Basic earnings (loss) per share $ 0.44 $ 0.19 $ 1.90 $ (0.25) DILUTED Net income (loss) $ 6,168 $ 2,669 $ 26,414 $ (3,397) Weighted-average common shares outstanding for basic 13,928 13,894 13,935 13,861 Dilutive effect of stock options, restricted stock and common stock warrants 277 276 254 — Weighted-average common shares outstanding on a diluted basis 14,205 14,170 14,189 13,861 Diluted earnings (loss) per share $ 0.43 $ 0.19 $ 1.86 $ (0.25) The following number of stock options, shares of restricted stock and common stock warrants were excluded from the computation of diluted earnings per common share as their inclusion would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Stock options 511 382 494 436 Restricted stock awards — 9 18 89 Performance-based warrants 275 175 275 175 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The following table sets forth the total net fair value of derivatives: September 30, 2020 December 31, 2019 Fair Value Measurement Using Total Balance Fair Value Measurement Using Total Balance (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Foreign currency exchange contracts $ — $ 153 $ — $ 153 $ — $ (172) $ — $ (172) We held foreign currency exchange contracts, which resulted in a net pre-tax loss of $0.1 million and a net pre-tax gain of $0.4 million for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 and 2019, we had a net pre-tax loss of $0.5 million and $8.0 thousand, respectively (see Note 16). Details of foreign currency exchange contracts held were as follows: Date Held Currency Position Held Notional Value Forward Rate Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands) (1) Settlement Date September 30, 2020 USD/Chinese Yuan Renminbi CNY $ 37.0 6.8297 $ 210 October 30, 2020 September 30, 2020 USD/Euro USD $ 26.0 1.1685 $ (87) October 30, 2020 September 30, 2020 USD/Brazilian Real USD $ 1.5 5.5368 $ 24 October 30, 2020 September 30, 2020 USD/Mexican Peso USD $ 2.6 22.1285 $ 6 October 30, 2020 December 31, 2019 USD/Chinese Yuan Renminbi USD $ 35.0 6.9867 $ 100 January 23, 2020 December 31, 2019 USD/Brazilian Real USD $ 0.5 4.0560 $ (6) January 24, 2020 December 31, 2019 USD/Euro USD $ 28.0 1.1133 $ (253) January 24, 2020 December 31, 2019 USD/Brazilian Real USD $ 0.7 4.0870 $ (13) January 24, 2020 (1) Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | In the opinion of management, the accompanying consolidated financial statements of Universal Electronics Inc. and its subsidiaries contain all the adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature and certain reclassifications have been made to prior year amounts in order to conform to the current year presentation. Information and footnote disclosures normally included in financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). As used herein, the terms "Company," "we," "us," and "our" refer to Universal Electronics Inc. and its subsidiaries, unless the context indicates to the contrary. |
Estimates, Judgments and Assumptions | The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, 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. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition; allowance for bad debts; inventory valuation; our review for impairment of long-lived assets, intangible assets and goodwill; leases; business combinations; income taxes; stock-based compensation expense and performance-based common stock warrants. |
Recently Adopted Accounting Pronouncements and Recent Accounting Updates Note Yet Effective | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments", which updates existing guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred loss impairment model with an expected loss impairment model. Accordingly, financial assets are presented at amortized costs net of an allowance for expected credit losses over the lifetime of the assets. We adopted this new guidance on January 1, 2020 using the modified retrospective method. The adoption did not require an implementation adjustment and did not materially impact our consolidated statement of financial position, results of operations and cash flows. See Note 3 for further discussion on our allowance for bad debts. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment", which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to the reporting unit. Our adoption on January 1, 2020 did not have a material impact on our consolidated statement of financial position, results of operations and cash flows. In November 2019, the FASB issued ASU 2019-08, "Improvements - Share-based Consideration Payable to a Customer", which clarifies the accounting for share-based payments issued as sales incentives to customers. The guidance requires that stock-based compensation expense is recorded as a reduction in the transaction price on the basis of the grant-date fair value. The grant-date fair value is calculated using the provisions defined under Accounting Standards Codification "Stock Compensation". The transition provisions require that equity-classified awards be measured at the adoption date fair value if the measurement date has not been established prior to the adoption date. This guidance impacts the measurement date of our performance-based common stock warrants. The measurement periods for the first two successive two-year periods of our outstanding performance-based common stock warrants were completed prior to adoption and were not impacted by this updated guidance. The measurement period for the final two-year period began on January 1, 2020, and accordingly, we measured the fair value of the award as of our adoption date on January 1, 2020. We adopted this guidance using the modified retrospective method. Our adoption did not result in a cumulative adjustment in our consolidated statement of financial position. See Note 15 for further discussion on the performance-based common stock warrants. Recent Accounting Updates Not Yet Effective In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes", which, among other provisions, eliminates certain exceptions to existing guidance related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. This guidance also requires an entity to reflect the effect of an enacted change in tax laws or rates in its effective income tax rate in the first interim period that includes the enactment date of the new legislation, aligning the timing of recognition of the effects from enacted tax law changes on the effective income tax rate with the effects on deferred income tax assets and liabilities. Under existing guidance, an entity recognizes the effects of the enacted tax law change on the effective income tax rate in the period that includes the effective date of the tax law. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this guidance on our consolidated statement of financial position, results of operations and cash flows. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents by Geographic Region | Cash and cash equivalents were held in the following geographic regions: (In thousands) September 30, 2020 December 31, 2019 North America $ 14,693 $ 16,751 People's Republic of China ("PRC") 15,054 13,700 Asia (excluding the PRC) 12,291 21,691 Europe 16,802 9,081 South America 8,306 13,079 Total cash and cash equivalents $ 67,146 $ 74,302 |
Revenue and Accounts Receivab_2
Revenue and Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Pattern of Revenue Recognition | The pattern of revenue recognition was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Goods and services transferred at a point in time $ 127,657 $ 152,453 $ 365,902 $ 429,461 Goods and services transferred over time 25,848 48,271 92,514 149,322 Net sales $ 153,505 $ 200,724 $ 458,416 $ 578,783 |
Revenue from External Customers by Geographic Areas | Our net sales to external customers by geographic area were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 United States $ 64,367 $ 107,546 $ 203,981 $ 313,029 Asia (excluding PRC) 27,923 29,613 86,043 79,157 Europe 26,119 23,388 72,625 69,510 People's Republic of China 25,625 23,704 63,653 66,465 Latin America 4,546 8,281 12,652 26,187 Other 4,925 8,192 19,462 24,435 Total net sales $ 153,505 $ 200,724 $ 458,416 $ 578,783 |
Net Sales to Significant Customers | Net sales to the following customers totaled more than 10% of our net sales: Three Months Ended September 30, 2020 2019 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Comcast Corporation $ 32,533 21.2 % $ 30,419 15.2 % Sony Corporation $ 15,927 10.4 % — (1) — (1) Ring L.L.C. — (1) — (1) $ 21,050 10.5 % Nine Months Ended September 30, 2020 2019 $ (thousands) % of Net Sales $ (thousands) % of Net Sales Comcast Corporation $ 95,014 20.7 % $ 91,058 15.7 % (1) Net sales to this customer did not total more than 10% of our total net sales in the indicated period. |
Accounts Receivable, Net and Changes in the Allowance for Doubtful Accounts | Accounts receivable, net were as follows: (In thousands) September 30, 2020 December 31, 2019 Trade receivables, gross $ 122,882 $ 130,888 Allowance for bad debts (1,797) (1,492) Allowance for sales returns (618) (623) Net trade receivables 120,467 128,773 Other 7,627 10,425 Accounts receivable, net $ 128,094 $ 139,198 Changes in the allowance for bad debts were as follows: (In thousands) Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 1,492 $ 1,121 Additions to costs and expenses 271 275 Write-offs/Foreign exchange effects 34 (104) Balance at end of period $ 1,797 $ 1,292 |
Trade Receivables Associated with Significant Customers | Trade receivables associated with these significant customers that totaled more than 10% of our accounts receivable, net were as follows: September 30, 2020 December 31, 2019 $ (thousands) % of Accounts Receivable, Net $ (thousands) % of Accounts Receivable, Net Comcast Corporation $ 25,390 19.8 % — (1) — (1) DISH Network Corporation — (1) — (1) $ 14,677 10.5 % (1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net at the dates set forth. |
Inventories and Significant S_2
Inventories and Significant Suppliers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories were as follows: (In thousands) September 30, 2020 December 31, 2019 Raw materials $ 36,784 $ 56,352 Components 17,215 24,599 Work in process 4,075 1,526 Finished goods 57,676 62,658 Inventories $ 115,750 $ 145,135 |
Purchases from Significant Suppliers | Purchases from the following supplier totaled more than 10% of our total inventory purchases: Three Months Ended September 30, 2020 2019 $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases Qorvo International Pte Ltd. $ 8,472 13.0 % — (1) — (1) Nine Months Ended September 30, 2020 2019 $ (thousands) % of Total Inventory Purchases $ (thousands) % of Total Inventory Purchases Qorvo International Pte Ltd. $ 29,679 13.4 % — (1) — (1) (1) Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period The supplier that totaled more than 10% of our accounts payable, was as follows: September 30, 2020 December 31, 2019 $ (thousands) % of Accounts Payable $ (thousands) % of Accounts Payable Zhejiang Zhen You Electronics Co. Ltd. — (1) — (1) $ 11,394 11.1 % (1) Accounts payable associated with this supplier did not total more than 10% of our accounts payable at the dates set forth. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Balances within the Consolidated Balance Sheet | Lease balances within our consolidated balance sheet were as follows: (In thousands) September 30, 2020 December 31, 2019 Assets: Operating lease right-of-use assets $ 18,678 $ 19,826 Liabilities: Other accrued liabilities $ 5,802 $ 4,903 Long-term operating lease obligations 13,284 15,639 Total lease liabilities $ 19,086 $ 20,542 |
Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information | Operating lease expense, including variable and short-term lease costs which were insignificant to the total, operating lease cash flows and supplemental cash flow information were as follows: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of sales $ 513 $ 574 $ 1,285 $ 1,627 Selling, general and administrative expenses 976 1,036 2,994 3,324 Total operating lease expense $ 1,489 $ 1,610 $ 4,279 $ 4,951 Operating cash outflows from operating leases $ 1,617 $ 1,537 $ 4,685 $ 5,197 Operating lease right-of-use assets obtained in exchange for lease obligations $ 1,935 $ 1,131 $ 2,121 $ 2,655 |
Lease Terms and Discount Rates | The weighted average remaining lease liability term and the weighted average discount rate were as follows: September 30, 2020 December 31, 2019 Weighted average lease liability term (in years) 3.8 4.3 Weighted average discount rate 4.18 % 4.50 % |
Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities | The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at September 30, 2020. The reconciliation excludes short-term leases that are not recorded on the balance sheet. (In thousands) September 30, 2020 2020 (remaining 3 months) $ 1,462 2021 6,671 2022 5,671 2023 2,835 2024 1,765 Thereafter 2,281 Total lease payments 20,685 Less: imputed interest (1,599) Total lease liabilities $ 19,086 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill were as follows: (In thousands) Balance at December 31, 2019 $ 48,447 Foreign exchange effects 79 Balance at September 30, 2020 $ 48,526 |
Components of Intangible Assets, Net | The components of intangible assets, net were as follows: September 30, 2020 December 31, 2019 (In thousands) Gross (1) Accumulated Amortization (1) Net Gross (1) Accumulated Amortization (1) Net Distribution rights $ 336 $ (241) $ 95 $ 322 $ (210) $ 112 Patents 20,962 (7,294) 13,668 16,587 (6,491) 10,096 Trademarks and trade names 2,786 (2,435) 351 2,785 (2,205) 580 Developed and core technology 4,080 (2,971) 1,109 12,480 (10,016) 2,464 Capitalized software development costs 254 — 254 — — — Customer relationships 31,233 (27,093) 4,140 32,534 (25,956) 6,578 Total intangible assets, net $ 59,651 $ (40,034) $ 19,617 $ 64,708 $ (44,878) $ 19,830 (1) This table excludes the gross value of fully amortized intangible assets totaling $17.6 million and $7.4 million at September 30, 2020 and December 31, 2019, respectively. |
Estimated Future Amortization Expense Related to Intangible Assets | Estimated future annual amortization expense related to our intangible assets at September 30, 2020, was as follows: (In thousands) 2020 (remaining 3 months) $ 1,037 2021 3,391 2022 3,263 2023 2,999 2024 2,418 Thereafter 6,509 Total $ 19,617 |
Accrued Compensation (Tables)
Accrued Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Components of Accrued Compensation | The components of accrued compensation were as follows: (In thousands) September 30, 2020 December 31, 2019 Accrued social insurance (1) $ 7,150 $ 16,588 Accrued salary/wages 6,606 7,465 Accrued vacation/holiday 3,046 2,766 Accrued bonus 3,750 13,965 Accrued commission 954 1,283 Other accrued compensation 1,384 1,601 Total accrued compensation $ 22,890 $ 43,668 (1) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job industry insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance at September 30, 2020 and December 31, 2019. The components of other accrued liabilities were as follows: (In thousands) September 30, 2020 December 31, 2019 Contract liabilities $ 2,207 $ 1,840 Duties 4,607 3,731 Freight and handling fees 2,503 3,769 Operating lease obligations 5,802 4,903 Product warranty claims costs 1,797 1,514 Professional fees 4,301 2,833 Sales and value added taxes 4,217 3,926 Short-term contingent consideration 1,780 5,428 Other 6,402 7,501 Total other accrued liabilities $ 33,616 $ 35,445 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Components of Other Accrued Liabilities | The components of accrued compensation were as follows: (In thousands) September 30, 2020 December 31, 2019 Accrued social insurance (1) $ 7,150 $ 16,588 Accrued salary/wages 6,606 7,465 Accrued vacation/holiday 3,046 2,766 Accrued bonus 3,750 13,965 Accrued commission 954 1,283 Other accrued compensation 1,384 1,601 Total accrued compensation $ 22,890 $ 43,668 (1) PRC employers are required by law to remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job industry insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance at September 30, 2020 and December 31, 2019. The components of other accrued liabilities were as follows: (In thousands) September 30, 2020 December 31, 2019 Contract liabilities $ 2,207 $ 1,840 Duties 4,607 3,731 Freight and handling fees 2,503 3,769 Operating lease obligations 5,802 4,903 Product warranty claims costs 1,797 1,514 Professional fees 4,301 2,833 Sales and value added taxes 4,217 3,926 Short-term contingent consideration 1,780 5,428 Other 6,402 7,501 Total other accrued liabilities $ 33,616 $ 35,445 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in the Liability for Product Warranty Claim Costs | Changes in the liability for product warranty claims costs were as follows: (In thousands) Nine Months Ended September 30, 2020 2019 Balance at beginning of period $ 1,514 $ 276 Accruals for warranties issued during the period 578 695 Settlements (in cash or in kind) during the period/Foreign exchange effects (295) — Balance at end of period $ 1,797 $ 971 |
Treasury Stock (Tables)
Treasury Stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Repurchased Shares of Common Stock | Repurchased shares of our common stock were as follows: Nine Months Ended September 30, (In thousands) 2020 2019 Shares repurchased 263 55 Cost of shares repurchased $ 9,822 $ 1,741 |
Long-lived Tangible Assets (Tab
Long-lived Tangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Long-Lived Tangible Assets by Geographic Area | Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease right-of-use assets, were as follows: (In thousands) September 30, 2020 December 31, 2019 United States $ 16,327 $ 19,938 People's Republic of China 61,320 67,625 Mexico 20,624 16,644 All other countries 4,956 6,351 Total long-lived tangible assets $ 103,227 $ 110,558 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation Expense and Related Income Tax Benefit | Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Cost of sales $ 36 $ 37 $ 146 $ 102 Research and development expenses 287 315 811 809 Selling, general and administrative expenses: Employees 1,555 1,866 4,695 5,005 Outside directors 382 309 1,202 802 Total employee and director stock-based compensation expense $ 2,260 $ 2,527 $ 6,854 $ 6,718 Income tax benefit $ 494 $ 509 $ 1,500 $ 1,385 |
Stock Option Activity | Stock option activity was as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2019 745 $ 41.73 Granted 109 46.17 Exercised — — $ — Forfeited/canceled/expired — — Outstanding at September 30, 2020 (1) 854 $ 42.29 3.63 $ 3,853 Vested and expected to vest at September 30, 2020 (1) 854 $ 42.29 3.63 $ 3,853 Exercisable at September 30, 2020 (1) 634 $ 43.04 2.75 $ 3,048 |
Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants | The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Weighted average fair value of grants $ — $ — $ 17.70 $ 10.28 Risk-free interest rate — % — % 1.44 % 2.49 % Expected volatility — % — % 43.95 % 41.64 % Expected life in years 0.00 0.00 4.59 4.54 |
Non-Vested Restricted Stock Award Activity | Non-vested restricted stock award activity was as follows: Shares Weighted-Average Grant Date Fair Value Non-vested at December 31, 2019 310 $ 34.99 Granted 235 36.83 Vested (150) 38.09 Forfeited (6) 44.31 Non-vested at September 30, 2020 389 $ 34.75 |
Performance-Based Common Stoc_2
Performance-Based Common Stock Warrants (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Purchase Level and Number of Warrants That Will Vest | The table below presents the purchase levels and potential number of warrants to vest in each period based upon achieving the purchase levels. Potential Warrants To Vest Aggregate Level of Purchases by Comcast and Affiliates January 1, 2016 - December 31, 2017 January 1, 2018 - December 31, 2019 January 1, 2020 - December 31, 2021 $260 million 100,000 100,000 75,000 $300 million 75,000 75,000 75,000 $340 million 75,000 75,000 75,000 Maximum Potential Warrants Earned by Comcast 250,000 250,000 225,000 |
Assumptions Used in Valuation and Weighted Average Fair Value of Warrants | The assumptions we utilized in the Black-Scholes option pricing model and the resulting grant-date fair value of the warrants as of January 1, 2020 were the following: Fair value $ 17.19 Price of Universal Electronics Inc. common stock $ 52.21 Risk-free interest rate 1.62 % Expected volatility 48.86 % Expected life in years 3.00 Prior to the adoption of the new guidance on January 1, 2020, we adjusted the estimated weighted average fair value of the warrants each period. The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of the warrants were the following: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Fair value $ 16.78 $ 16.78 Price of Universal Electronics Inc. common stock $ 51.09 $ 51.09 Risk-free interest rate 1.56 % 1.56 % Expected volatility 47.82 % 47.82 % Expected life in years 3.25 3.25 |
Impact to Net Sales in Connection with Warrants and Related Income Tax Benefit | The impact to net sales recorded in connection with the warrants and the related income tax benefit were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Reduction to net sales $ 187 $ 711 $ 525 $ 1,381 Income tax benefit $ 47 $ 177 $ 131 $ 345 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Net gain (loss) on foreign currency exchange contracts (1) $ (72) $ 368 $ (523) $ (8) Net gain (loss) on foreign currency exchange transactions (1,525) (689) (865) (662) Other income (49) 173 125 244 Other (expense), net $ (1,646) $ (148) $ (1,263) $ (426) (1) This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 18 for further details). |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | Earnings (loss) per share was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per-share amounts) 2020 2019 2020 2019 BASIC Net income (loss) $ 6,168 $ 2,669 $ 26,414 $ (3,397) Weighted-average common shares outstanding 13,928 13,894 13,935 13,861 Basic earnings (loss) per share $ 0.44 $ 0.19 $ 1.90 $ (0.25) DILUTED Net income (loss) $ 6,168 $ 2,669 $ 26,414 $ (3,397) Weighted-average common shares outstanding for basic 13,928 13,894 13,935 13,861 Dilutive effect of stock options, restricted stock and common stock warrants 277 276 254 — Weighted-average common shares outstanding on a diluted basis 14,205 14,170 14,189 13,861 Diluted earnings (loss) per share $ 0.43 $ 0.19 $ 1.86 $ (0.25) |
Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share | The following number of stock options, shares of restricted stock and common stock warrants were excluded from the computation of diluted earnings per common share as their inclusion would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Stock options 511 382 494 436 Restricted stock awards — 9 18 89 Performance-based warrants 275 175 275 175 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Total Net Fair Value of Derivatives | The following table sets forth the total net fair value of derivatives: September 30, 2020 December 31, 2019 Fair Value Measurement Using Total Balance Fair Value Measurement Using Total Balance (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Foreign currency exchange contracts $ — $ 153 $ — $ 153 $ — $ (172) $ — $ (172) |
Foreign Currency Exchange Contracts | Details of foreign currency exchange contracts held were as follows: Date Held Currency Position Held Notional Value Forward Rate Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands) (1) Settlement Date September 30, 2020 USD/Chinese Yuan Renminbi CNY $ 37.0 6.8297 $ 210 October 30, 2020 September 30, 2020 USD/Euro USD $ 26.0 1.1685 $ (87) October 30, 2020 September 30, 2020 USD/Brazilian Real USD $ 1.5 5.5368 $ 24 October 30, 2020 September 30, 2020 USD/Mexican Peso USD $ 2.6 22.1285 $ 6 October 30, 2020 December 31, 2019 USD/Chinese Yuan Renminbi USD $ 35.0 6.9867 $ 100 January 23, 2020 December 31, 2019 USD/Brazilian Real USD $ 0.5 4.0560 $ (6) January 24, 2020 December 31, 2019 USD/Euro USD $ 28.0 1.1133 $ (253) January 24, 2020 December 31, 2019 USD/Brazilian Real USD $ 0.7 4.0870 $ (13) January 24, 2020 (1) Unrealized gains on foreign currency exchange contracts are recorded in prepaid expenses and other current assets. Unrealized losses on foreign currency exchange contracts are recorded in other accrued liabilities. |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 67,146 | $ 74,302 |
North America | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 14,693 | 16,751 |
People's Republic of China | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 15,054 | 13,700 |
Asia (excluding PRC) | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 12,291 | 21,691 |
Europe | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 16,802 | 9,081 |
South America | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 8,306 | $ 13,079 |
Revenue and Accounts Receivab_3
Revenue and Accounts Receivable, Net - Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues, net | $ 153,505 | $ 200,724 | $ 458,416 | $ 578,783 |
Goods and services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues, net | 127,657 | 152,453 | 365,902 | 429,461 |
Goods and services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues, net | $ 25,848 | $ 48,271 | $ 92,514 | $ 149,322 |
Revenue and Accounts Receivab_4
Revenue and Accounts Receivable, Net - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 153,505 | $ 200,724 | $ 458,416 | $ 578,783 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64,367 | 107,546 | 203,981 | 313,029 |
Asia (excluding PRC) | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 27,923 | 29,613 | 86,043 | 79,157 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26,119 | 23,388 | 72,625 | 69,510 |
People's Republic of China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 25,625 | 23,704 | 63,653 | 66,465 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,546 | 8,281 | 12,652 | 26,187 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,925 | $ 8,192 | $ 19,462 | $ 24,435 |
Revenue and Accounts Receivab_5
Revenue and Accounts Receivable, Net - Net Sales to Significant Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 153,505 | $ 200,724 | $ 458,416 | $ 578,783 |
Comcast Corporation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 32,533 | $ 30,419 | $ 95,014 | $ 91,058 |
Comcast Corporation | Customer Concentration Risk | Net Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 21.20% | 15.20% | 20.70% | 15.70% |
Sony Corporation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 15,927 | $ 0 | ||
Sony Corporation | Customer Concentration Risk | Net Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 10.40% | 0.00% | ||
Ring L.L.C. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 0 | $ 21,050 | ||
Ring L.L.C. | Customer Concentration Risk | Net Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 0.00% | 10.50% |
Revenue and Accounts Receivab_6
Revenue and Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||||
Trade receivables, gross | $ 122,882 | $ 130,888 | ||
Allowance for bad debts | (1,797) | (1,492) | $ (1,292) | $ (1,121) |
Allowance for sales returns | (618) | (623) | ||
Net trade receivables | 120,467 | 128,773 | ||
Other | 7,627 | 10,425 | ||
Accounts receivable, net | $ 128,094 | $ 139,198 |
Revenue and Accounts Receivab_7
Revenue and Accounts Receivable, Net - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Allowance for Doubtful Accounts | ||
Balance at beginning of period | $ 1,492 | $ 1,121 |
Additions to costs and expenses | 271 | 275 |
Write-offs/Foreign exchange effects | 34 | (104) |
Balance at end of period | $ 1,797 | $ 1,292 |
Revenue and Accounts Receivab_8
Revenue and Accounts Receivable, Net - Trade Receivables Associated with Significant Customers (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Comcast Corporation | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable, net | $ 25,390 | $ 0 |
Comcast Corporation | Trade Accounts Receivable | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk percentage | 19.80% | 0.00% |
Dish Network Corporation [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable, net | $ 0 | $ 14,677 |
Dish Network Corporation [Member] | Trade Accounts Receivable | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk percentage | 0.00% | 10.50% |
Inventories and Significant S_3
Inventories and Significant Suppliers - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 36,784 | $ 56,352 |
Components | 17,215 | 24,599 |
Work in process | 4,075 | 1,526 |
Finished goods | 57,676 | 62,658 |
Inventories | $ 115,750 | $ 145,135 |
Inventories and Significant S_4
Inventories and Significant Suppliers - Purchases from Significant Suppliers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Qorvo International Pte Ltd. | |||||
Concentration Risk [Line Items] | |||||
Inventory purchases | $ 8,472 | $ 0 | $ 29,679 | $ 0 | |
Zhejiang Zhen You Electronics Co. Ltd. | |||||
Concentration Risk [Line Items] | |||||
Inventory purchases | $ 0 | $ 11,394 | |||
Supplier Concentration Risk | Inventory Purchases | Qorvo International Pte Ltd. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 13.00% | 0.00% | 13.40% | 0.00% | |
Supplier Concentration Risk | Accounts Payable | Zhejiang Zhen You Electronics Co. Ltd. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 0.00% | 11.10% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2020lease |
Leases [Abstract] | |
Remaining lease terms (up to) | 40 years |
Number of operating leases not yet commenced | 1 |
Term of operating lease that has not yet commenced | 5 years |
Leases - Lease Balances within
Leases - Lease Balances within the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Operating lease right-of-use assets | $ 18,678 | $ 19,826 |
Liabilities: | ||
Other accrued liabilities | 5,802 | 4,903 |
Long-term operating lease obligations | 13,284 | 15,639 |
Total lease liabilities | $ 19,086 | $ 20,542 |
Lease liability location within the Consolidated Balance Sheets | us-gaap:OtherAccruedLiabilitiesCurrent |
Leases - Operating Lease Expens
Leases - Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 1,489 | $ 1,610 | $ 4,279 | $ 4,951 |
Operating cash outflows from operating leases | 1,617 | 1,537 | 4,685 | 5,197 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 1,935 | 1,131 | 2,121 | 2,655 |
Cost of sales | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | 513 | 574 | 1,285 | 1,627 |
Selling, general and administrative expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 976 | $ 1,036 | $ 2,994 | $ 3,324 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average lease term | 3 years 9 months 18 days | 4 years 3 months 18 days |
Weighted average discount rate | 4.18% | 4.50% |
Leases - Reconciliation of the
Leases - Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (remaining 3 months) | $ 1,462 | |
2021 | 6,671 | |
2022 | 5,671 | |
2023 | 2,835 | |
2024 | 1,765 | |
Thereafter | 2,281 | |
Total lease payments | 20,685 | |
Less: imputed interest | (1,599) | |
Total lease liabilities | $ 19,086 | $ 20,542 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance | $ 48,447 |
Foreign exchange effects | 79 |
Balance | $ 48,526 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 59,651 | $ 64,708 |
Accumulated Amortization | (40,034) | (44,878) |
Total | 19,617 | 19,830 |
Gross value of fully amortized intangible assets | 17,600 | 7,400 |
Distribution rights | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 336 | 322 |
Accumulated Amortization | (241) | (210) |
Total | 95 | 112 |
Patents | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 20,962 | 16,587 |
Accumulated Amortization | (7,294) | (6,491) |
Total | 13,668 | 10,096 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 2,786 | 2,785 |
Accumulated Amortization | (2,435) | (2,205) |
Total | 351 | 580 |
Developed and core technology | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 4,080 | 12,480 |
Accumulated Amortization | (2,971) | (10,016) |
Total | 1,109 | 2,464 |
Capitalized software development costs | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 254 | 0 |
Accumulated Amortization | 0 | 0 |
Total | 254 | 0 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 31,233 | 32,534 |
Accumulated Amortization | (27,093) | (25,956) |
Total | $ 4,140 | $ 6,578 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 1.8 | $ 1.8 | ||
Selling, General and Administrative Expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 5.5 | $ 5.4 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Estimated Future Annual Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Estimated Future Amortization expense | ||
2020 (remaining 3 months) | $ 1,037 | |
2021 | 3,391 | |
2022 | 3,263 | |
2023 | 2,999 | |
2024 | 2,418 | |
Thereafter | 6,509 | |
Total | $ 19,617 | $ 19,830 |
Line of Credit (Details)
Line of Credit (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | |||||
Amount outstanding under line of credit | $ 50,000,000 | $ 50,000,000 | $ 68,000,000 | ||
Interest expense on borrowings | $ 300,000 | $ 1,400,000 | $ 900,000 | $ 3,400,000 | |
Line of Credit | US Bank | |||||
Line of Credit Facility [Line Items] | |||||
Effective interest rate | 1.39% | 1.39% | |||
Line of Credit | US Bank | LIBOR | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
Line of Credit | US Bank | LIBOR | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Line of Credit | US Bank | Base Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.00% | ||||
Line of Credit | US Bank | Base Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Line of Credit | US Bank | Enson | |||||
Line of Credit Facility [Line Items] | |||||
Ownership interest used to secure obligations | 65.00% | 65.00% | |||
Line of Credit | Second Amended Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 125,000,000 | $ 125,000,000 | |||
Commitment fees | 0 | ||||
Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit outstanding amount | $ 2,700,000 | $ 2,700,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 2,164 | $ 2,526 | $ 5,267 | $ 3,747 | |
Unrecognized tax benefits | 3,100 | 3,100 | |||
Unrecognized tax benefits that would impact effective rate | 3,100 | 3,100 | |||
Anticipated decrease in unrecognized tax benefits | 200 | 200 | |||
Accrued interest and penalties | $ 200 | $ 200 | $ 200 |
Accrued Compensation - Narrativ
Accrued Compensation - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Accrued social insurance adjustment | $ 0 | $ 0 | $ 9,464 | $ 0 | ||
Guangzhou | Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Indemnification period | 2 years | |||||
Accrued social insurance adjustment | $ 9,500 |
Accrued Compensation (Details)
Accrued Compensation (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued social insurance | $ 7,150 | $ 16,588 |
Accrued salary/wages | 6,606 | 7,465 |
Accrued vacation/holiday | 3,046 | 2,766 |
Accrued bonus | 3,750 | 13,965 |
Accrued commission | 954 | 1,283 |
Other accrued compensation | 1,384 | 1,601 |
Total accrued compensation | $ 22,890 | $ 43,668 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Contract liabilities | $ 2,207 | $ 1,840 |
Duties | 4,607 | 3,731 |
Freight and handling fees | 2,503 | 3,769 |
Operating lease obligations | 5,802 | 4,903 |
Product warranty claims costs | 1,797 | 1,514 |
Professional fees | 4,301 | 2,833 |
Sales and value added taxes | 4,217 | 3,926 |
Short-term contingent consideration | 1,780 | 5,428 |
Other | 6,402 | 7,501 |
Total other accrued liabilities | $ 33,616 | $ 35,445 |
Commitments and Contingencies -
Commitments and Contingencies - Changes in the Liability for Product Warranty Claim Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Changes in Reserve for Product Warranty Claim Costs | ||
Balance at beginning of period | $ 1,514 | $ 276 |
Accruals for warranties issued during the period | 578 | 695 |
Settlements (in cash or in kind) during the period/Foreign exchange effects | (295) | 0 |
Balance at end of period | $ 1,797 | $ 971 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | Apr. 09, 2020patent | Sep. 05, 2018patent | Jun. 30, 2020patentinter_partes_review | Sep. 30, 2020inter_partes_review |
Contingencies [Line Items] | ||||
Number of IPR requests denied | inter_partes_review | 3 | |||
Number of IPR requests granted | inter_partes_review | 6 | |||
Number of IPR requests | inter_partes_review | 4 | |||
Number of patents subject to IPR requests | 3 | |||
Roku Lawsuit | Pending Litigation | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 9 | |||
Number of patent families | 4 | |||
Roku, TCL, Hisense, and Funai Patent Infringement - ITC Matter | Pending Litigation | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 5 | |||
TLC Hisense and Funai - ITC Matter | Pending Litigation | ||||
Contingencies [Line Items] | ||||
Number of patents allegedly infringed upon | 6 |
Treasury Stock - Narrative (Det
Treasury Stock - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Nov. 05, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Nov. 10, 2020 | Sep. 15, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Shares repurchased (in shares) | 263,000 | 55,000 | |||||||||
Cost of shares repurchased | $ 3,417 | $ 114 | $ 6,291 | $ 337 | $ 189 | $ 1,215 | $ 9,822 | $ 1,741 | |||
Share Repurchase Program Authorized September 15, 2020 | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Repurchase of common stock (in shares) | 300,000 | ||||||||||
Remaining common stock authorized for repurchase (in shares) | 213,075 | 213,075 | |||||||||
Share Repurchase Program Authorized September 15, 2020 | Subsequent Event | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Shares repurchased (in shares) | 113,075 | ||||||||||
Cost of shares repurchased | $ 4,400 | ||||||||||
Share Repurchase Program Authorized November 10 2020 | Subsequent Event | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Repurchase of common stock (in shares) | 500,000 |
Treasury Stock - Repurchased Sh
Treasury Stock - Repurchased Shares of Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||||||||
Shares repurchased (in shares) | 263 | 55 | ||||||
Cost of shares repurchased | $ 3,417 | $ 114 | $ 6,291 | $ 337 | $ 189 | $ 1,215 | $ 9,822 | $ 1,741 |
Long-lived Tangible Assets - Lo
Long-lived Tangible Assets - Long-Lived Tangible Assets by Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | $ 103,227 | $ 110,558 |
United States | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | 16,327 | 19,938 |
People's Republic of China | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | 61,320 | 67,625 |
Mexico | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | 20,624 | 16,644 |
All other countries | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | $ 4,956 | $ 6,351 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | $ 2,260 | $ 2,527 | $ 6,854 | $ 6,718 |
Income tax benefit | 494 | 509 | 1,500 | 1,385 |
Cost of sales | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | 36 | 37 | 146 | 102 |
Research and development expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | 287 | 315 | 811 | 809 |
Selling, general and administrative expenses | Employees | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | 1,555 | 1,866 | 4,695 | 5,005 |
Selling, general and administrative expenses | Outside directors | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Employee and director stock-based compensation expense | $ 382 | $ 309 | $ 1,202 | $ 802 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Number of Options | |
Outstanding at beginning of period (in shares) | shares | 745 |
Granted (in shares) | shares | 109 |
Exercised (in shares) | shares | 0 |
Forfeited/canceled/expired (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 854 |
Vested and expected to vest at end of period (in shares) | shares | 854 |
Exercisable at end of period (in shares) | shares | 634 |
Weighted-Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 41.73 |
Granted (in dollars per share) | $ / shares | 46.17 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited/canceled/expired (in dollars per share) | $ / shares | 0 |
Outstanding at end of period (in dollars per share) | $ / shares | 42.29 |
Vested and expected to vest at end of period (in dollars per share) | $ / shares | 42.29 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 43.04 |
Weighted-Average Remaining Contractual Term (in years) | |
Outstanding at end of period | 3 years 7 months 17 days |
Vested and expected to vest at end of period | 3 years 7 months 17 days |
Exercisable at end of period | 2 years 9 months |
Aggregate Intrinsic Value | |
Exercised | $ | $ 0 |
Outstanding at end of period | $ | 3,853 |
Vested and expected to vest at end of period | $ | 3,853 |
Exercisable at end of period | $ | $ 3,048 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used in Valuation and Weighted Average Fair Value of Stock Option Grants (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Weighted average fair value of grants (in dollars per share) | $ 0 | $ 0 | $ 17.70 | $ 10.28 |
Risk-free interest rate | 0.00% | 0.00% | 1.44% | 2.49% |
Expected volatility | 0.00% | 0.00% | 43.95% | 41.64% |
Expected life in years | 0 years | 0 years | 4 years 7 months 2 days | 4 years 6 months 14 days |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized pre-tax stock-based compensation expense | $ 2.7 |
Unrecognized pre-tax stock-based compensation expense, remaining weighted-average life | 1 year 10 months 24 days |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized pre-tax stock-based compensation expense | $ 10.2 |
Unrecognized pre-tax stock-based compensation expense, remaining weighted-average life | 1 year 10 months 24 days |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-Vested Restricted Stock Award Activity (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Shares | |
Non-vested at beginning of period (in shares) | shares | 310 |
Granted (in shares) | shares | 235 |
Vested (in shares) | shares | (150) |
Forfeited (in shares) | shares | (6) |
Non-vested at end of period (in shares) | shares | 389 |
Weighted-Average Grant Date Fair Value | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 34.99 |
Granted (in dollars per share) | $ / shares | 36.83 |
Vested (in dollars per share) | $ / shares | 38.09 |
Forfeited (in dollars per share) | $ / shares | 44.31 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 34.75 |
Performance-Based Common Stoc_3
Performance-Based Common Stock Warrants - Narrative (Details) | Mar. 09, 2016USD ($)vesting_period$ / sharesshares | Dec. 31, 2019shares | Dec. 31, 2017shares | Sep. 30, 2020USD ($)shares |
Class of Warrant or Right [Line Items] | ||||
Unrecognized estimated fair value of unvested warrants | $ | $ 800,000 | |||
Common Stock Purchase Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Number of shares called by warrants (in shares) | 725,000 | |||
Exercise price of warrants (in dollars per share) | $ / shares | $ 54.55 | |||
Number of vesting periods | vesting_period | 3 | |||
Term of successive vesting periods | 2 years | 2 years | 2 years | |
Vesting period one | 2 years | |||
Vested warrants outstanding (in shares) | 275,000 | |||
Unearned underlying shares (in shares) | 225,000 | |||
Number of warrants vested (in shares) | 0 | |||
Comcast Corporation | Common Stock Purchase Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Number of warrants vested in period (in shares) | 100,000 | 175,000 | ||
Maximum warrants available to vest (in shares) | 250,000 | 250,000 | ||
Supply Threshold | Common Stock Purchase Warrants | ||||
Class of Warrant or Right [Line Items] | ||||
Aggregate level of purchases, $260 million threshold | $ | $ 260,000,000 | |||
Aggregate level of purchases, $340 million threshold | $ | $ 340,000,000 | |||
Supply threshold amount | $ | $ 340,000,000 |
Performance-Based Common Stoc_4
Performance-Based Common Stock Warrants - Purchase Level and Number of Warrants to Vest (Details) - Common Stock Purchase Warrants - Supply Threshold | Mar. 09, 2016USD ($)shares |
Class of Warrant or Right [Line Items] | |
Aggregate level of purchases, threshold one | $ | $ 260,000,000 |
Aggregate level of purchases, threshold two | $ | 300,000,000 |
Aggregate level of purchases, threshold three | $ | $ 340,000,000 |
Incremental Warrants That Will Vest January 1, 2016 - December 31, 2017 | |
$260 million threshold (in shares) | 100,000 |
$300 million threshold (in shares) | 75,000 |
$340 million threshold (in shares) | 75,000 |
Maximum Potential Warrants Earned by Comcast (in shares) | 250,000 |
Incremental Warrants That Will Vest January 1, 2018 - December 31, 2019 | |
$260 million threshold (in shares) | 100,000 |
$300 million threshold (in shares) | 75,000 |
$340 million threshold (in shares) | 75,000 |
Maximum Potential Warrants Earned by Comcast (in shares) | 250,000 |
Incremental Warrants That Will Vest January 1, 2020 - December 31, 2021 | |
$260 million threshold (in shares) | 75,000 |
$300 million threshold (in shares) | 75,000 |
$340 million threshold (in shares) | 75,000 |
Maximum Potential Warrants Earned by Comcast (in shares) | 225,000 |
Performance-Based Common Stoc_5
Performance-Based Common Stock Warrants - Assumptions Used in Valuation and Weighted Average Fair Value of Warrants (Details) - Common Stock Purchase Warrants | Jan. 01, 2020$ / shares | Sep. 30, 2019$ / shares |
Class of Warrant or Right [Line Items] | ||
Fair value (in dollars per share) | $ 17.19 | $ 16.78 |
Price of Universal Electronics Inc. common stock (in dollars per share) | $ 52.21 | $ 51.09 |
Risk-free interest rate | ||
Class of Warrant or Right [Line Items] | ||
Valuation assumption rate | 0.0162 | 0.0156 |
Expected volatility | ||
Class of Warrant or Right [Line Items] | ||
Valuation assumption rate | 0.4886 | 0.4782 |
Expected life | ||
Class of Warrant or Right [Line Items] | ||
Expected life | 3 years | 3 years 3 months |
Performance-Based Common Stoc_6
Performance-Based Common Stock Warrants - Impact to Net Sales in Connection with Warrants and Related Income Tax Benefit (Details) - Common Stock Purchase Warrants - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Class of Warrant or Right [Line Items] | ||||
Reduction to net sales | $ 187 | $ 711 | $ 525 | $ 1,381 |
Income tax benefit | $ 47 | $ 177 | $ 131 | $ 345 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | ||||
Net gain (loss) on foreign currency exchange contracts | $ (72) | $ 368 | $ (523) | $ (8) |
Net gain (loss) on foreign currency exchange transactions | (1,525) | (689) | (865) | (662) |
Other income | (49) | 173 | 125 | 244 |
Other (expense), net | $ (1,646) | $ (148) | $ (1,263) | $ (426) |
Earnings (Loss) Per Share - Cal
Earnings (Loss) Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
BASIC | ||||||||
Net income (loss) | $ 6,168 | $ 14,400 | $ 5,846 | $ 2,669 | $ (5,061) | $ (1,005) | $ 26,414 | $ (3,397) |
Weighted-average common shares outstanding (in shares) | 13,928 | 13,894 | 13,935 | 13,861 | ||||
Basic earnings (loss) per share (in dollars per share) | $ 0.44 | $ 0.19 | $ 1.90 | $ (0.25) | ||||
DILUTED | ||||||||
Net income (loss) | $ 6,168 | $ 14,400 | $ 5,846 | $ 2,669 | $ (5,061) | $ (1,005) | $ 26,414 | $ (3,397) |
Weighted-average common shares outstanding (in shares) | 13,928 | 13,894 | 13,935 | 13,861 | ||||
Dilutive effect of stock options, restricted stock and common stock warrants (in shares) | 277 | 276 | 254 | 0 | ||||
Weighted-average common shares outstanding on a diluted basis (in shares) | 14,205 | 14,170 | 14,189 | 13,861 | ||||
Diluted earnings (loss) per share (in dollars per share) | $ 0.43 | $ 0.19 | $ 1.86 | $ (0.25) |
Earnings (Loss) Per Share - Sec
Earnings (Loss) Per Share - Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded in computation of diluted earning per share (in shares) | 511 | 382 | 494 | 436 |
Restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded in computation of diluted earning per share (in shares) | 0 | 9 | 18 | 89 |
Performance-based warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded in computation of diluted earning per share (in shares) | 275 | 175 | 275 | 175 |
Derivatives - Total Net Fair Va
Derivatives - Total Net Fair Value of Derivatives (Details) - Fair Value Measurements on a Recurring Basis - Foreign Currency Exchange Contracts - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total Balance | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ 153 | $ (172) |
Level 1 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | 0 | 0 |
Level 2 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | 153 | (172) |
Level 3 | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts | $ 0 | $ 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments,Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency exchange contracts | $ (72) | $ 368 | $ (523) | $ (8) |
Not Designated as Hedging Instrument | Foreign Currency Exchange Contracts | ||||
Derivative Instruments,Gain (Loss) [Line Items] | ||||
Net gain (loss) on foreign currency exchange contracts | $ (100) | $ 400 | $ (500) | $ (8) |
Derivatives - Foreign Currency
Derivatives - Foreign Currency Exchange Contracts (Details) - Not Designated as Hedging Instrument $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)$ / €$ / R$$ / $$ / ¥ | Dec. 31, 2019USD ($)$ / ¥$ / R$$ / € | |
USD/Chinese Yuan Renminbi | ||
Derivative [Line Items] | ||
Notional value | $ 37,000 | $ 35,000 |
Forward rate | $ / ¥ | 6.8297 | 6.9867 |
Unrealized gain/(loss) recorded at balance sheet date | $ 210 | $ 100 |
USD/Euro | ||
Derivative [Line Items] | ||
Notional value | $ 26,000 | $ 28,000 |
Forward rate | $ / € | 1.1685 | 1.1133 |
Unrealized gain/(loss) recorded at balance sheet date | $ (87) | $ (253) |
USD/Brazilian Real | ||
Derivative [Line Items] | ||
Notional value | $ 1,500 | |
Forward rate | $ / R$ | 5.5368 | |
Unrealized gain/(loss) recorded at balance sheet date | $ 24 | |
USD/Brazilian Real | USD/Brazilian Real, Contract 1 | ||
Derivative [Line Items] | ||
Notional value | $ 500 | |
Forward rate | $ / R$ | 4.0560 | |
Unrealized gain/(loss) recorded at balance sheet date | $ (6) | |
USD/Brazilian Real | USD/Brazilian Real, Contract 2 | ||
Derivative [Line Items] | ||
Notional value | $ 700 | |
Forward rate | $ / R$ | 4.0870 | |
Unrealized gain/(loss) recorded at balance sheet date | $ (13) | |
USD/Mexican Peso | ||
Derivative [Line Items] | ||
Notional value | $ 2,600 | |
Forward rate | $ / $ | 22.1285 | |
Unrealized gain/(loss) recorded at balance sheet date | $ 6 |