SILICON IMAGE INC

[1]	Includes restructuring expense
[2]	Includes stock-based compensation expense
[3]	Includes amortization of acquisition-related intangible assets
[4]	Includes impairment of intangible assets

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income (loss)	$ 42,055us-gaap_ProfitLoss	$ 11,490us-gaap_ProfitLoss	$ (11,192)us-gaap_ProfitLoss
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation	6,477us-gaap_Depreciation	6,270us-gaap_Depreciation	6,107us-gaap_Depreciation
Stock-based compensation expense	10,006us-gaap_ShareBasedCompensation	10,515us-gaap_ShareBasedCompensation	9,204us-gaap_ShareBasedCompensation
Amortization of investment premium	876	1,048	1,995
Tax benefit from employee stock-based compensation plans	130	354	498
Other than temporary impairment of a privately-held company investment	0	1,500	7,467
Impairment of intangible asset	943	175	0
Amortization of intangible assets	4,176us-gaap_AmortizationOfIntangibleAssets	2,949us-gaap_AmortizationOfIntangibleAssets	1,331us-gaap_AmortizationOfIntangibleAssets
Non-operating proceeds from legal settlement	0us-gaap_OtherNonoperatingGainsLosses	(1,275)us-gaap_OtherNonoperatingGainsLosses	0us-gaap_OtherNonoperatingGainsLosses
Gain from business acquisition	(361)	0	0
Deferred income taxes	(31,166)us-gaap_DeferredIncomeTaxExpenseBenefit	426us-gaap_DeferredIncomeTaxExpenseBenefit	429us-gaap_DeferredIncomeTaxExpenseBenefit
Excess tax benefits from employee stock-based transactions	(130)	(354)	(498)
Realized gain on sale of short-term investments	0us-gaap_GainLossOnSaleOfInvestments	(144)us-gaap_GainLossOnSaleOfInvestments	(139)us-gaap_GainLossOnSaleOfInvestments
Equity in net loss of an unconsolidated affiliate	150	489	1,803
Others	270us-gaap_OtherNoncashExpense	296us-gaap_OtherNoncashExpense	340us-gaap_OtherNoncashExpense
Changes in assets and liabilities:
Accounts receivable	11,248	2,818	(10,503)
Inventories	(5,419)us-gaap_IncreaseDecreaseInInventories	(459)us-gaap_IncreaseDecreaseInInventories	(1,206)us-gaap_IncreaseDecreaseInInventories
Prepaid expenses and other current assets	(1,791)	94	1,124
Accounts payable	895	2,208	(529)
Accrued and other liabilities	4,645	941	(3,581)
Deferred margin on sales to distributors	(971)	557	2,531
Deferred license revenue	(1,468)	(706)	(505)
Cash provided by operating activities	40,565	39,192	4,676
Cash flows from investing activities:
Proceeds from sales of short-term investments	27,192	62,699	104,765
Purchases of short-term investments	(20,263)	(41,053)	(60,612)
Cash used in business acquisitions, net of cash acquired	(13,464)	0	0
Purchases of property and equipment	(7,739)	(5,761)	(8,885)
Proceeds from sale of a privately held company investment	7,571	0	0
Proceeds from legal settlement	0us-gaap_ProceedsFromLegalSettlements	1,275us-gaap_ProceedsFromLegalSettlements	0us-gaap_ProceedsFromLegalSettlements
Investment in an unconsolidated affiliate	0	0	(2,750)
Investment in privately held companies	0	(1,500)	(6,000)
Cash paid for assets purchased from privately held company	0	(300)	(1,200)
Purchase of intellectual properties	(915)	(2,031)	(1,242)
Proceeds from sale of property and equipment	0	103	0
Cash provided by (used in) investing activities	(7,618)	13,432	24,076
Cash flows from financing activities:
Proceeds from employee stock programs	6,467	5,545	5,631
Excess tax benefits from employee stock-based transactions	130	354	498
Payment to acquire treasury shares	(10,832)	(3,005)	(39,684)
Repurchase of restricted stock units for income tax withholding	(1,645)	(1,981)	(2,179)
Proceeds from sale of redeemable noncontrolling interest	7,000	0	0
Cash paid to settle contingent consideration liabilities	(27)	(81)	(1,054)
Cash provided by (used in) financing activities	1,093	832	(36,788)
Effect of exchange rate changes on cash and cash equivalents	(41)	(305)	(20)
Net increase (decrease) in cash and cash equivalents	33,999	53,151	(8,056)
Cash and cash equivalents - beginning of year	82,220	29,069	37,125
Cash and cash equivalents - end of year	116,219	82,220	29,069
Supplemental cash flow information:
Cash payment for income taxes	(7,420)us-gaap_IncomeTaxesPaidNet	(6,476)us-gaap_IncomeTaxesPaidNet	(6,389)us-gaap_IncomeTaxesPaidNet
Restricted stock units vested	4,992us-gaap_StockIssued1	5,617us-gaap_StockIssued1	6,276us-gaap_StockIssued1
Property and equipment and other assets purchased but not paid for	348	668	2,380
Unrealized net gain (loss) on short-term investments	$ (36)us-gaap_UnrealizedGainLossOnInvestments	$ (223)us-gaap_UnrealizedGainLossOnInvestments	$ 40us-gaap_UnrealizedGainLossOnInvestments

Consolidated Balance Sheet Components

12 Months Ended

Dec. 31, 2014

Consolidated Balance Sheet Components [Abstract]

Consolidated Balance Sheet Components

CONSOLIDATED BALANCE SHEET COMPONENTS

Cash, cash equivalents and short-term investments consisted of the following as of December 31, 2014 (in thousands):



	Amortized Cost		Gross Unrealized Gain (Loss)			Estimated Fair Value
Classified as current assets:
Cash	$	89,365	$	—		$	89,365
Cash equivalents:
Money market funds	26,854		—			26,854
Total cash and cash equivalents	$	116,219	$	—		$	116,219
Short-term investments:
Certificate of deposits	$	11,229	$	—		$	11,229
Municipal securities	18,272		18			18,290
Corporate securities	7,560		(1		)	7,559
United States government agencies	11,042		(4		)	11,038
Total short-term investments	$	48,103	$	13		$	48,116
Total cash and cash equivalents and short-term investments	$	164,322	$	13		$	164,335

For investments in securities classified as available-for-sale, market value and the amortized cost by date of maturity as of December 31, 2014 was as follows.



	Amortized Cost		Market Value
	(In thousands)
Contractual maturity
Less than 1 year	$	36,828	$	36,843
1-3 years	11,275		11,273
Total	$	48,103	$	48,116

Cash, cash equivalents and short-term investments consisted of the following as of December 31, 2013 (in thousands):



	Amortized Cost		Gross Unrealized Gain			Estimated Fair Value
Classified as current assets:
Cash	$	49,028	$	—		$	49,028
Cash equivalents:
Money market funds	33,192		—			33,192
Total cash and cash equivalents	$	82,220	$	—		$	82,220
Short-term investments:
Certificate of deposits	$	10,874	$	—		$	10,874
Municipal securities	31,032		37			31,069
Corporate securities	10,297		16			10,313
United States government agencies	3,748		(1		)	3,747
Total short-term investments	$	55,951	$	52		$	56,003
Total cash and cash equivalents and short-term investments	$	138,171	$	52		$	138,223

For investments in securities classified as available-for-sale, market value and the amortized cost by date of maturity as of December 31, 2013 was as follows.



	Amortized Cost		Market Value
	(In thousands)
Contractual maturity
Less than 1 year	$	35,390	$	35,410
1-3 years	20,561		20,593
Total	$	55,951	$	56,003

Components of inventory, prepaid expenses and other current assets and property and equipment consisted of the following:



	December 31,
	2014		2013
	(In thousands)
Inventories:
Raw materials	$	7,005	$	4,862
Work in process	2,290		2,285
Finished goods	7,851		4,580
	$	17,146	$	11,727



Prepaid expense and other current assets:
Prepaid software maintenance	$	3,125	$	3,041
Other prepaid expenses	1,938		1,939
Other current assets	1,849		2,753
	$	6,912	$	7,733



Property and equipment:
Computers and software	$	18,063		$	20,425
Equipment	34,728			33,942
Furniture and fixtures	2,722			2,656
	55,513			57,023
Less: accumulated depreciation	(40,218		)	(42,347		)
Total property and equipment, net	$	15,295		$	14,676



Other assets:
Investment in privately-held companies (Note 5)	$	—	$	7,011
Others	1,644		1,487
	$	1,644	$	8,498

The components of accrued liabilities and other long-term liabilities were as follows:



	December 31,
	2014		2013
	(In thousands)
Accrued and other current liabilities:
Accrued payroll and related expenses	$	6,373	$	8,923
Accrued royalties	9,118		3,587
Accrued restructuring (Note 8)	3,442		1,591
Accrued payables	3,757		4,771
Others	2,783		1,750
	$	25,473	$	20,622



Other long-term liabilities:
Non-current liability for uncertain tax positions	$	12,095	$	14,145
Others	1,810		2,377
	$	13,905	$	16,522