Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2023 | Oct. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 29, 2023 | |
Document Fiscal Year Focus | 2023 | |
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 | 35,810,370 | |
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. 29, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 75,961 | $ 100,105 |
Accounts receivable, net of allowance of $1,316 and $995, respectively | 143,086 | 137,697 |
Inventories | 153,809 | 167,997 |
Prepaid income taxes and income taxes receivable | 5,299 | 1,508 |
Prepaid expenses and other current assets | 13,167 | 13,212 |
Total current assets | 391,322 | 420,519 |
Property, plant and equipment, net | 103,323 | 103,186 |
Operating lease assets | 40,527 | 43,317 |
Deferred tax assets | 24,714 | 15,113 |
Other assets | 5,653 | 4,414 |
Intangible assets, net | 151,096 | 175,766 |
Goodwill | 477,642 | 478,897 |
Total assets | 1,194,277 | 1,241,212 |
Current liabilities | ||
Current portion of long-term debt | 4,736 | 4,800 |
Accounts payable | 63,983 | 75,225 |
Income taxes payable | 7,223 | 13,660 |
Current portion of operating lease liabilities | 8,072 | 7,793 |
Accrued expenses and other current liabilities | 54,375 | 63,044 |
Total current liabilities | 138,389 | 164,522 |
Long-term debt | 347,879 | 430,662 |
Operating lease liabilities | 38,577 | 40,808 |
Deferred tax liabilities | 14,439 | 17,194 |
Income taxes payable | 4,932 | 4,355 |
Other liabilities | 5,205 | 6,085 |
Total liabilities | 549,421 | 663,626 |
Commitments and contingencies (Note 14) | ||
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: 35,810 and 35,711, respectively | 423,856 | 423,856 |
Additional paid-in capital | 63,362 | 55,155 |
Retained earnings | 190,951 | 130,584 |
Accumulated other comprehensive loss | (33,313) | (32,009) |
Total stockholders' equity | 644,856 | 577,586 |
Total liabilities and stockholders’ equity | $ 1,194,277 | $ 1,241,212 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 29, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 1,307 | $ 995 |
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 | 35,810,000 | 35,711,000 |
Common shares, outstanding | 35,810,000 | 35,711,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 221,503 | $ 222,958 | $ 670,093 | $ 642,530 |
Cost of revenue | 119,912 | 124,550 | 366,751 | 358,601 |
Gross profit | 101,591 | 98,408 | 303,342 | 283,929 |
Operating expenses: | ||||
Research and development and engineering | 22,022 | 21,349 | 68,230 | 63,866 |
Selling, general and administrative | 39,648 | 40,301 | 122,758 | 120,191 |
Amortization of purchased intangible assets | 5,131 | 6,472 | 15,344 | 20,987 |
Restructuring, acquisition, and related costs | 4,481 | 1,625 | 8,191 | 2,650 |
Total operating expenses | 71,282 | 69,747 | 214,523 | 207,694 |
Operating income | 30,309 | 28,661 | 88,819 | 76,235 |
Interest income (expense), net | (6,756) | (4,062) | (19,898) | (9,928) |
Foreign exchange transaction gains (losses), net | (370) | 2,086 | (373) | 2,307 |
Other income (expense), net | (189) | 87 | (546) | (390) |
Income before income taxes | 22,994 | 26,772 | 68,002 | 68,224 |
Income tax provision | 1,771 | 4,282 | 7,635 | 9,435 |
Consolidated net income | $ 21,223 | $ 22,490 | $ 60,367 | $ 58,789 |
Earnings per common share: | ||||
Basic | $ 0.59 | $ 0.63 | $ 1.68 | $ 1.65 |
Diluted | $ 0.59 | $ 0.63 | $ 1.68 | $ 1.64 |
Weighted average common shares outstanding—basic | 35,856 | 35,729 | 35,839 | 35,625 |
Weighted average common shares outstanding—diluted | 36,041 | 35,928 | 36,024 | 35,881 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Consolidated net income | $ 21,223 | $ 22,490 | $ 60,367 | $ 58,789 | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments, net of tax | [1] | (8,786) | (18,972) | (1,980) | (37,672) |
Pension liability adjustments, net of tax | [2] | 515 | 710 | 676 | 1,611 |
Total other comprehensive income (loss) | (8,271) | (18,262) | (1,304) | (36,061) | |
Total consolidated comprehensive income | $ 12,952 | $ 4,228 | $ 59,063 | $ 22,728 | |
[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 3 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, 2021 | $ 521,291 | $ 423,856 | $ 53,768 | $ 56,533 | $ (12,866) |
Balance (in shares) at Dec. 31, 2021 | 35,601 | ||||
Net Income (Loss) | 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 | ||||
Net Income (Loss) | 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 | ||||
Balance at Dec. 31, 2022 | 577,586 | $ 423,856 | 55,155 | 130,584 | (32,009) |
Balance (in shares) at Dec. 31, 2022 | 35,711 | ||||
Net Income (Loss) | 60,367 | 60,367 | |||
Common shares issued under stock plans (in shares) | 167 | ||||
Common shares withheld for taxes on vested stock awards | (10,171) | (10,171) | |||
Common shares withheld for taxes on vested stock awards (in shares) | (68) | ||||
Share-based compensation | 18,378 | 18,378 | |||
Other comprehensive income (loss), net of tax | (1,304) | (1,304) | |||
Balance at Sep. 29, 2023 | 644,856 | $ 423,856 | 63,362 | 190,951 | (33,313) |
Balance (in shares) at Sep. 29, 2023 | 35,810 | ||||
Balance at Jun. 30, 2023 | 626,030 | $ 423,856 | 57,488 | 169,728 | (25,042) |
Balance (in shares) at Jun. 30, 2023 | 35,808 | ||||
Net Income (Loss) | 21,223 | 21,223 | |||
Common shares issued under stock plans (in shares) | 3 | ||||
Common shares withheld for taxes on vested stock awards | (163) | (163) | |||
Common shares withheld for taxes on vested stock awards (in shares) | (1) | ||||
Share-based compensation | 6,037 | 6,037 | |||
Other comprehensive income (loss), net of tax | (8,271) | (8,271) | |||
Balance at Sep. 29, 2023 | $ 644,856 | $ 423,856 | $ 63,362 | $ 190,951 | $ (33,313) |
Balance (in shares) at Sep. 29, 2023 | 35,810 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 60,367 | $ 58,789 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 35,065 | 40,999 |
Provision for inventory excess and obsolescence | 6,563 | 1,940 |
Impairment of assets | 1,421 | |
Share-based compensation | 18,378 | 17,809 |
Deferred income taxes | (12,328) | (14,628) |
Write-off of unamortized deferred financing costs | 624 | |
Other | 1,289 | (152) |
Changes in assets and liabilities which (used)/provided cash, excluding effects from business acquisitions: | ||
Accounts receivable | (6,371) | (34,444) |
Inventories | 5,619 | (46,552) |
Prepaid income taxes, income taxes receivable, prepaid expenses and other current assets | (3,444) | (2,041) |
Accounts payable, income taxes payable, accrued expenses and other current liabilities | (24,759) | 29,393 |
Other non-current assets and liabilities | (717) | (1,570) |
Net cash provided by operating activities | 81,083 | 50,167 |
Cash flows from investing activities: | ||
Cash paid for business acquisitions, net of working capital adjustments | (21,565) | |
Purchases of property, plant and equipment | (13,741) | (15,385) |
Payment of contingent consideration related to acquisition of technology assets | (1,470) | |
Other investing activities | 137 | |
Net cash used in investing activities | (13,741) | (38,283) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facilities | 69,941 | |
Repayments under term loan and revolving credit facilities | (82,047) | (37,791) |
Payments of debt issuance costs | (2,492) | |
Payments of withholding taxes from share-based awards | (10,171) | (9,626) |
Repurchases of common shares | (10,000) | |
Payments of contingent consideration related to acquisitions | (81) | (46,254) |
Other financing activities | (484) | (447) |
Net cash used in financing activities | (92,783) | (36,669) |
Effect of exchange rates on cash and cash equivalents | 1,297 | (8,028) |
Decrease in cash and cash equivalents | (24,144) | (32,813) |
Cash and cash equivalents, beginning of the period | 100,105 | 117,393 |
Cash and cash equivalents, end of the period | 75,961 | 84,580 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 19,290 | 8,962 |
Cash paid for income taxes | 28,684 | 17,102 |
Income tax refunds received | $ 275 | $ 164 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 21,223 | $ 22,490 | $ 60,367 | $ 58,789 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 29, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Rule 10b5-1 Trading Plans The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our Section 16 officers and directors during the three months ended September 29, 2023, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (“Rule 10b5-1 Plan”), are summarized below. Name Title Action Date Total Shares to Be Sold Expiration Date Brian S. Young Chief Human Resources Officer Adoption September 12, 2023 6,119 September 13, 2024 None of our officers or directors adopted or terminated a “non-Rule 10b5-1 trading arrangement” as defined in Item 408 of Regulation S-K. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Brian S. Young | |
Trading Arrangements, by Individual | |
Name | Brian S. Young |
Title | Chief Human Resources Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 12, 2023 |
Aggregate Available | 6,119 |
Expiration Date | September 13, 2024 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Novanta Inc. (“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 precision medicine and manufacturing, medical solutions, and robotics and automation 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, 2022. 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. During the first quarter of 2023, the Company changed the names of its reportable segments from “Photonics” to “Precision Medicine and Manufacturing”, from “Vision” to “Medical Solutions”, and from “Precision Motion” to “Robotics and Automation”, respectively. The segment name changes did not result in any change to the compositions of the Company's segments and therefore did not result in any change to historical results. 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 Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-06, “Disclosure Improvements: Codification Amendments in Response to SEC’s Disclosure Update and Simplification Initiative.” ASU 2023-06 clarifies or improves disclosure and presentation requirements of a variety of topics, which allow users to easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements and align the requirements in the FASB Accounting Standards Codification with the SEC’s regulations. The effective date for each amendment in ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is currently evaluating the impact of ASU 2023-06 on its consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 29, 2023 | |
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 29, 2023 and September 30, 2022. 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 typically 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 remaining 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 29, 2023 and December 31, 2022, contract liabilities were $ 6.8 million and $ 8.4 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 29, 2023 is primarily due to $ 6.2 million of revenue recognized during the period that was included in the contract liability balance as of December 31, 2022, partially offset by cash payments received in advance of satisfying performance obligations. Disaggregated Revenue See Note 15 for the Company’s disaggregation of revenue by segment, geography and end market. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 29, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 3. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss were as follows (in thousands): Total Accumulated Other Cumulative Pension Comprehensive Translation Liability Loss Adjustments Adjustments Balance at December 31, 2022 $ ( 32,009 ) $ ( 24,427 ) $ ( 7,582 ) Other comprehensive income (loss) ( 2,068 ) ( 1,980 ) ( 88 ) Amounts reclassified from accumulated other comprehensive loss 764 — 764 Balance at September 29, 2023 $ ( 33,313 ) $ ( 26,407 ) $ ( 6,906 ) 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. 29, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | 4. 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 service-based restricted stock units, stock options and performance-based restricted stock units, are determined using the treasury stock method. Performance-based restricted stock units are considered contingently issuable shares, the vesting of which may be based on achievement of specified company performance conditions (“attainment-based PSUs”), certain market conditions (“market-based PSUs”) or a hybrid of company performance conditions and market conditions (“hybrid PSUs”). The dilutive effects of market-based 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 and hybrid PSUs are included in the weighted average common share calculation based on the cumulative achievement against the performance targets only when the performance targets have been achieved 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 29, September 30, September 29, September 30, 2023 2022 2023 2022 Numerators: Consolidated net income $ 21,223 $ 22,490 $ 60,367 $ 58,789 Denominators: Weighted average common shares outstanding— basic 35,856 35,729 35,839 35,625 Dilutive potential common shares 185 199 185 256 Weighted average common shares outstanding— diluted 36,041 35,928 36,024 35,881 Antidilutive potential common shares excluded from above 49 73 101 104 Earnings per Common Share: Basic $ 0.59 $ 0.63 $ 1.68 $ 1.65 Diluted $ 0.59 $ 0.63 $ 1.68 $ 1.64 For both the three and nine months ended September 29, 2023 , 143 thousand shares of performance-based restricted stock units were excluded from the calculation of the denominator because they were attainment-based and hybrid contingently issuable shares and the related performance targets had not been achieved as of September 29, 2023. For both the three and nine months ended September 30, 2022 , 124 thousand shares of performance-based restricted stock units were excluded from the calculation of the denominator because they were attainment-based contingently issuable shares and the related performance targets had not been achieved as of September 30, 2022 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. 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 assets measured 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 equivalents, 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 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 and adjusted the fair value of the contingent consideration to € 0.4 million ($ 0.4 million). During the nine months ended September 29, 2023, the Company made the third installment payment of € 0.1 million ($ 0.1 million). The installment payments have been 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 29, 2023, the Company did no t make any adjustments to the fair value of the remaining contingent consideration during the nine months ended September 29, 2023. 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 29, 2023 (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 $ 1,724 $ 1,724 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 237 — 237 — $ 1,961 $ 1,724 $ 237 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 45 $ — $ — $ 45 Foreign currency forward contracts 23 — 23 — Other liabilities: Contingent considerations - Long-term 296 — — 296 $ 364 $ — $ 23 $ 341 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, 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 $ 1,369 $ 1,369 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 391 — 391 — $ 1,760 $ 1,369 $ 391 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 124 $ — $ — $ 124 Foreign currency forward contracts 412 — 412 — Other liabilities: Contingent considerations - Long-term 301 — — 301 $ 837 $ — $ 412 $ 425 Changes in the fair value of Level 3 contingent considerations during the nine months ended September 29, 2023 were as follows (in thousands): Amount Balance at December 31, 2022 $ 425 Payments ( 81 ) Fair value adjustments — Effect of foreign exchange rates ( 3 ) Balance at September 29, 2023 $ 341 See Note 9 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. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Currency Contracts | 6. 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 and are included in foreign exchange transaction gains (losses) in the consolidated statements of operations. 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 29, 2023, the aggregate notional amount and fair value of the Company’s foreign currency forward contracts was $ 163.5 million and a net gain of $ 0.2 million, respective ly. As of December 31, 2022, the aggregate notional amount and fair value of the Company’s foreign currency forward contracts was $ 117.1 million and a net loss of less than $ 0.1 million, respectively. The Company recognized an aggregate net loss of $ 0.2 million and aggregate net gain of $ 2.5 million for the three and nine months ended September 29, 2023, respectively. The Company recognized an aggregate net loss of $ 0.8 million and $ 2.3 million for the three and nine months ended September 30, 2022, respectively . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. 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 2023 and noted no impairment. The following table summarizes changes in goodwill during the nine months ended September 29, 2023 (in thousands): Balance at beginning of the period $ 478,897 Effect of foreign exchange rate changes ( 1,255 ) Balance at end of the period $ 477,642 Goodwill by reportable segment as of September 29, 2023 was as follows (in thousands): Reportable Segment Precision Medicine and Manufacturing Medical Solutions Robotics and Automation Total Goodwill $ 208,110 $ 166,905 $ 253,856 $ 628,871 Accumulated impairment of goodwill ( 102,461 ) ( 31,722 ) ( 17,046 ) ( 151,229 ) Total $ 105,649 $ 135,183 $ 236,810 $ 477,642 Goodwill by reportable segment as of December 31, 2022 was as follows (in thousands): Reportable Segment Precision Medicine and Manufacturing Medical Solutions Robotics and Automation Total Goodwill $ 208,387 $ 167,891 $ 253,848 $ 630,126 Accumulated impairment of goodwill ( 102,461 ) ( 31,722 ) ( 17,046 ) ( 151,229 ) Total $ 105,926 $ 136,169 $ 236,802 $ 478,897 Intangible Assets Intangible assets as of September 29, 2023 and December 31, 2022, respectively, are summarized as follows (in thousands): September 29, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amortizable intangible assets: Patents and developed technologies $ 184,246 $ ( 141,182 ) $ 43,064 $ 184,589 $ ( 132,350 ) $ 52,239 Customer relationships 221,706 ( 135,476 ) 86,230 222,173 ( 121,527 ) 100,646 Trademarks and trade names 23,297 ( 14,522 ) 8,775 23,311 ( 13,457 ) 9,854 Amortizable intangible assets 429,249 ( 291,180 ) 138,069 430,073 ( 267,334 ) 162,739 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Total intangible assets $ 442,276 $ ( 291,180 ) $ 151,096 $ 443,100 $ ( 267,334 ) $ 175,766 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 29, September 30, September 29, September 30, 2023 2022 2023 2022 Amortization expense – cost of revenue $ 3,051 $ 3,247 $ 9,119 $ 10,004 Amortization expense – operating expenses 5,131 6,472 15,344 20,987 Total amortization expense $ 8,182 $ 9,719 $ 24,463 $ 30,991 As of September 29, 2023, estimated amortization expense for each of the five succeeding years and thereafter was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Total 2023 (remainder of year) $ 3,005 $ 5,065 $ 8,070 2024 9,771 16,998 26,769 2025 8,289 14,378 22,667 2026 6,933 12,227 19,160 2027 4,197 9,861 14,058 Thereafter 10,869 36,476 47,345 Total $ 43,064 $ 95,005 $ 138,069 |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information | 9 Months Ended |
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary Balance Sheet Information | 8. Supplementary Balance Sheet Information The following tables provide the details of selected balance sheet items as of the periods indicated (in thousands): Inventories September 29, December 31, 2023 2022 Raw materials $ 109,067 $ 118,292 Work-in-process 21,266 23,328 Finished goods 23,096 25,738 Demo and consigned inventory 380 639 Total inventories $ 153,809 $ 167,997 Accrued Expenses and Other Current Liabilities September 29, December 31, 2023 2022 Accrued compensation and benefits $ 26,691 $ 35,501 Accrued warranty 5,498 5,127 Contract liabilities, current portion 6,576 8,128 Finance lease obligations 708 668 Other 14,902 13,620 Total $ 54,375 $ 63,044 Accrued Warranty Nine Months Ended September 29, September 30, 2023 2022 Balance at beginning of the period $ 5,127 $ 4,783 Provision charged to cost of revenue 1,837 2,091 Use of provision ( 1,467 ) ( 1,933 ) Foreign currency exchange rate changes 1 ( 203 ) Balance at end of the period $ 5,498 $ 4,738 Other Long-Term Liabilities September 29, December 31, 2023 2022 Finance lease obligations $ 4,117 $ 4,652 Accrued contingent considerations and earn-outs 296 301 Other 792 1,132 Total $ 5,205 $ 6,085 |
Debt
Debt | 9 Months Ended |
Sep. 29, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Outstanding debt consisted of the following (in thousands): September 29, December 31, 2023 2022 Senior Credit Facilities – term loan $ 4,763 $ 4,832 Less: unamortized debt issuance costs ( 27 ) ( 32 ) Total current portion of long-term debt $ 4,736 $ 4,800 Senior Credit Facilities – term loan $ 72,400 $ 77,060 Senior Credit Facilities – revolving credit facility 279,423 358,413 Less: unamortized debt issuance costs ( 3,944 ) ( 4,811 ) Total long-term debt $ 347,879 $ 430,662 Total Senior Credit Facilities $ 352,615 $ 435,462 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 outstanding principal balance under the term loan facility is payable in quarterly installments of € 1.1 million that began 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 until maturity. The Company made principal payments of € 3.4 million ($ 3.6 million) towards its term loan and $ 78.4 million towards its revolving credit facility during the nine months ended September 29, 2023. 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 29, 2023. 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 29, 2023 and December 31, 2022, 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. 29, 2023 | |
Leases [Abstract] | |
Leases | 10. Leases Most leases held by the Company expire between 2023 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 ten 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 29, September 30, September 29, September 30, 2023 2022 2023 2022 Operating lease cost $ 2,639 $ 2,544 $ 7,916 $ 7,936 Finance lease cost Amortization of right-of-use assets 150 150 452 451 Interest on lease liabilities 68 77 208 234 Variable lease cost 227 271 787 888 Total lease cost $ 3,084 $ 3,042 $ 9,363 $ 9,509 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 29, December 31, 2023 2022 Operating leases Operating lease right-of-use assets $ 40,527 $ 43,317 Current portion of operating lease liabilities $ 8,072 $ 7,793 Operating lease liabilities 38,577 40,808 Total operating lease liabilities $ 46,649 $ 48,601 Finance leases Property, plant and equipment, gross $ 9,582 $ 9,582 Accumulated depreciation ( 6,122 ) ( 5,670 ) Finance lease assets included in property, plant and equipment, net $ 3,460 $ 3,912 Accrued expenses and other current liabilities $ 708 $ 668 Other liabilities 4,117 4,652 Total finance lease liabilities $ 4,825 $ 5,320 Weighted-average remaining lease term (in years): Operating leases 7.7 8.2 Finance leases 5.8 6.5 Weighted-average discount rate: Operating leases 4.84 % 4.64 % 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 29, September 30, 2023 2022 Cash paid for amounts included in lease liabilities: Operating cash flows from finance leases $ 208 $ 234 Operating cash flows from operating leases $ 5,916 $ 5,921 Financing cash flows from finance leases $ 484 $ 447 Supplemental non-cash information: Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,893 $ 4,621 Future minimum lease payments under operating and finance leases expiring subsequent to September 29, 2023, 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 2023 (remainder of year) $ 2,426 $ 238 2024 9,617 954 2025 9,386 954 2026 7,945 979 2027 7,066 1,003 Thereafter 20,832 1,505 Total minimum lease payments 57,272 5,633 Less: Interest ( 10,623 ) ( 808 ) Present value of lease liabilities $ 46,649 $ 4,825 |
Preferred and Common Shares and
Preferred and Common Shares and Share-Based Compensation | 9 Months Ended |
Sep. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Preferred and Common Shares and Share-Based Compensation | 11. 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 29, 2023 , no preferred shares had been issued and outstanding. Common Share Repurchases In February 2020, the Company’s Board of Directors approved a new share repurchase plan (the “2020 Repurchase Plan”), authorizing the repurchase of $ 50.0 million worth of the Company’s common shares. During the nine months ended September 30, 2022 , the Company repurchased 4 thousand shares under the 2020 Repurchase Plan for an aggregate purchase price of $ 0.5 million and an average price of $ 116.95 per share. During the nine months ended September 29, 2023, the Company did not repurchase any shares. As of September 29, 2023 , 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 29, September 30, September 29, September 30, 2023 2022 2023 2022 Selling, general and administrative $ 5,229 $ 4,649 $ 15,631 $ 13,906 Research and development and engineering 510 586 1,495 1,780 Cost of revenue 298 719 1,252 2,123 Total share-based compensation expense $ 6,037 $ 5,954 $ 18,378 $ 17,809 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 Directors of $ 1.2 million and $ 1.1 million during the nine months ended September 29, 2023 and September 30, 2022, 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. There were 41 thousand and 38 thousand DSUs outstanding as of September 29, 2023 and December 31, 2022, 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 29, 2023: Shares Weighted Unvested at December 31, 2022 238 $ 128.26 Granted 91 $ 156.47 Vested ( 102 ) $ 122.48 Forfeited ( 24 ) $ 139.50 Unvested at September 29, 2023 203 $ 142.72 Expected to vest as of September 29, 2023 185 The total fair value of RSUs and DSUs that vested during the nine months ended September 29, 2023 was $ 15.2 million based on the market price of the underlying shares on the date of vesting. Performance Stock Units The Company typically grants performance-based restricted stock unit awards (“PSUs”) that are based on the Company's financial metrics, market conditions, or a hybrid of financial metrics and market conditions. These performance stock unit awards generally cliff vest on the first day following the end of the specified performance period. The number of common shares to be issued upon settlement following vesting of attainment-based PSUs is determined based on the Company’s financial metrics over the specified performance period against the 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 specified performance period. 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 vesting of market-based PSUs is determined based on the relative market performance of the Company’s common stock compared to the Russell 2000 Index over the specified 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 market-based PSUs, determined using the Monte-Carlo valuation model as of the grant date, on a straight-line basis from the grant date to the end of the specified performance period. Compensation expense on market-based PSUs will not be affected by the number of shares that will ultimately vest at the end of the specified performance period. The number of common shares to be issued upon settlement following vesting of PSU awards that are based on the achievement of a hybrid of financial metrics and market conditions (“Hybrid PSUs”) is determined based on the Company's financial metrics achieved over the specified performance period against the targets established by the Company's Board of Directors at the time of grant with a market condition multiplier and will be in the range of zero to 260 % of the target number of shares. The Company determines the fair value of these Hybrid PSUs using the Monte-Carlo valuation model as of the grant date. The Company recognizes compensation expense associated with the Hybrid PSUs ratably over the performance period based on the fair value of the PSUs as of the grant date and the number of shares that are deemed probable of vesting at the end of the specified performance period. The 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 29, 2023: Shares Weighted Unvested at December 31, 2022 216 $ 144.16 Granted 57 $ 179.15 Performance adjustments (1) 20 $ 122.24 Vested ( 70 ) $ 116.56 Forfeited ( 16 ) $ 168.97 Unvested at September 29, 2023 207 $ 160.40 Expected to vest as of September 29, 2023 246 (1) The amount shown represents performance adjustments related to the performance-based awards granted on February 20, 2020. These performance-based awards vested at a blended payout of 142 % during the nine months ended September 29, 2023 based on the achievement of cumulative Non-GAAP EPS and applicable relative TSR performance conditions, respectively, over the performance period of fiscal years 2020 through 2022. The unvested PSUs are shown at target payout levels in the table above. As of September 29, 2023 , the maximum number of common shares that could be earned under these PSU grants was approximately 369 thousand shares. The total fair value of PSUs that vested during the nine months ended September 29, 2023 was $ 9.9 million based on the market price of the underlying common shares on the date of vesting. The grant-date fair value of the hybrid PSUs granted during the nine months ended September 29, 2023 was estimated using the Monte Carlo valuation method with the following assumptions: Nine Months Ended Grant-date stock price $ 156.72 Expected volatility 35.89 % Risk-free interest rate 4.44 % Expected annual dividend yield — Fair value $ 181.45 Stock Options In February 2023, the Company granted 48 thousand nonqualified 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 on the date of grant. The stock options vest ratably over three years on the anniversary of 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 the activities relating to stock options issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 29, 2023: Shares Weighted Outstanding as of December 31, 2022 84 $ 72.18 Granted 48 $ 156.72 Exercised — $ — Forfeited or expired — $ — Outstanding as of September 29, 2023 132 $ 102.86 Exercisable as of September 29, 2023 57 Expected to vest as of September 29, 2023 75 The aggregate Black-Scholes fair value of $ 3.0 million for the stock options granted during the nine months ended September 29, 2023 was estimated using the following assumptions as of the grant date: Nine Months Ended Expected option term in years 4.5 Expected volatility 40.7 % Risk-free interest rate 4.00 % 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. The risk-free interest rate was based on 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. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. 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, credits 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 7.7 % for the three months ended September 29, 2023 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 tax benefits of share-based compensation awards, partially offset by disallowed compensation deductions and uncertain tax position accruals. The Company’s effective tax rate of 11.2 % for the nine months ended September 29, 2023 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 tax benefits of share-based compensation awards, partially offset by disallowed compensation deductions and uncertain tax position accruals. For the nine months ended September 29, 2023, the tax benefits of share-based compensation awards had a benefit of 4.5 % on the Company’s effective tax rate. 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 deductions 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 tax benefits of share-based compensation awards, partially offset by disallowed compensation deductions and uncertain tax position accruals. For the nine months ended September 30, 2022, the tax benefits of share-based compensation awards had a benefit of 0.2 % on the Company’s effective tax rate. |
Restructuring, Acquisition, and
Restructuring, Acquisition, and Related Costs | 9 Months Ended |
Sep. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Acquisition, and Related Costs | 13. 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 29, September 30, September 29, September 30, 2023 2022 2023 2022 2022 restructuring $ 2,450 $ 889 $ 5,324 $ 889 2020 restructuring 1,880 887 2,613 2,119 Total restructuring charges 4,330 1,776 7,937 3,008 Acquisition and related charges 151 ( 151 ) 254 ( 358 ) Total restructuring, acquisition, and related costs $ 4,481 $ 1,625 $ 8,191 $ 2,650 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 and nine months ended September 29, 2023 , the Company recorded $ 2.5 million and $ 5.3 million, respectively, in severance, facility related, and other charges in connection with the 2022 restructuring program. As of September 29, 2023, the Company had incurred cumulative cost s of $ 6.7 million rel ated to this restructuring plan. The Company anticipates substantially completing the 2022 restructuring program by the end of 2023 an d expects to incur additional restructuring charges of $ 2.5 million to $ 3.0 million related to the 2022 restructuring program. The following table summarizes restructuring costs associated with the 2022 restructuring program by reportable segment (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 76 $ 889 $ 1,064 $ 889 Medical Solutions 253 — 293 — Robotics and Automation 1,632 — 3,168 — Unallocated Corporate and Shared Services 489 — 799 — Total $ 2,450 $ 889 $ 5,324 $ 889 2020 Restructuring 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 bett er 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 29, 2023 , the Company recorded $ 1.9 million and $ 2.6 million respectively, in severance, facility related, and other costs in connection with the 2020 restructuring program. As of September 29, 2023 , the Company had incurred cumulative costs of $ 16.5 million related to this restructuring plan. The 2020 restructuring program was substantially completed in the third quarter of 2023. The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 1,543 $ 758 $ 2,050 $ 1,952 Medical Solutions — 101 — 207 Robotics and Automation 337 22 563 ( 46 ) Unallocated Corporate and Shared Services — 6 — 6 Total $ 1,880 $ 887 $ 2,613 $ 2,119 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 Related Other Balance at December 31, 2022 $ 2,410 $ 1,902 $ 452 $ 56 Restructuring charges 7,937 4,799 1,929 1,209 Cash payments ( 5,969 ) ( 4,803 ) ( 600 ) ( 566 ) Non-cash write-offs and other adjustments (1) ( 1,346 ) 20 ( 823 ) ( 543 ) Balance at September 29, 2023 $ 3,032 $ 1,918 $ 958 $ 156 (1) Non-cash write-offs and other adjustments included impairment of assets amounting to $ 1.4 million. Acquisition and Related Charges Acquisition costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $ 0.2 million and $ 0.3 million for the three and nine months ended September 29, 2023 , and $ 0.8 million and $ 1.1 million for the three and nine months ended September 30, 2022, respectively. During the three and nine months ended September 30, 2022 , the Company recognized a reduction of $ 1.0 million and $ 1.4 million, respectively, in earn-out expenses related to prior-year acquisitions. The majority of acquisition and related costs for the three and nine months ended September 29, 2023 were included in the Company’s Unallocated Corporate and Shared Services reportable segment. The majority of acquisition and related costs for the three and nine months ended September 30, 2022 were included in the Company’s Precision Medicine and Manufacturing, Robotics and Automation, and Unallocated Corporate and Shared Services reportable segments. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Purchase Commitments There have been no material changes to the Company’s purchase commitments since December 31, 2022. Business Interruption Insurance Recoveries The Company made an insurance claim to recover lost margin and additional costs incurred in connection with a fire at a key supplier that caused business interruption in the second half of 2022. During the three and nine months ended September 29, 2023, the Company received insurance recovery payments of $ 4.4 million and $ 5.0 million, respectively, which have been recorded as a reduction to cost of revenue. The insurance claim was fully settled as of September 29, 2023. 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 considered 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 outstanding claims will have a material adverse effect on its consolidated financial statements but there can be no assurance that any such 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. 29, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 15. Segment Information Reportable Segments The Company’s Chief Operating Decision Maker (“CODM”) utilizes certain 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 is 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: Precision Medicine and Manufacturing, Medical Solutions, and Robotics and Automation. The reportable segments and their principal activities are described below. Precision Medicine and Manufacturing The Precision Medicine and Manufacturing 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. 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 worldwide. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Medical Solutions The Medical Solutions 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 worldwide. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Robotics and Automation The Robotics and Automation 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. The vast majority of the segment’s product offerings are sold to OEM customers worldwide. 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 29, September 30, September 29, September 30, Revenue 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 71,277 $ 70,799 $ 215,138 $ 203,042 Medical Solutions 83,378 73,345 244,340 200,911 Robotics and Automation 66,848 78,814 210,615 238,577 Total $ 221,503 $ 222,958 $ 670,093 $ 642,530 Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Gross Profit 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 36,208 $ 34,699 $ 107,054 $ 94,268 Medical Solutions 34,027 28,201 100,170 79,966 Robotics and Automation 32,652 36,832 100,376 113,846 Unallocated Corporate and Shared Services ( 1,296 ) ( 1,324 ) ( 4,258 ) ( 4,151 ) Total $ 101,591 $ 98,408 $ 303,342 $ 283,929 Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Gross Profit Margin 2023 2022 2023 2022 Precision Medicine and Manufacturing 50.8 % 49.0 % 49.8 % 46.4 % Medical Solutions 40.8 % 38.4 % 41.0 % 39.8 % Robotics and Automation 48.8 % 46.7 % 47.7 % 47.7 % Total 45.9 % 44.1 % 45.3 % 44.2 % Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Operating Income (Loss) 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 18,508 $ 18,351 $ 54,803 $ 45,782 Medical Solutions 11,050 8,744 30,974 20,811 Robotics and Automation 12,208 15,800 39,456 48,222 Unallocated Corporate and Shared Services ( 11,457 ) ( 14,234 ) ( 36,414 ) ( 38,580 ) Total $ 30,309 $ 28,661 $ 88,819 $ 76,235 Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Depreciation and Amortization Expenses 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 2,644 $ 2,760 $ 7,901 $ 8,234 Medical Solutions 3,860 4,240 11,877 12,989 Robotics and Automation 4,705 6,050 14,467 19,467 Unallocated Corporate and Shared Services 188 93 820 309 Total $ 11,397 $ 13,143 $ 35,065 $ 40,999 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 29, September 30, September 29, September 30, 2023 2022 2023 2022 United States $ 110,462 $ 99,230 $ 321,898 $ 268,585 Germany 33,263 34,625 100,222 99,526 Rest of Europe 34,257 33,996 98,159 105,327 China 15,679 24,209 54,331 80,877 Rest of Asia-Pacific 24,060 26,886 79,561 74,400 Other 3,782 4,012 15,922 13,815 Total $ 221,503 $ 222,958 $ 670,093 $ 642,530 The majority of revenue from Precision Medicine and Manufacturing, Medical Solutions and Robotics and Automation 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 29, September 30, September 29, September 30, 2023 2022 2023 2022 Medical 57 % 50 % 54 % 48 % Advanced Industrial 43 % 50 % 46 % 52 % Total 100 % 100 % 100 % 100 % The majority of revenue from the Precision Medicine and Manufacturing and Robotics and Automation segments is generated from sales to customers in the advanced industrial market. The majority of revenue from the Medical Solutions segment is generated from sales to customers in the medical market. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Novanta Inc. (“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 precision medicine and manufacturing, medical solutions, and robotics and automation 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, 2022. 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. During the first quarter of 2023, the Company changed the names of its reportable segments from “Photonics” to “Precision Medicine and Manufacturing”, from “Vision” to “Medical Solutions”, and from “Precision Motion” to “Robotics and Automation”, respectively. The segment name changes did not result in any change to the compositions of the Company's segments and therefore did not result in any change to historical results. |
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 Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-06, “Disclosure Improvements: Codification Amendments in Response to SEC’s Disclosure Update and Simplification Initiative.” ASU 2023-06 clarifies or improves disclosure and presentation requirements of a variety of topics, which allow users to easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements and align the requirements in the FASB Accounting Standards Codification with the SEC’s regulations. The effective date for each amendment in ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is currently evaluating the impact of ASU 2023-06 on its 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 29, 2023 and September 30, 2022. 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 typically 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 remaining 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 29, 2023 and December 31, 2022, contract liabilities were $ 6.8 million and $ 8.4 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 29, 2023 is primarily due to $ 6.2 million of revenue recognized during the period that was included in the contract liability balance as of December 31, 2022, partially offset by cash payments received in advance of satisfying performance obligations. Disaggregated Revenue See Note 15 for the Company’s disaggregation of revenue by segment, geography and end market. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss were as follows (in thousands): Total Accumulated Other Cumulative Pension Comprehensive Translation Liability Loss Adjustments Adjustments Balance at December 31, 2022 $ ( 32,009 ) $ ( 24,427 ) $ ( 7,582 ) Other comprehensive income (loss) ( 2,068 ) ( 1,980 ) ( 88 ) Amounts reclassified from accumulated other comprehensive loss 764 — 764 Balance at September 29, 2023 $ ( 33,313 ) $ ( 26,407 ) $ ( 6,906 ) |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
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 29, September 30, September 29, September 30, 2023 2022 2023 2022 Numerators: Consolidated net income $ 21,223 $ 22,490 $ 60,367 $ 58,789 Denominators: Weighted average common shares outstanding— basic 35,856 35,729 35,839 35,625 Dilutive potential common shares 185 199 185 256 Weighted average common shares outstanding— diluted 36,041 35,928 36,024 35,881 Antidilutive potential common shares excluded from above 49 73 101 104 Earnings per Common Share: Basic $ 0.59 $ 0.63 $ 1.68 $ 1.65 Diluted $ 0.59 $ 0.63 $ 1.68 $ 1.64 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
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 29, 2023 (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 $ 1,724 $ 1,724 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 237 — 237 — $ 1,961 $ 1,724 $ 237 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 45 $ — $ — $ 45 Foreign currency forward contracts 23 — 23 — Other liabilities: Contingent considerations - Long-term 296 — — 296 $ 364 $ — $ 23 $ 341 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, 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 $ 1,369 $ 1,369 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 391 — 391 — $ 1,760 $ 1,369 $ 391 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 124 $ — $ — $ 124 Foreign currency forward contracts 412 — 412 — Other liabilities: Contingent considerations - Long-term 301 — — 301 $ 837 $ — $ 412 $ 425 |
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 29, 2023 were as follows (in thousands): Amount Balance at December 31, 2022 $ 425 Payments ( 81 ) Fair value adjustments — Effect of foreign exchange rates ( 3 ) Balance at September 29, 2023 $ 341 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | The following table summarizes changes in goodwill during the nine months ended September 29, 2023 (in thousands): Balance at beginning of the period $ 478,897 Effect of foreign exchange rate changes ( 1,255 ) Balance at end of the period $ 477,642 |
Goodwill by Reportable Segment | Goodwill by reportable segment as of September 29, 2023 was as follows (in thousands): Reportable Segment Precision Medicine and Manufacturing Medical Solutions Robotics and Automation Total Goodwill $ 208,110 $ 166,905 $ 253,856 $ 628,871 Accumulated impairment of goodwill ( 102,461 ) ( 31,722 ) ( 17,046 ) ( 151,229 ) Total $ 105,649 $ 135,183 $ 236,810 $ 477,642 Goodwill by reportable segment as of December 31, 2022 was as follows (in thousands): Reportable Segment Precision Medicine and Manufacturing Medical Solutions Robotics and Automation Total Goodwill $ 208,387 $ 167,891 $ 253,848 $ 630,126 Accumulated impairment of goodwill ( 102,461 ) ( 31,722 ) ( 17,046 ) ( 151,229 ) Total $ 105,926 $ 136,169 $ 236,802 $ 478,897 |
Intangible Assets | Intangible assets as of September 29, 2023 and December 31, 2022, respectively, are summarized as follows (in thousands): September 29, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amortizable intangible assets: Patents and developed technologies $ 184,246 $ ( 141,182 ) $ 43,064 $ 184,589 $ ( 132,350 ) $ 52,239 Customer relationships 221,706 ( 135,476 ) 86,230 222,173 ( 121,527 ) 100,646 Trademarks and trade names 23,297 ( 14,522 ) 8,775 23,311 ( 13,457 ) 9,854 Amortizable intangible assets 429,249 ( 291,180 ) 138,069 430,073 ( 267,334 ) 162,739 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Total intangible assets $ 442,276 $ ( 291,180 ) $ 151,096 $ 443,100 $ ( 267,334 ) $ 175,766 |
Amortization Expense of Intangible Assets | Amortization expense was as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Amortization expense – cost of revenue $ 3,051 $ 3,247 $ 9,119 $ 10,004 Amortization expense – operating expenses 5,131 6,472 15,344 20,987 Total amortization expense $ 8,182 $ 9,719 $ 24,463 $ 30,991 |
Estimated Amortization Expense | As of September 29, 2023, estimated amortization expense for each of the five succeeding years and thereafter was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Total 2023 (remainder of year) $ 3,005 $ 5,065 $ 8,070 2024 9,771 16,998 26,769 2025 8,289 14,378 22,667 2026 6,933 12,227 19,160 2027 4,197 9,861 14,058 Thereafter 10,869 36,476 47,345 Total $ 43,064 $ 95,005 $ 138,069 |
Supplementary Balance Sheet I_2
Supplementary Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | Inventories September 29, December 31, 2023 2022 Raw materials $ 109,067 $ 118,292 Work-in-process 21,266 23,328 Finished goods 23,096 25,738 Demo and consigned inventory 380 639 Total inventories $ 153,809 $ 167,997 |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities September 29, December 31, 2023 2022 Accrued compensation and benefits $ 26,691 $ 35,501 Accrued warranty 5,498 5,127 Contract liabilities, current portion 6,576 8,128 Finance lease obligations 708 668 Other 14,902 13,620 Total $ 54,375 $ 63,044 |
Accrued Warranty | Accrued Warranty Nine Months Ended September 29, September 30, 2023 2022 Balance at beginning of the period $ 5,127 $ 4,783 Provision charged to cost of revenue 1,837 2,091 Use of provision ( 1,467 ) ( 1,933 ) Foreign currency exchange rate changes 1 ( 203 ) Balance at end of the period $ 5,498 $ 4,738 |
Other Long Term Liabilities | Other Long-Term Liabilities September 29, December 31, 2023 2022 Finance lease obligations $ 4,117 $ 4,652 Accrued contingent considerations and earn-outs 296 301 Other 792 1,132 Total $ 5,205 $ 6,085 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Debt Disclosure [Abstract] | |
Outstanding debt | Outstanding debt consisted of the following (in thousands): September 29, December 31, 2023 2022 Senior Credit Facilities – term loan $ 4,763 $ 4,832 Less: unamortized debt issuance costs ( 27 ) ( 32 ) Total current portion of long-term debt $ 4,736 $ 4,800 Senior Credit Facilities – term loan $ 72,400 $ 77,060 Senior Credit Facilities – revolving credit facility 279,423 358,413 Less: unamortized debt issuance costs ( 3,944 ) ( 4,811 ) Total long-term debt $ 347,879 $ 430,662 Total Senior Credit Facilities $ 352,615 $ 435,462 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
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 29, September 30, September 29, September 30, 2023 2022 2023 2022 Operating lease cost $ 2,639 $ 2,544 $ 7,916 $ 7,936 Finance lease cost Amortization of right-of-use assets 150 150 452 451 Interest on lease liabilities 68 77 208 234 Variable lease cost 227 271 787 888 Total lease cost $ 3,084 $ 3,042 $ 9,363 $ 9,509 |
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 29, December 31, 2023 2022 Operating leases Operating lease right-of-use assets $ 40,527 $ 43,317 Current portion of operating lease liabilities $ 8,072 $ 7,793 Operating lease liabilities 38,577 40,808 Total operating lease liabilities $ 46,649 $ 48,601 Finance leases Property, plant and equipment, gross $ 9,582 $ 9,582 Accumulated depreciation ( 6,122 ) ( 5,670 ) Finance lease assets included in property, plant and equipment, net $ 3,460 $ 3,912 Accrued expenses and other current liabilities $ 708 $ 668 Other liabilities 4,117 4,652 Total finance lease liabilities $ 4,825 $ 5,320 Weighted-average remaining lease term (in years): Operating leases 7.7 8.2 Finance leases 5.8 6.5 Weighted-average discount rate: Operating leases 4.84 % 4.64 % 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 29, September 30, 2023 2022 Cash paid for amounts included in lease liabilities: Operating cash flows from finance leases $ 208 $ 234 Operating cash flows from operating leases $ 5,916 $ 5,921 Financing cash flows from finance leases $ 484 $ 447 Supplemental non-cash information: Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,893 $ 4,621 |
Future Minimum Lease Payments Under Operating and Finance Leases | Future minimum lease payments under operating and finance leases expiring subsequent to September 29, 2023, 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 2023 (remainder of year) $ 2,426 $ 238 2024 9,617 954 2025 9,386 954 2026 7,945 979 2027 7,066 1,003 Thereafter 20,832 1,505 Total minimum lease payments 57,272 5,633 Less: Interest ( 10,623 ) ( 808 ) Present value of lease liabilities $ 46,649 $ 4,825 |
Preferred and Common Shares a_2
Preferred and Common Shares and Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
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 29, September 30, September 29, September 30, 2023 2022 2023 2022 Selling, general and administrative $ 5,229 $ 4,649 $ 15,631 $ 13,906 Research and development and engineering 510 586 1,495 1,780 Cost of revenue 298 719 1,252 2,123 Total share-based compensation expense $ 6,037 $ 5,954 $ 18,378 $ 17,809 |
Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions | The grant-date fair value of the hybrid PSUs granted during the nine months ended September 29, 2023 was estimated using the Monte Carlo valuation method with the following assumptions: Nine Months Ended Grant-date stock price $ 156.72 Expected volatility 35.89 % Risk-free interest rate 4.44 % Expected annual dividend yield — Fair value $ 181.45 |
Schedule of Share Based Payment Award Stock Options Valuation Assumptions | The aggregate Black-Scholes fair value of $ 3.0 million for the stock options granted during the nine months ended September 29, 2023 was estimated using the following assumptions as of the grant date: Nine Months Ended Expected option term in years 4.5 Expected volatility 40.7 % Risk-free interest rate 4.00 % 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. The risk-free interest rate was based on 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 29, 2023: Shares Weighted Unvested at December 31, 2022 238 $ 128.26 Granted 91 $ 156.47 Vested ( 102 ) $ 122.48 Forfeited ( 24 ) $ 139.50 Unvested at September 29, 2023 203 $ 142.72 Expected to vest as of September 29, 2023 185 |
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 29, 2023: Shares Weighted Unvested at December 31, 2022 216 $ 144.16 Granted 57 $ 179.15 Performance adjustments (1) 20 $ 122.24 Vested ( 70 ) $ 116.56 Forfeited ( 16 ) $ 168.97 Unvested at September 29, 2023 207 $ 160.40 Expected to vest as of September 29, 2023 246 (1) The amount shown represents performance adjustments related to the performance-based awards granted on February 20, 2020. These performance-based awards vested at a blended payout of 142 % during the nine months ended September 29, 2023 based on the achievement of cumulative Non-GAAP EPS and applicable relative TSR performance conditions, respectively, over the performance period of fiscal years 2020 through 2022. |
Stock Options Issued and Outstanding | The table below summarizes the activities relating to stock options issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 29, 2023: Shares Weighted Outstanding as of December 31, 2022 84 $ 72.18 Granted 48 $ 156.72 Exercised — $ — Forfeited or expired — $ — Outstanding as of September 29, 2023 132 $ 102.86 Exercisable as of September 29, 2023 57 Expected to vest as of September 29, 2023 75 |
Restructuring, Acquisition, a_2
Restructuring, Acquisition, and Related Costs (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
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 29, September 30, September 29, September 30, 2023 2022 2023 2022 2022 restructuring $ 2,450 $ 889 $ 5,324 $ 889 2020 restructuring 1,880 887 2,613 2,119 Total restructuring charges 4,330 1,776 7,937 3,008 Acquisition and related charges 151 ( 151 ) 254 ( 358 ) Total restructuring, acquisition, and related costs $ 4,481 $ 1,625 $ 8,191 $ 2,650 |
Summary of Restructuring Charges by Reportable Segment | The following table summarizes restructuring costs associated with the 2022 restructuring program by reportable segment (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 76 $ 889 $ 1,064 $ 889 Medical Solutions 253 — 293 — Robotics and Automation 1,632 — 3,168 — Unallocated Corporate and Shared Services 489 — 799 — Total $ 2,450 $ 889 $ 5,324 $ 889 The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 1,543 $ 758 $ 2,050 $ 1,952 Medical Solutions — 101 — 207 Robotics and Automation 337 22 563 ( 46 ) Unallocated Corporate and Shared Services — 6 — 6 Total $ 1,880 $ 887 $ 2,613 $ 2,119 |
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 Related Other Balance at December 31, 2022 $ 2,410 $ 1,902 $ 452 $ 56 Restructuring charges 7,937 4,799 1,929 1,209 Cash payments ( 5,969 ) ( 4,803 ) ( 600 ) ( 566 ) Non-cash write-offs and other adjustments (1) ( 1,346 ) 20 ( 823 ) ( 543 ) Balance at September 29, 2023 $ 3,032 $ 1,918 $ 958 $ 156 (1) Non-cash write-offs and other adjustments included impairment of assets amounting to $ 1.4 million. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
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 29, September 30, September 29, September 30, Revenue 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 71,277 $ 70,799 $ 215,138 $ 203,042 Medical Solutions 83,378 73,345 244,340 200,911 Robotics and Automation 66,848 78,814 210,615 238,577 Total $ 221,503 $ 222,958 $ 670,093 $ 642,530 Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Gross Profit 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 36,208 $ 34,699 $ 107,054 $ 94,268 Medical Solutions 34,027 28,201 100,170 79,966 Robotics and Automation 32,652 36,832 100,376 113,846 Unallocated Corporate and Shared Services ( 1,296 ) ( 1,324 ) ( 4,258 ) ( 4,151 ) Total $ 101,591 $ 98,408 $ 303,342 $ 283,929 Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Gross Profit Margin 2023 2022 2023 2022 Precision Medicine and Manufacturing 50.8 % 49.0 % 49.8 % 46.4 % Medical Solutions 40.8 % 38.4 % 41.0 % 39.8 % Robotics and Automation 48.8 % 46.7 % 47.7 % 47.7 % Total 45.9 % 44.1 % 45.3 % 44.2 % Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Operating Income (Loss) 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 18,508 $ 18,351 $ 54,803 $ 45,782 Medical Solutions 11,050 8,744 30,974 20,811 Robotics and Automation 12,208 15,800 39,456 48,222 Unallocated Corporate and Shared Services ( 11,457 ) ( 14,234 ) ( 36,414 ) ( 38,580 ) Total $ 30,309 $ 28,661 $ 88,819 $ 76,235 Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Depreciation and Amortization Expenses 2023 2022 2023 2022 Precision Medicine and Manufacturing $ 2,644 $ 2,760 $ 7,901 $ 8,234 Medical Solutions 3,860 4,240 11,877 12,989 Robotics and Automation 4,705 6,050 14,467 19,467 Unallocated Corporate and Shared Services 188 93 820 309 Total $ 11,397 $ 13,143 $ 35,065 $ 40,999 |
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 29, September 30, September 29, September 30, 2023 2022 2023 2022 United States $ 110,462 $ 99,230 $ 321,898 $ 268,585 Germany 33,263 34,625 100,222 99,526 Rest of Europe 34,257 33,996 98,159 105,327 China 15,679 24,209 54,331 80,877 Rest of Asia-Pacific 24,060 26,886 79,561 74,400 Other 3,782 4,012 15,922 13,815 Total $ 221,503 $ 222,958 $ 670,093 $ 642,530 |
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 29, September 30, September 29, September 30, 2023 2022 2023 2022 Medical 57 % 50 % 54 % 48 % Advanced Industrial 43 % 50 % 46 % 52 % Total 100 % 100 % 100 % 100 % |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
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 | $ 6.8 | $ 8.4 | |
Revenue recognized | $ 6.2 | ||
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. | ||
Minimum | Warranties | |||
Revenue [Line Items] | |||
Standard warranty period on products | 12 months | ||
Maximum | Warranties | |||
Revenue [Line Items] | |||
Standard warranty period on products | 36 months | ||
Maximum | Professional Services | |||
Revenue [Line Items] | |||
Percentage of revenue for professional services | 3% | 3% | |
Duration of professional services performed under customer contract | 1 month |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 477,642 | $ 477,642 | $ 478,897 | ||
Acquisition costs | $ 151 | $ (151) | $ 254 | $ (358) |
Business Combinations - Summary
Business Combinations - Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Goodwill | $ 477,642 | $ 478,897 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2023 USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance | $ 577,586 |
Ending Balance | 644,856 |
Total Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance | (32,009) |
Other comprehensive income (loss) | (2,068) |
Amounts reclassified from accumulated other comprehensive loss | 764 |
Ending Balance | (33,313) |
Cumulative Translation Adjustments | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance | (24,427) |
Other comprehensive income (loss) | (1,980) |
Ending Balance | (26,407) |
Pension Liability Adjustments | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance | (7,582) |
Other comprehensive income (loss) | (88) |
Amounts reclassified from accumulated other comprehensive loss | 764 |
Ending Balance | $ (6,906) |
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. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Numerators: | ||||
Consolidated net income | $ 21,223 | $ 22,490 | $ 60,367 | $ 58,789 |
Denominators: | ||||
Weighted average common shares outstanding—basic | 35,856 | 35,729 | 35,839 | 35,625 |
Dilutive potential common shares | 185 | 199 | 185 | 256 |
Weighted average common shares outstanding— diluted | 36,041 | 35,928 | 36,024 | 35,881 |
Antidilutive potential common shares excluded from above | 49 | 73 | 101 | 104 |
Earnings per common share: | ||||
Basic | $ 0.59 | $ 0.63 | $ 1.68 | $ 1.65 |
Diluted | $ 0.59 | $ 0.63 | $ 1.68 | $ 1.64 |
Earnings per Common Share - Add
Earnings per Common Share - Additional Information (Details) - shares shares in Thousands | Sep. 29, 2023 | Sep. 30, 2022 |
Performance Based Restricted Stock Units | ||
Computation Of Earnings Per Share [Line Items] | ||
Contingently issuable shares excluded from calculation of weighted average common shares outstanding | 143 | 124 |
Fair Value Measurements - Busin
Fair Value Measurements - Business Combination Contingent Consideration - Additional Information (Details) | 1 Months Ended | 9 Months Ended | |||||||||||||
Mar. 31, 2022 USD ($) | Mar. 31, 2022 EUR (€) | Mar. 31, 2021 USD ($) | Mar. 31, 2021 EUR (€) | Sep. 29, 2023 USD ($) | Sep. 29, 2023 EUR (€) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 EUR (€) | Jul. 31, 2019 USD ($) | Jul. 31, 2019 EUR (€) | |
Business Acquisition [Line Items] | |||||||||||||||
Payment for contingent consideration | $ 81,000 | $ 46,254,000 | |||||||||||||
ARGES GmbH | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Fair value of contingent consideration | $ 400,000 | € 400,000 | $ 3,800,000 | € 3,300,000 | $ 5,100,000 | € 4,100,000 | $ 7,900,000 | € 7,100,000 | |||||||
Adjustment to contingent consideration liabilities | 0 | ||||||||||||||
Undiscounted low range of contingent consideration | € | 0 | ||||||||||||||
Undiscounted high range of contingent consideration | $ 11,100,000 | € 10,000,000 | |||||||||||||
Payment for contingent consideration | $ 400,000 | € 300,000 | $ 400,000 | € 400,000 | $ 100,000 | € 100,000 |
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. 29, 2023 | Dec. 31, 2022 |
Assets | ||
Cash equivalents | $ 1,724 | $ 1,369 |
Assets, fair value | 1,961 | 1,760 |
Liabilities | ||
Liabilities, fair value | 364 | 837 |
Prepaid Expenses and Other Current Assets | ||
Assets | ||
Foreign currency forward contracts | 23 | 391 |
Accrued Expenses and Other Current Liabilities | ||
Assets | ||
Foreign currency forward contracts | 237 | |
Liabilities | ||
Contingent considerations - Current | 45 | 124 |
Foreign currency forward contracts | 412 | |
Other Liabilities | ||
Liabilities | ||
Contingent considerations - Long-term | 296 | 301 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Cash equivalents | 1,724 | 1,369 |
Assets, fair value | 1,724 | 1,369 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Assets, fair value | 237 | 391 |
Liabilities | ||
Liabilities, fair value | 23 | 412 |
Significant Other Observable Inputs (Level 2) | Prepaid Expenses and Other Current Assets | ||
Assets | ||
Foreign currency forward contracts | 23 | 391 |
Significant Other Observable Inputs (Level 2) | Accrued Expenses and Other Current Liabilities | ||
Assets | ||
Foreign currency forward contracts | 237 | |
Liabilities | ||
Foreign currency forward contracts | 412 | |
Significant Other Unobservable Inputs (Level 3) | ||
Liabilities | ||
Liabilities, fair value | 341 | 425 |
Significant Other Unobservable Inputs (Level 3) | Accrued Expenses and Other Current Liabilities | ||
Liabilities | ||
Contingent considerations - Current | 45 | 124 |
Significant Other Unobservable Inputs (Level 3) | Other Liabilities | ||
Liabilities | ||
Contingent considerations - Long-term | $ 296 | $ 301 |
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. 29, 2023 USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 425 |
Payments | (81) |
Fair value adjustments | $ 0 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring Charges And Acquisition Related Costs |
Effect of foreign exchange rates | $ (3) |
Ending balance | $ 341 |
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. 29, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 29, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | ||||||
Notional amount of foreign currency forward contracts | $ 163,500,000 | $ 163,500,000 | $ 117,100,000 | |||
Net gain (loss) on foreign currency forward contracts | $ 200,000 | |||||
Foreign Exchange Transaction Gains (Losses) | ||||||
Derivative [Line Items] | ||||||
Net gain (loss) on foreign currency forward contracts | $ (200,000) | $ (800,000) | $ 2,500,000 | $ (2,300,000) | ||
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 |
Jun. 30, 2023 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. 29, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance at beginning of the period | $ 478,897 |
Effect of foreign exchange rate changes | (1,255) |
Balance at end of the period | $ 477,642 |
Goodwill By Reportable Segment
Goodwill By Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 628,871 | $ 630,126 |
Accumulated impairment of goodwill | (151,229) | (151,229) |
Total | 477,642 | 478,897 |
Precision Medicine and Manufacturing | ||
Goodwill [Line Items] | ||
Goodwill | 208,110 | 208,387 |
Accumulated impairment of goodwill | (102,461) | (102,461) |
Total | 105,649 | 105,926 |
Medical Solutions | ||
Goodwill [Line Items] | ||
Goodwill | 166,905 | 167,891 |
Accumulated impairment of goodwill | (31,722) | (31,722) |
Total | 135,183 | 136,169 |
Robotics and Automation | ||
Goodwill [Line Items] | ||
Goodwill | 253,856 | 253,848 |
Accumulated impairment of goodwill | (17,046) | (17,046) |
Total | $ 236,810 | $ 236,802 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | $ 429,249 | $ 430,073 |
Amortizable intangible assets, accumulated amortization | (291,180) | (267,334) |
Amortizable intangible assets, net carrying amount | 138,069 | 162,739 |
Non-amortizable intangible assets | 13,027 | 13,027 |
Gross carrying amount | 442,276 | 443,100 |
Net carrying amount | 151,096 | 175,766 |
Patents and Developed Technologies | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | 184,246 | 184,589 |
Amortizable intangible assets, accumulated amortization | (141,182) | (132,350) |
Amortizable intangible assets, net carrying amount | 43,064 | 52,239 |
Customer Relationships | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | 221,706 | 222,173 |
Amortizable intangible assets, accumulated amortization | (135,476) | (121,527) |
Amortizable intangible assets, net carrying amount | 86,230 | 100,646 |
Trademarks and Trade Names | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | 23,297 | 23,311 |
Amortizable intangible assets, accumulated amortization | (14,522) | (13,457) |
Amortizable intangible assets, net carrying amount | $ 8,775 | $ 9,854 |
Amortization Expense of Intangi
Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense – cost of revenue | $ 3,051 | $ 3,247 | $ 9,119 | $ 10,004 |
Amortization expense - operating expenses | 5,131 | 6,472 | 15,344 | 20,987 |
Total amortization expense | $ 8,182 | $ 9,719 | $ 24,463 | $ 30,991 |
Estimated Amortization Expense
Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
2023 (remainder of year) | $ 8,070 | |
2024 | 26,769 | |
2025 | 22,667 | |
2026 | 19,160 | |
2027 | 14,058 | |
Thereafter | 47,345 | |
Amortizable intangible assets, net carrying amount | 138,069 | $ 162,739 |
Cost of Revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
2023 (remainder of year) | 3,005 | |
2024 | 9,771 | |
2025 | 8,289 | |
2026 | 6,933 | |
2027 | 4,197 | |
Thereafter | 10,869 | |
Amortizable intangible assets, net carrying amount | 43,064 | |
Operating Expenses | ||
Finite Lived Intangible Assets [Line Items] | ||
2023 (remainder of year) | 5,065 | |
2024 | 16,998 | |
2025 | 14,378 | |
2026 | 12,227 | |
2027 | 9,861 | |
Thereafter | 36,476 | |
Amortizable intangible assets, net carrying amount | $ 95,005 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 109,067 | $ 118,292 |
Work-in-process | 21,266 | 23,328 |
Finished goods | 23,096 | 25,738 |
Demo and consigned inventory | 380 | 639 |
Total inventories | $ 153,809 | $ 167,997 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||||
Accrued compensation and benefits | $ 26,691 | $ 35,501 | ||
Accrued warranty | 5,498 | 5,127 | $ 4,738 | $ 4,783 |
Contract liabilities, current portion | 6,576 | 8,128 | ||
Finance lease obligations | 708 | 668 | ||
Other | 14,902 | 13,620 | ||
Total | $ 54,375 | $ 63,044 |
Accrued Warranty (Details)
Accrued Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Product Warranties Disclosures [Abstract] | ||
Balance at beginning of the period | $ 5,127 | $ 4,783 |
Provision charged to cost of revenue | 1,837 | 2,091 |
Use of provision | (1,467) | (1,933) |
Foreign currency exchange rate changes | 1 | (203) |
Balance at end of the period | $ 5,498 | $ 4,738 |
Other Long Term Liabilities (De
Other Long Term Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Finance lease obligations | $ 4,117 | $ 4,652 |
Accrued contingent considerations and earn-outs | 296 | 301 |
Other | 792 | 1,132 |
Total | $ 5,205 | $ 6,085 |
Outstanding Debt (Details)
Outstanding Debt (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total current portion of long-term debt | $ 4,736 | $ 4,800 |
Total long-term debt | 347,879 | 430,662 |
Total Senior Credit Facilities | 352,615 | 435,462 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt, Gross | 4,763 | 4,832 |
Long-term debt, Gross | 72,400 | 77,060 |
Term Loan And Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Less: unamortized debt issuance costs | (27) | (32) |
Less: unamortized debt issuance costs | (3,944) | (4,811) |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 279,423 | $ 358,413 |
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. 29, 2023 USD ($) | Sep. 29, 2023 EUR (€) | Sep. 30, 2022 USD ($) | Oct. 05, 2021 USD ($) | Mar. 27, 2020 USD ($) | Dec. 31, 2019 EUR (€) | |
Debt Instrument [Line Items] | |||||||||
Repayment of debt | $ 82,047,000 | $ 37,791,000 | |||||||
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 | ||||||||
Debt instrument, frequency of periodic payment | quarterly | ||||||||
Quarterly installments payable on term loan | € | € 1,100,000 | ||||||||
Repayment of debt | 3,600,000 | € 3,400,000 | |||||||
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 | ||||||||
Repayment of debt | $ 78,400,000 | ||||||||
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) | 9 Months Ended |
Sep. 29, 2023 | |
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 ten years, and options to terminate the leases within one year. |
Minimum | |
Lessee Lease Description [Line Items] | |
Lease agreement expiration year | 2023 |
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. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,639 | $ 2,544 | $ 7,916 | $ 7,936 |
Finance lease cost | ||||
Amortization of right-of-use assets | 150 | 150 | 452 | 451 |
Interest on lease liabilities | 68 | 77 | 208 | 234 |
Variable lease cost | 227 | 271 | 787 | 888 |
Total lease cost | $ 3,084 | $ 3,042 | $ 9,363 | $ 9,509 |
Summary of Balance Sheet Inform
Summary of Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Operating leases | ||
Operating lease right-of-use assets | $ 40,527 | $ 43,317 |
Current portion of operating lease liabilities | 8,072 | 7,793 |
Operating lease liabilities | 38,577 | 40,808 |
Total operating lease liabilities | 46,649 | 48,601 |
Finance leases | ||
Finance lease right-of-use assets gross | 9,582 | 9,582 |
Finance lease right-of-use assets accumulated depreciation | (6,122) | (5,670) |
Finance lease assets included in property, plant and equipment, net | $ 3,460 | $ 3,912 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Current portion of finance lease liabilities | $ 708 | $ 668 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Noncurrent portion of finance lease liabilities | $ 4,117 | $ 4,652 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Total finance lease liabilities | $ 4,825 | $ 5,320 |
Weighted-average remaining lease term (in years): | ||
Operating leases | 7 years 8 months 12 days | 8 years 2 months 12 days |
Finance leases | 5 years 9 months 18 days | 6 years 6 months |
Weighted-average discount rate: | ||
Operating leases | 4.84% | 4.64% |
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. 29, 2023 | Sep. 30, 2022 | |
Cash paid for amounts included in lease liabilities: | ||
Operating cash flows from finance leases | $ 208 | $ 234 |
Operating cash flows from operating leases | 5,916 | 5,921 |
Financing cash flows from finance leases | 484 | 447 |
Supplemental non-cash information: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 3,893 | $ 4,621 |
Future Minimum Lease Payments U
Future Minimum Lease Payments Under Operating and Finance Leases (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Operating Lease | ||
2023 (remainder of year) | $ 2,426 | |
2024 | 9,617 | |
2025 | 9,386 | |
2026 | 7,945 | |
2027 | 7,066 | |
Thereafter | 20,832 | |
Total minimum lease payments | 57,272 | |
Less: Interest | (10,623) | |
Present value of lease liabilities | 46,649 | $ 48,601 |
Finance Lease | ||
2023 (remainder of year) | 238 | |
2024 | 954 | |
2025 | 954 | |
2026 | 979 | |
2027 | 1,003 | |
Thereafter | 1,505 | |
Total minimum lease payments | 5,633 | |
Less: Interest | (808) | |
Present value of lease liabilities | $ 4,825 | $ 5,320 |
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 | |||||
Feb. 28, 2023 | May 31, 2021 | Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Feb. 29, 2020 | |
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 | $ 6,037,000 | $ 5,954,000 | $ 18,378,000 | 17,809,000 | ||||
Selling, General and Administrative Expenses | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Share-based compensation expense recognized | $ 5,229,000 | $ 4,649,000 | 15,631,000 | 13,906,000 | ||||
Employee Stock Option | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Fair value of stock options granted | $ 3,000,000 | |||||||
Expected annual dividend yield | 0% | |||||||
Hybrid PSUs | ||||||||
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 | 41,000 | 41,000 | 38,000 | |||||
Amended and Restated 2010 Incentive Plan | Employee Stock Option | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting/Performance period | 3 years | |||||||
Stock options, Granted | 48,000 | 48,000 | ||||||
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 | $ 15,200,000 | |||||||
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 | $ 1,200,000 | $ 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 days | |||||||
Amended and Restated 2010 Incentive Plan | Attainment-based PSUs | 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 | Attainment-based PSUs | 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 | Market-based PSUs | 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 | Market-based PSUs | 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 | Hybrid PSUs | 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 | 260% | |||||||
Amended and Restated 2010 Incentive Plan | Hybrid PSUs | 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 | $ 9,900,000 | |||||||
Maximum number of common shares to be earned under these PSU grants | 369,000 | 369,000 | ||||||
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. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 6,037 | $ 5,954 | $ 18,378 | $ 17,809 |
Selling, general and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 5,229 | 4,649 | 15,631 | 13,906 |
Research and development and engineering | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 510 | 586 | 1,495 | 1,780 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 298 | $ 719 | $ 1,252 | $ 2,123 |
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. 29, 2023 $ / shares shares | |
Restricted Stock Units | |
Unvested, Beginning Balance | 238 |
Granted | 91 |
Vested | (102) |
Forfeited | (24) |
Unvested, Ending Balance | 203 |
Expected to vest at end of period | 185 |
Weighted Average Grant Date Fair Value | |
Unvested, Beginning Balance | $ / shares | $ 128.26 |
Granted | $ / shares | 156.47 |
Vested | $ / shares | 122.48 |
Forfeited | $ / shares | 139.5 |
Unvested, Ending Balance | $ / shares | $ 142.72 |
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. 29, 2023 $ / shares shares | |
Performance-based Awards | |
Unvested, Beginning Balance | 216 |
Granted | 57 |
Performance adjustments | 20 |
Vested | (70) |
Forfeited | (16) |
Unvested, Ending Balance | 207 |
Expected to vest at end of period | 246 |
Weighted Average Grant Date Fair Value | |
Unvested, Beginning Balance | $ / shares | $ 144.16 |
Granted | $ / shares | 179.15 |
Performance adjustment | $ / shares | 122.24 |
Vested | $ / shares | 116.56 |
Forfeited | $ / shares | 168.97 |
Unvested, Ending Balance | $ / shares | $ 160.40 |
Performance-Based Awards Issu_2
Performance-Based Awards Issued and Outstanding (Parenthetical) (Details) | 9 Months Ended |
Sep. 29, 2023 | |
EPS and Applicable Relative TSR Performance Condition | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Vesting percentage | 142% |
Fair Value of TSR Performance-B
Fair Value of TSR Performance-Based Restricted Stock Units Estimated Using Monte-Carol Valuation Method (Details) - Hybrid PSUs | 9 Months Ended |
Sep. 29, 2023 $ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Grant-date stock price | $ 156.72 |
Expected volatility | 35.89% |
Risk-free interest rate | 4.44% |
Expected annual dividend yield | 0% |
Fair value | $ 181.45 |
Stock Options Issued and Outsta
Stock Options Issued and Outstanding (Details) - Amended and Restated 2010 Incentive Plan - Employee Stock Option - $ / shares shares in Thousands | 1 Months Ended | 9 Months Ended |
Feb. 28, 2023 | Sep. 29, 2023 | |
Stock options | ||
Outstanding as of December 31, 2022 | 84 | |
Stock options, Granted | 48 | 48 |
Outstanding as of March 31, 2023 | 132 | |
Exercisable as of March 31, 2023 | 57 | |
Expected to vest as of March 31, 2023 | 75 | |
Weighted Average Exercise Price | ||
Outstanding as of December 31, 2022 | $ 72.18 | |
Granted | 156.72 | |
Outstanding as of March 31, 2023 | $ 102.86 |
Fair Value of Stock Options Gra
Fair Value of Stock Options Granted Estimated Using Black-Scholes Valuation Model (Details) - Employee Stock Option | 9 Months Ended |
Sep. 29, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected option term in years | 4 years 6 months |
Expected volatility | 40.70% |
Risk-free interest rate | 4% |
Expected annual dividend yield | 0% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Income Taxes [Line Items] | ||||
Effective tax rate on income from operations | 7.70% | 16% | 11.20% | 13.80% |
Effective tax rate on income from operations | 4.50% | 0.20% | ||
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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring charges | $ 4,330 | $ 1,776 | $ 7,937 | $ 3,008 |
Acquisition and related charges | 151 | (151) | 254 | (358) |
Total restructuring, acquisition, and related costs | 4,481 | 1,625 | 8,191 | 2,650 |
2022 Restructuring | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring charges | 2,450 | 889 | 5,324 | 889 |
2020 Restructuring | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Total restructuring charges | $ 1,880 | $ 887 | $ 2,613 | $ 2,119 |
Restructuring, Acquisition, a_3
Restructuring, Acquisition, and Related Costs - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Restructuring, Acquisition, and Related Costs [Line Items] | ||||
Acquisition and related charges | $ 151 | $ (151) | $ 254 | $ (358) |
Adjustment in fair values of certain prior-year acquisition contingent considerations | (1,000) | (1,400) | ||
Finders' Fees, Legal, Valuation And Other Professional Or Consulting Fees | ||||
Restructuring, Acquisition, and Related Costs [Line Items] | ||||
Acquisition and related charges | 200 | $ 800 | $ 300 | $ 1,100 |
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 and nine months ended September 29, 2023, the Company recorded $2.5 million and $5.3 million, respectively, in severance, facility related, and other charges in connection with the 2022 restructuring program. As of September 29, 2023, the Company had incurred cumulative costs of $6.7 million related to this restructuring plan. The Company anticipates substantially completing the 2022 restructuring program by the end of 2023 and expects to incur additional restructuring charges of $2.5 million to $3.0 million related to the 2022 restructuring program. | |||
Restructuring cumulative costs incurred | 6,700 | $ 6,700 | ||
2022 Restructuring | Minimum | ||||
Restructuring, Acquisition, and Related Costs [Line Items] | ||||
Restructuring costs | 2,500 | 2,500 | ||
2022 Restructuring | Maximum | ||||
Restructuring, Acquisition, and Related Costs [Line Items] | ||||
Restructuring costs | 3,000 | 3,000 | ||
2022 Restructuring | Severance, Facility Related, and Other Charges | ||||
Restructuring, Acquisition, and Related Costs [Line Items] | ||||
Severance cost | 2,500 | $ 5,300 | ||
2020 Restructuring | ||||
Restructuring, Acquisition, and Related Costs [Line Items] | ||||
Restructuring and related cost description | 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 29, 2023, the Company recorded $1.9 million and $2.6 million respectively, in severance, facility related, and other costs in connection with the 2020 restructuring program. As of September 29, 2023, the Company had incurred cumulative costs of $16.5 million related to this restructuring plan. The 2020 restructuring program was substantially completed in the third quarter of 2023. | |||
Restructuring cumulative costs incurred | 16,500 | $ 16,500 | ||
2020 Restructuring | Severance, Facility Related, and Other Charges | ||||
Restructuring, Acquisition, and Related Costs [Line Items] | ||||
Severance cost | $ 1,900 | $ 2,600 |
Summary of Restructuring Charge
Summary of Restructuring Charges by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 4,330 | $ 1,776 | $ 7,937 | $ 3,008 |
2022 Restructuring | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 2,450 | 889 | 5,324 | 889 |
2022 Restructuring | Precision Medicine and Manufacturing | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 76 | 889 | 1,064 | 889 |
2022 Restructuring | Medical Solutions | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 253 | 293 | ||
2022 Restructuring | Robotics and Automation | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 1,632 | 3,168 | ||
2022 Restructuring | Unallocated Corporate and Shared Services | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 489 | 799 | ||
2020 Restructuring | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 1,880 | 887 | 2,613 | 2,119 |
2020 Restructuring | Precision Medicine and Manufacturing | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 1,543 | 758 | 2,050 | 1,952 |
2020 Restructuring | Medical Solutions | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 101 | 207 | ||
2020 Restructuring | Robotics and Automation | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 337 | 22 | $ 563 | (46) |
2020 Restructuring | Unallocated Corporate and Shared Services | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 6 | $ 6 |
Summary of Accrual Activities b
Summary of Accrual Activities by Components Related to Company's Restructuring Charges (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2023 USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Accrued expense beginning balance | $ 2,410 |
Restructuring charges | 7,937 |
Cash payments | (5,969) |
Non-cash write-offs and other adjustments | (1,346) |
Accrued expense ending balance | 3,032 |
Employee Related | |
Restructuring Cost And Reserve [Line Items] | |
Accrued expense beginning balance | 1,902 |
Restructuring charges | 4,799 |
Cash payments | (4,803) |
Non-cash write-offs and other adjustments | 20 |
Accrued expense ending balance | 1,918 |
Facility Related | |
Restructuring Cost And Reserve [Line Items] | |
Accrued expense beginning balance | 452 |
Restructuring charges | 1,929 |
Cash payments | (600) |
Non-cash write-offs and other adjustments | (823) |
Accrued expense ending balance | 958 |
Other Restructuring Charges | |
Restructuring Cost And Reserve [Line Items] | |
Accrued expense beginning balance | 56 |
Restructuring charges | 1,209 |
Cash payments | (566) |
Non-cash write-offs and other adjustments | (543) |
Accrued expense ending balance | $ 156 |
Summary of Accrual Activities_2
Summary of Accrual Activities by Components Related to Company's Restructuring Charges (Parenthetical) (Details) $ in Thousands | 9 Months Ended |
Sep. 29, 2023 USD ($) | |
Business Combinations [Abstract] | |
Impairment of assets | $ 1,421 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 29, 2023 | Sep. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Insurance recovery payments | $ 4.4 | $ 5 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 29, 2023 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. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 221,503 | $ 222,958 | $ 670,093 | $ 642,530 |
Gross Profit | $ 101,591 | $ 98,408 | $ 303,342 | $ 283,929 |
Gross profit margin percentage | 45.90% | 44.10% | 45.30% | 44.20% |
Operating Income (Loss) | $ 30,309 | $ 28,661 | $ 88,819 | $ 76,235 |
Operating Segments | Precision Medicine and Manufacturing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 71,277 | 70,799 | 215,138 | 203,042 |
Gross Profit | $ 36,208 | $ 34,699 | $ 107,054 | $ 94,268 |
Gross profit margin percentage | 50.80% | 49% | 49.80% | 46.40% |
Operating Income (Loss) | $ 18,508 | $ 18,351 | $ 54,803 | $ 45,782 |
Operating Segments | Medical Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 83,378 | 73,345 | 244,340 | 200,911 |
Gross Profit | $ 34,027 | $ 28,201 | $ 100,170 | $ 79,966 |
Gross profit margin percentage | 40.80% | 38.40% | 41% | 39.80% |
Operating Income (Loss) | $ 11,050 | $ 8,744 | $ 30,974 | $ 20,811 |
Operating Segments | Robotics and Automation | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 66,848 | 78,814 | 210,615 | 238,577 |
Gross Profit | $ 32,652 | $ 36,832 | $ 100,376 | $ 113,846 |
Gross profit margin percentage | 48.80% | 46.70% | 47.70% | 47.70% |
Operating Income (Loss) | $ 12,208 | $ 15,800 | $ 39,456 | $ 48,222 |
Unallocated Corporate and Shared Services | ||||
Segment Reporting Information [Line Items] | ||||
Gross Profit | (1,296) | (1,324) | (4,258) | (4,151) |
Operating Income (Loss) | $ (11,457) | $ (14,234) | $ (36,414) | $ (38,580) |
Depreciation and Amortization E
Depreciation and Amortization Expenses by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Depreciation and Amortization Expenses | ||||
Depreciation and amortization expenses | $ 11,397 | $ 13,143 | $ 35,065 | $ 40,999 |
Unallocated Corporate and Shared Services | ||||
Depreciation and Amortization Expenses | ||||
Depreciation and amortization expenses | 188 | 93 | 820 | 309 |
Precision Medicine and Manufacturing | Operating Segments | ||||
Depreciation and Amortization Expenses | ||||
Depreciation and amortization expenses | 2,644 | 2,760 | 7,901 | 8,234 |
Medical Solutions | Operating Segments | ||||
Depreciation and Amortization Expenses | ||||
Depreciation and amortization expenses | 3,860 | 4,240 | 11,877 | 12,989 |
Robotics and Automation | Operating Segments | ||||
Depreciation and Amortization Expenses | ||||
Depreciation and amortization expenses | $ 4,705 | $ 6,050 | $ 14,467 | $ 19,467 |
Schedule of Geographic Revenue
Schedule of Geographic Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 221,503 | $ 222,958 | $ 670,093 | $ 642,530 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 110,462 | 99,230 | 321,898 | 268,585 |
Germany | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 33,263 | 34,625 | 100,222 | 99,526 |
Rest of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 34,257 | 33,996 | 98,159 | 105,327 |
China | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 15,679 | 24,209 | 54,331 | 80,877 |
Rest of Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 24,060 | 26,886 | 79,561 | 74,400 |
Other Countries | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 3,782 | $ 4,012 | $ 15,922 | $ 13,815 |
Schedule of Revenue by End Mark
Schedule of Revenue by End Market (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
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 | 57% | 50% | 54% | 48% |
Advanced Industrial | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue by end market | 43% | 50% | 46% | 52% |