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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Nov. 06, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	UNIVERSAL ELECTRONICS INC
Entity Central Index Key	0000101984
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		13,805,506

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 41,995	$ 62,438
Restricted cash	0	4,901
Accounts receivable, net	151,885	151,578
Contract assets	26,257	0
Inventories, net	135,888	162,589
Prepaid expenses and other current assets	15,429	11,687
Assets held for sale	0	12,517
Income tax receivable	2,695	1,587
Total current assets	374,149	407,297
Property, plant and equipment, net	101,025	110,962
Goodwill	48,509	48,651
Intangible assets, net	25,580	29,041
Deferred income taxes	7,371	7,913
Other assets	4,335	4,566
Total assets	560,969	608,430
Current liabilities:
Accounts payable	108,343	119,165
Line of credit	103,500	138,000
Accrued compensation	32,220	34,499
Accrued sales discounts, rebates and royalties	7,944	8,882
Accrued income taxes	1,441	3,670
Other accrued liabilities	19,899	28,719
Total current liabilities	273,347	332,935
Long-term liabilities:
Long-term contingent consideration	10,170	13,400
Deferred income taxes	1,189	4,423
Income tax payable	2,520	2,520
Other long-term liabilities	1,534	1,603
Total liabilities	288,760	354,881
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; 23,891,790 and 23,760,434 shares issued on September 30, 2018 and December 31, 2017, respectively	239	238
Paid-in capital	274,493	265,195
Treasury stock, at cost, 10,076,385 and 9,702,874 shares on September 30, 2018 and December 31, 2017, respectively	(274,629)	(262,065)
Accumulated other comprehensive income (loss)	(21,789)	(16,599)
Retained earnings	293,895	266,780
Total stockholders' equity	272,209	253,549
Total liabilities and stockholders' equity	$ 560,969	$ 608,430

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
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)	23,891,790	23,760,434
Treasury stock, shares (in shares)	10,076,385	9,702,874

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net sales	$ 182,717	$ 175,652	$ 509,938	$ 514,638
Cost of sales	142,401	132,582	405,661	386,783
Gross profit	40,316	43,070	104,277	127,855
Research and development expenses	5,593	5,415	17,703	15,859
Factory transition restructuring charges	0	446	0	6,145
Selling, general and administrative expenses	29,994	32,997	90,811	94,701
Operating income (loss)	4,729	4,212	(4,237)	11,150
Interest income (expense), net	(1,177)	(721)	(3,526)	(1,676)
Gain on sale of Guangzhou factory	0	0	36,978	0
Other income (expense), net	(2,282)	61	(3,951)	2
Income before provision for income taxes	1,270	3,552	25,264	9,476
Provision for income taxes	311	1,824	2,233	2,945
Net income	$ 959	$ 1,728	$ 23,031	$ 6,531
Earnings per share:
Basic (in dollars per share)	$ 0.07	$ 0.12	$ 1.65	$ 0.45
Diluted (in dollars per share)	$ 0.07	$ 0.12	$ 1.63	$ 0.44
Shares used in computing earnings per share:
Basic (in shares)	13,836	14,381	13,997	14,412
Diluted (in shares)	13,959	14,666	14,116	14,689

CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 959	$ 1,728	$ 23,031	$ 6,531
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(3,778)	2,999	(5,190)	4,990
Comprehensive income (loss)	$ (2,819)	$ 4,727	$ 17,841	$ 11,521

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash provided by (used for) operating activities:
Net income	$ 23,031	$ 6,531
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization	25,264	23,202
Provision for doubtful accounts	2	167
Provision for inventory write-downs	6,450	2,189
Gain on sale of Guangzhou factory	(36,978)	0
Deferred income taxes	(1,370)	(953)
Shares issued for employee benefit plan	879	591
Employee and director stock-based compensation	6,808	9,476
Performance-based common stock warrants	747	1,122
Impairment of China factory equipment	2,886	0
Changes in operating assets and liabilities:
Accounts receivable and contract assets	(1,289)	(24,440)
Inventories	(9,535)	(21,217)
Prepaid expenses and other assets	(4,193)	(2,422)
Accounts payable and accrued liabilities	(13,142)	1,488
Accrued income taxes	(4,134)	(1,517)
Net cash provided by (used for) operating activities	(4,574)	(5,783)
Cash provided by (used for) investing activities:
Proceeds from sale of Guangzhou factory	51,291	0
Acquisitions of property, plant and equipment	(16,838)	(29,922)
Refund of deposit received toward sale of Guangzhou factory	(5,053)	0
Acquisitions of intangible assets	(1,911)	(1,275)
Acquisition of net assets of Residential Control Systems, Inc.	0	(8,894)
Net cash provided by (used for) investing activities	27,489	(40,091)
Cash provided by (used for) financing activities:
Borrowings under line of credit	48,000	115,000
Repayments on line of credit	(82,500)	(50,987)
Proceeds from stock options exercised	864	1,107
Treasury stock purchased	(12,564)	(20,217)
Contingent consideration payments in connection with business combinations	(3,858)	0
Net cash provided by (used for) financing activities	(50,058)	44,903
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,799	(5,504)
Net increase (decrease) in cash, cash equivalents and restricted cash	(25,344)	(6,475)
Cash, cash equivalents and restricted cash at beginning of year	67,339	59,834
Cash, cash equivalents and restricted cash at end of period	41,995	53,359
Supplemental cash flow information:
Income taxes paid	5,453	5,770
Interest paid	$ 3,722	$ 1,697

Basis of Presentation and Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

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. 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, 2018 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, 2017.

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, allowances for sales returns and doubtful accounts, inventory valuation, our review for impairment of long-lived assets, intangible assets and goodwill, business combinations, income taxes, stock-based compensation expense and performance-based common stock warrants. Actual results may differ from these estimates and assumptions, and they may be adjusted as more information becomes available. Any adjustment may be material.

Summary of Significant Accounting Policies

We adopted Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," and all related amendments as of January 1, 2018. The impact of this new guidance on our accounting policies and consolidated financial statements is also described below. There have been no other significant changes in our accounting policies during the three and nine months ended September 30, 2018 compared to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2017.

Revenue Recognition

Our performance obligations primarily arise from manufacturing and delivering universal control, sensing and automation products and AV accessories, which are sold through multiple channels, and intellectual property that is embedded in these products or licensed to others. These performance obligations are satisfied at a point in time or over time, as described below. Payment terms are typically on open credit terms consistent with industry practice and do not have significant financing components. Some contracts contain early payment discounts, which are recognized as a reduction to revenue if the customer typically meets the early payment conditions. Consideration may be variable based on indeterminate volumes.

Effective January 1, 2018, revenue is recognized over time when the customer simultaneously receives and consumes the benefits provided by our performance, our performance creates or enhances an asset that the customer controls, or when our performance creates an asset with no alternative use to us (custom products) and we have an enforceable right to payment for performance completed to date, such as a firm order or other contractual commitment from the customer. An asset does not have an alternative use if we are unable to redirect the asset to another customer in the foreseeable future without significant rework. The method for measuring progress towards satisfying a performance obligation for a custom product is based on the costs incurred to date (cost-to-cost method). We believe that the costs associated with production are most closely aligned with the revenue associated with those products.

We recognize revenue at a point in time if the criteria for recognizing revenue over time are not met, the title of the goods has transferred, and we have a present right to payment.

We typically recognize revenue for the sale of tooling at a point in time, which is generally upon completion of the tooling and, if applicable, acceptance by the customer.

A provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded. These estimates are based on historical sales returns and allowances, analysis of credit memo data and other known factors. Actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and claims are significantly greater or lower than the reserves that we have established, we will record a reduction or increase to net revenue in the period in which we make such a determination.

We accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers. Accruals for discounts and rebates are recorded as a reduction to sales in the same period as the related revenue. Changes in such accruals may be required if future rebates and incentives differ from our estimates.

We license our intellectual property including our patented technologies, trademarks, and database of control codes. When license fees are paid on a per-unit basis, we record license revenue when our customers manufacture or ship a product incorporating our intellectual property and we have a present right to payment. When a fixed up-front license fee is received in exchange for the delivery of a particular database of infrared codes or the contract contains a minimum guarantee provision, we record revenue when delivery of the intellectual property has occurred. Tiered royalties are recorded on a straight-line basis according to the forecasted per-unit fees taking into account the pricing tiers.

Contract assets represent revenue which has been recognized based on our accounting policies but for which the customer has not yet been invoiced and thus an account receivable has not yet been recorded.

Under prior accounting standards, we recognized revenue on the sale of products when title of the goods had transferred, there was persuasive evidence of an arrangement (such as a purchase order from the customer), the sales price was fixed or determinable and collectability was reasonably assured. Revenue for term license fees were recognized on a straight-line basis over the effective term of the license when we could not reliably predict in which periods, within the term of the license, the licensee would benefit from the use of our patented inventions.

Recently Adopted Accounting Pronouncements

On January 1, 2018, we adopted ASU 2014-09 using the modified retrospective transition method. Under this method, we evaluated all contracts that were in effect at the beginning of 2018 as if those contracts had been accounted for under the new revenue standard based on the terms in effect as of the adoption date. Under the modified retrospective transition approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with historical U.S. GAAP. A cumulative catch-up adjustment was recorded to beginning retained earnings to reflect the impact of all existing arrangements under the new revenue standard.

The cumulative effects of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09, were as follows:



	As reported		Adjustments due to ASU 2014-09			Balance at
Consolidated Balance Sheet (In thousands)	12/31/2017		Adjustments due to ASU 2014-09			1/1/2018
Contract assets	$	—	$	29,759		$	29,759
Inventories, net	162,589		(23,830		)	138,759
Prepaid expenses and other current assets	11,687		(174		)	11,513
Deferred income tax assets	7,913		(102		)	7,811
Accounts payable and other current liabilities	332,935		1,528			334,463
Deferred income tax liabilities	4,423		20			4,443
Retained earnings	266,780		4,084			270,864

The following tables compare the reported consolidated balance sheet and statements of operations as of and for the three and nine months ended September 30, 2018, to pro forma amounts had the previous guidance been in effect. The guidance did not have a significant impact on the Company's consolidated statement of cash flows.



	As of September 30, 2018
Consolidated Balance Sheet (In thousands)	As reported		Without Adoption of ASU 2014-09		Effect of Change
Assets
Contract assets	$	26,257	$	—	$	26,257
Inventories, net	135,888		156,553		(20,665		)
Prepaid expenses and other current assets	15,429		15,419		10
Deferred income taxes	7,371		7,379		(8		)

Liabilities and Equity
Accounts payable and other current liabilities	$	273,347	$	271,734	$	1,613
Retained earnings	293,895		289,914		3,981



	Three Months Ended September 30, 2018
Consolidated Statements of Operations (In thousands)	As reported		Without Adoption of ASU 2014-09		Effect of Change
Net sales	$	182,717	$	184,559	$	(1,842	)
Cost of sales	142,401		144,426		(2,025		)
Selling, general and administrative expenses	29,994		30,029		(35		)
Provision for income taxes	311		355		(44		)
Net income	959		697		262

Earnings per share:
Basic	$	0.07	$	0.05	$	0.02
Diluted	$	0.07	$	0.05	$	0.02



	Nine months ended September 30, 2018
Consolidated Statements of Operations (In thousands)	As reported		Without Adoption of ASU 2014-09		Effect of Change
Net sales	$	509,938	$	512,880	$	(2,942	)
Cost of sales	405,661		408,427		(2,766		)
Selling, general and administrative expenses	90,811		90,866		(55		)
Provision for income taxes	2,233		2,250		(17		)
Net income	23,031		23,134		(103		)

Earnings per share:
Basic	$	1.65	$	1.66	$	(0.01	)
Diluted	$	1.63	$	1.64	$	(0.01	)

Other Accounting Pronouncements

In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which amends Accounting Standards Codification ("ASC") 230, "Statement of Cash Flows". This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal periods beginning after December 15, 2017 and must be adopted retrospectively. The adoption of ASU 2016-15 did not have a material impact to the presentation of our consolidated statement of cash flows.

In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which changes the accounting for income tax consequences of intra-entity transfers of assets other than inventory. Current guidance prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. Under this new guidance, the income tax consequences of an intra-entity transfer of an asset other than inventory will be recognized when the transfer occurs. ASU 2016-16 is effective for fiscal periods beginning after December 15, 2017. The adoption of ASU 2016-16 did not have a material impact on our consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18,"Restricted Cash," which amends ASC 230, "Statement of Cash Flows." This new guidance addresses the classifications and presentation of changes in restricted cash in the statement of cash flows. ASU 2016-18 is effective for fiscal periods beginning after December 15, 2017 and must be adopted retrospectively. The adoption of ASU 2016-18 modified our current disclosures by reclassifying certain amounts within the consolidated statement of cash flows, but did not have a material effect on our consolidated financial statements.

Recent Accounting Updates Not Yet Effective

In February 2016, the FASB issued ASU 2016-02, "Leases," which changes the accounting for leases and requires expanded disclosures about leasing activities. This new guidance will require lessees to recognize a right of use asset and a lease liability at the commencement date for all leases with terms greater than twelve months. Accounting by lessors is largely unchanged. ASU 2016-02 is effective for fiscal periods beginning after December 15, 2018 and must be adopted using a modified retrospective approach. Early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, which provides an additional transition method when adopting ASU 2016-02. Under the original guidance, the modified retrospective approach provided that ASU 2016-02 be applied at the beginning of the earliest period presented. ASU 2018-11 allows for the application of the new guidance as of the adoption date with a cumulative-effect adjustment to the opening balance of retained earnings. We plan to adopt ASU 2016-02 effective January 1, 2019 using the new transition guidance provided in ASU 2018-11 and are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." This guidance 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. ASU 2017-04 is effective for fiscal periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, "Improvements to Non-employee Share-Based Payment Accounting." This guidance expands the scope of Topic 718, "Compensation - Stock Compensation" to include share-based payment transactions for acquiring goods and services from non-employees, but excludes awards granted in conjunction with selling goods or services to a customer as part of a contract accounted for under ASC 606, "Revenue from Contracts with Customers." We are currently evaluating the impact that ASU 2018-07 will have on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, "Customer’s Accounting for implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract," which amends ASC 350-40, "Intangibles - Goodwill and Other - Internal-Use Software." The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and requires the capitalized implementation costs to be expensed over the term of the hosting arrangement. The accounting for the service element of a hosting arrangement that is a service contract is not affected. Effective for fiscal periods beginning after December 15, 2019, and interim periods within those fiscal years. We are currently evaluating the impact that ASU 2018-07 will have on our consolidated financial statements.

Cash and Cash Equivalents and Restricted Cash

9 Months Ended

Sep. 30, 2018

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents and Restricted Cash

Cash and Cash Equivalents

Cash and cash equivalents were held in the following geographic regions:



(In thousands)	September 30, 2018		December 31, 2017
United States	$	3,694	$	10,489
People's Republic of China ("PRC")	20,024		23,283
Asia (excluding the PRC)	1,350		1,405
Europe	7,976		18,071
South America	8,951		9,190
Total cash and cash equivalents	$	41,995	$	62,438

Restricted Cash

In connection with the pending sale of our Guangzhou factory in the PRC (Note 10), a prospective buyer made a cash deposit of RMB 32 million ($5.1 million based on April 2018 exchange rates) into an escrow account on September 29, 2016. Under the terms of the escrow account, these funds were not to be paid to us until the close of the sale. Accordingly, this deposit was presented as restricted cash within our consolidated balance sheet. In April 2018, the sale transaction with this buyer was terminated and this deposit was returned to the buyer.

Accounts Receivable, Net and Revenue Concentrations

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Accounts Receivable, Net and Revenue Concentrations

Accounts receivable, net were as follows:



(In thousands)	September 30, 2018			December 31, 2017
Trade receivables, gross	$	145,823		$	142,299
Allowance for doubtful accounts	(992		)	(1,064		)
Allowance for sales returns	(588		)	(562		)
Net trade receivables	144,243			140,673
Other	7,642			10,905
Accounts receivable, net	$	151,885		$	151,578

Allowance for Doubtful Accounts

Changes in the allowance for doubtful accounts were as follows:



(In thousands)	Nine Months Ended September 30,
(In thousands)	2018			2017
Balance at beginning of period	$	1,064		$	904
Additions to costs and expenses	2			167
(Write-offs)/Foreign exchange effects	(74		)	(19		)
Balance at end of period	$	992		$	1,052

Significant Customers

Net sales to the following customers totaled more than 10% of our net sales:



	Three Months Ended September 30,
	2018				2017
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales
Comcast Corporation	$	32,336	17.7	%	$	36,811	21.0	%
AT&T ⁽¹⁾	$	—	—	%	$	20,117	11.5	%



	Nine Months Ended September 30,
	2018				2017
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales
Comcast Corporation	$	99,853	19.6	%	$	122,009	23.7	%
AT&T ⁽¹⁾	$	—	—	%	$	61,057	11.9	%


⁽¹⁾	Sales associated with this customer did not total more than 10% of our net sales for the indicated period.

Trade receivables associated with these significant customers that totaled more than 10% of our accounts receivable, net were as follows:



	September 30, 2018				December 31, 2017
	$ (thousands)		% of Accounts Receivable, Net		$ (thousands)		% of Accounts Receivable, Net
Comcast Corporation	$	20,084	13.2	%	$	25,142	16.6	%

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories, Net and Significant Suppliers

9 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

Inventories, Net and Significant Suppliers

Inventories, net were as follows:



(In thousands)	September 30, 2018			December 31, 2017
Raw materials	$	62,835		$	43,638
Components	13,763			16,214
Work in process	8,378			1,847
Finished goods	58,195			105,178
Reserve for excess and obsolete inventory	(7,283		)	(4,288		)
Inventories, net	$	135,888		$	162,589

Reserve for Excess and Obsolete Inventory

Changes in the reserve for excess and obsolete inventory were as follows:



(In thousands)	Nine Months Ended September 30,
(In thousands)	2018			2017
Balance at beginning of period	$	4,288		$	4,205
Additions charged to costs and expenses ⁽¹⁾	5,353			1,960
Sell through ⁽²⁾	(1,240		)	(950		)
(Write-offs)/Foreign exchange effects	(1,118		)	(2,090		)
Balance at end of period	$	7,283		$	3,125


⁽¹⁾	The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $1.1 million and $0.2 million for the nine months ended September 30, 2018 and 2017, respectively. These amounts are production waste and are not included in management's reserve for excess and obsolete inventory.


⁽²⁾	These amounts represent the reduction in reserves associated with inventory items that were sold during the period.

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,
	2018				2017
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Texas Instruments ⁽¹⁾	$	—	—	%	$	13,115	12.4	%



	Nine Months Ended September 30,
	2018				2017
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Texas Instruments ⁽¹⁾	$	—	—	%	$	33,693	11.3	%


⁽¹⁾	Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period.

Related Party Supplier

During the three and nine months ended September 30, 2018 and 2017, we purchased certain printed circuit board assemblies from a related party supplier. The supplier was considered a related party for financial reporting purposes because our Senior Vice President of Strategic Operations owned 40% of this supplier. In the second quarter of 2018, our Senior Vice President sold his interest in this supplier, and thus this supplier is no longer considered a related party.

Total inventory purchases made from this supplier while it was a related party were $1.1 million during the nine months ended September 30, 2018 and $1.4 million and $4.0 million during the three and nine months ended September 30, 2017, respectively.

Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill

Changes in the carrying amount of goodwill were as follows:



(In thousands)
Balance at December 31, 2017	$	48,651
Foreign exchange effects	(142		)
Balance at September 30, 2018	$	48,509

Intangible Assets, Net

The components of intangible assets, net were as follows:



	September 30, 2018							December 31, 2017
(In thousands)	Gross ⁽¹⁾		Accumulated Amortization ⁽¹⁾			Net		Gross ⁽¹⁾		Accumulated Amortization ⁽¹⁾			Net
Distribution rights	$	333	$	(182	)	$	151	$	344	$	(165	)	$	179
Patents	14,194		(5,502		)	8,692		13,250		(5,310		)	7,940
Trademarks and trade names	2,786		(1,823		)	963		2,786		(1,594		)	1,192
Developed and core technology	12,560		(7,583		)	4,977		12,560		(6,071		)	6,489
Capitalized software development costs	249		(131		)	118		142		(77		)	65
Customer relationships	32,534		(21,855		)	10,679		32,534		(19,395		)	13,139
Order backlog	—		—			—		150		(113		)	37
Total intangible assets, net	$	62,656	$	(37,076	)	$	25,580	$	61,766	$	(32,725	)	$	29,041


⁽¹⁾	This table excludes the gross value of fully amortized intangible assets totaling $6.8 million and $6.0 million at September 30, 2018 and December 31, 2017, respectively.

Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs and order backlog, which are recorded in cost of sales. Amortization expense by income statement caption was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2018		2017		2018		2017
Cost of sales	$	18	$	54	$	91	$	128
Selling, general and administrative expenses	1,770		1,715		5,275		5,032
Total amortization expense	$	1,788	$	1,769	$	5,366	$	5,160

Estimated future annual amortization expense related to our intangible assets at September 30, 2018, was as follows:



(In thousands)
2018 (remaining 3 months)	$	1,778
2019	7,018
2020	5,883
2021	2,325
2022	2,216
Thereafter	6,360
Total	$	25,580

Line of Credit	9 Months Ended
Line of Credit	Sep. 30, 2018
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") and Wells Fargo Bank, National Association provides for a $170.0 million revolving line of credit ("Credit Line") that expires on November 1, 2019. 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. There were no outstanding letters of credit at September 30, 2018. 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, 2018 was 3.97%. 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. As of September 30, 2018, we were in compliance with the covenants and conditions of the Second Amended Credit Agreement. At September 30, 2018, we had $103.5 million outstanding under the Credit Line. Our total interest expense on borrowings was $1.2 million and $0.8 million during the three months ended September 30, 2018 and 2017, respectively. Our total interest expense on borrowings was $3.7 million and $1.8 million during the nine months ended September 30, 2018 and 2017, respectively.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2018
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 $0.3 million and $1.8 million for the three months ended September 30, 2018 and 2017, respectively, and our effective tax rate was 24.5% and 51.4% for the three months ended September 30, 2018 and 2017, respectively. The decrease in our effective tax rate was primarily due to certain transactions in China during the three months ended September 30, 2017 being nondeductible as a result of the pending sale of our Guangzhou factory. During the nine months ended September 30, 2018 and 2017, we recorded income tax expense of $2.2 million and $2.9 million, respectively, and our effective tax rate was 8.8% and 31.1% during the nine months ended September 30, 2018 and 2017, respectively. The decrease in our effective tax rate was primarily a result of the tax rate applicable to the gain recognized on the sale of our Guangzhou factory being lower than our blended consolidated tax rate. Additionally, during the nine months ended September 30, 2017, certain transactions in China were nondeductible as a result of the pending sale of our Guangzhou factory. The Tax Cuts and Jobs Act (the "Tax Act") was enacted on December 22, 2017. The Tax Act reduces the U.S. federal corporate income tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. We are applying the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Act. At September 30, 2018, we have not completed our accounting for all of the tax effects of the Tax Act. Additionally, we have made a reasonable estimate of other effects. During the three and nine month periods ended September 30, 2018, we recognized no adjustments to the provisional amounts recorded at December 31, 2017. We are awaiting further guidance from the U.S. federal and state regulatory bodies with regards to the final accounting and reporting of these items in the jurisdictions where we file tax returns. In all cases, we will continue to make and refine our calculations as additional analysis is completed. Our estimates may also be affected as we gain a more thorough understanding of tax law. These changes could be material to income tax expense. Additionally, we have provided provisional amounts for the legislative provisions that are effective as of January 1, 2018, including, but not limited to, the creation of the base erosion anti-abuse tax ("BEAT"), a new minimum tax, a new provision designed to tax global intangible low-taxed income ("Global Minimum Tax" or "GMT"), a new limitation on deductible interest expense, and limitations on the use of net operating losses. Our accounting for these elements of the Tax Act is incomplete; however, we were able to make reasonable estimates and therefore recorded provisional adjustments. Similar to the above elements, we are in the process of collecting and preparing necessary data, and interpreting guidance as issued by the U.S. Treasury Department, Internal Revenue Service, FASB, and other federal and state standard-setting regulatory bodies. However, we continue to gather additional information to complete our accounting for these items and expect to complete the accounting within the prescribed measurement period. Given the complexity of the GMT provisions, we are still evaluating the effects of the GMT provisions and have not yet determined our accounting policy. At September 30, 2018, we are still evaluating the GMT provisions and our analysis of future taxable income that is subject to GMT, we have included GMT related to current year operations only in our estimated annual effective tax rate and have not provided additional GMT on deferred items. At September 30, 2018, we had gross unrecognized tax benefits of $4.6 million, including interest and penalties, of which approximately $4.3 million, 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 amount of unrecognized tax benefits will significantly change within the next twelve months. Based on federal, state and foreign statute expirations in various jurisdictions, we do not anticipate any decrease in unrecognized tax benefits within the next twelve months. We have classified uncertain tax positions as non-current income tax liabilities unless 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 $0.6 million and $0.5 million at September 30, 2018 and December 31, 2017, respectively, are included in our unrecognized tax benefits.

Accrued Compensation

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Accrued Compensation

The components of accrued compensation were as follows:



(In thousands)	September 30, 2018		December 31, 2017
Accrued social insurance ⁽¹⁾	$	17,216	$	17,727
Accrued salary/wages	8,309		7,910
Accrued vacation/holiday	2,830		2,769
Accrued bonus ⁽²⁾	1,724		2,329
Accrued commission	935		1,089
Other accrued compensation	1,206		2,675
Total accrued compensation	$	32,220	$	34,499

⁽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 on September 30, 2018 and December 31, 2017.

⁽²⁾

Accrued bonus includes an accrual for an extra month of salary ("13^th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13^th month salary is paid to these employees if they remain employed with us through December 31st. The total accrued for the 13^th month salary was $0.1 million and $0.7 million at September 30, 2018 and December 31, 2017, respectively.

Other Accrued Liabilities

The components of other accrued liabilities were as follows:



(In thousands)	September 30, 2018		December 31, 2017
Deposit for sale of Guangzhou factory	$	—	$	4,901
Duties	1,039		1,184
Freight and handling fees	2,757		1,983
Professional fees	1,488		1,578
Property, plant and equipment	366		2,151
Sales taxes and VAT	998		2,955
Short-term contingent consideration	3,730		3,800
Tooling ⁽¹⁾	2,171		1,843
Other	7,350		8,324
Total other accrued liabilities	$	19,899	$	28,719


⁽¹⁾	The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers.

Other Accrued Liabilities

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Other Accrued Liabilities

Accrued Compensation

The components of accrued compensation were as follows:



(In thousands)	September 30, 2018		December 31, 2017
Accrued social insurance ⁽¹⁾	$	17,216	$	17,727
Accrued salary/wages	8,309		7,910
Accrued vacation/holiday	2,830		2,769
Accrued bonus ⁽²⁾	1,724		2,329
Accrued commission	935		1,089
Other accrued compensation	1,206		2,675
Total accrued compensation	$	32,220	$	34,499

⁽¹⁾

⁽²⁾

Other Accrued Liabilities

The components of other accrued liabilities were as follows:



(In thousands)	September 30, 2018		December 31, 2017
Deposit for sale of Guangzhou factory	$	—	$	4,901
Duties	1,039		1,184
Freight and handling fees	2,757		1,983
Professional fees	1,488		1,578
Property, plant and equipment	366		2,151
Sales taxes and VAT	998		2,955
Short-term contingent consideration	3,730		3,800
Tooling ⁽¹⁾	2,171		1,843
Other	7,350		8,324
Total other accrued liabilities	$	19,899	$	28,719


⁽¹⁾	The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Product Warranties

Changes in the liability for product warranty claim costs were as follows:



(In thousands)	Nine Months Ended September 30,
(In thousands)	2018			2017
Balance at beginning of period	$	339		$	134
Accruals for warranties issued during the period	787			169
Settlements (in cash or in kind) during the period	(850		)	(85		)
Balance at end of period	$	276		$	218

Restructuring Activities and Sale of Guangzhou Factory

In the first quarter of 2016, we implemented a plan to transition manufacturing activities from our southern-most China factory, located in the city of Guangzhou in the Guangdong province, to our other China factories. As a result, we incurred severance costs of $0.4 million and $6.1 million during the three and nine months ended September 30, 2017, respectively, which are included within operating expenses. All operations ceased in our Guangzhou factory in the third quarter of 2017 and the transition to the other China factories was completed by the end of 2017. Since all operations at our Guangzhou manufacturing facility ceased as of the end of July 2017, the related building and land lease assets were classified as assets held for sale in our consolidated balance sheet at December 31, 2017.

On September 26, 2016, we entered into an agreement to sell our Guangzhou manufacturing facility for RMB 320 million. In accordance with the terms of the agreement, the buyer deposited 10% of the purchase price into an escrow account upon the execution of the agreement, which we presented as restricted cash in our consolidated balance sheet at December 31, 2017 (also refer to Note 2). In April 2018, we and the buyer mutually agreed to terminate the sale. The mutually agreed termination took effect immediately with no incremental penalty or costs to either party. In connection with this termination, the deposit was returned to the buyer.

On April 23, 2018, we entered into a new agreement to sell our Guangzhou manufacturing facility to a second buyer for RMB 339 million (approximately $51.4 million based on exchange rates in effect at the time of closing). On April 26, 2018, the second buyer paid to us a deposit of RMB 34 million (approximately $5.1 million based on exchange rates in effect at the time of closing), which under the terms of the agreement was nonrefundable. Upon receipt by the Governmental Agency of the second buyer’s application of approval of transfer, the second buyer was to pay to us RMB 237 million (approximately $35.8 million based on exchange rates in effect at the time of closing). Additionally, within two days after the second payment was made to us, the second buyer was to deposit the remaining consideration of RMB 68 million (approximately $10.3 million based on exchange rates in effect at the time of closing) into escrow, which was to be released to us upon the closing of the sale. Per the terms of the agreement, the sale was to be completed no later than June 30, 2018. On June 26, 2018, all conditions to closing were satisfied and the sale was completed, resulting in a pre-tax gain of $37.0 million ($32.1 million, net of income taxes).

Litigation

On or about June 10, 2015, FM Marketing GmbH ("FMH") and Ruwido Austria GmbH ("Ruwido"), filed a Summons in Summary Proceedings in Belgium court against one of our subsidiaries, Universal Electronics BV ("UEBV") and one of its customers, Telenet N.V. ("Telenet"), claiming that one of the products UEBV supplied to Telenet violates two design patents and one utility patent owned by FMH and/or Ruwido. By this summons, FMH and Ruwido sought to enjoin Telenet and UEBV from continued distribution and use of the product at issue. After the September 29, 2015 hearing, the court issued its ruling in our and Telenet’s favor, rejecting FMH and Ruwido’s request entirely. On October 22, 2015, Ruwido filed its notice of appeal in this ruling. The parties have fully briefed and argued before the appellate court and we are awaiting the appellate court’s ruling. In addition, on or about February 9, 2016, Ruwido filed a writ of summons for proceeding on the merits with respect to the asserted patents. UEBV and Telenet have replied, denying all of Ruwido's allegations and in June 2017, a hearing was held before the trial court. During this hearing, Ruwido sought to have a second product which we are currently selling to Telenet included in this case. In September 2017, the Court ruled in our favor that our current product cannot be made part of this case. The Court also refused to rule on whether the original product (which we are no longer selling) infringes the Ruwido patent, instead deciding to wait until the European Patent Office has ruled on our Opposition (see below). Finally, the Court ruled that our original product (which we are no longer selling) infringes certain of Ruwido’s design rights, but stayed any decision of compensation and/or damages until all aspects of the case have been decided. We have filed an appeal as to the Court’s ruling of infringement, and submission by the parties were due to the Court during the second quarter of 2018 with a hearing expected to take place in late 2018. Subsequent to the Court's ruling that a second product could not be added to the first case on the merits, Ruwido filed a separate case on the merits with respect to this second product, claiming that it too infringes the same patent at issue in the first suit. We have denied these claims. According to the Court’s trial schedule, briefs from both parties will be due during the second half of 2018 and early 2019 with a trial date set for January 2019. In September 2015, UEBV filed an Opposition with the European Patent Office seeking to invalidate the one utility patent asserted against UEBV and Telenet by Ruwido. The hearing on this opposition was held in July 2017. During this hearing the panel requested additional information. We have assembled this additional information and the final hearing has been scheduled for January 29, 2019. On September 5, 2017, Ruwido and FMH filed a patent infringement case on the merits against UEBV and Telenet in the Netherlands alleging the same claims of infringement as in the Belgium Courts (see above). We have denied these claims and filed a counterclaim seeking to invalidate the Ruwido patent. A November 30, 2018 hearing date has been set by the Court.

On September 5, 2018, we filed a lawsuit against Roku, Inc. (“Roku”) in the United States District Court, Central District of California (Universal Electronics Inc. v. Roku, Inc.) alleging that Roku is infringing nine patents that are in four patent families related to remote control set-up and touchscreen remotes. We have alleged that this complaint relates to multiple Roku streaming players and components therefore and certain universal control devices, including but not limited, the Roku App, Roku TV, Roku Ultra, 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. Roku has not yet answered our complaint.

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

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Treasury Stock

From time to time, our Board of Directors authorizes management to repurchase shares of our issued and outstanding common stock on the open market. On July 26, 2018, our Board approved a repurchase plan authorizing the repurchase of up to $5.0 million of our common stock. As of September 30, 2018, we had $3.3 million of authorized repurchases remaining under the Board's authorizations. On October 30, 2018, our Board approved an adjustment to the amount of common stock that we could purchase under our existing repurchase plan to an amount not to exceed $5.0 million of our common stock. We may utilize various methods to effect the repurchases, which could include open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some of which may be effected through Rule 10b5-1 plans. The timing and amount of future repurchases, if any, will depend upon several factors, including market and business conditions, and such repurchases may be discontinued at any time.

Repurchased shares of our common stock were as follows:



	Nine Months Ended September 30,
(In thousands)	2018		2017
Shares repurchased	374		330
Cost of shares repurchased	$	12,564	$	20,217

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.

Foreign Operations

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Foreign Operations

Our net sales to external customers by geographic area were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2018		2017		2018		2017
United States	$	84,756	$	85,762	$	243,801	$	253,259
Asia (excluding PRC)	36,888		26,113		91,755		77,679
People's Republic of China	28,108		23,437		68,852		61,015
Europe	18,785		18,877		58,245		56,041
Latin America	6,411		13,567		23,077		44,593
Other	7,769		7,896		24,208		22,051
Total net sales	$	182,717	$	175,652	$	509,938	$	514,638

Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas.

Long-lived tangible assets by geographic area were as follows:



(In thousands)	September 30, 2018		December 31, 2017
United States	$	14,765	$	14,674
People's Republic of China	85,808		96,984
All other countries	4,787		3,870
Total long-lived tangible assets	$	105,360	$	115,528

Stock-Based Compensation

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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)	2018		2017		2018		2017
Cost of sales	$	21	$	19	$	61	$	53
Research and development expenses	200		149		556		412
Selling, general and administrative expenses:
Employees	1,671		1,843		4,936		5,562
Outside directors	247		1,910		1,255		3,449
Total employee and director stock-based compensation expense	$	2,139	$	3,921	$	6,808	$	9,476

Income tax benefit	$	441	$	603	$	1,423	$	2,307

Stock Options

Stock option activity was as follows:



	Number of Options (in 000's)		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in 000's)
Outstanding at December 31, 2017	520		$	42.56
Granted	119		44.95
Exercised	(35	)	24.67			$	744
Forfeited/canceled/expired	(7	)	27.74
Outstanding at September 30, 2018 ⁽¹⁾	597		$	44.27	4.34	$	2,972
Vested and expected to vest at September 30, 2018⁽¹⁾	597		$	44.27	4.34	$	2,972
Exercisable at September 30, 2018 ⁽¹⁾	414		$	41.74	3.64	$	2,972

⁽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 2018 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, 2018. 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,
	2018			2017			2018			2017
Weighted average fair value of grants	$	—		$	—		$	14.26		$	19.61
Risk-free interest rate	—		%	—		%	2.51		%	1.75		%
Expected volatility	—		%	—		%	33.09		%	34.25		%
Expected life in years	0.00			0.00			4.53			4.52

As of September 30, 2018, we expect to recognize $2.3 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 (in 000's)		Weighted-Average Grant Date Fair Value
Non-vested at December 31, 2017	162		$	61.19
Granted	167		42.65
Vested	(75	)	60.02
Forfeited	(11	)	55.94
Non-vested at September 30, 2018	243		$	49.03

As of September 30, 2018, we expect to recognize $8.8 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.8 years.

Performance-Based Common Stock Warrants

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Performance-Based Common Stock Warrants

On March 9, 2016, we issued common stock purchase warrants to 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 (the first two-year period commenced on January 1, 2016 and ended December 31, 2017) 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 number of warrants that will vest in each period based upon achieving these purchase levels.



	Incremental Warrants That Will 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 will count toward aggregate purchases in the following two-year period. At September 30, 2018, 175,000 vested warrants were outstanding. To fully vest in the rights to purchase all of the remaining unearned 475,000 underlying shares, Comcast and its affiliates must purchase an aggregate of $680 million in goods and services from us during the remaining four-year vesting period.

Any and 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 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.

Because 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 is the date on which the warrants vest. Through September 30, 2018, no warrants had vested for the two-year period beginning January 1, 2018.

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,		Nine Months Ended September 30,
	2018	2017	2018	2017
Fair value	$10.06	$24.17	$10.06	$24.17
Price of Universal Electronics Inc. common stock	$38.95	$62.10	$38.95	$62.10
Risk-free interest rate	2.92%	1.93%	2.92%	1.93%
Expected volatility	41.00%	34.41%	41.00%	34.41%
Expected life in years	4.25	5.26	4.25	5.26

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)	2018		2017			2018		2017
Reduction/(increase) to net sales	$	404	$	(141	)	$	747	$	1,122
Income tax benefit/(expense)	100		(53		)	186		418

At September 30, 2018, we estimated 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 unrecognized estimated fair value of unvested warrants at September 30, 2018 was $4.0 million.

Other Income (Expense), Net

9 Months Ended

Sep. 30, 2018

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)	2018			2017			2018			2017
Net gain (loss) on foreign currency exchange contracts ⁽¹⁾	$	69		$	(1,488	)	$	603		$	(2,852	)
Net gain (loss) on foreign currency exchange transactions	(2,377		)	1,176			(4,617		)	2,512
Other income	26			373			63			342
Other income (expense), net	$	(2,282	)	$	61		$	(3,951	)	$	2


⁽¹⁾	This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 17 for further details).

Earnings Per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per share was calculated as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2018		2017		2018		2017
BASIC
Net income	$	959	$	1,728	$	23,031	$	6,531
Weighted-average common shares outstanding	13,836		14,381		13,997		14,412
Basic earnings per share	$	0.07	$	0.12	$	1.65	$	0.45

DILUTED
Net income	$	959	$	1,728	$	23,031	$	6,531
Weighted-average common shares outstanding for basic	13,836		14,381		13,997		14,412
Dilutive effect of stock options, restricted stock and common stock warrants	123		285		119		277
Weighted-average common shares outstanding on a diluted basis	13,959		14,666		14,116		14,689
Diluted earnings per share	$	0.07	$	0.12	$	1.63	$	0.44

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)	2018	2017	2018	2017
Stock options	382	165	365	153
Restricted stock awards	59	30	134	30
Performance-based warrants	175	—	175	—

Derivatives

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

The following table sets forth the total net fair value of derivatives:



	September 30, 2018								December 31, 2017
	Fair Value Measurement Using						Total Balance		Fair Value Measurement Using							Total Balance
(In thousands)	Level 1		Level 2		Level 3		Total Balance		Level 1		Level 2			Level 3		Total Balance
Foreign currency exchange contracts	$	—	$	147	$	—	$	147	$	—	$	(565	)	$	—	$	(565	)

We held foreign currency exchange contracts, which resulted in a net pre-tax gain of $0.1 million and a net pre-tax loss of $1.5 million for the three months ended September 30, 2018 and 2017, respectively. For the nine months ended September 30, 2018 and 2017, we had a net pre-tax gain of $0.6 million and a net pre-tax loss of $2.9 million, respectively (see Note 15).

Details of foreign currency exchange contracts held were as follows:



Date Held	Currency	Position Held	Notional Value (in millions)		Forward Rate	Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands)⁽¹⁾			Settlement Date
September 30, 2018	USD/Euro	USD	$	18.0	1.1773	$	216		October 26, 2018
September 30, 2018	USD/Chinese Yuan Renminbi	USD	$	35.0	6.8963	$	(56	)	October 26, 2018
September 30, 2018	USD/Brazilian Real	USD	$	1.0	4.1032	$	(13	)	October 26, 2018

December 31, 2017	USD/Euro	USD	$	17.0	1.1858	$	(220	)	January 5, 2018
December 31, 2017	USD/Chinese Yuan Renminbi	Chinese Yuan Renminbi	$	20.0	6.6481	$	(410	)	January 5, 2018
December 31, 2017	USD/Brazilian Real	USD	$	2.5	3.2350	$	65		January 24, 2018


⁽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.

Business Combination

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Business Combination

On April 6, 2017, we acquired substantially all of the net assets of Residential Control Systems, Inc. ("RCS"), a U.S.-based designer and manufacturer of energy management and control products for the residential, small commercial and hospitality markets. The purchase price of $12.6 million was comprised of $8.9 million in cash and $3.7 million of contingent consideration. The acquisition of these assets will allow us to expand our product offering of home sensing, monitoring and control solutions to include smart thermostat, sensing and monitoring products previously sold and marketed by RCS.

Our consolidated statement of operations for the three and nine months ended September 30, 2018 includes net sales of $1.4 million and $3.3 million, respectively, and net losses of $0.4 million and $1.3 million, respectively, attributable to RCS. Our consolidated statement of operations for the three and nine months ended September 30, 2017 includes net sales of $0.8 million and $2.2 million and net losses of $0.3 million and $0.7 million, attributable to RCS for the period commencing on April 6, 2017.

Contingent Consideration

We are required to make additional earnout payments of up to $10.0 million upon the achievement of certain operating income levels attributable to RCS over the period commencing on the acquisition date through June 30, 2022. The amount of contingent consideration is calculated at the end of each calendar year and is based on the agreed upon percentage of operating income as defined in the Asset Purchase Agreement ("APA"). Operating income will be calculated using certain revenues, costs and expenses directly attributable to RCS as specified in the APA. At the acquisition date, the value of earnout contingent consideration was estimated using a valuation methodology based on projections of future operating income calculated in accordance with the APA. Such projections were then discounted using an average discount rate of 24.8% to reflect the risk in achieving the projected operating income levels as well as the time value of money. The fair value measurement of the earnout contingent consideration was based primarily on significant inputs not observable in an active market and thus represents a Level 3 measurement as defined under U.S. GAAP. At September 30, 2018, the fair value of earnout consideration attributed to RCS was $2.6 million which is presented within long-term contingent consideration in our consolidated balance sheet.

Purchase Price Allocation

Using the acquisition method of accounting, the acquisition date fair value of the consideration transferred was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired is recorded as goodwill. The goodwill is expected to be deductible for income tax purposes. Management's purchase price allocation was the following:



(In thousands)	Estimated Lives	Fair Value
Accounts receivable		$	429
Inventories		1,508
Prepaid expenses and other current assets		7
Property, plant and equipment	1-4 years	14
Current liabilities		(408		)
Net tangible assets acquired		1,550
Trade name	8 years	400
Customer relationships	10 years	5,000
Order backlog	1 year	150
Goodwill		5,494
Total purchase price		12,594
Less: Contingent consideration		(3,700		)
Cash paid		$	8,894

Management's determination of the fair value of intangible assets acquired was based primarily on significant inputs not observable in an active market and thus represent Level 3 fair value measurements as defined under U.S. GAAP.

The fair value assigned to the RCS trade name intangible asset was determined utilizing a relief from royalty method. The fair value assigned to RCS customer relationships and order backlog intangible assets were determined utilizing a multi-period excess earnings approach.

The trade name, customer relationships and order backlog intangible assets are expected to be deductible for income tax purposes.

Pro Forma Results (Unaudited)

The following unaudited pro forma financial information presents the combined results of our operations and the operations of RCS as if this transaction had occurred on January 1, 2016. This unaudited pro forma financial information is not intended to represent or be indicative of the consolidated results of operations that would have been achieved had the acquisition actually been completed as of January 1, 2016, and should not be taken as a projection of the future consolidated results of our operations.



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2018		2017		2018		2017
Net sales	$	182,717	$	175,652	$	509,938	$	515,200
Net income	959		1,751		23,031		6,292
Basic earnings per share	$	0.07	$	0.12	$	1.65	$	0.44
Diluted earnings per share	$	0.07	$	0.12	$	1.63	$	0.43

For purposes of determining pro forma net income, adjustments were made to the three and nine months ended September 30, 2017. The pro forma net income assumes that amortization of acquired intangible assets began at January 1, 2016 rather than on April 6, 2017. The result is a net increase in amortization expense of $0.1 million for the nine months ended September 30, 2017. Additionally, acquisition costs totaling $0.1 million are excluded from pro forma net income. All adjustments have been made net of their related tax effects.

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
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. 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, 2018 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, 2017.
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, allowances for sales returns and doubtful accounts, inventory valuation, our review for impairment of long-lived assets, intangible assets and goodwill, business combinations, income taxes, stock-based compensation expense and performance-based common stock warrants. Actual results may differ from these estimates and assumptions, and they may be adjusted as more information becomes available. Any adjustment may be material.
Revenue Recognition	We adopted Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," and all related amendments as of January 1, 2018. The impact of this new guidance on our accounting policies and consolidated financial statements is also described below. There have been no other significant changes in our accounting policies during the three and nine months ended September 30, 2018 compared to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2017. Revenue Recognition Our performance obligations primarily arise from manufacturing and delivering universal control, sensing and automation products and AV accessories, which are sold through multiple channels, and intellectual property that is embedded in these products or licensed to others. These performance obligations are satisfied at a point in time or over time, as described below. Payment terms are typically on open credit terms consistent with industry practice and do not have significant financing components. Some contracts contain early payment discounts, which are recognized as a reduction to revenue if the customer typically meets the early payment conditions. Consideration may be variable based on indeterminate volumes. Effective January 1, 2018, revenue is recognized over time when the customer simultaneously receives and consumes the benefits provided by our performance, our performance creates or enhances an asset that the customer controls, or when our performance creates an asset with no alternative use to us (custom products) and we have an enforceable right to payment for performance completed to date, such as a firm order or other contractual commitment from the customer. An asset does not have an alternative use if we are unable to redirect the asset to another customer in the foreseeable future without significant rework. The method for measuring progress towards satisfying a performance obligation for a custom product is based on the costs incurred to date (cost-to-cost method). We believe that the costs associated with production are most closely aligned with the revenue associated with those products. We recognize revenue at a point in time if the criteria for recognizing revenue over time are not met, the title of the goods has transferred, and we have a present right to payment. We typically recognize revenue for the sale of tooling at a point in time, which is generally upon completion of the tooling and, if applicable, acceptance by the customer. A provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded. These estimates are based on historical sales returns and allowances, analysis of credit memo data and other known factors. Actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and claims are significantly greater or lower than the reserves that we have established, we will record a reduction or increase to net revenue in the period in which we make such a determination. We accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers. Accruals for discounts and rebates are recorded as a reduction to sales in the same period as the related revenue. Changes in such accruals may be required if future rebates and incentives differ from our estimates. We license our intellectual property including our patented technologies, trademarks, and database of control codes. When license fees are paid on a per-unit basis, we record license revenue when our customers manufacture or ship a product incorporating our intellectual property and we have a present right to payment. When a fixed up-front license fee is received in exchange for the delivery of a particular database of infrared codes or the contract contains a minimum guarantee provision, we record revenue when delivery of the intellectual property has occurred. Tiered royalties are recorded on a straight-line basis according to the forecasted per-unit fees taking into account the pricing tiers. Contract assets represent revenue which has been recognized based on our accounting policies but for which the customer has not yet been invoiced and thus an account receivable has not yet been recorded. Under prior accounting standards, we recognized revenue on the sale of products when title of the goods had transferred, there was persuasive evidence of an arrangement (such as a purchase order from the customer), the sales price was fixed or determinable and collectability was reasonably assured. Revenue for term license fees were recognized on a straight-line basis over the effective term of the license when we could not reliably predict in which periods, within the term of the license, the licensee would benefit from the use of our patented inventions.
Recent Accounting Pronouncements	In August 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which amends Accounting Standards Codification ("ASC") 230, "Statement of Cash Flows". This new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal periods beginning after December 15, 2017 and must be adopted retrospectively. The adoption of ASU 2016-15 did not have a material impact to the presentation of our consolidated statement of cash flows. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which changes the accounting for income tax consequences of intra-entity transfers of assets other than inventory. Current guidance prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. Under this new guidance, the income tax consequences of an intra-entity transfer of an asset other than inventory will be recognized when the transfer occurs. ASU 2016-16 is effective for fiscal periods beginning after December 15, 2017. The adoption of ASU 2016-16 did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18,"Restricted Cash," which amends ASC 230, "Statement of Cash Flows." This new guidance addresses the classifications and presentation of changes in restricted cash in the statement of cash flows. ASU 2016-18 is effective for fiscal periods beginning after December 15, 2017 and must be adopted retrospectively. The adoption of ASU 2016-18 modified our current disclosures by reclassifying certain amounts within the consolidated statement of cash flows, but did not have a material effect on our consolidated financial statements. Recent Accounting Updates Not Yet Effective In February 2016, the FASB issued ASU 2016-02, "Leases," which changes the accounting for leases and requires expanded disclosures about leasing activities. This new guidance will require lessees to recognize a right of use asset and a lease liability at the commencement date for all leases with terms greater than twelve months. Accounting by lessors is largely unchanged. ASU 2016-02 is effective for fiscal periods beginning after December 15, 2018 and must be adopted using a modified retrospective approach. Early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, which provides an additional transition method when adopting ASU 2016-02. Under the original guidance, the modified retrospective approach provided that ASU 2016-02 be applied at the beginning of the earliest period presented. ASU 2018-11 allows for the application of the new guidance as of the adoption date with a cumulative-effect adjustment to the opening balance of retained earnings. We plan to adopt ASU 2016-02 effective January 1, 2019 using the new transition guidance provided in ASU 2018-11 and are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment." This guidance 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. ASU 2017-04 is effective for fiscal periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2017-04 will have a material impact on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, "Improvements to Non-employee Share-Based Payment Accounting." This guidance expands the scope of Topic 718, "Compensation - Stock Compensation" to include share-based payment transactions for acquiring goods and services from non-employees, but excludes awards granted in conjunction with selling goods or services to a customer as part of a contract accounted for under ASC 606, "Revenue from Contracts with Customers." We are currently evaluating the impact that ASU 2018-07 will have on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Customer’s Accounting for implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract," which amends ASC 350-40, "Intangibles - Goodwill and Other - Internal-Use Software." The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and requires the capitalized implementation costs to be expensed over the term of the hosting arrangement. The accounting for the service element of a hosting arrangement that is a service contract is not affected. Effective for fiscal periods beginning after December 15, 2019, and interim periods within those fiscal years. We are currently evaluating the impact that ASU 2018-07 will have on our consolidated financial statements. On January 1, 2018, we adopted ASU 2014-09 using the modified retrospective transition method. Under this method, we evaluated all contracts that were in effect at the beginning of 2018 as if those contracts had been accounted for under the new revenue standard based on the terms in effect as of the adoption date. Under the modified retrospective transition approach, periods prior to the adoption date were not adjusted and continue to be reported in accordance with historical U.S. GAAP. A cumulative catch-up adjustment was recorded to beginning retained earnings to reflect the impact of all existing arrangements under the new revenue standard.

Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Adjustments Made to the Consolidated Balance Sheets and Impacts of New Revenue Guidance on Financial Statements

The cumulative effects of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09, were as follows:



	As reported		Adjustments due to ASU 2014-09			Balance at
Consolidated Balance Sheet (In thousands)	12/31/2017		Adjustments due to ASU 2014-09			1/1/2018
Contract assets	$	—	$	29,759		$	29,759
Inventories, net	162,589		(23,830		)	138,759
Prepaid expenses and other current assets	11,687		(174		)	11,513
Deferred income tax assets	7,913		(102		)	7,811
Accounts payable and other current liabilities	332,935		1,528			334,463
Deferred income tax liabilities	4,423		20			4,443
Retained earnings	266,780		4,084			270,864



	As of September 30, 2018
Consolidated Balance Sheet (In thousands)	As reported		Without Adoption of ASU 2014-09		Effect of Change
Assets
Contract assets	$	26,257	$	—	$	26,257
Inventories, net	135,888		156,553		(20,665		)
Prepaid expenses and other current assets	15,429		15,419		10
Deferred income taxes	7,371		7,379		(8		)

Liabilities and Equity
Accounts payable and other current liabilities	$	273,347	$	271,734	$	1,613
Retained earnings	293,895		289,914		3,981



	Three Months Ended September 30, 2018
Consolidated Statements of Operations (In thousands)	As reported		Without Adoption of ASU 2014-09		Effect of Change
Net sales	$	182,717	$	184,559	$	(1,842	)
Cost of sales	142,401		144,426		(2,025		)
Selling, general and administrative expenses	29,994		30,029		(35		)
Provision for income taxes	311		355		(44		)
Net income	959		697		262

Earnings per share:
Basic	$	0.07	$	0.05	$	0.02
Diluted	$	0.07	$	0.05	$	0.02



	Nine months ended September 30, 2018
Consolidated Statements of Operations (In thousands)	As reported		Without Adoption of ASU 2014-09		Effect of Change
Net sales	$	509,938	$	512,880	$	(2,942	)
Cost of sales	405,661		408,427		(2,766		)
Selling, general and administrative expenses	90,811		90,866		(55		)
Provision for income taxes	2,233		2,250		(17		)
Net income	23,031		23,134		(103		)

Earnings per share:
Basic	$	1.65	$	1.66	$	(0.01	)
Diluted	$	1.63	$	1.64	$	(0.01	)

Cash and Cash Equivalents and Restricted Cash (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018		December 31, 2017
United States	$	3,694	$	10,489
People's Republic of China ("PRC")	20,024		23,283
Asia (excluding the PRC)	1,350		1,405
Europe	7,976		18,071
South America	8,951		9,190
Total cash and cash equivalents	$	41,995	$	62,438

Accounts Receivable, Net and Revenue Concentrations (Tables)

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Accounts Receivable, Net and Allowance for Doubtful Accounts

Changes in the allowance for doubtful accounts were as follows:



(In thousands)	Nine Months Ended September 30,
(In thousands)	2018			2017
Balance at beginning of period	$	1,064		$	904
Additions to costs and expenses	2			167
(Write-offs)/Foreign exchange effects	(74		)	(19		)
Balance at end of period	$	992		$	1,052

Accounts receivable, net were as follows:



(In thousands)	September 30, 2018			December 31, 2017
Trade receivables, gross	$	145,823		$	142,299
Allowance for doubtful accounts	(992		)	(1,064		)
Allowance for sales returns	(588		)	(562		)
Net trade receivables	144,243			140,673
Other	7,642			10,905
Accounts receivable, net	$	151,885		$	151,578

Net Sales to Significant Customers

Net sales to the following customers totaled more than 10% of our net sales:



	Three Months Ended September 30,
	2018				2017
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales
Comcast Corporation	$	32,336	17.7	%	$	36,811	21.0	%
AT&T ⁽¹⁾	$	—	—	%	$	20,117	11.5	%



	Nine Months Ended September 30,
	2018				2017
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales
Comcast Corporation	$	99,853	19.6	%	$	122,009	23.7	%
AT&T ⁽¹⁾	$	—	—	%	$	61,057	11.9	%


⁽¹⁾	Sales associated with this customer did not total more than 10% of our net sales for the indicated period.

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, 2018				December 31, 2017
	$ (thousands)		% of Accounts Receivable, Net		$ (thousands)		% of Accounts Receivable, Net
Comcast Corporation	$	20,084	13.2	%	$	25,142	16.6	%

Inventories, Net and Significant Suppliers (Tables)

9 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

Inventories, Net

Inventories, net were as follows:



(In thousands)	September 30, 2018			December 31, 2017
Raw materials	$	62,835		$	43,638
Components	13,763			16,214
Work in process	8,378			1,847
Finished goods	58,195			105,178
Reserve for excess and obsolete inventory	(7,283		)	(4,288		)
Inventories, net	$	135,888		$	162,589

Changes in Reserve for Excess and Obsolete Inventory

Changes in the reserve for excess and obsolete inventory were as follows:



(In thousands)	Nine Months Ended September 30,
(In thousands)	2018			2017
Balance at beginning of period	$	4,288		$	4,205
Additions charged to costs and expenses ⁽¹⁾	5,353			1,960
Sell through ⁽²⁾	(1,240		)	(950		)
(Write-offs)/Foreign exchange effects	(1,118		)	(2,090		)
Balance at end of period	$	7,283		$	3,125


⁽¹⁾	The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $1.1 million and $0.2 million for the nine months ended September 30, 2018 and 2017, respectively. These amounts are production waste and are not included in management's reserve for excess and obsolete inventory.


⁽²⁾	These amounts represent the reduction in reserves associated with inventory items that were sold during the period.

Purchases from Significant Suppliers

Purchases from the following supplier totaled more than 10% of our total inventory purchases:



	Three Months Ended September 30,
	2018				2017
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Texas Instruments ⁽¹⁾	$	—	—	%	$	13,115	12.4	%



	Nine Months Ended September 30,
	2018				2017
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Texas Instruments ⁽¹⁾	$	—	—	%	$	33,693	11.3	%


⁽¹⁾	Purchases associated with this supplier did not total more than 10% of our total inventory purchases for the indicated period.

Goodwill and Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2018

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, 2017	$	48,651
Foreign exchange effects	(142		)
Balance at September 30, 2018	$	48,509

Components of Intangible Assets, Net

The components of intangible assets, net were as follows:



	September 30, 2018							December 31, 2017
(In thousands)	Gross ⁽¹⁾		Accumulated Amortization ⁽¹⁾			Net		Gross ⁽¹⁾		Accumulated Amortization ⁽¹⁾			Net
Distribution rights	$	333	$	(182	)	$	151	$	344	$	(165	)	$	179
Patents	14,194		(5,502		)	8,692		13,250		(5,310		)	7,940
Trademarks and trade names	2,786		(1,823		)	963		2,786		(1,594		)	1,192
Developed and core technology	12,560		(7,583		)	4,977		12,560		(6,071		)	6,489
Capitalized software development costs	249		(131		)	118		142		(77		)	65
Customer relationships	32,534		(21,855		)	10,679		32,534		(19,395		)	13,139
Order backlog	—		—			—		150		(113		)	37
Total intangible assets, net	$	62,656	$	(37,076	)	$	25,580	$	61,766	$	(32,725	)	$	29,041


⁽¹⁾	This table excludes the gross value of fully amortized intangible assets totaling $6.8 million and $6.0 million at September 30, 2018 and December 31, 2017, respectively.

Amortization Expense by Income Statement Caption

Amortization expense by income statement caption was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2018		2017		2018		2017
Cost of sales	$	18	$	54	$	91	$	128
Selling, general and administrative expenses	1,770		1,715		5,275		5,032
Total amortization expense	$	1,788	$	1,769	$	5,366	$	5,160

Estimated Future Amortization Expense Related to Intangible Assets

Estimated future annual amortization expense related to our intangible assets at September 30, 2018, was as follows:



(In thousands)
2018 (remaining 3 months)	$	1,778
2019	7,018
2020	5,883
2021	2,325
2022	2,216
Thereafter	6,360
Total	$	25,580

Accrued Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Components of Accrued Compensation

The components of accrued compensation were as follows:



(In thousands)	September 30, 2018		December 31, 2017
Accrued social insurance ⁽¹⁾	$	17,216	$	17,727
Accrued salary/wages	8,309		7,910
Accrued vacation/holiday	2,830		2,769
Accrued bonus ⁽²⁾	1,724		2,329
Accrued commission	935		1,089
Other accrued compensation	1,206		2,675
Total accrued compensation	$	32,220	$	34,499

⁽¹⁾

⁽²⁾

The components of other accrued liabilities were as follows:



(In thousands)	September 30, 2018		December 31, 2017
Deposit for sale of Guangzhou factory	$	—	$	4,901
Duties	1,039		1,184
Freight and handling fees	2,757		1,983
Professional fees	1,488		1,578
Property, plant and equipment	366		2,151
Sales taxes and VAT	998		2,955
Short-term contingent consideration	3,730		3,800
Tooling ⁽¹⁾	2,171		1,843
Other	7,350		8,324
Total other accrued liabilities	$	19,899	$	28,719


⁽¹⁾	The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers.

Other Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Components of Other Accrued Liabilities

The components of accrued compensation were as follows:



(In thousands)	September 30, 2018		December 31, 2017
Accrued social insurance ⁽¹⁾	$	17,216	$	17,727
Accrued salary/wages	8,309		7,910
Accrued vacation/holiday	2,830		2,769
Accrued bonus ⁽²⁾	1,724		2,329
Accrued commission	935		1,089
Other accrued compensation	1,206		2,675
Total accrued compensation	$	32,220	$	34,499

⁽¹⁾

⁽²⁾

The components of other accrued liabilities were as follows:



(In thousands)	September 30, 2018		December 31, 2017
Deposit for sale of Guangzhou factory	$	—	$	4,901
Duties	1,039		1,184
Freight and handling fees	2,757		1,983
Professional fees	1,488		1,578
Property, plant and equipment	366		2,151
Sales taxes and VAT	998		2,955
Short-term contingent consideration	3,730		3,800
Tooling ⁽¹⁾	2,171		1,843
Other	7,350		8,324
Total other accrued liabilities	$	19,899	$	28,719


⁽¹⁾	The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers.

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Changes in the Liability for Product Warranty Claim Costs

Changes in the liability for product warranty claim costs were as follows:



(In thousands)	Nine Months Ended September 30,
(In thousands)	2018			2017
Balance at beginning of period	$	339		$	134
Accruals for warranties issued during the period	787			169
Settlements (in cash or in kind) during the period	(850		)	(85		)
Balance at end of period	$	276		$	218

Treasury Stock (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Repurchased Shares of Common Stock

Repurchased shares of our common stock were as follows:



	Nine Months Ended September 30,
(In thousands)	2018		2017
Shares repurchased	374		330
Cost of shares repurchased	$	12,564	$	20,217

Foreign Operations (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Net Sales to External Customers by Geographic Area

Our net sales to external customers by geographic area were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2018		2017		2018		2017
United States	$	84,756	$	85,762	$	243,801	$	253,259
Asia (excluding PRC)	36,888		26,113		91,755		77,679
People's Republic of China	28,108		23,437		68,852		61,015
Europe	18,785		18,877		58,245		56,041
Latin America	6,411		13,567		23,077		44,593
Other	7,769		7,896		24,208		22,051
Total net sales	$	182,717	$	175,652	$	509,938	$	514,638

Long-Lived Tangible Assets by Geographic Area

Long-lived tangible assets by geographic area were as follows:



(In thousands)	September 30, 2018		December 31, 2017
United States	$	14,765	$	14,674
People's Republic of China	85,808		96,984
All other countries	4,787		3,870
Total long-lived tangible assets	$	105,360	$	115,528

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [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)	2018		2017		2018		2017
Cost of sales	$	21	$	19	$	61	$	53
Research and development expenses	200		149		556		412
Selling, general and administrative expenses:
Employees	1,671		1,843		4,936		5,562
Outside directors	247		1,910		1,255		3,449
Total employee and director stock-based compensation expense	$	2,139	$	3,921	$	6,808	$	9,476

Income tax benefit	$	441	$	603	$	1,423	$	2,307

Stock Option Activity

Stock option activity was as follows:



	Number of Options (in 000's)		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in 000's)
Outstanding at December 31, 2017	520		$	42.56
Granted	119		44.95
Exercised	(35	)	24.67			$	744
Forfeited/canceled/expired	(7	)	27.74
Outstanding at September 30, 2018 ⁽¹⁾	597		$	44.27	4.34	$	2,972
Vested and expected to vest at September 30, 2018⁽¹⁾	597		$	44.27	4.34	$	2,972
Exercisable at September 30, 2018 ⁽¹⁾	414		$	41.74	3.64	$	2,972

⁽¹⁾

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,
	2018			2017			2018			2017
Weighted average fair value of grants	$	—		$	—		$	14.26		$	19.61
Risk-free interest rate	—		%	—		%	2.51		%	1.75		%
Expected volatility	—		%	—		%	33.09		%	34.25		%
Expected life in years	0.00			0.00			4.53			4.52

Non-Vested Restricted Stock Award Activity

Non-vested restricted stock award activity was as follows:



	Shares (in 000's)		Weighted-Average Grant Date Fair Value
Non-vested at December 31, 2017	162		$	61.19
Granted	167		42.65
Vested	(75	)	60.02
Forfeited	(11	)	55.94
Non-vested at September 30, 2018	243		$	49.03

Performance-Based Common Stock Warrants (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Purchase Level and Number of Warrants That Will Vest

The table below presents the purchase levels and number of warrants that will vest in each period based upon achieving these purchase levels.



	Incremental Warrants That Will 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 weighted average fair value of the warrants were the following:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018	2017
Fair value	$10.06	$24.17	$10.06	$24.17
Price of Universal Electronics Inc. common stock	$38.95	$62.10	$38.95	$62.10
Risk-free interest rate	2.92%	1.93%	2.92%	1.93%
Expected volatility	41.00%	34.41%	41.00%	34.41%
Expected life in years	4.25	5.26	4.25	5.26

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)	2018		2017			2018		2017
Reduction/(increase) to net sales	$	404	$	(141	)	$	747	$	1,122
Income tax benefit/(expense)	100		(53		)	186		418

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Other Income (Expense), Net (Tables)

9 Months Ended

Sep. 30, 2018

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)	2018			2017			2018			2017
Net gain (loss) on foreign currency exchange contracts ⁽¹⁾	$	69		$	(1,488	)	$	603		$	(2,852	)
Net gain (loss) on foreign currency exchange transactions	(2,377		)	1,176			(4,617		)	2,512
Other income	26			373			63			342
Other income (expense), net	$	(2,282	)	$	61		$	(3,951	)	$	2


⁽¹⁾	This represents the gains (losses) incurred on foreign currency hedging derivatives (see Note 17 for further details).

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Calculation of Earnings Per Share

Earnings per share was calculated as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2018		2017		2018		2017
BASIC
Net income	$	959	$	1,728	$	23,031	$	6,531
Weighted-average common shares outstanding	13,836		14,381		13,997		14,412
Basic earnings per share	$	0.07	$	0.12	$	1.65	$	0.45

DILUTED
Net income	$	959	$	1,728	$	23,031	$	6,531
Weighted-average common shares outstanding for basic	13,836		14,381		13,997		14,412
Dilutive effect of stock options, restricted stock and common stock warrants	123		285		119		277
Weighted-average common shares outstanding on a diluted basis	13,959		14,666		14,116		14,689
Diluted earnings per share	$	0.07	$	0.12	$	1.63	$	0.44

Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share



	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2018	2017	2018	2017
Stock options	382	165	365	153
Restricted stock awards	59	30	134	30
Performance-based warrants	175	—	175	—

Derivatives (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018								December 31, 2017
	Fair Value Measurement Using						Total Balance		Fair Value Measurement Using							Total Balance
(In thousands)	Level 1		Level 2		Level 3		Total Balance		Level 1		Level 2			Level 3		Total Balance
Foreign currency exchange contracts	$	—	$	147	$	—	$	147	$	—	$	(565	)	$	—	$	(565	)

Foreign Currency Exchange Contracts

Details of foreign currency exchange contracts held were as follows:



Date Held	Currency	Position Held	Notional Value (in millions)		Forward Rate	Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands)⁽¹⁾			Settlement Date
September 30, 2018	USD/Euro	USD	$	18.0	1.1773	$	216		October 26, 2018
September 30, 2018	USD/Chinese Yuan Renminbi	USD	$	35.0	6.8963	$	(56	)	October 26, 2018
September 30, 2018	USD/Brazilian Real	USD	$	1.0	4.1032	$	(13	)	October 26, 2018

December 31, 2017	USD/Euro	USD	$	17.0	1.1858	$	(220	)	January 5, 2018
December 31, 2017	USD/Chinese Yuan Renminbi	Chinese Yuan Renminbi	$	20.0	6.6481	$	(410	)	January 5, 2018
December 31, 2017	USD/Brazilian Real	USD	$	2.5	3.2350	$	65		January 24, 2018


⁽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.

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details

Business Combination (Tables)

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Purchase Price Allocation

Management's purchase price allocation was the following:



(In thousands)	Estimated Lives	Fair Value
Accounts receivable		$	429
Inventories		1,508
Prepaid expenses and other current assets		7
Property, plant and equipment	1-4 years	14
Current liabilities		(408		)
Net tangible assets acquired		1,550
Trade name	8 years	400
Customer relationships	10 years	5,000
Order backlog	1 year	150
Goodwill		5,494
Total purchase price		12,594
Less: Contingent consideration		(3,700		)
Cash paid		$	8,894

Pro Forma Financial Information



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2018		2017		2018		2017
Net sales	$	182,717	$	175,652	$	509,938	$	515,200
Net income	959		1,751		23,031		6,292
Basic earnings per share	$	0.07	$	0.12	$	1.65	$	0.44
Diluted earnings per share	$	0.07	$	0.12	$	1.63	$	0.43

Basis of Presentation and Significant Accounting Policies - Adjustments Made to the Consolidated Balance Sheet Following Adoption (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Contract assets	$ 26,257	$ 29,759	$ 0
Inventories, net	135,888	138,759	162,589
Prepaid expenses and other current assets	15,429	11,513	11,687
Deferred income tax assets	7,371	7,811	7,913
Liabilities and Equity
Accounts payable and other current liabilities	273,347	334,463	332,935
Deferred income tax liabilities	1,189	4,443	4,423
Retained earnings	293,895	270,864	266,780
As reported
Assets
Contract assets	0		0
Inventories, net	156,553		162,589
Prepaid expenses and other current assets	15,419		11,687
Deferred income tax assets	7,379		7,913
Liabilities and Equity
Accounts payable and other current liabilities	271,734		332,935
Deferred income tax liabilities			4,423
Retained earnings	289,914		$ 266,780
ASU 2014-09 \| Adjustments due to ASU 2014-09
Assets
Contract assets	26,257	29,759
Inventories, net	(20,665)	(23,830)
Prepaid expenses and other current assets	10	(174)
Deferred income tax assets	(8)	(102)
Liabilities and Equity
Accounts payable and other current liabilities	1,613	1,528
Deferred income tax liabilities		20
Retained earnings	$ 3,981	$ 4,084

Basis of Presentation and Significant Accounting Policies - Condensed Balance Sheet, Pro Forma Amounts Under Previous Guidance (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Contract assets	$ 26,257	$ 29,759	$ 0
Inventories, net	135,888	138,759	162,589
Prepaid expenses and other current assets	15,429	11,513	11,687
Deferred income taxes	7,371	7,811	7,913
Liabilities and Equity
Accounts payable and other current liabilities	273,347	334,463	332,935
Retained earnings	293,895	270,864	266,780
Without Adoption of ASU 2014-09
Assets
Contract assets	0		0
Inventories, net	156,553		162,589
Prepaid expenses and other current assets	15,419		11,687
Deferred income taxes	7,379		7,913
Liabilities and Equity
Accounts payable and other current liabilities	271,734		332,935
Retained earnings	289,914		$ 266,780
Effect of Change \| ASU 2014-09
Assets
Contract assets	26,257	29,759
Inventories, net	(20,665)	(23,830)
Prepaid expenses and other current assets	10	(174)
Deferred income taxes	(8)	(102)
Liabilities and Equity
Accounts payable and other current liabilities	1,613	1,528
Retained earnings	$ 3,981	$ 4,084

Basis of Presentation and Significant Accounting Policies - Condensed Statements of Operations, Pro Forma Amounts Under Previous Guidance (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	$ 182,717	$ 175,652	$ 509,938	$ 514,638
Cost of sales	142,401	132,582	405,661	386,783
Selling, general and administrative expenses	29,994	32,997	90,811	94,701
Provision for income taxes	311	1,824	2,233	2,945
Net income	$ 959	$ 1,728	$ 23,031	$ 6,531
Earnings per share:
Basic (in dollars per share)	$ 0.07	$ 0.12	$ 1.65	$ 0.45
Diluted (in dollars per share)	$ 0.07	$ 0.12	$ 1.63	$ 0.44
Without Adoption of ASU 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	$ 184,559		$ 512,880
Cost of sales	144,426		408,427
Selling, general and administrative expenses	30,029		90,866
Provision for income taxes	355		2,250
Net income	$ 697		$ 23,134
Earnings per share:
Basic (in dollars per share)	$ 0.05		$ 1.66
Diluted (in dollars per share)	$ 0.05		$ 1.64
Effect of Change \| ASU 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	$ (1,842)		$ (2,942)
Cost of sales	(2,025)		(2,766)
Selling, general and administrative expenses	(35)		(55)
Provision for income taxes	(44)		(17)
Net income	$ 262		$ (103)
Earnings per share:
Basic (in dollars per share)	$ 0.02		$ (0.01)
Diluted (in dollars per share)	$ 0.02		$ (0.01)

Cash and Cash Equivalents and Restricted Cash - Cash and Cash Equivalents by Geographic Region (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 41,995	$ 62,438
United States
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	3,694	10,489
People's Republic of China (PRC)
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	20,024	23,283
Asia (excluding the PRC)
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	1,350	1,405
Europe
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	7,976	18,071
South America
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 8,951	$ 9,190

Cash and Cash Equivalents and Restricted Cash - Restricted Cash (Details) - Sep. 29, 2016 ¥ in Millions, $ in Millions	USD ($)	CNY (¥)
Guangzhou Factory \| Disposed of by Sale
Restricted Cash and Cash Equivalents Items [Line Items]
Cash deposit	$ 5.1	¥ 32

Accounts Receivable, Net and Revenue Concentrations - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Accounts Receivable, Net, Current [Abstract]
Trade receivables, gross	$ 145,823	$ 142,299
Allowance for doubtful accounts	(992)	(1,064)	$ (1,052)	$ (904)
Allowance for sales returns	(588)	(562)
Net trade receivables	144,243	140,673
Other	7,642	10,905
Accounts receivable, net	$ 151,885	$ 151,578

Accounts Receivable, Net and Revenue Concentrations - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Schedule of Allowance for Doubtful Accounts
Balance at beginning of period	$ 1,064	$ 904
Additions to costs and expenses	2	167
(Write-offs)/Foreign exchange effects	(74)	(19)
Balance at end of period	$ 992	$ 1,052

Accounts Receivable, Net and Revenue Concentrations - Net Sales to Significant Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue, Major Customer [Line Items]
Net sales	$ 182,717	$ 175,652	$ 509,938	$ 514,638
Net Sales \| Comcast Corporation
Revenue, Major Customer [Line Items]
Net sales	$ 32,336	$ 36,811	$ 99,853	$ 122,009
Percent of net sales	17.70%	21.00%	19.60%	23.70%
Net Sales \| AT&T
Revenue, Major Customer [Line Items]
Net sales	$ 0	$ 20,117	$ 0	$ 61,057
Percent of net sales	0.00%	11.50%	0.00%	11.90%

Accounts Receivable, Net and Revenue Concentrations - Trade Receivables Associated with Significant Customers (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 151,885	$ 151,578
Accounts Receivable, Net \| Comcast Corporation
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 20,084	$ 25,142
Percent of accounts receivable, net	13.20%	16.60%

Inventories, Net and Significant Suppliers - Inventories, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 62,835		$ 43,638
Components	13,763		16,214
Work in process	8,378		1,847
Finished goods	58,195		105,178
Reserve for excess and obsolete inventory	(7,283)		(4,288)	$ (3,125)	$ (4,205)
Inventories, net	$ 135,888	$ 138,759	$ 162,589

Inventories, Net and Significant Suppliers - Changes in Reserve for Excess and Obsolete Inventory (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Schedule of Reserve for Excess and Obsolete Inventory [Rollforward]
Balance at beginning of period	$ 4,288	$ 4,205
Additions charged to costs and expenses	5,353	1,960
Sell through	(1,240)	(950)
(Write-offs)/Foreign exchange effects	(1,118)	(2,090)
Balance at end of period	7,283	3,125
Inventory written-off and scrapped during production	$ 1,100	$ 200

Inventories, Net and Significant Suppliers - Purchases from Significant Suppliers (Details) - Texas Instruments - Supplier Concentration Risk - Inventory Purchases - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Concentration Risk [Line Items]
Purchases from significant supplier	$ 0	$ 13,115	$ 0	$ 33,693
Percent of total inventory purchases	0.00%	12.40%	0.00%	11.30%

Inventories, Net and Significant Suppliers - Related Party Supplier (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Executive Vice President
Related Party Transaction [Line Items]
Ownership percentage in third party by executive		40.00%
Related Party Supplier \| Supplier Concentration Risk \| Inventory Purchases
Related Party Transaction [Line Items]
Inventory purchases	$ 1.4	$ 1.1	$ 4.0

Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Goodwill [Roll Forward]
Balance	$ 48,651
Foreign exchange effects	(142)
Balance	$ 48,509

Goodwill and Intangible Assets, Net - Components of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 62,656	$ 61,766
Accumulated Amortization	(37,076)	(32,725)
Net	25,580	29,041
Gross value of fully amortized intangible assets	6,800	6,000
Distribution rights
Finite-Lived Intangible Assets, Net [Abstract]
Gross	333	344
Accumulated Amortization	(182)	(165)
Net	151	179
Patents
Finite-Lived Intangible Assets, Net [Abstract]
Gross	14,194	13,250
Accumulated Amortization	(5,502)	(5,310)
Net	8,692	7,940
Trademarks and trade names
Finite-Lived Intangible Assets, Net [Abstract]
Gross	2,786	2,786
Accumulated Amortization	(1,823)	(1,594)
Net	963	1,192
Developed and core technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross	12,560	12,560
Accumulated Amortization	(7,583)	(6,071)
Net	4,977	6,489
Capitalized software development costs
Finite-Lived Intangible Assets, Net [Abstract]
Gross	249	142
Accumulated Amortization	(131)	(77)
Net	118	65
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Gross	32,534	32,534
Accumulated Amortization	(21,855)	(19,395)
Net	10,679	13,139
Order backlog
Finite-Lived Intangible Assets, Net [Abstract]
Gross	0	150
Accumulated Amortization	0	(113)
Net	$ 0	$ 37

Goodwill and Intangible Assets, Net - Amortization Expense by Income Statement Caption (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 1,788	$ 1,769	$ 5,366	$ 5,160
Cost of sales
Finite-Lived Intangible Assets [Line Items]
Amortization expense	18	54	91	128
Selling, general and administrative expenses
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 1,770	$ 1,715	$ 5,275	$ 5,032

Goodwill and Intangible Assets, Net - Estimated Future Annual Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Estimated Future Amortization expense
2018 (remaining 3 months)	$ 1,778
2019	7,018
2020	5,883
2021	2,325
2022	2,216
Thereafter	6,360
Net	$ 25,580	$ 29,041

Line of Credit (Details) - USD ($)	3 Months Ended		9 Months Ended
Line of Credit (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Line of Credit Facility [Line Items]
Amount outstanding under line of credit	$ 103,500,000		$ 103,500,000		$ 138,000,000
Interest expense on borrowings	$ 1,200,000	$ 800,000	$ 3,700,000	$ 1,800,000
Line of Credit \| US Bank
Line of Credit Facility [Line Items]
Effective interest rate	3.97%		3.97%
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	$ 170,000,000		$ 170,000,000
Commitment fees			0
Letter of Credit
Line of Credit Facility [Line Items]
Letter of credit outstanding amount	$ 0		$ 0

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense	$ 311	$ 1,824	$ 2,233	$ 2,945
Effective tax rate	24.50%	51.40%	8.80%	31.10%
Unrecognized tax benefits	$ 4,600		$ 4,600
Unrecognized tax benefits that would impact effective rate	4,300		4,300
Accrued interest and penalties	$ 600		$ 600		$ 500

Accrued Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Components of Accrued Compensation
Accrued social insurance	$ 17,216	$ 17,727
Accrued salary/wages	8,309	7,910
Accrued vacation/holiday	2,830	2,769
Accrued bonus	1,724	2,329
Accrued commission	935	1,089
Other accrued compensation	1,206	2,675
Total accrued compensation	32,220	34,499
Salaries accrued for thirteenth month	$ 100	$ 700

Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Deposit for sale of Guangzhou factory	$ 0	$ 4,901
Duties	1,039	1,184
Freight and handling fees	2,757	1,983
Professional fees	1,488	1,578
Property, plant and equipment	366	2,151
Sales taxes and VAT	998	2,955
Short-term contingent consideration	3,730	3,800
Tooling	2,171	1,843
Other	7,350	8,324
Total other accrued liabilities	$ 19,899	$ 28,719

Commitments and Contingencies - Changes in the Liability for Product Warranty Claim Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Schedule of Changes in Reserve for Product Warranty Claim Costs
Balance at beginning of period	$ 339	$ 134
Accruals for warranties issued during the period	787	169
Settlements (in cash or in kind) during the period	(850)	(85)
Balance at end of period	$ 276	$ 218

Commitments and Contingencies - Restructuring Activities and Sale of Guangzhou Factory (Details) $ in Thousands, ¥ in Millions		3 Months Ended		9 Months Ended
	Jun. 26, 2018 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Apr. 26, 2018 USD ($)	Apr. 26, 2018 CNY (¥)	Apr. 23, 2018 USD ($)	Apr. 23, 2018 CNY (¥)	Sep. 26, 2016 CNY (¥)
Restructuring Cost and Reserve [Line Items]
Factory transition restructuring charges		$ 0	$ 446	$ 0	$ 6,145
Nonrefundable deposit						$ 5,100	¥ 34
Consideration receivable upon government approvals						35,800	237
Escrow deposit						$ 10,300	¥ 68
Gain on sale of Guangzhou factory	$ 37,000	$ 0	0	$ 36,978	0
Net gain on disposal	$ 32,100
Guangzhou Factory \| Disposed of by Sale
Restructuring Cost and Reserve [Line Items]
Consideration received in sale								$ 51,400	¥ 339	¥ 320
Escrow deposit as percentage of purchase price										10.00%
Employee Severance \| Manufacturing Activities Transition \| Selling, General and Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Factory transition restructuring charges			$ 400		$ 6,100

Commitments and Contingencies - Litigation (Details) - Pending Litigation			1 Months Ended
	Sep. 05, 2018 patent	Jun. 10, 2015 product subsidiary patent customer	Sep. 30, 2015 patent
UEBV Lawsuit
Contingencies [Line Items]
Number of subsidiaries named in lawsuit \| subsidiary		1
Number of customers named in lawsuit \| customer		1
UEBV Lawsuit \| Design Patents
Contingencies [Line Items]
Number of products named in lawsuit \| product		1
Number of patents allegedly infringed upon		2
UEBV Lawsuit \| Utility Patents
Contingencies [Line Items]
Number of patents allegedly infringed upon		1	1
Roku Lawsuit \| Utility Patents
Contingencies [Line Items]
Number of patents allegedly infringed upon	9

Treasury Stock - Narrative (Details) - USD ($)	Oct. 30, 2018	Sep. 30, 2018	Jul. 26, 2018
Equity, Class of Treasury Stock [Line Items]
Share value available for repurchase		$ 3,300,000
Share Repurchase Plan - Authorized July 26, 2018
Equity, Class of Treasury Stock [Line Items]
Open market share value authorized for repurchase			$ 5,000,000.0
Share Repurchase Plan - Authorized October 30, 2018 \| Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Open market share value authorized for repurchase	$ 5,000,000.0

Treasury Stock - Repurchased Shares of Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Equity [Abstract]
Shares repurchased (in shares)	374	330
Cost of shares repurchased	$ 12,564	$ 20,217

Foreign Operations - Net Sales to External Customers by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Schedule of Revenues from Geographical Segments [Line Items]
Net sales	$ 182,717	$ 175,652	$ 509,938	$ 514,638
United States
Schedule of Revenues from Geographical Segments [Line Items]
Net sales	84,756	85,762	243,801	253,259
Asia (excluding the PRC)
Schedule of Revenues from Geographical Segments [Line Items]
Net sales	36,888	26,113	91,755	77,679
People's Republic of China (PRC)
Schedule of Revenues from Geographical Segments [Line Items]
Net sales	28,108	23,437	68,852	61,015
Europe
Schedule of Revenues from Geographical Segments [Line Items]
Net sales	18,785	18,877	58,245	56,041
Latin America
Schedule of Revenues from Geographical Segments [Line Items]
Net sales	6,411	13,567	23,077	44,593
Other
Schedule of Revenues from Geographical Segments [Line Items]
Net sales	$ 7,769	$ 7,896	$ 24,208	$ 22,051

Foreign Operations - Long-Lived Tangible Assets by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	$ 105,360	$ 115,528
United States
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	14,765	14,674
People's Republic of China (PRC)
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	85,808	96,984
All other countries
Long-lived Assets from External Customers and Long-Lived Assets [Line Items]
Long-lived tangible assets	$ 4,787	$ 3,870

Stock-Based Compensation - Stock-based Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	$ 2,139	$ 3,921	$ 6,808	$ 9,476
Income tax benefit	441	603	1,423	2,307
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	21	19	61	53
Research and development expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Employee and director stock-based compensation expense	200	149	556	412
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	1,671	1,843	4,936	5,562
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	$ 247	$ 1,910	$ 1,255	$ 3,449

Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($) $ / shares shares
Number of Options
Outstanding at beginning of period (in shares) \| shares	520
Granted (in shares) \| shares	119
Exercised (in shares) \| shares	(35)
Forfeited/canceled/expired (in shares) \| shares	(7)
Outstanding at end of period (in shares) \| shares	597
Vested and expected to vest at end of period (in shares) \| shares	597
Exercisable at end of period (in shares) \| shares	414
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 42.56
Granted (in dollars per share) \| $ / shares	44.95
Exercised (in dollars per share) \| $ / shares	24.67
Forfeited/canceled/expired (in dollars per share) \| $ / shares	27.74
Outstanding at end of period (in dollars per share) \| $ / shares	44.27
Vested and expected to vest at end of period (in dollars per share) \| $ / shares	44.27
Exercisable at end of period (in dollars per share) \| $ / shares	$ 41.74
Weighted-Average Remaining Contractual Term (in years)
Outstanding at end of period	4 years 4 months 2 days
Vested and expected to vest at end of period	4 years 4 months 2 days
Exercisable at end of period	3 years 7 months 21 days
Aggregate Intrinsic Value
Exercised \| $	$ 744
Outstanding at end of period \| $	2,972
Vested and expected to vest at end of period \| $	2,972
Exercisable at end of period \| $	$ 2,972

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, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average fair value of grants (in dollars per share)	$ 0.00	$ 0.00	$ 14.26	$ 19.61
Risk-free interest rate	0.00%	0.00%	2.51%	1.75%
Expected volatility	0.00%	0.00%	33.09%	34.25%
Expected life	0 years	0 years	4 years 6 months 11 days	4 years 6 months 7 days

Stock-Based Compensation - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($)
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax stock-based compensation expense	$ 2.3
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	$ 8.8
Unrecognized pre-tax stock-based compensation expense, remaining weighted-average life	1 year 9 months 18 days

Stock-Based Compensation - Non-Vested Restricted Stock Award Activity (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2018 $ / shares shares
Shares
Non-vested at beginning of period (in shares) \| shares	162
Granted (in shares) \| shares	167
Vested (in shares) \| shares	(75)
Forfeited (in shares) \| shares	(11)
Non-vested at end of period (in shares) \| shares	243
Weighted-Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share) \| $ / shares	$ 61.19
Granted (in dollars per share) \| $ / shares	42.65
Vested (in dollars per share) \| $ / shares	60.02
Forfeited (in dollars per share) \| $ / shares	55.94
Non-vested at end of period (in dollars per share) \| $ / shares	$ 49.03

Performance-Based Common Stock Warrants - Narrative (Details) - Common Stock Purchase Warrants		9 Months Ended
	Mar. 09, 2016 USD ($) vesting_period $ / shares shares	Sep. 30, 2018 USD ($) shares
Class of Warrant or Right [Line Items]
Number of shares called by warrants (in shares) \| shares	725,000	475,000
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
Vesting period one	2 years
Vested warrants outstanding (in shares) \| shares		175,000
Total vesting period		4 years
Number of warrants vested (in shares) \| shares		0
Unrecognized estimated fair value of unvested warrants		$ 4,000,000
Supply Threshold
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		$ 680,000,000

Performance-Based Common Stock Warrants - Purchase Level and Number of Warrants to Vest (Details) - Common Stock Purchase Warrants - Supply Threshold	Mar. 09, 2016 USD ($) 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 Stock Warrants - Assumptions Used in Valuation and Weighted Average Fair Value of Warrants (Details) - Common Stock Purchase Warrants	Sep. 30, 2018 $ / shares	Sep. 30, 2017 $ / shares
Class of Warrant or Right [Line Items]
Fair value (in dollars per share)	$ 10.06	$ 24.17
Price of Universal Electronics Inc. common stock (in dollars per share)	$ 38.95	$ 62.10
Risk-free interest rate
Class of Warrant or Right [Line Items]
Valuation assumption rate	0.0292	0.0193
Expected volatility
Class of Warrant or Right [Line Items]
Valuation assumption rate	0.4100	0.3441
Expected life
Class of Warrant or Right [Line Items]
Expected life	4 years 3 months	5 years 3 months 4 days

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, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Class of Warrant or Right [Line Items]
Reduction/(increase) to net sales	$ 404	$ (141)	$ 747	$ 1,122
Income tax benefit/(expense)	$ 100	$ (53)	$ 186	$ 418

Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Income and Expenses [Abstract]
Net gain (loss) on foreign currency exchange contracts	$ 69	$ (1,488)	$ 603	$ (2,852)
Net gain (loss) on foreign currency exchange transactions	(2,377)	1,176	(4,617)	2,512
Other income	26	373	63	342
Other income (expense), net	$ (2,282)	$ 61	$ (3,951)	$ 2

Earnings 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, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
BASIC
Net income	$ 959	$ 1,728	$ 23,031	$ 6,531
Weighted-average common shares outstanding (in shares)	13,836	14,381	13,997	14,412
Basic earnings per share (in dollars per share)	$ 0.07	$ 0.12	$ 1.65	$ 0.45
DILUTED
Net income	$ 959	$ 1,728	$ 23,031	$ 6,531
Weighted-average common shares outstanding (in shares)	13,836	14,381	13,997	14,412
Dilutive effect of stock options, restricted stock and common stock warrants (in shares)	123	285	119	277
Weighted-average common shares outstanding on a diluted basis (in shares)	13,959	14,666	14,116	14,689
Diluted earnings per share (in dollars per share)	$ 0.07	$ 0.12	$ 1.63	$ 0.44

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings 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, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded in computation of diluted earning per share (in shares)	382	165	365	153
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)	59	30	134	30
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)	175	0	175	0

Derivatives - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Derivatives - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivative Instruments,Gain (Loss) [Line Items]
Net gain (loss) on foreign currency exchange contracts	$ 69	$ (1,488)	$ 603	$ (2,852)
Not Designated as Hedging Instrument \| Foreign Currency Exchange Contracts \| Other Income (Expense), Net
Derivative Instruments,Gain (Loss) [Line Items]
Net gain (loss) on foreign currency exchange contracts	$ 100	$ (1,500)	$ 600	$ (2,900)

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, 2018	Dec. 31, 2017
Total Balance
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	$ 147	$ (565)
Level 1
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	0	0
Level 2
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	147	(565)
Level 3
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	$ 0	$ 0

Derivatives - Foreign Currency Exchange Contracts (Details) - Not Designated as Hedging Instrument	9 Months Ended	12 Months Ended
	Sep. 30, 2018 USD ($) ¥ / $ $ / R$ $ / €	Dec. 31, 2017 USD ($) ¥ / $ $ / R$ $ / €
USD/Euro
Derivative [Line Items]
Notional value	$ 18,000,000	$ 17,000,000
Forward rate \| $ / €	1.1773	1.1858
Unrealized gain/(loss) recorded at balance sheet date	$ 216,000	$ (220,000)
USD
Derivative [Line Items]
Notional value	$ 35,000,000	$ 20,000,000
Forward rate \| ¥ / $	6.8963	6.6481
Unrealized gain/(loss) recorded at balance sheet date	$ (56,000)	$ (410,000)
USD/Brazilian Real
Derivative [Line Items]
Notional value	$ 1,000,000	$ 2,500,000.0
Forward rate \| $ / R$	4.1032	3.2350
Unrealized gain/(loss) recorded at balance sheet date	$ (13,000)	$ 65,000

Business Combination - Narrative (Details)		3 Months Ended		6 Months Ended	9 Months Ended
Business Combination - Narrative (Details)	Apr. 06, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Business Combination
Cash consideration					$ 0	$ 8,894,000
Fair value of earnout consideration		$ 10,170,000			10,170,000		$ 13,400,000
Residential Control Systems, Inc
Business Combination
Initial purchase price	$ 12,600,000
Cash consideration	8,894,000
Contingent consideration	3,700,000
Net sales		1,400,000	$ 800,000	$ 2,200,000	3,300,000
Net loss		400,000	$ 300,000	$ 700,000	1,300,000
Additional earnout payments	$ 10,000,000
Net increase in amortization expense						100,000
Acquisition costs excluded from pro forma net income						$ 100,000
Residential Control Systems, Inc \| Long-term Contingent Consideration
Business Combination
Fair value of earnout consideration		$ 2,600,000			$ 2,600,000
Measurement Input, Discount Rate [Member] \| Residential Control Systems, Inc \| Valuation Methodology Based on Future Operating Income Projections
Business Combination
Discount rate	0.248

Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Thousands		9 Months Ended
	Apr. 06, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Business Combination
Goodwill		$ 48,509		$ 48,651
Cash paid		$ 0	$ 8,894
Residential Control Systems, Inc
Business Combination
Accounts receivable	$ 429
Inventories	1,508
Prepaid expenses and other current assets	7
Property, plant and equipment	14
Current liabilities	(408)
Net tangible assets acquired	1,550
Goodwill	5,494
Total purchase price	12,594
Less: Contingent consideration	(3,700)
Cash paid	8,894
Residential Control Systems, Inc \| Minimum
Business Combination
Estimated lives of property, plant and equipment		1 year
Residential Control Systems, Inc \| Maximum
Business Combination
Estimated lives of property, plant and equipment		4 years
Residential Control Systems, Inc \| Trade name
Business Combination
Finite-lived intangible assets	400
Estimated useful life of intangible assets		8 years
Residential Control Systems, Inc \| Customer relationships
Business Combination
Finite-lived intangible assets	5,000
Estimated useful life of intangible assets		10 years
Residential Control Systems, Inc \| Order backlog
Business Combination
Finite-lived intangible assets	$ 150
Estimated useful life of intangible assets		1 year

Business Combination - Pro Forma Financial Information (Details) - Residential Control Systems, Inc - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Business Combination
Net sales	$ 182,717	$ 175,652	$ 509,938	$ 515,200
Net income	$ 959	$ 1,751	$ 23,031	$ 6,292
Basic earnings per share (in dollars per share)	$ 0.07	$ 0.12	$ 1.65	$ 0.44
Diluted earnings per share (in dollars per share)	$ 0.07	$ 0.12	$ 1.63	$ 0.43