0000101984-23-000012 | 10-K | XBRL Viewer | Universal Electronics INC

Leases

12 Months Ended

Dec. 31, 2022

LeasesWe have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At December 31, 2022, our operating leases had remaining lease terms of up to 38 years, including any reasonably probable extensions.

Lease balances within our consolidated balance sheets were as follows:


(In thousands)	December 31, 2022		December 31, 2021
Assets:
Operating lease right-of-use assets	$	21,599	$	19,847
Liabilities:
Other accrued liabilities	$	5,509	$	4,769
Long-term operating lease obligations	15,027		14,266
Total lease liabilities	$	20,536	$	19,035

Operating lease expense, including variable and short-term lease costs which were insignificant to the total, operating lease cash flows and supplemental cash flow information were as follows:


	Year Ended December 31,
(In thousands)	2022		2021
Cost of sales	$	2,822	$	2,508
Selling, general and administrative expenses	4,474		4,151
Total operating lease expense	$	7,296	$	6,659
Operating cash outflows from operating leases	$	7,427	$	6,555
Operating lease right-of-use assets obtained in exchange for lease obligations	$	8,756	$	7,017
Non-cash release of operating lease obligations (1)	$	—	$	654

(1) During the year ended December 31, 2021, we were released from our guarantee of the lease obligation related to our Ohio call center which was sold in February 2020.

The weighted average remaining lease liability term and the weighted average discount rate were as follows:


	Year Ended December 31,
	2022		2021
Weighted average lease liability term (in years)	5.10		4.30
Weighted average discount rate	3.82	%	3.17	%

The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at December 31, 2022. The reconciliation excludes short-term leases that are not recorded on the balance sheet.


(In thousands)
2023	$	6,182
2024	5,201
2025	4,201
2026	2,629
2027	1,915
Thereafter	2,860
Total lease payments	22,988
Less: imputed interest	(2,452)
Total lease liabilities	$	20,536

At December 31, 2022, we did not have any operating leases that had not yet commenced.

Prepaid Land Lease

We operate one factory within the PRC on which the land is leased from the government as of December 31, 2022. This land lease was prepaid to the PRC government at the time our subsidiary occupied the land. We have obtained a land-use right certificate for the land pertaining to this factory.

The factory is located in the city of Yangzhou in the Jiangsu province. The remaining net book value of this operating lease ROU was $2.2 million at December 31, 2022, and is being amortized on a straight-line basis over the remaining term of approximately 36 years. The buildings located on this land had a net book value of $13.4 million at December 31, 2022 and are being depreciated over a remaining weighted average period of approximately 17 years.

Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary

Other income (expense), net consisted of the following:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Net gain (loss) on foreign currency exchange contracts (1)	$	(1,309)	$	2,903	$	(310)
Net gain (loss) on foreign currency exchange transactions	218		(4,237)		(1,675)
Other income (expense)	136		777		581
Other income (expense), net	$	(955)	$	(557)	$	(1,404)

(1)This represents the gains (losses) incurred on foreign currency hedging derivatives. See Note 19 for further information concerning our foreign currency exchange contracts.

On September 7, 2021, we completed the sale of our subsidiary, One For All Argentina S.R.L, to an unrelated party, recording a loss on sale of $6.1 million. Upon divestiture, the successor entity, OFA Express S.R.L., serves as an authorized distributor of certain of our products in Argentina. OFA Express, S.R.L. is not a related party of the Company.

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

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, 2020	$	48,614
Foreign exchange effects	(151)
Balance at December 31, 2021	48,463
Goodwill acquired during the period (1)	713
Foreign exchange effects	(91)
Balance at December 31, 2022	$	49,085

(1) During the year ended December 31, 2022, we recognized $0.7 million of goodwill related to the Qterics, Inc. ("Qterics") acquisition. Refer to Note 21 for further information about this acquisition.

We conducted annual goodwill impairment reviews on December 31, 2022, 2021 and 2020. Based on the analysis performed, we determined that our goodwill was not impaired.

Intangible Assets, Net

The components of intangible assets, net were as follows:


	December 31,
	2022						2021
(In thousands)	Gross (1)		Accumulated Amortization (1)		Net (1)		Gross (1)		Accumulated Amortization (1)		Net (1)
Capitalized software development costs (2 years)	$	1,647	$	(44)	$	1,603	$	1,066	$	(27)	$	1,039
Customer relationships (10-15 years)	6,340		(3,080)		3,260		5,000		(2,375)		2,625
Developed and core technology (5-15 years)	4,520		(3,693)		827		4,080		(3,335)		745
Distribution rights (10 years)	308		(281)		27		325		(269)		56
Patents (10 years)	29,388		(10,790)		18,598		24,518		(9,015)		15,503
Trademarks and trade names (10 years)	450		(295)		155		800		(599)		201
Total intangible assets, net	$	42,653	$	(18,183)	$	24,470	$	35,789	$	(15,620)	$	20,169

(1)This table excludes the gross value of fully amortized intangible assets totaling $43.7 million and $43.2 million on December 31, 2022 and 2021, respectively.

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


	Year Ended December 31,
(In thousands)	2022		2021		2020
Cost of sales	$	49	$	27	$	—
Selling, general and administrative expenses	3,969		3,963		6,500
Total amortization expense	$	4,018	$	3,990	$	6,500

Estimated future annual amortization expense related to our intangible assets at December 31, 2022, is as follows:


(In thousands)
2023	$	4,821
2024	4,545
2025	3,705
2026	3,188
2027	2,596
Thereafter	5,615
Total	$	24,470

The remaining weighted average amortization period of our intangible assets at December 31, 2022 is 6.2 years.

Treasury Stock - Narrative (Details)	Feb. 22, 2022 shares
February 2022 Program
Equity, Class of Treasury Stock [Line Items]
Number of shares authorized to be repurchased (in shares)	300,000

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number of Options
Outstanding at beginning of the year (in shares)	800	774	745
Granted (in shares)	139	80	109
Exercised (in shares)	(80)	(54)	(80)
Forfeited/canceled/expired (in shares)	(77)	0	0
Outstanding at end of the year (in shares)	782	800	774
Vested and expected to vest at the end of the year (in shares)	782	800	774
Exercisable at the end of the year (in shares)	600	656	582
Weighted-Average Exercise Price
Outstanding at beginning of the year (in dollars per share)	$ 45.55	$ 43.01	$ 41.73
Granted (in dollars per share)	33.42	59.43	46.17
Exercised (in dollars per share)	19.25	30.04	35.28
Forfeited/canceled/expired (in dollars per share)	64.81	0	0
Outstanding at end of the year (in dollars per share)	44.16	45.55	43.01
Vested and expected to vest at the end of the year (in dollars per share)	44.16	45.55	43.01
Exercisable at the end of the year (in dollars per share)	$ 45.77	$ 44.08	$ 43.90
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value
Outstanding at end of the year	3 years 5 months 12 days	3 years 1 month 24 days	3 years 8 months 15 days
Vested and expected to vest at the end of the year	3 years 5 months 12 days	3 years 1 month 24 days	3 years 8 months 15 days
Exercisable at the end of the year	2 years 7 months 9 days	2 years 6 months 29 days	2 years 11 months 23 days
Exercised	$ 292	$ 931	$ 1,334
Outstanding at end of the year	0	3,780	9,228
Vested and expected to vest at the end of the year	0	3,780	9,228
Exercisable at the end of the year	$ 0	$ 3,608	$ 6,887

Cash and Cash Equivalents and Term Deposit

12 Months Ended

Dec. 31, 2022

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents and Term Deposit

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


	December 31,
(In thousands)	2022		2021
North America	$	6,825	$	6,430
People's Republic of China ("PRC")	15,633		16,000
Asia (excluding the PRC)	18,850		11,798
Europe	13,042		17,604
South America	12,390		8,981
Total cash and cash equivalents	$	66,740	$	60,813

On January 25, 2022, we entered into a one-year term deposit cash account with Banco Santander (Brasil) S.A., denominated in Brazilian Real. The term deposit earned interest at a variable annual rate based upon the Brazilian CDI overnight interbank rate. As of December 31, 2022, all of this term deposit was redeemed.

Property, Plant, and Equipment, Net - Construction in Progress (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Construction in progress	$ 9,888	$ 4,869
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Construction in progress	475	100
Machinery and equipment
Property, Plant and Equipment [Line Items]
Construction in progress	2,282	1,912
Software
Property, Plant and Equipment [Line Items]
Construction in progress	4,862	1,272
Tooling and equipment
Property, Plant and Equipment [Line Items]
Construction in progress	1,827	1,168
Other
Property, Plant and Equipment [Line Items]
Construction in progress	$ 442	$ 417

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee and director stock-based compensation expense	$ 10,013	$ 9,969	$ 9,122
Income tax benefit	1,660	1,718	1,594
Cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee and director stock-based compensation expense	155	156	182
Research and development expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee and director stock-based compensation expense	1,342	1,253	1,099
Selling, general and administrative expenses \| Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee and director stock-based compensation expense	7,257	6,997	6,257
Selling, general and administrative expenses \| Outside directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee and director stock-based compensation expense	$ 1,259	$ 1,563	$ 1,584

Commitments and Contingencies - Litigation (Details)					1 Months Ended	12 Months Ended
Commitments and Contingencies - Litigation (Details)	May 10, 2021 patent customer	Apr. 08, 2021 patent	Apr. 09, 2020 patent	Sep. 05, 2018 patent	Dec. 31, 2022 patent inter_partes_review	Dec. 31, 2022 patent inter_partes_review
Contingencies [Line Items]
Voting threshold for business combinations (in percent)					0.6667	0.6667
Number of IPR requests denied \| inter_partes_review					14	14
Number of IPR requests granted \| inter_partes_review					12	12
Number of patents subject to inter partes review (IPR)						2
Number of patents not appealed						1
Number of customer with a filed complaint \| customer	2
Roku lawsuit
Contingencies [Line Items]
Number of patents allegedly infringed upon						2
Roku lawsuit \| Pending litigation
Contingencies [Line Items]
Number of patents allegedly infringed upon				9
Number of patent families				4
Roku, TCL, Hisense, and Funai Patent Infringement - ITC Matter \| Pending litigation
Contingencies [Line Items]
Number of patents allegedly infringed upon			5
TLC Hisense and Funai - ITC Matter \| Pending litigation
Contingencies [Line Items]
Number of patents allegedly infringed upon			6
Roku- ITC Matter \| Pending litigation
Contingencies [Line Items]
Number of patents allegedly infringed upon		2			2
Patents found not infringed	1

Inventories and Significant Suppliers

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Inventories and Significant Suppliers

Inventories were as follows:


	December 31,
(In thousands)	2022		2021
Raw materials	$	58,759	$	52,617
Components	25,226		25,289
Work in process	2,616		7,102
Finished goods	53,580		49,461
Inventories	$	140,181	$	134,469

Significant Suppliers

We purchase integrated circuits, components and finished goods from multiple sources. Purchases from the following supplier totaled 10% of our total inventory purchases:


	Year Ended December 31,
	2022				2021				2020
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Qorvo International Pte Ltd.	$	33,293	11.5	%	$	38,712	11.8	%	$	43,543	14.2	%

Purchases from the following supplier totaled more than 10% of our total accounts payable:


	December 31,
	2022						2021
	$ (thousands)			% of Total Accounts Payable			$ (thousands)		% of Total Accounts Payable
Zhejiang Zhen You Electronics Co. Ltd.	$	—	(1)	—	%	(1)	$	9,862	10.6	%

(1) Accounts payable associated with this supplier did not total more than 10% of our accounts payable for the indicated period.

Revenue and Accounts Receivable, Net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract]
Trade receivables, gross	$ 108,030	$ 122,508
Allowance for credit losses	(957)	(1,285)	$ (1,412)	$ (1,492)
Allowance for sales returns	(618)	(592)
Trade receivables, net	106,455	120,631
Other	5,891	8,584
Accounts receivable, net	$ 112,346	$ 129,215

Earnings Per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per share was calculated as follows:


	Year Ended December 31,
(In thousands, except per-share amounts)	2022		2021		2020
BASIC
Net income	$	407	$	5,301	$	38,572
Weighted-average common shares outstanding	12,703		13,465		13,893
Basic earnings per share	$	0.03	$	0.39	$	2.78
DILUTED
Net income	$	407	$	5,301	$	38,572
Weighted-average common shares outstanding for basic	12,703		13,465		13,893
Dilutive effect of stock options, restricted stock and common stock warrants	76		277		273
Weighted-average common shares outstanding on a diluted basis	12,779		13,742		14,166
Diluted earnings per share	$	0.03	$	0.39	$	2.72

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:


	Year Ended December 31,
(In thousands)	2022	2021	2020
Stock options	686	412	468
Restricted stock awards	242	65	14
Performance-based warrants	275	206	275

Derivatives (Tables)

12 Months Ended

Dec. 31, 2022

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:


	December 31, 2022								December 31, 2021
	Fair Value Measurement Using						Total Balance		Fair Value Measurement Using						Total Balance
(In thousands)	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Foreign currency exchange contracts	$	—	$	100	$	—	$	100	$	—	$	(92)	$	—	$	(92)

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
December 31, 2022	USD/Euro	USD	$	26.0	1.0529	$	(428)	January 6, 2023
December 31, 2022	USD/Chinese Yuan Renminbi	CNY	$	31.0	7.0358	$	528	January 6, 2023
December 31, 2021	USD/Chinese Yuan Renminbi	CNY	$	19.0	6.3777	$	38	January 7, 2022
December 31, 2021	USD/Euro	USD	$	31.0	1.1336	$	(130)	January 7, 2022

(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.

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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Indemnifications

We indemnify our directors and officers to the maximum extent permitted under the laws of the state of Delaware and we have entered into indemnification agreements with each of our directors and executive officers. In addition, we insure our individual directors and officers against certain claims and attorney's fees and related expenses incurred in connection with the defense of such claims. The amounts and types of coverage may vary from period to period as dictated by market conditions. Management is not aware of any matters that require indemnification of its officers or directors.

Fair Price Provisions and Other Anti-Takeover Measures

Our Restated Certificate of Incorporation, as amended, contains certain provisions restricting business combinations with interested stockholders under certain circumstances and imposing higher voting requirements for the approval of certain transactions ("fair price" provisions). Any of these provisions may delay or prevent a change in control.

The "fair price" provisions require that holders of at least two-thirds of our outstanding shares of voting stock approve certain business combinations and significant transactions with interested stockholders.

Product Warranties

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


	Year Ended December 31,
(In thousands)	2022		2021		2020
Balance at beginning of period	$	1,095	$	1,721	$	1,514
Accruals for warranties issued during the period	249		2,943		578
Settlements (in cash or in kind) during the period	(819)		(3,522)		(463)
Foreign currency translation gain (loss)	(3)		(47)		92
Balance at end of period	$	522	$	1,095	$	1,721

Litigation

Roku Matters

2018 Lawsuit

On September 5, 2018, we filed a lawsuit against Roku, Inc. ("Roku") in the United States District Court, Central District of California, alleging that Roku is willfully infringing nine of our patents that are in four patent families related to remote control set-up and touchscreen remotes. On December 5, 2018, we amended our complaint to add additional details supporting our infringement and willfulness allegations. We have alleged that this complaint relates to multiple Roku streaming players and components therefor and certain universal control devices, including but not limited to the Roku App, Roku TV, Roku Express, Roku Streaming Stick, Roku Ultra, Roku Premiere, Roku 4, Roku 3, Roku 2, Roku Enhanced Remote and any other Roku product that provides for the remote control of an external device such as a TV, audiovisual receiver, sound bar or Roku TV Wireless Speakers. In October 2019, the Court stayed this lawsuit pending action by the Patent Trial and Appeals Board (the "PTAB") with respect to Roku's requests for Inter Partes Review ("IPR") (see discussion below). This lawsuit continues to be stayed until such time as the IPR's and all appeals with respect to them have concluded.

International Trade Commission Investigation of Roku, TCL, Hisense and Funai

On April 16, 2020, we filed a complaint with the International Trade Commission (the "ITC") against Roku, TCL Electronics Holding Limited and related entities (collectively, "TCL"), Hisense Co., Ltd. and related entities (collectively, "Hisense"), and Funai Electric Company, Ltd. and related entities (collectively, "Funai") claiming that certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices, and sound bars infringe certain of our patents. We asked the ITC to issue a permanent limited exclusion order prohibiting the importation of these infringing products into the United

States and a cease and desist order to stop these parties from continuing their infringing activities. On May 18, 2020, the ITC announced that it instituted its investigation as requested by us. Prior to the trial, which ended on April 23, 2021, we dismissed TCL, Hisense and Funai from this investigation as they either removed or limited the amount of our technology from their televisions as compared to our patent claims that we asserted at the time. On July 9, 2021, the Administrative Law Judge (the "ALJ") issued his Initial Determination (the "ID") finding that Roku is infringing our patents and as a result is in violation of §337 of the Tariff Act of 1930, as amended (the "Tariff Act"). On July 23, 2021, Roku and we filed petitions to appeal certain portions of the ID. On November 10, 2021, the full ITC issued its final determination affirming the ID and issuing a Limited Exclusion Order (the "LEO") and Cease and Desist Order (the "CDO") against Roku, which became effective on January 9, 2022. Roku continues to be subject to the LEO and CDO. On October 25, 2022, we filed our brief opposing Roku's appeal of the LEO.

2020 Lawsuit

As a companion case to our ITC complaint, on April 9, 2020, we filed separate actions against each of Roku, TCL, Hisense, and Funai in the United States District Court, Central District of California, alleging that Roku is willfully infringing five of our patents and TCL, Hisense, and Funai are willfully infringing six of our patents by incorporating our patented technology into certain of their televisions, set-top boxes, remote control devices, human interface devices, streaming devices and sound bars. These matters have been and continue to be stayed pending the ITC case and any appeals.

Inter Partes Reviews

Throughout these litigation matters against Roku and the others identified above, Roku has filed multiple IPR requests with the PTAB on all patents at issue in the 2018 Lawsuit, the ITC Action, and the 2020 Lawsuit (see discussion above). To date, the PTAB has denied Roku's request fourteen times and granted Roku's request twelve times. Roku has since filed two IPRs on two of our patents not yet asserted against it, and we are awaiting the PTAB's institution decision with respect to those new IPR requests. Of the twelve IPR requests granted by the PTAB, the results were mixed, with the PTAB upholding the validity of many of our patent claims and invalidating others. We have appealed all but one PTAB decision that resulted in an invalidation of our patent claims and we will continue to do so.

International Trade Commission Investigation Request made by Roku against UEI and certain UEI Customers

On April 8, 2021, Roku made a request to the ITC to initiate an investigation against us and certain of our customers claiming that certain of our and those customers' remote control devices and televisions infringe two of Roku's recently acquired patents, the '511 patent and the '875 patent. On May 10, 2021, the ITC announced its decision to institute the requested investigation. Immediately prior to trial Roku stipulated to summary determination as to its complaint against us and two of our customers with respect to one of the two patents at issue. This stipulation resulted in the complaint against us and two of our customers with respect to that patent not going to trial. The trial was thus shortened and ended on January 24, 2022. On June 24, 2022, the ALJ, pursuant to Roku's stipulation, found the '511 patent invalid as indefinite. Thereafter, on June 28, 2022, the ALJ issued an ID fully exonerating us and our customers finding the '875 patent invalid and that Roku failed to prove it established the requisite domestic industry and thus no violation of the Tariff Act. In advance of the full Commission's review, Roku and we filed petitions to appeal certain portions of the ID. In addition, the PTAB granted our request for an IPR with respect to the '875 patent. On October 28, 2022, the full ITC issued its final determination affirming the ID, ruling there was no violation of the Tariff Act and terminated the investigation. In December 2022, Roku filed an appeal, which remains pending. As a companion to its ITC request, Roku also filed a lawsuit against us in Federal District Court in the Central District of California alleging that we are infringing the same two patents they alleged being infringed in the ITC investigation explained above. This District Court case has been stayed pending the ITC case, and will likely continue to be stayed pending the conclusion of the '875 IPR investigation, even after Roku's appeal of the ITC case has concluded.

Court of International Trade Action against the United States of America, et. al.

On October 9, 2020, we and our subsidiaries, Ecolink Intelligent Technology, Inc. ("Ecolink") and RCS Technology, LLC ("RCS"), filed an amended complaint (20-cv-00670) in the Court of International Trade (the "CIT") against the United States of America; the Office of the United States Trade Representative; Robert E. Lighthizer, U.S. Trade Representative; U.S. Customs & Border Protection; and Mark A. Morgan, U.S. Customs & Border Protection Acting Commissioner, challenging both the

substantive and procedural processes followed by the United States Trade Representative ("USTR") when instituting Section 301 Tariffs on imports from China under Lists 3 and 4A.

Pursuant to this complaint, Ecolink, RCS and we are alleging that USTR's institution of Lists 3 and 4A tariffs violated the Trade Act of 1974 (the "Trade Act") on the grounds that the USTR failed to make a determination or finding that there was an unfair trade practice that required a remedy and moreover, that Lists 3 and 4A tariffs were instituted beyond the 12-month time limit provided for in the governing statute. Ecolink, RCS and we also allege that the manner in which the Lists 3 and 4A tariff actions were implemented violated the Administrative Procedures Act (the "APA") by failing to provide adequate opportunity for comments, failed to consider relevant factors when making its decision and failed to connect the record facts to the choices it made by not explaining how the comments received by USTR came to shape the final implementation of Lists 3 and 4A.

Ecolink, RCS and we are asking the CIT to declare that the defendants' actions resulting in the tariffs on products covered by Lists 3 and 4A are unauthorized by and contrary to the Trade Act and were arbitrarily and unlawfully promulgated in violation of the APA; to vacate the Lists 3 and 4A tariffs; to order a refund (with interest) of any Lists 3 and 4A duties paid by Ecolink, RCS and us; to permanently enjoin the U.S. government from applying Lists 3 and 4A duties against Ecolink, RCS and us; and award Ecolink, RCS and us our costs and reasonable attorney's fees.

In July 2021, the CIT issued a preliminary injunction suspending liquidation of all unliquidated entries subject to Lists 3 and 4A duties and has asked the parties to develop a process to keep track of the entries to efficiently and effectively deal with liquidation process and duties to be paid or refunded when finally adjudicated. On February 5, 2022, the CIT heard oral arguments on dispositive motions filed on behalf of plaintiffs and defendants. On April 1, 2022, the CIT issued its opinion on these dispositive motions, ruling that the USTR had the legal authority to promulgate List 3 and List 4A under Section 307(a)(1)(B) of the Trade Act, but that the USTR violated the APA when it promulgated List 3 and List 4A concluding that the USTR failed to adequately explain its decision as required under the APA. The Court ordered that List 3 and List 4A be remanded to the USTR for reconsideration or further explanation regarding its rationale for imposing the tariffs. The Court declined to vacate List 3 and List 4A, which means that they are still in place while on remand. The Court's preliminary injunction regarding liquidation of entries also remains in effect. The Court initially set a deadline of June 30, 2022, for the USTR to complete this process, which was extended to August 1, 2022.

On August 1, 2022, the USTR provided the Court with that further explanation and also purported to respond to the significant comments received during the original notice-and-comment process. On September 14, 2022, the lead plaintiff filed its comments to the USTR's August 1, 2022 filing, asserting that the USTR did not adequately respond to the Court's remand order and requested the Court to vacate the List 3 and List 4A tariffs and issue refunds immediately. On February 7, 2023, the Court heard arguments on these issues and we expect the Court to rule on these filings in mid 2023.

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.

Defined Benefit Plan

Our subsidiary in India maintains a defined benefit pension plan ("India Plan") for local employees, which is consistent with local statutes and practices. The pension plan was adequately funded on December 31, 2022 based on its latest actuarial report. The India Plan has an independent external manager that advises us of the appropriate funding contribution requirements to which we comply. At December 31, 2022, approximately 54 percent of our India subsidiary employees had qualified for eligibility. An individual must be employed by our India subsidiary for a minimum of five years before becoming eligible.

Upon the termination, resignation or retirement of an eligible employee, we are liable to pay the employee an amount equal to 15 days salary for each full year of service completed. The total amount of liability outstanding at December 31, 2022 and 2021 for the India Plan was not material. During the years ended December 31, 2022, 2021 and 2020, the net periodic benefit costs were also not material.

CONSOLIDATED COMPREHENSIVE INCOME (LOSS) STATEMENTS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 407	$ 5,301	$ 38,572
Other comprehensive income (loss):
Change in foreign currency translation adjustment	(7,663)	(427)	4,259
Change in foreign currency translation due to sale of Argentina subsidiary	0	5,425	0
Comprehensive income (loss)	$ (7,256)	$ 10,299	$ 42,831

- Definition

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

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+ Details

Line of Credit (Details) - USD ($)	12 Months Ended
Line of Credit (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Amount outstanding under line of credit	$ 88,000,000	$ 56,000,000
Interest expense on borrowings	$ 3,300,000	$ 900,000	$ 1,600,000
Line of credit
Line of Credit Facility [Line Items]
Renewal period (in years)	2 years
Line of credit \| US Bank
Line of Credit Facility [Line Items]
Effective interest rate	5.62%	1.35%
Commitment fees	$ 0
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 \| Second Amended Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 125,000,000
Letter of credit
Line of Credit Facility [Line Items]
Letter of credit outstanding amount	$ 0

Leases - Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 6,182
2024	5,201
2025	4,201
2026	2,629
2027	1,915
Thereafter	2,860
Total lease payments	22,988
Less: imputed interest	(2,452)
Total lease liabilities	$ 20,536	$ 19,035

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Percent of employer matching contribution (in percent)	50.00%
Maximum percent of annual employer matched contribution per employee (in percent)	15.00%
Company contributions expense	$ 1.2	$ 1.1	$ 1.2

Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [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:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Cost of sales	$	155	$	156	$	182
Research and development expenses	1,342		1,253		1,099
Selling, general and administrative expenses:
Employees	7,257		6,997		6,257
Outside directors	1,259		1,563		1,584
Total employee and director stock-based compensation expense	$	10,013	$	9,969	$	9,122

Income tax benefit	$	1,660	$	1,718	$	1,594

Stock Options

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:


	Year Ended December 31,
	2022			2021			2020
Weighted average fair value of grants	$	14.51		$	23.97		$	17.70
Risk-free interest rate	1.93		%	0.41		%	1.44		%
Expected volatility	49.35		%	48.49		%	43.95		%
Expected life in years	4.73			4.62			4.59

Stock option activity was as follows:


	2022						2021						2020
	Number of Options (in 000's)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in 000's)		Number of Options (in 000's)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in 000's)		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 beginning of the year	800	$	45.55				774	$	43.01				745	$	41.73
Granted	139	33.42					80	59.43					109	46.17
Exercised	(80)	19.25			$	292	(54)	30.04			$	931	(80)	35.28			$	1,334
Forfeited/canceled/expired	(77)	64.81					—	—					—	—
Outstanding at end of the year (1)	782	$	44.16	3.45	$	—	800	$	45.55	3.15	$	3,780	774	$	43.01	3.71	$	9,228
Vested and expected to vest at the end of the year (1)	782	$	44.16	3.45	$	—	800	$	45.55	3.15	$	3,780	774	$	43.01	3.71	$	9,228
Exercisable at the end of the year (1)	600	$	45.77	2.61	$	—	656	$	44.08	2.58	$	3,608	582	$	43.90	2.98	$	6,887

(1)The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of 2022, 2021 and 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on December 31, 2022, 2021 and 2020. This amount will change based on the fair market value of our stock.

The value of shares withheld in lieu of receiving cash from option exercises in the years ended December 31, 2022, 2021 and 2020 was $1.5 million, $0.6 million and $2.8 million, respectively. Cash received from option exercises for the year ended December 31, 2021 was $1.0 million. There was no cash received from option exercises for the years ended December 31, 2022 and 2020. The actual tax benefit realized from option exercises was $0.1 million, $0.2 million and $0.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Significant option groups outstanding at December 31, 2022 and the related weighted average exercise price and life information were as follows:


	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding (in 000's)	Weighted-Average Remaining Contractual Term (in years)	Weighted-Average Exercise Price		Number Exercisable (in 000's)	Weighted-Average Exercise Price
$26.64 to $34.55	290	4.80	$	30.12	150	$	27.07
$44.95 to $46.17	207	3.60	45.59		198	45.56
$51.38 to $62.70	285	2.28	57.39		252	57.12
	782	3.45	$	44.16	600	$	45.77

As of December 31, 2022, 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 1.8 years.

On February 9, 2023, certain executive employees were granted stock options to acquire, in the aggregate, up to 235,455 shares of our common stock, in connection with the 2022 annual review cycle. The options were granted as part of the executive compensation program and are subject to a three-year vesting period (33.33% on February 9, 2024 and 8.33% each quarter thereafter). The total grant date fair value of these awards was $2.6 million.

Restricted Stock

Non-vested restricted stock award activity was as follows:


	2022			2021			2020
	Shares (in 000's)	Weighted-Average Grant Date Fair Value		Shares (in 000's)	Weighted-Average Grant Date Fair Value		Shares (in 000's)	Weighted-Average Grant Date Fair Value
Non-vested at beginning of the year	310	$	44.41	374	$	34.53	310	$	34.99
Granted	262	31.05		156	56.90		238	36.85
Vested	(191)	41.09		(211)	36.35		(166)	38.28
Forfeited	(5)	43.22		(9)	39.65		(8)	43.44
Non-vested at end of the year	376	$	36.82	310	$	44.41	374	$	34.53

As of December 31, 2022, 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 1.7 years.

In February 2023, certain executives were granted 102,965 restricted stock awards, in the aggregate, in connection with the 2022 annual review cycle. These awards were granted as part of the executive compensation program and are subject to a three-year vesting period (33.33% on February 9, 2024 and 8.33% each quarter thereafter). The total grant date fair value of these awards was $2.6 million.

Stock Incentive Plans

Our active stock-based incentive plans include those adopted in 2010, 2014 and 2018 ("Stock Incentive Plans"). Under the Stock Incentive Plans, we may grant stock options, stock appreciation rights, restricted stock units, performance stock units, or any combination thereof for a period of ten years from the approval date of each respective plan, unless the plan is terminated by resolution of our Board of Directors. No stock appreciation rights or performance stock units have been awarded under our Stock Incentive Plans. Only directors and employees meeting certain employment qualifications are eligible to receive stock-based awards.

The grant price of stock option and restricted stock awards granted under our Stock Incentive Plans is the average of the high and low trades of our stock on the grant date. We prohibit the re-pricing or backdating of stock options. Our stock options become exercisable in various proportions over a three-year time frame. Stock options have a maximum ten-year term. Restricted stock awards vest in various proportions over a one- to three-year time period.

Detailed information regarding our active Stock Incentive Plans was as follows at December 31, 2022:


Name	Approval Date	Total Shares Available for Grant Under the Plan	Remaining Shares Available for Grant Under the Plan	Outstanding Shares Granted Under the Plan
2010 Stock Incentive Plan	6/15/2010	1,000,000	—	13,219
2014 Stock Incentive Plan	6/12/2014	1,100,000	—	269,891
2018 Equity and Incentive Compensation Plan (1)	6/4/2018	2,196,344	777,152	875,465
			777,152	1,158,575

(1)The 2018 Equity and Incentive Compensation Plan was amended in June 2021 to add an additional 1,100,000 shares, as approved by our stockholders.

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Calculation of Earnings Per Share

Earnings per share was calculated as follows:


	Year Ended December 31,
(In thousands, except per-share amounts)	2022		2021		2020
BASIC
Net income	$	407	$	5,301	$	38,572
Weighted-average common shares outstanding	12,703		13,465		13,893
Basic earnings per share	$	0.03	$	0.39	$	2.78
DILUTED
Net income	$	407	$	5,301	$	38,572
Weighted-average common shares outstanding for basic	12,703		13,465		13,893
Dilutive effect of stock options, restricted stock and common stock warrants	76		277		273
Weighted-average common shares outstanding on a diluted basis	12,779		13,742		14,166
Diluted earnings per share	$	0.03	$	0.39	$	2.72

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


	Year Ended December 31,
(In thousands)	2022	2021	2020
Stock options	686	412	468
Restricted stock awards	242	65	14
Performance-based warrants	275	206	275

Goodwill and Intangible Assets, Net - Amortization Expense by Income Statement Caption (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 4,018	$ 3,990	$ 6,500
Cost of sales
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	49	27	0
Selling, general and administrative expenses
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 3,969	$ 3,963	$ 6,500

Revenue and Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Pattern of Revenue Recognition

The pattern of revenue recognition was as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Goods and services transferred at a point in time	$	450,227	$	498,554	$	495,033
Goods and services transferred over time	92,524		103,048		119,647
Net sales	$	542,751	$	601,602	$	614,680

Revenue from External Customers by Geographic Areas

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


	Year Ended December 31,
(In thousands)	2022		2021		2020
United States	$	167,501	$	200,136	$	255,651
Asia (excluding the PRC)	127,702		127,140		117,142
Europe	103,993		126,551		108,185
People's Republic of China	85,215		87,866		88,246
Latin America	28,363		25,943		17,481
Other	29,977		33,966		27,975
Total net sales	$	542,751	$	601,602	$	614,680

Net Sales to Significant Customers

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


	Year Ended December 31,
	2022				2021				2020
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales		$ (thousands)			% of Net Sales
Comcast Corporation	$	78,781	14.5	%	$	98,361	16.3	%	$	123,574		20.1	%
Daikin Industries Ltd.	$	78,413	14.4	%	$	70,793	11.8	%	$	—	(1)	—	%	(1)

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

Accounts Receivable, Net and Changes in the Allowance for Credit Losses

Accounts receivable, net were as follows:


	December 31,
(In thousands)	2022		2021
Trade receivables, gross	$	108,030	$	122,508
Allowance for credit losses	(957)		(1,285)
Allowance for sales returns	(618)		(592)
Trade receivables, net	106,455		120,631
Other (1)	5,891		8,584
Accounts receivable, net	$	112,346	$	129,215

(1) Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables.

Allowance for Credit Losses

Changes in the allowance for credit losses were as follows:


(In thousands)	Year Ended December 31,
	2022		2021		2020
Balance at beginning of period	$	1,285	$	1,412	$	1,492
Additions (reductions) to costs and expenses	(182)		—		332
Cash receipts	—		—		(157)
Write-offs/Foreign exchange effects	(146)		(127)		(255)
Balance at end of period	$	957	$	1,285	$	1,412

Trade Receivables Associated with Significant Customers

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


	December 31,
	2022				2021
	$ (thousands)		% of Accounts Receivable, Net		$ (thousands)			% of Accounts Receivable, Net
Comcast Corporation	$	15,367	13.7	%	$	—	(1)	—	%	(1)

(1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period.

Business Combinations - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	10 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 49,085	$ 48,463	$ 48,614
Qterics, Inc.
Business Acquisition [Line Items]
Estimated Lives, Property, plant and equipment (in years)	5 years
Term of contract, Operating lease ROU assets (in years)	3 years
Accounts receivable	$ 787
Property, plant and equipment	3
Goodwill	713
Operating lease ROU assets	149
Other assets	2
Other accrued liabilities	(6)
Short-term operating lease obligation	(48)
Deferred revenue	(1,539)
Long-term operating lease obligation	(101)
Long-term deferred revenue	(851)
Cash paid	$ 939
Qterics, Inc. \| Customer relationships
Business Acquisition [Line Items]
Estimated Lives (in years)	6 years
Finite lived intangible assets	$ 1,340
Qterics, Inc. \| Developed technology
Business Acquisition [Line Items]
Estimated Lives (in years)	6 years
Finite lived intangible assets	$ 440
Qterics, Inc. \| Trade names
Business Acquisition [Line Items]
Estimated Lives (in years)	6 years
Finite lived intangible assets	$ 50

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lease Balances within the Consolidated Balance Sheet

Lease balances within our consolidated balance sheets were as follows:


(In thousands)	December 31, 2022		December 31, 2021
Assets:
Operating lease right-of-use assets	$	21,599	$	19,847
Liabilities:
Other accrued liabilities	$	5,509	$	4,769
Long-term operating lease obligations	15,027		14,266
Total lease liabilities	$	20,536	$	19,035

Operating Lease Expense, Operating Lease Cash Flows and Supplemental Cash Flow Information

Operating lease expense, including variable and short-term lease costs which were insignificant to the total, operating lease cash flows and supplemental cash flow information were as follows:


	Year Ended December 31,
(In thousands)	2022		2021
Cost of sales	$	2,822	$	2,508
Selling, general and administrative expenses	4,474		4,151
Total operating lease expense	$	7,296	$	6,659
Operating cash outflows from operating leases	$	7,427	$	6,555
Operating lease right-of-use assets obtained in exchange for lease obligations	$	8,756	$	7,017
Non-cash release of operating lease obligations (1)	$	—	$	654

(1) During the year ended December 31, 2021, we were released from our guarantee of the lease obligation related to our Ohio call center which was sold in February 2020.

Lease Terms and Discount Rates

The weighted average remaining lease liability term and the weighted average discount rate were as follows:


	Year Ended December 31,
	2022		2021
Weighted average lease liability term (in years)	5.10		4.30
Weighted average discount rate	3.82	%	3.17	%

Reconciliation of the Undiscounted Cash Flows for Each of the First Five Years and Thereafter to Operating Lease Liabilities


(In thousands)
2023	$	6,182
2024	5,201
2025	4,201
2026	2,629
2027	1,915
Thereafter	2,860
Total lease payments	22,988
Less: imputed interest	(2,452)
Total lease liabilities	$	20,536

Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Contract liabilities	$ 1,134	$ 390
Duties	470	4,128
Expense associated with fulfilled performance obligations	1,120	991
Freight and handling fees	2,497	3,317
Interest	1,413	287
Operating lease obligations	5,509	4,769
Product warranty claim costs	522	1,095
Professional fees	2,293	4,685
Sales and value added taxes	3,750	5,463
Other	5,426	5,715
Total other accrued liabilities	$ 24,134	$ 30,840

Business Combinations - Narrative (Details) - Qterics, Inc. - USD ($) $ in Thousands		10 Months Ended
	Feb. 17, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 900
Net sales		$ 2,100
Net losses		$ 145

Accrued Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Components of Accrued Compensation

The components of accrued compensation were as follows:


	December 31,
(In thousands)	2022		2021
Accrued bonus	$	3,348	$	3,460
Accrued commission	609		1,140
Accrued salary/wages	4,433		6,234
Accrued social insurance (1)	7,037		7,562
Accrued vacation/holiday	3,300		3,343
Other accrued compensation	2,177		2,478
Total accrued compensation	$	20,904	$	24,217

(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 injury 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 December 31, 2022 and 2021.

The components of other accrued liabilities were as follows:


	December 31,
(In thousands)	2022		2021
Contract liabilities	$	1,134	$	390
Duties	470		4,128
Expense associated with fulfilled performance obligations	1,120		991
Freight and handling fees	2,497		3,317
Interest	1,413		287
Operating lease obligations	5,509		4,769
Product warranty claim costs	522		1,095
Professional fees	2,293		4,685
Sales and value added taxes	3,750		5,463
Other	5,426		5,715
Total other accrued liabilities	$	24,134	$	30,840

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

In 2022, 2021 and 2020, pre-tax income (loss) was attributed to the following jurisdictions:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Domestic operations	$	(69,058)	$	(38,024)	$	(15,711)
Foreign operations	80,451		54,104		59,616
Total pre-tax income (loss)	$	11,393	$	16,080	$	43,905

The provision for income taxes charged to operations was as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Current tax expense:
U.S. federal	$	573	$	2	$	(193)
State and local	73		75		(54)
Foreign	8,523		12,386		6,525
Total current	9,169		12,463		6,278
Deferred tax (benefit) expense:
U.S. federal	230		584		—
State and local	36		90		—
Foreign	1,551		(2,358)		(945)
Total deferred	1,817		(1,684)		(945)
Total provision for income taxes	$	10,986	$	10,779	$	5,333

Net deferred tax assets were comprised of the following:


	December 31,
(In thousands)	2022		2021
Deferred tax assets:
Accrued liabilities	$	—	$	6,483
Accounts receivable	5,657		—
Amortization of intangible assets	5,977		1,412
Capitalized inventory costs	5,060		4,183
Capitalized research & development costs	4,632		—
Depreciation	5,067		4,289
Income tax credits	17,234		17,513
Inventory reserves	2,258		2,621
Net operating losses	3,770		3,512
Operating lease obligations	4,212		4,469
Stock-based compensation	4,288		4,569
Other	—		4,431
Total deferred tax assets	58,155		53,482
Deferred tax liabilities:
Accrued liabilities	(5,273)		—
Accounts receivable	—		(10,919)
Right of use assets	(4,407)		(4,690)
Other	(361)		—
Total deferred tax liabilities	(10,041)		(15,609)
Net deferred tax assets before valuation allowance	48,114		37,873
Less: Valuation allowance	(44,596)		(32,538)
Net deferred tax assets	$	3,518	$	5,335

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pre-tax income from operations as a result of the following:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Tax provision at statutory U.S. rate	$	2,392	$	3,377	$	9,220
Increase (decrease) in tax provision resulting from:
Distribution of previously taxed foreign earnings and profits	(16,776)		—		—
Federal research and development credits	(715)		(1,391)		(2,119)
Foreign permanent benefit	(1,620)		(1,137)		(2,842)
Foreign tax rate differential	15,133		(2,647)		(1,595)
Foreign undistributed earnings, net of credits	6,486		6,902		3,319
Liquidation of Cayman subsidiary	—		745		—
Non-deductible items	601		1,198		1,637
Non-territorial income	(2,323)		(2,993)		(2,493)
Provision to return	(435)		(533)		(343)
Sale of Argentina subsidiary	—		2,084		—
Sale of intangible asset	(3,385)		—		—
State and local taxes, net	(2,408)		(1,435)		(1,932)
Stock-based compensation	693		(616)		(266)
Tax rate change	(640)		—		(1,527)
Uncertain tax positions	—		—		(1,565)
Valuation allowance	12,058		4,632		3,109
Withholding tax	2,188		2,333		2,320
Other	(263)		260		410
Tax provision	$	10,986	$	10,779	$	5,333

At December 31, 2022, we had federal and state Research and Development ("R&D") income tax credit carryforwards of approximately $4.2 million and $12.8 million, respectively. The federal R&D income tax credits begin expiring in 2039. The state R&D income tax credits do not have an expiration date.

At December 31, 2022, we had state and local and foreign net operating loss carryforwards of approximately $50.6 million and $0.7 million, respectively. The state and local and foreign net operating loss carryforwards begin to expire in 2023 and 2027, respectively.

At December 31, 2022, we assessed the realizability of the Company's deferred tax assets by considering whether it is more likely than not some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. Due to cumulative operating losses for the three years ended in 2022, we have recorded a full valuation allowance against our U.S. federal and state deferred tax assets of $24.5 million and $20.1 million, respectively, as we have determined that it is more likely than not that the tax benefits will not be realized in the future. The valuation allowance increased by $12.1 million and $4.6 million during the years ended December 31, 2022 and 2021, respectively. We have an overall deferred tax liability for U.S. federal and state jurisdictions due to having indefinite lived deferred tax liabilities that cannot be used as a source of income to offset the deferred tax assets.

Uncertain Tax Positions

At December 31, 2022 and 2021, we had unrecognized tax benefits of approximately $3.2 million and $3.0 million, respectively, including interest and penalties. In accordance with accounting guidance, we have elected to classify interest and penalties as components of tax expense. Interest and penalties were immaterial for the year ended December 31, 2022, 2021, and 2020. Interest and penalties are included in the unrecognized tax benefits.

Changes to our gross unrecognized tax benefits were as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Balance at beginning of period	$	3,001	$	3,020	$	4,094
Additions as a result of tax provisions taken during the current year	149		226		274
Foreign currency translation	—		(13)		20
Lapse in statute of limitations	—		—		(51)
Settlements	—		(232)		—
Other	—		—		(1,317)
Balance at end of period	$	3,150	$	3,001	$	3,020

Approximately $3.2 million, $3.0 million and $3.0 million of the total amount of unrecognized tax benefits at December 31, 2022, 2021 and 2020, respectively, if not for the federal and state valuation allowance, would affect the annual effective tax rate, if recognized. We are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase within the next twelve months. We do not anticipate a decrease in unrecognized tax benefits within the next twelve months based on federal, state, and foreign statute expirations in various jurisdictions. We have classified uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year.

We file income tax returns in the U.S. jurisdiction and in various state and foreign jurisdictions. As of December 31, 2022, the open statutes of limitations for our significant tax jurisdictions are as follows: U.S. federal for 2019 through 2021, state and local for 2018 through 2021, and non-U.S. for 2016 through 2021.

Indefinite Reinvestment Assertion

Beginning in 2018, the Tax Act generally provides a 100% federal deduction for dividends received from foreign subsidiaries. Nevertheless, companies must still apply the guidance of ASC Topic 740 to account for the tax consequences of outside basis differences and other tax impacts of their investments in foreign subsidiaries, including potential foreign withholding taxes on distributions. For the years ended December 31, 2022, 2021 and 2020, we recorded a deferred tax liability of $0.5 million, $0.9 million and $2.1 million, respectively, relating to state tax and foreign tax withholding liabilities on future distributions.

Coronavirus Aid, Relief and Economic Security Act

On March 27, 2020, in response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security ("CARES") Act was signed into law. The CARES Act provides economic stimulus and relief to address the impact of the COVID-19 pandemic and includes provisions addressing the carryback of net operating losses for specific periods, refunds of alternative minimum tax credits, temporary modifications to limitations placed on the tax deductibility of net interest expenses, and technical amendments for qualified improvement property. Additionally, the CARES Act provides for refundable employee retention tax credits and the deferral of the employer-paid portion of Social Security taxes. For the years ended December 31, 2022, 2021 and 2020, respectively, the Company's income tax provision was not significantly impacted by the CARES Act. The Company will continue to closely monitor any effects from future legislation.

CHIPS and Science Act of 2022

On August 9, 2022, the CHIPS and Science Act of 2022 ("CHIPS Act") was enacted in the United States. The CHIPS Act will provide financial incentives to the semiconductor industry which are primarily directed at manufacturing activities within the United States for the qualifying property placed in service after December 31, 2022. As we currently outsource our manufacturing, the CHIPS Act is not expected to have a material impact to our consolidated tax provision for the year ending December 31, 2023.

Inflation Reduction Act of 2022

The Inflation Reduction Act of 2022 ("IRA") was signed into law on August 16, 2022. The bill was meant to address the high inflation rate in the United States through various climate, energy, healthcare and other incentives. These incentives are meant to be paid for by the tax provisions included in the IRA, such as a new 15 percent corporate minimum tax, a 1 percent new

excise tax on stock buybacks, additional IRS funding to improve taxpayer compliance and others. The IRA provisions are effective for tax years beginning after December 31, 2023.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Reportable Segment

An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. Our chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. Accordingly, we only have a single operating and reportable segment.

Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowance for credit losses, inventory valuation, impairment of long-lived assets, intangible assets and goodwill, business combinations, income taxes and related valuation allowances, stock-based compensation expense and performance-based common stock warrants. Actual results may differ from these assumptions and estimates, and they may be adjusted as more information becomes available. Any adjustment may be material.

Revenue Recognition

Revenue is recognized when control of a good or service is transferred to a customer. Control is considered to be transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of that good or service. Revenues are generated from manufacturing, shipping and supporting control and sensor technology solutions and a broad line of pre-programmed and universal control products, AV accessories, and intelligent wireless security and smart home products that are used in the video services, consumer electronics, security, home automation, climate control, and home appliance market, which are sold through multiple channels, and licensing intellectual property that is embedded in these products or licensed to others for use in their products. We also generate revenues from a cloud-based software solution enabling software updates, digital rights management provisioning and remote technical support to consumer electronics customers.

Revenue - Product revenue is generated through manufacturing, shipping and supporting control and sensor technology solutions and a broad line of pre-programmed and universal control products, AV accessories, and intelligent wireless security and smart home products that are used in the video services, consumer electronics, security, home automation, climate control, and home appliance market, which are sold through multiple channels. Our performance obligations are satisfied over time or at a point in time, depending on the nature of the product. Our contracts have an anticipated duration of less than a year and consideration may be variable based on indeterminate volumes.

Revenue is recognized over time 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, including a reasonable margin, through a contractual commitment from the customer. Custom products are those products for which 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.

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 sales in the period in which we make such a determination.

We license our symbolic intellectual property which includes our patented technologies and database of control codes. Royalty revenue is recognized for these licensing arrangements on an over time basis. We record license revenue for per-unit based licenses when our customers manufacture or ship a product incorporating our intellectual property and we have a present right to payment. We record per-unit-based licenses with minimum guarantees ratably over the license period to which the minimum guarantee relates and any per-unit sales in excess of the minimum guarantee in the period in which the sale occurs. We record licenses with fixed consideration ratably over the license period. Tiered royalties are recorded on a straight-line basis according to the forecasted per-unit fees taking into account the pricing tiers.

We recognize service revenues related to our cloud-based software solution on an over-time basis, as our customers simultaneously receive and consume the benefits provided by our performance. Revenues are recognized over the period during which the performance obligations are satisfied, and control of the service is transferred to the customers.

Contract assets - Contract assets represent the value of revenue recognized over time for which we have not yet invoiced the customer. Generally, we invoice the customer within 90 days of revenue recognition.

Contract liabilities - A contract liability is recorded when consideration is received from a customer prior to fully satisfying a performance obligation in a contract. Our contract liabilities primarily consist of cash received in advance of providing our cloud-based software services. These contract liabilities will be recognized as revenues when control of the related product or service is transferred to the customer. See Note 12 for further information concerning contract liabilities.

Other sales-related matters - Trade receivables are recorded at the invoiced amount and do not bear interest. Payment terms are typically on open credit terms consistent with industry practice and do not have significant financing components. 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. Such discounts were $12.2 million and $14.4 million at December 31, 2022 and 2021, respectively. Changes in such accruals may be required if future rebates and incentives differ from our estimates.

We present all non-income government-assessed taxes (sales, use and value added taxes) collected from our customers and remitted to governmental agencies on a net basis (excluded from revenue) in our financial statements. The government-assessed taxes are recorded in our consolidated balance sheets until they are remitted to the government agency.

Income Taxes

We provide for income taxes utilizing the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes are presented net as non-current by jurisdiction. The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the differences between the financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when a judgment is made that is considered more likely than not that a tax benefit will not be realized. A decision to record a valuation allowance results in an increase in income tax expense or a decrease in income tax benefit. If the valuation allowance is released in a future period, income tax expense will be reduced accordingly.

The calculation of tax liabilities involves dealing with uncertainties in the application of complex global tax regulations. The impact of an uncertain income tax position is recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. If the estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not, on a jurisdiction-by-jurisdiction basis, that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We continue to assess the need for a valuation allowance on the deferred tax asset by evaluating both positive and negative evidence that may exist. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the income statement for the period that the adjustment is determined to be required.

The Tax Cuts and Jobs Act (the "Tax Act") subjects a U.S. shareholder to tax on Global Intangible Low-Taxed Income ("GILTI") earned by certain foreign subsidiaries. We have elected to account for GILTI in the year the tax is incurred as a period expense.

See Note 10 for further information concerning income taxes.

Research and Development

Research and development costs are expensed as incurred and consist primarily of salaries, employee benefits, supplies and materials.

Advertising

Advertising costs are expensed as incurred. Advertising expense totaled $0.5 million, $0.8 million and $0.9 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Shipping and Handling Fees and Costs

We include shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with in-bound freight or amounts billed to customers are recorded in cost of sales. Other shipping and handling costs are included in selling, general and administrative expenses. Shipping and handling fees and costs totaled $10.8 million, $11.8 million and $9.9 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Stock-Based Compensation

We recognize the grant date fair value of stock-based compensation awards as expense in proportion to vesting during the requisite service period, which ranges from one to three years. Forfeitures of stock-based awards are accounted for as they occur. Upon the exercise of stock options or the vesting of restricted stock awards, newly issued shares of our common stock are issued.

We determine the fair value of restricted stock awards utilizing the average of the high and low trading prices of our common shares on the date they were granted.

The fair value of stock options granted to employees and directors is determined utilizing the Black-Scholes option pricing model. The assumptions utilized in the Black-Scholes model include the risk-free interest rate, expected volatility, expected life in years and dividend yield. The risk-free interest rate over the expected term is equal to the prevailing U.S. Treasury note rate over the same period. Expected volatility is determined utilizing historical volatility over a period of time equal to the expected life of the stock option. Expected life is computed utilizing historical exercise patterns and post-vesting behavior. The dividend yield is assumed to be zero since we have not historically declared dividends and do not have any plans to declare dividends in the future. See Note 15 for further information regarding stock-based compensation.

Performance-Based Common Stock Warrants

The measurement date for performance-based common stock warrants is the date on which the warrants vest. We recognize the fair value of performance-based common stock warrants as a reduction to net sales ratably as the warrants vest based on the projected number of warrants that will vest, the proportion of the performance criteria achieved by the customer within the period relative to the total performance required (aggregate purchase levels) for the warrants to vest and the fair value of the related unvested warrants. If we do not have a reliable forecast of future purchases to be made by the customer by which to estimate the number of warrants that will vest, then the maximum number of potential warrants is assumed until such time that a reliable forecast of future purchases is available. To the extent that our projections change in the future as to the number of warrants that will vest, a cumulative catch-up adjustment will be recorded in the period in which our estimates change. See Note 16 for further information regarding performance-based common stock warrants.

Foreign Currency Translation and Foreign Currency Transactions

We use the U.S. Dollar as our functional currency for financial reporting purposes. The functional currency for most of our foreign subsidiaries is their local currency. The translation of foreign currencies into U.S. Dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet dates and for revenue and expense accounts using the average exchange rate during each period. The gains and losses resulting from the translation are included in the foreign currency translation adjustment account, a component of accumulated other comprehensive income in stockholders' equity, and are excluded from net income. The portions of intercompany accounts receivable and accounts payable that are intended for settlement are translated at exchange rates in effect at the balance sheet date. Our intercompany foreign investments and long-term debt that are not intended for settlement are translated using historical exchange rates.

Transaction gains and losses generated by the effect of changes in foreign currency exchange rates on recorded assets and liabilities denominated in a currency different than the functional currency of the applicable entity are recorded in other income (expense), net. See Note 17 for further information concerning transaction gains and losses.

Earnings Per Share

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares and dilutive potential common shares, including the dilutive effect of stock options, restricted stock and common stock warrants, outstanding during the period. Dilutive potential common shares for all periods presented are computed utilizing the treasury stock method; however, dilutive potential common shares are excluded where their inclusion would be anti-dilutive.

Financial Instruments

Our financial instruments consist primarily of cash and cash equivalents, term deposit, accounts receivable, accounts payable, accrued liabilities, debt and derivatives. The carrying value of our financial instruments, excluding derivatives, approximates fair value as a result of their short maturities. Our derivatives are carried at fair value. See Notes 3, 4, 9, 11, 12 and 19 for further information concerning our financial instruments.

Cash, Cash Equivalents and Term Deposit

Cash and cash equivalents include cash accounts and all investments purchased with initial maturities of three months or less. Our term deposit had an initial maturity of one year, but was redeemed prior to December 31, 2022. Domestically, we generally maintain balances in excess of federally insured limits. We attempt to mitigate our exposure to liquidity, credit and other relevant risks by placing our cash, cash equivalents and term deposit with financial institutions we believe are high quality. These financial institutions are located in many different geographic regions. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of our financial institutions. We have not sustained credit losses from instruments held at financial institutions. See Note 3 for further information concerning cash, cash equivalents and term deposit.

Allowance for Credit Losses

We maintain an allowance for credit losses for estimated losses on our trade receivables, resulting from the inability of our customers to make payments for products sold or services rendered. The allowance for credit losses is based on a variety of factors, including credit reviews, historical experience, length of time receivables are past due, current economic trends and changes in customer payment behavior.

We also record specific provisions for individual accounts when we become aware of a customer's inability to meet its financial obligations to us, such as in the case of bankruptcy filings or deterioration in the customer's operating results or financial position. If circumstances related to a customer change, our estimates of the recoverability of the receivables would be further adjusted. See Note 4 for further information concerning our allowance for credit losses.

Inventories

Inventories consist of remote controls, wireless sensors and AV accessories, as well as the related component parts and raw materials. Inventoriable costs include materials, labor, freight-in and manufacturing overhead related to the purchase and production of inventories. We value our inventories at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. We attempt to carry inventories in amounts necessary to satisfy our customer requirements on a timely basis. See Note 5 for further information concerning our inventories and suppliers.

Product innovations and technological advances may shorten a given product's life cycle. We continually monitor our inventories to identify any excess or obsolete items on hand. We write down our inventories for estimated excess and obsolescence in an amount equal to the difference between the cost of the inventories and estimated net realizable value. These estimates are based upon management's judgment about future demand and market conditions.

Property, Plant, and Equipment

Property, plant, and equipment are recorded at cost. The cost of property, plant, and equipment includes the purchase price of the asset and all expenditures necessary to prepare the asset for its intended use. We capitalize additions and improvements and expense maintenance and repairs as incurred.

We capitalize certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software.

For financial reporting purposes, depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included as a component of depreciation expense.

Estimated useful lives are as follows:


Buildings			25-33 years
Tooling and equipment			2-7 Years
Computer equipment			3-5 Years
Software			3-7 Years
Furniture and fixtures			5-8 Years
Leasehold and building improvements			Lesser of lease term or useful life (approximately 2 to 10 years)

See Note 6 for further information concerning our property, plant, and equipment.

Leases

We determine if an arrangement is a lease at inception and determine the classification of the lease, as either operating or finance, at commencement. Operating leases are included in operating lease right-of-use ("ROU") assets, other accrued liabilities and long-term operating lease obligations on our consolidated balance sheets. We presently do not have any finance leases.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of lease payments. Operating lease ROU assets also factor in any lease payments made, initial direct costs and lease incentives received. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Some of our leases include options to extend with a range of three years to five years with two extensions at the then current market rate. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Leases with an initial term of twelve months or less, or on a month-to-month basis, are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. If applicable, we combine lease and non-lease components, which primarily relate to ancillary expenses associated with real estate leases such as common area maintenance charges and management fees.

See Note 8 for further information concerning our leases.

Goodwill

We record the excess purchase price of net tangible and intangible assets acquired over their estimated fair value as goodwill. We evaluate the carrying value of goodwill on December 31 of each year and between annual evaluations if events occur or circumstances change that may reduce the fair value of the reporting unit below its carrying amount. Such circumstances may include, but are not limited to: (1) a significant adverse change in legal factors or in business climate, (2) a decline in macroeconomic conditions, (3) a significant decline in our financial performance or (4) a significant decline in the price of our common stock for a sustained period of time.

We perform our annual impairment test using a qualitative assessment weighing the relative impact of factors that are specific to our single reporting unit as well as industry and macroeconomic factors. Based on the qualitative assessment performed, considering the aggregation of the relevant factors, we concluded that it is not more likely than not that the fair value of our single reporting unit is less than the carrying value. Therefore, performing a quantitative impairment test was unnecessary.

See Note 7 for further information concerning goodwill.

Long-Lived and Intangible Assets Impairment

Intangible assets consist of capitalized software development costs, customer relationships, developed and core technologies, distribution rights, patents and trademarks and trade names. Capitalized amounts related to patents represent external legal costs for the application, maintenance and extension of the useful life of patents. Intangible assets are amortized using the straight-line method over their estimated period of benefit, ranging from two to 15 years.

We assess the impairment of long-lived assets and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important which may trigger an impairment review include the following: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in the manner or use of the assets or strategy for the overall business; (3) significant negative industry or economic trends; and (4) a significant decline in our stock price for a sustained period.

We conduct an impairment review when we determine that the carrying value of a long-lived or intangible asset may not be recoverable based upon the existence of one or more of the above indicators of impairment. The asset is impaired if its carrying value exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. In assessing recoverability, we make assumptions regarding estimated future cash flows and other factors.

An impairment loss is the amount by which the carrying value of an asset exceeds its fair value. We estimate fair value utilizing the projected discounted cash flow method and a discount rate determined by our management to be commensurate with the risk inherent in our current business model. When calculating fair value, we make assumptions regarding estimated future cash flows, discount rates and other factors.

See Note 6 for further information concerning long-lived assets. See Note 7 for further information concerning intangible assets.

Business Combinations

We allocate the purchase price of acquired businesses to the tangible and intangible assets and the liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. We engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed. Such valuations require management to make significant fair value estimates and assumptions, especially with respect to intangible assets and contingent consideration. Management estimates the fair value of certain intangible assets and contingent consideration by utilizing the following (but not limited to):

•future cash flow from customer contracts, customer lists, distribution agreements, acquired developed technologies, trademarks, trade names and patents;

•expected costs to complete development of in-process technology into commercially viable products and cash flows from the products once they are completed;

•brand awareness and market position, as well as assumptions regarding the period of time the brand will continue to be used in our product portfolio; and

•discount rates utilized in discounted cash flow models.

Results of operations and cash flows of acquired businesses are included in our operating results from the date of acquisition.

In those circumstances where an acquisition involves a contingent consideration arrangement, we recognize a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We re-measure this liability at each reporting period and record changes in the fair value within operating expenses. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of earnings estimates or in the timing or likelihood of achieving earnings-based milestones. Contingent consideration is recorded in other accrued liabilities and long-term contingent consideration in our consolidated balance sheets.

See Note 21 for further information concerning business combinations.

Derivatives

Our foreign currency exposures are primarily concentrated in the Brazilian Real, British Pound, Chinese Yuan Renminbi, Euro, Hong Kong Dollar, Indian Rupee, Japanese Yen, Korean Won and Mexican Peso. We periodically enter into foreign currency exchange contracts with terms normally lasting less than nine months, to protect against the adverse effects that exchange-rate fluctuations may have on our foreign currency-denominated receivables, payables, cash flows and reported income. We do not enter into financial instruments for speculation or trading purposes.

The derivatives we enter into have not qualified for hedge accounting. The gains and losses on both the derivatives and the foreign currency-denominated balances are recorded as foreign exchange transaction gains or losses and are classified in other income (expense), net. Derivatives are recorded on the balance sheet at fair value. The estimated fair value of derivative financial instruments represents the amount required to enter into similar offsetting contracts with similar remaining maturities based on quoted market prices. See Note 19 for further information concerning derivatives.

Fair-Value Measurements

We measure fair value using the framework established by the FASB in ASC Topic 820 for fair value measurements and disclosures. This framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants.

The valuation techniques are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources. Unobservable inputs require management to make certain assumptions and judgments based on the best information available. Observable inputs are the preferred data source. These two types of inputs result in the following fair value hierarchy:


Level 1:			Quoted prices (unadjusted) for identical instruments in active markets.

Level 2:			Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3:			Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable.

Recently Adopted Accounting Pronouncements

In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers". This guidance requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, "Revenue from Contracts with Customers". At the acquisition date, the acquirer applies the revenue recognition model as if it had originated the acquired contracts. Our adoption of this guidance on January 1, 2022 did not have a material impact on our consolidated statement of financial position, results of operations and cash flows.

Other Accounting Pronouncements

Accounting Updates Not Yet Effective

In March 2020, the FASB issued ASU 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting", in January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform", and in December 2022, the FASB issued ASU 2022-06, "Deferral of the Sunset Date of Topic 848". This guidance is intended to provide temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The amendments in these ASUs are elective and are effective upon issuance for all entities through December 31, 2024. These amendments are not expected to have a material impact on our consolidated statement of financial position, results of operations and cash flows.

Stock-Based Compensation - Detailed Information Regarding Active Stock Incentive Plans (Details)	12 Months Ended
	Dec. 31, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining shares available for grant under the plan (in shares)	777,152
Outstanding shares granted under the plan (in shares)	1,158,575
2010 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares available for grant under the plan (in shares)	1,000,000
Remaining shares available for grant under the plan (in shares)	0
Outstanding shares granted under the plan (in shares)	13,219
2014 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares available for grant under the plan (in shares)	1,100,000
Remaining shares available for grant under the plan (in shares)	0
Outstanding shares granted under the plan (in shares)	269,891
2018 Equity and Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares available for grant under the plan (in shares)	2,196,344
Remaining shares available for grant under the plan (in shares)	777,152
Outstanding shares granted under the plan (in shares)	875,465
Number of additional shares authorized (in shares)	1,100,000

Line of Credit	12 Months Ended
Line of Credit	Dec. 31, 2022
Debt Disclosure [Abstract]
Line of Credit	Line of Credit Our Second Amended and Restated Credit Agreement ("Second Amended Credit Agreement") with U.S. Bank National Association ("U.S. Bank") provides for a $125.0 million revolving line of credit ("Credit Line") that expires on November 1, 2023. We expect to renew our credit agreement with U.S. Bank, for an additional two years, prior to its expiration. The Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. Amounts available for borrowing under the Credit Line are reduced by the balance of any outstanding letters of credit, of which there were none at December 31, 2022. 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 a guaranty of the Credit Line by our wholly-owned subsidiary, Universal Electronics BV. 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 rates in effect at December 31, 2022 and 2021 were 5.62% and 1.35%, respectively. There are no commitment fees or unused line fees under the Second Amended Credit Agreement. On December 31, 2021, the process of cessation of LIBOR as a reference rate began. Between December 31, 2021 and June 30, 2023, any borrowings under our existing Second Amended Credit Agreement may continue to use LIBOR as the basis for interest rates. If the Second Amended Credit Agreement is amended or replaced during this period, any borrowings will no longer use LIBOR as a reference rate and instead will be subject to an interest rate based on either the Secured Overnight Financing Rate ("SOFR"), which is deemed a replacement benchmark for LIBOR under the Second Amended Credit Agreement, or an alternate index to be agreed upon. After June 30, 2023, all borrowings will be based on SOFR or the alternate index. 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 December 31, 2022, we were in compliance with the covenants and conditions of the Second Amended Credit Agreement. At December 31, 2022, we had $88.0 million outstanding under the Credit Line. Our total interest expense on borrowings was $3.3 million, $0.9 million and $1.6 million during the years ended December 31, 2022, 2021 and 2020, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Stock-Based Compensation - Assumptions Used and Weighted Average Fair Value of Stock Option Grants (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Payment Arrangement [Abstract]
Weighted average fair value of grants (in dollars per share)	$ 14.51	$ 23.97	$ 17.70
Risk-free interest rate	1.93%	0.41%	1.44%
Expected volatility	49.35%	48.49%	43.95%
Expected life in years	4 years 8 months 23 days	4 years 7 months 13 days	4 years 7 months 2 days

Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 07, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
Loss on disposition of business	$ 6,100	$ 0	$ 6,050	$ 0

Inventories and Significant Suppliers - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 58,759	$ 52,617
Components	25,226	25,289
Work in process	2,616	7,102
Finished goods	53,580	49,461
Inventories	$ 140,181	$ 134,469

Inventories and Significant Suppliers (Tables)

12 Months Ended

Dec. 31, 2022

Inventory Disclosure [Abstract]

Inventories, Net

Inventories were as follows:


	December 31,
(In thousands)	2022		2021
Raw materials	$	58,759	$	52,617
Components	25,226		25,289
Work in process	2,616		7,102
Finished goods	53,580		49,461
Inventories	$	140,181	$	134,469

Purchases from Significant Suppliers

We purchase integrated circuits, components and finished goods from multiple sources. Purchases from the following supplier totaled 10% of our total inventory purchases:


	Year Ended December 31,
	2022				2021				2020
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Qorvo International Pte Ltd.	$	33,293	11.5	%	$	38,712	11.8	%	$	43,543	14.2	%

Purchases from the following supplier totaled more than 10% of our total accounts payable:


	December 31,
	2022						2021
	$ (thousands)			% of Total Accounts Payable			$ (thousands)		% of Total Accounts Payable
Zhejiang Zhen You Electronics Co. Ltd.	$	—	(1)	—	%	(1)	$	9,862	10.6	%

(1) Accounts payable associated with this supplier did not total more than 10% of our accounts payable for the indicated period.

Derivatives - Total Net Fair Value of Derivatives (Details) - Foreign currency exchange contracts - Measured on a recurring basis - Not designated as hedging instrument - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Total Balance
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	$ 100	$ (92)
Level 1
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	0	0
Level 2
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	100	(92)
Level 3
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts	$ 0	$ 0

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Taxes [Line Items]
Valuation allowance	$ 44,596,000	$ 32,538,000
Increase in valuation allowance	12,100,000	4,600,000
Unrecognized tax benefits including interest and penalties	3,200,000	3,000,000
Interest and penalties	0	0	$ 0
Unrecognized tax benefits that would impact effective tax rate	3,200,000	3,000,000	3,000,000
Deferred tax liability related to state tax liabilities on future distributions	500,000	$ 900,000	$ 2,100,000
Federal
Income Taxes [Line Items]
Valuation allowance	24,500,000
State
Income Taxes [Line Items]
Net operating losses	50,600,000
Valuation allowance	20,100,000
Foreign
Income Taxes [Line Items]
Net operating losses	700,000
Research and experimentation \| Federal
Income Taxes [Line Items]
Income tax credit carryforwards	4,200,000
Research and experimentation \| State
Income Taxes [Line Items]
Income tax credit carryforwards	$ 12,800,000

Derivatives - Foreign Currency Exchange Contracts (Details) - Not designated as hedging instrument $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) $ / € $ / ¥	Dec. 31, 2021 USD ($) $ / € $ / ¥
USD/Chinese Yuan Renminbi
Derivative [Line Items]
Notional value	$ 31,000	$ 19,000
Forward Rate \| $ / ¥	7.0358	6.3777
Unrealized gain (loss) recorded at balance sheet date	$ 528	$ 38
USD/Euro
Derivative [Line Items]
Notional value	$ 26,000	$ 31,000
Forward Rate \| $ / €	1.0529	1.1336
Unrealized gain (loss) recorded at balance sheet date	$ (428)	$ (130)

Accrued Compensation (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Components of Accrued Compensation
Accrued bonus	$ 3,348	$ 3,460
Accrued commission	609	1,140
Accrued salary/wages	4,433	6,234
Accrued social insurance	7,037	7,562
Accrued vacation/holiday	3,300	3,343
Other accrued compensation	2,177	2,478
Total accrued compensation	$ 20,904	$ 24,217

Accrued Compensation - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2018	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accrued social insurance adjustment			$ 0	$ 0	$ 9,464
Disposed of by sale \| Guangzhou entity
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Indemnification period		2 years
Accrued social insurance adjustment	$ 9,500

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2022

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, 2020	$	48,614
Foreign exchange effects	(151)
Balance at December 31, 2021	48,463
Goodwill acquired during the period (1)	713
Foreign exchange effects	(91)
Balance at December 31, 2022	$	49,085

Components of Intangible Assets

The components of intangible assets, net were as follows:


	December 31,
	2022						2021
(In thousands)	Gross (1)		Accumulated Amortization (1)		Net (1)		Gross (1)		Accumulated Amortization (1)		Net (1)
Capitalized software development costs (2 years)	$	1,647	$	(44)	$	1,603	$	1,066	$	(27)	$	1,039
Customer relationships (10-15 years)	6,340		(3,080)		3,260		5,000		(2,375)		2,625
Developed and core technology (5-15 years)	4,520		(3,693)		827		4,080		(3,335)		745
Distribution rights (10 years)	308		(281)		27		325		(269)		56
Patents (10 years)	29,388		(10,790)		18,598		24,518		(9,015)		15,503
Trademarks and trade names (10 years)	450		(295)		155		800		(599)		201
Total intangible assets, net	$	42,653	$	(18,183)	$	24,470	$	35,789	$	(15,620)	$	20,169

(1)This table excludes the gross value of fully amortized intangible assets totaling $43.7 million and $43.2 million on December 31, 2022 and 2021, respectively.

Amortization Expense by Income Statement Caption

Amortization expense by statement of operations caption was as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Cost of sales	$	49	$	27	$	—
Selling, general and administrative expenses	3,969		3,963		6,500
Total amortization expense	$	4,018	$	3,990	$	6,500

Estimated Future Amortization Expense Related to Intangible Assets

Estimated future annual amortization expense related to our intangible assets at December 31, 2022, is as follows:


(In thousands)
2023	$	4,821
2024	4,545
2025	3,705
2026	3,188
2027	2,596
Thereafter	5,615
Total	$	24,470

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
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-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
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-Paragraph 1
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-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
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-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
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-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Leases - Lease Balances within the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets:
Operating lease right-of-use assets	$ 21,599	$ 19,847
Liabilities:
Other accrued liabilities	5,509	4,769
Long-term operating lease obligations	15,027	14,266
Total lease liabilities	$ 20,536	$ 19,035
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Accrued Liabilities, Current	Other Accrued Liabilities, Current

Leases - Operating Lease Expense, Operating lease Cash Flows and Supplemental Cash flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Total operating lease expense	$ 7,296	$ 6,659
Operating cash outflows from operating leases	7,427	6,555
Operating lease right-of-use assets obtained in exchange for lease obligations	8,756	7,017
Non-cash release of operating lease obligations	0	654
Cost of sales
Lessee, Lease, Description [Line Items]
Total operating lease expense	2,822	2,508
Selling, general and administrative expenses
Lessee, Lease, Description [Line Items]
Total operating lease expense	$ 4,474	$ 4,151

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Principles of Consolidation

Reportable Segment

Estimates and Assumptions

Revenue Recognition

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.

Shipping and Handling Fees and CostsWe include shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with in-bound freight or amounts billed to customers are recorded in cost of sales. Other shipping and handling costs are included in selling, general and administrative expenses.

Income Taxes

Research and Development

Research and development costs are expensed as incurred and consist primarily of salaries, employee benefits, supplies and materials.

Advertising

AdvertisingAdvertising costs are expensed as incurred.

Stock-Based Compensation

We determine the fair value of restricted stock awards utilizing the average of the high and low trading prices of our common shares on the date they were granted.

Performance-Based Common Stock Warrants

Performance-Based Common Stock Warrants The measurement date for performance-based common stock warrants is the date on which the warrants vest. We recognize the fair value of performance-based common stock warrants as a reduction to net sales ratably as the warrants vest based on the projected number of warrants that will vest, the proportion of the performance criteria achieved by the customer within the period relative to the total performance required (aggregate purchase levels) for the warrants to vest and the fair value of the related unvested warrants. If we do not have a reliable forecast of future purchases to be made by the customer by which to estimate the number of warrants that will vest, then the maximum number of potential warrants is assumed until such time that a reliable forecast of future purchases is available. To the extent that our projections change in the future as to the number of warrants that will vest, a cumulative catch-up adjustment will be recorded in the period in which our estimates change.

Foreign Currency Translation and Foreign Currency Transactions

Earnings Per Share

Financial Instruments

Financial InstrumentsOur financial instruments consist primarily of cash and cash equivalents, term deposit, accounts receivable, accounts payable, accrued liabilities, debt and derivatives. The carrying value of our financial instruments, excluding derivatives, approximates fair value as a result of their short maturities. Our derivatives are carried at fair value.

Cash, Cash Equivalents, and Term Deposit

Cash, Cash Equivalents and Term DepositCash and cash equivalents include cash accounts and all investments purchased with initial maturities of three months or less. Our term deposit had an initial maturity of one year, but was redeemed prior to December 31, 2022. Domestically, we generally maintain balances in excess of federally insured limits. We attempt to mitigate our exposure to liquidity, credit and other relevant risks by placing our cash, cash equivalents and term deposit with financial institutions we believe are high quality. These financial institutions are located in many different geographic regions. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of our financial institutions. We have not sustained credit losses from instruments held at financial institutions.

Allowance for Bad Debts

Allowance for Credit Losses

Inventories

Property, Plant and Equipment

Property, Plant, and Equipment

Estimated useful lives are as follows:


Buildings			25-33 years
Tooling and equipment			2-7 Years
Computer equipment			3-5 Years
Software			3-7 Years
Furniture and fixtures			5-8 Years
Leasehold and building improvements			Lesser of lease term or useful life (approximately 2 to 10 years)

Leases

Goodwill

Long-Lived and Intangible Assets Impairment

Business Combinations

•future cash flow from customer contracts, customer lists, distribution agreements, acquired developed technologies, trademarks, trade names and patents;

•expected costs to complete development of in-process technology into commercially viable products and cash flows from the products once they are completed;

•brand awareness and market position, as well as assumptions regarding the period of time the brand will continue to be used in our product portfolio; and

•discount rates utilized in discounted cash flow models.

Results of operations and cash flows of acquired businesses are included in our operating results from the date of acquisition.

Derivatives

Fair-Value Measurements


Level 1:			Quoted prices (unadjusted) for identical instruments in active markets.

Level 2:			Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3:			Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable.

Recently Adopted Accounting Pronouncements and Accounting Updates Not Yet Effective

Recently Adopted Accounting Pronouncements

Other Accounting Pronouncements

Accounting Updates Not Yet Effective

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current tax expense:
U.S. federal	$ 573	$ 2	$ (193)
State and local	73	75	(54)
Foreign	8,523	12,386	6,525
Total current	9,169	12,463	6,278
Deferred tax (benefit) expense:
U.S. federal	230	584	0
State and local	36	90	0
Foreign	1,551	(2,358)	(945)
Total deferred	1,817	(1,684)	(945)
Total provision for income taxes	$ 10,986	$ 10,779	$ 5,333

Revenue and Accounts Receivable, Net - Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 542,751	$ 601,602	$ 614,680
Goods and services transferred at a point in time
Disaggregation of Revenue [Line Items]
Net sales	450,227	498,554	495,033
Goods and services transferred over time
Disaggregation of Revenue [Line Items]
Net sales	$ 92,524	$ 103,048	$ 119,647

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

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-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue and Accounts Receivable, Net

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Revenue and Accounts Receivable, Net

Revenue Details

The pattern of revenue recognition was as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Goods and services transferred at a point in time	$	450,227	$	498,554	$	495,033
Goods and services transferred over time	92,524		103,048		119,647
Net sales	$	542,751	$	601,602	$	614,680

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


	Year Ended December 31,
(In thousands)	2022		2021		2020
United States	$	167,501	$	200,136	$	255,651
Asia (excluding the PRC)	127,702		127,140		117,142
Europe	103,993		126,551		108,185
People's Republic of China	85,215		87,866		88,246
Latin America	28,363		25,943		17,481
Other	29,977		33,966		27,975
Total net sales	$	542,751	$	601,602	$	614,680

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

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


	Year Ended December 31,
	2022				2021				2020
	$ (thousands)		% of Net Sales		$ (thousands)		% of Net Sales		$ (thousands)			% of Net Sales
Comcast Corporation	$	78,781	14.5	%	$	98,361	16.3	%	$	123,574		20.1	%
Daikin Industries Ltd.	$	78,413	14.4	%	$	70,793	11.8	%	$	—	(1)	—	%	(1)

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

Accounts Receivable, Net

Accounts receivable, net were as follows:


	December 31,
(In thousands)	2022		2021
Trade receivables, gross	$	108,030	$	122,508
Allowance for credit losses	(957)		(1,285)
Allowance for sales returns	(618)		(592)
Trade receivables, net	106,455		120,631
Other (1)	5,891		8,584
Accounts receivable, net	$	112,346	$	129,215

(1) Other accounts receivable is primarily comprised of value added tax and supplier rebate receivables.

Allowance for Credit Losses

Changes in the allowance for credit losses were as follows:


(In thousands)	Year Ended December 31,
	2022		2021		2020
Balance at beginning of period	$	1,285	$	1,412	$	1,492
Additions (reductions) to costs and expenses	(182)		—		332
Cash receipts	—		—		(157)
Write-offs/Foreign exchange effects	(146)		(127)		(255)
Balance at end of period	$	957	$	1,285	$	1,412

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


	December 31,
	2022				2021
	$ (thousands)		% of Accounts Receivable, Net		$ (thousands)			% of Accounts Receivable, Net
Comcast Corporation	$	15,367	13.7	%	$	—	(1)	—	%	(1)

(1) Trade receivables associated with this customer did not total more than 10% of our accounts receivable, net for the indicated period.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock Issued	Common Stock in Treasury	Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2019		24,118
Beginning Balance at Dec. 31, 2019	$ 274,399	$ 241	$ (277,817)	$ 288,338	$ (22,781)	$ 286,418
Beginning balance (in shares) at Dec. 31, 2019			(10,174)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	38,572					38,572
Currency translation adjustment	4,259				4,259
Change in foreign currency translation due to sale of Argentina subsidiary	0
Shares issued for employee benefit plan and compensation (in shares)		169
Shares issued for employee benefit plan and compensation	$ 1,136	$ 1		1,135
Purchase of treasury shares (in shares)	(444)		(444)
Purchase of treasury shares	$ (17,678)		$ (17,678)
Stock options exercised (in shares)	80	80
Stock options exercised	$ 2,805	$ 1		2,804
Shares Issued to directors (in shares)		25
Shares issued to directors	0	$ 1		(1)
Employee and director stock-based compensation	9,122			9,122
Performance-based common stock warrants	686			686
Ending balance (in shares) at Dec. 31, 2020		24,392
Ending Balance at Dec. 31, 2020	313,301	$ 244	$ (295,495)	302,084	(18,522)	324,990
Ending balance (in shares) at Dec. 31, 2020			(10,618)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,301					5,301
Currency translation adjustment	(427)				(427)
Change in foreign currency translation due to sale of Argentina subsidiary	5,425				5,425
Shares issued for employee benefit plan and compensation (in shares)		203
Shares issued for employee benefit plan and compensation	$ 1,092	$ 2		1,090
Purchase of treasury shares (in shares)	(1,243)		(1,243)
Purchase of treasury shares	$ (59,664)		$ (59,664)
Stock options exercised (in shares)	54	54
Stock options exercised	$ 1,638	$ 1		1,637
Shares Issued to directors (in shares)		30
Shares issued to directors	0	$ 0		0
Employee and director stock-based compensation	9,969			9,969
Performance-based common stock warrants	(686)			(686)
Ending balance (in shares) at Dec. 31, 2021		24,679
Ending Balance at Dec. 31, 2021	275,949	$ 247	$ (355,159)	314,094	(13,524)	330,291
Ending balance (in shares) at Dec. 31, 2021			(11,861)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	407					407
Currency translation adjustment	(7,663)				(7,663)
Change in foreign currency translation due to sale of Argentina subsidiary	0
Shares issued for employee benefit plan and compensation (in shares)		212
Shares issued for employee benefit plan and compensation	$ 1,199	$ 2		1,197
Purchase of treasury shares (in shares)	(434)		(434)
Purchase of treasury shares	$ (13,035)		$ (13,035)
Stock options exercised (in shares)	80	80
Stock options exercised	$ 1,536	$ 1		1,535
Shares Issued to directors (in shares)		29
Shares issued to directors	0	$ 0		0
Employee and director stock-based compensation	10,013			10,013
Ending balance (in shares) at Dec. 31, 2022		25,000
Ending Balance at Dec. 31, 2022	$ 268,406	$ 250	$ (368,194)	$ 326,839	$ (21,187)	$ 330,698
Ending balance (in shares) at Dec. 31, 2022			(12,295)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Pre-Tax Income (Loss) by Jurisdiction

In 2022, 2021 and 2020, pre-tax income (loss) was attributed to the following jurisdictions:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Domestic operations	$	(69,058)	$	(38,024)	$	(15,711)
Foreign operations	80,451		54,104		59,616
Total pre-tax income (loss)	$	11,393	$	16,080	$	43,905

Provision for Income Taxes

The provision for income taxes charged to operations was as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Current tax expense:
U.S. federal	$	573	$	2	$	(193)
State and local	73		75		(54)
Foreign	8,523		12,386		6,525
Total current	9,169		12,463		6,278
Deferred tax (benefit) expense:
U.S. federal	230		584		—
State and local	36		90		—
Foreign	1,551		(2,358)		(945)
Total deferred	1,817		(1,684)		(945)
Total provision for income taxes	$	10,986	$	10,779	$	5,333

Net Deferred Tax Assets

Net deferred tax assets were comprised of the following:


	December 31,
(In thousands)	2022		2021
Deferred tax assets:
Accrued liabilities	$	—	$	6,483
Accounts receivable	5,657		—
Amortization of intangible assets	5,977		1,412
Capitalized inventory costs	5,060		4,183
Capitalized research & development costs	4,632		—
Depreciation	5,067		4,289
Income tax credits	17,234		17,513
Inventory reserves	2,258		2,621
Net operating losses	3,770		3,512
Operating lease obligations	4,212		4,469
Stock-based compensation	4,288		4,569
Other	—		4,431
Total deferred tax assets	58,155		53,482
Deferred tax liabilities:
Accrued liabilities	(5,273)		—
Accounts receivable	—		(10,919)
Right of use assets	(4,407)		(4,690)
Other	(361)		—
Total deferred tax liabilities	(10,041)		(15,609)
Net deferred tax assets before valuation allowance	48,114		37,873
Less: Valuation allowance	(44,596)		(32,538)
Net deferred tax assets	$	3,518	$	5,335

Reconciliation of Tax Provision at Statutory U.S. Rate to Provision for Income Taxes


	Year Ended December 31,
(In thousands)	2022		2021		2020
Tax provision at statutory U.S. rate	$	2,392	$	3,377	$	9,220
Increase (decrease) in tax provision resulting from:
Distribution of previously taxed foreign earnings and profits	(16,776)		—		—
Federal research and development credits	(715)		(1,391)		(2,119)
Foreign permanent benefit	(1,620)		(1,137)		(2,842)
Foreign tax rate differential	15,133		(2,647)		(1,595)
Foreign undistributed earnings, net of credits	6,486		6,902		3,319
Liquidation of Cayman subsidiary	—		745		—
Non-deductible items	601		1,198		1,637
Non-territorial income	(2,323)		(2,993)		(2,493)
Provision to return	(435)		(533)		(343)
Sale of Argentina subsidiary	—		2,084		—
Sale of intangible asset	(3,385)		—		—
State and local taxes, net	(2,408)		(1,435)		(1,932)
Stock-based compensation	693		(616)		(266)
Tax rate change	(640)		—		(1,527)
Uncertain tax positions	—		—		(1,565)
Valuation allowance	12,058		4,632		3,109
Withholding tax	2,188		2,333		2,320
Other	(263)		260		410
Tax provision	$	10,986	$	10,779	$	5,333

Changes to Gross Unrecognized Tax Benefits

Changes to our gross unrecognized tax benefits were as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Balance at beginning of period	$	3,001	$	3,020	$	4,094
Additions as a result of tax provisions taken during the current year	149		226		274
Foreign currency translation	—		(13)		20
Lapse in statute of limitations	—		—		(51)
Settlements	—		(232)		—
Other	—		—		(1,317)
Balance at end of period	$	3,150	$	3,001	$	3,020

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 66,740	$ 60,813
Accounts receivable, net	112,346	129,215
Contract assets	7,996	5,012
Inventories	140,181	134,469
Prepaid expenses and other current assets	6,647	7,289
Income tax receivable	4,130	348
Total current assets	338,040	337,146
Property, plant and equipment, net	62,791	74,647
Goodwill	49,085	48,463
Intangible assets, net	24,470	20,169
Operating lease right-of-use assets	21,599	19,847
Deferred income taxes	6,242	7,729
Other assets	1,936	2,347
Total assets	504,163	510,348
Current liabilities:
Accounts payable	71,373	92,707
Line of credit	88,000	56,000
Accrued compensation	20,904	24,217
Accrued sales discounts, rebates and royalties	6,477	9,286
Accrued income taxes	5,585	3,737
Other accrued liabilities	24,134	30,840
Total current liabilities	216,473	216,787
Long-term liabilities:
Operating lease obligations	15,027	14,266
Deferred income taxes	2,724	2,394
Income tax payable	723	939
Other long-term liabilities	810	13
Total liabilities	235,757	234,399
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding	0	0
Common stock, $0.01 par value, 50,000,000 shares authorized; 24,999,951 and 24,678,942 shares issued on December 31, 2022 and 2021, respectively	250	247
Paid-in capital	326,839	314,094
Treasury stock, at cost, 12,295,305 and 11,861,198 shares on December 31, 2022 and 2021, respectively	(368,194)	(355,159)
Accumulated other comprehensive income (loss)	(21,187)	(13,524)
Retained earnings	330,698	330,291
Total stockholders' equity	268,406	275,949
Total liabilities and stockholders' equity	$ 504,163	$ 510,348

Performance-Based Common Stock Warrants - Narrative (Details) - Common stock purchase warrants - $ / shares	Dec. 31, 2022	Mar. 09, 2016
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)		$ 54.55
Number of shares called by warrants (in shares)	275,000

Treasury Stock

12 Months Ended

Dec. 31, 2022

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 February 10, 2022, our Board approved a share repurchase program with an effective date of February 22, 2022 (the "February 2022 Program"). Pursuant to the February 2022 Program, we were authorized to repurchase up to 300,000 shares of our common stock until the Program's expiration on May 5, 2022. Per the terms of the February 2022 Program, we could utilize various methods to effect the repurchases, including open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some or all of which could be effected through Rule 10b5-1 plans. As of May 2, 2022, we repurchased the full 300,000 shares under the February 2022 Program.

We also repurchase shares of our issued and outstanding common stock to satisfy the cost of stock option exercises and/or income tax withholding obligations relating to the stock-based compensation of our employees and directors.

Repurchased shares of our common stock were as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Open market shares repurchased	300		1,151		325
Stock-based compensation related shares repurchased	134		92		119
Total shares repurchased	434		1,243		444

Cost of open market shares repurchased	$	9,437	$	54,868	$	11,851
Cost of stock-based compensation related shares repurchased	3,598		4,796		5,827
Total cost of shares repurchased	$	13,035	$	59,664	$	17,678

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.

Treasury Stock (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Repurchased Shares of Common Stock

Repurchased shares of our common stock were as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Open market shares repurchased	300		1,151		325
Stock-based compensation related shares repurchased	134		92		119
Total shares repurchased	434		1,243		444

Cost of open market shares repurchased	$	9,437	$	54,868	$	11,851
Cost of stock-based compensation related shares repurchased	3,598		4,796		5,827
Total cost of shares repurchased	$	13,035	$	59,664	$	17,678

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Universal Electronics Inc. ("UEI"), based in Scottsdale, Arizona, designs, develops, manufactures, ships and supports control and sensor technology solutions and a broad line of universal control systems, audio-video ("AV") accessories, and intelligent wireless security and smart home products that are used by the world's leading brands in the video services, consumer electronics, security, home automation, climate control, and home appliance markets. In addition, over the past 37 years, we have developed a broad portfolio of patented technologies and cloud-based connectivity and control software solutions that we license to our customers, including many leading Fortune 500 companies. Distribution methods for our control solutions vary depending on the sales channel. We license our connectivity and control solution technologies across a variety of channels, primarily to original equipment manufacturers ("OEMs"). We distribute remote control devices, integrated circuits, sensors, connected thermostats and AV accessories directly to video and security service providers and OEMs, both domestically and internationally. We also distribute home security sensors and connected thermostats to pro-security installers and hospitality system integrators in the United States and Europe through a network of national and regional distributors and dealers. Additionally, we sell our wireless control devices and AV accessories under the One For All® and private label brand names to retailers through our international subsidiaries and direct to retailers in key markets, such as in the United States, United Kingdom, Germany, France, Spain, and Italy. We utilize third-party distributors for the retail channel in countries where we do not have subsidiaries. As used herein, the terms "we", "us" and "our" refer to Universal Electronics Inc. and its subsidiaries unless the context indicates to the contrary.

Summary of Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	25 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	33 years
Tooling and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Tooling and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Computer equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Computer equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Software \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Leasehold and building improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Leasehold and building improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2022	Mar. 03, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	0-21044
Entity Registrant Name	UNIVERSAL ELECTRONICS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0204817
Entity Address, Address Line One	15147 N. Scottsdale Road, Suite H300
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85254-2494
City Area Code	480
Local Phone Number	530-3000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	UEIC
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 213,789,783
Entity Common Stock, Shares Outstanding		12,781,862
Documents Incorporated by Reference	Portions of the registrant's notice of annual meeting of shareholders and proxy statement to be filed pursuant to Regulation 14A within 120 days after registrant's fiscal year end of December 31, 2022 are incorporated by reference into Part III of this Form 10-K. The Proxy Statement will be filed with the Securities and Exchange Commission no later than April 30, 2023. Except as otherwise stated, the information contained in this Form 10-K is as of December 31, 2022.
Entity Central Index Key	0000101984
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY

Revenue and Accounts Receivable, Net - Net Sales to Significant Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue, Major Customer [Line Items]
Net sales	$ 542,751	$ 601,602	$ 614,680
Comcast Corporation
Revenue, Major Customer [Line Items]
Net sales	$ 78,781	$ 98,361	$ 123,574
Comcast Corporation \| Customer concentration risk \| Revenue from contract with customer benchmark
Revenue, Major Customer [Line Items]
% of Net Sales	14.50%	16.30%	20.10%
Daikin Industries Ltd.
Revenue, Major Customer [Line Items]
Net sales	$ 78,413	$ 70,793	$ 0
Daikin Industries Ltd. \| Customer concentration risk \| Revenue from contract with customer benchmark
Revenue, Major Customer [Line Items]
% of Net Sales	14.40%	11.80%	0.00%

- Definition

+ References

+ Details

Performance-Based Common Stock Warrants - Impact to Net Sales in Connection with Warrants and Related Income Tax Benefit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Class of Warrant or Right [Line Items]
Term of successive vesting periods		2 years
Performance-based warrants
Class of Warrant or Right [Line Items]
Reduction (addition) to net sales	$ 0	$ (686)	$ 686
Income tax benefit	$ 0	$ (171)	$ 171

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Net sales	$ 542,751	$ 601,602	$ 614,680
Cost of sales	390,459	428,586	438,424
Gross profit	152,292	173,016	176,256
Research and development expenses	32,452	30,917	31,450
Selling, general and administrative expenses	105,292	118,846	107,539
Operating income	14,548	23,253	37,267
Interest income (expense), net	(2,200)	(566)	(1,422)
Loss on sale of Argentina subsidiary	0	(6,050)	0
Accrued social insurance adjustment	0	0	9,464
Other income (expense), net	(955)	(557)	(1,404)
Income before provision for income taxes	11,393	16,080	43,905
Provision for income taxes	10,986	10,779	5,333
Net income	$ 407	$ 5,301	$ 38,572
Earnings per share:
Basic (in dollars per share)	$ 0.03	$ 0.39	$ 2.78
Diluted (in dollars per share)	$ 0.03	$ 0.39	$ 2.72
Shares used in computing earnings per share:
Basic (in shares)	12,703	13,465	13,893
Diluted (in shares)	12,779	13,742	14,166

Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary (Tables)

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Other Income (Expense), Net

Other income (expense), net consisted of the following:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Net gain (loss) on foreign currency exchange contracts (1)	$	(1,309)	$	2,903	$	(310)
Net gain (loss) on foreign currency exchange transactions	218		(4,237)		(1,675)
Other income (expense)	136		777		581
Other income (expense), net	$	(955)	$	(557)	$	(1,404)

(1)This represents the gains (losses) incurred on foreign currency hedging derivatives. See Note 19 for further information concerning our foreign currency exchange contracts.

Performance-Based Common Stock Warrants

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Performance-Based Common Stock Warrants

On March 9, 2016, we issued common stock purchase warrants to Comcast Corporation ("Comcast") at a price of $54.55 per share. At December 31, 2022, 275,000 of these warrants were vested and outstanding. All of the warrants expired on January 1, 2023.

The impact to net sales recorded in connection with the warrants and the related income tax benefit was as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Reduction (addition) to net sales (1)	$	—	$	(686)	$	686
Income tax benefit	$	—	$	(171)	$	171

(1) At December 31, 2021, Comcast did not meet the minimum performance obligations to vest in any portion of the warrants associated with the two-year vesting period ended December 31, 2021. As such, all previously recorded expenses associated with this vesting period were reversed.

Revenue and Accounts Receivable, Net - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 542,751	$ 601,602	$ 614,680
United States
Disaggregation of Revenue [Line Items]
Net sales	167,501	200,136	255,651
Asia (excluding the PRC)
Disaggregation of Revenue [Line Items]
Net sales	127,702	127,140	117,142
Europe
Disaggregation of Revenue [Line Items]
Net sales	103,993	126,551	108,185
People's Republic of China
Disaggregation of Revenue [Line Items]
Net sales	85,215	87,866	88,246
Latin America
Disaggregation of Revenue [Line Items]
Net sales	28,363	25,943	17,481
Other
Disaggregation of Revenue [Line Items]
Net sales	$ 29,977	$ 33,966	$ 27,975

- Definition

+ References

+ Details

Goodwill and Intangible Assets, Net - Estimated Future Annual Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 4,821
2024	4,545
2025	3,705
2026	3,188
2027	2,596
Thereafter	5,615
Intangible assets, net	$ 24,470	$ 20,169

Stock-Based Compensation - Non-Vested Restricted Stock Awards Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Shares (in 000's)
Non-vested at beginning of period (in shares)	310	374	310
Granted (in shares)	262	156	238
Vested (in shares)	(191)	(211)	(166)
Forfeited (in shares)	(5)	(9)	(8)
Non-vested at end of period (in shares)	376	310	374
Weighted-Average Grant Date Fair Value
Non-vested at beginning of the year (in dollars per share)	$ 44.41	$ 34.53	$ 34.99
Granted (in dollars per share)	31.05	56.90	36.85
Vested (in dollars per share)	41.09	36.35	38.28
Forfeited (in dollars per share)	43.22	39.65	43.44
Non-vested at end of the year (in dollars per share)	$ 36.82	$ 44.41	$ 34.53

Revenue and Accounts Receivable, Net - Trade Receivables Associated with Significant Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 112,346	$ 129,215
Trade receivables \| Comcast Corporation \| Customer concentration risk
Revenue, Major Customer [Line Items]
Accounts receivable, net	$ 15,367	$ 0
Concentration risk percentage	13.70%	0.00%

Treasury Stock - Repurchased Shares of Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity, Class of Treasury Stock [Line Items]
Total shares repurchased (in shares)	434	1,243	444
Total cost of shares repurchased	$ 13,035	$ 59,664	$ 17,678
Open market shares repurchased
Equity, Class of Treasury Stock [Line Items]
Total shares repurchased (in shares)	300	1,151	325
Total cost of shares repurchased	$ 9,437	$ 54,868	$ 11,851
Stock-based compensation related shares repurchased
Equity, Class of Treasury Stock [Line Items]
Total shares repurchased (in shares)	134	92	119
Total cost of shares repurchased	$ 3,598	$ 4,796	$ 5,827

Income Taxes - Reconciliation of Tax Provision at Statutory U.S. Rate to Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Tax provision at statutory U.S. rate	$ 2,392	$ 3,377	$ 9,220
Increase (decrease) in tax provision resulting from:
Distribution of previously taxed foreign earnings and profits	(16,776)	0	0
Federal research and development credits	(715)	(1,391)	(2,119)
Foreign permanent benefit	(1,620)	(1,137)	(2,842)
Foreign tax rate differential	15,133	(2,647)	(1,595)
Foreign undistributed earnings, net of credits	6,486	6,902	3,319
Liquidation of Cayman subsidiary	0	745	0
Non-deductible items	601	1,198	1,637
Non-territorial income	(2,323)	(2,993)	(2,493)
Provision to return	(435)	(533)	(343)
Sale of Argentina subsidiary	0	2,084	0
Sale of intangible asset	(3,385)	0	0
State and local taxes, net	(2,408)	(1,435)	(1,932)
Stock-based compensation	693	(616)	(266)
Tax rate change	(640)	0	(1,527)
Uncertain tax positions	0	0	(1,565)
Valuation allowance	12,058	4,632	3,109
Withholding tax	2,188	2,333	2,320
Other	(263)	260	410
Total provision for income taxes	$ 10,986	$ 10,779	$ 5,333

Property, Plant, and Equipment, Net - Summary of Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 223,377	$ 235,684
Accumulated depreciation	(170,474)	(165,906)
Property, plant and equipment, net, excluding construction in progress	52,903	69,778
Construction in progress	9,888	4,869
Total property, plant, and equipment, net	62,791	74,647
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	18,291	19,830
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	9,344	9,655
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	3,529	3,905
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	39,761	41,437
Construction in progress	475	100
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	96,947	102,864
Construction in progress	2,282	1,912
Software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	23,607	23,993
Construction in progress	4,862	1,272
Tooling
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	31,898	34,000
Construction in progress	$ 1,827	$ 1,168

Revenue and Accounts Receivable, Net - Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 1,285	$ 1,412	$ 1,492
Additions (reductions) to costs and expenses	(182)	0	332
Cash receipts	0	0	(157)
Write-offs/Foreign exchange effects	(146)	(127)	(255)
Balance at end of period	$ 957	$ 1,285	$ 1,412

Performance-Based Common Stock Warrants (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

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 was as follows:


	Year Ended December 31,
(in thousands)	2022		2021		2020
Reduction (addition) to net sales (1)	$	—	$	(686)	$	686
Income tax benefit	$	—	$	(171)	$	171

Property, Plant, and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, Net and Construction in Progress

Estimated useful lives are as follows:


Buildings			25-33 years
Tooling and equipment			2-7 Years
Computer equipment			3-5 Years
Software			3-7 Years
Furniture and fixtures			5-8 Years
Leasehold and building improvements			Lesser of lease term or useful life (approximately 2 to 10 years)

Property, plant, and equipment, net were as follows:


	December 31,
(In thousands)	2022		2021
Buildings	$	18,291	$	19,830
Computer equipment	9,344		9,655
Furniture and fixtures	3,529		3,905
Leasehold and building improvements	39,761		41,437
Machinery and equipment	96,947		102,864
Software	23,607		23,993
Tooling	31,898		34,000
	223,377		235,684
Accumulated depreciation	(170,474)		(165,906)
	52,903		69,778
Construction in progress	9,888		4,869
Total property, plant, and equipment, net	$	62,791	$	74,647

Construction in progress was as follows:


	December 31,
(In thousands)	2022		2021
Leasehold and building improvements	$	475	$	100
Machinery and equipment	2,282		1,912
Software	4,862		1,272
Tooling	1,827		1,168
Other	442		417
Total construction in progress	$	9,888	$	4,869

Long-Lived Tangible Assets by Geographic Area

Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease ROU assets, were as follows:


	December 31,
(In thousands)	2022		2021
United States	$	16,427	$	16,804
People's Republic of China	42,893		52,851
Mexico	14,402		20,509
Vietnam	6,923		—
All other countries	3,745		4,330
Total long-lived tangible assets	$	84,390	$	94,494

Property, Plant, and Equipment, Net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment, Net

Property, plant, and equipment, net were as follows:


	December 31,
(In thousands)	2022		2021
Buildings	$	18,291	$	19,830
Computer equipment	9,344		9,655
Furniture and fixtures	3,529		3,905
Leasehold and building improvements	39,761		41,437
Machinery and equipment	96,947		102,864
Software	23,607		23,993
Tooling	31,898		34,000
	223,377		235,684
Accumulated depreciation	(170,474)		(165,906)
	52,903		69,778
Construction in progress	9,888		4,869
Total property, plant, and equipment, net	$	62,791	$	74,647

Depreciation expense was $19.9 million, $22.8 million and $23.2 million for the years ended December 31, 2022, 2021 and 2020, respectively.

During the year ended December 31, 2022, we incurred $2.9 million in impairment charges, recorded in cost of sales, relating to the underutilization of certain property, plant and equipment in our Mexico factory. During the year ended December 31, 2021, we incurred $3.3 million in impairment charges, recorded in cost of sales, relating to the underutilization of property, plant and equipment in our PRC-based factories, as a result of our long-term factory planning strategy of reducing our concentration risk in that region. Impairment charges were immaterial for the year ended December 31, 2020.

Construction in progress was as follows:


	December 31,
(In thousands)	2022		2021
Leasehold and building improvements	$	475	$	100
Machinery and equipment	2,282		1,912
Software	4,862		1,272
Tooling	1,827		1,168
Other	442		417
Total construction in progress	$	9,888	$	4,869

We expect that most of the assets under construction will be placed into service during the first six months of 2023. We will begin to depreciate the cost of these assets under construction once they are placed into service.

Long-lived tangible assets by geographic area, which include property, plant, and equipment, net and operating lease ROU assets, were as follows:


	December 31,
(In thousands)	2022		2021
United States	$	16,427	$	16,804
People's Republic of China	42,893		52,851
Mexico	14,402		20,509
Vietnam	6,923		—
All other countries	3,745		4,330
Total long-lived tangible assets	$	84,390	$	94,494

Inventories and Significant Suppliers - Purchases from Significant Suppliers (Details) - Supplier Concentration Risk - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Inventory Purchases \| Qorvo International Pte Ltd.
Concentration Risk [Line Items]
Purchases from significant supplier	$ 33,293	$ 38,712	$ 43,543
Concentration risk percentage	11.50%	11.80%	14.20%
Accounts Payable \| Zhejiang Zhen You Electronics Co. Ltd.
Concentration Risk [Line Items]
Purchases from significant supplier	$ 0	$ 9,862
Concentration risk percentage	0.00%	10.60%

Income Taxes - Changes to Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes to gross unrecognized tax benefits:
Balance at beginning of period	$ 3,001	$ 3,020	$ 4,094
Additions as a result of tax provisions taken during the current year	149	226	274
Foreign currency translation	0		20
Foreign currency translation		(13)
Lapse in statute of limitations	0	0	(51)
Settlements	0	(232)	0
Other	0	0	(1,317)
Balance at end of period	$ 3,150	$ 3,001	$ 3,020

Stock-Based Compensation - Narrative (Details) - USD ($)		1 Months Ended	12 Months Ended
	Feb. 09, 2023	Feb. 28, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of shares withheld in lieu of receiving cash			$ 1,500,000	$ 600,000	$ 2,800,000
Proceeds from stock options exercised			0	1,000,000	0
Tax benefit from stock options exercised			$ 100,000	$ 200,000	$ 300,000
Options granted (in shares)			139,000	80,000	109,000
Restricted stock granted (in shares)			262,000	156,000	238,000
Term of plans / awards			10 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax stock-based compensation expense			$ 2,300,000
Unrecognized pre-tax stock-based compensation expense, period for recognition			1 year 9 months 18 days
Term of plans / awards			10 years
Stock options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Non-vested restricted stock award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax stock-based compensation expense			$ 8,800,000
Unrecognized pre-tax stock-based compensation expense, period for recognition			1 year 8 months 12 days
Non-vested restricted stock award \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Non-vested restricted stock award \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Stock appreciation rights and performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted to date (in shares)			0
Certain executive employees \| Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	235,455
Certain executive employees \| Stock options \| Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Grant date fair value of stock options	$ 2,600,000
Certain executive employees \| Stock options \| Vesting on February 12, 2021 \| Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	33.33%
Certain executive employees \| Stock options \| Vesting quarterly thereafter \| Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage	8.33%
Certain executive employees \| Non-vested restricted stock award \| Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Restricted stock granted (in shares)		102,965
Grant date fair value of restricted stock		$ 2,600,000
Certain executive employees \| Non-vested restricted stock award \| Vesting on February 12, 2021 \| Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage		33.33%
Certain executive employees \| Non-vested restricted stock award \| Vesting quarterly thereafter \| Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights percentage		8.33%

Derivatives - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Derivatives - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) on foreign currency exchange contracts	$ (1,309)	$ 2,903	$ (310)
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	$ (1,300)	$ 2,900	$ (300)

Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating Leased Assets [Line Items]
Operating lease right-of-use assets	$ 21,599	$ 19,847
Prepaid lease assets, remaining amortization period	5 years 1 month 6 days	4 years 3 months 18 days
Net book value of asset	$ 62,791	$ 74,647
Yangzhou
Operating Leased Assets [Line Items]
Operating lease right-of-use assets	$ 2,200
Prepaid lease assets, remaining amortization period	36 years
Yangzhou \| Buildings on prepaid land
Operating Leased Assets [Line Items]
Net book value of asset	$ 13,400
Remaining depreciable period of asset	17 years
Property subject to rent escalations \| Maximum
Operating Leased Assets [Line Items]
Lessee term of contract (in years)	38 years

Earnings Per Share - Securities Excluded from the Computation of Diluted Earnings (Loss) Per Common Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per common share (in shares)	686	412	468
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per common share (in shares)	242	65	14
Performance-based warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per common share (in shares)	275	206	275

Commitments and Contingencies - Changes in the Liability for Product Warranty Claim Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes in the liability for product warranty claim costs
Balance at beginning of period	$ 1,095	$ 1,721	$ 1,514
Accruals for warranties issued during the period	249	2,943	578
Settlements (in cash or in kind) during the period	(819)	(3,522)	(463)
Foreign currency translation gain (loss)	(3)	(47)	92
Balance at end of period	$ 522	$ 1,095	$ 1,721

Business Combinations

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combinations

On February 17, 2022, we acquired substantially all of the net assets of Qterics, a U.S.-based provider of multimedia connectivity solutions and services for internet-enabled consumer products. Under the terms of the Asset Purchase Agreement ("APA"), we paid a cash purchase price of approximately $0.9 million. The acquisition of these assets will allow us to expand our customer base in the OEM market.

Our consolidated income statement for the year ended December 31, 2022 includes net sales of $2.1 million and net income of $145 thousand, attributable to Qterics for the period commencing on February 17, 2022.

In accordance with the terms of the APA, the initial purchase price was subject to adjustment for differences between the initial estimated working capital balances and the final adjusted balances. This calculation was completed at March 31, 2022.

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 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 as of December 31, 2022 was the following:


(In thousands)	Estimated Lives	Fair Value
Accounts receivable		$	787
Property, plant and equipment	5 years	3
Customer relationships	6 years	1,340
Developed technology	6 years	440
Trade names	6 years	50
Goodwill		713
Operating lease ROU assets	3 years	149
Other assets		2
Other accrued liabilities		(6)
Short-term operating lease obligation		(48)
Deferred revenue		(1,539)
Long-term operating lease obligation		(101)
Long-term deferred revenue		(851)
Cash paid		$	939

Management's determination of the fair value of intangible assets acquired are 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 Qterics developed technology and trade names intangible assets were determined utilizing a relief from royalty method. Under the relief from royalty method, the fair value of the intangible asset is estimated to be the present value of the royalties saved because the company owns the intangible asset. Revenue projections and estimated useful life were significant inputs into estimating the value of the Qterics developed technology and trade names.

The fair value assigned to Qterics customer relationships intangible assets were determined utilizing a multi-period excess earnings approach. Under the multi-period excess earnings approach, the fair value of the intangible asset is estimated to be the present value of future earnings attributable to the asset and utilizes revenue and cost projections, including an assumed contributory asset charge.

The developed technology, trade names and customer relationships intangible assets are expected to be deductible for income tax purposes.

Pro Forma Results (unaudited)

The unaudited pro forma financial information of combined results of our operations and the operations of Qterics as if the transaction had occurred on January 1, 2021, is immaterially different from the net sales, net income and income per share amounts reported in the Consolidated Statements of Operations for the years ended December 31, 2022 and 2021.

Other Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Components of Other Accrued Liabilities

The components of accrued compensation were as follows:


	December 31,
(In thousands)	2022		2021
Accrued bonus	$	3,348	$	3,460
Accrued commission	609		1,140
Accrued salary/wages	4,433		6,234
Accrued social insurance (1)	7,037		7,562
Accrued vacation/holiday	3,300		3,343
Other accrued compensation	2,177		2,478
Total accrued compensation	$	20,904	$	24,217

The components of other accrued liabilities were as follows:


	December 31,
(In thousands)	2022		2021
Contract liabilities	$	1,134	$	390
Duties	470		4,128
Expense associated with fulfilled performance obligations	1,120		991
Freight and handling fees	2,497		3,317
Interest	1,413		287
Operating lease obligations	5,509		4,769
Product warranty claim costs	522		1,095
Professional fees	2,293		4,685
Sales and value added taxes	3,750		5,463
Other	5,426		5,715
Total other accrued liabilities	$	24,134	$	30,840

Cash and Cash Equivalents and Term Deposit - Narrative (Details)		12 Months Ended
	Jan. 25, 2022	Dec. 31, 2022
Cash and Cash Equivalents [Abstract]
Maturity of time deposits (in years)	1 year	1 year

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 407	$ 5,301	$ 38,572
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization	24,033	26,747	29,735
Provision for credit losses	(182)	0	332
Deferred income taxes	1,377	(1,560)	(478)
Shares issued for employee benefit plan	1,199	1,092	1,136
Employee and director stock-based compensation	10,013	9,969	9,122
Performance-based common stock warrants	0	(686)	686
Impairment of long-term assets	2,888	3,338	134
Loss on sale of Argentina subsidiary, net of cash transferred	0	5,960	0
Accrued social insurance adjustment	0	0	(9,464)
Loss on sale of Ohio call center	0	0	712
Changes in operating assets and liabilities:
Accounts receivable and contract assets	12,765	2,007	14,884
Inventories	(9,913)	(14,985)	28,295
Prepaid expenses and other assets	(917)	(630)	(245)
Accounts payable and accrued liabilities	(28,670)	870	(33,543)
Accrued income taxes	(2,074)	2,860	(6,486)
Net cash provided by (used for) operating activities	10,926	40,283	73,392
Cash flows from investing activities:
Purchase of term deposit	(7,487)	0	0
Redemption of term deposit	7,803	0	0
Acquisition of the net assets of Qterics, Inc.	(939)	0	0
Acquisitions of property, plant and equipment	(14,006)	(12,586)	(16,862)
Acquisitions of intangible assets	(6,579)	(4,455)	(6,372)
Payment on sale of Ohio call center	0	0	(500)
Net cash provided by (used for) investing activities	(21,208)	(17,041)	(23,734)
Cash flows from financing activities:
Borrowings under line of credit	133,000	112,000	75,000
Repayments on line of credit	(101,000)	(76,000)	(123,000)
Proceeds from stock options exercised	1,536	1,638	2,805
Treasury stock purchased	(13,035)	(59,664)	(17,678)
Contingent consideration payments in connection with business combinations	0	0	(3,091)
Net cash provided by (used for) financing activities	20,501	(22,026)	(65,964)
Effect of foreign currency exchange rate changes on cash and cash equivalents	(4,292)	2,444	(843)
Net increase (decrease) in cash and cash equivalents	5,927	3,660	(17,149)
Cash and cash equivalents at beginning of period	60,813	57,153	74,302
Cash and cash equivalents at end of period	66,740	60,813	57,153
Supplemental cash flow information:
Income taxes paid	10,922	10,093	12,712
Interest paid	$ 2,214	$ 620	$ 1,610

Commitments and Contingencies - Defined Benefit Plan (Details) - India subsidiary	12 Months Ended
	Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]
Percentage of employees eligible for benefits	54.00%
Minimum service period of employees to be eligible under plan	5 years
Number of days salary payable under termination, resignation, or retirement	15 days

Stock-Based Compensation - Significant Option Groups Outstanding and Related Weighted Average Exercise Price and Life Information (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Options Outstanding
Number outstanding (in shares)	782	800	774	745
Weighted-average remaining contractual term (in years)	3 years 5 months 12 days	3 years 1 month 24 days	3 years 8 months 15 days
Weighted average exercise price (in dollars per share)	$ 44.16	$ 45.55	$ 43.01	$ 41.73
Options Exercisable
Number exercisable (in shares)	600	656	582
Weighted-average exercise price (in dollars per share)	$ 45.77	$ 44.08	$ 43.90
Exercise price range 1
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range limit (in dollars per share)	26.64
Range of exercise prices, upper range limit (in dollars per share)	$ 34.55
Options Outstanding
Number outstanding (in shares)	290
Weighted-average remaining contractual term (in years)	4 years 9 months 18 days
Weighted average exercise price (in dollars per share)	$ 30.12
Options Exercisable
Number exercisable (in shares)	150
Weighted-average exercise price (in dollars per share)	$ 27.07
Exercise price range 2
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range limit (in dollars per share)	44.95
Range of exercise prices, upper range limit (in dollars per share)	$ 46.17
Options Outstanding
Number outstanding (in shares)	207
Weighted-average remaining contractual term (in years)	3 years 7 months 6 days
Weighted average exercise price (in dollars per share)	$ 45.59
Options Exercisable
Number exercisable (in shares)	198
Weighted-average exercise price (in dollars per share)	$ 45.56
Exercise price range 3
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range limit (in dollars per share)	51.38
Range of exercise prices, upper range limit (in dollars per share)	$ 62.70
Options Outstanding
Number outstanding (in shares)	285
Weighted-average remaining contractual term (in years)	2 years 3 months 10 days
Weighted average exercise price (in dollars per share)	$ 57.39
Options Exercisable
Number exercisable (in shares)	252
Weighted-average exercise price (in dollars per share)	$ 57.12

Goodwill and Intangible Assets, Net - Narrative (Details)	12 Months Ended
	Dec. 31, 2022
Weighted Average
Finite-Lived Intangible Assets [Line Items]
Amortization period (in years)	6 years 2 months 12 days

Earnings Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
BASIC
Net income	$ 407	$ 5,301	$ 38,572
Weighted-average common shares outstanding (in shares)	12,703	13,465	13,893
Basic earnings (loss) per share (in dollars per share)	$ 0.03	$ 0.39	$ 2.78
DILUTED
Net income	$ 407	$ 5,301	$ 38,572
Weighted-average common shares outstanding (in shares)	12,703	13,465	13,893
Dilutive effect of stock options, restricted stock and common stock warrants (in shares)	76	277	273
Weighted-average common shares outstanding on a diluted basis (in shares)	12,779	13,742	14,166
Diluted earnings (loss) per share (in dollars per share)	$ 0.03	$ 0.39	$ 2.72

- 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 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
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- 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.

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- Definition

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

+ References

+ Details

Other Income (Expense), Net and Loss on Sale of Argentina Subsidiary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
Net gain (loss) on foreign currency exchange contracts	$ (1,309)	$ 2,903	$ (310)
Net gain (loss) on foreign currency exchange transactions	218	(4,237)	(1,675)
Other income (expense)	136	777	581
Other income (expense), net	$ (955)	$ (557)	$ (1,404)

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit PlansWe maintain a retirement and profit sharing plan under Section 401(k) of the Internal Revenue Code for all of our domestic employees that meet certain qualifications. Participants in the plan may elect to contribute up to the maximum allowed by law. We match 50% of the participants' contributions up to 15% of their gross salary in the form of newly issued shares of our common stock. We may also make other discretionary contributions to the plan. We recorded $1.2 million, $1.1 million and $1.2 million of expense for company contributions for the years ended December 31, 2022, 2021 and 2020, respectively.

- Definition

The entire disclosure for retirement benefits.

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Income Taxes - Pre-Tax Income (Loss) by Jurisdiction (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic operations	$ (69,058)	$ (38,024)	$ (15,711)
Foreign operations	80,451	54,104	59,616
Income before provision for income taxes	$ 11,393	$ 16,080	$ 43,905

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

Description of Business (Details)	12 Months Ended
Description of Business (Details)	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
History of company (in years)	37 years

Cash and Cash Equivalents and Term Deposit (Tables)

12 Months Ended

Dec. 31, 2022

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents by Geographic Region

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


	December 31,
(In thousands)	2022		2021
North America	$	6,825	$	6,430
People's Republic of China ("PRC")	15,633		16,000
Asia (excluding the PRC)	18,850		11,798
Europe	13,042		17,604
South America	12,390		8,981
Total cash and cash equivalents	$	66,740	$	60,813

Goodwill and Intangible Assets, Net - Components of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 42,653	$ 35,789
Accumulated amortization	(18,183)	(15,620)
Intangible assets, net	24,470	20,169
Gross value of fully amortized intangible assets	$ 43,700	43,200
Minimum
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	2 years
Maximum
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	15 years
Capitalized software development costs (2 years)
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	2 years
Gross	$ 1,647	1,066
Accumulated amortization	(44)	(27)
Intangible assets, net	1,603	1,039
Customer relationships (10-15 years)
Finite-Lived Intangible Assets, Net [Abstract]
Gross	6,340	5,000
Accumulated amortization	(3,080)	(2,375)
Intangible assets, net	$ 3,260	2,625
Customer relationships (10-15 years) \| Minimum
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	10 years
Customer relationships (10-15 years) \| Maximum
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	15 years
Developed and core technology (5-15 years)
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 4,520	4,080
Accumulated amortization	(3,693)	(3,335)
Intangible assets, net	$ 827	745
Developed and core technology (5-15 years) \| Minimum
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	5 years
Developed and core technology (5-15 years) \| Maximum
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	15 years
Distribution rights (10 years)
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	10 years
Gross	$ 308	325
Accumulated amortization	(281)	(269)
Intangible assets, net	$ 27	56
Patents (10 years)
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	10 years
Gross	$ 29,388	24,518
Accumulated amortization	(10,790)	(9,015)
Intangible assets, net	$ 18,598	15,503
Trademarks and trade names (10 years)
Finite-Lived Intangible Assets, Net [Abstract]
Estimated useful life of intangible assets (in years)	10 years
Gross	$ 450	800
Accumulated amortization	(295)	(599)
Intangible assets, net	$ 155	$ 201

Accrued Compensation

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Accrued Compensation

In June 2018, we sold our Guangzhou entity via a stock deal, and the terms of the agreement included a two-year indemnification period. In June 2020, the indemnification period expired and we determined we were no longer legally liable for any liabilities associated with our Guangzhou entity. Accordingly, we reversed the accrued social insurance by the amount associated with the Guangzhou entity, which was approximately $9.5 million.

The components of accrued compensation were as follows:


	December 31,
(In thousands)	2022		2021
Accrued bonus	$	3,348	$	3,460
Accrued commission	609		1,140
Accrued salary/wages	4,433		6,234
Accrued social insurance (1)	7,037		7,562
Accrued vacation/holiday	3,300		3,343
Other accrued compensation	2,177		2,478
Total accrued compensation	$	20,904	$	24,217

Other Accrued Liabilities

The components of other accrued liabilities were as follows:


	December 31,
(In thousands)	2022		2021
Contract liabilities	$	1,134	$	390
Duties	470		4,128
Expense associated with fulfilled performance obligations	1,120		991
Freight and handling fees	2,497		3,317
Interest	1,413		287
Operating lease obligations	5,509		4,769
Product warranty claim costs	522		1,095
Professional fees	2,293		4,685
Sales and value added taxes	3,750		5,463
Other	5,426		5,715
Total other accrued liabilities	$	24,134	$	30,840

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Auditor Information [Abstract]
Auditor Name	GRANT THORNTON LLP
Auditor Location	Newport Beach, California
Auditor Firm ID	248

Property, Plant, and Equipment, Net - Long-Lived Tangible Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total long-lived tangible assets	$ 84,390	$ 94,494
United States
Property, Plant and Equipment [Line Items]
Total long-lived tangible assets	16,427	16,804
People's Republic of China
Property, Plant and Equipment [Line Items]
Total long-lived tangible assets	42,893	52,851
Mexico
Property, Plant and Equipment [Line Items]
Total long-lived tangible assets	14,402	20,509
Vietnam
Property, Plant and Equipment [Line Items]
Total long-lived tangible assets	6,923	0
All other countries
Property, Plant and Equipment [Line Items]
Total long-lived tangible assets	$ 3,745	$ 4,330

Leases - Lease Terms and Discount Rates (Details)	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Weighted average lease liability term (in years)	5 years 1 month 6 days	4 years 3 months 18 days
Weighted average discount rate	3.82%	3.17%

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Estimated Useful Lives of Property, Plant and Equipment

Estimated useful lives are as follows:


Buildings			25-33 years
Tooling and equipment			2-7 Years
Computer equipment			3-5 Years
Software			3-7 Years
Furniture and fixtures			5-8 Years
Leasehold and building improvements			Lesser of lease term or useful life (approximately 2 to 10 years)

Property, plant, and equipment, net were as follows:


	December 31,
(In thousands)	2022		2021
Buildings	$	18,291	$	19,830
Computer equipment	9,344		9,655
Furniture and fixtures	3,529		3,905
Leasehold and building improvements	39,761		41,437
Machinery and equipment	96,947		102,864
Software	23,607		23,993
Tooling	31,898		34,000
	223,377		235,684
Accumulated depreciation	(170,474)		(165,906)
	52,903		69,778
Construction in progress	9,888		4,869
Total property, plant, and equipment, net	$	62,791	$	74,647

Construction in progress was as follows:


	December 31,
(In thousands)	2022		2021
Leasehold and building improvements	$	475	$	100
Machinery and equipment	2,282		1,912
Software	4,862		1,272
Tooling	1,827		1,168
Other	442		417
Total construction in progress	$	9,888	$	4,869

Property, Plant, and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 19,900	$ 22,800	$ 23,200
Impairment of long-term assets	$ 2,888	$ 3,338	$ 134

Business Combination (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

Management's purchase price allocation as of December 31, 2022 was the following:


(In thousands)	Estimated Lives	Fair Value
Accounts receivable		$	787
Property, plant and equipment	5 years	3
Customer relationships	6 years	1,340
Developed technology	6 years	440
Trade names	6 years	50
Goodwill		713
Operating lease ROU assets	3 years	149
Other assets		2
Other accrued liabilities		(6)
Short-term operating lease obligation		(48)
Deferred revenue		(1,539)
Long-term operating lease obligation		(101)
Long-term deferred revenue		(851)
Cash paid		$	939

Other Accrued Liabilities

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Other Accrued Liabilities

Accrued Compensation

The components of accrued compensation were as follows:


	December 31,
(In thousands)	2022		2021
Accrued bonus	$	3,348	$	3,460
Accrued commission	609		1,140
Accrued salary/wages	4,433		6,234
Accrued social insurance (1)	7,037		7,562
Accrued vacation/holiday	3,300		3,343
Other accrued compensation	2,177		2,478
Total accrued compensation	$	20,904	$	24,217

Other Accrued Liabilities

The components of other accrued liabilities were as follows:


	December 31,
(In thousands)	2022		2021
Contract liabilities	$	1,134	$	390
Duties	470		4,128
Expense associated with fulfilled performance obligations	1,120		991
Freight and handling fees	2,497		3,317
Interest	1,413		287
Operating lease obligations	5,509		4,769
Product warranty claim costs	522		1,095
Professional fees	2,293		4,685
Sales and value added taxes	3,750		5,463
Other	5,426		5,715
Total other accrued liabilities	$	24,134	$	30,840

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation Expense

Stock-based compensation expense by statement of operations caption and the related income tax benefit were as follows:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Cost of sales	$	155	$	156	$	182
Research and development expenses	1,342		1,253		1,099
Selling, general and administrative expenses:
Employees	7,257		6,997		6,257
Outside directors	1,259		1,563		1,584
Total employee and director stock-based compensation expense	$	10,013	$	9,969	$	9,122

Income tax benefit	$	1,660	$	1,718	$	1,594

Assumptions Used 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:


	Year Ended December 31,
	2022			2021			2020
Weighted average fair value of grants	$	14.51		$	23.97		$	17.70
Risk-free interest rate	1.93		%	0.41		%	1.44		%
Expected volatility	49.35		%	48.49		%	43.95		%
Expected life in years	4.73			4.62			4.59

Stock Option Activity

Stock option activity was as follows:


	2022						2021						2020
	Number of Options (in 000's)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in 000's)		Number of Options (in 000's)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in 000's)		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 beginning of the year	800	$	45.55				774	$	43.01				745	$	41.73
Granted	139	33.42					80	59.43					109	46.17
Exercised	(80)	19.25			$	292	(54)	30.04			$	931	(80)	35.28			$	1,334
Forfeited/canceled/expired	(77)	64.81					—	—					—	—
Outstanding at end of the year (1)	782	$	44.16	3.45	$	—	800	$	45.55	3.15	$	3,780	774	$	43.01	3.71	$	9,228
Vested and expected to vest at the end of the year (1)	782	$	44.16	3.45	$	—	800	$	45.55	3.15	$	3,780	774	$	43.01	3.71	$	9,228
Exercisable at the end of the year (1)	600	$	45.77	2.61	$	—	656	$	44.08	2.58	$	3,608	582	$	43.90	2.98	$	6,887

Significant Option Groups Outstanding and Related Weighted Average Exercise Price and Life Information

Significant option groups outstanding at December 31, 2022 and the related weighted average exercise price and life information were as follows:


	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding (in 000's)	Weighted-Average Remaining Contractual Term (in years)	Weighted-Average Exercise Price		Number Exercisable (in 000's)	Weighted-Average Exercise Price
$26.64 to $34.55	290	4.80	$	30.12	150	$	27.07
$44.95 to $46.17	207	3.60	45.59		198	45.56
$51.38 to $62.70	285	2.28	57.39		252	57.12
	782	3.45	$	44.16	600	$	45.77

Non-Vested Restricted Stock Awards Activity

Non-vested restricted stock award activity was as follows:


	2022			2021			2020
	Shares (in 000's)	Weighted-Average Grant Date Fair Value		Shares (in 000's)	Weighted-Average Grant Date Fair Value		Shares (in 000's)	Weighted-Average Grant Date Fair Value
Non-vested at beginning of the year	310	$	44.41	374	$	34.53	310	$	34.99
Granted	262	31.05		156	56.90		238	36.85
Vested	(191)	41.09		(211)	36.35		(166)	38.28
Forfeited	(5)	43.22		(9)	39.65		(8)	43.44
Non-vested at end of the year	376	$	36.82	310	$	44.41	374	$	34.53

Detailed Information Regarding Active Stock Incentive Plans

Detailed information regarding our active Stock Incentive Plans was as follows at December 31, 2022:


Name	Approval Date	Total Shares Available for Grant Under the Plan	Remaining Shares Available for Grant Under the Plan	Outstanding Shares Granted Under the Plan
2010 Stock Incentive Plan	6/15/2010	1,000,000	—	13,219
2014 Stock Incentive Plan	6/12/2014	1,100,000	—	269,891
2018 Equity and Incentive Compensation Plan (1)	6/4/2018	2,196,344	777,152	875,465
			777,152	1,158,575

(1)The 2018 Equity and Incentive Compensation Plan was amended in June 2021 to add an additional 1,100,000 shares, as approved by our stockholders.

Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Accrued liabilities	$ 0	$ 6,483
Accounts receivable	5,657	0
Amortization of intangible assets	5,977	1,412
Capitalized inventory costs	5,060	4,183
Capitalized research & development costs	4,632	0
Depreciation	5,067	4,289
Income tax credits	17,234	17,513
Inventory reserves	2,258	2,621
Net operating losses	3,770	3,512
Operating lease obligations	4,212	4,469
Stock-based compensation	4,288	4,569
Other	0	4,431
Total deferred tax assets	58,155	53,482
Deferred tax liabilities:
Accrued liabilities	(5,273)	0
Accounts receivable	0	(10,919)
Right of use assets	(4,407)	(4,690)
Other	(361)	0
Total deferred tax liabilities	(10,041)	(15,609)
Net deferred tax assets before valuation allowance	48,114	37,873
Less: Valuation allowance	(44,596)	(32,538)
Net deferred tax assets	$ 3,518	$ 5,335

Derivatives

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

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


	December 31, 2022								December 31, 2021
	Fair Value Measurement Using						Total Balance		Fair Value Measurement Using						Total Balance
(In thousands)	Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Foreign currency exchange contracts	$	—	$	100	$	—	$	100	$	—	$	(92)	$	—	$	(92)

We held foreign currency exchange contracts which resulted in a net pre-tax loss of $1.3 million, a net pre-tax gain of $2.9 million, and a net pre-tax loss of $0.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. See Note 17 for further information concerning our 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
December 31, 2022	USD/Euro	USD	$	26.0	1.0529	$	(428)	January 6, 2023
December 31, 2022	USD/Chinese Yuan Renminbi	CNY	$	31.0	7.0358	$	528	January 6, 2023
December 31, 2021	USD/Chinese Yuan Renminbi	CNY	$	19.0	6.3777	$	38	January 7, 2022
December 31, 2021	USD/Euro	USD	$	31.0	1.1336	$	(130)	January 7, 2022

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding
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, $0.01 par value, 50,000,000 shares authorized; 24,999,951 and 24,678,942 shares issued on December 31, 2022 and 2021, respectively
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	24,999,951	24,678,942
Treasury stock, at cost, 12,295,305 and 11,861,198 shares on December 31, 2022 and 2021, respectively
Treasury stock (in shares)	12,295,305	11,861,198

Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Line Items]
Balance	$ 48,463	$ 48,614
Goodwill acquired during the period	713
Foreign exchange effects	(91)	(151)
Balance	49,085	$ 48,463
Qterics, Inc.
Goodwill [Line Items]
Goodwill acquired during the period	700
Balance	$ 713

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands		12 Months Ended
	Jan. 25, 2022	Dec. 31, 2022 USD ($) extension	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Accounting Policies [Line Items]
Accruals for discounts and rebates		$ 12,200	$ 14,400
Advertising costs		500	800	$ 900
Selling, general and administrative expenses		$ 105,292	118,846	107,539
Dividend yield		0.00%
Maturity of time deposits (in years)	1 year	1 year
Number of options to extend leases \| extension		2
Maturity of foreign currency exchange contracts		9 months
Shipping and Handling
Accounting Policies [Line Items]
Selling, general and administrative expenses		$ 10,800	$ 11,800	$ 9,900
Minimum
Accounting Policies [Line Items]
Vesting period		1 year
Renewal term of operating leases (in years)		3 years
Estimated useful life of intangible assets (in years)		2 years
Maximum
Accounting Policies [Line Items]
Vesting period		3 years
Renewal term of operating leases (in years)		5 years
Estimated useful life of intangible assets (in years)		15 years

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

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:


	Year Ended December 31,
(In thousands)	2022		2021		2020
Balance at beginning of period	$	1,095	$	1,721	$	1,514
Accruals for warranties issued during the period	249		2,943		578
Settlements (in cash or in kind) during the period	(819)		(3,522)		(463)
Foreign currency translation gain (loss)	(3)		(47)		92
Balance at end of period	$	522	$	1,095	$	1,721

Cash and Cash Equivalents and Term Deposit - Cash and Cash Equivalents by Geographic Region (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 66,740	$ 60,813
North America
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	6,825	6,430
People's Republic of China ("PRC")
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	15,633	16,000
Asia (excluding the PRC)
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	18,850	11,798
Europe
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	13,042	17,604
South America
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 12,390	$ 8,981