Novanta (NOVT) 10-Q 8 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Trading Symbol	NOVT
Entity Registrant Name	NOVANTA INC.
Entity Central Index Key	0001076930
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		35,690,210
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-35083
Entity Tax Identification Number	98-0110412
Entity Address, Address Line One	125 Middlesex Turnpike
Entity Address, City or Town	Bedford
Entity Address, State or Province	MA
Entity Address, Country	US
Entity Address, Postal Zip Code	01730
City Area Code	781
Local Phone Number	266-5700
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	A3
Entity Interactive Data Current	Yes
Security Exchange Name	NASDAQ
Title of 12(b) Security	Common shares, no par value

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 84,580	$ 117,393
Accounts receivable, net of allowance of $741 and $556, respectively	144,633	115,617
Inventories	162,807	125,657
Prepaid income taxes and income taxes receivable	994	1,997
Prepaid expenses and other current assets	14,721	13,161
Total current assets	407,735	373,825
Property, plant and equipment, net	95,030	87,439
Operating lease assets	43,520	48,338
Deferred tax assets	11,538	12,206
Other assets	5,543	5,586
Intangible assets, net	179,113	220,989
Goodwill	465,052	479,500
Total assets	1,207,531	1,227,883
Current liabilities
Current portion of long-term debt	4,366	5,097
Accounts payable	79,577	68,514
Income taxes payable	7,822	4,514
Current portion of operating lease liabilities	7,663	7,334
Accrued expenses and other current liabilities	58,629	98,479
Total current liabilities	158,057	183,938
Long-term debt	438,447	429,361
Operating lease liabilities	40,907	45,700
Deferred tax liabilities	16,519	33,738
Income taxes payable	5,153	4,217
Other liabilities	6,246	9,638
Total liabilities	665,329	706,592
Commitments and contingencies (Note 15)
Stockholders’ equity:
Preferred shares, no par value; Authorized shares: 7,000; No shares issued and outstanding
Common shares, no par value; Authorized shares: unlimited; Issued and outstanding: 35,689 and 35,601, respectively	423,856	423,856
Additional paid-in capital	51,951	53,768
Retained earnings	115,322	56,533
Accumulated other comprehensive loss	(48,927)	(12,866)
Total stockholders' equity	542,202	521,291
Total liabilities and stockholders’ equity	$ 1,207,531	$ 1,227,883

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 741	$ 556
Preferred shares, no par value	$ 0	$ 0
Preferred shares, Authorized	7,000,000	7,000,000
Preferred shares, Issued	0	0
Preferred shares, outstanding	0	0
Common shares, Authorized	Unlimited	Unlimited
Common shares, no par value	$ 0	$ 0
Common shares, Issued	35,689,000	35,601,000
Common shares, outstanding	35,689,000	35,601,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Income Statement [Abstract]
Revenue	$ 222,958	$ 177,726	$ 642,530	$ 507,833
Cost of revenue	124,550	101,428	358,601	290,389
Gross profit	98,408	76,298	283,929	217,444
Operating expenses:
Research and development and engineering	21,349	17,468	63,866	53,104
Selling, general and administrative	40,301	31,296	120,191	94,189
Amortization of purchased intangible assets	6,472	4,139	20,987	11,300
Restructuring, acquisition, and related costs	1,625	8,120	2,650	16,485
Total operating expenses	69,747	61,023	207,694	175,078
Operating income	28,661	15,275	76,235	42,366
Interest income (expense), net	(4,062)	(1,710)	(9,928)	(4,496)
Foreign exchange transaction gains (losses), net	2,086	34	2,307	(299)
Other income (expense), net	87	(71)	(390)	(238)
Income before income taxes	26,772	13,528	68,224	37,333
Income tax provision (benefit)	4,282	(75)	9,435	756
Consolidated net income	$ 22,490	$ 13,603	$ 58,789	$ 36,577
Earnings per common share (Note 5):
Basic	$ 0.63	$ 0.38	$ 1.65	$ 1.03
Diluted	$ 0.63	$ 0.38	$ 1.64	$ 1.02
Weighted average common shares outstanding—basic	35,729	35,447	35,625	35,366
Weighted average common shares outstanding—diluted	35,928	35,764	35,881	35,771

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Statement Of Income And Comprehensive Income [Abstract]
Consolidated net income		$ 22,490	$ 13,603	$ 58,789	$ 36,577
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	[1]	(18,972)	(3,248)	(37,672)	(3,602)
Pension liability adjustments, net of tax	[2]	710	448	1,611	832
Total other comprehensive income (loss)		(18,262)	(2,800)	(36,061)	(2,770)
Total consolidated comprehensive income		$ 4,228	$ 10,803	$ 22,728	$ 33,807
[1] The tax effect on this component of comprehensive income (loss) was nominal for all periods presented. The tax effect on this component of comprehensive income (loss) was nominal for all periods presented. See Note 4 to the Consolidated Financial Statements for the total amount of pension liability adjustments reclassified out of accumulated other comprehensive income (loss).

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2020	$ 476,809	$ 423,856	$ 58,992	$ 6,202	$ (12,241)
Balance (in shares) at Dec. 31, 2020		35,163
Consolidated net income	36,577			36,577
Common shares issued under stock plans (in shares)		658
Common shares withheld for taxes on vested stock awards	(30,672)		(30,672)
Common shares withheld for taxes on vested stock awards (in shares)		(221)
Share-based compensation	20,169		20,169
Other comprehensive income (loss), net of tax	(2,770)				(2,770)
Balance at Oct. 01, 2021	500,113	$ 423,856	48,489	42,779	(15,011)
Balance (in shares) at Oct. 01, 2021		35,600
Balance at Jul. 02, 2021	493,064	$ 423,856	52,243	29,176	(12,211)
Balance (in shares) at Jul. 02, 2021		35,489
Consolidated net income	13,603			13,603
Common shares issued under stock plans (in shares)		199
Common shares withheld for taxes on vested stock awards	(12,244)		(12,244)
Common shares withheld for taxes on vested stock awards (in shares)		(88)
Share-based compensation	8,490		8,490
Other comprehensive income (loss), net of tax	(2,800)				(2,800)
Balance at Oct. 01, 2021	500,113	$ 423,856	48,489	42,779	(15,011)
Balance (in shares) at Oct. 01, 2021		35,600
Balance at Dec. 31, 2021	521,291	$ 423,856	53,768	56,533	(12,866)
Balance (in shares) at Dec. 31, 2021		35,601
Consolidated net income	58,789			58,789
Common shares issued under stock plans (in shares)		238
Common shares withheld for taxes on vested stock awards	(9,626)		(9,626)
Common shares withheld for taxes on vested stock awards (in shares)		(66)
Repurchases of common shares	(10,000)		(10,000)
Repurchases of common shares (in shares)		(84)
Share-based compensation	17,809		17,809
Other comprehensive income (loss), net of tax	(36,061)				(36,061)
Balance at Sep. 30, 2022	542,202	$ 423,856	51,951	115,322	(48,927)
Balance (in shares) at Sep. 30, 2022		35,689
Balance at Jul. 01, 2022	532,169	$ 423,856	46,146	92,832	(30,665)
Balance (in shares) at Jul. 01, 2022		35,623
Consolidated net income	22,490			22,490
Common shares issued under stock plans (in shares)		67
Common shares withheld for taxes on vested stock awards	(149)		(149)
Common shares withheld for taxes on vested stock awards (in shares)		(1)
Share-based compensation	5,954		5,954
Other comprehensive income (loss), net of tax	(18,262)				(18,262)
Balance at Sep. 30, 2022	$ 542,202	$ 423,856	$ 51,951	$ 115,322	$ (48,927)
Balance (in shares) at Sep. 30, 2022		35,689

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021
Cash flows from operating activities:
Consolidated net income	$ 58,789	$ 36,577
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	40,999	30,613
Provision for inventory excess and obsolescence	1,940	3,187
Share-based compensation	17,809	20,169
Deferred income taxes	(14,628)	(3,064)
Inventory acquisition fair value adjustments		280
Write-off of unamortized deferred financing costs	624
Other	(152)	934
Changes in assets and liabilities which (used)/provided cash, excluding effects from business acquisitions:
Accounts receivable	(34,444)	(21,458)
Inventories	(46,552)	(11,943)
Prepaid income taxes, income taxes receivable, prepaid expenses and other current assets	(2,041)	(7,043)
Accounts payable, income taxes payable, accrued expenses and other current liabilities	29,393	19,511
Other non-current assets and liabilities	(1,570)	(1,851)
Net cash provided by operating activities	50,167	65,912
Cash flows from investing activities:
Cash paid for business acquisitions, net of working capital adjustments	(21,565)	(285,181)
Purchases of property, plant and equipment	(15,385)	(14,759)
Payment of contingent consideration related to acquisition of technology assets	(1,470)	(2,200)
Other investing activities	137
Net cash used in investing activities	(38,283)	(302,140)
Cash flows from financing activities:
Borrowings under revolving credit facilities	69,941	280,000
Repayments under term loan and revolving credit facilities	(37,791)	(24,036)
Payments of debt issuance costs	(2,492)
Payments of withholding taxes from share-based awards	(9,626)	(30,672)
Repurchases of common shares	(10,000)
Payments of contingent consideration related to acquisitions	(46,254)	(1,836)
Purchase of a building under finance lease		(8,743)
Other financing activities	(447)	(423)
Net cash provided by (used in) financing activities	(36,669)	214,290
Effect of exchange rates on cash and cash equivalents	(8,028)	(721)
Increase (decrease) in cash and cash equivalents	(32,813)	(22,659)
Cash and cash equivalents, beginning of the period	117,393	125,054
Cash and cash equivalents, end of the period	84,580	102,395
Supplemental disclosure of cash flow information:
Cash paid for interest	8,962	3,679
Cash paid for income taxes	17,102	9,231
Income tax refunds received	$ 164	$ 1,201

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation Novanta Inc. (together with its subsidiaries, “Novanta” or the “Company”) is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers (“OEMs”) a competitive advantage. Novanta combines deep proprietary technology expertise and competencies in photonics, vision and precision motion with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to the customers’ demanding applications. The accompanying unaudited interim consolidated financial statements have been prepared by the Company in United States (“U.S.”) dollars and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”), the instructions to Form 10-Q and the provisions of Regulation S-X pertaining to interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted. The interim consolidated financial statements and notes included in this report should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, these interim consolidated financial statements include all adjustments and accruals of a normal and recurring nature necessary to fairly state the results of the interim periods presented. The results for interim periods are not necessarily indicative of results to be expected for the full year or for any future periods. The Company’s unaudited interim consolidated financial statements are prepared for each quarterly period ending on the Friday closest to the end of the calendar quarter, with the exception of the fourth quarter which always ends on December 31. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Estimates and assumptions are reviewed on an on-going basis and the effects of revisions are reflected in the period in which such revisions are deemed to be necessary. The Company evaluates its estimates based on historical experience, current conditions, and various other assumptions that it believes are reasonable under the circumstances. Actual results could differ significantly from these estimates. Recent Accounting Pronouncements The following table provides a brief description of recent Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Upon issuance. Adoption of ASU 2020-04 is elective. In March 2022, the Company amended the Third Amended and Restated Credit Agreement and replaced LIBOR with SOFR as the new reference rate for U.S. dollar borrowings. The ASU did not have any impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires that entities recognize and measure contract assets and liabilities acquired in a business combination in accordance with ASC 606, “Revenue from Contracts with Customers”. ASU 2021-08 also applies to contract assets or liabilities from other contracts to which the provisions of ASC 606 apply. The amendments in ASU 2021-08 do not affect the accounting for other assets or liabilities that may arise from revenue contracts with customers in accordance with ASC 606, such as refund liabilities, or in a business combination, such as customer-related intangible assets and contract-based intangible assets. January 1, 2023. Early adoption is permitted. The Company early adopted ASU 2021-08 as of January 1, 2022. The adoption of ASU 2021-08 did not have any material impact on the Company’s consolidated financial statements.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2022
Revenue From Contract With Customer [Abstract]
Revenue	2. Revenue The Company recognizes revenue when control of promised goods or services is transferred to customers. The transfer of control generally occurs upon shipment when title and risk of loss pass to the customer. The vast majority of the Company’s revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for such products, which is generally at contractually stated prices. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Performance Obligations Substantially all of the Company’s revenue is recognized at a point in time, upon shipment, rather than over time. At the request of its customers, the Company may perform professional services, generally for the maintenance and repair of products previously sold to those customers and for engineering services. Professional services for the maintenance and repair of products are typically short in duration, mostly less than one month , and generally involve a single distinct performance obligation. The related revenue is recognized at a point in time when control transfers to the customer upon completion of professional services. The consideration expected to be received in exchange for such services is typically the contractually stated amount. Certain engineering services are longer in duration and the related revenue is recognized over time. As the Company’s right to payment from a customer is based on the value of engineering services performed, the Company recognizes revenue based on the corresponding value to the customer from the Company’s performance completed to date. Revenue from engineering services aggregated to less than 3 % of the Company’s consolidated revenue during the nine months ended September 30, 2022 and October 1, 2021. The Company occasionally sells separately priced non-standard/extended warranty services or preventative maintenance plans with the sale of products. The transfer of control over the service plans is over time. The Company recognizes the related revenue ratably over the terms of the service plans. The transaction price of a contract is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using the expected cost plus a margin. Shipping & Handling Costs The Company accounts for shipping and handling activities that occur after the transfer of control over the related goods as fulfillment activities rather than performance obligations. Shipping and handling fees charged to customers are recognized as revenue and the related costs are recorded in cost of revenue at the time of transfer of control. Warranties The standard warranty periods for the Company’s products are typically 12 months to 36 months . The Company recognizes estimated liabilities associated with standard warranty periods for its products in accordance with the provisions of ASC 450, “Contingencies,” as the Company has the ability to ascertain the likelihood of the liabilities and can reasonably estimate the amount of the liabilities. A provision for the estimated cost related to standard warranties is recorded as cost of revenue at the time revenue is recognized. The Company’s estimate of the costs to service the warranty obligations is based on historical experience and expectations of future conditions. To the extent that the Company’s experience in warranty claims or costs associated with servicing those claims differ from the original estimates, revisions to the estimated warranty liabilities are recorded at that time, with offsetting adjustments to cost of revenue. Practical Expedients and Exemptions The Company expenses incremental direct costs of obtaining a contract when incurred because the expected amortization period is one year or less. These costs are recorded within selling, general and administrative expenses in the consolidated statement of operations. The Company does not adjust the promised amount of consideration for the effects of a financing component because the transfer of a promised good to a customer and the customer’s payment for that good are typically one year or less. The Company does not disclose the value of the r emaining performance obligation for contracts with an original expected length of one year or less. Contract Liabilities Contract liabilities consist of deferred revenue and advance payments from customers, including amounts that are refundable. These contract liabilities are classified as either current or long-term liabilities in the consolidated balance sheet based on the timing of when the Company expects to recognize the related revenue. As of September 30, 2022 and December 31, 2021, contract liabilities were $ 6.9 million and $ 7.3 million, respectively, and are included in accrued expenses and other current liabilities and other liabilities in the accompanying consolidated balance sheets. The decrease in the contract liability balance during the nine months ended September 30, 2022 is primarily due to $ 4.4 million of revenue recognized during the period that was included in the contract liability balance as of December 31, 2021, partially offset by cash payments received in advance of satisfying performance obligations. Disaggregated Revenue See Note 16 for the Company’s disaggregation of revenue by segment, geography and end market.

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2022
Business Combinations [Abstract]
Business Combinations	3. Business Combinations On August 11, 2022 , the Company acquired 100 % of the outstanding shares of MPH Medical Devices S.R.O. ("MPH"), a Czech Republic-based manufacturer of medical consumables with plastics specialization in making disposable tub-set-like products, for a total purchase price of € 21.8 million ($ 22.4 million) , net of cash acquired. The acquisition was financed with borrowings under the Company's revolving credit facility and cash available on hand. The addition of MPH is expected to expand the Company's capacity and capabilities in the medical disposable tube set products within the Vision reportable segment. Allocation of Purchase Price The acquisition of MPH has been accounted for as a business combination. The purchase price is allocated based upon a valuation of the fair values of assets acquired and liabilities assumed as of the acquisition date. The excess of the purchase price over the fair values of the acquired tangible assets and assumed liabilities was recorded as goodwill for the acquisition. The Company's estimates and assumptions in determining the estimated fair value of certain assets and liabilities are subject to change within the measurement period (up to one year from the acquisition date) as a result of additional information obtained with regard to facts and circumstances that existed as of the acquisition date. MPH Based upon preliminary valuation, the total purchase price for MPH was allocated as follows (in thousands): Purchase Price Allocation Cash $ 182 Accounts receivable 1,658 Inventories 957 Property, plant and equipment 12,094 Goodwill 9,863 Other assets 163 Total assets acquired 24,917 Accounts payable 562 Deferred tax liabilities 1,124 Other liabilities 664 Total liabilities assumed 2,350 Total assets acquired, net of liabilities assumed 22,567 Less: cash acquired 182 Purchase price, net of cash acquired $ 22,385 The purchase price allocation is preliminary as the Company is in the process of collecting additional information for the valuation of inventories, property plant and equipment, other liabilities, and unrecognized tax benefits. The purchase price allocation resulted in $ 9.9 million of goodwill. As the MPH acquisition was structured as a stock acquisition, the goodwill is not deductible for income tax purposes. The goodwill recorded represents the anticipated future benefits from the expansion of the Company's manufacturing capacity and capabilities for the medical disposal tube set products. The operating results of MPH were included in the Company's results of operations beginning on August 12, 2022. MPH contributed revenues of $ 2.1 million and a profit before income taxes of $ 0.2 million to the Company's operating results for the nine months ended September 30, 2022. Acquisition Costs Acquisition costs are included in restructuring, acquisition, and related costs in the consolidated statements of operations. Acquisition costs for MPH were $ 0.8 million and $ 0.9 million for the three and nine months ended September 30, 2022 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Accumulated Other Comprehensive Loss	4. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss was as follows (in thousands): Total Accumulated Other Cumulative Pension Comprehensive Translation Liability Loss Adjustments Adjustments Balance at December 31, 2021 $ ( 12,866 ) $ ( 5,753 ) $ ( 7,113 ) Other comprehensive income (loss) ( 36,363 ) ( 37,672 ) 1,309 Amounts reclassified from accumulated other comprehensive loss 302 — 302 Balance at September 30, 2022 $ ( 48,927 ) $ ( 43,425 ) $ ( 5,502 ) The amounts reclassified from accumulated other comprehensive loss were included in other income (expense) in the consolidated statements of operations.

Earnings per Common Share

Earnings per Common Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings per Common Share	5. Earnings per Common Share Basic earnings per common share is computed by dividing consolidated net income by the weighted average number of common shares outstanding during the period. For diluted earnings per common share, the denominator includes the dilutive effect of outstanding common share equivalents. The dilutive effects of outstanding common share equivalents, including outstanding restricted stock units, stock options, relative total shareholder return performance-based restricted stock units (“TSR-PSUs”) and other performance-based restricted stock units (“PSUs”), are determined using the treasury stock method. The dilutive effects of market-based contingently issuable shares from the TSR-PSUs are included in the weighted average common share calculation based on the number of shares, if any, that would be issuable as of the end of the reporting period, assuming the end of the reporting period is also the end of the performance period. The dilutive effects of attainment-based contingently issuable shares from other PSUs are included in the weighted average common share calculation only when the performance targets have been achieved based on the cumulative achievement against the performance targets as of the end of the reporting period. The following table sets forth the computation of basic and diluted earnings per common share (amounts in thousands, except per share data): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Numerators: Consolidated net income $ 22,490 $ 13,603 $ 58,789 $ 36,577 Denominators: Weighted average common shares outstanding— basic 35,729 35,447 35,625 35,366 Dilutive potential common shares 199 317 256 405 Weighted average common shares outstanding— diluted 35,928 35,764 35,881 35,771 Antidilutive potential common shares excluded from above 73 1 104 18 Earnings per Common Share: Basic $ 0.63 $ 0.38 $ 1.65 $ 1.03 Diluted $ 0.63 $ 0.38 $ 1.64 $ 1.02 For both the three and nine months ended September 30, 2022 , 36 thousand non-GAAP EPS performance-based restricted stock units (“EPS-PSUs”) and 37 thousand operating cash flow performance-based restricted stock units (“OCF-PSUs”) granted to certain members of the executive management team, and 51 thousand performance-based restricted stock units granted to ATI Industrial Automation employees (“ATI-PSUs”) are considered attainment-based contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of September 30, 2022. For both the three and nine months ended October 1, 2021 , 45 thousand EPS-PSUs and 37 thousand OCF-PSUs granted to certain members of the executive management team, and 213 thousand shares of restricted stock issued to the former Laser Quantum non-controlling interest shareholders were considered attainment-based contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of October 1, 2021 .

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	6. Fair Value Measurements ASC 820, “Fair Value Measurements,” establishes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the third is considered unobservable: • Level 1: Quoted prices for identical assets or liabilities in active markets which the Company can access • Level 2: Observable inputs other than those described in Level 1 • Level 3: Unobservable inputs Current Assets and Liabilities The Company’s cash equivalents are highly liquid investments with original maturities of three months or less, which represent an asset the Company measures at fair value on a recurring basis. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets. The fair values of cash, accounts receivable, income taxes receivable, accounts payable, income taxes payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature. Foreign Currency Contracts The Company addresses market risks from changes in foreign currency exchange rates through a risk management program that includes the use of derivative financial instruments to mitigate certain balance sheet foreign currency transaction exposures. The Company uses foreign currency forward contracts as a part of its strategy to manage exposures related to foreign currency denominated monetary assets and liabilities. The fair value of these foreign currency forward contracts is reported either in other current assets or in other current liabilities as of the end of the period. Contingent Considerations On August 30, 2021, the Company acquired ATI Industrial Automation Inc. (“ATI”). Under the purchase and sale agreement for the ATI acquisition, the former shareholders of ATI (the “Sellers”) are eligible to receive contingent consideration based on ATI’s fiscal year 2021 Adjusted EBITDA, as defined in the purchase and sale agreement. The contingent consideration would be payable in 2022 after the Sellers and the Company agree on the final amount for the Adjusted EBITDA. The estimated fair value of the contingent consideration was determined based on the Monte Carlo valuation method and was recorded as part of the purchase price as of the acquisition date. Subsequent changes in the estimated fair value are recorded in the consolidated statement of operations in restructuring, acquisition, and related costs until the liability is fully settled. The fair value of the contingent consideration was $ 44.0 million as of December 31, 2021. During the nine months ended September 30, 2022, the fair value of the contingent consideration was adjusted to $ 45.0 million based on the final determination of ATI’s 2021 Adjusted EBITDA. The Company made the contingent consideration payment of $ 45.0 million in August 2022. The estimated fair value of $ 44.0 million included in the determination of the purchase price is reported as a cash outflow from financing activities in the consolidated statement of cash flows for the nine months ended September 30, 2022 while the remaining $ 1.0 million payment is reported as a cash outflow from operating activities. On July 31, 2019, the Company acquired ARGES GmbH (“ARGES ”). Under the purchase and sale agreement for the ARGES acquisition, the former owner of ARGES is eligible to receive contingent consideration based on the achievement of certain revenue targets by the Company from August 2019 through December 2026. The undiscounted range of possible contingent consideration is zero to € 10.0 million ($ 11.1 million). If the revenue targets are achieved, the contingent consideration would be payable annually with the first payment due in the first quarter of 2021. The estimated fair value of the contingent consideration of € 7.1 million ($ 7.9 million) was determined based on the Monte Carlo valuation method and was recorded as part of the purchase price as of the acquisition date. Subsequent changes in the estimated fair value of the contingent consideration liability are recorded in the consolidated statement of operations in restructuring, acquisition, and related costs until the liability is fully settled. During 2020, the fair value of the contingent consideration was adjusted to € 4.1 million ($ 5.1 million). During 2021, the Company made the first installment payment of € 0.4 million ($ 0.4 million) in March 2021 and adjusted the fair value of the contingent consideration to € 3.3 million ($ 3.8 million) as of December 31, 2021. During 2022, the Company made the second installment payment of € 0.3 million ($ 0.4 million) in March 2022. The installment payments are reported as cash outflows from financing activities in the consolidated statement of cash flows for the respective periods. Based on the revenue performance and revenue projections as of September 30, 2022 , the fair value of the remaining contingent consideration was adjusted to € 0.4 million ($ 0.4 million). On April 16, 2019, the Company acquired Ingenia CAT, S.L. (“Ingenia”). Under the purchase and sale agreement for the Ingenia acquisition, the shareholders of Ingenia are eligible to receive contingent consideration based on the achievement of certain revenue targets by the Company from April 2019 through March 2022. The undiscounted range of possible contingent consideration is zero to € 8.0 million ($ 9.0 million). If the revenue targets are achieved, the contingent consideration would be payable in cash in three annual installments from 2020 to 2022. The estimated fair value of the contingent consideration of € 5.8 million ($ 6.6 million) was determined based on the Monte Carlo valuation method and was recorded as part of the purchase price as of the acquisition date. Subsequent changes in the estimated fair value of the contingent consideration liability are recorded in the consolidated statement of operations in restructuring, acquisition, and related costs until the liability is fully settled. During 2020, the Company made the first installment payment of € 1.0 million ($ 1.1 million) in May 2020 and adjusted the fair value of the contingent consideration to € 2.3 million ($ 2.9 million) as of the end of the year. During 2021, the Company made the second installment payment of € 1.2 million ($ 1.4 million) in May 2021 and adjusted the fair value of the contingent consideration to € 1.5 million ($ 1.7 million) as of the end of the year. During the three months ended July 1, 2022, the fair value of the remaining contingent consideration was adjusted to € 1.8 million ($ 1.9 million). The Company made the final installment of € 1.8 million ($ 1.9 million) in July 2022. The installment payments are reported as cash outflows from financing activities in the consolidated statement of cash flows for the respective periods. On December 14, 2016 , the Company acquired certain video signal processing and management technologies used in medical visualization solutions. Under the purchase and sale agreement, the former owners are eligible to receive contingent consideration based on the achievement of certain revenue targets by the Company from 2018 to 2021 from products utilizing the acquired technologies. The undiscounted range of possible contingent consideration is zero to € 5.5 million ($ 6.6 million). If the revenue targets are achieved, the contingent consideration would be payable in cash in four installments from 2019 to 2022. As the acquired assets did not meet the definition of a business, the fair value of the contingent consideration is recognized when probable and estimable and is capitalized as part of the cost of the acquired assets. Subsequent changes in the estimated fair value of this contingent liability are recorded as adjustments to the carrying value of the assets acquired and are amortized over the remaining useful life of the underlying assets. Based on revenue achievements against the target through the end of 2021, the Company recognized an aggregate fair value of € 5.5 million ($ 6.3 million) for the acquired intangible assets. The Company made the first installment payment of € 2.4 million ($ 2.6 million) in February 2020, the second installment payment of € 1.8 million ($ 2.2 million) in February 2021, and the final installment payment of € 1.3 million ($ 1.5 million) in March 2022. The installment payments have been reported as cash outflows from investing activities in the consolidated statements of cash flows. Summary by Fair Value Hierarchy The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 (in thousands): Quoted Prices in Significant Other Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,596 $ 1,596 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 1,521 — 1,521 — $ 3,117 $ 1,596 $ 1,521 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 113 $ — $ — $ 113 Foreign currency forward contracts 794 — 794 — Other liabilities: Contingent considerations - Long-term 274 — — 274 $ 1,181 $ — $ 794 $ 387 The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 (in thousands): Quoted Prices in Significant Other Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,711 $ 1,711 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 137 — 137 — $ 1,848 $ 1,711 $ 137 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 47,522 $ — $ — $ 47,522 Foreign currency forward contracts 160 — 160 — Other liabilities: Contingent considerations - Long-term 3,402 — — 3,402 $ 51,084 $ — $ 160 $ 50,924 Changes in the fair value of Level 3 contingent considerations during the nine months ended September 30, 2022 were as follows (in thousands): Amount Balance at December 31, 2021 $ 50,924 Payments ( 48,725 ) Fair value adjustments ( 1,382 ) Effect of foreign exchange rates ( 430 ) Balance at September 30, 2022 $ 387 See Note 10 to Consolidated Financial Statements for a discussion of the estimated fair value of the Company’s outstanding debt.

Foreign Currency Contracts

Foreign Currency Contracts	9 Months Ended
	Sep. 30, 2022
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Foreign Currency Contracts	7. Foreign Currency Contracts The Company addresses market risks from changes in foreign currency exchange rates through a risk management program that includes the use of derivative financial instruments to mitigate certain foreign currency transaction exposures from future settlement of non-functional currency monetary assets and liabilities as of the end of a period. The Company does not enter into derivative transactions for speculative purposes. Gains and losses on derivative financial instruments substantially offset losses and gains on the underlying hedged exposures. Furthermore, the Company manages its exposures to counterparty risks on derivative instruments by entering into contracts with a diversified group of major financial institutions and by actively monitoring outstanding positions. As of September 30, 2022 , the aggregate notional amount and fair value of the Company’s foreign currency forward contracts was $ 87.3 million and a net gain of $ 0.7 million, respectively. As of December 31, 2021, the aggregate notional amount and fair value of the Company’s foreign currency forward contracts was $ 50.0 million and a net loss of less than $ 0.1 million, respectively. The Company recognized an aggregate net lo ss of $ 0.8 million and $ 2.3 million for t he three and nine months ended September 30, 2022 , respectively. The Company recognized an aggregate net gain of $ 0.3 million and of $ 0.9 million for the three and nine months ended October 1, 2021 , respectively. These amounts were included in foreign exchange transaction gains (losses) in the consolidated statements of operations.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	8. Goodwill and Intangible Assets Goodwill Goodwill is recorded when the consideration for a business combination exceeds the fair value of net tangible and identifiable intangible assets acquired. The Company tests its goodwill balances for impairment annually as of the beginning of the second quarter or more frequently if indicators are present or changes in circumstances suggest that an impairment may exist. The Company performed the most recent annual goodwill and indefinite-lived intangible asset impairment test as of the beginning of the second quarter of 2022 and noted no impairment. The following table summarizes changes in goodwill during the nine months ended September 30, 2022 (in thousands): Balance at beginning of the period $ 479,500 Goodwill acquired from acquisitions 9,863 Effect of foreign exchange rate changes ( 24,311 ) Balance at end of the period $ 465,052 Goodwill by reportable segment as of September 30, 2022 was as follows (in thousands): Reportable Segment Photonics Vision Precision Total Goodwill $ 201,864 $ 162,128 $ 252,289 $ 616,281 Accumulated impairment of goodwill ( 102,461 ) ( 31,722 ) ( 17,046 ) ( 151,229 ) Total $ 99,403 $ 130,406 $ 235,243 $ 465,052 Goodwill by reportable segment as of December 31, 2021 was as follows (in thousands): Reportable Segment Photonics Vision Precision Total Goodwill $ 214,564 $ 160,675 $ 255,490 $ 630,729 Accumulated impairment of goodwill ( 102,461 ) ( 31,722 ) ( 17,046 ) ( 151,229 ) Total $ 112,103 $ 128,953 $ 238,444 $ 479,500 Intangible Assets Intangible assets as of September 30, 2022 and December 31, 2021, respectively, are summarized as follows (in thousands): September 30, 2022 December 31, 2021 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amortizable intangible assets: Patents and developed technologies $ 178,968 $ ( 125,375 ) $ 53,593 $ 189,609 $ ( 122,130 ) $ 67,479 Customer relationships 215,274 ( 112,689 ) 102,585 228,656 ( 104,386 ) 124,270 Customer backlog 6,795 ( 6,795 ) — 6,862 ( 2,254 ) 4,608 Trademarks and trade names 22,644 ( 12,736 ) 9,908 23,976 ( 12,371 ) 11,605 Amortizable intangible assets 423,681 ( 257,595 ) 166,086 449,103 ( 241,141 ) 207,962 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 436,708 $ ( 257,595 ) $ 179,113 $ 462,130 $ ( 241,141 ) $ 220,989 All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining estimated useful life. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships and definite-lived trademarks, trade names and other intangibles is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense was as follows (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Amortization expense – cost of revenue $ 3,247 $ 3,316 $ 10,004 $ 9,275 Amortization expense – operating expenses 6,472 4,139 20,987 11,300 Total amortization expense $ 9,719 $ 7,455 $ 30,991 $ 20,575 Estimated amortization expense for each of the five succeeding years and thereafter as of September 30, 2022 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Total 2022 (remainder of year) $ 3,186 $ 5,242 $ 8,428 2023 11,583 19,633 31,216 2024 9,434 16,467 25,901 2025 8,041 13,931 21,972 2026 6,750 11,835 18,585 Thereafter 14,599 45,385 59,984 Total $ 53,593 $ 112,493 $ 166,086

Supplementary Balance Sheet Inf

Supplementary Balance Sheet Information	9 Months Ended
	Sep. 30, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Supplementary Balance Sheet Information	9. Supplementary Balance Sheet Information The following tables provide the details of selected balance sheet items as of the periods indicated (in thousands): Inventories September 30, December 31, 2022 2021 Raw materials $ 112,259 $ 84,038 Work-in-process 23,978 20,600 Finished goods 25,485 19,486 Demo and consigned inventory 1,085 1,533 Total inventories $ 162,807 $ 125,657 Accrued Expenses and Other Current Liabilities September 30, December 31, 2022 2021 Accrued compensation and benefits $ 32,300 $ 24,725 Accrued warranty 4,738 4,783 Contract liabilities, current portion 6,695 6,995 Finance lease obligations 651 599 Accrued contingent considerations and earn-outs 113 47,522 Other 14,132 13,855 Total $ 58,629 $ 98,479 Accrued Warranty Nine Months Ended September 30, October 1, 2022 2021 Balance at beginning of the period $ 4,783 $ 4,919 Provision charged to cost of revenue 2,091 1,215 Warranty liabilities acquired from acquisitions — 541 Use of provision ( 1,933 ) ( 2,075 ) Foreign currency exchange rate changes ( 203 ) ( 73 ) Balance at end of the period $ 4,738 $ 4,527 Other Long-Term Liabilities September 30, December 31, 2022 2021 Finance lease obligations $ 4,825 $ 5,309 Accrued contingent considerations and earn-outs 274 3,402 Other 1,147 927 Total $ 6,246 $ 9,638

Debt

Debt	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	10. Debt Debt consisted of the following (in thousands): September 30, December 31, 2022 2021 Senior Credit Facilities – term loan $ 4,399 $ 5,126 Less: unamortized debt issuance costs ( 33 ) ( 29 ) Total current portion of long-term debt $ 4,366 $ 5,097 Senior Credit Facilities – term loan $ 71,260 $ 86,879 Senior Credit Facilities – revolving credit facility 372,287 346,579 Less: unamortized debt issuance costs ( 5,100 ) ( 4,097 ) Total long-term debt $ 438,447 $ 429,361 Total Senior Credit Facilities $ 442,813 $ 434,458 Senior Credit Facilities On December 31, 2019, the Company entered into an amended and restated credit agreement (the “Third Amended and Restated Credit Agreement”) with existing lenders for an aggregate credit facility of $ 450.0 million, consisting of a $ 100.0 million U.S. dollar equivalent euro-denominated (approximately € 90.2 million) 5 -year term loan facility and a $ 350.0 million 5 -year revolving credit facility (collectively, the “Senior Credit Facilities”). The Senior Credit Facilities mature in December 2024 and include an uncommitted accordion option pursuant to which the commitments under the revolving credit facility may be increased by an additional $ 200.0 million in aggregate, subject to certain customary conditions. The outstanding principal balance under the term loan facility is payable in quarterly installments of € 1.1 million beginning in March 2020, with the remaining balance due upon maturity. The Company may make additional principal payments at any time, which will reduce the next quarterly installment payment due. Borrowings under the revolving credit facility may be repaid at any time through March 2027 . The Company made principal payments of € 3.4 million ($ 3.5 million) towards its term loan and $ 34.3 million towards its revolving credit facility during the nine months ended September 30, 2022. On March 27, 2020, the Company entered into an amendment (the “First Amendment”) to the Third Amended and Restated Credit Agreement and exercised a portion of the uncommitted accordion option. The First Amendment increased the revolving credit facility commitment under the Third Amended and Restated Credit Agreement by $ 145.0 million, from $ 350.0 million to $ 495.0 million, and reset the uncommitted accordion option to $ 200.0 million for potential future expansion. On October 5, 2021, the Company entered into an amendment (the “Fourth Amendment”) to the Third Amended and Restated Credit Agreement to exercise the accordion option. The Fourth Amendment increased the revolving credit facility commitment under the Third Amended and Restated Credit Agreement by $ 200.0 million, from $ 495.0 million to $ 695.0 million, and reset the uncommitted accordion option to $ 200.0 million for potential future expansion. On March 10, 2022, the Company entered into an amendment (the “Fifth Amendment”) to the Third Amended and Restated Credit Agreement to extend the maturity date from December 31, 2024 to March 10, 2027, update the pricing grid, replace LIBOR with SOFR as the reference rate for U.S. dollar borrowings, and increase the uncommitted accordion option from $ 200 million to $ 350 million. In connection with the Fifth Amendment, the Company capitalized $ 2.5 million deferred financing costs and recorded a $ 0.6 million loss from the write-off of a portion of the unamortized deferred financing costs. The Company is required to satisfy certain financial and non-financial covenants under the Third Amended and Restated Credit Agreement. The Third Amended and Restated Credit Agreement also contains customary events of default. The Company was in compliance with these covenants as of September 30, 2022. Liens The Company’s obligations under the Senior Credit Facilities are secured, on a senior basis, by a lien on substantially all of the assets of Novanta Inc. Fair Value of Debt As of September 30, 2022 and December 31, 2021, the outstanding balance of the Company’s debt approximated its fair value based on current rates available to the Company for debt of similar maturities. The fair value of the Company’s debt is classified as Level 2 under the fair value hierarchy.

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	11. Leases Most leases held by the Company expire between 2022 and 2036 . In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078 . Certain leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years , and options to terminate the leases within one year . The exercise of lease renewal or termination options is at the Company’s sole discretion; therefore, the majority of renewal options to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable lives of the right-of-use assets and leasehold improvements are limited to the expected lease terms. The following table summarizes the components of lease costs (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Operating lease cost $ 2,544 $ 2,418 $ 7,936 $ 6,213 Finance lease cost Amortization of right-of-use assets 150 149 451 451 Interest on lease liabilities 77 85 234 257 Variable lease cost 271 275 888 834 Total lease cost $ 3,042 $ 2,927 $ 9,509 $ 7,755 The following table provides additional details of balance sheet information related to the Company’s leases (in thousands, except lease term and discount rate): September 30, December 31, 2022 2021 Operating leases Operating lease right-of-use assets $ 43,520 $ 48,338 Current portion of operating lease liabilities $ 7,663 $ 7,334 Operating lease liabilities 40,907 45,700 Total operating lease liabilities $ 48,570 $ 53,034 Finance leases Property, plant and equipment, gross $ 9,582 $ 9,582 Accumulated depreciation ( 5,520 ) ( 5,068 ) Finance lease assets included in property, plant and equipment, net $ 4,062 $ 4,514 Accrued expenses and other current liabilities $ 651 $ 599 Other liabilities 4,825 5,309 Total finance lease liabilities $ 5,476 $ 5,908 Weighted-average remaining lease term (in years): Operating leases 8.2 9.0 Finance leases 6.8 7.5 Weighted-average discount rate: Operating leases 4.67 % 4.72 % Finance leases 5.54 % 5.54 % The following table provides additional details of cash flow information related to the Company’s leases (in thousands): Nine Months Ended September 30, October 1, 2022 2021 Cash paid for amounts included in lease liabilities: Operating cash flows from finance leases $ 234 $ 257 Operating cash flows from operating leases $ 5,921 $ 5,562 Financing cash flows from finance leases $ 447 $ 9,166 Supplemental non-cash information: Right-of-use assets obtained in exchange for new operating lease liabilities $ 4,621 $ 15,340 During the nine months ended October 1, 2021 , the Company paid $ 8.7 million upon the exercise of an option to purchase a building under a finance lease agreement in Germany. The cash payment is presented as a cash outflow from financing activities in the consolidated statement of cash flows. Future minimum lease payments under operating and finance leases expiring subsequent to September 30, 2022, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 (remainder of year) $ 2,434 $ 243 2023 9,030 930 2024 8,376 954 2025 8,013 954 2026 6,940 979 Thereafter 25,347 2,506 Total minimum lease payments 60,140 6,566 Less: Interest ( 11,570 ) ( 1,090 ) Present value of lease liabilities $ 48,570 $ 5,476

Preferred and Common Shares and

Preferred and Common Shares and Share-Based Compensation	9 Months Ended
	Sep. 30, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Preferred and Common Shares and Share-Based Compensation	12. Preferred and Common Shares and Share-Based Compensation Preferred Shares In May 2021, the Company’s shareholders approved a special resolution to amend the Company’s articles to authorize up to 7.0 million preferred shares for future issuance. The Company’s Board of Directors is authorized to designate and issue one or more series of preferred shares, fix the rights, preferences and designation, as deemed necessary or advisable, relating to the preferred shares, provided that no shares of any series may be entitled to more than one vote per share . As of September 30, 2022 , no preferred shares had been issued and outstanding. Common Share Repurchases In October 2018, the Company’s Board of Directors approved a share repurchase plan (the “2018 Repurchase Plan”), authorizing the repurchase of $ 25.0 million worth of the Company’s common shares. During the three months ended July 1, 2022, the Company completed the 2018 Repurchase Plan and repurchased 80 thousand shares for an aggregate purchase price of $ 9.5 million at an average price of $ 118.97 per share. Since the inception of the 2018 Repurchase Plan, the Company has repurchased a cumulative total of 264 thousand shares for an aggregate purchase price of $ 25.0 million at an average price of $ 94.57 per share. In February 2020, the Company’s Board of Directors approved a new share repurchase plan (the “2020 Repurchase Plan”), authorizing the repurchase of an additional $ 50.0 million worth of the Company’s common shares. During the three months ended July 1, 2022, the Company repurchased 4 thousand shares for an aggregate purchase price of $ 0.5 million at an average price of $ 116.95 per share under the 2020 Repurchase Plan. During the three months ended September 30, 2022, the Company did not repurchase any shares. As of September 30, 2022 , the Company had $ 49.5 million available for future share repurchases under the 2020 Repurchase Plan. Share-Based Compensation Expense The table below summarizes share-based compensation expense recorded in the consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Selling, general and administrative $ 4,649 $ 4,360 $ 13,906 $ 13,123 Research and development and engineering 586 534 1,780 1,776 Cost of revenue 719 631 2,123 2,305 Restructuring, acquisition, and related costs — 2,965 — 2,965 Total share-based compensation expense $ 5,954 $ 8,490 $ 17,809 $ 20,169 Share-based compensation expense reported in selling, general and administrative expenses included expenses related to restricted stock units and deferred stock units granted to the members of the Company’s Board of Directo rs of $ 1.1 million and $ 1.1 million during the nine months ended September 30, 2022 and October 1, 2021, respectively. Restricted Stock Units and Deferred Stock Units The Company’s restricted stock units (“RSUs”) have generally been issued with vesting periods ranging from zero to five years and vest based solely on service conditions. Accordingly, the Company recognizes compensation expense on a straight-line basis over the requisite service period. The Company reduces the compensation expense by an estimated forfeiture rate which is based on anticipated forfeitures and historical forfeiture experience. Deferred stock units (“DSUs”) are granted to the members of the Company’s Board of Directors (the "Board"). Compensation expense associated with the DSUs is recognized in full on the date of grant, as the DSUs are fully vested and non-forfeitable upon grant. Outstanding DSUs are converted into common shares upon Board members' resignation or retirement from the Board. During the nine months ended September 30, 2022 , 52 thousand shares of outstanding DSUs were converted into common shares upon the retirement or resignation of certain Board members. There were 38 thousand and 91 thousand DSUs o utstanding as of September 30, 2022 and December 31, 2021, respectively. Outstanding DSUs are included in the calculation of weighted average basic shares outstanding for the respective periods. The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2022: Shares Weighted Unvested at December 31, 2021 292 $ 115.42 Granted 118 $ 136.41 Vested ( 135 ) $ 114.12 Forfeited ( 13 ) $ 126.79 Unvested at September 30, 2022 262 $ 124.72 Expected to vest as of September 30, 2022 242 The total fair value of RSUs and DSUs that vested during the nine months ended September 30, 2022 was $ 18.1 million based on the market price of the underlying shares on the date of vesting. Performance Stock Units The Company typically grants two types of performance-based stock awards, EPS-PSUs and TSR-PSUs, to certain members of the executive management team on an annual basis. Both types of performance-based restricted stock units generally cliff vest on the first day following the end of the three-year performance period. The number of common shares to be issued upon settlement following the vesting of EPS-PSUs is determined based on the Company’s cumulative non-GAAP EPS over a three-year performance period against the performance targets established by the Company’s Board of Directors at the time of grant and will be in the range of zero to 200 % of the target number of shares. The Company recognizes compensation expense ratably over the performance period based on the number of shares that are deemed probable of vesting at the end of the three-year performance cycle. This probability assessment is performed quarterly and the cumulative effect of a change in the estimated compensation expense, if any, is recognized in the consolidated statement of operations in the period in which such determination is made. The number of common shares to be issued upon settlement following the vesting of TSR-PSUs is determined based on the relative market performance of the Company’s common shares compared to the Russell 2000 Index over a three-year performance period using a payout formula established by the Company’s Board of Directors at the time of grant and will be in the range of zero to 200 % of the target number of shares. The Company recognizes the related compensation expense based on the fair value of the TSR-PSUs, determined using the Monte Carlo valuation method as of the grant date, on a straight-line basis from the grant date to the end of the three-year performance period. Compensation expense will not be affected by the number of TSR-PSUs that will ultimately vest at the end of the three-year performance period. In January 2022, the Company granted ATI-PSUs to ATI employees. The number of common shares to be issued upon settlement following vesting is determined based on a performance matrix for a four-year performance period against certain performance targets and will be in the range of zero to 100 % of the target number of shares. The Company recognizes compensation expense ratably over the performance period based on the number of shares that are deemed probable of vesting at the end of the four-year performance cycle. This probability assessment is performed quarterly and the cumulative effect of a change in the estimated compensation expense, if any, is recognized in the consolidated statement of operations in the period in which such determination is made. The table below summarizes the activities relating to the performance-based awards issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2022: Shares Weighted Unvested at December 31, 2021 162 $ 122.26 Granted 107 $ 159.00 Vested ( 41 ) $ 108.58 Forfeited ( 10 ) $ 156.62 Unvested at September 30, 2022 218 $ 144.40 Expected to vest as of September 30, 2022 230 The unvested PSUs are shown at target in the table above. As of September 30, 2022 , the maximum number of common shares to be earned under these PSU grants was approximately 343 thousand shares. The total fair value of PSUs that vested during the nine months ended September 30, 2022 was $ 7.2 million based on the market price of the underlying common shares on the date of vesting. The fair value of the TSR-PSUs at the date of grant was estimated using the Monte Carlo valuation method with the following assumptions: Nine Months Ended September 30, 2022 Grant-date stock price $ 137.29 Expected volatility 40.33 % Risk-free interest rate 1.81 % Expected annual dividend yield — Fair value $ 144.38 Stock Options In February 2022, the Company granted 40 thousand stock options to certain members of the executive management team to purchase common shares of the Company at a strike price equal to the closing market price of the Company’s common shares on the date of grant. The stock options vest ratably over a three-year period from the date of grant and expire on the seven th anniversary of the date of grant. The Company estimates the fair value of stock options using the Black-Scholes valuation model. The Company recognizes compensation expense related to the stock options on a straight-line basis over the vesting period in the consolidated statement of operations. The table below summarizes activities relating to stock options issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2022: Shares Weighted Outstanding as of December 31, 2021 60 $ 14.13 Granted 40 $ 135.86 Exercised — $ — Forfeited or expired — $ — Outstanding as of September 30, 2022 100 $ 62.77 Exercisable as of September 30, 2022 60 Expected to vest as of September 30, 2022 40 The aggregate Black-Scholes fair value of $ 1.9 million for the stock options granted during the nine months ended September 30, 2022 was estimated using the following assumptions as of the grant date: Nine Months Ended September 30, 2022 Expected option term in years 4.5 Expected volatility 39.3 % Risk-free interest rate 1.83 % Expected annual dividend yield — The expected option term was calculated using the simplified method permitted under Codification of Staff Accounting Bulletins Topic 14, “Share-Based Payment”. The expected volatility was determined based on the historical volatility of the Company’s common shares over the expected option term. Risk-free interest rate was based upon treasury instrument whose term was six months longer than the expected option term. The expected annual dividend yield is zero as the Company does not have plans to issue dividends.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company determines its estimated annual effective tax rate at the end of each interim period based on full-year forecasted pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with the cumulative effect of any changes in the estimated annual effective tax rate being recorded in the period in which the changes are determined. The tax effect of significant unusual items is reflected in the period in which they occur. Since the Company is incorporated in Canada, it is required to use Canada’s statutory tax rate of 29.0 % in the determination of the estimated annual effective tax rate. The Company maintains a valuation allowance on balances of certain U.S. state net operating losses and certain non-U.S. tax attributes that the Company has determined are not more likely than not to be realized. A valuation allowance is required when, based upon an assessment of various factors, including recent operating loss history, anticipated future earnings, and prudent and reasonable tax planning strategies, it is more likely than not that some portion of the deferred tax assets will not be realized. In conjunction with the Company’s ongoing review of its actual results and anticipated future earnings, the Company continuously reassesses the possibility of adding a new or additional valuation allowance or releasing the valuation allowance currently in place on its deferred tax assets. The Company's effective tax rate of 16.0 % for the three months ended September 30, 2022 differs from the Canadian statutory tax rate of 29.0 % primarily due to the mix of income earned in jurisdictions with varying tax rates, estimated deductions for Foreign Derived Intangible Income, U.K. patent box deductions, and R&D tax credits, partially offset by disallowed compensation and uncertain tax position accruals. The Company's effective tax rate of 13.8 % for the nine months ended September 30, 2022 differs from the Canadian statutory tax rate of 29.0 % primarily due to the mix of income earned in jurisdictions with varying tax rates, estimated deductions for Foreign Derived Intangible Income, U.K. patent box deductions, R&D tax credits, and windfall tax benefits upon vesting of certain share-based compensation awards during the period, partially offset by disallowed compensation and uncertain tax position accruals. For the nine months ended September 30, 2022, the windfall tax benefits upon vesting of certain share-based compensation awards had a benefit of 0.2 % on the Company’s effective tax rate. Beginn ing in January 2022, the Tax Cuts and Jobs Act of 2017 (“TCJA”) requires that research and development (“R&D”) expenditures be capitalized and amortized for income tax purposes over five years for domestic research and fifteen years for foreign research, rather than being deducted as incurred. This has the effect of increasing the Company’s cash taxes and deferred tax assets. Since January 2022, the Company has recognized deferred tax assets of $ 9.2 million for the relevant R&D expenditures. This provision also has an indirect benefit of 3.8 % on the Company’s effective tax rate for the nine months ended September 30, 2022, as the Company’s estimated Foreign Derived Intangible Income deduction has increased as a result of increased U.S. taxable income. The provision for income taxes for both the three months and the nine months ended September 30, 2022 reflects the impact of the TCJA. The Company’s effective tax rate of ( 0.6 %) for the three months ended October 1, 2021 differs from the Canadian statutory tax rate of 29.0 % primarily due to the mix of income earned in jurisdictions with varying tax rates, estimated deductions for Foreign Derived Intangible Income, U.K. patent box deductions, other tax credits, and windfall tax benefits upon vesting of certain share-based compensation awards, partially offset by an increase in valuation allowances. The Company’s effective tax rate of 2.0 % for the nine months ended October 1, 2021 differs from the Canadian statutory tax rate of 29.0 % primarily due to the mix of income earned in jurisdictions with varying tax rates, estimated deductions for Foreign Derived Intangible Income, U.K. patent box deductions, other tax credits, a release of uncertain tax position reserves, and windfall tax benefits upon vesting of certain share-based compensation awards, partially offset by the revaluation of long term deferred tax balances resulting from the U.K. corporate tax rate change and an increase in valuation allowances during the period. For the nine months ended October 1, 2021, the windfall tax benefits upon vesting of certain share-based compensation awards had a benefit of 14.5 % on the Company’s effective tax rate.

Restructuring, Acquisition, and

Restructuring, Acquisition, and Related Costs	9 Months Ended
	Sep. 30, 2022
Restructuring And Related Activities [Abstract]
Restructuring, Acquisition, and Related Costs	14. Restructuring, Acquisition, and Related Costs The following table summarizes restructuring, acquisition, and related costs in the accompanying consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 2022 restructuring $ 889 $ — $ 889 $ — 2020 restructuring 887 5,185 2,119 7,688 2019 restructuring — — — 208 Total restructuring charges $ 1,776 $ 5,185 $ 3,008 $ 7,896 Acquisition and related charges ( 151 ) 2,935 ( 358 ) 8,589 Total restructuring, acquisition, and related costs $ 1,625 $ 8,120 $ 2,650 $ 16,485 2022 Restructuring As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2022 restructuring program in the third quarter of 2022. This program is focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program is focused on cost reduction actions that improve gross margins for the overall company in line with the Company's multi-year gross margin expansion program. During the three months ended September 30, 2022 , the Company recorded $ 0.9 million in severance costs in connection with the 2022 restructuring program. The $ 0.9 million severance costs were included in the Company's Photonics segment. As of September 30, 2022 , the Company had incurred cumulative costs related to this restructuring plan totaling $ 0.9 million. The Company anticipates substantially completing the 2022 restructuring program by the end of 2023 and expects to incur additional restructuring charges of $ 5.0 million to $ 6.0 million related to the 2022 restructuring program. 2020 Restructuring As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program is focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program is focused on cost reduction actions that improve gross margins for the overall company. During the three and nine months ended September 30, 2022 , the Company recorded $ 0.9 million and $ 2.1 million, respectively, in severance and other costs in connection with the 2020 restructuring program. As of September 30, 2022 , the Company had incurred cumulative costs related to this restructuring plan totaling $ 10.2 million. The Company anticipates substantially completing the 2020 restructuring program in the first quarter of 2023 and expects to incur additional restructuring charges of $ 1.5 million to $ 2.0 million related to the 2020 restructuring program. The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Photonics $ 758 $ 2,349 $ 1,952 $ 2,839 Vision 101 193 207 890 Precision Motion 22 2,643 ( 46 ) 3,959 Unallocated Corporate and Shared Services 6 — 6 — Total $ 887 $ 5,185 $ 2,119 $ 7,688 2019 Restructuring During the fourth quarter of 2018, the Company implemented a restructuring plan intended to realign operations, reduce costs, achieve operational efficiencies and focus resources on growth initiatives (the “2019 restructuring plan”). The Company did no t incur any costs related to the 2019 restructuring plan during the three and nine months ended September 30, 2022 . As of December 31, 2021, the Company incurred cumulative costs related to this restructuring plan totaling $ 9.0 million. The 2019 restructuring program was completed in 2021. Rollforward of Accrued Expenses Related to Restructuring The following table summarizes the accrual activities, by component, related to the Company’s restructuring plans recorded in the accompanying consolidated balance sheets (in thousands): Total Employee Related Facility Other Balance at December 31, 2021 $ 2,686 $ 2,107 $ 550 $ 29 Restructuring charges 3,008 1,303 1,432 273 Cash payments ( 2,519 ) ( 1,527 ) ( 722 ) ( 270 ) Non-cash charges and other adjustments ( 1,325 ) ( 163 ) ( 1,160 ) ( 2 ) Balance at September 30, 2022 $ 1,850 $ 1,720 $ 100 $ 30 Acquisition and Related Charges Acquisition costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $ 0.8 million and $ 1.1 million for the three and nine months ended September 30, 2022 , respectively, and $ 2.9 million and $ 4.7 million for the three and nine months ended October 1, 2021 , respectively. The Company incurred zero costs for the three and nine months ended September 30, 2022 , and $ 0.1 million and $ 1.9 million in legal costs for the three and nine months ended October 1, 2021 related to a dispute involving a company that was acquired in 2019. During the three and nine months ended September 30, 2022 , the Company recognized $( 1.0 ) million and $( 1.4 ) million, respectively, of earn-out expenses (income) related to prior-year acquisitions. During the three and nine months ended October 1, 2021 , the Company recognized less than $( 0.1 ) million and $ 1.9 million, respectively, of earn-out expenses (income) related to prior-year acquisitions. The majority of acquisition and related costs for the three and nine months ended September 30, 2022 were included in the Company’s Precision Motion, Photonics, and Unallocated Corporate and Shared Services reportable segments. The majority of acquisition and related costs for the three and nine months ended October 1, 2021 were included in the Company’s Precision Motion, Vision, and Unallocated Corporate and Shared Services reportable segments.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	15. Commitments and Contingencies Purchase Commitments There have been no material changes to the Company’s purchase commitments since December 31, 2021. Legal Contingencies The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. The Company reviews the status of each significant matter and assesses the potential financial exposure on a quarterly basis. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available as of the date of the consolidated balance sheet. As additional information becomes available, the Company reassesses the potential liability related to any pending claims and litigations and may revise its estimates. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the potential loss or a range of potential losses, if such an estimate can be reasonably made. Legal fees are expensed as incurred. The Company does not believe that the outcome of these claims will have a material adverse effect on its consolidated financial statements but there can be no assurance that any such claims, or any similar claims, would not have a material adverse effect on the consolidated financial statements. Guarantees and Indemnifications In the normal course of its operations, the Company executes agreements that provide for indemnification and guarantees to counterparties in transactions such as business dispositions, sale of assets, sale of products, and operating leases. Additionally, the by-laws of the Company require it to indemnify certain current or former directors, officers, and employees of the Company against expenses incurred by them in connection with each proceeding in which they are involved as a result of serving or having served in certain capacities. Indemnification is not available with respect to a proceeding as to which it has been adjudicated that the person did not act in good faith in the reasonable belief that the action was in the best interests of the Company. Certain of the Company’s officers and directors are also a party to indemnification agreements with the Company. These indemnification agreements provide, among other things, that the director or officer shall be indemnified to the fullest extent permitted by applicable law against all expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by such director or officer in connection with any proceeding by reason of their relationship with the Company. In addition, the indemnification agreements provide for the advancement of expenses incurred by such director or officer in connection with any proceeding covered by the indemnification agreement, subject to the conditions set forth therein and to the extent such advancement is not prohibited by law. The indemnification agreements also set out the procedures for determining entitlement to indemnification, the requirements relating to notice and defense of claims for which indemnification is sought, the procedures for enforcement of indemnification rights, the limitations on and exclusions from indemnification, and the minimum levels of directors and officers liability insurance to be maintained by the Company.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Information	16. Segment Information Reportable Segments The Company’s Chief Operating Decision Maker (“CODM”) utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company. The Company evaluates the performance of and allocates resources to its segments based on revenue, gross profit and operating profit. The Company’s reportable segments have been identified based on commonality and adjacency of technologies, applications and customers amongst the Company’s individual product lines. The Company determined that disclosing revenue by specific product was impracticable due to the highly customized and extensive portfolio of technologies offered to customers. Based upon the information provided to the CODM, the Company has determined that it operates in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities are described below. Photonics The Photonics segment designs, manufactures and markets photonics-based solutions, including laser scanning, laser beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products, to customers worldwide. The segment serves highly demanding photonics-based applications for advanced industrial processes, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures, particularly ophthalmology applications. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Vision The Vision segment designs, manufactures and markets a range of medical grade technologies, including medical insufflators, pumps and related disposables; visualization solutions; wireless technologies, video recorder and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification (“RFID”) technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Precision Motion The Precision Motion segment designs, manufactures and markets optical and inductive encoders, precision motors, servo drives and motion control solutions, integrated stepper motors, intelligent robotic end-of-arm technology solutions, air bearings, and air bearing spindles to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Reportable Segment Financial Information Revenue, gross profit, gross profit margin, operating income (loss), and depreciation and amortization expenses by reportable segment were as follows (in thousands, except percentage data): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Revenue 2022 2021 2022 2021 Photonics $ 70,799 $ 55,263 $ 203,042 $ 176,113 Vision 73,345 65,346 200,911 196,429 Precision Motion 78,814 57,117 238,577 135,291 Total $ 222,958 $ 177,726 $ 642,530 $ 507,833 Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Gross Profit 2022 2021 2022 2021 Photonics $ 34,699 $ 25,311 $ 94,268 $ 83,014 Vision 28,201 24,763 79,966 76,132 Precision Motion 36,832 27,743 113,846 64,694 Unallocated Corporate and Shared Services ( 1,324 ) ( 1,519 ) ( 4,151 ) ( 6,396 ) Total $ 98,408 $ 76,298 $ 283,929 $ 217,444 Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Gross Profit Margin 2022 2021 2022 2021 Photonics 49.0 % 45.8 % 46.4 % 47.1 % Vision 38.4 % 37.9 % 39.8 % 38.8 % Precision Motion 46.7 % 48.6 % 47.7 % 47.8 % Total 44.1 % 42.9 % 44.2 % 42.8 % Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Operating Income (Loss) 2022 2021 2022 2021 Photonics $ 18,351 $ 9,294 $ 45,782 $ 35,885 Vision 8,744 5,606 20,811 12,178 Precision Motion 15,800 14,957 48,222 34,681 Unallocated Corporate and Shared Services ( 14,234 ) ( 14,582 ) ( 38,580 ) ( 40,378 ) Total $ 28,661 $ 15,275 $ 76,235 $ 42,366 Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Depreciation and Amortization Expenses 2022 2021 2022 2021 Photonics $ 2,760 $ 2,901 $ 8,234 $ 8,703 Vision 4,240 5,239 12,989 15,793 Precision Motion 6,050 2,691 19,467 5,916 Unallocated Corporate and Shared Services 93 59 309 201 Total $ 13,143 $ 10,890 $ 40,999 $ 30,613 Revenue by Geography The Company aggregates geographic revenue based on the customer locations where products are shipped to. Revenue by geography was as follows (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 United States $ 99,230 $ 72,972 $ 268,585 $ 191,699 Germany 34,625 25,313 99,526 71,448 Rest of Europe 33,996 34,163 105,327 105,338 China 24,209 22,230 80,877 68,286 Rest of Asia-Pacific 26,886 21,256 74,400 64,765 Other 4,012 1,792 13,815 6,297 Total $ 222,958 $ 177,726 $ 642,530 $ 507,833 The majority of revenue from Photonics, Vision and Precision Motion segments is generated from sales to customers within the United States and Europe. Each segment also generates revenue across the other geographies, with no significant concentration of any segment’s remaining revenue. Revenue by End Market The Company primarily operates in two end markets: the medical market and the advanced industrial market. Revenue by end market was approximately as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Medical 50 % 53 % 48 % 53 % Advanced Industrial 50 % 47 % 52 % 47 % Total 100 % 100 % 100 % 100 % The majority of revenue from the Photonics and Precision Motion segments is generated from sales to customers in the advanced industrial market. The majority of revenue from the Vision segment is generated from sales to customers in the medical market.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Novanta Inc. (together with its subsidiaries, “Novanta” or the “Company”) is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers (“OEMs”) a competitive advantage. Novanta combines deep proprietary technology expertise and competencies in photonics, vision and precision motion with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to the customers’ demanding applications. The accompanying unaudited interim consolidated financial statements have been prepared by the Company in United States (“U.S.”) dollars and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”), the instructions to Form 10-Q and the provisions of Regulation S-X pertaining to interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted. The interim consolidated financial statements and notes included in this report should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, these interim consolidated financial statements include all adjustments and accruals of a normal and recurring nature necessary to fairly state the results of the interim periods presented. The results for interim periods are not necessarily indicative of results to be expected for the full year or for any future periods. The Company’s unaudited interim consolidated financial statements are prepared for each quarterly period ending on the Friday closest to the end of the calendar quarter, with the exception of the fourth quarter which always ends on December 31.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Estimates and assumptions are reviewed on an on-going basis and the effects of revisions are reflected in the period in which such revisions are deemed to be necessary. The Company evaluates its estimates based on historical experience, current conditions, and various other assumptions that it believes are reasonable under the circumstances. Actual results could differ significantly from these estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following table provides a brief description of recent Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Upon issuance. Adoption of ASU 2020-04 is elective. In March 2022, the Company amended the Third Amended and Restated Credit Agreement and replaced LIBOR with SOFR as the new reference rate for U.S. dollar borrowings. The ASU did not have any impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires that entities recognize and measure contract assets and liabilities acquired in a business combination in accordance with ASC 606, “Revenue from Contracts with Customers”. ASU 2021-08 also applies to contract assets or liabilities from other contracts to which the provisions of ASC 606 apply. The amendments in ASU 2021-08 do not affect the accounting for other assets or liabilities that may arise from revenue contracts with customers in accordance with ASC 606, such as refund liabilities, or in a business combination, such as customer-related intangible assets and contract-based intangible assets. January 1, 2023. Early adoption is permitted. The Company early adopted ASU 2021-08 as of January 1, 2022. The adoption of ASU 2021-08 did not have any material impact on the Company’s consolidated financial statements.
Revenue Recognition	The Company recognizes revenue when control of promised goods or services is transferred to customers. The transfer of control generally occurs upon shipment when title and risk of loss pass to the customer. The vast majority of the Company’s revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for such products, which is generally at contractually stated prices. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Performance Obligations Substantially all of the Company’s revenue is recognized at a point in time, upon shipment, rather than over time. At the request of its customers, the Company may perform professional services, generally for the maintenance and repair of products previously sold to those customers and for engineering services. Professional services for the maintenance and repair of products are typically short in duration, mostly less than one month , and generally involve a single distinct performance obligation. The related revenue is recognized at a point in time when control transfers to the customer upon completion of professional services. The consideration expected to be received in exchange for such services is typically the contractually stated amount. Certain engineering services are longer in duration and the related revenue is recognized over time. As the Company’s right to payment from a customer is based on the value of engineering services performed, the Company recognizes revenue based on the corresponding value to the customer from the Company’s performance completed to date. Revenue from engineering services aggregated to less than 3 % of the Company’s consolidated revenue during the nine months ended September 30, 2022 and October 1, 2021. The Company occasionally sells separately priced non-standard/extended warranty services or preventative maintenance plans with the sale of products. The transfer of control over the service plans is over time. The Company recognizes the related revenue ratably over the terms of the service plans. The transaction price of a contract is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using the expected cost plus a margin. Shipping & Handling Costs The Company accounts for shipping and handling activities that occur after the transfer of control over the related goods as fulfillment activities rather than performance obligations. Shipping and handling fees charged to customers are recognized as revenue and the related costs are recorded in cost of revenue at the time of transfer of control. Warranties The standard warranty periods for the Company’s products are typically 12 months to 36 months . The Company recognizes estimated liabilities associated with standard warranty periods for its products in accordance with the provisions of ASC 450, “Contingencies,” as the Company has the ability to ascertain the likelihood of the liabilities and can reasonably estimate the amount of the liabilities. A provision for the estimated cost related to standard warranties is recorded as cost of revenue at the time revenue is recognized. The Company’s estimate of the costs to service the warranty obligations is based on historical experience and expectations of future conditions. To the extent that the Company’s experience in warranty claims or costs associated with servicing those claims differ from the original estimates, revisions to the estimated warranty liabilities are recorded at that time, with offsetting adjustments to cost of revenue. Practical Expedients and Exemptions The Company expenses incremental direct costs of obtaining a contract when incurred because the expected amortization period is one year or less. These costs are recorded within selling, general and administrative expenses in the consolidated statement of operations. The Company does not adjust the promised amount of consideration for the effects of a financing component because the transfer of a promised good to a customer and the customer’s payment for that good are typically one year or less. The Company does not disclose the value of the r emaining performance obligation for contracts with an original expected length of one year or less. Contract Liabilities Contract liabilities consist of deferred revenue and advance payments from customers, including amounts that are refundable. These contract liabilities are classified as either current or long-term liabilities in the consolidated balance sheet based on the timing of when the Company expects to recognize the related revenue. As of September 30, 2022 and December 31, 2021, contract liabilities were $ 6.9 million and $ 7.3 million, respectively, and are included in accrued expenses and other current liabilities and other liabilities in the accompanying consolidated balance sheets. The decrease in the contract liability balance during the nine months ended September 30, 2022 is primarily due to $ 4.4 million of revenue recognized during the period that was included in the contract liability balance as of December 31, 2021, partially offset by cash payments received in advance of satisfying performance obligations. Disaggregated Revenue See Note 16 for the Company’s disaggregation of revenue by segment, geography and end market.

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 30, 2022
MPH Medical Devices S.R.O
Business Acquisition [Line Items]
Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation	Based upon preliminary valuation, the total purchase price for MPH was allocated as follows (in thousands): Purchase Price Allocation Cash $ 182 Accounts receivable 1,658 Inventories 957 Property, plant and equipment 12,094 Goodwill 9,863 Other assets 163 Total assets acquired 24,917 Accounts payable 562 Deferred tax liabilities 1,124 Other liabilities 664 Total liabilities assumed 2,350 Total assets acquired, net of liabilities assumed 22,567 Less: cash acquired 182 Purchase price, net of cash acquired $ 22,385

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Components of Accumulated Other Comprehensive Loss	Changes in accumulated other comprehensive loss was as follows (in thousands): Total Accumulated Other Cumulative Pension Comprehensive Translation Liability Loss Adjustments Adjustments Balance at December 31, 2021 $ ( 12,866 ) $ ( 5,753 ) $ ( 7,113 ) Other comprehensive income (loss) ( 36,363 ) ( 37,672 ) 1,309 Amounts reclassified from accumulated other comprehensive loss 302 — 302 Balance at September 30, 2022 $ ( 48,927 ) $ ( 43,425 ) $ ( 5,502 )

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings per Common Share	The following table sets forth the computation of basic and diluted earnings per common share (amounts in thousands, except per share data): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Numerators: Consolidated net income $ 22,490 $ 13,603 $ 58,789 $ 36,577 Denominators: Weighted average common shares outstanding— basic 35,729 35,447 35,625 35,366 Dilutive potential common shares 199 317 256 405 Weighted average common shares outstanding— diluted 35,928 35,764 35,881 35,771 Antidilutive potential common shares excluded from above 73 1 104 18 Earnings per Common Share: Basic $ 0.63 $ 0.38 $ 1.65 $ 1.03 Diluted $ 0.63 $ 0.38 $ 1.64 $ 1.02

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 (in thousands): Quoted Prices in Significant Other Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,596 $ 1,596 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 1,521 — 1,521 — $ 3,117 $ 1,596 $ 1,521 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 113 $ — $ — $ 113 Foreign currency forward contracts 794 — 794 — Other liabilities: Contingent considerations - Long-term 274 — — 274 $ 1,181 $ — $ 794 $ 387 The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 (in thousands): Quoted Prices in Significant Other Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,711 $ 1,711 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 137 — 137 — $ 1,848 $ 1,711 $ 137 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 47,522 $ — $ — $ 47,522 Foreign currency forward contracts 160 — 160 — Other liabilities: Contingent considerations - Long-term 3,402 — — 3,402 $ 51,084 $ — $ 160 $ 50,924
Changes in Fair Value of Level 3 Contingent Considerations	Changes in the fair value of Level 3 contingent considerations during the nine months ended September 30, 2022 were as follows (in thousands): Amount Balance at December 31, 2021 $ 50,924 Payments ( 48,725 ) Fair value adjustments ( 1,382 ) Effect of foreign exchange rates ( 430 ) Balance at September 30, 2022 $ 387

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Changes in Goodwill	The following table summarizes changes in goodwill during the nine months ended September 30, 2022 (in thousands): Balance at beginning of the period $ 479,500 Goodwill acquired from acquisitions 9,863 Effect of foreign exchange rate changes ( 24,311 ) Balance at end of the period $ 465,052
Goodwill by Reportable Segment	Goodwill by reportable segment as of September 30, 2022 was as follows (in thousands): Reportable Segment Photonics Vision Precision Total Goodwill $ 201,864 $ 162,128 $ 252,289 $ 616,281 Accumulated impairment of goodwill ( 102,461 ) ( 31,722 ) ( 17,046 ) ( 151,229 ) Total $ 99,403 $ 130,406 $ 235,243 $ 465,052 Goodwill by reportable segment as of December 31, 2021 was as follows (in thousands): Reportable Segment Photonics Vision Precision Total Goodwill $ 214,564 $ 160,675 $ 255,490 $ 630,729 Accumulated impairment of goodwill ( 102,461 ) ( 31,722 ) ( 17,046 ) ( 151,229 ) Total $ 112,103 $ 128,953 $ 238,444 $ 479,500
Intangible Assets	Intangible assets as of September 30, 2022 and December 31, 2021, respectively, are summarized as follows (in thousands): September 30, 2022 December 31, 2021 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amortizable intangible assets: Patents and developed technologies $ 178,968 $ ( 125,375 ) $ 53,593 $ 189,609 $ ( 122,130 ) $ 67,479 Customer relationships 215,274 ( 112,689 ) 102,585 228,656 ( 104,386 ) 124,270 Customer backlog 6,795 ( 6,795 ) — 6,862 ( 2,254 ) 4,608 Trademarks and trade names 22,644 ( 12,736 ) 9,908 23,976 ( 12,371 ) 11,605 Amortizable intangible assets 423,681 ( 257,595 ) 166,086 449,103 ( 241,141 ) 207,962 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 436,708 $ ( 257,595 ) $ 179,113 $ 462,130 $ ( 241,141 ) $ 220,989
Amortization Expense of Intangible Assets	Amortization expense was as follows (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Amortization expense – cost of revenue $ 3,247 $ 3,316 $ 10,004 $ 9,275 Amortization expense – operating expenses 6,472 4,139 20,987 11,300 Total amortization expense $ 9,719 $ 7,455 $ 30,991 $ 20,575
Estimated Amortization Expense	Estimated amortization expense for each of the five succeeding years and thereafter as of September 30, 2022 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Total 2022 (remainder of year) $ 3,186 $ 5,242 $ 8,428 2023 11,583 19,633 31,216 2024 9,434 16,467 25,901 2025 8,041 13,931 21,972 2026 6,750 11,835 18,585 Thereafter 14,599 45,385 59,984 Total $ 53,593 $ 112,493 $ 166,086

Supplementary Balance Sheet I_2

Supplementary Balance Sheet Information (Tables)	9 Months Ended
	Sep. 30, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Inventories	Inventories September 30, December 31, 2022 2021 Raw materials $ 112,259 $ 84,038 Work-in-process 23,978 20,600 Finished goods 25,485 19,486 Demo and consigned inventory 1,085 1,533 Total inventories $ 162,807 $ 125,657
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities September 30, December 31, 2022 2021 Accrued compensation and benefits $ 32,300 $ 24,725 Accrued warranty 4,738 4,783 Contract liabilities, current portion 6,695 6,995 Finance lease obligations 651 599 Accrued contingent considerations and earn-outs 113 47,522 Other 14,132 13,855 Total $ 58,629 $ 98,479
Accrued Warranty	Accrued Warranty Nine Months Ended September 30, October 1, 2022 2021 Balance at beginning of the period $ 4,783 $ 4,919 Provision charged to cost of revenue 2,091 1,215 Warranty liabilities acquired from acquisitions — 541 Use of provision ( 1,933 ) ( 2,075 ) Foreign currency exchange rate changes ( 203 ) ( 73 ) Balance at end of the period $ 4,738 $ 4,527
Other Long Term Liabilities	Other Long-Term Liabilities September 30, December 31, 2022 2021 Finance lease obligations $ 4,825 $ 5,309 Accrued contingent considerations and earn-outs 274 3,402 Other 1,147 927 Total $ 6,246 $ 9,638

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	Debt consisted of the following (in thousands): September 30, December 31, 2022 2021 Senior Credit Facilities – term loan $ 4,399 $ 5,126 Less: unamortized debt issuance costs ( 33 ) ( 29 ) Total current portion of long-term debt $ 4,366 $ 5,097 Senior Credit Facilities – term loan $ 71,260 $ 86,879 Senior Credit Facilities – revolving credit facility 372,287 346,579 Less: unamortized debt issuance costs ( 5,100 ) ( 4,097 ) Total long-term debt $ 438,447 $ 429,361 Total Senior Credit Facilities $ 442,813 $ 434,458

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Summary of Components of Lease Costs	The following table summarizes the components of lease costs (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Operating lease cost $ 2,544 $ 2,418 $ 7,936 $ 6,213 Finance lease cost Amortization of right-of-use assets 150 149 451 451 Interest on lease liabilities 77 85 234 257 Variable lease cost 271 275 888 834 Total lease cost $ 3,042 $ 2,927 $ 9,509 $ 7,755
Summary of Balance Sheet Information Related to Leases	The following table provides additional details of balance sheet information related to the Company’s leases (in thousands, except lease term and discount rate): September 30, December 31, 2022 2021 Operating leases Operating lease right-of-use assets $ 43,520 $ 48,338 Current portion of operating lease liabilities $ 7,663 $ 7,334 Operating lease liabilities 40,907 45,700 Total operating lease liabilities $ 48,570 $ 53,034 Finance leases Property, plant and equipment, gross $ 9,582 $ 9,582 Accumulated depreciation ( 5,520 ) ( 5,068 ) Finance lease assets included in property, plant and equipment, net $ 4,062 $ 4,514 Accrued expenses and other current liabilities $ 651 $ 599 Other liabilities 4,825 5,309 Total finance lease liabilities $ 5,476 $ 5,908 Weighted-average remaining lease term (in years): Operating leases 8.2 9.0 Finance leases 6.8 7.5 Weighted-average discount rate: Operating leases 4.67 % 4.72 % Finance leases 5.54 % 5.54 %
Summary of Cash Flow Information Related to Leases	The following table provides additional details of cash flow information related to the Company’s leases (in thousands): Nine Months Ended September 30, October 1, 2022 2021 Cash paid for amounts included in lease liabilities: Operating cash flows from finance leases $ 234 $ 257 Operating cash flows from operating leases $ 5,921 $ 5,562 Financing cash flows from finance leases $ 447 $ 9,166 Supplemental non-cash information: Right-of-use assets obtained in exchange for new operating lease liabilities $ 4,621 $ 15,340
Future Minimum Lease Payments Under Operating and Finance Leases	Future minimum lease payments under operating and finance leases expiring subsequent to September 30, 2022, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 (remainder of year) $ 2,434 $ 243 2023 9,030 930 2024 8,376 954 2025 8,013 954 2026 6,940 979 Thereafter 25,347 2,506 Total minimum lease payments 60,140 6,566 Less: Interest ( 11,570 ) ( 1,090 ) Present value of lease liabilities $ 48,570 $ 5,476

Preferred and Common Shares a_2

Preferred and Common Shares and Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-Based Compensation Expense Recorded in the Consolidated Statements of Operations	The table below summarizes share-based compensation expense recorded in the consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Selling, general and administrative $ 4,649 $ 4,360 $ 13,906 $ 13,123 Research and development and engineering 586 534 1,780 1,776 Cost of revenue 719 631 2,123 2,305 Restructuring, acquisition, and related costs — 2,965 — 2,965 Total share-based compensation expense $ 5,954 $ 8,490 $ 17,809 $ 20,169
Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions	The fair value of the TSR-PSUs at the date of grant was estimated using the Monte Carlo valuation method with the following assumptions: Nine Months Ended September 30, 2022 Grant-date stock price $ 137.29 Expected volatility 40.33 % Risk-free interest rate 1.81 % Expected annual dividend yield — Fair value $ 144.38
Schedule of Share Based Payment Award Stock Options Valuation Assumptions	The aggregate Black-Scholes fair value of $ 1.9 million for the stock options granted during the nine months ended September 30, 2022 was estimated using the following assumptions as of the grant date: Nine Months Ended September 30, 2022 Expected option term in years 4.5 Expected volatility 39.3 % Risk-free interest rate 1.83 % Expected annual dividend yield — The expected option term was calculated using the simplified method permitted under Codification of Staff Accounting Bulletins Topic 14, “Share-Based Payment”. The expected volatility was determined based on the historical volatility of the Company’s common shares over the expected option term. Risk-free interest rate was based upon treasury instrument whose term was six months longer than the expected option term. The expected annual dividend yield is zero as the Company does not have plans to issue dividends.
Amended and Restated 2010 Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted Stock Units and Deferred Stock Units Issued and Outstanding	The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2022: Shares Weighted Unvested at December 31, 2021 292 $ 115.42 Granted 118 $ 136.41 Vested ( 135 ) $ 114.12 Forfeited ( 13 ) $ 126.79 Unvested at September 30, 2022 262 $ 124.72 Expected to vest as of September 30, 2022 242
Performance-Based Awards Issued and Outstanding	The table below summarizes the activities relating to the performance-based awards issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2022: Shares Weighted Unvested at December 31, 2021 162 $ 122.26 Granted 107 $ 159.00 Vested ( 41 ) $ 108.58 Forfeited ( 10 ) $ 156.62 Unvested at September 30, 2022 218 $ 144.40 Expected to vest as of September 30, 2022 230
Stock Options Issued and Outstanding	The table below summarizes activities relating to stock options issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2022: Shares Weighted Outstanding as of December 31, 2021 60 $ 14.13 Granted 40 $ 135.86 Exercised — $ — Forfeited or expired — $ — Outstanding as of September 30, 2022 100 $ 62.77 Exercisable as of September 30, 2022 60 Expected to vest as of September 30, 2022 40

Restructuring, Acquisition, a_2

Restructuring, Acquisition, and Related Costs (Tables)	9 Months Ended
	Sep. 30, 2022
Restructuring And Related Activities [Abstract]
Schedule of Restructuring, Acquisition and Related Costs	The following table summarizes restructuring, acquisition, and related costs in the accompanying consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 2022 restructuring $ 889 $ — $ 889 $ — 2020 restructuring 887 5,185 2,119 7,688 2019 restructuring — — — 208 Total restructuring charges $ 1,776 $ 5,185 $ 3,008 $ 7,896 Acquisition and related charges ( 151 ) 2,935 ( 358 ) 8,589 Total restructuring, acquisition, and related costs $ 1,625 $ 8,120 $ 2,650 $ 16,485
Summary of Restructuring Charges by Reportable Segment	The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Photonics $ 758 $ 2,349 $ 1,952 $ 2,839 Vision 101 193 207 890 Precision Motion 22 2,643 ( 46 ) 3,959 Unallocated Corporate and Shared Services 6 — 6 — Total $ 887 $ 5,185 $ 2,119 $ 7,688
Summary of Accrual Activities by Components Related to Company's Restructuring Plans	The following table summarizes the accrual activities, by component, related to the Company’s restructuring plans recorded in the accompanying consolidated balance sheets (in thousands): Total Employee Related Facility Other Balance at December 31, 2021 $ 2,686 $ 2,107 $ 550 $ 29 Restructuring charges 3,008 1,303 1,432 273 Cash payments ( 2,519 ) ( 1,527 ) ( 722 ) ( 270 ) Non-cash charges and other adjustments ( 1,325 ) ( 163 ) ( 1,160 ) ( 2 ) Balance at September 30, 2022 $ 1,850 $ 1,720 $ 100 $ 30

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Revenue, Gross Profit, Gross Profit Margin, Operating Income (Loss), and Depreciation and Amortization Expenses by Reportable Segment	Revenue, gross profit, gross profit margin, operating income (loss), and depreciation and amortization expenses by reportable segment were as follows (in thousands, except percentage data): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Revenue 2022 2021 2022 2021 Photonics $ 70,799 $ 55,263 $ 203,042 $ 176,113 Vision 73,345 65,346 200,911 196,429 Precision Motion 78,814 57,117 238,577 135,291 Total $ 222,958 $ 177,726 $ 642,530 $ 507,833 Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Gross Profit 2022 2021 2022 2021 Photonics $ 34,699 $ 25,311 $ 94,268 $ 83,014 Vision 28,201 24,763 79,966 76,132 Precision Motion 36,832 27,743 113,846 64,694 Unallocated Corporate and Shared Services ( 1,324 ) ( 1,519 ) ( 4,151 ) ( 6,396 ) Total $ 98,408 $ 76,298 $ 283,929 $ 217,444 Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Gross Profit Margin 2022 2021 2022 2021 Photonics 49.0 % 45.8 % 46.4 % 47.1 % Vision 38.4 % 37.9 % 39.8 % 38.8 % Precision Motion 46.7 % 48.6 % 47.7 % 47.8 % Total 44.1 % 42.9 % 44.2 % 42.8 % Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Operating Income (Loss) 2022 2021 2022 2021 Photonics $ 18,351 $ 9,294 $ 45,782 $ 35,885 Vision 8,744 5,606 20,811 12,178 Precision Motion 15,800 14,957 48,222 34,681 Unallocated Corporate and Shared Services ( 14,234 ) ( 14,582 ) ( 38,580 ) ( 40,378 ) Total $ 28,661 $ 15,275 $ 76,235 $ 42,366 Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Depreciation and Amortization Expenses 2022 2021 2022 2021 Photonics $ 2,760 $ 2,901 $ 8,234 $ 8,703 Vision 4,240 5,239 12,989 15,793 Precision Motion 6,050 2,691 19,467 5,916 Unallocated Corporate and Shared Services 93 59 309 201 Total $ 13,143 $ 10,890 $ 40,999 $ 30,613
Schedule of Geographic Revenue	The Company aggregates geographic revenue based on the customer locations where products are shipped to. Revenue by geography was as follows (in thousands): Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 United States $ 99,230 $ 72,972 $ 268,585 $ 191,699 Germany 34,625 25,313 99,526 71,448 Rest of Europe 33,996 34,163 105,327 105,338 China 24,209 22,230 80,877 68,286 Rest of Asia-Pacific 26,886 21,256 74,400 64,765 Other 4,012 1,792 13,815 6,297 Total $ 222,958 $ 177,726 $ 642,530 $ 507,833
Revenue By End Market	The Company primarily operates in two end markets: the medical market and the advanced industrial market. Revenue by end market was approximately as follows: Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, 2022 2021 2022 2021 Medical 50 % 53 % 48 % 53 % Advanced Industrial 50 % 47 % 52 % 47 % Total 100 % 100 % 100 % 100 %

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Dec. 31, 2021
Revenue [Line Items]
Incremental direct costs of obtaining a contract, practical expedient	true
Effects of a financing component, practical expedient	true
Remaining performance obligation for contracts, optional exemption	true
Adoption of Topic 606
Revenue [Line Items]
Contract liabilities	$ 6.9		$ 7.3
Revenue recognized			$ 4.4
Warranties
Revenue [Line Items]
Standard product warranty description	The standard warranty periods for the Company’s products are typically 12 months to 36 months. The Company recognizes estimated liabilities associated with standard warranty periods for its products in accordance with the provisions of ASC 450, “Contingencies,” as the Company has the ability to ascertain the likelihood of the liabilities and can reasonably estimate the amount of the liabilities.
Maximum | Warranties
Revenue [Line Items]
Standard warranty period on products	36 months
Maximum | Maintenance and Repair of Products
Revenue [Line Items]
Percentage of revenue for professional services	3%	3%
Duration of engineering services performed under customer contract	1 month
Minimum [Member] | Warranties
Revenue [Line Items]
Standard warranty period on products	12 months

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ in Thousands, € in Millions			3 Months Ended		9 Months Ended
	Aug. 11, 2022 USD ($)	Aug. 11, 2022 EUR (€)	Sep. 30, 2022 USD ($)	Oct. 01, 2021 USD ($)	Sep. 30, 2022 USD ($)	Oct. 01, 2021 USD ($)	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Goodwill			$ 465,052		$ 465,052		$ 479,500
Acquisition costs			(151)	$ 2,935	(358)	$ 8,589
MPH Medical Devices S.R.O
Business Acquisition [Line Items]
Business acquisition, date of acquisition	Aug. 11, 2022	Aug. 11, 2022
Percentage of shares acquired	100%
Total purchase price, net of cash acquired	$ 22,400	€ 21.8
Goodwill	$ 9,863
Revenues					2,100
Profit before income taxes					200
Acquisition costs			$ 800		$ 900

Business Combinations - Summary

Business Combinations - Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation (Details) - USD ($) $ in Thousands	Aug. 11, 2022	Sep. 30, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill		$ 465,052	$ 479,500
MPH Medical Devices S.R.O
Business Acquisition [Line Items]
Cash	$ 182
Accounts receivable	1,658
Inventories	957
Property, plant and equipment	12,094
Goodwill	9,863
Other assets	163
Total assets acquired	24,917
Accounts payable	562
Deferred tax liabilities	1,124
Other liabilities	664
Total liabilities assumed	2,350
Total assets acquired, net of liabilities assumed	22,567
Less: cash acquired	182
Purchase price, net of cash acquired	$ 22,385

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ 521,291
Other comprehensive income (loss)	(36,363)
Amounts reclassified from accumulated other comprehensive loss	302
Ending Balance	542,202
Total Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(12,866)
Ending Balance	(48,927)
Cumulative Translation Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(5,753)
Other comprehensive income (loss)	(37,672)
Ending Balance	(43,425)
Pension Liability Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(7,113)
Other comprehensive income (loss)	1,309
Amounts reclassified from accumulated other comprehensive loss	302
Ending Balance	$ (5,502)

Computation of Basic and Dilute

Computation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Numerators:
Consolidated net income	$ 22,490	$ 13,603	$ 58,789	$ 36,577
Denominators:
Weighted average common shares outstanding—basic	35,729	35,447	35,625	35,366
Dilutive potential common shares	199	317	256	405
Weighted average common shares outstanding— diluted	35,928	35,764	35,881	35,771
Antidilutive potential common shares excluded from above	73	1	104	18
Earnings per common share (Note 5):
Basic	$ 0.63	$ 0.38	$ 1.65	$ 1.03
Diluted	$ 0.63	$ 0.38	$ 1.64	$ 1.02

Earnings per Common Share - Add

Earnings per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended	9 Months Ended
	Oct. 01, 2021	Oct. 01, 2021	Sep. 30, 2022
EPS Performance-based Restricted Stock Units
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of weighted average common shares outstanding	45	45	36
Operating Cash Flow Performance-based Restricted Stock Units
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of weighted average common shares outstanding	37	37	37
ATI Industrial Automation, Inc. | Performance-based Restricted Stock Units
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of weighted average common shares outstanding			51
Laser Quantum | Restricted Stock
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of weighted average common shares outstanding	213	213

Fair Value Measurements - Busin

Fair Value Measurements - Business Combination Contingent Consideration - Additional Information (Details) $ in Thousands	1 Months Ended											9 Months Ended
	Aug. 31, 2022 USD ($)	Jul. 31, 2022 USD ($)	Jul. 31, 2022 EUR (€)	Mar. 31, 2022 USD ($)	Mar. 31, 2022 EUR (€)	May 31, 2021 USD ($)	May 31, 2021 EUR (€)	Mar. 31, 2021 USD ($)	Mar. 31, 2021 EUR (€)	May 31, 2020 USD ($)	May 31, 2020 EUR (€)	Sep. 30, 2022 USD ($)	Oct. 01, 2021 USD ($)	Sep. 30, 2022 EUR (€)	Jul. 01, 2022 USD ($)	Jul. 01, 2022 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 EUR (€)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 EUR (€)	Jul. 31, 2019 USD ($)	Jul. 31, 2019 EUR (€)	Apr. 16, 2019 USD ($)	Apr. 16, 2019 EUR (€)
Business Acquisition [Line Items]
Estimated payment for contingent consideration												$ 46,254	$ 1,836
ATI Industrial Automation, Inc.
Business Acquisition [Line Items]
Fair value of contingent consideration												45,000					$ 44,000
Payment for contingent consideration liability	$ 45,000
Estimated payment for contingent consideration												44,000
Fair value adjustment payout cash outflows from operating activities												1,000
ARGES GmbH
Business Acquisition [Line Items]
Fair value of contingent consideration												$ 400		€ 400,000			3,800	€ 3,300,000	$ 5,100	€ 4,100,000	$ 7,900	€ 7,100,000
Undiscounted low range of contingent consideration | €																						0
Undiscounted high range of contingent consideration																					$ 11,100	€ 10,000,000
Estimated payment for contingent consideration		$ 1,900	€ 1,800,000	$ 400	€ 300,000			$ 400	€ 400,000
Ingenia-CAT, S.L.
Business Acquisition [Line Items]
Fair value of contingent consideration															$ 1,900	€ 1,800,000	$ 1,700	€ 1,500,000	$ 2,900	€ 2,300,000			$ 6,600	€ 5,800,000
Undiscounted low range of contingent consideration | €																								0
Undiscounted high range of contingent consideration																							$ 9,000	€ 8,000,000
Estimated payment for contingent consideration						$ 1,400	€ 1,200,000			$ 1,100	€ 1,000,000

Fair Value Measurements - Asset

Fair Value Measurements - Asset Acquisition Contingent Consideration - Additional Information (Details) $ in Millions	1 Months Ended						9 Months Ended
	Mar. 31, 2022 EUR (€)	Mar. 31, 2022 USD ($)	Feb. 28, 2021 EUR (€)	Feb. 28, 2021 USD ($)	Feb. 29, 2020 EUR (€)	Feb. 29, 2020 USD ($)	Sep. 30, 2022 Installment	Dec. 31, 2021 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 14, 2016 EUR (€)	Dec. 14, 2016 USD ($)
Asset Acquisition Contingent Consideration [Line Items]
Payment for contingent consideration	€ 1,300,000	$ 1.5	€ 1,800,000	$ 2.2	€ 2,400,000	$ 2.6
Video Signal Processing and Management Technologies
Asset Acquisition Contingent Consideration [Line Items]
Date of Acquisition Agreement							Dec. 14, 2016
Number of contingent consideration annual installments | Installment							4
Undiscounted range of outcomes, minimum | €										€ 0
Undiscounted range of outcomes, maximum										€ 5,500,000	$ 6.6
Aggregate fair value of acquired assets								€ 5,500,000	$ 6.3

Fair Values of Assets and Liabi

Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets
Cash equivalents	$ 1,596	$ 1,711
Assets, fair value	3,117	1,848
Liabilities
Liabilities, fair value	1,181	51,084
Prepaid Expenses and Other Current Assets
Assets
Foreign currency forward contracts	1,521	137
Accrued Expenses and Other Current Liabilities
Liabilities
Contingent considerations - Current	113	47,522
Foreign currency forward contracts	794	160
Other Liabilities
Liabilities
Contingent considerations - Long-term	274	3,402
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash equivalents	1,596	1,711
Assets, fair value	1,596	1,711
Significant Other Observable Inputs (Level 2)
Assets
Assets, fair value	1,521	137
Liabilities
Liabilities, fair value	794	160
Significant Other Observable Inputs (Level 2) | Prepaid Expenses and Other Current Assets
Assets
Foreign currency forward contracts	1,521	137
Significant Other Observable Inputs (Level 2) | Accrued Expenses and Other Current Liabilities
Liabilities
Foreign currency forward contracts	794	160
Significant Other Unobservable Inputs (Level 3)
Liabilities
Liabilities, fair value	387	50,924
Significant Other Unobservable Inputs (Level 3) | Accrued Expenses and Other Current Liabilities
Liabilities
Contingent considerations - Current	113	47,522
Significant Other Unobservable Inputs (Level 3) | Other Liabilities
Liabilities
Contingent considerations - Long-term	$ 274	$ 3,402

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Fair Value of Level 3 Contingent Considerations (Details) - Significant Other Unobservable Inputs (Level 3) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 50,924
Payments	(48,725)
Fair value adjustments	(1,382)
Effect of foreign exchange rates	(430)
Ending balance	$ 387

Foreign Currency Contracts - Ad

Foreign Currency Contracts - Additional Information (Details) - Foreign Currency Forward Contracts - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021	Dec. 31, 2021
Derivative [Line Items]
Notional amount of foreign currency forward contracts	$ 87,300,000		$ 87,300,000		$ 50,000,000
Net gain (loss) on foreign currency forward contracts			700,000
Foreign Exchange Transaction Gains (Losses)
Derivative [Line Items]
Net gain (loss) on foreign currency forward contracts	$ (800,000)	$ 300,000	$ (2,300,000)	$ 900,000
Maximum
Derivative [Line Items]
Net gain (loss) on foreign currency forward contracts					$ (100,000)

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Details)	3 Months Ended
	Jul. 01, 2022 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment of goodwill and intangible assets	$ 0

Summary of Changes in Goodwill

Summary of Changes in Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Balance at beginning of the period	$ 479,500
Goodwill acquired from acquisitions	9,863
Effect of foreign exchange rate changes	(24,311)
Balance at end of the period	$ 465,052

Goodwill By Reportable Segment

Goodwill By Reportable Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill	$ 616,281	$ 630,729
Accumulated impairment of goodwill	(151,229)	(151,229)
Total	465,052	479,500
Photonics
Goodwill [Line Items]
Goodwill	201,864	214,564
Accumulated impairment of goodwill	(102,461)	(102,461)
Total	99,403	112,103
Vision
Goodwill [Line Items]
Goodwill	162,128	160,675
Accumulated impairment of goodwill	(31,722)	(31,722)
Total	130,406	128,953
Precision Motion
Goodwill [Line Items]
Goodwill	252,289	255,490
Accumulated impairment of goodwill	(17,046)	(17,046)
Total	$ 235,243	$ 238,444

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	$ 423,681	$ 449,103
Amortizable intangible assets, accumulated amortization	(257,595)	(241,141)
Amortizable intangible assets, net carrying amount	166,086	207,962
Non-amortizable intangible assets	13,027	13,027
Gross carrying amount	436,708	462,130
Net carrying amount	179,113	220,989
Patents and Developed Technologies
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	178,968	189,609
Amortizable intangible assets, accumulated amortization	(125,375)	(122,130)
Amortizable intangible assets, net carrying amount	53,593	67,479
Customer Relationships
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	215,274	228,656
Amortizable intangible assets, accumulated amortization	(112,689)	(104,386)
Amortizable intangible assets, net carrying amount	102,585	124,270
Customer Backlog
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	6,795	6,862
Amortizable intangible assets, accumulated amortization	(6,795)	(2,254)
Amortizable intangible assets, net carrying amount		4,608
Trademarks and Trade Names
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	22,644	23,976
Amortizable intangible assets, accumulated amortization	(12,736)	(12,371)
Amortizable intangible assets, net carrying amount	$ 9,908	$ 11,605

Amortization Expense of Intangi

Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense – cost of revenue	$ 3,247	$ 3,316	$ 10,004	$ 9,275
Amortization expense - operating expenses	6,472	4,139	20,987	11,300
Total amortization expense	$ 9,719	$ 7,455	$ 30,991	$ 20,575

Estimated Amortization Expense

Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
2022 (remainder of year)	$ 8,428
2023	31,216
2024	25,901
2025	21,972
2026	18,585
Thereafter	59,984
Amortizable intangible assets, net carrying amount	166,086	$ 207,962
Cost of Revenue
Finite Lived Intangible Assets [Line Items]
2022 (remainder of year)	3,186
2023	11,583
2024	9,434
2025	8,041
2026	6,750
Thereafter	14,599
Amortizable intangible assets, net carrying amount	53,593
Operating Expenses
Finite Lived Intangible Assets [Line Items]
2022 (remainder of year)	5,242
2023	19,633
2024	16,467
2025	13,931
2026	11,835
Thereafter	45,385
Amortizable intangible assets, net carrying amount	$ 112,493

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 112,259	$ 84,038
Work-in-process	23,978	20,600
Finished goods	25,485	19,486
Demo and consigned inventory	1,085	1,533
Total inventories	$ 162,807	$ 125,657

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jan. 01, 2022	Dec. 31, 2021	Oct. 01, 2021	Jan. 02, 2021
Other Liabilities Disclosure [Abstract]
Accrued compensation and benefits	$ 32,300		$ 24,725
Accrued warranty	4,738	$ 4,783	4,783	$ 4,527	$ 4,919
Contract liabilities, current portion	6,695		6,995
Finance lease obligations	651		599
Accrued contingent considerations and earn-outs	113		47,522
Other	14,132		13,855
Total	$ 58,629		$ 98,479

Accrued Warranty (Details)

Accrued Warranty (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021
Product Warranties Disclosures [Abstract]
Balance at beginning of the period	$ 4,783
Provision charged to cost of revenue	2,091	$ 1,215
Warranty liabilities acquired from acquisitions		541
Use of provision	(1,933)	(2,075)
Foreign currency exchange rate changes	(203)	(73)
Balance at end of the period	$ 4,738	$ 4,527

Other Long Term Liabilities (De

Other Long Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Other Liabilities Disclosure [Abstract]
Finance lease obligations	$ 4,825	$ 5,309
Accrued contingent considerations and earn-outs	274	3,402
Other	1,147	927
Total	$ 6,246	$ 9,638

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total current portion of long-term debt	$ 4,366	$ 5,097
Total long-term debt	438,447	429,361
Total Senior Credit Facilities	442,813	434,458
Term Loan
Debt Instrument [Line Items]
Current portion of long-term debt, Gross	4,399	5,126
Long-term debt, Gross	71,260	86,879
Term Loan And Revolving Credit Facility
Debt Instrument [Line Items]
Less: unamortized debt issuance costs	(33)	(29)
Less: unamortized debt issuance costs	(5,100)	(4,097)
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, Gross	$ 372,287	$ 346,579

Debt - Additional Information (

Debt - Additional Information (Details)			1 Months Ended	9 Months Ended
	Mar. 10, 2022 USD ($)	Dec. 31, 2019 USD ($)	Mar. 31, 2020 EUR (€)	Sep. 30, 2022 USD ($)	Sep. 30, 2022 EUR (€)	Oct. 01, 2021 USD ($)	Oct. 05, 2021 USD ($)	Mar. 27, 2020 USD ($)	Dec. 31, 2019 EUR (€)
Debt Instrument [Line Items]
Repayment of debt				$ 37,791,000		$ 24,036,000
Term Loan
Debt Instrument [Line Items]
Repayment of debt				$ 3,500,000	€ 3,400,000
Third Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 450,000,000
Third Amended and Restated Credit Agreement | First Amendment Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity								$ 495,000,000
Increased in line of credit facility								145,000,000
Line of credit facility accordion potential feature								$ 200,000,000
Third Amended and Restated Credit Agreement | Term Loan
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 100,000,000							€ 90,200,000
Senior credit facilities maturity period		5 years
Senior credit facilities, maturity month and year		2024-12
Debt instrument, frequency of periodic payment			quarterly
Quarterly installments payable on term loan | €			€ 1,100,000
Third Amended and Restated Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 350,000,000
Senior credit facilities maturity period		5 years
Senior credit facilities, maturity month and year		2024-12		2027-03	2027-03
Line of credit facility accordion potential feature		$ 200,000,000
Repayment of debt				$ 34,300,000
Third Amended and Restated Credit Agreement | Fourth Amendment Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity							$ 695,000,000
Increased in line of credit facility							200,000,000
Line of credit facility accordion potential feature							$ 200,000,000
Third Amended and Restated Credit Agreement | Fifth Amendment Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility accordion potential feature	$ 350,000,000
Deferred financing costs capitalized	2,500,000
Loss from write-off of portion of unamortized deferred financing costs	$ 600,000

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021
Lessee Lease Description [Line Items]
Lease renewal terms and termination description	Certain leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years, and options to terminate the leases within one year.
Purchase of building under finance lease		$ 8,743
Minimum
Lessee Lease Description [Line Items]
Lease agreement expiration year	2022
Lease renewal terms	1 year
Maximum
Lessee Lease Description [Line Items]
Lease agreement expiration year	2036
Lease renewal terms	10 years
Lease termination period	1 year
Land | Maximum
Lessee Lease Description [Line Items]
Lease agreement expiration year	2078

Summary of Components of Lease

Summary of Components of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Leases [Abstract]
Operating lease cost	$ 2,544	$ 2,418	$ 7,936	$ 6,213
Finance lease cost
Amortization of right-of-use assets	150	149	451	451
Interest on lease liabilities	77	85	234	257
Variable lease cost	271	275	888	834
Total lease cost	$ 3,042	$ 2,927	$ 9,509	$ 7,755

Summary of Balance Sheet Inform

Summary of Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Operating leases
Operating lease right-of-use assets	$ 43,520	$ 48,338
Current portion of operating lease liabilities	7,663	7,334
Operating lease liabilities	40,907	45,700
Total operating lease liabilities	48,570	53,034
Finance leases
Finance lease right-of-use assets gross	9,582	9,582
Finance lease right-of-use assets accumulated depreciation	(5,520)	(5,068)
Finance lease assets included in property, plant and equipment, net	$ 4,062	$ 4,514
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	http://fasb.org/us-gaap/2021-01-31#PropertyPlantAndEquipmentNet	http://fasb.org/us-gaap/2021-01-31#PropertyPlantAndEquipmentNet
Current portion of finance lease liabilities	$ 651	$ 599
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	http://fasb.org/us-gaap/2021-01-31#OtherAccruedLiabilitiesCurrent	http://fasb.org/us-gaap/2021-01-31#OtherAccruedLiabilitiesCurrent
Noncurrent portion of finance lease liabilities	$ 4,825	$ 5,309
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	http://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrent	http://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrent
Total finance lease liabilities	$ 5,476	$ 5,908
Weighted-average remaining lease term (in years):
Operating leases	8 years 2 months 12 days	9 years
Finance leases	6 years 9 months 18 days	7 years 6 months
Weighted-average discount rate:
Operating leases	4.67%	4.72%
Finance leases	5.54%	5.54%

Summary of Cash Flow Informatio

Summary of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021
Cash paid for amounts included in lease liabilities:
Operating cash flows from finance leases	$ 234	$ 257
Operating cash flows from operating leases	5,921	5,562
Financing cash flows from finance leases	447	9,166
Supplemental non-cash information:
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 4,621	$ 15,340

Future Minimum Lease Payments U

Future Minimum Lease Payments Under Operating and Finance Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Operating Lease
2022 (remainder of year)	$ 2,434
2023	9,030
2024	8,376
2025	8,013
2026	6,940
Thereafter	25,347
Total minimum lease payments	60,140
Less: Interest	(11,570)
Present value of lease liabilities	48,570	$ 53,034
Finance Lease
2022 (remainder of year)	243
2023	930
2024	954
2025	954
2026	979
Thereafter	2,506
Total minimum lease payments	6,566
Less: Interest	(1,090)
Present value of lease liabilities	$ 5,476	$ 5,908

Preferred and Common Shares a_3

Preferred and Common Shares and Share-based Compensation - Additional Information (Details) - USD ($)

1 Months Ended

3 Months Ended

9 Months Ended

44 Months Ended

Feb. 28, 2022

Jan. 31, 2022

May 31, 2021

Sep. 30, 2022

Jul. 01, 2022

Oct. 01, 2021

Sep. 30, 2022

Oct. 01, 2021

Sep. 30, 2021

Jul. 01, 2022

Dec. 31, 2021

Feb. 29, 2020

Oct. 31, 2018

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Preferred shares, Authorized

7,000,000

7,000,000

7,000,000

7,000,000

Preferred shares, voting rights

one vote per share

Preferred shares, Issued

0

0

0

Preferred shares, outstanding

0

0

0

Repurchase of common stock

$ 10,000,000

Share-based compensation expense recognized

$ 5,954,000

$ 8,490,000

$ 20,169,000

$ 17,809,000

Selling, General and Administrative Expenses

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Share-based compensation expense recognized

$ 4,649,000

$ 4,360,000

13,123,000

$ 13,906,000

Share-Based Payment Arrangement, Option

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Fair value of stock options granted

$ 1,900,000

Expected annual dividend yield

0%

TSR Performance-based Restricted Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Expected annual dividend yield

0%

Amended and Restated 2010 Incentive Plan | Deferred Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Number of outstanding shares

38,000

38,000

91,000

Conversion of stock, converted to common shares

52,000

Amended and Restated 2010 Incentive Plan | Share-Based Payment Arrangement, Option

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting/Performance period

3 years

Stock options, Granted

40,000

40,000

Stock options, Expiration Period

7 years

Amended and Restated 2010 Incentive Plan | Restricted Stock Units and Deferred Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Total fair value of stock units vested

$ 18,100,000

Amended and Restated 2010 Incentive Plan | Restricted Stock Units and Deferred Stock Units | Board of Directors | Selling, General and Administrative Expenses

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Share-based compensation expense recognized

$ 1,100,000

$ 1,100,000

Amended and Restated 2010 Incentive Plan | Restricted Stock Units (RSUs) | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting/Performance period

5 years

Amended and Restated 2010 Incentive Plan | Restricted Stock Units (RSUs) | Minimum [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting/Performance period

0 years

Amended and Restated 2010 Incentive Plan | EPS Performance-based Restricted Stock Units | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Range of percentage of shares to be issued upon settlement following vesting of target number of shares

200%

Amended and Restated 2010 Incentive Plan | EPS Performance-based Restricted Stock Units | Minimum [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Range of percentage of shares to be issued upon settlement following vesting of target number of shares

0%

Amended and Restated 2010 Incentive Plan | TSR Performance-based Restricted Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting/Performance period

3 years

Amended and Restated 2010 Incentive Plan | TSR Performance-based Restricted Stock Units | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Range of percentage of shares to be issued upon settlement following vesting of target number of shares

200%

Amended and Restated 2010 Incentive Plan | TSR Performance-based Restricted Stock Units | Minimum [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Range of percentage of shares to be issued upon settlement following vesting of target number of shares

0%

Amended and Restated 2010 Incentive Plan | ATI Performance-based Restricted Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting/Performance period

4 years

Amended and Restated 2010 Incentive Plan | ATI Performance-based Restricted Stock Units | Maximum

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Range of percentage of shares to be issued upon settlement following vesting of target number of shares

100%

Amended and Restated 2010 Incentive Plan | ATI Performance-based Restricted Stock Units | Minimum [Member]

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Range of percentage of shares to be issued upon settlement following vesting of target number of shares

0%

Amended and Restated 2010 Incentive Plan | Performance Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Total fair value of stock units vested

$ 7,200,000

Maximum number of common shares to be earned under these PSU grants

343,000

343,000

Amended and Restated 2010 Incentive Plan | EPS and TSR Performance Stock Units

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Vesting/Performance period

3 years

2018 Repurchase Plan

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Common stock repurchase program authorized amount

$ 25,000,000

Shares repurchased

80,000

264,000

Repurchase of common stock

$ 9,500,000

$ 25,000,000

Shares repurchased, average cost per share

$ 118.97

$ 94.57

2020 Repurchase Plan

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Common stock repurchase program authorized amount

$ 50,000,000

Shares repurchased

4,000

Repurchase of common stock

$ 500,000

Shares repurchased, average cost per share

$ 116.95

Available for share repurchases

$ 49,500,000

$ 49,500,000

Share-Based Compensation Expens

Share-Based Compensation Expense Recorded in the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Oct. 01, 2021	Sep. 30, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 5,954	$ 8,490	$ 20,169	$ 17,809
Selling, general and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	4,649	4,360	13,123	13,906
Research and development and engineering
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	586	534	1,776	1,780
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	719	631	2,305	2,123
Restructuring, acquisition, and related costs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense		$ 2,965	$ 2,965

Restricted Stock Units and Defe

Restricted Stock Units and Deferred Stock Units Issued and Outstanding (Details) - Amended and Restated 2010 Incentive Plan - Restricted Stock Units and Deferred Stock Units shares in Thousands	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Restricted Stock Units
Unvested, Beginning Balance	292
Granted	118
Vested	(135)
Forfeited	(13)
Unvested, Ending Balance	262
Expected to vest at end of period	242
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 115.42
Granted | $ / shares	136.41
Vested | $ / shares	114.12
Forfeited | $ / shares	126.79
Unvested, Ending Balance | $ / shares	$ 124.72

Performance-Based Awards Issued

Performance-Based Awards Issued and Outstanding (Details) - Amended and Restated 2010 Incentive Plan - Performance Stock Units shares in Thousands	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Performance-based Awards
Unvested, Beginning Balance	162
Granted	107
Vested	(41)
Forfeited	(10)
Unvested, Ending Balance	218
Expected to vest at end of period	230
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 122.26
Granted | $ / shares	159
Vested | $ / shares	108.58
Forfeited | $ / shares	156.62
Unvested, Ending Balance | $ / shares	$ 144.40

Fair Value of TSR Performance-B

Fair Value of TSR Performance-Based Restricted Stock Units Estimated Using Monte-Carol Valuation Method (Details) - TSR Performance-based Restricted Stock Units	9 Months Ended
	Sep. 30, 2022 $ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant-date stock price	$ 137.29
Expected volatility	40.33%
Risk-free interest rate	1.81%
Expected annual dividend yield	0%
Fair value	$ 144.38

Stock Options Issued and Outsta

Stock Options Issued and Outstanding (Details) - Amended and Restated 2010 Incentive Plan - Share-Based Payment Arrangement, Option - $ / shares shares in Thousands	1 Months Ended	9 Months Ended
	Feb. 28, 2022	Sep. 30, 2022
Stock options
Outstanding as of December 31, 2021		60
Stock options, Granted	40	40
Outstanding as of July 1, 2022		100
Exercisable as of July 1, 2022		60
Expected to vest as of July 1, 2022		40
Weighted Average Exercise Price
Outstanding as of December 31, 2021		$ 14.13
Granted		135.86
Outstanding as of July 1, 2022		$ 62.77

Fair Value of Stock Options Gra

Fair Value of Stock Options Granted Estimated Using Black-Scholes Valuation Model (Details) - Share-Based Payment Arrangement, Option	9 Months Ended
	Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected option term in years	4 years 6 months
Expected volatility	39.30%
Risk-free interest rate	1.83%
Expected annual dividend yield	0%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Income Taxes [Line Items]
Effective tax rate on income from operations	16%	(0.60%)	13.80%	2%
Effective tax rate on income from operations			0.20%	14.50%
Research And Development Expense	$ 21,349	$ 17,468	$ 63,866	$ 53,104
Research and Development Expense
Income Taxes [Line Items]
Effective tax rate on income from operations			3.80%
Deferred tax assets recognized	$ 9,200		$ 9,200
Canada Revenue Agency | CANADA
Income Taxes [Line Items]
Statutory tax rate	29%	29%	29%	29%

Schedule of Restructuring, Acqu

Schedule of Restructuring, Acquisition and Related Costs (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Restructuring Cost And Reserve [Line Items]
Total restructuring charges	$ 1,776,000	$ 5,185,000	$ 3,008,000	$ 7,896,000
Acquisition and related charges	(151,000)	2,935,000	(358,000)	8,589,000
Total restructuring, acquisition, and related costs	1,625,000	8,120,000	2,650,000	16,485,000
2022 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring charges	889,000		889,000
2020 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring charges	887,000	$ 5,185,000	2,119,000	7,688,000
2019 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring charges	$ 0		$ 0	$ 208,000

Restructuring, Acquisition, a_3

Restructuring, Acquisition, and Related Costs - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021	Dec. 31, 2021
Restructuring, Acquisition, and Related Costs [Line Items]
Total restructuring charges	$ 1,776,000	$ 5,185,000	$ 3,008,000	$ 7,896,000
Acquisition and related charges	(151,000)	2,935,000	(358,000)	8,589,000
Earn out expense (income) recognized	(1,000,000)		(1,400,000)	1,900,000
Legal costs	0	100,000	0	1,900,000
Maximum
Restructuring, Acquisition, and Related Costs [Line Items]
Earn out expense (income) recognized		(100,000)
Maximum | Finders' Fees, Legal, Valuation And Other Professional Or Consulting Fees
Restructuring, Acquisition, and Related Costs [Line Items]
Acquisition and related charges	800,000	2,900,000	$ 1,100,000	4,700,000
Severance Costs
Restructuring, Acquisition, and Related Costs [Line Items]
Total restructuring charges	900,000
2022 Restructuring
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring and related cost description			As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2022 restructuring program in the third quarter of 2022. This program is focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program is focused on cost reduction actions that improve gross margins for the overall company in line with the Company's multi-year gross margin expansion program. During the three months ended September 30, 2022, the Company recorded $0.9 million in severance costs in connection with the 2022 restructuring program. The $0.9 million severance costs were included in the Company's Photonics segment. As of September 30, 2022, the Company had incurred cumulative costs related to this restructuring plan totaling $0.9 million. The Company anticipates substantially completing the 2022 restructuring program by the end of 2023 and expects to incur additional restructuring charges of $5.0 million to $6.0 million related to the 2022 restructuring program.
Total restructuring charges	889,000		$ 889,000
Restructuring cumulative costs incurred	900,000		900,000
2022 Restructuring | Minimum [Member]
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring costs	5,000,000		5,000,000
2022 Restructuring | Maximum
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring costs	6,000,000		$ 6,000,000
2022 Restructuring | Severance Costs | Photonics [Member]
Restructuring, Acquisition, and Related Costs [Line Items]
Total restructuring charges	900,000
2020 Restructuring
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring and related cost description			As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program is focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program is focused on cost reduction actions that improve gross margins for the overall company. During the three and nine months ended September 30, 2022, the Company recorded $0.9 million and $2.1 million, respectively, in severance and other costs in connection with the 2020 restructuring program. As of September 30, 2022, the Company had incurred cumulative costs related to this restructuring plan totaling $10.2 million. The Company anticipates substantially completing the 2020 restructuring program in the first quarter of 2023 and expects to incur additional restructuring charges of $1.5 million to $2.0 million related to the 2020 restructuring program.
Total restructuring charges	887,000	5,185,000	$ 2,119,000	7,688,000
Restructuring cumulative costs incurred	10,200,000		10,200,000
2020 Restructuring | Photonics [Member]
Restructuring, Acquisition, and Related Costs [Line Items]
Total restructuring charges	758,000	$ 2,349,000	1,952,000	2,839,000
2020 Restructuring | Minimum [Member]
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring costs	1,500,000		1,500,000
2020 Restructuring | Maximum
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring costs	2,000,000		2,000,000
2020 Restructuring | Employee Severance and Other Costs
Restructuring, Acquisition, and Related Costs [Line Items]
Total restructuring charges	900		$ 2,100,000
2019 Restructuring
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring and related cost description			During the fourth quarter of 2018, the Company implemented a restructuring plan intended to realign operations, reduce costs, achieve operational efficiencies and focus resources on growth initiatives (the “2019 restructuring plan”). The Company did not incur any costs related to the 2019 restructuring plan during the three and nine months ended September 30, 2022. As of December 31, 2021, the Company incurred cumulative costs related to this restructuring plan totaling $9.0 million. The 2019 restructuring program was completed in 2021.
Total restructuring charges	$ 0		$ 0	$ 208,000
Restructuring cumulative costs incurred					$ 9,000,000

Summary of Restructuring Charge

Summary of Restructuring Charges by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Restructuring Cost And Reserve [Line Items]
Restructuring costs	$ 1,776	$ 5,185	$ 3,008	$ 7,896
Unallocated Corporate and Shared Services
Restructuring Cost And Reserve [Line Items]
Restructuring costs	6		6
2022 Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring costs	889		889
2020 Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring costs	887	5,185	2,119	7,688
2020 Restructuring | Photonics
Restructuring Cost And Reserve [Line Items]
Restructuring costs	758	2,349	1,952	2,839
2020 Restructuring | Vision
Restructuring Cost And Reserve [Line Items]
Restructuring costs	101	193	207	890
2020 Restructuring | Precision Motion
Restructuring Cost And Reserve [Line Items]
Restructuring costs	$ 22	$ 2,643	$ (46)	$ 3,959

Summary of Accrual Activities b

Summary of Accrual Activities by Components Related to Company's Restructuring Charges (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	$ 2,686
Restructuring charges	3,008
Cash payments	(2,519)
Non-cash charges and other adjustments	(1,325)
Accrued expense ending balance	1,850
Employee Related
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	2,107
Restructuring charges	1,303
Cash payments	(1,527)
Non-cash charges and other adjustments	(163)
Accrued expense ending balance	1,720
Facility
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	550
Restructuring charges	1,432
Cash payments	(722)
Non-cash charges and other adjustments	(1,160)
Accrued expense ending balance	100
Other Restructuring Charges
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	29
Restructuring charges	273
Cash payments	(270)
Non-cash charges and other adjustments	(2)
Accrued expense ending balance	$ 30

Segment Information - Additiona

Segment Information - Additional Information (Details)	9 Months Ended
	Sep. 30, 2022 EndMarket Segment
Segment Reporting [Abstract]
Number of reportable segments | Segment	3
Number of primary end market segments | EndMarket	2

Revenue, Gross Profit, Gross Pr

Revenue, Gross Profit, Gross Profit Margin and Operating Income (Loss) by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Segment Reporting Information [Line Items]
Revenue	$ 222,958	$ 177,726	$ 642,530	$ 507,833
Gross Profit	$ 98,408	$ 76,298	$ 283,929	$ 217,444
Gross profit margin percentage	44.10%	42.90%	44.20%	42.80%
Operating Income (Loss)	$ 28,661	$ 15,275	$ 76,235	$ 42,366
Operating Segments | Photonics
Segment Reporting Information [Line Items]
Revenue	70,799	55,263	203,042	176,113
Gross Profit	$ 34,699	$ 25,311	$ 94,268	$ 83,014
Gross profit margin percentage	49%	45.80%	46.40%	47.10%
Operating Income (Loss)	$ 18,351	$ 9,294	$ 45,782	$ 35,885
Operating Segments | Vision
Segment Reporting Information [Line Items]
Revenue	73,345	65,346	200,911	196,429
Gross Profit	$ 28,201	$ 24,763	$ 79,966	$ 76,132
Gross profit margin percentage	38.40%	37.90%	39.80%	38.80%
Operating Income (Loss)	$ 8,744	$ 5,606	$ 20,811	$ 12,178
Operating Segments | Precision Motion
Segment Reporting Information [Line Items]
Revenue	78,814	57,117	238,577	135,291
Gross Profit	$ 36,832	$ 27,743	$ 113,846	$ 64,694
Gross profit margin percentage	46.70%	48.60%	47.70%	47.80%
Operating Income (Loss)	$ 15,800	$ 14,957	$ 48,222	$ 34,681
Unallocated Corporate and Shared Services
Segment Reporting Information [Line Items]
Gross Profit	(1,324)	(1,519)	(4,151)	(6,396)
Operating Income (Loss)	$ (14,234)	$ (14,582)	$ (38,580)	$ (40,378)

Depreciation and Amortization E

Depreciation and Amortization Expenses by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Depreciation and Amortization Expenses
Depreciation and amortization expenses	$ 13,143	$ 10,890	$ 40,999	$ 30,613
Unallocated Corporate and Shared Services
Depreciation and Amortization Expenses
Depreciation and amortization expenses	93	59	309	201
Photonics | Operating Segments
Depreciation and Amortization Expenses
Depreciation and amortization expenses	2,760	2,901	8,234	8,703
Vision | Operating Segments
Depreciation and Amortization Expenses
Depreciation and amortization expenses	4,240	5,239	12,989	15,793
Precision Motion | Operating Segments
Depreciation and Amortization Expenses
Depreciation and amortization expenses	$ 6,050	$ 2,691	$ 19,467	$ 5,916

Schedule of Geographic Revenue

Schedule of Geographic Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Segment Reporting Information [Line Items]
Revenue	$ 222,958	$ 177,726	$ 642,530	$ 507,833
United States
Segment Reporting Information [Line Items]
Revenue	99,230	72,972	268,585	191,699
Germany
Segment Reporting Information [Line Items]
Revenue	34,625	25,313	99,526	71,448
Rest of Europe
Segment Reporting Information [Line Items]
Revenue	33,996	34,163	105,327	105,338
China
Segment Reporting Information [Line Items]
Revenue	24,209	22,230	80,877	68,286
Rest of Asia-Pacific
Segment Reporting Information [Line Items]
Revenue	26,886	21,256	74,400	64,765
Other Countries
Segment Reporting Information [Line Items]
Revenue	$ 4,012	$ 1,792	$ 13,815	$ 6,297

Schedule of Revenue by End Mark

Schedule of Revenue by End Market (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Oct. 01, 2021	Sep. 30, 2022	Oct. 01, 2021
Segment Reporting Information [Line Items]
Total revenue by end market	100%	100%	100%	100%
Medical
Segment Reporting Information [Line Items]
Total revenue by end market	50%	53%	48%	53%
Advanced Industrial
Segment Reporting Information [Line Items]
Total revenue by end market	50%	47%	52%	47%