COVER PAGE Document
COVER PAGE Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 26, 2020 | Jun. 30, 2018 | |
COVER PAGE [Abstract] | |||
Entity Central Index Key | 0001033905 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
City Area Code | (512) | ||
Entity Address, Address Line One | 12212 Technology Blvd., | ||
Entity Incorporation, State or Country Code | DE | ||
Document Type | 10-K | ||
Entity File Number | 000-30109 | ||
Entity Tax Identification Number | 74-2747608 | ||
Entity Address, City or Town | Austin, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78727 | ||
Local Phone Number | 219-8020 | ||
Trading Symbol | LMNX | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Registrant Name | LUMINEX CORPORATION | ||
Entity Common Stock, Shares Outstanding | 45,168,166 | ||
Amendment Flag | false | ||
Entity Public Float | $ 848,754,179 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 59,173 | $ 76,441 |
Accounts Receivable, Net, Current | 55,815 | 53,396 |
Inventory, Net | 77,084 | 63,250 |
Other | 10,398 | 9,657 |
Total current assets | 202,470 | 202,744 |
Property, Plant and Equipment, Net | 65,515 | 66,288 |
Intangible Assets, Net (Excluding Goodwill) | 90,336 | 105,148 |
Goodwill | 118,145 | 118,127 |
Operating Lease, Right-of-Use Asset | 20,439 | 0 |
Deferred Income Tax Assets, Net | 27,702 | 21,470 |
Other Assets, Noncurrent | 19,122 | 11,398 |
Total assets | 543,729 | 525,175 |
Current liabilities: | ||
Accounts payable | 17,983 | 14,504 |
Accrued Liabilities, Current | 31,872 | 26,772 |
Short-term unearned revenue | 8,214 | 10,099 |
Total current liabilities | 58,069 | 51,375 |
Long-term unearned revenue | 1,633 | 1,079 |
Operating Lease, Liability, Noncurrent | 17,182 | 0 |
Other long-term liabilities | 1,985 | 5,065 |
Total liabilities | 78,869 | 57,519 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common Stock, Value, Outstanding | 44 | 44 |
Preferred Stock, Value, Outstanding | 0 | 0 |
Additional Paid in Capital | 380,304 | 365,349 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,380) | (1,127) |
Retained earnings | 85,892 | 103,390 |
Stockholders' Equity Attributable to Parent | 464,860 | 467,656 |
Liabilities and Equity | $ 543,729 | $ 525,175 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 44,325,369 | 43,899,210 |
Common Stock, Shares, Outstanding | 44,325,369 | 43,899,210 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Accounts receivable, allowance for doubtful accounts | $ 1,140 | $ 843 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 99,849 | $ 87,773 |
INCOME STATEMENTS
INCOME STATEMENTS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||||||||
Revenues | $ 90,501 | $ 78,673 | $ 83,056 | $ 82,408 | $ 81,133 | $ 72,445 | $ 79,578 | $ 82,662 | $ 334,638 | $ 315,818 | $ 306,571 |
Cost of Goods and Services Sold | 40,636 | 36,833 | 37,829 | 36,601 | 32,792 | 28,189 | 30,272 | 29,074 | 151,899 | 120,327 | 107,525 |
Gross margin | 49,865 | 41,840 | 45,227 | 45,807 | 48,341 | 44,256 | 49,306 | 53,588 | 182,739 | 195,491 | 199,046 |
Research and development | 56,228 | 47,164 | 45,717 | ||||||||
Selling, General and Administrative Expense | 127,183 | 111,816 | 107,322 | ||||||||
Amortization of Intangible Assets | 11,407 | 8,665 | 8,854 | ||||||||
Operating Expenses | 46,882 | 47,562 | 50,983 | 49,391 | 47,373 | 40,502 | 41,448 | 38,322 | 194,818 | 167,645 | 161,893 |
Operating income | 2,983 | (5,722) | (5,756) | (3,584) | 968 | 3,754 | 7,858 | 15,266 | (12,079) | 27,846 | 37,153 |
Other income, net | 3,100 | 465 | (4) | ||||||||
Income (Loss) from Equity Method Investments | (523) | 0 | 0 | ||||||||
Income (Loss) Attributable to Parent, before Tax | (9,502) | 28,311 | 37,149 | ||||||||
Provision for income taxes | 5,664 | (9,803) | (7,726) | ||||||||
Net Income (Loss) Attributable to Parent | $ 3,383 | $ (5,250) | $ (4,931) | $ 2,960 | $ (2,295) | $ 1,737 | $ 5,669 | $ 13,397 | (3,838) | 18,508 | 29,423 |
Net Income (Loss) Available to Common Stockholders, Basic | (3,773) | 18,196 | 28,894 | ||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (3,775) | $ 18,197 | $ 28,894 | ||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share, Basic | $ 0.08 | $ (0.12) | $ (0.11) | $ 0.07 | $ (0.05) | $ 0.04 | $ 0.13 | $ 0.30 | $ (0.09) | $ 0.42 | $ 0.67 |
Earnings Per Share, Diluted | 0.07 | (0.12) | (0.11) | 0.07 | (0.05) | 0.04 | 0.13 | 0.30 | $ (0.09) | $ 0.41 | $ 0.67 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 44,148 | 43,727 | 43,173 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 44,148 | 44,291 | 43,300 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.09 | $ 0.09 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.30 | $ 0.24 | $ 0.24 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (253) | $ (502) | $ 1,067 | ||||||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (253) | (502) | 1,067 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (4,091) | $ 18,006 | $ 30,490 |
INCOME STATEMENTS INCOME STATEM
INCOME STATEMENTS INCOME STATEMENTS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||||||||||
Operating Expenses | $ 46,882 | $ 47,562 | $ 50,983 | $ 49,391 | $ 47,373 | $ 40,502 | $ 41,448 | $ 38,322 | $ 194,818 | $ 167,645 | $ 161,893 |
Operating Income (Loss) | $ 2,983 | $ (5,722) | $ (5,756) | $ (3,584) | $ 968 | $ 3,754 | $ 7,858 | $ 15,266 | $ (12,079) | $ 27,846 | $ 37,153 |
CASH FLOWS STATEMENTS
CASH FLOWS STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ (3,838) | $ 18,508 | $ 29,423 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Depreciation, Depletion and Amortization | 28,529 | 23,674 | 22,641 |
Stock-based compensation expense | 13,198 | 12,226 | 12,478 |
Increase (Decrease) in Deferred Income Taxes | (7,444) | 8,159 | 6,383 |
Gain (Loss) on Disposition of Property Plant Equipment | 641 | 730 | 964 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | (2,719) | 0 | 0 |
Other Operating Activities, Cash Flow Statement | (329) | (1,369) | 1,531 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,440) | (1,569) | (8,265) |
Inventories | (13,559) | (6,827) | (8,668) |
Operating Assets | 4,789 | (3,319) | (83) |
Operating Liabilities | (5,630) | 103 | (2,657) |
Accounts payable | 3,370 | 4 | 4,469 |
Unearned revenue | (1,031) | 579 | (785) |
Net cash from operations | 13,537 | 50,899 | 57,431 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Common stock issued | 3,750 | 4,570 | 4,305 |
Payments Related to Tax Withholding for Share-based Compensation | (2,095) | (2,312) | (2,350) |
Common stock cash dividends paid | (12,153) | (10,654) | (7,930) |
Net cash used in financing | (10,498) | (8,396) | (5,975) |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Additions to property and equipment | (16,249) | (21,292) | (14,635) |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (65,381) | 0 |
Payments for (Proceeds from) Previous Acquisition | 1,916 | 0 | 0 |
Payments to Acquire Notes Receivable | 0 | (1,000) | (1,400) |
Payments to Acquire Equity Method Investments | 6,980 | 0 | 0 |
Proceeds from (Payments to) Noncontrolling Interests | 734 | (1,782) | (1,000) |
Proceeds from Sale of Productive Assets | 0 | 2 | 62 |
Payments to Acquire Intangible Assets | (40) | (4,000) | (140) |
Net cash used in investing | (20,619) | (93,453) | (17,113) |
Effect of foreign exchange rates on cash and cash equivalents | 312 | 279 | (683) |
Net change in cash and cash equivalents | (17,268) | (50,671) | 33,660 |
Cash and cash equivalents, end of period | $ 59,173 | $ 76,441 | $ 127,112 |
STOCKHOLDERS' EQUITY STATEMENTS
STOCKHOLDERS' EQUITY STATEMENTS - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated other comprehensive Income (loss) | Retained earnings |
Stockholders' Equity Attributable to Parent | $ 403,679 | $ 42 | $ 336,431 | $ (1,692) | $ 68,898 |
Common Stock, Shares, Outstanding | 42,802,480 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 2,684 | $ 0 | 2,684 | 0 | 0 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 345,978 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (2,349) | $ 1 | (2,350) | 0 | 0 |
Stock-based compensation expense | $ 12,409 | $ 0 | 12,409 | 0 | 0 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 434,400 | 92,456 | |||
ESPP | $ 1,591 | $ 0 | 1,591 | 0 | 0 |
Net Income (Loss) Attributable to Parent | 29,423 | 0 | 0 | 0 | 29,423 |
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | 0 | 0 | |||
Other, net | 0 | $ 0 | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 163,579 | ||||
Stockholders' Equity Attributable to Parent | 437,907 | $ 43 | 350,834 | (625) | 87,655 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 1,067 | 0 | 0 | 1,067 | 0 |
Common Stock, Shares, Outstanding | 43,404,493 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 2,814 | $ 0 | 2,814 | 0 | 0 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 253,152 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (2,311) | $ 1 | (2,312) | 0 | 0 |
Stock-based compensation expense | $ 12,187 | $ 0 | 12,187 | 0 | 0 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 518,111 | 83,811 | |||
ESPP | $ 1,740 | $ 0 | 1,740 | 0 | 0 |
Net Income (Loss) Attributable to Parent | 18,508 | 0 | 0 | 0 | 18,508 |
Common stock cash dividends | (10,710) | $ 0 | 86 | 0 | (10,796) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 157,754 | ||||
Stockholders' Equity Attributable to Parent | 467,656 | $ 44 | 365,349 | (1,127) | 103,390 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (502) | 0 | 0 | (502) | 0 |
Common Stock, Shares, Outstanding | 43,899,210 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 1,698 | $ 0 | 1,698 | 0 | 0 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 217,620 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (2,095) | $ 0 | (2,095) | 0 | 0 |
Stock-based compensation expense | $ 13,198 | $ 0 | 13,198 | 0 | 0 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 631,553 | 113,442 | |||
ESPP | $ 2,030 | $ 0 | 2,030 | 0 | 0 |
Net Income (Loss) Attributable to Parent | (3,838) | 0 | 0 | 0 | (3,838) |
Common stock cash dividends | (13,536) | 0 | 124 | 0 | (13,660) |
Cumulative effect of accounting changes | 0 | $ 0 | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 95,097 | ||||
Stockholders' Equity Attributable to Parent | 464,860 | $ 44 | 380,304 | (1,380) | 85,892 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (253) | $ 0 | $ 0 | $ (253) | $ 0 |
Common Stock, Shares, Outstanding | 44,325,369 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 2 — BUSINESS COMBINATIONS On December 31, 2018, the Company completed its acquisition of EMD Millipore Corporation’s flow cytometry portfolio for $75 million , consisting of approximately $69.9 million paid under a Share and Asset Purchase Agreement (the Purchase Agreement) and approximately $5.1 million in committed inventory purchases, both of which were subject to adjustment. Following a purchase price reconciliation in the quarter ended March 31, 2019 , the purchase price was reduced by $1.9 million . This adjustment resulted in a revised amount of $68.0 million paid under the Purchase Agreement. The committed inventory purchases were completed in the third quarter of 2019. The Company financed the acquisition with cash on hand. Luminex acquired 100% of the shares and equity of Amnis Corporation, a Washington corporation (Amnis), a wholly owned subsidiary of EMD Millipore Corporation, a Massachusetts corporation (itself an affiliate of Merck KgaA), and certain other assets owned by other affiliates of Merck KgaA (MilliporeSigma). The acquisition expands Luminex’s existing offering of flow-based detection systems, which is centered around its innovative xMAP ® multiplexing technology, with approximately 17,000 xMAP systems sold worldwide, some of which may be retired or otherwise not in use. MilliporeSigma’s flow cytometry portfolio includes Amnis, a family of imaging flow cytometry products for cell-based analysis, as well as their Guava and Muse portfolio of products, which are economical systems based on microcapillary technologies. The purchase price was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. A portion of the goodwill is deductible for tax purposes. The Company recorded approximately $2.7 million of acquisition-related costs during fiscal 2018. The impact of the acquisition on our liquidity is more fully described under “Liquidity and Capital Resources.” The following table summarizes the estimated fair values of assets acquired and liabilities assumed in connection with the acquisition at December 31, 2018 and adjusted and finalized as of September 30, 2019 (in thousands): Net tangible assets assumed as of December 31, 2018 $ 8,922 Intangible assets subject to amortization 30,094 Deferred tax liabilities (3,702 ) Goodwill 32,664 Total purchase price $ 67,978 The Company finalized the purchase price allocation for the acquisition in the quarter ended September 30, 2019 . If information later becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be recognized in the Consolidated Statements of Comprehensive Income. Such adjustments have been included in the purchase price allocations retrospectively through revisions to the net tangible assets assumed, fair values of the intangible assets, deferred tax assets and liabilities and resulting goodwill recorded. The excess of the purchase price over the fair value of the tangible net assets, liabilities and intangible assets acquired was recorded to goodwill. |
ACCOUNTS RECEIVABLE (Notes)
ACCOUNTS RECEIVABLE (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4 — ACCOUNTS RECEIVABLE AND RESERVES The Company records an allowance for doubtful accounts based upon a specific review of all outstanding invoices, known collection issues and historical experience. The Company regularly evaluates the collectability of its trade accounts receivables and performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and its assessment of the customer’s current creditworthiness. These estimates are based on specific facts and circumstances of particular orders, analysis of credit memo data and other known factors. Accounts receivable consisted of the following at December 31 (in thousands): 2019 2018 Accounts receivable $ 56,956 $ 54,239 Less: Allowance for doubtful accounts (1,141 ) (843 ) $ 55,815 $ 53,396 The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Balance at December 31, 2016 $ 419 Net increases charged to costs and expenses 1,312 Write-offs of uncollectible accounts (386 ) Balance at December 31, 2017 $ 1,345 Net increases charged to costs and expenses (437 ) Write-offs of uncollectible accounts (65 ) Balance at December 31, 2018 843 Net recoveries charged to costs and expenses 400 Write-offs of uncollectible accounts (102 ) Balance at December 31, 2019 1,141 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5 — INVENTORIES, NET Inventories consisted of the following at December 31 (in thousands): 2019 2018 Parts and supplies $ 45,459 $ 39,873 Work-in-progress 15,532 11,847 Finished goods 16,093 11,530 $ 77,084 $ 63,250 The Company has non-cancellable purchase commitments with certain of its component suppliers in the amount of approximately $36.7 million at December 31, 2019 . Should production requirements fall below the level of the Company’s commitments, the Company could be required to take delivery of inventory for which it has no immediate need or incur an increased cost per unit going forward. |
FAIR VALUE (Notes)
FAIR VALUE (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 6 — FAIR VALUE MEASUREMENT ASC 820 “Fair Value Measurement” (ASC 820) defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on the following three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. There were no transfers between Level 1, Level 2 or Level 3 measurements for the year ended December 31, 2019 . The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 (in thousands): Fair Value Measurements as of December 31, 2019 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 707 $ — $ — $ 707 Minority interest investments - short-term $ — $ — $ 22 $ 22 Equity investment $ — $ — $ 11,501 $ 11,501 Fair Value Measurements as of December 31, 2018 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 704 $ — $ — $ 704 Minority interest investments - long-term $ — $ — $ 2,782 $ 2,782 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 7 — PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31 (in thousands): 2019 2018 Laboratory equipment $ 60,486 $ 58,330 Leasehold improvements 43,471 39,289 Computer equipment 3,916 3,322 Purchased software 22,621 22,141 Furniture and fixtures 5,924 5,874 Assets on loan/rental 28,946 24,259 Capital lease equipment — 846 165,364 154,061 Less: Accumulated depreciation (99,849 ) (87,773 ) $ 65,515 $ 66,288 Depreciation expense was $16.5 million and $14.4 million for the years ended December 31, 2019 and 2018 , respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure [Text Block] | NOTE 8 — GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill during the period are as follows (in thousands): December 31, 2019 December 31, 2018 Balance at beginning of period $ 118,127 $ 85,481 Flow cytometry acquisition $ 18 $ 32,646 Balance at end of period $ 118,145 $ 118,127 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | A portion of the Company’s goodwill is not expected to be deductible for tax purposes. The Company’s intangible assets are reflected in the table below (in thousands, except weighted average lives): Finite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2018 Balance as of December 31, 2017 $ 81,385 $ 19,097 $ 5,664 $ 12,982 $ 119,128 Flow cytometry acquisition 17,084 4,722 4,991 6,703 33,500 Asset acquisition — — — 4,328 4,328 Balance as of December 31, 2018 98,469 23,819 10,655 24,013 156,956 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2017 (34,414 ) (7,037 ) (1,692 ) — (43,143 ) Amortization expense (6,087 ) (1,999 ) (579 ) — (8,665 ) Accumulated amortization balance as of December 31, 2018 (40,501 ) (9,036 ) (2,271 ) — (51,808 ) Net balance as of December 31, 2018 $ 57,968 $ 14,783 $ 8,384 $ 24,013 $ 105,148 Weighted average life (in years) 11 10 10 2019 Balance as of December 31, 2018 $ 98,469 $ 23,819 $ 10,655 $ 24,013 $ 156,956 Flow cytometry acquisition purchase price allocation adjustments (116 ) (428 ) 1,154 (4,016 ) (3,406 ) Balance as of December 31, 2019 98,353 23,391 11,809 19,997 153,550 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2018 (40,501 ) (9,036 ) (2,271 ) — (51,808 ) Amortization expense (7,784 ) (2,428 ) (1,194 ) — (11,406 ) Accumulated amortization balance as of December 31, 2019 (48,285 ) (11,464 ) (3,465 ) — (63,214 ) Net balance as of December 31, 2019 $ 50,068 $ 11,927 $ 8,344 $ 19,997 $ 90,336 Weighted average life (in years) 11 10 10 The Company currently has three IP R&D projects. The first relates to the development of the next generation VERIGENE ® System, VERIGENE II. The Company believes the VERIGENE II will launch commercially in 2020. The second is a defensive IP R&D project related to the Company’s next generation xMAP ® System, xMAP INTELLIFLEX, which the Company believes will launch commercially in 2020. The third relates to the development of the next generation Guava System, acquired as part of the acquisition (Guava Next Gen System). The Company believes the Guava Next Gen System will launch in 2020. The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2020 $ 11,406 2021 11,048 2022 9,801 2023 9,452 2024 9,452 Thereafter 19,180 $ 70,339 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 9 — OTHER COMPREHENSIVE LOSS Comprehensive loss represents a measure of all changes in equity that result from recognized transactions and other economic events other than those resulting from investments by and distributions to shareholders. Other comprehensive loss for the Company includes foreign currency translation adjustments and net unrealized holding gains and losses on available-for-sale investments. The following table presents the changes in each component of accumulated other comprehensive loss, net of tax (in thousands): Accumulated Other Comprehensive Loss Items - Foreign Currency Balance as of December 31, 2018 $ (1,127 ) Other comprehensive loss (253 ) Net current-period other comprehensive loss (253 ) Balance as of December 31, 2019 $ (1,380 ) There are no tax benefits or expenses related to the other comprehensive loss for the twelve months ended December 31, 2019 . |
ACCRUED LIABILITIES (Notes)
ACCRUED LIABILITIES (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 10 — ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31 (in thousands): 2019 2018 Compensation and employee benefits $ 17,011 $ 18,086 Dividends payable 4,104 2,703 Income and other taxes 1,538 1,014 Warranty costs 1,641 1,901 Royalties payable 1,335 1,373 Current operating lease liabilities 5,053 — Other 1,190 1,695 $ 31,872 $ 26,772 Sales of certain of the Company’s systems are subject to a warranty. System warranties typically extend for a period of twelve months from the date of installation or no more than 15 months from the date of shipment. The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. Warranty expenses are evaluated and adjusted periodically. The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs at December 31, 2016 $ 675 Warranty services provided (2,049 ) Accrual for warranty costs 2,682 Accrued warranty costs at December 31, 2017 1,308 Warranty services provided (2,159 ) Accrual for warranty costs 2,752 Accrued warranty costs at December 31, 2018 1,901 Warranty services provided (2,868 ) Accrual for warranty costs 2,608 Accrued warranty costs at December 31, 2019 $ 1,641 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 11 — INCOME TAXES The components of income before income taxes for the years ended December 31 are as follows (in thousands): 2019 2018 2017 Domestic $ (31,314 ) $ 7,242 $ 18,436 Foreign 21,812 21,069 18,713 Total $ (9,502 ) $ 28,311 $ 37,149 The components of the (benefit) provision for income taxes attributable to continuing operations for the years ended December 31 are as follows (in thousands): 2019 2018 2017 Current: Federal $ 821 $ (3,318 ) $ 3,149 Foreign 951 515 295 State (163 ) 600 883 Total current expense (benefit) $ 1,609 $ (2,203 ) $ 4,327 Deferred: Federal (10,179 ) 6,351 14,970 Foreign 4,597 5,271 (9,267 ) State (1,691 ) 384 (2,304 ) Total deferred (benefit) expense (7,273 ) 12,006 3,399 Total (benefit) provision for income taxes $ (5,664 ) $ 9,803 $ 7,726 The (benefit) provision for income taxes differs from the amount computed by applying the statutory federal rate to pretax income as follows (in percentages): Year Ended December 31, 2019 2018 2017 Statutory tax rate 21.0 % 21.0 % 35.0 % State taxes, net of federal benefit 9.6 % 3.0 % (1.4 )% Permanent items (1.6 )% 2.6 % 0.5 % Effect of foreign operations (11.7 )% 3.4 % (5.7 )% Research and incentive tax credit generated 18.9 % (8.7 )% (4.6 )% Valuation allowance 0.8 % 0.4 % (37.6 )% Income tax reserves 67.3 % 24.7 % 0.5 % Remeasurement U.S. deferreds 0.0 % (0.3 )% 7.3 % Transition tax (5.3 )% (16.6 )% 18.1 % Foreign earnings withholding tax 6.6 % (7.9 )% 8.6 % Global intangible low-taxed income (44.4 )% 5.7 % 0.0 % Other measurement period Tax Act adjustments 0.0 % 2.6 % 0.0 % Canadian income tax audit 0.0 % 4.8 % 0.0 % Other (1.0 )% (0.1 )% 0.1 % 60.2 % 34.6 % 20.8 % The Company accounts for income taxes using the asset and liability method in accordance with ASC 740 “Income Taxes” (ASC 740) . Under this method, deferred income taxes are recognized for the future tax consequences of differences between the tax and financial accounting bases of assets and liabilities at the end of each reporting period. Deferred income taxes are based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. Significant components of the Company’s deferred tax assets and liabilities as of December 31 are as follows (in thousands): 2019 2018 Deferred tax assets: Accrued liabilities and other $ 4,577 $ 5,646 Net operating loss and credit carryforwards 52,141 54,167 Deferred revenue 1,023 — Leases 5,023 — Stock compensation and other 7,791 6,525 Gross deferred tax assets 70,555 66,338 Valuation allowance (17,906 ) (21,354 ) Total deferred tax assets $ 52,649 $ 44,984 Deferred tax liabilities: Accrued liabilities and other $ (1,287 ) $ (2,204 ) Deferred revenue — (358 ) Depreciation and amortization (18,443 ) (20,952 ) Leases (4,550 ) — Equity method investment (667 ) — Total deferred tax liabilities (24,947 ) (23,514 ) Net deferred tax assets $ 27,702 $ 21,470 The Company has established a valuation allowance against a portion of its remaining deferred tax assets because it is more likely than not that certain deferred tax assets will not be realized. In determining whether deferred tax assets are realizable, the Company considered numerous factors including historical profitability, the amount of future taxable income and the existence of taxable temporary differences that can be used to realize deferred tax assets. The valuation allowance decreased approximately $3.4 million in 2019 from 2018 . This decrease in the valuation allowance had minimal impact on the effective tax rate as this change in the valuation allowance was primarily due to certain deferred tax assets related to state net operating losses that expired and were fully offset by a valuation allowance. As such, the Company removed the expired deferred tax asset and released the corresponding valuation allowance. At December 31, 2019 , the Company had gross federal, state and foreign net operating loss carryforwards of approximately $60.7 million , $311.1 million , and $6.3 million , respectively. These losses expire beginning in 2020 . Federal and state net operating losses of approximately $59.0 million and $300.5 million , respectively, were acquired as part of the acquisitions of U.S. companies. These acquired net operating losses are subject to annual limitations due to the “change of ownership” provisions of Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The Company has federal, state and foreign credit carryforwards of approximately $8.2 million , $3.6 million , and $11.4 million , respectively. These credits begin to expire in 2022 , except for approximately $1.5 million which have an indefinite carryforward period. Certain of these credits are subject to annual limitations under the change in ownership provisions. Alternative minimum tax credits of $250,000 which are potentially subject to refund under the Tax Act have been reflected as deferred tax assets. In addition, the Company has state research credits of approximately $1.2 million which have an indefinite carryforward period. The excess of financial reporting basis over tax basis of the Company’s foreign subsidiaries is considered permanently reinvested with the exception of certain earnings of the Canadian subsidiary. The cumulative amount of excess financial reporting basis of the Company’s non-U.S. subsidiaries was approximately $22.5 million at December 31, 2019 , $3.8 million at December 31, 2018 and $7.4 million at December 31, 2017 . Since the Company does not intend to permanently reinvest portions of its previously taxed Canadian earnings, it has recorded a deferred tax liability of $33,000 related to federal and state income taxes associated with the ultimate repatriation from Canada to the U.S. of these previously taxed earnings. Beginning January 1, 2018, the Tax Act implemented a territorial tax system in the U.S. such that the income earned by the Company’s non-U.S. subsidiaries will be subject to a 100% dividend received deduction, with certain exceptions. We have not recognized a deferred tax liability related to withholding taxes on the excess financial reporting basis of our other foreign subsidiaries because the Company currently intends to reinvest earnings of these subsidiaries in operations outside the U.S. Determination of the amount of the unrecognized deferred tax liability on these unremitted earnings is not practicable. As of December 31, 2019 and 2018 , the Company had recorded gross unrecognized tax benefits of approximately $3.4 million and $9.7 million , respectively. All of the unrecognized tax benefits as of December 31, 2019 , if recognized, would impact the effective tax rate. The Company recognizes interest expense and penalties associated with uncertain tax positions as a component of income tax expense. During the years ended December 31, 2019 and 2018 , the Company recognized approximately $1,000 and $104,000 in tax related interest and penalties, respectively. Reserves for interest and penalties as of December 31, 2019 and 2018 are not significant as the Company has net operating loss carryovers. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands): 2019 2018 Balance at beginning of year $ 9,721 $ 2,777 Additions based on tax positions related to the current year 342 749 Additions for tax positions of prior years 398 6,605 Reductions for tax positions of prior years (7,038 ) (410 ) Balance at end of year $ 3,423 $ 9,721 The Company recorded a reduction in unrecognized tax benefits related to the U.S. transition tax and a related income tax benefit of $6.6 million as a result of a ruling for certain aspects of the E&P calculation of its Canadian subsidiary. As of December 31, 2019 , there were no unrecognized tax benefits that we expect would change significantly over the next 12 months. The Company files U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitations. In the United States and Canada, the statute of limitations with respect to the federal income tax returns for tax years after 2013 are open to audit; however, since the Company has net operating losses, the taxing authority has the ability to review tax returns prior to the 2013 tax year and make adjustments to these net operating loss carryforwards. We are currently under audit in the United States for our 2016 tax year. Although we do not expect a material adjustment, the outcome of the audit is not known at this time. We are not under audit in any other major taxing jurisdiction at this time. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 12 — EARNINGS PER SHARE A reconciliation of the denominators used in computing per share net income (EPS) is as follows (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Basic: Net (loss) income $ (3,838 ) $ 18,508 $ 29,423 Less: allocation to participating securities 65 (312 ) (529 ) Net (loss) income attributable to common stockholders $ (3,773 ) $ 18,196 $ 28,894 Weighted average common stock outstanding 44,148 43,727 43,173 Net (loss) income per share attributable to common stockholders $ (0.09 ) $ 0.42 $ 0.67 Diluted: Net (loss) income $ (3,838 ) $ 18,508 $ 29,423 Less: allocation to participating securities 63 (311 ) (529 ) Net (loss) income attributable to common stockholders $ (3,775 ) $ 18,197 $ 28,894 Weighted average common stock outstanding 44,148 43,727 43,173 Effect of dilutive securities: stock options and awards — 564 127 Weighted-average shares used in computing net (loss) income per share 44,148 44,291 43,300 Net (loss) income per share attributable to common stockholders $ (0.09 ) $ 0.41 $ 0.67 Basic net (loss) income per share is computed by dividing the net (loss) income for the period by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share is computed by dividing the net (loss) income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Restricted stock awards (RSAs) and stock options to acquire 1,271,248 shares, 619,113 shares, and 2,182,404 shares for the years ended December 31, 2019 , 2018 and 2017 , respectively, were excluded from the computations of diluted earnings per share because the effect of including the RSAs and stock options would have been anti-dilutive. We apply the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for our non-vested, time-based restricted stock awards with non-forfeitable dividends and for our common stock. Our non-vested, time-based restricted stock awards with non-forfeitable dividends are considered securities which participate in undistributed earnings with common stock. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Our non-vested, time-based restricted stock awards with non-forfeitable dividends do not have such an obligation so they are not allocated losses. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 13 — STOCKHOLDERS’ EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION Preferred Stock The Company’s Board of Directors has the authority to issue up to 5,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any series or the designation of such series, without further vote or action by the Company’s stockholders. At December 31, 2019 and 2018 , there was no preferred stock issued and outstanding. Dividends I n February 2017, the Board of Directors initiated a cash dividend program under which the Company began paying a regular quarterly cash dividend. The following table shows cash dividends declared, recorded, and paid (or to be paid) in the periods shown: Date Paid or To Be Paid Dividends Declared per Share Twelve Months Ending Date Declared Date Payable December 31, 2017 February 21, 2017 March 24, 2017 April 14, 2017 $ 0.06 May 24, 2017 June 23, 2017 July 14, 2017 $ 0.06 September 12, 2017 September 22, 2017 October 13, 2017 $ 0.06 December 7, 2017 December 22, 2017 January 12, 2018 $ 0.06 December 31, 2018 January 24, 2018 March 23, 2018 April 13, 2018 $ 0.06 May 18, 2018 June 22, 2018 July 13, 2018 $ 0.06 September 11, 2018 September 21, 2018 October 12, 2018 $ 0.06 December 11, 2018 December 22, 2018 January 10, 2019 $ 0.06 December 31, 2019 February 8, 2019 March 21, 2019 April 11, 2019 $ 0.06 May 21, 2019 June 20, 2019 July 11, 2019 $ 0.06 July 31, 2019 September 26, 2019 October 17, 2019 $ 0.09 December 6, 2019 December 19, 2019 January 15, 2020 $ 0.09 The Company’s current intent is to pay a continuing dividend on a quarterly basis. However, future declaration of dividends is subject to the final determination of the Company’s Board of Directors. Stock-Based Compensation At December 31, 2019 , the Company has one stock-based employee compensation plan pursuant to which grants may be made: the Luminex Corporation 2018 Equity Incentive Plan (Equity Incentive Plan) which was approved at the Company’s Annual Meeting on May 17, 2018. No further grants shall be made pursuant to the 2000 Long-Term Incentive Plan (2000 Plan), the 2001 Broad-Based Stock Option Plan (2001 Plan) or the 2006 Equity Incentive Plan (2006 Plan). In addition, at December 31, 2019 , the Company has one plan pursuant to which discount purchases may be made by the participants in such plan: the Luminex Corporation Employee Stock Purchase Plan (ESPP), which was approved at the Company’s Annual Meeting on May 17, 2012 and amended at the Company’s Annual Meeting on May 18, 2017. Equity Incentive Plans Under the Company’s Equity Incentive Plan and, the 2006 Plan, certain employees, consultants and non-employee directors have been granted RSAs, restricted stock units (RSUs) and options to purchase shares of common stock. The options, RSAs, and RSUs generally vest in installments over a three to five year period, and the options expire either seven or ten years after the date of grant. The ESPP provides for the granting of rights to certain employees of the Company to defer an elected percentage, up to 15% , of their base salary through the purchase of the Company’s common stock, discounted by 15% . As of December 31, 2019 , there were approximately 3.8 million shares authorized for future issuance under the Company’s Equity Incentive Plan and approximately 210,000 shares eligible for purchase pursuant to the terms and conditions of the ESPP as more fully described below. The Equity Incentive Plan, the 2006 Plan and the ESPP are administered by the Compensation Committee of the Board of Directors. The Compensation Committee has the authority to determine the terms and conditions under which awards will be granted from the Equity Incentive Plan, including the number of shares, vesting schedule and term, as applicable. Any option exercise prices, as set forth in the Equity Incentive Plan, will be equal to the fair market value on the date of grant. Under certain circumstances, the Company may repurchase previously granted RSAs and RSUs. On each of February 21, 2019 and 2018 , the Compensation Committee approved awards of stock options (the Performance Options) to the Company’s named executive officers and certain other executives that vest over four years based on achievement of certain operating profit and revenue targets for each of 2019 and 2018 , respectively. The Performance Options have an exercise price equal to the closing market price for the Company’s common stock on the Nasdaq Global Select Market on the date of grant ( March 12, 2019 and 2018 , respectively) and expire seven years from the date of grant. The Performance Options were measured over a one-year performance period ending on December 31, 2019 and 2018 , respectively. Following the end of the applicable fiscal year, the Committee determined the number of Performance Options which were eligible to vest based upon the level of achievement of an established Company performance goal (the Company Financial Goal). If the Company failed to meet the threshold performance for the performance period, no Performance Options would be eligible to vest. Minimum vesting for minimum threshold performance started at 30% of the target value for the Company Financial Goal. If the Company’s performance exceeded the target performance, the recipient may receive additional Performance Options above the target number, subject to a maximum of 200% of the target award. The Company’s financial performance resulted in delivery of 83% and 115% of the number of target Performance Options granted for 2019 and 2018 , respectively. The Performance Options that are eligible to vest after the determination date will vest 25% on each of the first four anniversaries of the grant date. In the event of a change of control of the Company before the end of the performance period, the Performance Options will automatically vest based on the greater of actual achievement of the pro-rated Company Financial Goal as of the date of the change of control or 100% of target performance, as determined by the Committee in its sole discretion. The Performance Options are exercisable into shares of the Company’s common stock. Accounting for Stock Compensation Stock-based compensation costs are generally based on the fair value calculated from the Black-Scholes option-pricing model on the date of grant for stock options, performance options and market value on the date of grant for RSAs. The fair values of stock and stock options are amortized as compensation expense on a straight-line basis over the vesting period of the grants. In accordance with ASC 718, the Company evaluates the assumptions used in the Black-Scholes model at each grant date using a consistent methodology for computing expected volatility, expected term and risk-free rate of return. Calculation of expected volatility is based on historical volatility. The expected life is calculated using the contractual term of the options as well as an analysis of the Company’s historical exercises of stock options and performance options. The estimate of the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is based on our history and expectation of dividend payouts at the time of grant. The assumptions used are summarized in the following table: 2019 2018 2017 Dividend yield 0.9 % 1.2 % 1.3 % Expected volatility 0.4 0.4 0.5 Risk-free rate of return 2.6 % 2.7 % 2.0 % Expected life of a 10 year contractual term option 7 years 7 years 7 years Expected life of a 7 year contractual term option 4.88 years 4.88 years 4.87 years Weighted average fair value at grant date $ 7.69 $ 8.23 $ 6.66 As part of the requirements of ASC 718, the Company is required to estimate potential forfeitures of stock grants and adjust compensation cost recorded accordingly. The estimate of forfeitures is based on historical forfeiture performance and will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of evaluation and will also impact the amount of stock compensation expense to be recognized in future periods. The Company’s stock option activity for the year ended December 31, 2019 is as follows: Stock Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 3,323 $ 19.05 Granted 976 24.43 Exercised (95 ) 17.85 Canceled or expired (411 ) 21.74 Outstanding at December 31, 2019 3,793 $ 20.17 4.13 $ 12,636 Vested at December 31, 2019 and expected to vest 3,746 $ 20.13 4.11 $ 12,593 Exercisable at December 31, 2019 1,927 $ 18.31 3.00 $ 9,380 During the years ended December 31, 2019 , 2018 and 2017 , the total exercise intrinsic value of stock options exercised was $0.4 million , $1.3 million and $0.7 million , respectively, and the total fair value of stock options that vested was $11.9 million , $12.7 million and $12.7 million , respectively. Exercise intrinsic value represents the difference between the market value of the Company’s common stock at the time of exercise and the price paid by the employee to exercise the options. The Company had $6.5 million of total unrecognized compensation costs related to stock options at December 31, 2019 that are expected to be recognized over a weighted-average period of 2.29 years . The Company’s restricted share activity for the year ended December 31, 2019 is as follows: Restricted Stock Awards Shares (in thousands) Weighted Average Grant Price Non-vested at December 31, 2018 724 $ 20.27 Granted 414 24.07 Vested (261 ) 19.67 Cancelled or expired (67 ) 21.74 Non-vested at December 31, 2019 810 $ 22.28 Restricted Stock Units Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Non-vested at December 31, 2018 468 Granted 120 Vested (45 ) Cancelled or expired (21 ) Non-vested at December 31, 2019 522 1.07 $ 12,088 Vested at December 31, 2019 and expected to vest 515 1.01 $ 11,927 Exercisable at December 31, 2019 356 0.00 $ 8,240 As of December 31, 2019 , there was $17.4 million of unrecognized compensation cost related to RSAs and RSUs. That cost is expected to be recognized over a weighted average-period of 2.18 years . The total fair value of restricted shares vested during the year ended December 31, 2019 , 2018 and 2017 was $6.0 million , $6.7 million and $8.8 million , respectively. RSAs and RSUs may be granted at the discretion of the Compensation Committee of the Board of Directors under the Equity Incentive Plan in connection with the hiring or retention of key employees and are subject to certain conditions. Restrictions expire at certain dates after the grant date in accordance with specific provisions in the applicable agreement. During the year ended December 31, 2019 , the Company awarded 413,967 shares of RSAs, which had a fair value at the date of grant ranging from $20.04 – $24.43 . During the year ended December 31, 2018 , the Company awarded 387,436 shares of RSAs, which had a fair value at the date of grant ranging from $20.33 – $29.33 . During the year ended December 31, 2017 , the Company awarded 369,715 shares of RSAs, which had a fair value at the date of grant ranging from $18.04 – $20.80 . During the year ended December 31, 2019 , the Company awarded 120,498 shares of RSUs and dividend equivalents, which had a fair value at the date of grant ranging from $21.01 – $24.43 . During the year ended December 31, 2018 , the Company awarded 95,127 shares of RSUs and dividend equivalents, which had a fair value at the date of grant ranging from $21.98 – $26.39 . During the year ended December 31, 2017 , the Company awarded 104,237 shares of RSUs, which had a fair value at the date of grant ranging from $18.04 – $20.80 . Compensation under these RSAs and RSUs was charged to expense over the restriction period and amounted to $8.2 million , $6.2 million , and $7.2 million in 2019 , 2018 and 2017 , respectively. There were no significant stock compensation costs capitalized into assets as of December 31, 2019 , 2018 or 2017 . The Company received $1.7 million , $2.8 million and $2.8 million for the exercise of stock options during the years ended December 31, 2019 , 2018 and 2017 , respectively. Cash was not used to settle any equity instruments previously granted. The Company issued shares pursuant to grants relating to each of the Equity Incentive Plan, the 2006 Plan and 2000 Plan from reserves upon the exercise of stock options and vesting of RSAs. The following are the stock-based compensation costs recognized in the Company’s consolidated statements of comprehensive income (in thousands): Year Ended December 31, 2019 2018 2017 Cost of revenue $ 2,028 $ 1,715 $ 1,561 Research and development 1,635 1,409 2,039 Selling, general and administrative 9,535 9,102 8,878 Stock-based compensation costs reflected in net (loss) income $ 13,198 $ 12,226 $ 12,478 Employee Stock Purchase Plan In May 2012, the Company’s stockholders approved the ESPP, which provides for the purchase of up to 500,000 shares of the Company’s common stock by eligible employees. In May 2017, the Company’s stockholders approved an amendment to the ESPP Plan, which increased the shares available under the ESPP by 341,744 shares. The ESPP period is semi-annual and allows participants to purchase the Company’s common stock at 85% of the lesser of (i) the closing market value per share of the common stock on the first trading date of the option period or (ii) the closing market value per share of the common stock on the last trading date of the option period. As of December 31, 2019 , 2018 and 2017 , 631,553 shares, 518,111 shares and 434,400 shares, respectively had been issued out of the ESPP. The related stock-based compensation expense was $0.7 million , $0.6 million and $0.5 million for 2019 , 2018 and 2017 , respectively. The Company uses the Black-Scholes model to estimate the fair value of shares to be issued under the ESPP as of the grant date using the following weighted average assumptions: 2019 2018 2017 Assumptions: Risk-free interest rates 2.55 % 2.1 % 1.07 % Expected life 0.5 years 0.5 years 0.5 years Expected volatility 0.35 0.44 0.45 Dividend yield 0.942 % 1.2 % 1.3 % Reserved Shares of Common Stock At December 31, 2019 and 2018 , the Company had reserved 8,349,808 and 8,925,957 shares of common stock, respectively, for the issuance of common stock upon the exercise of options, issuance of RSAs, RSUs, purchase of common stock pursuant to the ESPP or other awards issued pursuant to the Company’s equity plans and arrangements. The following table summarizes the reserved shares by plan as of December 31, 2019 : Options and RSUs Outstanding Shares Available for Future Issuance Total Shares Reserved Equity Incentive Plan 4,326,593 3,813,024 8,139,617 ESPP — 210,191 210,191 4,326,593 4,023,215 8,349,808 Employee Savings Plans and Other Benefit Plans Effective January 1, 2001, the Company began sponsoring a retirement plan authorized by section 401(k) of the Internal Revenue Code for the Company’s employees in the United States. In accordance with the 401(k) plan, all employees are eligible to participate in the plan on the first day of the month following the commencement of full time employment. For 2019 , 2018 and 2017 , each employee could contribute a percentage of compensation up to a maximum of $19,000 , $18,500 , and $18,500 per year, respectively, with the Company matching 50% of each employee’s contributions. Effective January 1, 2010, the Company began contributing to a deferred profit sharing plan for its Canadian employees. All Canadian employees are eligible to participate in the plan. The Company’s contributions to these plans for 2019 , 2018 and 2017 were $5.1 million , $4.0 million and $3.8 million , respectively. Several of the Company’s Netherlands employees are covered by a defined benefit plan. The cost and total liability to the Company is not material. Effective January 1, 2011, all of the Company’s new hires in the Netherlands are eligible to participate in a defined contribution plan. |
Preferred Stock [Text Block] | Preferred Stock The Company’s Board of Directors has the authority to issue up to 5,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any series or the designation of such series, without further vote or action by the Company’s stockholders. At December 31, 2019 and 2018 , there was no preferred stock issued and outstanding. |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation At December 31, 2019 , the Company has one stock-based employee compensation plan pursuant to which grants may be made: the Luminex Corporation 2018 Equity Incentive Plan (Equity Incentive Plan) which was approved at the Company’s Annual Meeting on May 17, 2018. No further grants shall be made pursuant to the 2000 Long-Term Incentive Plan (2000 Plan), the 2001 Broad-Based Stock Option Plan (2001 Plan) or the 2006 Equity Incentive Plan (2006 Plan). In addition, at December 31, 2019 , the Company has one plan pursuant to which discount purchases may be made by the participants in such plan: the Luminex Corporation Employee Stock Purchase Plan (ESPP), which was approved at the Company’s Annual Meeting on May 17, 2012 and amended at the Company’s Annual Meeting on May 18, 2017. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 14 — COMMITMENTS AND CONTINGENCIES Leases We have leased all of our research, manufacturing and office space and have entered into various other leases in conducting our business. Our leases have remaining lease terms of one year to six years, and some of our leases include options to extend the leases for up to ten years, tenant improvement allowances, rent holidays and rent escalation clauses. At inception, we determine whether an agreement represents a lease and at commencement we evaluate each lease agreement to determine whether the lease is an operating or financing lease. As described below under “Note 17 - Recent Accounting Pronouncements - Recently adopted accounting guidance,” the Company adopted the new lease guidance as of January 1, 2019. Pursuant to the new lease guidance, all of the Company’s leases outstanding on January 1, 2019 continued to be classified as operating leases. With the adoption of the new lease guidance, the Company recorded an operating lease right-of-use asset and an operating lease liability on its balance sheet. Right-of-use lease assets represent the Company’s right to use the underlying asset for the lease term and the lease obligation represents the Company’s commitment to make the lease payments arising from the lease. Right-of-use lease assets and obligations are recognized at the commencement date based on the present value of remaining lease payments over the lease term. As the Company’s leases do not provide an implicit rate, we have used an estimated incremental borrowing rate of 5.75% , based on the information available at the commencement date in determining the present value of lease payments. The right-of-use lease asset includes any lease payments made prior to commencement and excludes any lease incentives. The lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as common area costs and property taxes are expensed as incurred. For all lease agreements we combine lease and non-lease components. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The components of the lease expense were as follows (in thousands): Twelve Months Ended December 31, 2019 2018 2017 Operating lease cost (a) $ 9,434 $ 7,032 $ 6,583 (a) Includes short-term lease expense costs, which were immaterial in the years ended December 31, 2019, 2018 and 2017 Supplemental cash flow information related to leases was as follows (in thousands): Twelve Months Ended December 31, 2019 Lease liabilities arising from obtaining right to use assets Operating leases recorded upon lease standard adoption $ 24,922 Cash paid for amounts included in the measurement of lease liabilities $ 6,547 Supplemental balance sheet information related to leases was as follows (in thousands): December 31, 2019 Operating leases: Operating lease right-of-use assets $ 20,439 Operating lease liabilities $ 22,235 Weighted Average Remaining Lease Term 4.36 years Weighted Average Discount Rate 5.75 % Minimum annual lease commitments as of December 31, 2019 under non-cancellable leases for each of the next five years and in the aggregate were as follows (in thousands): Operating Leases 2020 $ 6,429 2021 6,225 2022 4,672 2023 4,007 2024 2,967 Thereafter 932 Total lease payments 25,232 Less: imputed interest (2,997 ) Lease liabilities at December 31, 2019 $ 22,235 These non-cancellable lease commitments related to facilities include certain rent escalation provisions which have been included in the minimum annual rental commitments shown above. These amounts are recorded to expense on a straight-line basis over the life of the lease. In addition, some of the Company’s leases contain options to renew the lease for five to ten years at the then prevailing market rental rate, right of first refusal to lease additional space that becomes available, or leasehold improvement incentives. Non-Cancellable Purchase Commitments As of December 31, 2019 the Company had approximately $36.7 million in purchase commitments primarily with several of its inventory suppliers as well as other operating commitments. Certain of our supply agreements require purchase and delivery of minimum amounts of components through 2019 , and purchases under these arrangements were $0.8 million , $2.2 million and $1.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Employment Contracts The Company has entered into employment contracts with certain of its key executives. Generally, certain amounts may become payable in the event the Company terminates the executives’ employment without cause or the executive resigns for good reason. Legal Proceedings In the normal course of business, the Company is subject to claims, lawsuits and legal proceedings. When and if it appears probable in management’s judgment, and based upon consultation with outside counsel, that we will incur monetary damages or other costs in connection with any claims or proceedings, and such costs can be reasonably estimated, we record the estimated liability in the financial statements. If only a range of estimated losses can be estimated, we record an amount within the range that, in management’s judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we record the liability at the low end of the range of estimates. Any such accrual would be charged to expense in the appropriate period. We disclose significant contingencies when the loss is not probable and/or the amount of the loss is not estimable, when we believe there is at least a reasonable possibility that a loss has been incurred. We recognize costs associated with legal proceedings in the period in which the services were provided. |
GUARANTEES (Notes)
GUARANTEES (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees and Product Warranties [Abstract] | |
Guarantees [Text Block] | NOTE 15 — GUARANTEES The terms and conditions of the Company’s development and supply and license agreements with its strategic partners generally provide for a limited indemnification of such partners, arising from the sale of Luminex systems and consumables, against losses, expenses and liabilities resulting from third-party claims based on an alleged infringement on an intellectual property right of such third party. The terms of such indemnification provisions generally limit the scope of and remedies for such indemnification obligations to a multiple of amounts paid by such strategic partner to Luminex during the previous annual period(s). To date, the Company has not had to reimburse any of its strategic partners for any losses arising from such indemnification obligations. |
GEOGRAPHIC INFORMATION (Notes)
GEOGRAPHIC INFORMATION (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Sales to Customers Property and Equipment, net 2019 2018 2017 2019 2018 2017 Domestic $ 252,381 $ 261,726 $ 256,834 $ 63,180 $ 63,382 $ 54,623 Foreign: Europe 36,625 21,672 20,378 178 394 809 Asia 32,220 21,603 20,134 442 519 741 Canada 5,293 4,775 4,386 1,715 1,993 2,077 Other 8,119 6,042 4,839 — — 8 $ 334,638 $ 315,818 $ 306,571 $ 65,515 $ 66,288 $ 58,258 |
RECENT ACCOUNTING (Notes)
RECENT ACCOUNTING (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 17 — RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting guidance In February 2016, the FASB issued guidance requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, with the exception of short-term leases. On January 1, 2019, the Company elected to adopt this new lease guidance using a simplified transition option that allows companies to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company also elected to adopt the package of practical expedients permitted in the new lease guidance. Accordingly, the Company is continuing to account for its existing operating leases as operating leases under the new lease guidance, without reassessing whether the contracts contain a lease under the new lease guidance or whether classification of the operating leases would be different under the new lease guidance. All of our leases at the adoption date were operating leases, primarily for facilities, and did not include any non-lease components. With the implementation of the new lease standard, the Company recognized right-of-use assets of $24.9 million, lease liabilities for operating leases of approximately $26.8 million, and eliminated deferred rent of $1.9 million. The Company did not have a cumulative adjustment impacting retained earnings. There are no changes to our previously reported results prior to January 1, 2019. Lease expense is not expected to change materially as a result of the adoption of the new lease standard. In May 2014, the FASB issued a new standard on revenue recognition (the Standard) which outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted the Standard effective January 1, 2018, using the modified retrospective approach. Under this method, we recorded a cumulative adjustment increasing retained earnings of $10.6 million before related tax impacts or $8.1 million net of related tax impacts. See Note 18, “Revenue Recognition” for additional discussion related to the Company’s adoption of the Standard. Under the Standard, estimated royalty revenue will be recorded each quarter on an accrual basis to more closely coincide with the timing of the end user sale by the strategic partner; with reconciliation made upon submission of the royalty report by the partner indicating actual royalties owed in the following quarter. In addition, we began recording the portion of reagent rental revenue associated with the recovery of the cost of providing the system and other hardware in reagent rental agreements as system revenue rather than assay revenue effective January 1, 2018. This change has not and is not expected to have any impact on top line revenue and we do not anticipate any material effects to our revenue categorization. On January 10, 2018, the FASB issued guidance on the accounting for tax on the GILTI provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Effective January 1, 2018, we recognize the tax on GILTI as a period expense in the period the tax is incurred. Under this policy, we have not provided deferred taxes related to temporary differences that upon their reversal will affect the amount of income subject to GILTI in the period. Recent accounting guidance not yet adopted In June 2016, the FASB issued guidance on financial instruments and related credit losses. The guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The statement of comprehensive income reflects the measurement of credit losses for newly recognized financial assets, as well as the expected credit losses during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2020. The Company will adopt the new standard effective January 1, 2020. The primary impact for the Company is the timing of recording expected credit losses on it trade receivables. The Company does not have a history of significant credit losses and this guidance will not have a material impact on its consolidated financial statements. In December 2019, the FABS issued final guidance that simplifies the accounting for income taxes by eliminating some exceptions to the general approach in Accounting Standards Codification (ASC) 740, Income Taxes. The guidance amended certain disclosure requirements that had become redundant, outdated or superseded. Additionally, this guidance includes provisions for investment company reporting modernization, amends accounting for the interim period effects of changes in tax laws or rates, and simplifies aspects of the accounting for franchise taxes. The guidance is effective for annual periods beginning after December 15, 2020, and is applicable for the Company in fiscal 2021. Early adoption is permitted. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recent accounting guidance not yet adopted In June 2016, the FASB issued guidance on financial instruments and related credit losses. The guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The statement of comprehensive income reflects the measurement of credit losses for newly recognized financial assets, as well as the expected credit losses during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2020. The Company will adopt the new standard effective January 1, 2020. The primary impact for the Company is the timing of recording expected credit losses on it trade receivables. The Company does not have a history of significant credit losses and this guidance will not have a material impact on its consolidated financial statements. In December 2019, the FABS issued final guidance that simplifies the accounting for income taxes by eliminating some exceptions to the general approach in Accounting Standards Codification (ASC) 740, Income Taxes. The guidance amended certain disclosure requirements that had become redundant, outdated or superseded. Additionally, this guidance includes provisions for investment company reporting modernization, amends accounting for the interim period effects of changes in tax laws or rates, and simplifies aspects of the accounting for franchise taxes. The guidance is effective for annual periods beginning after December 15, 2020, and is applicable for the Company in fiscal 2021. Early adoption is permitted. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. |
REVENUE RECOGNITION (Notes)
REVENUE RECOGNITION (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition, Deferred Revenue [Policy Text Block] | NOTE 18 — REVENUE RECOGNITION On January 1, 2018, the Company adopted ASC 606 on revenue recognition (the Standard), using the modified retrospective transition method consistent with the guidance issued by the FASB in May 2014. Under this method, the Company applied the guidance retrospectively, only to those contracts which were not completed as of the date of initial application, and recognized the cumulative effect of initially applying the Standard as an adjustment to the opening balance of retained earnings as of January 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under the Standard, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of the Standard, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of the Standard, the Company assesses the goods or services promised within each contract, identifies the performance obligations and assesses whether each promised good or service is distinct. The Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation and recognizes as revenue when such performance obligation is satisfied. Contract assets are included within Accounts receivables, net and contract liabilities are included in Deferred revenue on the Company’s Balance Sheet. The following table presents the opening and closing balances of the Company’s contract assets and liabilities for the twelve months ended December 31 , 2019 (in thousands): Balance at December 31, 2019 Balance at December 31, 2018 Contract assets: Unbilled receivables - Royalties $ 12,257 $ 10,805 Contract liabilities - short-term: Deferred revenue - Service (1) $ 7,771 $ 9,476 Deferred revenue - Licenses 207 227 Deferred revenue - Instruments 2 — Deferred revenue - Other 234 396 Total Contract liabilities - short-term $ 8,214 $ 10,099 Contract liabilities - long-term: Deferred revenue - Service $ 968 $ 207 Deferred revenue - Licenses 665 872 Total Contract liabilities - long-term $ 1,633 $ 1,079 (1) Note - 2018 contract liabilities includes $4.4 million of deferred service revenue which was acquired through the acquisition of EMD Millipore Corporation’s flow cytometry portfolio on December 31, 2018. During the twelve months ended December 31 , 2019 , the Company recognized the following revenues as a result of changes in the contract asset and contract liability balances in the period (in thousands): Year Ended December 31, 2019 Revenue recognized in the period: Amounts included as contract liabilities at the beginning of the period $ 5,110 Performance obligations satisfied in previous periods - |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | NOTE 1 — DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Luminex Corporation, the “Company” or “Luminex,” develops, manufactures and sells proprietary biological testing technologies and products with applications throughout the life sciences industries, including diagnostics, pharmaceutical and research. These industries depend on a broad range of tests, called assays, to perform diagnostic testing and conduct life science research. The Company established a position in several segments of the life sciences industries by developing and delivering products that satisfy a variety of customer needs in specific market segments, including multiplexing, accuracy, precision, sensitivity, specificity, reduction of labor and ability to test for proteins and nucleic acids. These needs are addressed by the Company’s proprietary technologies. Multiplexing, the foundation of the Company, allows the end user in a laboratory to generate multiple laboratory results from a single sample with a single assay. This is important because the Company’s end user customers, which include laboratory professionals performing discovery and research and clinical laboratories performing tests on patients as ordered by physicians and other laboratories, have a fundamental need to perform high quality testing as efficiently as possible. Until the availability of multiplexing technology, the laboratory professional had to perform one assay at a time in a sequential manner, and if additional testing was required on a sample, a second assay would be performed to generate the second result, and so on until all the necessary tests were performed. The Company primarily serves the life sciences industries by marketing products, including our specific testing equipment and assays, to various types of testing laboratories. As of December 31, 2019 , the Company had 82 strategic partners, 55 of which have released commercialized reagent-based products utilizing the Company’s technology. Luminex and these partners have sold approximately 17,000 xMAP-based instruments in laboratories worldwide as of December 31, 2019 , some of which may be retired or otherwise not in use. The Company’s remaining partners are in various stages of development and commercialization of products incorporating the Company’s technology. A primary focus for the Company’s growth is the development and sale of molecular diagnostic assays utilizing the Company’s proprietary MultiCode ® and VERIGENE technologies for use on the Company’s installed base of systems. The Company utilizes a direct sales model for sales of these products, which is intended to take advantage of the Company’s increasing installed base of instruments. Luminex’s assays are primarily focused on multiplexed applications for the human molecular clinical diagnostics market. Luminex’s assays are currently focused on three segments of the molecular diagnostic testing market: infectious disease, personalized medicine and human genetics. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts and results could differ from those estimates, and such differences could be material to the financial statements. Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits and highly liquid investments with original maturities of three months or less when purchased. Investments The Company determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near-term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Held-to-maturity securities are stated at amortized cost, which approximates fair value of these investments. Marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. Marketable securities are recorded as either short-term or long-term on the balance sheet based on contractual maturity date. The fair value of all securities is determined by obtaining non-binding market prices from the Company’s third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. In addition, the Company made an equity investment in a private company. The Company does not have majority control of the entity in which the investment was made, but has the ability to exercise significant influence over operating and financial policies; therefore, the Company accounts for this investment using the equity method. The Company's proportionate share of income or loss of approximately 28.4% is recorded in other income (expense), net in the Consolidated Statement of Comprehensive Income. This non-marketable equity investment is recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. The Company periodically reviews this equity investment for other-than-temporary declines in fair value based on the specific identification method and writes down the investment to its fair value when it determines that an other-than-temporary decline has occurred. Fair Value of Financial Instruments The fair values of financial instruments are determined by obtaining non-binding market prices from the Company’s third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, equity-method investments, long-term investments, accounts payable and accrued liabilities. The fair values of these financial instruments were not materially different from their carrying or contract values at December 31, 2019 and 2018 . See Note 6 for further details concerning fair value measurements. Supplemental Cash Flow Statement Information (in thousands) Year Ended December 31, 2019 2018 2017 Cash paid during the period for taxes $ 1,206 $ 2,214 $ 1,393 Cash paid during the period for interest and penalties 29 17 57 Effect of acquisitions: Fair value of tangible assets acquired 2,657 13,262 — Liabilities assumed (1,915 ) (5,082 ) — Cost in excess of fair value of assets acquired 18 32,647 — Acquired identifiable intangible assets 609 26,797 — Deferred tax liabilities, net 731 (4,433 ) — In-process research and development (4,016 ) 6,703 — Total purchase price (1,916 ) 69,894 — Less cash and cash equivalents acquired — 4,513 — Net cash paid for business acquisition $ (1,916 ) $ 65,381 $ — Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist of short-term and long-term investments and trade receivables. The Company’s short-term investments consist of investments in high credit quality financial institutions, non-government sponsored debt securities and corporate issuers. The Company provides credit, in the normal course of business, to a number of its customers geographically dispersed primarily throughout the U.S. The Company attempts to limit its credit risk by performing ongoing credit evaluations of its customers and maintaining adequate allowances for potential credit losses, but the Company does not require collateral. Thermo Fisher Scientific Inc. accounted for 12% , 14% and 15% of our total revenues in 2019 , 2018 and 2017 , respectively. LabCorp accounted for 15% and 20% of our total revenues in 2018 and 2017 , respectively. No other customer accounted for more than 10% of our total revenues in 2019 , 2018 or 2017 . Inventories Inventories, consisting primarily of raw materials and purchased components, are stated at the lower of cost or net realizable value, with cost determined according to the standard cost method, which approximates the first-in, first-out method. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. As a developer and manufacturer of high technology medical equipment, the Company may be exposed to a number of economic and industry factors that could result in portions of inventory becoming either obsolete or in excess of anticipated usage. These factors include, but are not limited to, technological changes in the Company’s markets, ability to meet changing customer requirements, competitive pressures on products and prices, and reliability and replacement of and the availability of key components from suppliers. The Company’s policy is to establish inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon the Company’s assumptions about future demand for products and market conditions. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales or usage, product expiration or end of life dates, estimated current and future market values and new product introductions. Assumptions used in determining the Company’s estimates of future product demand may prove to be incorrect, in which case the provision required for excess and obsolete inventory would have to be adjusted. If inventory is determined to be above the lower of cost or net realizable value, excess or obsolete, the Company would be required to record impairment charges within cost of goods sold at the time of such determination. Although considerable effort is made to ensure the accuracy of forecasts of future product demand, any significant unanticipated changes in demand or expected usage could have a significant negative impact on the value of inventory and the Company’s operating results. When recorded, reserves are intended to reduce the carrying value of inventory to its net realizable value. Property and Equipment Property and equipment are carried at cost less accumulated amounts for amortization and depreciation. Property and equipment are typically amortized or depreciated on a straight-line basis over the useful lives of the assets, which typically range from two to seven years. Leasehold improvements and equipment under capital leases are amortized on a straight-line basis over the shorter of the remaining term of the lease or the estimated useful life of the improvements and equipment. The Company classifies the carrying value of Luminex’s xMAP, ARIES ® and VERIGENE Systems placed within the reagent rental program and the instruments on loan to customers in property and equipment as “Assets on loan/rental.” Goodwill and Other Intangible Assets Goodwill represents the excess of the cost over the fair value of the assets of the acquired business. In accordance with Accounting Standards Codification (ASC) 350 “Goodwill and Other” (ASC 350), goodwill is reviewed for impairment at least annually at the beginning of the fourth quarter, or more frequently if impairment indicators arise, tested at our sole reporting unit level. Events or circumstances that could trigger an impairment test include, but are not limited to, a significant adverse change in the business climate, significant changes in our use of the acquired assets, significant negative industry or economic trends, significant under-performance relative to operating performance indicators and significant changes in competition. The Company determined that no triggering events occurred during the year ended December 31, 2019 . In 2019 and 2018 , the Company estimated the fair value of the reporting unit using a fair-value-based approach based on the market capitalization. Determining the fair value of goodwill is subjective in nature and often involves the use of estimates and assumptions including, without limitation, use of estimates of future prices and volumes for the Company’s products, capital needs, economic trends and other factors which are inherently difficult to forecast. The Company’s annual test did not result in an impairment charge in 2019 , as the estimated fair value of the reporting unit continued to exceed the carrying value by a significant enough amount such that any reasonably likely change in the assumptions used in the analysis would not cause the carrying value to exceed the estimated fair value for the reporting unit. No goodwill impairments were recorded in 2019 , 2018 or 2017 . Intangible assets are amortized on a straight-line basis over their respective estimated useful lives ranging from 9 to 15 years. Any in-process research and development will be an indefinite-lived intangible asset until completion or abandonment, at which point it will be accounted for as a finite-lived intangible asset or written off if abandoned. Impairment of Long-Lived Assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. Revenue Recognition and Allowance for Doubtful Accounts Performance Obligations: Revenue is generated primarily from the sale of the Company’s products and related services, which are primarily support and maintenance services on the Company’s systems. The Company recognizes product revenue when the customer obtains control of the Company’s product, which typically occurs upon shipment or delivery to the customer depending upon the shipping terms. We treat shipping and handling costs performed after a customer obtains control of the good as a fulfillment cost. Our customers do not typically have any contractual rights of return outside of our warranty provisions. The Company has allowed few returns to date and believes that returns of its products will be minimal in the future. Royalties: For arrangements that include sales-based royalties, including minimum payments, the Company recognizes revenue at the later of: (i) when the related sales occur, or (ii) when the performance obligation, to which some or all of the royalty has been allocated, has been satisfied. This was a change from how the Company treated royalty payments prior to 2018, by recognizing royalty revenue when our strategic partners reported the end-user sales to the Company, and is primarily the basis for our cumulative adjustment, made as of January 1, 2018, to retained earnings of $10.6 million before related tax impacts or $8.1 million net of related tax impacts. Royalty payments are typically received when our strategic partners report the end-user sales to the Company. Reagent Rentals: The Company provides systems and certain other hardware to customers through reagent rental agreements, under which the customers commit to purchasing minimum quantities of assays at a stated price over a defined contract term, which is normally two to three years. Instead of rental payments, the Company recovers the cost of providing the system and other hardware in the amount charged for assays. Revenue is recognized over the defined contract term as assays are shipped. The depreciation costs associated with the system and other hardware are charged to cost of sales on a straight-line basis over the estimated life of the system. The costs to maintain these instruments in the field are charged to cost of sales as incurred. Under the guidance, the Company reclassified the portion of reagent rental revenue associated with the recovery of the cost of providing the system and other hardware in reagent rental agreements from assay revenue to system revenue effective January 1, 2018. This change did not have any impact on top line revenue and the Company has not experienced any material effects to its revenue categorization. Warranties: The Company provides a limited, assurance-type warranty, typically for twelve months from installation for the systems sold to end customers and fifteen months for the systems sold to partners. The Company accrues for the estimated cost of initial product warranties at the time revenue is recognized. While the Company engages in product quality programs and processes, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. While the Company believes that adequate reserve has been made in the consolidated financial statements for product warranties, should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. Warranty expenses are evaluated and adjusted periodically. License Revenues: The Company enters into out-licensing agreements, under which it licenses certain rights to its technology to third parties. These licenses are typically not distinct, as the customer cannot benefit from the license on its own, and do not have significant standalone functionality, but represent single performance obligations together with the sales of our consumables, systems and assays. The terms of these arrangements typically include payment to the Company of non-refundable, up-front license fees and can extend up to twenty years. Each of these payments results in license revenues which are recognized ratably over time and are included in other revenues, except for revenues from royalties on net sales of licensed products, which are classified as royalty revenues. Deferred revenues related to these out-licensing agreements are shown in contract liabilities in Note 18, “Revenue Recognition”. Service Agreements: Revenue from extended service agreements is deferred when payment is received in advance of the performance obligation being satisfied or completed. Luminex provides an integrated service of maintenance and related activities for equipment sold to customers, where the nature of the overall promise is to provide a stand-ready service. As such, the performance obligation is recognized as a series of distinct service periods and the service revenue is recognized ratably over the term of each agreement. The extended service agreements typically range from one to four years and payment is typically received up-front. Reserves for Variable Consideration : Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from discounts and any other allowances that are offered within contracts between the Company and its customers relating to the Company’s sales of its products. These reserves are based on the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as the Company’s historical experience, current contractual requirements, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of each contract. The amount of variable consideration which is included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect net product revenue and earnings in the period when such variances become known. Allowance for Doubtful Accounts: The Company continuously monitors collections and payments from its customers and maintains allowances for doubtful accounts based upon its historical experience and any specific customer collection issues that have been identified. While such credit losses have historically been within the Company’s expectations, there can be no assurance that the Company will continue to experience the same level of credit losses that it has in the past. A significant change in the liquidity or financial position of any one of the Company’s significant customers, or a deterioration in the economic environment in general, could have a material adverse impact on the collectability of the Company’s accounts receivable and its future operating results, including a reduction in future revenues and additional allowances for doubtful accounts. We adopted new guidance on financial instruments and related credit losses effective January 1, 2020, which will impact the timing of the measurement and recognition of expected credit losses. For further discussion, see Note 17, “Recent Accounting Pronouncements.” Product-Related Expenses The Company provides for the estimated cost of initial product warranties at the time revenue is recognized. While the Company engages in product quality programs and processes, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. Shipping and handling costs associated with product sales are included in cost of sales. Advertising costs are charged to operations as incurred. The Company does not have any direct-response advertising. Advertising expenses, which include trade shows and conventions, were approximately $3.5 million , $2.8 million and $2.4 million for 2019 , 2018 and 2017 , respectively, and were included in selling, general and administrative expense in the Consolidated Statements of Comprehensive Income. Research and Development Costs Research and development costs are expensed in the period incurred. Nonrefundable advance payments for research and development activities for materials, equipment, facilities and purchased intangible assets that have an alternative future use are deferred and capitalized. In addition, the Company capitalizes certain internally developed products used for evaluation during development projects that also have alternative future uses. These internally developed assets are generally depreciated on a straight-line basis over the useful life of the assets, which range from one to five years. Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated in accordance with ASC 830, “Foreign Currency Matters.” The reporting currency for the Company is the U.S. dollar. With the exception of its Canadian subsidiary, whose functional currency is the U.S. dollar, the functional currency of the Company’s foreign subsidiaries is their local currency. Accordingly, assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each balance sheet date. Before translation, the Company re-measures foreign currency denominated assets and liabilities, including inter-company accounts receivable and payable, into the functional currency of the respective entity, resulting in unrealized gains or losses recorded in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income. Revenues and expenses are translated using average exchange rates during the respective period. Foreign currency translation adjustments are accumulated as a component of other comprehensive income as a separate component of stockholders’ equity. Gains and losses arising from transactions denominated in foreign currencies are included in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income and to date have not been material. Incentive Compensation Management incentive plans are tied to various financial and non-financial performance metrics. Bonus accruals made throughout the year related to the various incentive plans are based on management’s best estimate of the achievement of the specific metrics. Adjustments to the accruals are made on a quarterly basis as forecasts of performance are updated. At year-end, the accruals are adjusted to reflect the actual results achieved. Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that those assets will be realized. The Company accounts for uncertain tax positions in accordance with ASC 740, “Income Taxes”, which clarifies the accounting for uncertainty in tax positions. These provisions require recognition of the impact of a tax position in the Company’s financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected as a component of income tax expense. Earnings Per Share Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common shares and potential common shares from outstanding stock options, restricted stock units (RSUs) and contingently issuable shares resulting from an award subject to performance or market conditions determined by applying the treasury stock method. In periods with a net loss, potentially dilutive securities composed of incremental common shares issuable upon the exercise of stock options and warrants, and common shares issuable on conversion of preferred stock, would be excluded from historical diluted loss per share because of their anti-dilutive effect. Stock-Based Compensation The Company accounts for stock-based employee compensation plans under the fair value recognition and measurement provisions of ASC 718 “Stock Compensation” (ASC 718). ASC 718 requires the recognition of compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options, restricted stock units and shares issued under the Company’s employee stock purchase plan. Pursuant to ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. |
Business Description and Basis of Presentation [Text Block] | Description of Business Luminex Corporation, the “Company” or “Luminex,” develops, manufactures and sells proprietary biological testing technologies and products with applications throughout the life sciences industries, including diagnostics, pharmaceutical and research. These industries depend on a broad range of tests, called assays, to perform diagnostic testing and conduct life science research. The Company established a position in several segments of the life sciences industries by developing and delivering products that satisfy a variety of customer needs in specific market segments, including multiplexing, accuracy, precision, sensitivity, specificity, reduction of labor and ability to test for proteins and nucleic acids. These needs are addressed by the Company’s proprietary technologies. Multiplexing, the foundation of the Company, allows the end user in a laboratory to generate multiple laboratory results from a single sample with a single assay. This is important because the Company’s end user customers, which include laboratory professionals performing discovery and research and clinical laboratories performing tests on patients as ordered by physicians and other laboratories, have a fundamental need to perform high quality testing as efficiently as possible. Until the availability of multiplexing technology, the laboratory professional had to perform one assay at a time in a sequential manner, and if additional testing was required on a sample, a second assay would be performed to generate the second result, and so on until all the necessary tests were performed. The Company primarily serves the life sciences industries by marketing products, including our specific testing equipment and assays, to various types of testing laboratories. As of December 31, 2019 , the Company had 82 strategic partners, 55 of which have released commercialized reagent-based products utilizing the Company’s technology. Luminex and these partners have sold approximately 17,000 xMAP-based instruments in laboratories worldwide as of December 31, 2019 , some of which may be retired or otherwise not in use. The Company’s remaining partners are in various stages of development and commercialization of products incorporating the Company’s technology. A primary focus for the Company’s growth is the development and sale of molecular diagnostic assays utilizing the Company’s proprietary MultiCode ® and VERIGENE technologies for use on the Company’s installed base of systems. The Company utilizes a direct sales model for sales of these products, which is intended to take advantage of the Company’s increasing installed base of instruments. Luminex’s assays are primarily focused on multiplexed applications for the human molecular clinical diagnostics market. Luminex’s assays are currently focused on three segments of the molecular diagnostic testing market: infectious disease, personalized medicine and human genetics. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. |
Estimates and Assumptions | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts and results could differ from those estimates, and such differences could be material to the financial statements. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits and highly liquid investments with original maturities of three months or less when purchased. |
Investments | Investments The Company determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near-term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Held-to-maturity securities are stated at amortized cost, which approximates fair value of these investments. Marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. Marketable securities are recorded as either short-term or long-term on the balance sheet based on contractual maturity date. The fair value of all securities is determined by obtaining non-binding market prices from the Company’s third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. In addition, the Company made an equity investment in a private company. The Company does not have majority control of the entity in which the investment was made, but has the ability to exercise significant influence over operating and financial policies; therefore, the Company accounts for this investment using the equity method. The Company's proportionate share of income or loss of approximately 28.4% is recorded in other income (expense), net in the Consolidated Statement of Comprehensive Income. This non-marketable equity investment is recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. The Company periodically reviews this equity investment for other-than-temporary declines in fair value based on the specific identification method and writes down the investment to its fair value when it determines that an other-than-temporary decline has occurred. |
Fair Value Measurements | Fair Value of Financial Instruments The fair values of financial instruments are determined by obtaining non-binding market prices from the Company’s third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, equity-method investments, long-term investments, accounts payable and accrued liabilities. The fair values of these financial instruments were not materially different from their carrying or contract values at December 31, 2019 and 2018 . See Note 6 for further details concerning fair value measurements. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist of short-term and long-term investments and trade receivables. The Company’s short-term investments consist of investments in high credit quality financial institutions, non-government sponsored debt securities and corporate issuers. The Company provides credit, in the normal course of business, to a number of its customers geographically dispersed primarily throughout the U.S. The Company attempts to limit its credit risk by performing ongoing credit evaluations of its customers and maintaining adequate allowances for potential credit losses, but the Company does not require collateral. Thermo Fisher Scientific Inc. accounted for 12% , 14% and 15% of our total revenues in 2019 , 2018 and 2017 , respectively. LabCorp accounted for 15% and 20% of our total revenues in 2018 and 2017 , respectively. No other customer accounted for more than 10% of our total revenues in 2019 , 2018 or 2017 . |
Inventory, Policy [Policy Text Block] | Inventories Inventories, consisting primarily of raw materials and purchased components, are stated at the lower of cost or net realizable value, with cost determined according to the standard cost method, which approximates the first-in, first-out method. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. As a developer and manufacturer of high technology medical equipment, the Company may be exposed to a number of economic and industry factors that could result in portions of inventory becoming either obsolete or in excess of anticipated usage. These factors include, but are not limited to, technological changes in the Company’s markets, ability to meet changing customer requirements, competitive pressures on products and prices, and reliability and replacement of and the availability of key components from suppliers. The Company’s policy is to establish inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon the Company’s assumptions about future demand for products and market conditions. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales or usage, product expiration or end of life dates, estimated current and future market values and new product introductions. Assumptions used in determining the Company’s estimates of future product demand may prove to be incorrect, in which case the provision required for excess and obsolete inventory would have to be adjusted. If inventory is determined to be above the lower of cost or net realizable value, excess or obsolete, the Company would be required to record impairment charges within cost of goods sold at the time of such determination. Although considerable effort is made to ensure the accuracy of forecasts of future product demand, any significant unanticipated changes in demand or expected usage could have a significant negative impact on the value of inventory and the Company’s operating results. When recorded, reserves are intended to reduce the carrying value of inventory to its net realizable value. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are carried at cost less accumulated amounts for amortization and depreciation. Property and equipment are typically amortized or depreciated on a straight-line basis over the useful lives of the assets, which typically range from two to seven years. Leasehold improvements and equipment under capital leases are amortized on a straight-line basis over the shorter of the remaining term of the lease or the estimated useful life of the improvements and equipment. The Company classifies the carrying value of Luminex’s xMAP, ARIES ® and VERIGENE Systems placed within the reagent rental program and the instruments on loan to customers in property and equipment as “Assets on loan/rental.” |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost over the fair value of the assets of the acquired business. In accordance with Accounting Standards Codification (ASC) 350 “Goodwill and Other” (ASC 350), goodwill is reviewed for impairment at least annually at the beginning of the fourth quarter, or more frequently if impairment indicators arise, tested at our sole reporting unit level. Events or circumstances that could trigger an impairment test include, but are not limited to, a significant adverse change in the business climate, significant changes in our use of the acquired assets, significant negative industry or economic trends, significant under-performance relative to operating performance indicators and significant changes in competition. The Company determined that no triggering events occurred during the year ended December 31, 2019 . In 2019 and 2018 , the Company estimated the fair value of the reporting unit using a fair-value-based approach based on the market capitalization. Determining the fair value of goodwill is subjective in nature and often involves the use of estimates and assumptions including, without limitation, use of estimates of future prices and volumes for the Company’s products, capital needs, economic trends and other factors which are inherently difficult to forecast. The Company’s annual test did not result in an impairment charge in 2019 , as the estimated fair value of the reporting unit continued to exceed the carrying value by a significant enough amount such that any reasonably likely change in the assumptions used in the analysis would not cause the carrying value to exceed the estimated fair value for the reporting unit. No goodwill impairments were recorded in 2019 , 2018 or 2017 . Intangible assets are amortized on a straight-line basis over their respective estimated useful lives ranging from 9 to 15 years. Any in-process research and development will be an indefinite-lived intangible asset until completion or abandonment, at which point it will be accounted for as a finite-lived intangible asset or written off if abandoned. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. |
Revenue Recognition, Policy [Policy Text Block] | Performance Obligations: Revenue is generated primarily from the sale of the Company’s products and related services, which are primarily support and maintenance services on the Company’s systems. The Company recognizes product revenue when the customer obtains control of the Company’s product, which typically occurs upon shipment or delivery to the customer depending upon the shipping terms. We treat shipping and handling costs performed after a customer obtains control of the good as a fulfillment cost. Our customers do not typically have any contractual rights of return outside of our warranty provisions. The Company has allowed few returns to date and believes that returns of its products will be minimal in the future. Royalties: For arrangements that include sales-based royalties, including minimum payments, the Company recognizes revenue at the later of: (i) when the related sales occur, or (ii) when the performance obligation, to which some or all of the royalty has been allocated, has been satisfied. This was a change from how the Company treated royalty payments prior to 2018, by recognizing royalty revenue when our strategic partners reported the end-user sales to the Company, and is primarily the basis for our cumulative adjustment, made as of January 1, 2018, to retained earnings of $10.6 million before related tax impacts or $8.1 million net of related tax impacts. Royalty payments are typically received when our strategic partners report the end-user sales to the Company. Reagent Rentals: The Company provides systems and certain other hardware to customers through reagent rental agreements, under which the customers commit to purchasing minimum quantities of assays at a stated price over a defined contract term, which is normally two to three years. Instead of rental payments, the Company recovers the cost of providing the system and other hardware in the amount charged for assays. Revenue is recognized over the defined contract term as assays are shipped. The depreciation costs associated with the system and other hardware are charged to cost of sales on a straight-line basis over the estimated life of the system. The costs to maintain these instruments in the field are charged to cost of sales as incurred. Under the guidance, the Company reclassified the portion of reagent rental revenue associated with the recovery of the cost of providing the system and other hardware in reagent rental agreements from assay revenue to system revenue effective January 1, 2018. This change did not have any impact on top line revenue and the Company has not experienced any material effects to its revenue categorization. Warranties: The Company provides a limited, assurance-type warranty, typically for twelve months from installation for the systems sold to end customers and fifteen months for the systems sold to partners. The Company accrues for the estimated cost of initial product warranties at the time revenue is recognized. While the Company engages in product quality programs and processes, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. While the Company believes that adequate reserve has been made in the consolidated financial statements for product warranties, should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. Warranty expenses are evaluated and adjusted periodically. License Revenues: The Company enters into out-licensing agreements, under which it licenses certain rights to its technology to third parties. These licenses are typically not distinct, as the customer cannot benefit from the license on its own, and do not have significant standalone functionality, but represent single performance obligations together with the sales of our consumables, systems and assays. The terms of these arrangements typically include payment to the Company of non-refundable, up-front license fees and can extend up to twenty years. Each of these payments results in license revenues which are recognized ratably over time and are included in other revenues, except for revenues from royalties on net sales of licensed products, which are classified as royalty revenues. Deferred revenues related to these out-licensing agreements are shown in contract liabilities in Note 18, “Revenue Recognition”. Service Agreements: Revenue from extended service agreements is deferred when payment is received in advance of the performance obligation being satisfied or completed. Luminex provides an integrated service of maintenance and related activities for equipment sold to customers, where the nature of the overall promise is to provide a stand-ready service. As such, the performance obligation is recognized as a series of distinct service periods and the service revenue is recognized ratably over the term of each agreement. The extended service agreements typically range from one to four years and payment is typically received up-front. Reserves for Variable Consideration : Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from discounts and any other allowances that are offered within contracts between the Company and its customers relating to the Company’s sales of its products. These reserves are based on the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as the Company’s historical experience, current contractual requirements, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of each contract. The amount of variable consideration which is included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect net product revenue and earnings in the period when such variances become known. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowance for Doubtful Accounts: |
Cost of Sales, Policy [Policy Text Block] | Product-Related Expenses The Company provides for the estimated cost of initial product warranties at the time revenue is recognized. While the Company engages in product quality programs and processes, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. Shipping and handling costs associated with product sales are included in cost of sales. Advertising costs are charged to operations as incurred. The Company does not have any direct-response advertising. Advertising expenses, which include trade shows and conventions, were approximately $3.5 million , $2.8 million and $2.4 million for 2019 , 2018 and 2017 , respectively, and were included in selling, general and administrative expense in the Consolidated Statements of Comprehensive Income. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development costs are expensed in the period incurred. Nonrefundable advance payments for research and development activities for materials, equipment, facilities and purchased intangible assets that have an alternative future use are deferred and capitalized. In addition, the Company capitalizes certain internally developed products used for evaluation during development projects that also have alternative future uses. These internally developed assets are generally depreciated on a straight-line basis over the useful life of the assets, which range from one to five years. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated in accordance with ASC 830, “Foreign Currency Matters.” The reporting currency for the Company is the U.S. dollar. With the exception of its Canadian subsidiary, whose functional currency is the U.S. dollar, the functional currency of the Company’s foreign subsidiaries is their local currency. Accordingly, assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each balance sheet date. Before translation, the Company re-measures foreign currency denominated assets and liabilities, including inter-company accounts receivable and payable, into the functional currency of the respective entity, resulting in unrealized gains or losses recorded in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income. Revenues and expenses are translated using average exchange rates during the respective period. Foreign currency translation adjustments are accumulated as a component of other comprehensive income as a separate component of stockholders’ equity. Gains and losses arising from transactions denominated in foreign currencies are included in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income and to date have not been material. |
Compensation Related Costs, Policy [Policy Text Block] | Incentive Compensation Management incentive plans are tied to various financial and non-financial performance metrics. Bonus accruals made throughout the year related to the various incentive plans are based on management’s best estimate of the achievement of the specific metrics. Adjustments to the accruals are made on a quarterly basis as forecasts of performance are updated. At year-end, the accruals are adjusted to reflect the actual results achieved. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that those assets will be realized. The Company accounts for uncertain tax positions in accordance with ASC 740, “Income Taxes”, which clarifies the accounting for uncertainty in tax positions. These provisions require recognition of the impact of a tax position in the Company’s financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected as a component of income tax expense. |
Earnings Per Share | Earnings Per Share Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common shares and potential common shares from outstanding stock options, restricted stock units (RSUs) and contingently issuable shares resulting from an award subject to performance or market conditions determined by applying the treasury stock method. In periods with a net loss, potentially dilutive securities composed of incremental common shares issuable upon the exercise of stock options and warrants, and common shares issuable on conversion of preferred stock, would be excluded from historical diluted loss per share because of their anti-dilutive effect. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company accounts for stock-based employee compensation plans under the fair value recognition and measurement provisions of ASC 718 “Stock Compensation” (ASC 718). ASC 718 requires the recognition of compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options, restricted stock units and shares issued under the Company’s employee stock purchase plan. Pursuant to ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. |
BUSINESS COMBINATIONS Business
BUSINESS COMBINATIONS Business Combinations - Pro Forma (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | Net tangible assets assumed as of December 31, 2018 $ 8,922 Intangible assets subject to amortization 30,094 Deferred tax liabilities (3,702 ) Goodwill 32,664 Total purchase price $ 67,978 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Other Investments Not Readily Marketable [Table Text Block] | 2019 2018 Purchased technology rights (net of accumulated amortization of $8,300 and $7,633 in 2019 and 2018, respectively) $ 6,027 $ 6,653 Minority interest and equity method investments 11,501 2,782 Other 1,594 1,963 $ 19,122 $ 11,398 | |
Marketable Securities [Table Text Block] | Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Money Market funds $ 707 $ — $ — $ 707 Total current securities 707 — — 707 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 707 $ — $ — $ 707 | Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Money Market funds $ 704 $ — $ — $ 704 Total current securities 704 — — 704 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 704 $ — $ — $ 704 |
Cost-method Investments, Description [Text Block] | In August 2018, the Company exercised its purchase option on a second private company and acquired 100% of its capital stock in a non-cash transaction involving (i) a prior investment of $2.0 million being applied to the purchase option, (ii) the forgiveness and application of a $2.4 million note and related interest receivable to the purchase option and (iii) a tax impact of $0.1 million . This acquisition was accounted for as an asset acquisition rather than a business combination, as substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, a next generation technology. The Company recorded the $4.3 million asset acquisition as a defensive, in-process research and development (IP R&D) intangible asset. There were no gains or losses recognized as part of this transaction. The Company owns a minority interest in another private company based in the U.S. through its initial investment of $1.0 million in the third quarter of 2012. We have been informed that this private company will be dissolving and ceasing operations in the first quarter of 2020. We received cash representing the majority of our investment in the fourth quarter of 2019 and recorded an impairment of $205,000 in Other income, net in the Consolidated Statements of Comprehensive Income during 2019 based upon these circumstances and communication from this private company. We received the final cash payment for the remainder of this minority interest in the first quarter of 2020. As of December 31, 2019 , this remaining portion is included at cost in other short-term assets on the Company’s Consolidated Balance Sheets as of December 31, 2019 as the Company does not have significant influence over the investee, as the Company owns less than 20% of the voting equity and the investee is not publicly traded. These minority interest investments do not have readily determinable fair values. Therefore, the Company has elected the measurement alternative for its minority interests and the investments are recorded at cost, less any impairment, including changes resulting from observable price changes. The Company regularly evaluates the carrying value of its investment for impairment and whether any events or circumstances are identified that would significantly harm the fair value of the investment. The primary indicators the Company utilizes to identify these events and circumstances are the investee’s ability to remain in business, such as the investee’s liquidity and rate of cash use, and the investee’s ability to secure additional funding and the value of that additional funding. In the event a decline in fair value is less than the investment’s carrying value, the Company will record an impairment charge in Other income, net in the Consolidated Statements of Comprehensive Income. Other than the $205,000 impairment in 2019 discussed above, the Company has not recorded any impairment charges related to these non-marketable investments. | |
Investments and Other Noncurrent Assets [Text Block] | NOTE 3 — INVESTMENTS AND OTHER ASSETS Marketable Securities The Company determines the appropriate classification of any investments in debt and equity securities at the time of purchase and re-evaluates such determinations at each balance sheet date. As of December 31, 2019 , the Company had no short or long-term investments, since those funds were used to pay for acquisitions. Available-for-sale securities consisted of the following as of December 31, 2019 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Money Market funds $ 707 $ — $ — $ 707 Total current securities 707 — — 707 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 707 $ — $ — $ 707 Available-for-sale securities consisted of the following as of December 31, 2018 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Money Market funds $ 704 $ — $ — $ 704 Total current securities 704 — — 704 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 704 $ — $ — $ 704 There were no proceeds from the sales of available-for-sale securities for the years ended December 31, 2019 and December 31, 2018 . Realized gains and losses on sales of investments are determined using the specific identification method and are included in other income (expense) in the Consolidated Statement of Comprehensive Income. There were no available-for-sale debt securities as of December 31, 2019 or December 31, 2018 . Non-Marketable Securities and Other-Than-Temporary Impairment During the year ended December 31, 2018, the Company made a $1.8 million investment in Combinati, a private company. Subsequently, on October 1, 2019, the Company made an additional $7.0 million investment in Combinati, bringing the Company's ownership to approximately 28.4% of the voting interest of Combinati. Effective October 1, 2019, the Company accounted for its investment in Combinati under the equity method, given the Company's significant influence over the investee due to its larger ownership percentage and its seat on the Board of Directors. The Company does not have unilateral decision making power, and therefore will not consolidate the investee. In the fourth quarter of 2019, we remeasured the existing, minority interest investment based on the fair value prior to the additional investment and recorded a gain of approximately $3.2 million in Other income, net in the Consolidated Statements of Comprehensive Income. The minority interest investment in Combinati was reclassified to equity method investments to distinguish it from other minority interest investments that take the fair value alternative. As of December 31, 2019, the carrying value of the Company’s total investment in Combinati was $11.5 million , which exceeded the Company’s share of Combinati’s net assets by $8.2 million and is not amortized. For the year ended December 31, 2019 , the Company recorded the allocable share of Combinati’s net income in its Consolidated Statement of Comprehensive Income and as an adjustment to the invested balance. In August 2018, the Company exercised its purchase option on a second private company and acquired 100% of its capital stock in a non-cash transaction involving (i) a prior investment of $2.0 million being applied to the purchase option, (ii) the forgiveness and application of a $2.4 million note and related interest receivable to the purchase option and (iii) a tax impact of $0.1 million . This acquisition was accounted for as an asset acquisition rather than a business combination, as substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, a next generation technology. The Company recorded the $4.3 million asset acquisition as a defensive, in-process research and development (IP R&D) intangible asset. There were no gains or losses recognized as part of this transaction. The Company owns a minority interest in another private company based in the U.S. through its initial investment of $1.0 million in the third quarter of 2012. We have been informed that this private company will be dissolving and ceasing operations in the first quarter of 2020. We received cash representing the majority of our investment in the fourth quarter of 2019 and recorded an impairment of $205,000 in Other income, net in the Consolidated Statements of Comprehensive Income during 2019 based upon these circumstances and communication from this private company. We received the final cash payment for the remainder of this minority interest in the first quarter of 2020. As of December 31, 2019 , this remaining portion is included at cost in other short-term assets on the Company’s Consolidated Balance Sheets as of December 31, 2019 as the Company does not have significant influence over the investee, as the Company owns less than 20% of the voting equity and the investee is not publicly traded. These minority interest investments do not have readily determinable fair values. Therefore, the Company has elected the measurement alternative for its minority interests and the investments are recorded at cost, less any impairment, including changes resulting from observable price changes. The Company regularly evaluates the carrying value of its investment for impairment and whether any events or circumstances are identified that would significantly harm the fair value of the investment. The primary indicators the Company utilizes to identify these events and circumstances are the investee’s ability to remain in business, such as the investee’s liquidity and rate of cash use, and the investee’s ability to secure additional funding and the value of that additional funding. In the event a decline in fair value is less than the investment’s carrying value, the Company will record an impairment charge in Other income, net in the Consolidated Statements of Comprehensive Income. Other than the $205,000 impairment in 2019 discussed above, the Company has not recorded any impairment charges related to these non-marketable investments. As the inputs utilized for the Company’s periodic impairment assessment are not based on observable market data, the determination of fair value of its investments is classified within Level 3 of the fair value hierarchy. See Note 6 - Fair Value Measurement to our Condensed Consolidated Financial Statements for further information on the fair value hierarchy and the three classification levels. To determine the fair value of these investments, the Company uses all available financial information related to the entities, including information based on recent or pending third-party equity investments in these entities. In certain instances, an investment’s fair value is not estimated as there are no identified events or changes in the circumstances. There have been no unrealized gains or losses related to these Level 3 minority interest investments. Other long-term assets consisted of the following at December 31 (in thousands): 2019 2018 Purchased technology rights (net of accumulated amortization of $8,300 and $7,633 in 2019 and 2018, respectively) $ 6,027 $ 6,653 Minority interest and equity method investments 11,501 2,782 Other 1,594 1,963 $ 19,122 $ 11,398 For the years ended December 31, 2019 and 2018 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $667,000 and $621,000 , respectively. Future amortization expense is estimated to be $572,000 in 2020 , $540,000 in 2021 , $522,000 in 2022 , $505,000 in 2023 , $500,000 in 2024 and $3,388,000 thereafter. | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Marketable Securities The Company determines the appropriate classification of any investments in debt and equity securities at the time of purchase and re-evaluates such determinations at each balance sheet date. As of December 31, 2019 , the Company had no short or long-term investments, since those funds were used to pay for acquisitions. Available-for-sale securities consisted of the following as of December 31, 2019 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Money Market funds $ 707 $ — $ — $ 707 Total current securities 707 — — 707 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 707 $ — $ — $ 707 Available-for-sale securities consisted of the following as of December 31, 2018 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Money Market funds $ 704 $ — $ — $ 704 Total current securities 704 — — 704 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 704 $ — $ — $ 704 There were no proceeds from the sales of available-for-sale securities for the years ended December 31, 2019 and December 31, 2018 . Realized gains and losses on sales of investments are determined using the specific identification method and are included in other income (expense) in the Consolidated Statement of Comprehensive Income. There were no available-for-sale debt securities as of December 31, 2019 or December 31, 2018 . |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | 2019 2018 Accounts receivable $ 56,956 $ 54,239 Less: Allowance for doubtful accounts (1,141 ) (843 ) $ 55,815 $ 53,396 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Balance at December 31, 2016 $ 419 Net increases charged to costs and expenses 1,312 Write-offs of uncollectible accounts (386 ) Balance at December 31, 2017 $ 1,345 Net increases charged to costs and expenses (437 ) Write-offs of uncollectible accounts (65 ) Balance at December 31, 2018 843 Net recoveries charged to costs and expenses 400 Write-offs of uncollectible accounts (102 ) Balance at December 31, 2019 1,141 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | 2019 2018 Parts and supplies $ 45,459 $ 39,873 Work-in-progress 15,532 11,847 Finished goods 16,093 11,530 $ 77,084 $ 63,250 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | Fair Value Measurements as of December 31, 2019 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 707 $ — $ — $ 707 Minority interest investments - short-term $ — $ — $ 22 $ 22 Equity investment $ — $ — $ 11,501 $ 11,501 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | 2019 2018 Laboratory equipment $ 60,486 $ 58,330 Leasehold improvements 43,471 39,289 Computer equipment 3,916 3,322 Purchased software 22,621 22,141 Furniture and fixtures 5,924 5,874 Assets on loan/rental 28,946 24,259 Capital lease equipment — 846 165,364 154,061 Less: Accumulated depreciation (99,849 ) (87,773 ) $ 65,515 $ 66,288 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Finite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2018 Balance as of December 31, 2017 $ 81,385 $ 19,097 $ 5,664 $ 12,982 $ 119,128 Flow cytometry acquisition 17,084 4,722 4,991 6,703 33,500 Asset acquisition — — — 4,328 4,328 Balance as of December 31, 2018 98,469 23,819 10,655 24,013 156,956 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2017 (34,414 ) (7,037 ) (1,692 ) — (43,143 ) Amortization expense (6,087 ) (1,999 ) (579 ) — (8,665 ) Accumulated amortization balance as of December 31, 2018 (40,501 ) (9,036 ) (2,271 ) — (51,808 ) Net balance as of December 31, 2018 $ 57,968 $ 14,783 $ 8,384 $ 24,013 $ 105,148 Weighted average life (in years) 11 10 10 2019 Balance as of December 31, 2018 $ 98,469 $ 23,819 $ 10,655 $ 24,013 $ 156,956 Flow cytometry acquisition purchase price allocation adjustments (116 ) (428 ) 1,154 (4,016 ) (3,406 ) Balance as of December 31, 2019 98,353 23,391 11,809 19,997 153,550 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2018 (40,501 ) (9,036 ) (2,271 ) — (51,808 ) Amortization expense (7,784 ) (2,428 ) (1,194 ) — (11,406 ) Accumulated amortization balance as of December 31, 2019 (48,285 ) (11,464 ) (3,465 ) — (63,214 ) Net balance as of December 31, 2019 $ 50,068 $ 11,927 $ 8,344 $ 19,997 $ 90,336 Weighted average life (in years) 11 10 10 |
Estimated Future Amortization Expense Related to Intangible Assets | 2020 $ 11,406 2021 11,048 2022 9,801 2023 9,452 2024 9,452 Thereafter 19,180 $ 70,339 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | 2019 2018 Compensation and employee benefits $ 17,011 $ 18,086 Dividends payable 4,104 2,703 Income and other taxes 1,538 1,014 Warranty costs 1,641 1,901 Royalties payable 1,335 1,373 Current operating lease liabilities 5,053 — Other 1,190 1,695 $ 31,872 $ 26,772 |
Schedule of Product Warranty Liability [Table Text Block] | Accrued warranty costs at December 31, 2016 $ 675 Warranty services provided (2,049 ) Accrual for warranty costs 2,682 Accrued warranty costs at December 31, 2017 1,308 Warranty services provided (2,159 ) Accrual for warranty costs 2,752 Accrued warranty costs at December 31, 2018 1,901 Warranty services provided (2,868 ) Accrual for warranty costs 2,608 Accrued warranty costs at December 31, 2019 $ 1,641 |
INCOME TAXES Tables (Tables)
INCOME TAXES Tables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 2019 2018 2017 Domestic $ (31,314 ) $ 7,242 $ 18,436 Foreign 21,812 21,069 18,713 Total $ (9,502 ) $ 28,311 $ 37,149 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2019 2018 2017 Current: Federal $ 821 $ (3,318 ) $ 3,149 Foreign 951 515 295 State (163 ) 600 883 Total current expense (benefit) $ 1,609 $ (2,203 ) $ 4,327 Deferred: Federal (10,179 ) 6,351 14,970 Foreign 4,597 5,271 (9,267 ) State (1,691 ) 384 (2,304 ) Total deferred (benefit) expense (7,273 ) 12,006 3,399 Total (benefit) provision for income taxes $ (5,664 ) $ 9,803 $ 7,726 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2019 2018 2017 Statutory tax rate 21.0 % 21.0 % 35.0 % State taxes, net of federal benefit 9.6 % 3.0 % (1.4 )% Permanent items (1.6 )% 2.6 % 0.5 % Effect of foreign operations (11.7 )% 3.4 % (5.7 )% Research and incentive tax credit generated 18.9 % (8.7 )% (4.6 )% Valuation allowance 0.8 % 0.4 % (37.6 )% Income tax reserves 67.3 % 24.7 % 0.5 % Remeasurement U.S. deferreds 0.0 % (0.3 )% 7.3 % Transition tax (5.3 )% (16.6 )% 18.1 % Foreign earnings withholding tax 6.6 % (7.9 )% 8.6 % Global intangible low-taxed income (44.4 )% 5.7 % 0.0 % Other measurement period Tax Act adjustments 0.0 % 2.6 % 0.0 % Canadian income tax audit 0.0 % 4.8 % 0.0 % Other (1.0 )% (0.1 )% 0.1 % 60.2 % 34.6 % 20.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2019 2018 Deferred tax assets: Accrued liabilities and other $ 4,577 $ 5,646 Net operating loss and credit carryforwards 52,141 54,167 Deferred revenue 1,023 — Leases 5,023 — Stock compensation and other 7,791 6,525 Gross deferred tax assets 70,555 66,338 Valuation allowance (17,906 ) (21,354 ) Total deferred tax assets $ 52,649 $ 44,984 Deferred tax liabilities: Accrued liabilities and other $ (1,287 ) $ (2,204 ) Deferred revenue — (358 ) Depreciation and amortization (18,443 ) (20,952 ) Leases (4,550 ) — Equity method investment (667 ) — Total deferred tax liabilities (24,947 ) (23,514 ) Net deferred tax assets $ 27,702 $ 21,470 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | 2019 2018 Balance at beginning of year $ 9,721 $ 2,777 Additions based on tax positions related to the current year 342 749 Additions for tax positions of prior years 398 6,605 Reductions for tax positions of prior years (7,038 ) (410 ) Balance at end of year $ 3,423 $ 9,721 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Year Ended December 31, 2019 2018 2017 Basic: Net (loss) income $ (3,838 ) $ 18,508 $ 29,423 Less: allocation to participating securities 65 (312 ) (529 ) Net (loss) income attributable to common stockholders $ (3,773 ) $ 18,196 $ 28,894 Weighted average common stock outstanding 44,148 43,727 43,173 Net (loss) income per share attributable to common stockholders $ (0.09 ) $ 0.42 $ 0.67 Diluted: Net (loss) income $ (3,838 ) $ 18,508 $ 29,423 Less: allocation to participating securities 63 (311 ) (529 ) Net (loss) income attributable to common stockholders $ (3,775 ) $ 18,197 $ 28,894 Weighted average common stock outstanding 44,148 43,727 43,173 Effect of dilutive securities: stock options and awards — 564 127 Weighted-average shares used in computing net (loss) income per share 44,148 44,291 43,300 Net (loss) income per share attributable to common stockholders $ (0.09 ) $ 0.41 $ 0.67 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2019 2018 2017 Dividend yield 0.9 % 1.2 % 1.3 % Expected volatility 0.4 0.4 0.5 Risk-free rate of return 2.6 % 2.7 % 2.0 % Expected life of a 10 year contractual term option 7 years 7 years 7 years Expected life of a 7 year contractual term option 4.88 years 4.88 years 4.87 years Weighted average fair value at grant date $ 7.69 $ 8.23 $ 6.66 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | 2019 2018 2017 Assumptions: Risk-free interest rates 2.55 % 2.1 % 1.07 % Expected life 0.5 years 0.5 years 0.5 years Expected volatility 0.35 0.44 0.45 Dividend yield 0.942 % 1.2 % 1.3 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Operating Leases 2020 $ 6,429 2021 6,225 2022 4,672 2023 4,007 2024 2,967 Thereafter 932 Total lease payments 25,232 Less: imputed interest (2,997 ) Lease liabilities at December 31, 2019 $ 22,235 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Total consideration transferred | $ 75,000 | |
Cash paid to acquire the business | 69,900 | |
Transactions recognized separately from preliminary purchase price allocation | $ 5,100 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets | $ 8,922 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 30,094 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | (3,702) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 32,664 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 67,978 |
INVESTMENTS Details (Details)
INVESTMENTS Details (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Document Period End Date | Dec. 31, 2019 | |
Other Long-term Investments | $ 11,501 | $ 2,782 |
Prepaid Expense and Other Assets, Noncurrent | 1,594 | 1,963 |
Other Assets, Noncurrent | 19,122 | 11,398 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Net | $ 6,027 | $ 6,653 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | ||||
Accounts Receivable, Gross, Current | $ 56,956 | $ 54,239 | ||
Allowance for Doubtful Accounts Receivable | (1,141) | (843) | $ (1,345) | $ (419) |
Allowance for Doubtful Accounts Receivable, Period Increase (Decrease) | (400) | (437) | 1,312 | |
Allowance for Doubtful Accounts Receivable, Write-offs | (102) | (65) | $ (386) | |
Accounts Receivable, Net, Current | $ 55,815 | $ 53,396 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory, Raw Materials and Purchased Parts, Net of Reserves | $ 45,459 | $ 39,873 |
Inventory, Work in Process, Net of Reserves | 15,532 | 11,847 |
Inventory, Finished Goods, Net of Reserves | 16,093 | 11,530 |
Inventory, Net | $ 77,084 | $ 63,250 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 707 | $ 704 |
Cost Method Investments, Fair Value Disclosure | 22 | 2,782 |
Equity Method Investments, Fair Value Disclosure | 11,501 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 707 | 704 |
Cost Method Investments, Fair Value Disclosure | 0 | 0 |
Equity Method Investments, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Cost Method Investments, Fair Value Disclosure | 0 | 0 |
Equity Method Investments, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Cost Method Investments, Fair Value Disclosure | 22 | $ 2,782 |
Equity Method Investments, Fair Value Disclosure | $ 11,501 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Property, Plant and Equipment, Gross | $ 165,364 | $ 154,061 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (99,849) | (87,773) | |
Depreciation | 16,500 | 14,400 | $ 13,200 |
Property, Plant and Equipment, Net | $ 65,515 | $ 66,288 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 118,145 | $ 118,127 | $ 85,481 |
Goodwill, Acquired During Period | $ 18 | $ 32,646 |
INTANGIBLE ASSETS (Detail)
INTANGIBLE ASSETS (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (51,808) | $ (63,214) | $ (51,808) | $ (43,143) | |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 24,013 | 19,997 | 24,013 | 12,982 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 19,180 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 9,801 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 11,048 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 11,406 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 9,452 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 9,452 | ||||
Intangible Assets, Net (Excluding Goodwill) | 105,148 | 90,336 | 105,148 | ||
Intangible Assets, Gross (Excluding Goodwill) | 156,956 | 153,550 | 156,956 | 119,128 | |
Indefinite-lived Intangible Assets, Purchase Accounting Adjustments | (4,016) | ||||
Indefinite-lived Intangible Assets Acquired | 6,703 | $ 4,328 | |||
Amortization of Intangible Assets | (11,407) | (8,665) | (8,854) | ||
Technology-Based Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | (40,501) | (48,285) | (40,501) | (34,414) | |
Finite-Lived Intangible Assets, Gross | 98,469 | 98,353 | 98,469 | 81,385 | |
Finite-Lived Intangible Assets, Net | 57,968 | $ 50,068 | $ 57,968 | ||
Finite-Lived Intangible Asset, Useful Life | 11 years | 11 years | |||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | $ (116) | ||||
Finite-lived Intangible Assets Acquired | 17,084 | ||||
Amortization of Intangible Assets | (7,784) | $ (6,087) | |||
Customer-Related Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | (9,036) | (11,464) | (9,036) | (7,037) | |
Finite-Lived Intangible Assets, Gross | 23,819 | 23,391 | 23,819 | 19,097 | |
Finite-Lived Intangible Assets, Net | 14,783 | $ 11,927 | $ 14,783 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | |||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | $ (428) | ||||
Finite-lived Intangible Assets Acquired | 4,722 | ||||
Amortization of Intangible Assets | (2,428) | $ (1,999) | |||
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | (2,271) | (3,465) | (2,271) | (1,692) | |
Finite-Lived Intangible Assets, Gross | 10,655 | 11,809 | 10,655 | $ 5,664 | |
Finite-Lived Intangible Assets, Net | 8,384 | $ 8,344 | $ 8,384 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | |||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | $ 1,154 | ||||
Finite-lived Intangible Assets Acquired | $ 4,991 | ||||
Amortization of Intangible Assets | $ (1,194) | $ (579) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME Details (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,380) | $ (1,127) | |
Other Comprehensive Income (Loss), Net of Tax | $ (253) | $ (502) | $ 1,067 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Payables and Accruals [Abstract] | ||||
Employee-related Liabilities, Current | $ 17,011 | $ 18,086 | ||
Taxes Payable, Current | 1,538 | 1,014 | ||
Product Warranty Accrual, Current | 1,641 | 1,901 | $ 1,308 | $ 675 |
Accrued Royalties, Current | 1,335 | 1,373 | ||
Operating Lease, Liability, Current | 5,053 | 0 | ||
Standard and Extended Product Warranty Accrual, Decrease for Payments | (2,868) | (2,159) | (2,049) | |
Standard and Extended Product Warranty Accrual, Increase for Warranties Issued | 2,608 | 2,752 | $ 2,682 | |
Dividends Payable, Current | 4,104 | 2,703 | ||
Other Accrued Liabilities, Current | 1,190 | 1,695 | ||
Accrued Liabilities, Current | $ 31,872 | $ 26,772 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | $ 4,577 | $ 5,646 | |
Deferred Tax Assets, Operating Loss Carryforwards | 52,141 | 54,167 | |
Deferred Tax Assets, Deferred Income | 1,023 | 0 | |
Deferred Tax Assets, Tax Deferred Expense, Other | 0 | 0 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Other | 5,023 | 0 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Other | 7,791 | 6,525 | |
Deferred Tax Assets, Gross | 70,555 | 66,338 | |
Deferred Tax Assets, Valuation Allowance | (17,906) | (21,354) | |
Deferred Tax Assets, Net of Valuation Allowance | 52,649 | 44,984 | |
Deferred Tax Liabilities, Other | (1,287) | (2,204) | |
Deferred Tax Liabilities, Tax Deferred Income | 0 | (358) | |
Deferred Tax Liabilities, Deferred Expense | (18,443) | (20,952) | |
Deferred Tax Liabilities, Leasing Arrangements | (4,550) | 0 | |
Deferred Tax Liabilities, Investment in Noncontrolled Affiliates | (667) | 0 | |
Deferred Tax Liabilities, Gross | (24,947) | (23,514) | |
Unrecognized Tax Benefits | 9,721 | 2,777 | |
Unrecognized Tax Benefits | 3,423 | 9,721 | $ 2,777 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 342 | 749 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 398 | 6,605 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (7,038) | (410) | |
Current Federal Tax Expense (Benefit) | 821 | (3,318) | 3,149 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (31,314) | $ 7,242 | $ 18,436 |
Effective tax rate | 60.20% | 34.60% | 20.80% |
U.S. federal statutory tax rate | 21.00% | 21.00% | 35.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 9.60% | 3.00% | (1.40%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | (1.60%) | 2.60% | 0.50% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (11.70%) | 3.40% | (5.70%) |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent | 18.90% | (8.70%) | (4.60%) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 0.80% | 0.40% | (37.60%) |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 67.30% | 24.70% | 0.50% |
Effective Income Tax Rate Reconciliation, Deduction, Other, Percent | 6.60% | (7.90%) | 8.60% |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | (44.40%) | 5.70% | 0.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 2.60% | 0.00% |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | (5.30%) | (16.60%) | 18.10% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.00% | (0.30%) | 7.30% |
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Percent | 0.00% | 4.80% | 0.00% |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | (1.00%) | (0.10%) | 0.10% |
Provision for income taxes | $ (5,664) | $ 9,803 | $ 7,726 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 21,812 | 21,069 | 18,713 |
Income (Loss) Attributable to Parent, before Tax | (9,502) | 28,311 | 37,149 |
Current Foreign Tax Expense (Benefit) | 951 | 515 | 295 |
Current State and Local Tax Expense (Benefit) | (163) | 600 | 883 |
Current Income Tax Expense (Benefit) | 1,609 | (2,203) | 4,327 |
Deferred Federal Income Tax Expense (Benefit) | (10,179) | 6,351 | 14,970 |
Deferred Foreign Income Tax Expense (Benefit) | 4,597 | 5,271 | (9,267) |
Deferred State and Local Income Tax Expense (Benefit) | (1,691) | 384 | (2,304) |
Deferred Income Tax Expense (Benefit) | (7,273) | 12,006 | $ 3,399 |
Deferred Tax Assets, Net | $ 27,702 | $ 21,470 |
EARNINGS PER SHARE Details (Det
EARNINGS PER SHARE Details (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | $ 65 | $ (312) | $ (529) | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (3,773) | $ 18,196 | $ 28,894 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,271,248 | 619,113 | 2,182,404 | ||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (3,775) | $ 18,197 | $ 28,894 | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 44,148,000 | 43,727,000 | 43,173,000 | ||||||||
Earnings Per Share, Basic | $ 0.08 | $ (0.12) | $ (0.11) | $ 0.07 | $ (0.05) | $ 0.04 | $ 0.13 | $ 0.30 | $ (0.09) | $ 0.42 | $ 0.67 |
Net Income (Loss) Attributable to Parent | $ 3,383 | $ (5,250) | $ (4,931) | $ 2,960 | $ (2,295) | $ 1,737 | $ 5,669 | $ 13,397 | $ (3,838) | $ 18,508 | $ 29,423 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted | $ 63 | $ (311) | $ (529) | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 564,000 | 127,000 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 44,148,000 | 44,291,000 | 43,300,000 | ||||||||
Earnings Per Share, Diluted | $ 0.07 | $ (0.12) | $ (0.11) | $ 0.07 | $ (0.05) | $ 0.04 | $ 0.13 | $ 0.30 | $ (0.09) | $ 0.41 | $ 0.67 |
STOCKHOLDERS' EQUITY Details (D
STOCKHOLDERS' EQUITY Details (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Document Period End Date | Dec. 31, 2019 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 8,349,808 | 8,925,957 | |
Allocated Share-based Compensation Expense | $ 8,200,000 | $ 6,200,000 | $ 7,200,000 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | 0 | ||
Proceeds from Stock Options Exercised | 1,700,000 | 2,800,000 | 2,800,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 400,000 | 1,300,000 | 700,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 6,500,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 17,400,000 | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 19,000 | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||
Defined Contribution Plan, Administrative Expense | $ 5,100,000 | $ 4,000,000 | $ 3,800,000 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 631,553 | 518,111 | 434,400 |
Stock Issued During Period, Value, Employee Stock Ownership Plan | $ 700,000 | $ 600,000 | $ 500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.90% | 1.20% | 1.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 40.00% | 40.00% | 50.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.60% | 2.70% | 2.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years | 7 years | 7 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 10 months 17 days | 4 years 10 months 17 days | 4 years 10 months 13 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.69 | $ 8.23 | $ 6.66 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,800,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 522,000 | 468,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 25 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 120,000 | 95,127 | 104,237 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 21.01 | $ 21.98 | $ 18.04 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 24.43 | $ 26.39 | $ 20.80 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (45,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (21,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 0 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 8,240,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 6,000,000 | $ 6,700,000 | $ 8,800,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 4 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 12,088,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 1 year 3 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 11,927,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 515,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 356,000 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 810,000 | 724,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 22.28 | $ 20.27 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 414,000 | 387,436 | 369,715 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 20.04 | $ 20.33 | $ 18.04 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 24.43 | $ 29.33 | $ 20.80 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 24.07 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (261,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 19.67 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (67,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 21.74 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 11,900,000 | $ 12,700,000 | $ 12,700,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 14 days | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 9,380,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,793,000 | 3,323,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 20.17 | $ 19.05 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 1 month 17 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 12,636,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 976,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 24.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (95,000) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 17.85 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (411,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 21.74 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.942% | 1.20% | 1.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 35.00% | 44.00% | 45.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.55% | 2.10% | 1.07% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 months | 6 months | 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 1 month 9 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 12,593,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,746,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 20.13 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,927,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 18.31 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 4 months 9 days | ||
Lease, Cost | $ 9,434 | $ 7,032 | $ 6,583 |
Purchase Obligation | 36,700 | ||
Recorded Unconditional Purchase Obligation | 800 | $ 2,200 | $ 1,800 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 6,429 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 6,225 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 4,672 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 4,007 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 2,967 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 932 | ||
Operating Leases, Future Minimum Payments Due | 25,232 | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.75% | ||
Unrecorded Unconditional Purchase Obligation, Imputed Interest | $ (2,997) |