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2015-12-31 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>1.</b></td> <td><b>GENERAL</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Business</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">O₂Micro, Inc. was incorporated in the state of California in the United States of America on March 29, 1995. In March 1997, O₂Micro International Limited (the &#x201c;Company&#x201d;) was formed in the Cayman Islands and all authorized and outstanding common stock, preferred stock, and stock options of O₂Micro, Inc. were exchanged for the Company&#x2019;s ordinary shares, preference shares, and stock options with identical rights and preferences. O₂Micro, Inc. became the Company&#x2019;s subsidiary after the share exchange. The Company designs, develops and markets innovative power management components for the Computer, Consumer, Industrial, Automotive and Communications markets.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company&#x2019;s ordinary shares (&#x201c;Shares&#x201d;) were initially listed on The NASDAQ National Market (&#x201c;NASDAQ&#x201d;) on August 23, 2000, and on the Cayman Islands Stock Exchange on February 1, 2001. At the Extraordinary General Meeting of Shareholders (&#x201c;EGM&#x201d;) held on November 14, 2005, the shareholders approved a public global offering of the Company&#x2019;s Shares and the proposed listing of the Company's Shares on the Main Board of The Stock Exchange of Hong Kong Limited (&#x201c;SEHK&#x201d;) and various matters related to the proposed listing and offering. Following the approval of these matters, the Company ceased trading its Shares on the NASDAQ, effected a 50-for-1 share split of Shares, created an American depositary share (&#x201c;ADS&#x201d;) program for the ADSs to be quoted on the NASDAQ, and delisted the Shares from the NASDAQ on November 25, 2005. The Company commenced trading of ADSs on the NASDAQ on November 28, 2005, and subsequently listed the Shares on the SEHK on March 2, 2006, by way of introduction. On February 27, 2009, the Company submitted an application for the voluntary withdrawal of the listing of Shares on the Main Board of SEHK (collectively referred to as &#x201c;Proposed Withdrawal&#x201d;) for reasons of cost and utility. The Company retained its existing primary listing of ADSs on the NASDAQ following the Proposed Withdrawal and for the foreseeable future. The Proposed Withdrawal was approved at the EGM held on May 30, 2009, and the listing of the Shares on SEHK was withdrawn on September 9, 2009.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company has incorporated various wholly-owned subsidiaries in the past, including, among others, O₂Micro Electronics, Inc. (&#x201c;O₂Micro-Taiwan&#x201d;), O₂Micro International Japan Ltd. (&#x201c;O₂Micro-Japan&#x201d;), O₂Micro (China) Co., Ltd. (&#x201c;O₂Micro-China&#x201d;), and O₂Security Limited (&#x201c;O₂Security&#x201d;). O₂Micro-Taiwan is engaged in operations and sales support services. O₂Micro-Japan is engaged in sales support services. O₂Micro-China and other subsidiaries are mostly engaged in research and development services. O₂Security was primarily engaged in operations and sales of Network Security products (&#x201c;Network Security Group&#x201d;). In November 2010, the Company commenced a plan to terminate its Network Security business and initiated shutdown activities associated with the Network Security Group, and in 2011, the Company formally dissolved all business entities related to O₂Security Limited. The Company has reflected the operating results of this business group as discontinued operations in the accompanying consolidated statements of operations and comprehensive income. Please also see discussions in note 3.</td> </tr> </table><br/> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"><b>2.</b></td> <td><b>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Basis of Presentation</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated on consolidation.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Use of Estimates</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Significant accounting estimates reflected in the Company&#x2019;s consolidated financial statements include valuation allowance for deferred income tax assets, allowance for doubtful accounts, other-than-temporary impairment of securities, inventory valuation, useful lives for property and equipment, impairment of long-lived assets and identified intangible assets, allowances for sales returns, pension and uncertain tax liabilities, contingencies and stock-based compensation.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Concentration of Credit Risk</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, short-term investments and accounts receivable. Cash is deposited with high credit quality financial institutions. For cash equivalents and short-term investments, the Company invests primarily in time deposits at the banks with good credit rating. For accounts receivable, the Company performs ongoing credit evaluations of its customers&#x2019; financial condition and the Company maintains an allowance for doubtful accounts based upon a review of the expected collectability of individual accounts.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Fair Value of Financial Instruments</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company&#x2019;s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, and notes and accounts payable. The carrying amounts approximate the fair value due to the short-term maturity of those instruments. Fair value of available-for-sale investments including short-term investments and long-term investments is based on quoted market prices. Long-term investments in private company equity securities are accounted for under the cost method because the Company does not exercise significant influence over the entities. The Company evaluates related information including operating performance, subsequent rounds of financing, advanced product development and related business plan in determining the fair value of these investments and whether an other-than-temporary decline in value exists.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Cash and Cash Equivalents </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company considers all highly liquid investments with maturities of not more than three months when purchased to be cash equivalents. Investments with maturities of more than three months are classified as short-term investments.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Restricted Cash</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company classifies deposits made for customs and cash pledged to a bank for the issuance of letters of credit as restricted cash. The deposits are classified as current assets if refundable within a twelve-month period from the balance sheet date.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Short-term Investments</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company maintains its excess cash in time deposits, government, corporate, or other agency bonds issued with high credit ratings. The specific identification method is used to determine the cost of securities sold, with realized gains and losses reflected in non-operating income and expenses. All the above-mentioned investments except for time deposits were classified as available-for-sale securities and were recorded at fair value. Unrealized gains and losses on these investments are included in accumulated other comprehensive income and loss as a separate component of shareholders&#x2019; equity, net of any related tax effect, unless unrealized losses are deemed other-than-temporary. Unrealized losses are recorded as a charge to income when deemed other-than-temporary. There were no available-for-sale securities as of December 31, 2015 and 2014.</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 17.85pt">Investment transactions are recorded on the trade date.</p><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b><br clear="all" /> Inventories</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Inventories are stated at the lower of standard cost or market value. The cost of inventories comprises cost of purchasing raw materials and where applicable, those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is determined on a currently adjusted standard basis, which approximates actual cost on a first-in, first-out basis.<font style="font-family: Times New Roman, Times, Serif"> </font>The Company assesses its inventory for estimated obsolescence or unmarketable inventory based upon management&#x2019;s assumptions about future demand and market conditions and writes down inventory as needed.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Long-term Investments</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Long-term investments in private companies over which the Company does not exercise significant influence are accounted for under the cost method. Management evaluates related information in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults and subsequent rounds of financing at an amount below the cost basis of the investment. The list is not all-inclusive and management periodically weighs all quantitative and qualitative factors in determining if any impairment loss exists.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Long-term investments in listed companies are classified as available-for-sale securities and are recorded at fair value. Unrealized gains and losses on these investments are included in accumulated other comprehensive income and loss as a separate component of shareholders&#x2019; equity, net of any related tax effect, unless unrealized losses are deemed other-than-temporary. Unrealized losses are recorded as a charge to income when deemed other-than-temporary.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Property and Equipment</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Property and equipment are stated at cost less accumulated depreciation. Major additions and betterments are capitalized, while maintenance and repairs are expensed as incurred.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Depreciation is computed on a straight-line basis over estimated service lives that range as follows: buildings - 35 to 50 years, equipment - 3 to 10 years, furniture and fixtures - 3 to 9 years, leasehold improvements - the shorter of the estimated useful life or the lease term, which is 2 to 6 years, and transportation equipment - 5 years.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Assets held for sale</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company considers assets to be held for sale (a) when management or others having the authority to do so approve a plan to sell the assets, (b) the assets are available for immediate sale in their present condition, (c) the Company has initiated an active program to locate a buyer and other actions required to complete the plan to sell the assets, (d) consummation of the transactions is probable and is expected to qualify for recognition as a completed sale, within one year, (e) the assets are being actively marketed for sale at a price that is reasonable in relation to their current fair value, and (f) the significant changes to the plan to sell the assets are not expected to be made or the plan is not expected to be withdrawn. When property and equipment are classified as held for sale, the Company discontinues depreciating the assets and measures the assets at lower of their carrying amount and fair value less costs to sell.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Long-lived Asset Impairment</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flows from the asset is separately identifiable and is less than the carrying value. If impairment occurs, a loss based on the excess of the carrying value over the fair value of the long-lived asset is recognized. Fair value is determined by reference to quoted market prices, if available, or discounted cash flows, as appropriate.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Treasury Stock</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company may retire ordinary shares repurchased under a share repurchase plan. Accordingly, upon retirement the excess of the purchase price over par value is allocated between additional paid-in capital and retained earnings based on the average issuance price of the shares repurchased. The Company may also determine not to retire ordinary shares repurchased for the purpose of reissuing them upon exercise of stock option, Employee Stock Purchase Plan, and release of restricted stock units (&#x201c;RSUs&#x201d;). The reissue cost of shares repurchased is determined by the moving average method. A repurchase of ADS is recorded as treasury stock until the Company completes the withdrawal of the underlying ordinary shares from the ADS program.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Revenue Recognition</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Revenue from product sales to customers, other than distributors, is recognized at the time of shipment and when title and right of ownership transfers to customers. The four criteria for revenue being realized and earned are the existence of evidence of sale, actual shipment, fixed or determinable selling price, and reasonable assurance of collectability.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Allowances for sales returns and discounts are provided at the time of the recognition of the related revenues on the basis of experience and these provisions are deducted from sales.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In certain limited instances, the Company sells its products through distributors. The Company has limited control over these distributors&#x2019; selling of products to third parties. Accordingly, the Company recognizes revenue on sales to distributors when the distributors sell the Company&#x2019;s products to third parties. Thus, products held by distributors are included in the Company&#x2019;s inventory balance.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Freight Costs</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Costs of shipping and handling for delivery of the Company&#x2019;s products that are reimbursed by customers are recorded as revenue in the consolidated statements of operations and comprehensive income. Shipping and handling costs are charged to cost of sales as incurred.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Research and Development</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Research and development costs consist of expenditures incurred during the course of planned research and investigation aimed at the discovery of new knowledge and intellectual property that will be useful in developing new products or processes, or at significantly enhancing existing products or production processes as well as expenditures incurred for the design and testing of product alternatives or construction of prototypes. All expenditures related to research and development activities of the Company are charged to operating expenses when incurred.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Advertising Expenses </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company expenses all advertising and promotional costs as incurred. These costs were approximately $782,000, $948,000, and $1,349,000 in 2015, 2014, and 2013, respectively. A portion of these costs was for advertising, which approximately amounted to $236,000, $205,000, and $297,000 in 2015, 2014, and 2013, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Pension Costs </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees&#x2019; pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on the actuarial calculation.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Government Grants</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Government grants received by the Company to assist with specific research and development activities are recognized as non-operating income. If the Company has an obligation to repay any of the funds provided by government grants regardless of the outcome of the research and development, the Company will estimate that obligation and recognize the amount as a liability.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Income Tax</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The provision for income tax represents income tax paid and payable for the current year plus the changes in the deferred income tax assets and liabilities during the relevant years. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. The Company believes that uncertainty exists regarding the realizability of certain deferred income tax assets and, accordingly, has established a valuation allowance for those deferred income tax assets to the extent the realizability is not deemed to be more likely than not. Deferred income tax assets and liabilities are measured using enacted tax rates.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained in a dispute with taxing authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Stock-based Compensation</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company grants stock options to its employees and certain non-employees and estimates the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods. The Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options on the date of grant. The Company also grants RSUs to its employees and the RSUs are measured based on the fair market value of the underlying stock on the date of grant.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Foreign Currency Transactions </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The functional currency is the local currency of the respective entities. Foreign currency transactions are recorded at the rate of exchange in effect when the transaction occurs. Gains or losses, resulting from the application of different foreign exchange rates when cash in foreign currency is converted into the entities&#x2019; functional currency, or when foreign currency receivable and payable are settled, are credited or charged to income in the period of conversion or settlement. At year-end, the balances of foreign currency monetary assets and liabilities are recorded based on prevailing exchange rates and any resulting gains or losses are credited or charged to income.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Translation of Foreign Currency Financial Statements</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The reporting currency of the Company is the US dollar. Accordingly, the financial statements of the foreign subsidiaries are translated into US dollars at the following exchange rates: assets and liabilities - current rate on balance sheet date; shareholders&#x2019; equity - historical rate; income and expenses - weighted average rate during the year. The resulting translation adjustment is recorded as a separate component of shareholders&#x2019; equity.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Comprehensive Income (Loss)</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Comprehensive income (loss) represents net income (loss) plus the results of certain changes in shareholders&#x2019; equity during a period from non-owner sources<b>.</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Legal Contingencies</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company is currently involved in various claims and legal proceedings. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. In view of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to the pending claims and litigation and revises these estimates as appropriate. Such revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As part of its standard terms and conditions, the Company offers limited indemnification to third parties with whom it enters into contractual relationships, including customers; however, it is not possible to determine the range of the amount of potential liability under these indemnification obligations due to the lack of prior indemnification claims. These indemnifications typically hold third parties harmless against specified losses, such as those arising from a breach of representation or covenant, or other third party claims that the Company&#x2019;s products, when used for their intended purposes, infringe the intellectual property rights of such other third parties. These indemnifications are triggered by any claim of infringement of intellectual property rights brought by a third party with respect to the Company&#x2019;s products. The terms of these indemnifications may not be waived or amended except by written notice signed by both parties, and may only be terminated with respect to the Company&#x2019;s products.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Recent Accounting Pronouncements </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In April 2014, the Financial Accounting Standard Board (&#x201c;FASB&#x201d;) issued an accounting update, which changes the criteria for reporting discontinued operations for all public and nonpublic entities. The guidance requires only disposals that represent a strategic shift that has (or will have) a major effect on the entity&#x2019;s results and operations would qualify as discontinued operations. The guidance also requires entities 1) to expand their disclosures about discontinued operations to include more information about assets, liabilities, income, and expenses and 2) to disclose the pre-tax income attributable to a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements.&#x201d; The guidance is effective for fiscal years beginning after December 15, 2014 and early adoption is prohibited. The adoption of this guidance did not have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In May 2014, the FASB issued a new standard related to revenue recognition. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an amendment to defer the effective date. The new standard is effective for fiscal years beginning after December 15, 2017 and early adoption is permitted for annual reporting periods beginning after December 15, 2016. In March and April 2016, the FASB issued two accounting updates to clarify the implementation guidance on principal versus agent considerations, performance obligations and the licensing. The new guidance is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. <font style="font-family: Times New Roman, Times, Serif">The Company is currently evaluating this guidance, but does not expect the adoption to have a material effect on the Company&#x2019;s consolidated financial statements.</font></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In June 2014, the FASB issued an accounting update, which clarifies the accounting for share-based payments. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. The guidance is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In August 2014, the FASB issued new standard related to the presentation of financial statements when there may be conditions or events that raise substantial doubt about the entity&#x2019;s ability to continue as a going concern. This standard sets forth management&#x2019;s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for fiscal years beginning after December 15, 2016 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In February 2015, the FASB issued an accounting update to amend the consolidation analysis. All legal entities are subject to reevaluation under the revised consolidation model. The amendment is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif">In July 2015, the FASB issued an accounting update to simplify the measurement of inventory. The amendment requires the measurement of inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendment applies to inventories for which cost is determined by methods other than the last-in first-out and the retail inventory methods. This amendment is effective prospectively for annual periods beginning after December 15, 2016 and early application is permitted. </font>The adoption of this amendment is not expected to have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In November 2015, the FASB issued an accounting update to simplify the presentation of deferred income taxes. The amendment requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position.&nbsp;The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this guidance.&nbsp;<font style="font-family: Times New Roman, Times, Serif">This amendment is effective prospectively or retrospectively for annual periods beginning after December 15, 2016 and early application is permitted.</font> The Company is currently evaluating the effect this standard will have on its financial position.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In January 2016, the FASB issued an accounting update regarding the subsequent measurement of equity investment. The amendment requires all equity investment to be measured at fair value with changes in the fair value recognized through net income other than those accounted for under equity method of accounting or those that result in consolidation of the investee. The amendment also simplifies the impairment assessment of equity investments without readily determinable fair value by requiring assessment for impairment qualitatively and eliminating the complexity of the other-than-temporary impairment guidance. For financial reporting, the amendment requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, for public company: the amendment eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; for nonpublic company: the amendment eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost. This amendment is effective for fiscal years beginning after December 15, 2017 <font style="font-family: Times New Roman, Times, Serif">and early application is prohibited</font>. The adoption of this amendment is not expected to have a material impact on the Company&#x2019;s financial position, results of operations, cash flow and financial statement disclosures.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify"><font style="font-size: 10pt">In February 2016, the FASB issued a new standard regarding leases. The new standard requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases other than that the entity elects the short-term lease recognition and measurement exemption. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. This standard is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the effect this standard will have on its financial position, results of operations, cash flow and financial statement disclosures.</font></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In March 2016, the FASB issued an accounting update to simplify several aspects of the accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment is effective for fiscal years beginning after December 15, 2016, and earlier adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company&#x2019;s financial position, results of operations, cash flow and financial statement disclosures.</td> </tr> </table><br/> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Basis of Presentation</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated on consolidation.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Use of Estimates</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Significant accounting estimates reflected in the Company&#x2019;s consolidated financial statements include valuation allowance for deferred income tax assets, allowance for doubtful accounts, other-than-temporary impairment of securities, inventory valuation, useful lives for property and equipment, impairment of long-lived assets and identified intangible assets, allowances for sales returns, pension and uncertain tax liabilities, contingencies and stock-based compensation.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Concentration of Credit Risk</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, short-term investments and accounts receivable. Cash is deposited with high credit quality financial institutions. For cash equivalents and short-term investments, the Company invests primarily in time deposits at the banks with good credit rating. For accounts receivable, the Company performs ongoing credit evaluations of its customers&#x2019; financial condition and the Company maintains an allowance for doubtful accounts based upon a review of the expected collectability of individual accounts.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Fair Value of Financial Instruments</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company&#x2019;s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, and notes and accounts payable. The carrying amounts approximate the fair value due to the short-term maturity of those instruments. Fair value of available-for-sale investments including short-term investments and long-term investments is based on quoted market prices. Long-term investments in private company equity securities are accounted for under the cost method because the Company does not exercise significant influence over the entities. The Company evaluates related information including operating performance, subsequent rounds of financing, advanced product development and related business plan in determining the fair value of these investments and whether an other-than-temporary decline in value exists.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Cash and Cash Equivalents </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company considers all highly liquid investments with maturities of not more than three months when purchased to be cash equivalents. Investments with maturities of more than three months are classified as short-term investments.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Restricted Cash</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company classifies deposits made for customs and cash pledged to a bank for the issuance of letters of credit as restricted cash. The deposits are classified as current assets if refundable within a twelve-month period from the balance sheet date.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Short-term Investments</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company maintains its excess cash in time deposits, government, corporate, or other agency bonds issued with high credit ratings. The specific identification method is used to determine the cost of securities sold, with realized gains and losses reflected in non-operating income and expenses. All the above-mentioned investments except for time deposits were classified as available-for-sale securities and were recorded at fair value. Unrealized gains and losses on these investments are included in accumulated other comprehensive income and loss as a separate component of shareholders&#x2019; equity, net of any related tax effect, unless unrealized losses are deemed other-than-temporary. Unrealized losses are recorded as a charge to income when deemed other-than-temporary. There were no available-for-sale securities as of December 31, 2015 and 2014.</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 17.85pt">Investment transactions are recorded on the trade date.</p> 0 0 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Inventories</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Inventories are stated at the lower of standard cost or market value. The cost of inventories comprises cost of purchasing raw materials and where applicable, those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is determined on a currently adjusted standard basis, which approximates actual cost on a first-in, first-out basis.<font style="font-family: Times New Roman, Times, Serif"> </font>The Company assesses its inventory for estimated obsolescence or unmarketable inventory based upon management&#x2019;s assumptions about future demand and market conditions and writes down inventory as needed.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Long-term Investments</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Long-term investments in private companies over which the Company does not exercise significant influence are accounted for under the cost method. Management evaluates related information in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults and subsequent rounds of financing at an amount below the cost basis of the investment. The list is not all-inclusive and management periodically weighs all quantitative and qualitative factors in determining if any impairment loss exists.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Long-term investments in listed companies are classified as available-for-sale securities and are recorded at fair value. Unrealized gains and losses on these investments are included in accumulated other comprehensive income and loss as a separate component of shareholders&#x2019; equity, net of any related tax effect, unless unrealized losses are deemed other-than-temporary. Unrealized losses are recorded as a charge to income when deemed other-than-temporary.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Property and Equipment</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Property and equipment are stated at cost less accumulated depreciation. Major additions and betterments are capitalized, while maintenance and repairs are expensed as incurred.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Depreciation is computed on a straight-line basis over estimated service lives that range as follows: buildings - 35 to 50 years, equipment - 3 to 10 years, furniture and fixtures - 3 to 9 years, leasehold improvements - the shorter of the estimated useful life or the lease term, which is 2 to 6 years, and transportation equipment - 5 years.</td></tr></table> P35Y P50Y P3Y P10Y P3Y P9Y P2Y P6Y P5Y <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Assets held for sale</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company considers assets to be held for sale (a) when management or others having the authority to do so approve a plan to sell the assets, (b) the assets are available for immediate sale in their present condition, (c) the Company has initiated an active program to locate a buyer and other actions required to complete the plan to sell the assets, (d) consummation of the transactions is probable and is expected to qualify for recognition as a completed sale, within one year, (e) the assets are being actively marketed for sale at a price that is reasonable in relation to their current fair value, and (f) the significant changes to the plan to sell the assets are not expected to be made or the plan is not expected to be withdrawn. When property and equipment are classified as held for sale, the Company discontinues depreciating the assets and measures the assets at lower of their carrying amount and fair value less costs to sell.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Long-lived Asset Impairment</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flows from the asset is separately identifiable and is less than the carrying value. If impairment occurs, a loss based on the excess of the carrying value over the fair value of the long-lived asset is recognized. Fair value is determined by reference to quoted market prices, if available, or discounted cash flows, as appropriate.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Treasury Stock</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company may retire ordinary shares repurchased under a share repurchase plan. Accordingly, upon retirement the excess of the purchase price over par value is allocated between additional paid-in capital and retained earnings based on the average issuance price of the shares repurchased. The Company may also determine not to retire ordinary shares repurchased for the purpose of reissuing them upon exercise of stock option, Employee Stock Purchase Plan, and release of restricted stock units (&#x201c;RSUs&#x201d;). The reissue cost of shares repurchased is determined by the moving average method. A repurchase of ADS is recorded as treasury stock until the Company completes the withdrawal of the underlying ordinary shares from the ADS program.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Revenue Recognition</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Revenue from product sales to customers, other than distributors, is recognized at the time of shipment and when title and right of ownership transfers to customers. The four criteria for revenue being realized and earned are the existence of evidence of sale, actual shipment, fixed or determinable selling price, and reasonable assurance of collectability.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Allowances for sales returns and discounts are provided at the time of the recognition of the related revenues on the basis of experience and these provisions are deducted from sales.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In certain limited instances, the Company sells its products through distributors. The Company has limited control over these distributors&#x2019; selling of products to third parties. Accordingly, the Company recognizes revenue on sales to distributors when the distributors sell the Company&#x2019;s products to third parties. Thus, products held by distributors are included in the Company&#x2019;s inventory balance.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Freight Costs</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Costs of shipping and handling for delivery of the Company&#x2019;s products that are reimbursed by customers are recorded as revenue in the consolidated statements of operations and comprehensive income. Shipping and handling costs are charged to cost of sales as incurred.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Research and Development</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Research and development costs consist of expenditures incurred during the course of planned research and investigation aimed at the discovery of new knowledge and intellectual property that will be useful in developing new products or processes, or at significantly enhancing existing products or production processes as well as expenditures incurred for the design and testing of product alternatives or construction of prototypes. All expenditures related to research and development activities of the Company are charged to operating expenses when incurred.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Advertising Expenses </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company expenses all advertising and promotional costs as incurred. These costs were approximately $782,000, $948,000, and $1,349,000 in 2015, 2014, and 2013, respectively. A portion of these costs was for advertising, which approximately amounted to $236,000, $205,000, and $297,000 in 2015, 2014, and 2013, respectively.</td></tr></table> 782000 948000 1349000 236000 205000 297000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Pension Costs </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees&#x2019; pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on the actuarial calculation.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Government Grants</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Government grants received by the Company to assist with specific research and development activities are recognized as non-operating income. If the Company has an obligation to repay any of the funds provided by government grants regardless of the outcome of the research and development, the Company will estimate that obligation and recognize the amount as a liability.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Income Tax</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The provision for income tax represents income tax paid and payable for the current year plus the changes in the deferred income tax assets and liabilities during the relevant years. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. The Company believes that uncertainty exists regarding the realizability of certain deferred income tax assets and, accordingly, has established a valuation allowance for those deferred income tax assets to the extent the realizability is not deemed to be more likely than not. Deferred income tax assets and liabilities are measured using enacted tax rates.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained in a dispute with taxing authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Stock-based Compensation</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company grants stock options to its employees and certain non-employees and estimates the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods. The Company has elected to use the Black-Scholes option pricing model to determine the fair value of stock options on the date of grant. The Company also grants RSUs to its employees and the RSUs are measured based on the fair market value of the underlying stock on the date of grant.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Foreign Currency Transactions </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The functional currency is the local currency of the respective entities. Foreign currency transactions are recorded at the rate of exchange in effect when the transaction occurs. Gains or losses, resulting from the application of different foreign exchange rates when cash in foreign currency is converted into the entities&#x2019; functional currency, or when foreign currency receivable and payable are settled, are credited or charged to income in the period of conversion or settlement. At year-end, the balances of foreign currency monetary assets and liabilities are recorded based on prevailing exchange rates and any resulting gains or losses are credited or charged to income.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Translation of Foreign Currency Financial Statements</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The reporting currency of the Company is the US dollar. Accordingly, the financial statements of the foreign subsidiaries are translated into US dollars at the following exchange rates: assets and liabilities - current rate on balance sheet date; shareholders&#x2019; equity - historical rate; income and expenses - weighted average rate during the year. The resulting translation adjustment is recorded as a separate component of shareholders&#x2019; equity.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Comprehensive Income (Loss)</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Comprehensive income (loss) represents net income (loss) plus the results of certain changes in shareholders&#x2019; equity during a period from non-owner sources<b>.</b></td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Legal Contingencies</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company is currently involved in various claims and legal proceedings. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. In view of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to the pending claims and litigation and revises these estimates as appropriate. Such revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As part of its standard terms and conditions, the Company offers limited indemnification to third parties with whom it enters into contractual relationships, including customers; however, it is not possible to determine the range of the amount of potential liability under these indemnification obligations due to the lack of prior indemnification claims. These indemnifications typically hold third parties harmless against specified losses, such as those arising from a breach of representation or covenant, or other third party claims that the Company&#x2019;s products, when used for their intended purposes, infringe the intellectual property rights of such other third parties. These indemnifications are triggered by any claim of infringement of intellectual property rights brought by a third party with respect to the Company&#x2019;s products. The terms of these indemnifications may not be waived or amended except by written notice signed by both parties, and may only be terminated with respect to the Company&#x2019;s products.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td><b>Recent Accounting Pronouncements </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In April 2014, the Financial Accounting Standard Board (&#x201c;FASB&#x201d;) issued an accounting update, which changes the criteria for reporting discontinued operations for all public and nonpublic entities. The guidance requires only disposals that represent a strategic shift that has (or will have) a major effect on the entity&#x2019;s results and operations would qualify as discontinued operations. The guidance also requires entities 1) to expand their disclosures about discontinued operations to include more information about assets, liabilities, income, and expenses and 2) to disclose the pre-tax income attributable to a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements.&#x201d; The guidance is effective for fiscal years beginning after December 15, 2014 and early adoption is prohibited. The adoption of this guidance did not have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In May 2014, the FASB issued a new standard related to revenue recognition. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an amendment to defer the effective date. The new standard is effective for fiscal years beginning after December 15, 2017 and early adoption is permitted for annual reporting periods beginning after December 15, 2016. In March and April 2016, the FASB issued two accounting updates to clarify the implementation guidance on principal versus agent considerations, performance obligations and the licensing. The new guidance is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. <font style="font-family: Times New Roman, Times, Serif">The Company is currently evaluating this guidance, but does not expect the adoption to have a material effect on the Company&#x2019;s consolidated financial statements.</font></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In June 2014, the FASB issued an accounting update, which clarifies the accounting for share-based payments. The guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. The guidance is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In August 2014, the FASB issued new standard related to the presentation of financial statements when there may be conditions or events that raise substantial doubt about the entity&#x2019;s ability to continue as a going concern. This standard sets forth management&#x2019;s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for fiscal years beginning after December 15, 2016 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In February 2015, the FASB issued an accounting update to amend the consolidation analysis. All legal entities are subject to reevaluation under the revised consolidation model. The amendment is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify"><font style="font-family: Times New Roman, Times, Serif">In July 2015, the FASB issued an accounting update to simplify the measurement of inventory. The amendment requires the measurement of inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendment applies to inventories for which cost is determined by methods other than the last-in first-out and the retail inventory methods. This amendment is effective prospectively for annual periods beginning after December 15, 2016 and early application is permitted. </font>The adoption of this amendment is not expected to have a material impact on the Company&#x2019;s results of operations, financial position or cash flow.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In November 2015, the FASB issued an accounting update to simplify the presentation of deferred income taxes. The amendment requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position.&nbsp;The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this guidance.&nbsp;<font style="font-family: Times New Roman, Times, Serif">This amendment is effective prospectively or retrospectively for annual periods beginning after December 15, 2016 and early application is permitted.</font> The Company is currently evaluating the effect this standard will have on its financial position.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In January 2016, the FASB issued an accounting update regarding the subsequent measurement of equity investment. The amendment requires all equity investment to be measured at fair value with changes in the fair value recognized through net income other than those accounted for under equity method of accounting or those that result in consolidation of the investee. The amendment also simplifies the impairment assessment of equity investments without readily determinable fair value by requiring assessment for impairment qualitatively and eliminating the complexity of the other-than-temporary impairment guidance. For financial reporting, the amendment requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, for public company: the amendment eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; for nonpublic company: the amendment eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost. This amendment is effective for fiscal years beginning after December 15, 2017 <font style="font-family: Times New Roman, Times, Serif">and early application is prohibited</font>. The adoption of this amendment is not expected to have a material impact on the Company&#x2019;s financial position, results of operations, cash flow and financial statement disclosures.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify"><font style="font-size: 10pt">In February 2016, the FASB issued a new standard regarding leases. The new standard requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases other than that the entity elects the short-term lease recognition and measurement exemption. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. This standard is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the effect this standard will have on its financial position, results of operations, cash flow and financial statement disclosures.</font></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In March 2016, the FASB issued an accounting update to simplify several aspects of the accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendment is effective for fiscal years beginning after December 15, 2016, and earlier adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company&#x2019;s financial position, results of operations, cash flow and financial statement disclosures.</td></tr></table> <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"><b>3.</b></td> <td><b>DISCONTINUED OPERATIONS AND EXIT ACTIVITIES</b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><b>Discontinued Operations</b></p><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As part of the Company&#x2019;s strategy to evaluate its business segments periodically, management noted that the Network Security Group has incurred significant operating losses and its business had not grown as projected. In light of the downturn of business in Network Security products the Company determined that a triggering event had occurred and initiated an impairment loss analysis on the Network Security Group&#x2019;s long-lived assets using a discounted cash flow approach in estimating fair value as market values could not be readily determined. In November 2010, the Board of Directors (the &#x201c;Board&#x201d;) resolved to discontinue the operations of Network Security Group and to liquidate the assets of the Network Security Group in due course. The Company has ceased the segment&#x2019;s operation and has commenced the related shutdown activities, most of which were completed in 2011. The Company did not have any revenue and expense from the operations of this business segment in 2015 and 2014.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company determined that the Network Security Group meets the definition of a separate component and the results of the Network Security Group are reported as discontinued operations in the accompanying statements of operations and comprehensive income.</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><b>Exit Activities </b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.6pt; text-align: justify">In December 2014, the Company determined to dissolve the Intelligent Power Group, one of the product lines of the Company&#x2019;s Integrated Circuit Group, which comprised of the IC products such as DC/DC controller ICs, battery charger controllers ICs, charger ICs, and LDO Regulator ICs. The actions taken to dissolve the Intelligent Power Group resulted in significantly reducing the developing activities of the Intelligent Power products, and terminating the related workforce.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.6pt; text-align: justify">For the year ended December 31, 2014, the Company recorded costs associated with exit activities of $3,027,000, of which $82,000 and $2,945,000 were related to a loss on asset write-off and one-time employee termination benefits, respectively. The Company determined that those assets directly held/carried by the Intelligent Power Group provided no future benefit and recognized a loss on asset write-off, including property and equipment of $24,000, and deferred charges of $58,000. As of December 31, 2014, one-time employee termination benefits of $2,945,000 were accrued and recorded as accrued expenses and other current liabilities on the balance sheet, which had been settled in 2015.</p><br/> 0 0 0 0 3027000 82000 2945000 24000 58000 2945000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>4.</b></td> <td><b>FAIR VALUE MEASUREMENTS</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company measures its cash equivalents and marketable securities at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company measures its cash equivalents and marketable securities at fair value. The Company also determines the fair value of long-term investments and long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.6pt; text-align: justify">Level 1 &#x2013; Observable inputs such as quoted prices for identical instruments in active markets;</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.6pt; text-align: justify">Level 2 &#x2013; Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.6pt; text-align: justify">Level 3 &#x2013; Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</p><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>Assets and liabilities measured at fair value on recurring and nonrecurring bases were as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements at the End of the Reporting Period</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 1</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 2</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 3</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Total</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Items measured at fair value on a recurring basis at December 31, 2015</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Cash and cash equivalents</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Money market mutual funds</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">161</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">161</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Items measured at fair value on a recurring basis at December 31, 2014</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cash and cash equivalents</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt; padding-left: 10pt">Money market mutual funds</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">162</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">162</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Items measured at fair value on a nonrecurring basis at December 31, 2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 1</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 2</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 3</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Total</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Total</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Losses</b></p></td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Long-term investments</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 45%; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Cost method securities (note 9)</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">2,414</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">2,414</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">(4,953</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25pt; text-indent: -25pt"><b>Items measured at fair value on a nonrecurring basis at December 31, 2014</b></p></td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Long-term investments</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Cost method securities (note 9)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">167</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">167</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(83</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Long-lived assets held and used related to the exit activities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Property and equipment (note 3)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(24</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Other assets (note 3)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(58</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Total nonrecurring fair value measurements</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">167</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">167</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(165</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As described in note 3, in connection with the dissolution of the Intelligent Power Group, property and equipment and deferred charges with a carrying amount of $24,000, and $58,000, respectively, were written down to their fair value of zero, resulting in an exit activities charge of $82,000, which was included in earnings for the year ended December 31, 2014.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company utilized a pricing service to estimate fair value measurements for the money market mutual funds. The pricing service utilized market quotations for fixed maturity securities that had quoted prices in active markets. Fixed maturity securities generally traded daily on dealer bids rather than bids recorded on exchanges. The pricing service prepared estimates of fair value measurements for these securities using its proprietary pricing applications which included available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Since most of the fixed maturity securities had maturities of one year or less, the Company believed that the fair value would not be materially different from the original purchased cost. The Company&#x2019;s fair value processes included controls that were designed to ensure appropriate fair values were recorded. Such controls, which may be performed quarterly or when certain assets need to be measured at fair value on a non-recurring basis, include a detailed review of methodologies and assumptions and a management review of valuation.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The fair value estimates provided by the pricing service for the Company&#x2019;s investments were based on observable market information rather than market quotes. Accordingly, the estimates of fair value for short-term investments were determined based on Level 2 inputs at December 31, 2015 and 2014, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The fair value measurement in cost method securities was determined based on certain evidential financial information. Please also see discussions in note 9.</td> </tr> </table><br/> 24000 58000 0 0 82000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements at the End of the Reporting Period</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 1</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 2</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 3</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Total</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Items measured at fair value on a recurring basis at December 31, 2015</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Cash and cash equivalents</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 56%; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Money market mutual funds</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">161</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">161</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Items measured at fair value on a recurring basis at December 31, 2014</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cash and cash equivalents</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt; padding-left: 10pt">Money market mutual funds</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">162</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">162</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 161000 161000 162000 162000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Items measured at fair value on a nonrecurring basis at December 31, 2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 1</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 2</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Level 3</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Total</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Total</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Losses</b></p></td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Long-term investments</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: right">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 45%; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Cost method securities (note 9)</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">2,414</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">2,414</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 8%; border-bottom: Black 2.25pt double; text-align: right">(4,953</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 25pt; text-indent: -25pt"><b>Items measured at fair value on a nonrecurring basis at December 31, 2014</b></p></td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Long-term investments</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Cost method securities (note 9)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">167</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">167</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(83</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Long-lived assets held and used related to the exit activities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Property and equipment (note 3)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(24</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Other assets (note 3)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(58</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Total nonrecurring fair value measurements</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">167</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">167</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(165</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table> 2414000 2414000 -4953000 167000 167000 -83000 -24000 -58000 167000 167000 -165000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>5.</b></td> <td><b>CASH AND CASH EQUIVALENTS </b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Time deposits</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">8,616</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">17,679</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Savings and checking accounts</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">32,414</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">23,214</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Money market mutual funds</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">161</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">162</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Petty cash</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">8</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">14</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">41,199</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">41,069</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Time deposits</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">8,616</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">17,679</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Savings and checking accounts</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">32,414</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">23,214</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Money market mutual funds</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">161</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">162</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Petty cash</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">8</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">14</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">41,199</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">41,069</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 8616000 17679000 32414000 23214000 161000 162000 8000 14000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>6.</b></td> <td><b>SHORT-TERM INVESTMENTS </b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Cost</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Gross<br /> Unrealized<br /> Gains</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Gross<br /> Unrealized<br /> Losses</td> <td>&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom"> <td style="width: 40%">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Time deposits</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">11,233</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">11,233</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Cost</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Gross<br /> Unrealized<br /> Gains</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Gross<br /> Unrealized<br /> Losses</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom"> <td style="width: 40%">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Time deposits</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">21,481</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">21,481</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>Short-term investments by contractual maturity were as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Cost</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Time deposits</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-align: left; text-indent: 10pt">Due within one year</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">11,205</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">11,205</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Due after one year through two years</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">28</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">28</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">11,233</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">11,233</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Cost</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Time deposits</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-align: left; text-indent: 10pt">Due within one year</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">21,477</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">21,477</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Due after one year through two years</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">21,481</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">21,481</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company&#x2019;s gross realized gains and losses on the sale of investments for the year ended December 31, 2015 were both $0. The Company&#x2019;s gross realized gains and losses on the sale of investments for the year ended December 31, 2014 were $38,000 and $2,000, respectively. Please also see discussions in note 9. The Company&#x2019;s gross realized gains and losses on the sale of investments for the year ended December 31, 2013, were $1,000 and $0, respectively.</td> </tr> </table><br/> 0 0 38000 2000 1000 0 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Cost</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Gross<br /> Unrealized<br /> Gains</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Gross<br /> Unrealized<br /> Losses</td> <td>&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom"> <td style="width: 40%">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Time deposits</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">11,233</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">11,233</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Cost</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Gross<br /> Unrealized<br /> Gains</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Gross<br /> Unrealized<br /> Losses</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom"> <td style="width: 40%">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Time deposits</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">21,481</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">21,481</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 11233000 0 0 11233000 21481000 0 0 21481000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Cost</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Time deposits</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-align: left; text-indent: 10pt">Due within one year</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">11,205</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">11,205</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Due after one year through two years</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">28</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">28</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">11,233</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">11,233</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Cost</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Time deposits</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-align: left; text-indent: 10pt">Due within one year</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">21,477</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">21,477</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Due after one year through two years</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">21,481</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">21,481</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 11205000 11205000 28000 28000 11233000 11233000 21477000 21477000 4000 4000 21481000 21481000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"><b>7.</b></td> <td><b>INVENTORIES </b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Finished goods</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3,080</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,686</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Work-in-process</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,847</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,405</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Raw materials</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4,735</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4,551</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">9,662</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">8,642</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Finished goods</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3,080</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,686</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Work-in-process</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,847</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,405</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Raw materials</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4,735</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4,551</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">9,662</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">8,642</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 3080000 2686000 1847000 1405000 4735000 4551000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"><b>8.</b></td> <td><b>PREPAID EXPENSES AND OTHER CURRENT ASSETS</b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Prepaid expenses</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">545</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">674</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Payment in advance</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">230</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">192</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other receivable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">158</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">26</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest receivable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">94</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">293</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income tax assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">26</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">17</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Value-added-tax recoverable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">19</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">69</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">87</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,126</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,308</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Prepaid expenses</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">545</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">674</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Payment in advance</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">230</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">192</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other receivable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">158</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">26</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest receivable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">94</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">293</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income tax assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">26</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">17</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Value-added-tax recoverable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">19</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">69</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">87</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,126</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,308</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 545000 674000 230000 192000 158000 26000 94000 293000 26000 17000 4000 19000 69000 87000 1126000 1308000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>9.</b></td> <td><b>LONG-TERM INVESTMENTS </b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Cost method</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-align: left; text-indent: 10pt">Sigurd Microelectronics (Cayman) Co., Ltd. (&#x201c;Sigurd Cayman&#x201d;)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,365</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">7,200</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">X-FAB Silicon Foundries SE (&#x201c;X-FAB&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,968</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,968</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Philip Ventures Enterprise Fund (&#x201c;PVEF&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">49</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">497</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">GEM Services, Inc. (&#x201c;GEM&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">78</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">78</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Excelliance MOS Co., Ltd (&#x201c;EMC&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,844</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,844</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Verticil Electronics Corp. (&#x201c;Verticil&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">167</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Asia Sinomos Semiconductor Inc. (&#x201c;Sinomos&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Silicon Genesis Corporation (&#x201c;SiGen&#x201d;)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">9,304</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">14,754</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Available-for-sale securities &#x2013; noncurrent</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Etrend Hightech Corp. (&#x201c;Etrend&#x201d;)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">9,304</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">14,754</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The following table shows the movement of gross unrealized gains and losses of the Company&#x2019;s available-for-sale securities.</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Balance at beginning of period</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">-</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">398</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">56</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other comprehensive income before reclassification adjustment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">74</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">342</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Reclassification adjustment</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(472</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Balance at end of period</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">398</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 18.15pt; text-align: justify">In July 2008, the Company invested in preferred shares of Sigurd Cayman for $5,700,000 to become a strategic partner of Sigurd Microelectronics Corporation (&#x201c;Sigurd&#x201d;). Upon completion of the transaction, the Company obtained a 19.54% ownership of Sigurd Cayman. The Company accounts for the investment under the cost method as the Company does not exercise significant influence over operating and financial policies of Sigurd Cayman and management of Sigurd holds the controlling interests. In April 2010, the Company participated in another round of preferred shares issued by Sigurd Cayman amounting to $1,500,000. In September 2015, Sigurd Cayman announced the liquidation of its wholly owned subsidiary, Sigurd Microelectronics (Wuxi) Co., Ltd. (&#x201c;Sigurd Wuxi&#x201d;), whose sales and operations account for the majority business of Sigurd Cayman. In view of Sigurd Cayman&#x2019;s recurring financial losses and its decision to cease operations of Sigurd Wuxi, the Company determined that the decline in fair value of the investment in Sigurd Cayman was other-than-temporary and recognized an impairment charge of $4,835,000 in 2015. The resulting investment which was classified as Level 3 in the fair value hierarchy was valued using a discounted cash flow model considering the latest available financial information which primarily consists of cash and time deposits. The valuation inputs primarily included an estimate of future cash flows, expectations about possible variations in the amount and timing of cash flows. The significant unobservable input is assuming no future revenue and cost associated with production activities. As of December 31, 2015, the Company held 9,690,445 shares, which represented an 18.88% ownership of Sigurd Cayman, and the fair value of the investment after impairment was $2,365,000.</p><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company invested in X-FAB&#x2019;s ordinary shares in July 2002. X-FAB (formerly known as X-FAB Semiconductor Foundries AG) is a European-American foundry group that specializes in analog/mixed-signal application. As of December 31, 2015, the Company held 530,000 shares at the cost of $4,968,000 (4,982,000 EURO), which represented a 1.60% ownership of X-FAB. In April 2016, the Company sold the entire X-FAB&#x2019;s ordinary shares to a third party company and recognized a gain on disposal of $413,000.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In November 2005, the Company invested in PVEF, a fund management company in Singapore, with an investment amount of $585,000 (SG$1,000,000) for 20 units in the placement at SG$50,000 per unit. The Company further invested $357,000 (SG$500,000) in June 2010 to obtain 30 units. A portion of the shares were redeemed by PVEF in November 2012 and May 2015 at a cost of $445,000 and $330,000, respectively, and the carrying cost of the Company is reduced to $167,000 accordingly. In December 2015, in view of the fund&#x2019;s liquidation and continuous lower net asset value than the cost, the Company determined that the decline in fair value of the investment in PVEF was other-than- temporary and recognized an impairment charge of $118,000. The fair value for the fund was estimated based on the net asset value of the Company&#x2019;s ownership interest in the fund. The investment was classified as Level 3 in the fair value hierarchy since the fund was redeemable at December 31, 2015. Distributions from fund will be received through the liquidation of the underlying assets of the fund or the redemption of shares initiated by the fund. As of December 31, 2015, there were no unfunded commitments and the Company held a 5% interest in the fund as of December 31, 2015.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company invested in GEM&#x2019;s preference shares in August 2002. GEM is a multinational semiconductor assembly and test company. On April 16, 2012, GEM signed a share purchase agreement with a listed company in Taiwan which will purchase GEM&#x2019;s preference share at a price of $0.235 per share to obtain approximately 58.4% ownership of GEM. In respect to this subsequent event, the Company considered this a Type I subsequent event and the investment to be other-than-temporarily impaired. Therefore, the Company recognized an impairment loss of $422,000 as of December 31, 2011. As of December 31, 2015, the Company held 333,334 shares at the cost of $78,000, which represented a 0.35% ownership of GEM.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company invested $1,960,000 (NT$62,900,000) in EMC&#x2019;s 3,468,000 ordinary shares in June 2010. EMC is a fabless power device design company in Taiwan, specialized in power semiconductor process development, and the design of high efficiency power device and system. In December 2012, the Company sold 200,000 shares in the amount of $138,000 in the process of EMC&#x2019;s getting listed on the Emerging Stock GreTai Security Market of Taiwan. As of December 31, 2015, the Company held 3,474,854 shares at the cost of $1,844,000, which represented a 10.98% ownership of EMC.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In July 2013, the Company invested $250,000 (NT$7,500,000) in Verticil, a privately-owned manufacturer of LED power modules and integrated lighting solutions provider in Taiwan. Based on the recent operating status and a round of financing of Verticil in August 2014, the Company considered the investment to be other-than-temporarily impaired. Therefore, the Company recognized an impairment loss of $83,000 (NT$2,500,000) in the third quarter of 2014. The Company sold the entire Verticile shares during the second half of 2015 and a gain of $8,000 was recorded for the year ended December 31, 2015.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify"><font style="font-size: 10pt">The Company invested in Etrend&#x2019;s ordinary shares in December 2002, July 2003, and March 2004, respectively. Etrend is a wafer probing, packing and testing company. In August 2007, Etrend&#x2019;s shares were listed on the Emerging Stock GreTai Security Market of Taiwan and the Company reclassified the investment in Etrend to available-for-sale securities. Etrend was successfully listed on the GreTai Securities Market of Taiwan</font> <font style="font-size: 10pt">in November 2010. The Company sold the entire Etrend shares in the stock exchange market during the second half of 2014 and a gain of $436,000 was recorded for the year ended December 31, 2014.</font></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In January 2005, the Company invested in ordinary shares of Sinomos, a privately owned foundry company, at a total amount of $5,000,000. In May and December 2006, the Company further invested in preferred shares of $3,288,000 and $4,785,000, respectively. In September 2008, in view of Sinomos&#x2019; operating status and recurring financial losses, the Company determined that the decline in fair value of the investment in Sinomos was other-than-temporary and recognized an impairment charge of $13,073,000. Along with the recognition of impairment charge, the Company also wrote-off the outstanding prepayments in relation to Sinomos&#x2019; foundry service of $2,942,000. As of December 31, 2015, the Company held 30,101,353 of ordinary and preference shares, representing an 18.41% ownership of Sinomos.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company invested in SiGen preferred shares in December 2000. SiGen is an advanced nanotechnology company that develops Silicon-on-insulator, stained-silicon products and other engineered multi-layer structures to microelectronics and photonic for advanced electronic and opto-electronic device applications. In 2002 and 2003, the Company reviewed qualitative factors related to the investment, determined that the decline in value was other-than-temporary and the carrying value was decreased to zero. The Company held 23,946 shares of SiGen as of December 31, 2015, representing a 0.06% ownership of SiGen.</td> </tr> </table><br/> 5700000 0.1954 1500000 4835000 9690445 0.1888 2365000 530000 4968000 4982000 0.0160 413000 585000 1000000 20 50000 357000 500000 30 445000 330000 167000 118000 0 0.05 0.235 0.584 422000 333334 78000 0.0035 1960000 62900000 3468000 200000 138000 3474854 1844000 0.1098 250000 7500000 83000 2500000 8000 436000 5000000 3288000 4785000 13073000 2942000 30101353 0.1841 0 0 23946 0.0006 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Cost method</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-align: left; text-indent: 10pt">Sigurd Microelectronics (Cayman) Co., Ltd. (&#x201c;Sigurd Cayman&#x201d;)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,365</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">7,200</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">X-FAB Silicon Foundries SE (&#x201c;X-FAB&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,968</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,968</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Philip Ventures Enterprise Fund (&#x201c;PVEF&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">49</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">497</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">GEM Services, Inc. (&#x201c;GEM&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">78</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">78</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Excelliance MOS Co., Ltd (&#x201c;EMC&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,844</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,844</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Verticil Electronics Corp. (&#x201c;Verticil&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">167</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Asia Sinomos Semiconductor Inc. (&#x201c;Sinomos&#x201d;)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Silicon Genesis Corporation (&#x201c;SiGen&#x201d;)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">9,304</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">14,754</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Available-for-sale securities &#x2013; noncurrent</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Etrend Hightech Corp. (&#x201c;Etrend&#x201d;)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">9,304</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">14,754</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 2365000 7200000 4968000 49000 497000 78000 78000 1844000 1844000 167000 9304000 14754000 9304000 14754000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Balance at beginning of period</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">-</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">398</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">56</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Other comprehensive income before reclassification adjustment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">74</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">342</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Reclassification adjustment</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(472</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Balance at end of period</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">398</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 0 398000 56000 0 0 0 0 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>10.</b></td> <td><b>PROPERTY AND EQUIPMENT, NET </b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Cost</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-indent: 10pt">Land</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,510</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,510</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Buildings</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6,066</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">8,055</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Equipment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">21,819</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">22,751</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Furniture and fixtures</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">826</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,030</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Leasehold improvements</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,785</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2,052</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Transportation equipment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">698</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">668</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Property leased to others</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3,875</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3,766</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Prepayment for property and equipment</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">1,863</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4,397</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">39,442</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">45,229</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accumulated depreciation</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Buildings</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,526</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,757</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Equipment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20,965</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20,887</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Furniture and fixtures</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">744</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">886</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Leasehold improvements</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,474</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,701</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Transportation equipment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">619</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">619</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Property leased to others</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">103</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">16</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">25,431</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">25,866</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">14,011</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">19,363</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Depreciation expense recognized during the years ended December 31, 2015, 2014, and 2013 was approximately $1,730,000, $2,548,000, and $3,464,000, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As a result of dissolution activities of the Intelligent Power Group, a loss on asset write-off of $24,000 on property and equipment was incurred for the year ended December 31, 2014. Please see discussions in note 3.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In August 2009, the Company sold its land, located in Hsinchu, Taiwan, to a real estate developer in exchange for a portion of the real estate after it is developed, which includes a portion of an office building and a portion of a parking lot, with a carrying value of approximately $8,918,000. The Company consummated this transaction to acquire office building space and parking lot space for the purpose of future operations and business growth. The Company deferred the transaction gain of $129,000 during the construction period. Since the fourth quarter of 2014, the title of some units of the buildings were completed and sold to the third party and the Company has realized the deferred gain of $106,000 accordingly. Considering the Company&#x2019;s current operating scale and capital requirements, the Company leased out three units to a third party in December 2014. The Company has also sold 5 building units to third parties since the fourth quarter of 2014. As a result of the sale of building units, net gains of $767,000 and $458,000 were recorded for the years ended December 31, 2015 and 2014, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Beginning in November 2015, the Company has negotiated with a third party company to dispose one of the three units of the Company&#x2019;s office building located in China. A letter of intent has also been signed by both parties in January 2016. The Company determined that this transaction meets the criteria of asset held for sale and such reclassification was made as of December 31, 2015. In April 2016, an agreement was signed by both parties and this transaction is expected to be completed in the second half of 2016.</td> </tr> </table><br/> 1730000 2548000 3464000 24000 8918000 129000 106000 3 5 767000 458000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Cost</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-indent: 10pt">Land</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,510</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,510</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Buildings</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6,066</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">8,055</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Equipment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">21,819</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">22,751</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Furniture and fixtures</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">826</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,030</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Leasehold improvements</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,785</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2,052</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Transportation equipment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">698</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">668</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Property leased to others</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3,875</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3,766</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Prepayment for property and equipment</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">1,863</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4,397</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">39,442</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">45,229</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accumulated depreciation</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Buildings</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,526</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,757</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Equipment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20,965</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20,887</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Furniture and fixtures</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">744</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">886</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Leasehold improvements</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,474</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,701</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Transportation equipment</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">619</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">619</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Property leased to others</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">103</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">16</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">25,431</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">25,866</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">14,011</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">19,363</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 2510000 2510000 6066000 8055000 21819000 22751000 826000 1030000 1785000 2052000 698000 668000 3875000 3766000 1863000 4397000 39442000 45229000 1526000 1757000 20965000 20887000 744000 886000 1474000 1701000 619000 619000 103000 16000 25431000 25866000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"><b>11.</b></td> <td><b>OTHER ASSETS </b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Deferred charges</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,060</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,338</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Land use rights</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">743</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,151</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Refundable deposits</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">483</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">565</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Deferred income tax assets - noncurrent</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">203</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">114</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">2,489</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">3,168</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Deferred charges are advanced payments for consulting, maintenance, and engineering license contracts and are amortized over the terms of the contracts from 2 to 5 years. Amortization expense of the deferred charges for the years ended December 31, 2015, 2014, and 2013 was approximately $688,000, $1,142,000, and $1,162,000, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As a result of dissolution activities of the Intelligent Power Group, loss on asset write-off of $58,000 on deferred charges was incurred for the year ended December 31, 2014. Please see discussions in note 3.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">All land within municipal zones in China is owned by the government. Limited liability companies, joint stock companies, foreign-invested enterprises, privately held companies and individual natural persons must pay fees for granting of rights to use land within municipal zones. Legal use of land is evidenced and sanctioned by land use certificates issued by the local municipal administration of land resources. Land use rights granted for industrial purposes are limited to a term of no more than 50 years.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Land use rights are recorded at cost less accumulated amortization. Amortization is provided on a straight-line basis over the term of the land use rights agreement which is 49.7 years. Amortization expense of the land use rights for the years ended December 31, 2015, 2014, and 2013 was approximately $28,000, $28,000, and $28,000, respectively.</td> </tr> </table><br/> P2Y P5Y 688000 1142000 1162000 58000 P50Y P49Y255D 28000 28000 28000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Deferred charges</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,060</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,338</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Land use rights</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">743</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,151</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Refundable deposits</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">483</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">565</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Deferred income tax assets - noncurrent</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">203</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">114</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">2,489</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">3,168</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 1060000 1338000 743000 1151000 483000 565000 203000 114000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>12.</b></td> <td><b>ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES </b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Salaries, bonus and benefits</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,305</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3,094</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred income tax liabilities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2,206</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">119</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Engineering related expenses</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">630</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,030</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Consulting fees</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">366</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">150</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Legal and audit fees</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">361</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">258</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Shipping expenses</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">146</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">92</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Withholding tax payable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">100</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">138</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Promotional expenses</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">35</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">56</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Value-added tax payable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">27</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">158</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other accrued expenses</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">926</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">954</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">7,102</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">6,049</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Salaries, bonus and benefits</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,305</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3,094</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred income tax liabilities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2,206</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">119</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Engineering related expenses</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">630</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,030</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Consulting fees</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">366</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">150</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Legal and audit fees</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">361</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">258</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Shipping expenses</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">146</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">92</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Withholding tax payable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">100</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">138</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Promotional expenses</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">35</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">56</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Value-added tax payable</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">27</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">158</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Other accrued expenses</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">926</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">954</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">7,102</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">6,049</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 2305000 3094000 2206000 119000 630000 1030000 366000 150000 361000 258000 146000 92000 100000 138000 35000 56000 27000 158000 926000 954000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>13.</b></td> <td><b>INCOME TAX</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company is not subject to income or other taxes in the Cayman Islands. However, subsidiaries are subject to taxes of the jurisdiction where they are located.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>Loss before income taxes from continuing operations consisted of:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Cayman Islands</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(19,183</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(18,943</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(22,116</td> <td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Foreign</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">2,728</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">5,070</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4,015</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(16,455</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(13,873</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(18,101</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>Income tax expense from continuing operations consisted of:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Current</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,651</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,106</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">951</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Deferred</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">1,989</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">78</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">41</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Income tax expense</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">4,640</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,184</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">992</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>Income tax expenses from discontinued operations were all $0 for the years ended December 31, 2015, 2014, and 2013, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company and its subsidiaries file separate income tax returns. The applicable statutory income tax rate in the Cayman Islands was zero for the Company for the years being reported. The reconciliation between the provision for income taxes at the statutory rate and the provision for income taxes at the effective tax rate is as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Tax expense at statutory rate</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Increase (decrease) in tax resulting from:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left; text-indent: 10pt">Differences between Cayman and foreign tax rates</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">675</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">989</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">808</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Changes in deferred income tax assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,976</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(72</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(474</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Adjustments to prior years&#x2019; taxes</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">23</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Changes in valuation allowances for deferred income tax assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">13</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">150</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">515</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Withholding taxes on repatriation of subsidiary profits</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,757</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Other</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">199</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">94</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">123</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">4,640</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,184</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">992</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: justify; text-indent: -17.85pt">The deferred income tax assets and liabilities as of December 31, 2015 and 2014 consisted of the following:</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income tax assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-align: left; text-indent: 10pt">Research and development credits</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">5,933</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">5,858</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Net operating loss carryforwards</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">195</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">101</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Depreciation and amortization</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">277</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">293</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Accrued vacation and other expenses</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">56</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">98</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6,461</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6,350</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(6,232</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(6,219</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Total net deferred income tax assets</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">229</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">131</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income tax liabilities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Withholding taxes on repatriation of subsidiary profits</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">2,188</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Unrealized foreign exchanges</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">18</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">109</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Unrealized capital allowance</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">10</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">2,206</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">119</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The valuation allowance shown in the table above relates to net operating losses, credit carryforwards and temporary differences for which the Company believes that realization is not more than likely. The valuation allowance increased by $13,000, $150,000, and $515,000 for the years ended December 31, 2015, 2014, and 2013, respectively. The changes in the valuation allowance in 2015, 2014, and 2013 were primary due to the fluctuations in R&amp;D credits from O₂Micro Inc. that could not be utilized.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As of December 31, 2015, O₂Micro, Inc. had U.S. federal and state research and development credit carryforwards of approximately $5,304,000 and $6,721,000, respectively. The US federal research and development credit will expire from 2022 through 2034 if not utilized, while the state research and development credit will never expire. Utilization of the research and development credits may be subject to significant annual limitation due to the ownership change limitations provided by the U.S. Internal Revenue Code of 1986 and similar provisions in the State of California&#x2019;s tax regulations. The annual limitation may result in the expiration of federal research and development credits before utilization.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">To better position itself for the future growth phase, the Company considered the repatriation of the earnings from subsidiaries in Taiwan and China in the second and fourth quarter of 2015. As a result, a deferred tax liability and a withholding tax expenses for the unremitted earnings in Taiwanese and Chinese subsidiaries have been recorded for $2,188,000 as of December 31, 2015.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company files income tax returns in various foreign jurisdictions. The Company is generally no longer subject to income tax examinations by tax authorities for years prior to 2010 because of the statute of limitations.</td> </tr> </table><br/> 0 0 0 0.00 0.00 0.00 13000 150000 515000 5304000 6721000 2188000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Cayman Islands</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(19,183</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(18,943</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(22,116</td> <td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Foreign</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">2,728</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">5,070</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">4,015</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(16,455</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(13,873</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(18,101</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table> -19183000 -18943000 -22116000 2728000 5070000 4015000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Current</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">2,651</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,106</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">951</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Deferred</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">1,989</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">78</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">41</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Income tax expense</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">4,640</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,184</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">992</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 2651000 1106000 951000 1989000 78000 41000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Tax expense at statutory rate</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Increase (decrease) in tax resulting from:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left; text-indent: 10pt">Differences between Cayman and foreign tax rates</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">675</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">989</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">808</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Changes in deferred income tax assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,976</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(72</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(474</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Adjustments to prior years&#x2019; taxes</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">23</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Changes in valuation allowances for deferred income tax assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">13</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">150</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">515</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Withholding taxes on repatriation of subsidiary profits</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,757</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Other</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">199</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">94</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">123</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">4,640</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,184</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">992</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 675000 989000 808000 1976000 -72000 -474000 20000 23000 20000 13000 150000 515000 1757000 199000 94000 123000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income tax assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 70%; text-align: left; text-indent: 10pt">Research and development credits</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">5,933</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">5,858</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Net operating loss carryforwards</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">195</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">101</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Depreciation and amortization</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">277</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">293</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Accrued vacation and other expenses</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">56</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">98</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6,461</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6,350</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(6,232</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(6,219</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Total net deferred income tax assets</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">229</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">131</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred income tax liabilities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Withholding taxes on repatriation of subsidiary profits</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">2,188</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Unrealized foreign exchanges</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">18</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">109</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Unrealized capital allowance</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">10</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">2,206</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">119</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 5933000 5858000 195000 101000 277000 293000 56000 98000 6461000 6350000 6232000 6219000 229000 131000 18000 109000 10000 2206000 119000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>14.</b></td> <td><b>RETIREMENT AND PENSION PLANS</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company has a savings plan that qualifies under Section 401(k) of the US Internal Revenue Code. Participating employees may defer up to the US Internal Revenue Service statutory limit amounts of pretax salary. The Company may make voluntary contributions to the savings plan but has made no contributions since the inception of the savings plan in 1997.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company also participates in mandatory pension funds and social insurance schemes, if applicable, for employees in jurisdictions in which other subsidiaries or offices are located to comply with local statutes and practices. For the years ended December 31, 2015, 2014, and 2013, pension costs charged to income in relation to the contributions to these schemes were $1,152,000, $1,328,000, and $1,586,000, respectively. The Company adopted a defined benefit pension plan and established an employee pension fund committee for certain employees of O₂Micro-Taiwan who are subject to the Taiwan Labor Standards Law (&#x201c;Labor Law&#x201d;) to comply with local requirements. This benefit pension plan provides benefits based on years of service and average salary computed based on the final six months of employment. The Labor Law requires the Company to contribute between 2% to 15% of employee salaries to a government specified plan, which the Company currently makes monthly contributions equal to 2% of employee salaries. Contributions are required to be deposited in the name of the employee pension fund committee with the Bank of Taiwan.</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: justify; text-indent: -1.35pt">The government is responsible for the administration of all the defined benefit plans for the companies in Taiwan under the Labor Standards Law. The government also sets investment policies and strategies, determines investment allocation and selects investment managers. As of December 31, 2015 and 2014, the asset allocation was primarily in cash, equity securities and debt securities. Furthermore, under the Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. However, information on how investment allocation decisions are made, inputs and valuation techniques used to measure the fair value of plan assets, the effect of fair value measurements using significant unobservable inputs on changes in plan assets for the period and significant concentrations of risk within plan assets is not fully made available to the companies by the government. Therefore, the Company is unable to provide the required fair value disclosures related to pension plan assets.</p><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>The percentage of major category of plan assets as of December 2015 and 2014 were as follows:</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%">Cash</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">17</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">19</td> <td style="width: 1%; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Debt securities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">30</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">31</td> <td style="text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Equity securities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">50</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">50</td> <td style="text-align: left">%</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>Changes in projected benefit obligation and plan assets for the years ended December 31, 2015 and 2014 were as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Projected benefit obligation, beginning of the year</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">838</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">933</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,220</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Service cost</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest cost</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">16</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">17</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">18</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Benefits paid</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Actuarial (gain) loss</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">11</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(61</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(277</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Effect of changes in foreign exchange rate</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(30</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(54</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(31</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Projected benefit obligation, end of the year</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">838</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">838</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">933</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Fair value of plan assets, beginning of the year</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">545</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">542</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">512</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Employer contributions</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">27</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">24</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">36</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Actual return on plan assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">14</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">12</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">7</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Effect of changes in foreign exchange rate</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(20</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(33</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(13</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Fair value of plan assets, end of the year</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">566</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">545</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">542</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>The component of net periodic benefit cost was as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Service cost</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest cost</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">16</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">17</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">18</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected return on plan assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(9</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(9</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(9</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Amortization of net pension loss</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">6</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">6</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">20</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Net periodic benefit cost</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">16</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">17</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">32</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>The funded status of the plan was as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; padding-bottom: 2.25pt">Accumulated benefit obligation</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 12%; border-bottom: Black 2.25pt double; text-align: right">(672</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 12%; border-bottom: Black 2.25pt double; text-align: right">(653</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Project benefit obligation</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(838</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(838</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Plan assets at fair value</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">566</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">545</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Funded status of the plan</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(272</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(293</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>The actuarial assumptions to determine the benefit obligations were as follows:</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Discount rate</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">1.5</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">2.0</td> <td style="width: 1%; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rate of compensation increases</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>The actuarial assumptions to determine the net periodic benefit cost were as follows:</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Discount rate</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">2.0</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">2.0</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">2.0</td> <td style="width: 1%; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rate of compensation increases</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected long-term rate of return on plan assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1.8</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1.8</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1.8</td> <td style="text-align: left">%</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: justify; text-indent: -1.35pt">The expected long-term rate of return shown for the plan assets was weighted to reflect a two-year deposit interest rate of local banking institutions.</p><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>Estimated future benefit payments are as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Year</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 85%; text-align: left">2016</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">10</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2017</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">19</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2018</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2019</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">14</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2020 and thereafter</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">391</td> <td style="text-align: left">&nbsp;</td> </tr> </table><br/> 1152000 1328000 1586000 0.02 0.15 0.02 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%">Cash</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">17</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">19</td> <td style="width: 1%; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Debt securities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">30</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">31</td> <td style="text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Equity securities</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">50</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">50</td> <td style="text-align: left">%</td> </tr> </table> 0.17 0.19 0.30 0.31 0.50 0.50 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Projected benefit obligation, beginning of the year</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">838</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">933</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,220</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Service cost</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest cost</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">16</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">17</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">18</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Benefits paid</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">-</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Actuarial (gain) loss</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">11</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(61</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(277</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Effect of changes in foreign exchange rate</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(30</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(54</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(31</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Projected benefit obligation, end of the year</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">838</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">838</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">933</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Fair value of plan assets, beginning of the year</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">545</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">542</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">512</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Employer contributions</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">27</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">24</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">36</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Actual return on plan assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">14</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">12</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">7</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Effect of changes in foreign exchange rate</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(20</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(33</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(13</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Fair value of plan assets, end of the year</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">566</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">545</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">542</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 838000 933000 1220000 3000 3000 3000 16000 17000 18000 -11000 61000 277000 -30000 -54000 -31000 838000 545000 542000 512000 27000 24000 36000 14000 12000 7000 -20000 -33000 -13000 566000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Service cost</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">3</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest cost</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">16</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">17</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">18</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected return on plan assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(9</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(9</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(9</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Amortization of net pension loss</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">6</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">6</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">20</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Net periodic benefit cost</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">16</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">17</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">32</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 9000 9000 9000 -6000 -6000 -20000 16000 17000 32000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left; padding-bottom: 2.25pt">Accumulated benefit obligation</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 12%; border-bottom: Black 2.25pt double; text-align: right">(672</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="width: 1%; padding-bottom: 2.25pt">&nbsp;</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="width: 12%; border-bottom: Black 2.25pt double; text-align: right">(653</td> <td style="width: 1%; border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Project benefit obligation</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(838</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(838</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Plan assets at fair value</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">566</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">545</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Funded status of the plan</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(272</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(293</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table> -672000 -653000 -272000 -293000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; text-align: left">Discount rate</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">1.5</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">2.0</td> <td style="width: 1%; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rate of compensation increases</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> </tr> </table> 0.015 0.020 0.020 0.020 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Discount rate</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">2.0</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">2.0</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">2.0</td> <td style="width: 1%; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Rate of compensation increases</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2.0</td> <td style="text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected long-term rate of return on plan assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1.8</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1.8</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1.8</td> <td style="text-align: left">%</td> </tr> </table> 0.020 0.020 0.020 0.020 0.018 0.018 0.018 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Year</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 85%; text-align: left">2016</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">10</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2017</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">19</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2018</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">20</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2019</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">14</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2020 and thereafter</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">391</td> <td style="text-align: left">&nbsp;</td> </tr> </table> 10000 19000 20000 14000 391000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"><b>15.</b></td> <td><b>STOCK-BASED COMPENSATION</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Employee Stock Purchase Plan</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In October 1999, the Board adopted the 1999 Employee Stock Purchase Plan (&#x201c;1999 Purchase Plan&#x201d;), which was approved by the shareholders prior to the consummation of its initial public offering in August 2000. A total of 50,000,000 ordinary shares were reserved for issuance under the 1999 Purchase Plan, plus annual increases on January 1 of each year, commencing in 2001, up to 40,000,000 shares as approved by the Board. In June 2008, an additional 20,000,000 shares were reserved for issuance as also approved by the Board. The 1999 Purchase Plan was subject to adjustment in the event of a stock split, stock dividend or other similar changes in ordinary shares or capital structure.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The 1999 Purchase Plan permitted eligible employees to purchase ordinary shares through payroll deductions, which may range from 1% to 10% of an employee&#x2019;s regular base pay. Beginning November 1, 2005, the 1999 Purchase Plan was implemented through consecutive offer periods of 3 months&#x2019; duration commencing on the first day of February, May, August and November. Under the 1999 Purchase Plan, ordinary shares may be purchased at a price equal to the lesser of 90% of the fair market value of the Company&#x2019;s ordinary shares on the date of grant of the option to purchase (which is the first day of the offer period) or 90% of the fair market value of the Company&#x2019;s ordinary shares on the applicable exercise date (which is the last day of the offer period). Employees may have elected to discontinue their participation in the purchase plan at any time; however, all of the employee&#x2019;s payroll deductions previously credited to the employee&#x2019;s account will be applied to the exercise of the employee&#x2019;s option on the next exercise date. Participation ends automatically on termination of employment with the Company. If not terminated earlier, the 1999 Purchase Plan had a term of 10 years. By 2009, 10,685,400 ordinary shares had been purchased under the 1999 Purchase Plan.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As approved by the EGM held on May 30, 2009, the Company adopted the 2009 Employee Stock Purchase Plan (&#x201c;2009 Purchase Plan&#x201d;) along with the Company delisting from SEHK in September 2009. The 2009 Purchase Plan succeeded the 1999 Purchas Plan, and the terms and provisions of 2009 Purchase Plan are generally the same as the 1999 Purchase Plan. The 2009 Purchase Plan has a term of 10 years, if not terminated earlier. A total of 25,000,000 ordinary shares were reserved for issuance under the 2009 Purchase Plan starting November 2009. As approved by the Annual General Meeting of Shareholders (&#x201c;AGM&#x201d;) held on June 22, 2012, additional 15,000,000 ordinary shares were reserved for issuance under the 2009 Purchase Plan. From 2013 to 2015, 16,164,150 ordinary shares had been purchased under the 2009 Purchase Plan.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Stock Option Plans</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In 1997, the Board adopted the 1997 Stock Plan, and in 1999, adopted the 1999 Stock Incentive Plan. The plans provide for the granting of stock options to employees, directors and consultants of the Company.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Under the 1997 Stock Plan, the Board reserved 185,000,000 ordinary shares for issuance. After the completion of an initial public offering, no further options were granted under the 1997 Stock Plan. Under the 1999 Stock Incentive Plan, the maximum aggregate number of shares available for grant was 150,000,000 ordinary shares plus an annual increase on January 1 of each year, which commenced in 2001, equal to the lesser of 75,000,000 shares or 4% of the outstanding ordinary shares on the last day of the preceding fiscal year or a smaller number determined by the plan administrator. As of December 31, 2015, the number of options outstanding and exercisable was 722,300 and 722,300, respectively, under the 1999 Stock Incentive Plan.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Board adopted the 2005 Share Option Plan (&#x201c;2005 SOP&#x201d;), which was effective on March 2, 2006, the date the Company completed the listing on the SEHK. The adoption of the 2005 SOP also resulted in the Board terminating the 1997 Stock Plan and 1999 Stock Incentive Plan. The Company began issuing stock options solely under the 2005 SOP for up to 100,000,000 ordinary shares. As approved by the EGM held on May 30, 2009, the number of shares available for issue was increased from 100,000,000 to 175,000,000 shares. The references to Hong Kong and Hong Kong related rules and regulations were also removed along with the completion of the Company&#x2019;s delisting from the SEHK in 2009. As approved by the AGM held on June 22, 2012, additional 50,000,000 ordinary shares were reserved for issuance under the 2005 SOP. Under the terms of the 2005 SOP, stock options are generally granted at fair market value of the Company&#x2019;s ordinary shares. The stock options have a contractual term of 8 years from the date of grant and vest over a requisite service period of 4 years. As of December 31, 2015, the number of options outstanding and exercisable was 176,806,500 and 126,404,750, respectively, under the 2005 SOP. In 2015, the Board adopted the 2015 Stock Incentive Plan, which was approved by the Shareholders in July 2015, and replaced the 2005 SOP after it expired on March 2, 2016.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">A summary of the Company&#x2019;s stock option activity under the plans as of December 31, 2015, and changes during the year then ended is presented as follows:</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">&nbsp;<br /> &nbsp;<br /> Number of<br /> Options Shares</td> <td style="font-weight: bold">&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted<br /> Average<br /> Exercise<br /> Price</td> <td style="font-weight: bold">&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted<br /> Average<br /> Remaining<br /> Contract Life</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">&nbsp;<br /> Aggregate<br /> Intrinsic<br /> Value</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%">Outstanding Options, January 1, 2015</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">228,666,600</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">0.1345</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Granted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">43,263,900</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0501</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Exercised</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(677,100</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0460</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Forfeited or expired</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(93,724,600</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">$</td> <td style="padding-bottom: 1pt; text-align: right">0.1938</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Outstanding Options, December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">177,528,800</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0869</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">4.18</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Vested and Expected to Vest Options at December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">175,617,560</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0831</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">4.16</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Exercisable Options at December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">127,127,050</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0944</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">3.21</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The total intrinsic value of options exercised during the years ended December 31, 2015, 2014, and 2013 was $2,000, $13,000, and $9,000, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>The following table summarizes information about outstanding and vested stock options:</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center">&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Options Outstanding</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Options Exercisable</td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left"><br /> Range of Exercise Prices</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center"><br /> Number<br /> Outstanding</td> <td style="font-weight: bold">&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center"><br /> Weighted<br /> Average<br /> Exercise<br /> Price</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center"><br /> Number<br /> Exercisable<br /> and Vested</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center"><br /> Weighted<br /> Average<br /> Exercise<br /> Price</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%">$0.0454 - $0.0506</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">46,740,200</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">3.57</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">0.0476</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">32,034,900</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">0.0467</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>$0.0522 - $0.0750</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">40,027,700</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">5.61</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0663</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">24,111,300</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0653</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>$0.0776 - $0.0940</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">31,246,750</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6.16</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0826</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">12,323,500</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0863</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>$0.0948 - $0.1276</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">33,915,300</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3.25</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.1124</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">33,058,500</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.1125</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">$0.1320 - $0.2176</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">25,598,850</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: right">1.90</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">$</td> <td style="padding-bottom: 1pt; text-align: right">0.1621</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">25,598,850</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">$</td> <td style="padding-bottom: 1pt; text-align: right">0.1621</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">Balance, December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">177,528,800</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">4.18</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0869</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">127,127,050</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0944</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company calculated the fair value of each option grant on the date of grant using the Black-Scholes option pricing model that use the assumptions in the following table. Risk-free interest rate is based on the US Treasury yield curve in effect at the time of grant. The Company uses the simplified method to estimate the expected life because the options are considered as plain vanilla share-based payment awards. Expected volatilities are based on historical volatility of stock prices for a period equal to the options&#x2019; expected term. The dividend yield is zero as the Company has never declared or paid dividends on the ordinary shares or other securities and does not anticipate paying dividends in the foreseeable future.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock Options</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Employee Stock Purchase Plan</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2015</td> <td style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2014</td> <td style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2013</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2015</td> <td style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2014</td> <td style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Risk-free interest rate</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">1.18%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">1.50%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">1.49%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">1.76%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">0.68%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">1.75%</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">0.01%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">0.08%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">0.02%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">0.05%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">0.04%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">0.06%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 22%; font-size: 10pt; text-align: left">Expected life (years)</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 4%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 5%; font-size: 10pt; text-align: center">5</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 6%; font-size: 10pt; text-align: center">5</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 6%; font-size: 10pt; text-align: center">5</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 2%; font-size: 10pt; text-align: center">0.25</td> <td style="width: 8%; font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="width: 2%; font-size: 10pt; text-align: center">0.26</td> <td style="width: 1%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 2%; font-size: 10pt; text-align: center">0.25</td> <td style="width: 7%; font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="width: 3%; font-size: 10pt; text-align: center">0.26</td> <td style="width: 1%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 2%; font-size: 10pt; text-align: center">0.25</td> <td style="width: 7%; font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="width: 3%; font-size: 10pt; text-align: center">0.26</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Volatility</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">33%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">36%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">34%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">37%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">40%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">48%</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">35%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">48%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">30%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">45%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">24%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">40%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Dividend</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The weighted-average grant-date fair value of options granted during the years ended December 31, 2015, 2014, and 2013 was $0.0127, $0.0245, and $0.0263 respectively. The weighted-average fair value of options granted under the 2009 Purchase Plan during the years ended December 31, 2015, 2014, and 2013 was $0.008, $0.0104, and $0.0106, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Share Incentive Plan</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Board adopted the 2005 Share Incentive Plan (&#x201c;2005 SIP&#x201d;), which was effective on March 2, 2006, the date the Company completed the SEHK listing. The 2005 SIP provides for the grant of restricted shares, RSU, share appreciation rights and dividend equivalent rights (collectively referred to as &#x201c;Awards&#x201d;) up to 75,000,000 ordinary shares. As approved by the EGM held on May 30, 2009, the number of shares available for issue was increased from 75,000,000 to 125,000,000 shares. The references to Hong Kong and Hong Kong related rules and regulations were also removed along with the completion of the Company&#x2019;s delisting from the SEHK. As approved by the AGM held on June 22, 2012, an additional 62,500,000 ordinary shares were reserved for issuance under the 2005 SIP. Awards may be granted to employees, directors and consultants. The RSUs vest over a requisite service period of 4 years. In 2015, the Board adopted the 2015 Stock Incentive Plan, which was approved by the Shareholders in July 2015, and replaced the 2005 SIP after it expired on March 2, 2016.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">A summary of the status of the Company&#x2019;s RSUs as of December 31, 2015, and changes during the year ended December 31, 2015, is presented as follows:</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Number of<br /> Outstanding<br /> Awards</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted<br /> Average<br /> Grant-Date<br /> Fair Value</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%">Nonvested at January 1, 2015</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">46,823,850</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">0.0710</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Granted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">24,979,250</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0491</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Vested</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(15,728,550</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0792</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Forfeited and expired</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(5,466,200</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">$</td> <td style="padding-bottom: 1pt; text-align: right">0.0602</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Nonvested at December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">50,608,350</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0588</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As of December 31, 2015, there was $2,534,000 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans including stock options and RSUs. The cost is expected to be recognized over a weighted-average period of 2.31 years. The total fair value of RSUs vested during the years ended December 31, 2015, 2014, and 2013 was $1,246,000, $1,189,000, and $1,321,000, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Cash received from option exercise under all share-based payment arrangements for the years ended December 31, 2015, 2014, and 2013 was $211,000, $302,000, and $360,000, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Ordinary Shares Reserved</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As of December 31, 2015, ordinary shares reserved for future issuance were as follows:</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 85%; text-align: left">Outstanding stock options</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">177,528,800</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Outstanding RSUs</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">50,608,350</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Shares reserved for future stock option grants</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">38,764,950</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Shares reserved for Employee Stock Purchase Plan</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">5,501,800</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Shares reserved for Awards</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">36,056,850</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">308,460,750</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Shares issued for the exercise of stock options, Employee Stock Purchase Plan and shares vested under restricted stock units are from the treasury shares.</td> </tr> </table><br/> 50000000 40000000 20000000 0.01 0.10 0.90 0.90 P10Y 10685400 P10Y 25000000 15000000 16164150 185000000 0 150000000 75000000 0.04 722300 722300 100000000 100000000 175000000 50000000 P8Y P4Y 176806500 126404750 2000 13000 9000 0.00 0.0127 0.0245 0.0263 0.008 0.0104 0.0106 75000000 75000000 125000000 62500000 P4Y 2534000 P2Y113D 1246000 1189000 1321000 211000 302000 360000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">&nbsp;<br /> &nbsp;<br /> Number of<br /> Options Shares</td> <td style="font-weight: bold">&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted<br /> Average<br /> Exercise<br /> Price</td> <td style="font-weight: bold">&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted<br /> Average<br /> Remaining<br /> Contract Life</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">&nbsp;<br /> Aggregate<br /> Intrinsic<br /> Value</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%">Outstanding Options, January 1, 2015</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">228,666,600</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">0.1345</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Granted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">43,263,900</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0501</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Exercised</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(677,100</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0460</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Forfeited or expired</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(93,724,600</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">$</td> <td style="padding-bottom: 1pt; text-align: right">0.1938</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Outstanding Options, December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">177,528,800</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0869</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">4.18</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Vested and Expected to Vest Options at December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">175,617,560</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0831</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">4.16</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Exercisable Options at December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">127,127,050</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0944</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">3.21</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 228666600 0.1345 43263900 0.0501 677100 0.0460 93724600 0.1938 177528800 0.0869 P4Y65D 175617560 0.0831 P4Y58D 127127050 0.0944 P3Y76D <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center">&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Options Outstanding</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Options Exercisable</td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left"><br /> Range of Exercise Prices</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center"><br /> Number<br /> Outstanding</td> <td style="font-weight: bold">&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center"><br /> Weighted<br /> Average<br /> Exercise<br /> Price</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center"><br /> Number<br /> Exercisable<br /> and Vested</td> <td>&nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center"><br /> Weighted<br /> Average<br /> Exercise<br /> Price</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 35%">$0.0454 - $0.0506</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">46,740,200</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">3.57</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">0.0476</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 10%; text-align: right">32,034,900</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">0.0467</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>$0.0522 - $0.0750</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">40,027,700</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">5.61</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0663</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">24,111,300</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0653</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>$0.0776 - $0.0940</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">31,246,750</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6.16</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0826</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">12,323,500</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0863</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>$0.0948 - $0.1276</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">33,915,300</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3.25</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.1124</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">33,058,500</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.1125</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">$0.1320 - $0.2176</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">25,598,850</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: right">1.90</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">$</td> <td style="padding-bottom: 1pt; text-align: right">0.1621</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">25,598,850</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">$</td> <td style="padding-bottom: 1pt; text-align: right">0.1621</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">Balance, December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">177,528,800</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">4.18</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0869</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">127,127,050</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0944</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> </table> 46740200 P3Y208D 0.0476 32034900 0.0467 40027700 P5Y222D 0.0663 24111300 0.0653 31246750 P6Y58D 0.0826 12323500 0.0863 33915300 P3Y3M 0.1124 33058500 0.1125 25598850 P1Y328D 0.1621 25598850 0.1621 177528800 127127050 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock Options</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Employee Stock Purchase Plan</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2015</td> <td style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2014</td> <td style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2013</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2015</td> <td style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2014</td> <td style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">Risk-free interest rate</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">1.18%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">1.50%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">1.49%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">1.76%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">0.68%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">1.75%</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">0.01%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">0.08%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">0.02%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">0.05%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">0.04%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">0.06%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 22%; font-size: 10pt; text-align: left">Expected life (years)</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 4%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 5%; font-size: 10pt; text-align: center">5</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 6%; font-size: 10pt; text-align: center">5</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 6%; font-size: 10pt; text-align: center">5</td> <td style="width: 3%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 2%; font-size: 10pt; text-align: center">0.25</td> <td style="width: 8%; font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="width: 2%; font-size: 10pt; text-align: center">0.26</td> <td style="width: 1%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 2%; font-size: 10pt; text-align: center">0.25</td> <td style="width: 7%; font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="width: 3%; font-size: 10pt; text-align: center">0.26</td> <td style="width: 1%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 2%; font-size: 10pt; text-align: center">0.25</td> <td style="width: 7%; font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="width: 3%; font-size: 10pt; text-align: center">0.26</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Volatility</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">33%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">36%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">34%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">37%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">40%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">48%</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">35%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">48%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">30%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">45%</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">24%</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">-</font></td> <td style="font-size: 10pt; text-align: center">40%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Dividend</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> </tr> </table> 0.0118 0.0150 0.0149 0.0176 0.0068 0.0175 0.0001 0.0008 0.0002 0.0005 0.0004 0.0006 P5Y P5Y P5Y P3M P94D P3M P94D P3M P94D 0.33 0.36 0.34 0.37 0.40 0.48 0.35 0.48 0.30 0.45 0.24 0.40 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Number of<br /> Outstanding<br /> Awards</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Weighted<br /> Average<br /> Grant-Date<br /> Fair Value</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%">Nonvested at January 1, 2015</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">46,823,850</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">0.0710</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: 10pt">Granted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">24,979,250</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0491</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-indent: 10pt">Vested</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">(15,728,550</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">0.0792</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Forfeited and expired</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(5,466,200</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; text-align: left">$</td> <td style="padding-bottom: 1pt; text-align: right">0.0602</td> <td style="padding-bottom: 1pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Nonvested at December 31, 2015</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">50,608,350</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">$</td> <td style="padding-bottom: 2.25pt; text-align: right">0.0588</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> </table> 46823850 0.0710 24979250 0.0491 15728550 0.0792 5466200 0.0602 50608350 0.0588 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 85%; text-align: left">Outstanding stock options</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">177,528,800</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Outstanding RSUs</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">50,608,350</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Shares reserved for future stock option grants</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">38,764,950</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Shares reserved for Employee Stock Purchase Plan</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">5,501,800</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Shares reserved for Awards</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">36,056,850</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">308,460,750</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 177528800 50608350 38764950 5501800 36056850 308460750 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>16.</b></td> <td><b>EARNINGS (LOSS) PER SHARE</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of ordinary shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period, using the treasury stock method for options.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>A reconciliation of the numerator and denominator of basic and diluted earnings (loss) per share calculations was as follows:</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Net loss from continuing operations (in thousands)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(21,095</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(15,057</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(19,093</td> <td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Income loss from discontinued operations (in thousands)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(6</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Net loss (in thousands)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(21,095</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(15,057</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(19,099</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average shares outstanding (in thousands) &#x2013; basic</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,301,465</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,362,465</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,435,778</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Effect of dilutive securities:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Options and RSUs (in thousands)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Weighted average shares outstanding (in thousands) &#x2013; diluted</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,301,465</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,362,465</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,435,778</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Loss per share &#x2013; basic and diluted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Continuing operations</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(0.02</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(0.01</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(0.01</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Discontinued operations</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.02</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Certain outstanding options and RSUs were excluded from the computation of diluted EPS since their effect would have been anti-dilutive. The anti-dilutive stock options excluded and their associated exercise prices per share were 177,528,800 shares at $0.0454 to $0.2176 as of December 31, 2015, 228,666,600 shares at $0.0460 to $0.3462 as of December 31, 2014, and 247,157,450 shares at $0.0558 to $0.4792 as of December 31, 2013. The anti-dilutive RSUs excluded were 50,608,350 shares, 46,823,850 shares, and 36,215,100 shares as of December 31, 2015, 2014, and 2013, respectively.</td> </tr> </table><br/> 177528800 0.0454 0.2176 228666600 0.0460 0.3462 247157450 0.0558 0.4792 50608350 46823850 36215100 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Net loss from continuing operations (in thousands)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(21,095</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(15,057</td> <td style="width: 1%; text-align: left">)</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">(19,093</td> <td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Income loss from discontinued operations (in thousands)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(6</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Net loss (in thousands)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(21,095</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(15,057</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(19,099</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Weighted average shares outstanding (in thousands) &#x2013; basic</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,301,465</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,362,465</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,435,778</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Effect of dilutive securities:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Options and RSUs (in thousands)</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">Weighted average shares outstanding (in thousands) &#x2013; diluted</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,301,465</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,362,465</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: right">1,435,778</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Loss per share &#x2013; basic and diluted</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Continuing operations</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(0.02</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(0.01</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(0.01</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Discontinued operations</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.02</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(0.01</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table> 1301465000 1362465000 1435778000 1301465000 1362465000 1435778000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>17.</b></td> <td><b>COMMITMENTS </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td><b>Lease Commitments</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company leases office space and certain equipment under non-cancelable operating lease agreements that expire at various dates through December 2020. For the years ended December 31, 2015, 2014, and 2013, leasing costs charged to income in relation to these agreements were $2,106,000, $2,415,000, and $2,661,000, respectively. The Company&#x2019;s office lease provides for periodic rental increases based on the general inflation rate.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">As of December 31, 2015, future minimum lease payments under all non-cancelable operating lease agreements were as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Year</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Operating Leases</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 85%; text-align: left">2016</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,772</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2017</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">984</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2018</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">380</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2019</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">210</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">2020</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">72</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Total minimum lease payments</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">3,418</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Purchase obligations and commitments include payments due under various types of license, maintenance and support agreements with contractual terms from one to two years. As of December 31, 2015, those purchase commitments were as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Year</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 85%; text-align: left">2016</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">266</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">2017</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">97</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Total</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">363</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/> 2106000 2415000 2661000 P1Y P2Y <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt">Year</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Operating Leases</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" style="text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 85%; text-align: left">2016</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">1,772</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2017</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">984</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2018</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">380</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2019</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">210</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">2020</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">72</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.25pt">Total minimum lease payments</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">3,418</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 1772000 984000 380000 210000 72000 3418000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left">Year</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold">&nbsp;</td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 85%; text-align: left">2016</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">266</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">2017</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">97</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.25pt">Total</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">363</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 266000 97000 363000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>18.</b></td> <td><b>CONTINGENCIES </b></td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 17.85pt"><b>Legal Proceedings </b></p><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company is involved in several litigation matters relating to its intellectual property, as detailed below. While the Company cannot make any assurances regarding the eventual resolution of these matters, the Company does not believe at this time that the final outcomes will have a material adverse effect on its consolidated results of operations or financial condition.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify"><i>O₂Micro, Inc. v. Texas Instruments Japan Limited. </i>In November 2013, the Company filed a patent infringement suit against Texas Instruments Japan Limited (&#x201c;Texas Instrument&#x201d;) in the Civil Division of the Tokyo District Court. The complaint alleges, <i>inter alia</i>, that Texas Instruments&#x2019; charging products infringe on the Company&#x2019;s related Japanese patents. The matter is currently pending.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify"><i>O₂Micro (China) Co., Ltd. v. Legendsec Information Technology (Beijing) Inc., et al., Chengdu Intermediate Court, China. </i>The Company filed a trade secret infringement suit against Yunfeng Li, Chengdu Feitong Technology Co., Ltd. and Legendsec Information Technology (Beijing) Inc. (&#x201c;Legendsec&#x201d;) in Chengdu Intermediate Court on August 18, 2014, requesting the three defendants to stop the infringement actions and claim for compensatory damages. Three hearings have been held since October 2014. The matter is currently pending.</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: justify"><i>O₂Micro (China) Co., Ltd. v. Legendsec Information Technology (Beijing) Inc., Beijing Haidian District People's Court, China. </i>The Company filed a copyright infringement suit against Legendsec Information Technology (Beijing) Inc. in Beijing Haidian District People's Court on November 19, 2014, requesting the defendant to stop the infringement actions and claim for compensatory damages. The first hearing was held on March 16, 2015. The second hearing was held on April 22, 2015. The third hearing was held on May 19, 2015. The Court made a judgment to reject the Company&#x2019;s claim on July 3, 2015. The Company appealed to Beijing Intellectual Property Court on July 14, 2015. The first hearing of the second trial was held on December 23, 2015. The Court made a final judgment to reject the Company&#x2019;s appeal and sustain the original judgment on February 26, 2016. The matter is now closed.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: justify"><i>O₂Micro (China) Co., Ltd. v. Nanjing AnalogChipTech Semiconductor Co., Ltd.,et al., Nanjing Intermediate Court, China. </i>The Company filed a patent infringement suit against Nanjing AnalogChipTech Semiconductor Co., Ltd., and Nantong Minghui Power Tools Co., Ltd. in Nanjing Intermediate Court on October 29, 2015, requesting two defendants to stop the infringement action, destroy the infringing products and claim for compensatory damages. The first hearing was held on January 18, 2016. All parties reached and signed a settlement agreement on January 18, 2016 and this case is now closed.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: justify"><i>O₂Micro (China) Co., Ltd. v. Nanjing AnalogChipTech Semiconductor Co, Ltd.,et al., Nanjing Intermediate Court, China. </i>The Company filed a trade secret infringement suit against Xiaohu Tang and Nanjing AnalogChipTech Semiconductor Co., Ltd. in Nanjing Intermediate Court on October 29, 2015, requesting two defendants to stop the infringement action, destroy the infringing products and claim for compensatory damages. The first hearing was held on January 11, 2016. All parties reached and signed a settlement agreement on January 18, 2016 and this case is now closed.</p><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company received $0, $75,000, and $0 litigation income in relation to patent litigation cases in the United States for the years ended December 31, 2015, 2014, and 2013, respectively.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company, as a normal course of business, is a party to litigation matters, legal proceedings, and claims. These actions may be in various jurisdictions and may involve patent protection and/or infringement. While the results of such litigations and claims cannot be predicted with certainty, the final outcome of such matters is not expected to have a material adverse effect on its consolidated financial position or results of operations. No assurance can be given, however, that these matters will be resolved without the Company becoming obligated to make payments or to pay other costs to the opposing parties, with the potential for having an adverse effect on the Company&#x2019;s financial position or its results of operations. No provision for any litigation has been provided as of December 31, 2015 and 2014.</td> </tr> </table><br/> 3 2 2 0 75000 0 0 0 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>19.</b></td> <td><b>FINANCIAL INSTRUMENTS</b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td>Information on the Company&#x2019;s financial instruments was as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Carrying<br /> Amount</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Carrying<br /> Amount</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 40%; text-align: left; text-indent: 10pt">Cash and cash equivalents</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">41,199</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">41,199</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">41,069</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">41,069</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Restricted cash</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">31</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">31</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">164</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">164</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Short-term investments</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">11,233</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">11,233</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">21,481</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">21,481</td> <td style="text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The carrying amounts of cash and cash equivalents, restricted cash and short-term investments reported in the consolidated balance sheets approximate their estimated fair values.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Long-term investments are in privately-held companies where there is no readily determinable market value and are recorded using the cost method. Since they entail an unreasonable high cost to obtain verifiable fair values, fair value is not presented. The Company periodically evaluates these investments for impairment. If it is determined that an other-than-temporary decline has occurred in the carrying value, an impairment loss is recorded in the period of decline in value.</td> </tr> </table><br/> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="15" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="7" style="font-weight: bold; text-align: center">2014</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Carrying<br /> Amount</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Carrying<br /> Amount</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">Fair<br /> Value</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Assets</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 40%; text-align: left; text-indent: 10pt">Cash and cash equivalents</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">41,199</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">41,199</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">41,069</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">41,069</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 10pt">Restricted cash</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">31</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">31</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">164</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">164</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Short-term investments</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">11,233</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">11,233</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">21,481</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">21,481</td> <td style="text-align: left">&nbsp;</td> </tr> </table> 41199000 41199000 41069000 41069000 31000 31000 164000 164000 11233000 21481000 <table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><b>20.</b></td> <td><b>SEGMENT INFORMATION </b></td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">In September 2008, the Board approved a plan to transfer Network Security business to O₂Security along with its Series A preference shares financing. In anticipation of the business transfer, management identified two reportable segments, including Integrated Circuit Group and Network Security Group. The Integrated Circuit Group&#x2019;s core products and principal source of revenue are its power management semiconductors. These semiconductor products are produced with digital, analog, and mixed signal integrated circuit (&#x201c;IC&#x201d;) manufacturing processes. The Network Security Group&#x2019;s system security solution products include support for VPN and firewalls, which provide security functions between computer systems and networks, including the transmission of data across the Internet. In November 2010, the Company determined to discontinue the Network Security Group. Please see discussions in note 3.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">The Company does not identify or allocate assets by operating segment, nor does the chief operating decision maker (&#x201c;CODM&#x201d;) evaluate operating segments using discrete asset information. The Company does not have inter-segment revenue, and, accordingly, there is none to be reported. The Company does not allocate gains and losses from interest and other income, or income taxes to operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Operating segment net sales and operating loss, including the discontinued Network Security Group, were as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net sales</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left; text-indent: 10pt">Integrated Circuit Group</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">54,841</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">63,591</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">73,785</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Network Security Group</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">54,841</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">63,591</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">73,785</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Loss from operations</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Integrated Circuit Group</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(14,429</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(16,823</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(20,541</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Network Security Group</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(6</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(14,429</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(16,823</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(20,547</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Net sales to unaffiliated customers by geographic region are based on the customer&#x2019;s ship-to location and were as follows:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">China</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">45,854</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">55,133</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">65,602</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Japan</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3,759</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,490</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,677</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Taiwan</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2,274</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2,022</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,892</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Singapore</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,398</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,341</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">523</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Korea</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">879</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">288</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">500</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">677</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">317</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">591</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">54,841</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">63,591</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">73,785</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">For the year ended December 31, 2015, only one customer accounted for 10% or more of net sales. For the years ended December 31, 2014 and 2013, two customers accounted for 10% or more of net sales. Sales to these major customers were generated from the Integrated Circuit Group. The percentage of net sales to these customers was as follows:</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; font-style: italic; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Customer A</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">11</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">12</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">15</td> <td style="width: 1%; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer B</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">8</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">10</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">7</td> <td style="text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Customer C</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">10</td> <td style="text-align: left">%</td> </tr> </table><br/><table cellpadding="0" cellspacing="0" width="100%" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 17.85pt"></td> <td style="text-align: justify">Long-lived assets consisted of property and equipment and were as follows based on the physical location of the assets at the end of each year:</td> </tr> </table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 17.85pt; text-align: right; text-indent: -17.85pt"><b>(In Thousands)</b></p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Taiwan</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">5,813</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">8,689</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">10,576</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>China</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3,997</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6,363</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">7,872</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>U.S.A.</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,162</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,188</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,388</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">39</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">123</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">203</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">14,011</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">19,363</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">23,039</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table><br/> 2 1 2 2 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net sales</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 55%; text-align: left; text-indent: 10pt">Integrated Circuit Group</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">54,841</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">63,591</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">73,785</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Network Security Group</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">54,841</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">63,591</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">73,785</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Loss from operations</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 10pt">Integrated Circuit Group</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(14,429</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(16,823</td> <td style="text-align: left">)</td> <td>&nbsp;</td> <td style="text-align: left">$</td> <td style="text-align: right">(20,541</td> <td style="text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 10pt">Network Security Group</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">(6</td> <td style="border-bottom: Black 1pt solid; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(14,429</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(16,823</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">(20,547</td> <td style="border-bottom: Black 2.25pt double; text-align: left">)</td> </tr> </table> 54841000 63591000 73785000 -14429000 -16823000 -20541000 -6000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">China</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">45,854</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">55,133</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">65,602</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Japan</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3,759</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,490</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,677</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Taiwan</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2,274</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">2,022</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,892</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>Singapore</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,398</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1,341</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">523</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Korea</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">879</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">288</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">500</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">677</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">317</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">591</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">54,841</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">63,591</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">73,785</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 45854000 55133000 65602000 3759000 4490000 4677000 2274000 2022000 1892000 1398000 1341000 523000 879000 288000 500000 677000 317000 591000 54841000 63591000 73785000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; font-style: italic; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%; text-align: left">Customer A</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">11</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">12</td> <td style="width: 1%; text-align: left">%</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 12%; text-align: right">15</td> <td style="width: 1%; text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Customer B</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">8</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">10</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">7</td> <td style="text-align: left">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Customer C</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">1</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4</td> <td style="text-align: left">%</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">10</td> <td style="text-align: left">%</td> </tr> </table> 0.11 0.12 0.15 0.08 0.10 0.07 0.01 0.04 0.10 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="11" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2015</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2014</td> <td style="font-weight: bold">&nbsp;</td> <td colspan="3" style="font-weight: bold; text-align: center">2013</td> </tr> <tr style="vertical-align: bottom"> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> <td>&nbsp;</td> <td colspan="3">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 55%">Taiwan</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">5,813</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">8,689</td> <td style="width: 1%; text-align: left">&nbsp;</td> <td style="width: 1%">&nbsp;</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">10,576</td> <td style="width: 1%; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td>China</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">3,997</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">6,363</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">7,872</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>U.S.A.</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,162</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,188</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">4,388</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Other</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">39</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">123</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; text-align: right">203</td> <td style="border-bottom: Black 1pt solid; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">14,011</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">19,363</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; text-align: right">23,039</td> <td style="border-bottom: Black 2.25pt double; text-align: left">&nbsp;</td> </tr> </table> 5813000 8689000 10576000 3997000 6363000 7872000 4162000 4188000 4388000 39000 123000 203000 23039000