Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | NOVT | |
Entity Registrant Name | NOVANTA INC | |
Entity Central Index Key | 1,076,930 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,443,526 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 64,739 | $ 59,959 |
Accounts receivable, net of allowance of $536 and $500, respectively | 61,787 | 57,188 |
Inventories | 59,614 | 59,566 |
Income taxes receivable | 4,505 | 2,510 |
Prepaid expenses and other current assets | 5,621 | 5,989 |
Total current assets | 196,266 | 185,212 |
Property, plant and equipment, net | 34,911 | 40,550 |
Deferred tax assets | 5,886 | 7,885 |
Other assets | 10,466 | 12,673 |
Intangible assets, net | 60,871 | 66,269 |
Goodwill | 108,337 | 103,456 |
Total assets | 416,737 | 416,045 |
Current Liabilities | ||
Current portion of long-term debt | 7,365 | 7,385 |
Accounts payable | 28,179 | 24,401 |
Income taxes payable | 1,274 | 3,985 |
Accrued expenses and other current liabilities | 30,074 | 21,182 |
Total current liabilities | 66,892 | 56,953 |
Long-term debt | 72,267 | 88,426 |
Deferred tax liabilities | 42 | 449 |
Income taxes payable | 5,855 | 6,071 |
Other liabilities | 14,481 | 19,445 |
Total liabilities | 159,537 | 171,344 |
Commitments and Contingencies (Note 13) | ||
Stockholders’ Equity: | ||
Common shares, no par value; Authorized shares: unlimited; Issued and outstanding: 34,439 and 34,345, respectively | 423,856 | 423,856 |
Additional paid-in capital | 29,257 | 29,225 |
Accumulated deficit | (175,303) | (189,550) |
Accumulated other comprehensive loss | (20,610) | (18,830) |
Total stockholders’ equity | 257,200 | 244,701 |
Total liabilities and stockholders’ equity | $ 416,737 | $ 416,045 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 536 | $ 500 |
Common shares, no par value | $ 0 | $ 0 |
Common shares, Issued | 34,439 | 34,345 |
Common shares, outstanding | 34,439 | 34,345 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 97,829 | $ 92,271 | $ 285,879 | $ 283,379 |
Cost of revenue | 56,617 | 52,361 | 166,279 | 162,118 |
Gross profit | 41,212 | 39,910 | 119,600 | 121,261 |
Operating expenses: | ||||
Research and development and engineering | 7,961 | 7,693 | 24,029 | 23,748 |
Selling, general and administrative | 20,972 | 19,979 | 62,357 | 62,969 |
Amortization of purchased intangible assets | 2,066 | 1,852 | 6,153 | 5,593 |
Restructuring, acquisition and divestiture related costs (gain) | (835) | 1,379 | 5,828 | 4,232 |
Total operating expenses | 30,164 | 30,903 | 98,367 | 96,542 |
Operating income from continuing operations | 11,048 | 9,007 | 21,233 | 24,719 |
Interest income (expense), net | (1,081) | (1,248) | (3,471) | (4,020) |
Foreign exchange transaction gains (losses), net | 188 | 383 | 978 | (2,253) |
Other income (expense), net | 686 | 878 | 1,699 | 21,641 |
Income from continuing operations before income taxes | 10,841 | 9,020 | 20,439 | 40,087 |
Income tax provision | 3,371 | 2,452 | 6,192 | 10,562 |
Income from continuing operations | 7,470 | 6,568 | 14,247 | 29,525 |
Loss from discontinued operations, net of tax | (13) | |||
Consolidated net income | $ 7,470 | $ 6,568 | $ 14,247 | $ 29,512 |
Earnings per common share from continuing operations: | ||||
Basic | $ 0.22 | $ 0.19 | $ 0.41 | $ 0.85 |
Diluted | 0.21 | 0.19 | 0.41 | 0.84 |
Loss per common share from discontinued operations: | ||||
Basic | 0 | |||
Diluted | 0 | |||
Earnings per common share: | ||||
Basic | 0.22 | 0.19 | 0.41 | 0.85 |
Diluted | $ 0.21 | $ 0.19 | $ 0.41 | $ 0.84 |
Weighted average common shares outstanding—basic | 34,677 | 34,599 | 34,689 | 34,578 |
Weighted average common shares outstanding—diluted | 34,928 | 35,055 | 34,889 | 35,027 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Consolidated net income | $ 7,470 | $ 6,568 | $ 14,247 | $ 29,512 | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments, net of tax | [1] | (563) | (1,624) | (3,413) | (2,172) |
Pension liability adjustments, net of tax | [2] | 338 | 517 | 1,633 | 937 |
Total other comprehensive income (loss) | (225) | (1,107) | (1,780) | (1,235) | |
Total consolidated comprehensive income (loss) | $ 7,245 | $ 5,461 | $ 12,467 | $ 28,277 | |
[1] | The tax effect on this component of comprehensive income was nominal for the three and nine months ended September 30, 2016 and $0.2 million for the three and nine months ended October 2, 2015. | ||||
[2] | The tax effect on this component of comprehensive income was not material for all periods presented. See Note 4 for the total amount of pension liability adjustments reclassified out of accumulated other comprehensive income (loss). |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 02, 2015 | Oct. 02, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments - Tax effect on component of comprehensive income | $ 0.2 | $ 0.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 14,247 | $ 29,512 |
Less: Loss from discontinued operations, net of tax | 13 | |
Income from continuing operations | 14,247 | 29,525 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities of continuing operations: | ||
Depreciation and amortization | 15,317 | 14,088 |
Provision for inventory excess and obsolescence | 2,387 | 1,303 |
Share-based compensation | 3,385 | 3,494 |
Deferred income taxes | 162 | 3,782 |
Earnings from equity-method investment | (1,698) | (2,007) |
Gain on disposal of business | (19,633) | |
Gain on sale of fixed assets | (1,736) | (24) |
Dividend from equity-method investment | 2,341 | |
Non-cash restructuring and acquisition related charges | 616 | 511 |
Earn-out adjustments | 1,427 | |
Other | 974 | 921 |
Changes in assets and liabilities which (used)/provided cash, excluding effects from businesses purchased or classified as discontinued operations: | ||
Accounts receivable | (3,683) | (6,996) |
Inventories | (1,470) | (5,352) |
Income taxes receivable, prepaid expenses and other current assets | (3,594) | 1,244 |
Accounts payable, income taxes payable, accrued expenses and other current liabilities | 6,110 | 6,602 |
Other non-current assets and liabilities | (78) | (1,982) |
Cash provided by operating activities of continuing operations | 34,707 | 25,476 |
Cash used in operating activities of discontinued operations | (13) | |
Cash provided by operating activities | 34,707 | 25,463 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (7,005) | (4,111) |
Acquisition of businesses, net of cash acquired and working capital adjustments | (8,952) | (13,048) |
Proceeds from the sale of property, plant and equipment | 7,037 | 123 |
Proceeds from the sale of business, net of transaction costs | 29,570 | |
Cash provided by (used in) investing activities of continuing operations | (8,920) | 12,534 |
Cash provided by investing activities of discontinued operations | 1,498 | |
Cash provided by (used in) investing activities | (7,422) | 12,534 |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 13,000 | |
Repayments of long-term debt and revolving credit facility | (14,375) | (18,625) |
Payments for debt issuance costs | (2,496) | |
Payments of withholding taxes from stock-based compensation awards | (1,719) | (1,431) |
Repurchase of common stock | (1,634) | (997) |
Capital lease payments | (905) | (414) |
Other financing activities | (1) | 23 |
Cash used in financing activities of continuing operations | (21,130) | (8,444) |
Cash used in financing activities of discontinued operations | 0 | 0 |
Cash used in financing activities | (21,130) | (8,444) |
Effect of exchange rates on cash and cash equivalents | (1,375) | (610) |
Increase in cash and cash equivalents | 4,780 | 28,943 |
Cash and cash equivalents, beginning of period | 59,959 | 51,146 |
Cash and cash equivalents, end of period | 64,739 | 80,089 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 2,167 | 2,939 |
Cash paid for income taxes | 10,870 | 6,071 |
Income tax refunds received | $ 359 | $ 63 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Novanta Inc. and its subsidiaries (collectively referred to as the “Company”, “we”, “us”, “our”) design, develop, manufacture and sell precision photonic and motion control components and subsystems to Original Equipment Manufacturers (“OEMs”) in the medical and advanced industrial markets. We combine deep expertise at the intersection of photonics and motion to solve complex technical challenges. This enables us to engineer core components and subsystems that deliver extreme precision and performance, tailored to our customers’ demanding applications. We deliver highly engineered photonics, vision and precision motion solutions to customers around the world. The accompanying unaudited interim consolidated financial statements have been prepared in 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 the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements and notes included in this report should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. 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 has a 41% ownership interest in Laser Quantum Ltd. (“Laser Quantum”), a privately held company located in the United Kingdom. The Company records the results of this entity under the equity method as it does not have a controlling interest in the entity. The Company’s unaudited interim financial statements are prepared for each quarterly period ending on the Friday closest to the end of the calendar quarter, with the exception of the fourth quarter which always ends on December 31. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its estimates based on historical experience, current conditions and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed on an on-going basis and the effects of revisions are reflected in the period in which they are deemed to be necessary. Actual results could differ significantly from those estimates. Recent Accounting Pronouncements Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides further clarification on eight cash flow classification issues. The standard further clarifies the classification of the following: (i) debt prepayment or debt extinguishment costs; (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (iii) contingent consideration payments made after a business combination; (iv) proceeds from the settlement of insurance claims; (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions; and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. ASU 2016-15 should be applied using a retrospective transition method for each period presented. The Company is currently evaluating the impact of the new standard on our consolidated financial statements. Share-Based Compensation In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the accounting for employee share-based payment transactions to require recognition of the income tax effects resulting from the settlement of stock-based awards as income tax provision or benefit in the income statement in the reporting period in which they occur. In addition, ASU 2016-09 requires that all tax-related cash flows resulting from share-based payments, including the excess tax benefits related to the settlement of stock-based awards, be classified as cash flows from operating activities in the statement of cash flows. ASU 2016-09 also requires that cash paid through directly withholding shares for tax-withholding purposes be classified as a financing activity in the statement of cash flows. In addition, ASU 2016-09 allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest, consistent with existing U.S. GAAP, or account for forfeitures when they occur. The new standard is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2016-09 during the second quarter of 2016, which required no retrospective adjustments to the consolidated financial statements. The adoption of ASU 2016-09 had an impact of less than $0.1 million on income from continuing operation on the Company’s consolidated statements of operations for the three months ended July 1, 2016. The adoption of ASU 2016-09 had no impact on the prior year consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which provides comprehensive lease accounting guidance. The standard requires entities to recognize lease assets and liabilities on the balance sheet and to disclose key information about leasing arrangements. ASU 2016-02 will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the new standard on our consolidated financial statements. Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40),” which requires management to assess a company’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. ASU 2014-15 will be effective for annual reporting periods ending after December 15, 2016. Early application is permitted. The Company does not expect the adoption of ASU 2014-15 to have an impact on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which provides guidance for revenue recognition. ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition,” and requires entities to recognize revenue in a way that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for annual and interim reporting periods beginning after December 15, 2016. Early adoption is not permitted. Upon adoption, an entity may apply the new guidance either retrospectively to each prior reporting period presented or retrospectively only to customer contracts not yet completed as of the date of adoption with the cumulative effect of initially applying the standard recognized in beginning retained earnings at the date of the initial application. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year, with the option of early adoption as of the original effective date. The amendment in ASU 2015-14 will result in ASU 2014-09 being effective for annual and interim reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of the new standard on our consolidated financial statements and plans to adopt the standard beginning in the first quarter of 2018. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | 2. Business Combinations On May 24, 2016, the Company acquired 100% of the outstanding stock of Reach Technology Inc. (“Reach”), a Fremont, California-based provider of embedded touch screen technology solutions for OEMs in the medical and advanced industrial markets, for a total purchase price of $9.4 million, subject to customary working capital adjustments. The Company expects that the addition of Reach will enable the Company to enhance its value proposition with medical OEM customers by adding Reach’s high-performance touch screen solutions to its product offerings. The Company recognized acquisition costs of $0.2 million during the nine months ended September 30, 2016. Acquisition-related costs are included in restructuring, acquisition and divestiture related costs in the consolidated statements of operations. The acquisition of Reach has been accounted for as a business combination. The allocation of the purchase price is based upon a valuation of assets and liabilities acquired. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The fair values of intangible assets were based on valuations using an income approach, with estimates and assumptions provided by management of Reach and the Company. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The Company’s estimates and assumptions in determining the estimated fair values of certain assets and liabilities are subject to change within the measurement period (up to one year from the acquisition date) as a result of additional information obtained with regards to facts and circumstances that existed as of the acquisition date. The purchase price allocation is preliminary. The primary areas of the purchase price allocation that are not yet finalized relate to the final settlement of working capital and the amount of the residual goodwill. Based upon a preliminary valuation, the total purchase price was allocated as follows (in thousands): Purchase Allocation Cash $ 238 Accounts receivable 991 Inventories 1,611 Prepaid expenses and other current assets 12 Intangible assets 3,953 Goodwill 4,924 Total assets acquired 11,729 Accounts payable 280 Other liabilities 148 Deferred tax liabilities 1,504 Total liabilities assumed 1,932 Total assets acquired, net of liabilities assumed 9,797 Less: cash acquired 238 Plus: working capital adjustments (185 ) Total purchase price, net of cash acquired $ 9,374 As of September 30, 2016, the working capital adjustments had not been finalized and were estimated to be an additional cash payment of $0.2 million which has been included in accrued expenses and other current liabilities in the consolidated balance sheet. The fair value of intangible assets is comprised of the following (dollar amounts in thousands): Weighted Average Estimated Fair Amortization Value Period Customer relationships $ 2,770 15 years Developed technology 500 7 years Trademarks and trade names 258 10 years Backlog 425 1 year Total $ 3,953 The purchase price allocation resulted in $4.9 million of goodwill and $4.0 million of identifiable intangible assets, none of which is expected to be deductible for tax purposes. Intangible assets are being amortized over their weighted average useful lives primarily based upon the pattern in which anticipated economic benefits from such assets are expected to be realized. The goodwill recorded represents the anticipated incremental value of future cash flow potential attributable to: (i) Reach’s ability to grow their business with existing and new customers, including leveraging the Company’s customer base, and (ii) cost improvements due to scale and more efficient operations. The operating results of Reach were included in the Company’s results of operations beginning on May 24, 2016. Reach contributed revenues of $3.2 million and a loss from continuing operations before income taxes of $0.4 million for the nine months ended September 30, 2016. Operating loss from continuing operations before income taxes for the nine months ended September 30, 2016 included transition costs of $0.6 million recognized under earn-out agreements. The pro forma financial information reflecting the operating results of Reach, as if it had been acquired as of January 1, 2015, would not differ materially from the operating results of the Company as reported for the year ended December 31, 2015. Reach is included in the Company’s Vision reportable segment. On November 9, 2015, the Company acquired certain assets and liabilities of Lincoln Laser Company (“Lincoln Laser”), a Phoenix, Arizona-based provider of ultrafast precision polygon scanners and other optical scanning solutions for the medical, food processing, and advanced industrial markets, for a total purchase price of $12.1 million, net of working capital adjustments. During the first quarter of 2016, the Company finalized the working capital adjustments with the sellers of Lincoln Laser and received a payment of $0.4 million. |
Discontinued Operations and Div
Discontinued Operations and Divestitures | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations and Divestitures | 3. Discontinued Operations and Divestitures In April 2015, the Company completed the sale of certain assets and liabilities of its JK Lasers business, previously included in the Photonics (formerly known as “Laser Products”) reportable segment, for approximately $29.6 million in cash, net of final working capital adjustments and transaction costs. The Company recognized a pre-tax gain on sale of $19.6 million in the consolidated statement of operations for the nine months ended October 2, 2015 under the caption “other income (expense), net.” The JK Lasers business divestiture did not qualify for discontinued operations accounting treatment. In July 2014, the Company completed the sale of certain assets and liabilities of its Scientific Lasers business for approximately $6.5 million in cash, net of working capital adjustments. In accordance with the purchase and sale agreement, $1.5 million of the sales proceeds was held in escrow until January 2016. The Company reported the $1.5 million escrow in other current assets on the balance sheet as of December 31, 2015. In January 2016, the $1.5 million escrow was released to the Company in full and is reported as cash flow from investing activities of discontinued operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 4. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) were as follows (in thousands): Total accumulated other Foreign currency comprehensive translation Pension income (loss) adjustments liability Balance at December 31, 2015 $ (18,830 ) $ (9,698 ) $ (9,132 ) Other comprehensive income (loss) (2,352 ) (3,413 ) 1,061 Amounts reclassified from other comprehensive income (loss) (1) 572 — 572 Balance at September 30, 2016 $ (20,610 ) $ (13,111 ) $ (7,499 ) (1) The amounts reclassified from other comprehensive income (loss) were included in selling, general and administrative expenses in the consolidated statements of operations. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 5. Earnings per Share Basic earnings per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. For diluted earnings per common share, the denominator also includes the dilutive effect of outstanding restricted stock units and stock options determined using the treasury stock method. Dilutive effects of contingently issuable shares are included in the weighted average dilutive share calculation when the contingencies have been resolved. For periods in which net losses are generated, the dilutive potential common shares are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Nine Months Ended September 30, October 2, September 30, October 2, 2016 2015 2016 2015 Numerators: Income from continuing operations $ 7,470 $ 6,568 $ 14,247 $ 29,525 Loss from discontinued operations — — — (13 ) Consolidated net income $ 7,470 $ 6,568 $ 14,247 $ 29,512 Denominators: Weighted average common shares outstanding— basic 34,677 34,599 34,689 34,578 Dilutive potential common shares 251 456 200 449 Weighted average common shares outstanding— diluted 34,928 35,055 34,889 35,027 Antidilutive common shares excluded from above 144 — 112 — Basic Earnings (Loss) per Common Share: From continuing operations $ 0.22 $ 0.19 $ 0.41 $ 0.85 From discontinued operations $ — $ — $ — $ (0.00 ) Basic earnings per share $ 0.22 $ 0.19 $ 0.41 $ 0.85 Diluted Earnings (Loss) per Common Share: From continuing operations $ 0.21 $ 0.19 $ 0.41 $ 0.84 From discontinued operations $ — $ — $ — $ (0.00 ) Diluted earnings per share $ 0.21 $ 0.19 $ 0.41 $ 0.84 Common Stock Repurchases In October 2013, the Company’s Board of Directors authorized a share repurchase plan under which the Company may repurchase outstanding shares of the Company’s common stock up to an aggregate amount of $10.0 million. The shares may be repurchased from time to time, at the Company’s discretion, based on ongoing assessment of the capital needs of the business, the market price of the Company’s common stock, and general market conditions. Shares may also be repurchased through an accelerated stock purchase agreement, on the open market or in privately negotiated transactions in accordance with applicable federal securities laws. Repurchases may be made under certain SEC regulations, which would permit common stock to be purchased when the Company would otherwise be prohibited from doing so under insider trading laws. The share repurchase plan does not obligate the Company to acquire any particular amount of common stock. No time limit was set for the completion of the share repurchase program, and the program may be suspended or discontinued at any time. As of December 31, 2015, the Company had repurchased an aggregate of 172 thousand shares for an aggregate purchase price of $2.2 million at an average price of $12.48 per share. During the nine months ended September 30, 2016, the Company repurchased 109 thousand shares in the open market for an aggregate purchase price of $1.6 million at an average price of $14.93 per share. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements ASC 820, “Fair Value Measurements,” establishes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the third is considered unobservable: • Level 1: Quoted prices for identical assets or liabilities in active markets which the Company can access. • Level 2: Observable inputs other than those described in Level 1. • Level 3: Unobservable inputs. The Company’s cash equivalents are investments in money market accounts, which represent the only asset the Company measures at fair value on a recurring basis. The Company determines the fair value of our cash equivalents using a market approach based on quoted prices in active markets. The fair values of cash, accounts receivable, income taxes receivable, accounts payable, income taxes payable and accrued expenses and other current liabilities (excluding contingent considerations) approximate their carrying values because of their short-term nature. Contingent consideration On December 18, 2015, the Company acquired all assets and certain liabilities of Skyetek Inc. (“Skyetek”). Under the purchase and sale agreement for the Skyetek acquisition, the owners of Skyetek are eligible to receive contingent consideration based on the achievement of certain sales order commitment targets from October 2015 through June 2017. The undiscounted range of possible contingent consideration is zero to $0.3 million. If such targets are achieved, the contingent consideration will be payable in 2017. The Company recognized an estimated fair value of $0.2 million as part of the purchase price as of the acquisition date. The estimated fair value of the contingent consideration is reported as an other current liability and a long-term liability in the consolidated balance sheet as of September 30, 2016 and December 31, 2015, respectively. Under the purchase and sale agreement for the Lincoln Laser acquisition, the shareholders of Lincoln Laser are eligible to receive contingent consideration based on the achievement of certain revenue targets for fiscal year 2016. The undiscounted range of contingent consideration is zero to $6.0 million. If such targets are achieved, the contingent consideration will be payable in cash in 2017. The estimated fair value of $2.3 million was determined based on the Monte Carlo valuation method and was recorded as part of the purchase price as of the acquisition date. In June 2016, a $0.3 million increase in the estimated fair value was recorded in the consolidated statement of operations in restructuring, acquisition and divestiture related costs. The estimated fair value of $2.6 million for the contingent consideration was reported as an other current liability in the consolidated balance sheet as of September 30, 2016. The estimated fair value of $2.3 million for the contingent consideration was reported as a long-term liability in the consolidated balance sheet as of December 31, 2015. On February 19, 2015, the Company acquired Applimotion Inc. (“Applimotion”). The former shareholders of Applimotion are eligible to receive contingent consideration based on the achievement of certain revenue targets for fiscal years 2015 to 2017. The undiscounted range of contingent considerations is zero to $4.0 million. If such targets are achieved, the contingent consideration will be payable in cash in two installments in 2017 and 2018, respectively. The estimated fair value of $1.0 million was determined based on the Monte Carlo valuation method and was recorded as part of the purchase price as of the acquisition date. In December 2015 and June 2016, respectively, the Company recorded a $0.4 million and $1.1 million increase in the estimated fair value in the consolidated statement of operations. These adjustments are included in restructuring, acquisition and divestiture related costs. The estimated fair value of $2.5 million for the contingent consideration was reported as an other current liability and a long-term liability in the consolidated balance sheet as of September 30, 2016 in accordance with the timing of the estimated payments. The estimated fair value of $1.4 million for the contingent consideration was reported as a long-term liability in the consolidated balance sheet as of December 31, 2015. The following table summarizes the fair values of our financial assets and liabilities as of September 30, 2016 (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 $ 3,450 $ 3,450 $ — $ — Liabilities Contingent consideration $ 5,316 $ — $ — $ 5,316 The following table summarizes the fair values of our financial assets and liabilities as of December 31, 2015 (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 $ 4,657 $ 4,657 $ — $ — Liabilities Contingent consideration $ 3,889 $ — $ — $ 3,889 Changes in the fair value of Level 3 contingent consideration during the nine months ended September 30, 2016 were as follows (in thousands): Contingent Consideration Balance at December 31, 2015 $ 3,889 Fair value adjustments (1) 1,427 Balance at September 30, 2016 $ 5,316 (1) In the nine months ended September 30, 2016, the fair value of the contingent considerations in connection with the acquisitions of Lincoln Laser and Applimotion were increased by $0.3 million and $1.1 million, respectively, primarily due to increased actual and projected revenue performance. See Note 9 to Consolidated Financial Statements for a discussion of the estimated fair value of the Company’s outstanding debt. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
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 annually for impairment as of the beginning of the second quarter or more frequently if indicators are present or changes in circumstances suggest that impairment may exist. The Company performed its annual goodwill impairment test at the beginning of the second quarter of 2016 and noted no impairment of goodwill. The implied fair value of all the reporting units exceeded their carrying values by at least 20%. The following table summarizes changes in goodwill during the nine months ended September 30, 2016 (in thousands): Balance at beginning of the period $ 103,456 Net working capital adjustment of Lincoln Laser acquisition (43 ) Goodwill acquired from Reach acquisition 4,924 Balance at end of the period $ 108,337 Goodwill by reportable segment as of September 30, 2016 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 136,278 $ 89,325 $ 33,963 $ 259,566 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 33,817 $ 57,603 $ 16,917 $ 108,337 Goodwill by reportable segment as of December 31, 2015 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 136,321 $ 84,401 $ 33,963 $ 254,685 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 33,860 $ 52,679 $ 16,917 $ 103,456 Intangible Assets Intangible assets as of September 30, 2016 and December 31, 2015, respectively, are summarized as follows (in thousands): September 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and acquired technologies $ 80,981 $ (67,120 ) $ 13,861 $ 82,821 $ (66,297 ) $ 16,524 Customer relationships 69,651 (41,400 ) 28,251 67,168 (36,914 ) 30,254 Customer backlog 622 (379 ) 243 2,644 (2,589 ) 55 Non-compete covenant 2,514 (1,284 ) 1,230 2,514 (882 ) 1,632 Trademarks and trade names 10,774 (6,515 ) 4,259 10,711 (5,934 ) 4,777 Amortizable intangible assets 164,542 (116,698 ) 47,844 165,858 (112,616 ) 53,242 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 177,569 $ (116,698 ) $ 60,871 $ 178,885 $ (112,616 ) $ 66,269 All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining useful life. 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 for patents and acquired technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense is as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Amortization expense – cost of revenue $ 994 $ 1,175 $ 3,163 $ 3,468 Amortization expense – operating expenses 2,066 1,852 6,153 5,593 Total amortization expense $ 3,060 $ 3,027 $ 9,316 $ 9,061 Estimated amortization expense for each of the five succeeding years and thereafter as of September 30, 2016 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2016 (remainder of year) $ 1,000 $ 2,098 $ 3,098 2017 3,640 7,389 11,029 2018 2,126 6,717 8,843 2019 1,819 4,691 6,510 2020 1,552 2,718 4,270 Thereafter 3,724 10,370 14,094 Total $ 13,861 $ 33,983 $ 47,844 |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information | 9 Months Ended |
Sep. 30, 2016 | |
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 30, 2016 December 31, 2015 Raw materials $ 35,201 $ 38,511 Work-in-process 11,573 10,138 Finished goods 10,346 9,266 Demo and consigned inventories 2,494 1,651 Total inventories $ 59,614 $ 59,566 Accrued Expenses and Other Current Liabilities September 30, 2016 December 31, 2015 Accrued compensation and benefits $ 10,781 $ 7,357 Accrued warranty 3,300 3,335 Accrued restructuring 1,852 1,652 Accrued contingent considerations 3,821 — Accrued professional services fees and other 10,320 8,838 Total $ 30,074 $ 21,182 Accrued Warranty Nine Months Ended September 30, 2016 October 2, 2015 Balance at beginning of the period $ 3,335 $ 3,044 Provision charged to cost of revenue 1,050 1,878 Acquisition related warranty accrual — 94 Use of provision (1,060 ) (1,084 ) Divestiture of JK Lasers — (392 ) Foreign currency exchange rate changes (25 ) (11 ) Balance at end of period $ 3,300 $ 3,529 Other Long Term Liabilities September 30, 2016 December 31, 2015 Capital lease obligations $ 8,396 $ 9,173 Accrued pension liabilities 2,332 3,693 Accrued contingent considerations 1,495 3,889 Other 2,258 2,690 Total $ 14,481 $ 19,445 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Debt consisted of the following (in thousands): September 30, 2016 December 31, 2015 Senior Credit Facilities – term loan $ 7,500 $ 7,500 Less: unamortized debt issuance costs (135 ) (115 ) Total current portion of long-term debt $ 7,365 $ 7,385 Senior Credit Facilities – term loan $ 65,625 $ 20,000 Senior Credit Facilities – revolving credit facility 10,000 70,000 Less: unamortized debt issuance costs (3,358 ) (1,574 ) Total long-term debt $ 72,267 $ 88,426 Total Senior Credit Facilities $ 79,632 $ 95,811 Senior Credit Facilities On May 19, 2016, the Company entered into the second amended and restated credit agreement (the “Second Amended and Restated Credit Agreement”) with new and existing lenders for an aggregate credit facility of $300.0 million, consisting of a $75.0 million, 5-year term loan facility due in quarterly installments of $1.9 million beginning in July 2016 and a $225.0 million, 5-year revolving credit facility (collectively, the “Senior Credit Facilities”). The Senior Credit Facilities mature in May 2021. The Second Amended and Restated Credit Agreement amends and restates the amended and restated credit agreement dated December 27, 2012. Quarterly installments due in the next twelve months under the term loan amount to $7.5 million and are classified as a current liability on the consolidated balance sheet. The Company incurred $2.5 million in financing costs related to the Second Amended and Restated Credit Agreement. These costs are presented as a reduction to debt and will be amortized over the term of the Senior Credit Facilities. The Company is required to satisfy certain financial and non-financial covenants under the Second Amended and Restated Credit Agreement. The Company was in compliance with these covenants as of September 30, 2016. 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 the Company and its material United States (“U.S.”) and United Kingdom (“U.K.”) subsidiaries and guaranteed by the Company and its material U.S. and U.K. subsidiaries. The Amended and Restated Credit Agreement also contains customary events of default. Fair Value of Debt As of September 30, 2016 and December 31, 2015, the outstanding balance of the Company’s debt approximated its fair value based on current rates available to the Company for debt of the same maturity. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 10. Share-Based Compensation The table below summarizes share-based compensation expense recorded in income from continuing operations in the consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Selling, general and administrative $ 914 $ 849 $ 3,112 $ 3,165 Research and development and engineering 18 42 82 122 Cost of revenue 56 70 191 207 Restructuring, acquisition and divestiture related costs — — — (321 ) Total share-based compensation expense $ 988 $ 961 $ 3,385 $ 3,173 The expense recorded during each of the nine-month periods ended September 30, 2016 and October 2, 2015, respectively, included $0.5 million related to deferred stock units granted to the members of the Company’s Board of Directors. Restricted Stock Units and Deferred Stock Units The Company’s restricted stock units (“RSUs”) have generally been issued with a three-year or five-year vesting period 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 actual experience. Deferred stock units (“DSUs”) are granted to the members of the Company’s Board of Directors. The compensation expense associated with the DSUs is recognized in full on the respective date of grant, as DSUs are fully vested and non-forfeitable upon grant. The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2016: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2015 619 $ 12.32 Granted 520 $ 14.17 Vested (362 ) $ 12.02 Forfeited (142 ) $ 13.11 Unvested at September 30, 2016 635 $ 13.83 Expected to vest as of September 30, 2016 573 The total fair value of RSUs and DSUs that vested during the nine months ended September 30, 2016 was $4.9 million based on the market price of the underlying stock on the date of vesting. Performance Stock Units On March 30, 2016, the Company granted 46 thousand performance stock units (“PSUs”) to certain members of the executive management team. The performance objective is measured using cumulative Non-GAAP EPS over a three-year performance cycle. The Company recognizes compensation expense for PSUs on a straight-line basis. Compensation expense is determined based on the number of shares that are deemed probable of vesting at the end of the three-year performance cycle. This probability assessment is performed each quarter. The cumulative effect of the changes in the estimated compensation expense will be recognized in the consolidated statement of operations in the period in which such determination is made. The table below summarizes activities relating to PSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2016: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2015 — $ — Granted 46 $ 14.13 Vested — $ — Forfeited (17 ) $ 14.13 Unvested at September 30, 2016 29 $ 14.13 Expected to vest as of September 30, 2016 29 Stock Options On March 30, 2016, the Company granted 193 thousand stock options to certain members of the executive management team to purchase common shares of the Company at a price equal to the closing market price of the Company’s common shares on the date of grant. The stock options vest ratably over a three-year period beginning on the anniversary date of the date of grant and expire on the tenth anniversary of the date of grant. We estimate the fair value of stock options using the Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options include the expected option term, the expected volatility of our common stock over the expected term of the options, the risk-free interest rate, and our expected dividend yield. The Company recognizes the compensation expense of stock options on a straight-line basis in the consolidated statement of operations over the vesting period. The table below summarizes activities relating to stock options issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2016: Shares (In thousands) Weighted Average Exercise Price Outstanding as of December 31, 2015 — $ — Granted 193 $ 14.13 Exercised — $ — Forfeited or expired (77 ) $ 14.13 Outstanding as of September 30, 2016 116 $ 14.13 Exercisable as of September 30, 2016 13 $ 14.13 Expected to vest as of September 30, 2016 103 The fair value of stock options granted during the nine months ended September 30, 2016 was estimated as of the grant date using the Black-Scholes valuation model with the following assumptions: Nine Months Ended September 30, 2016 Expected option term in years (1) 6.0 Expected volatility (2) 33.8 % Risk-free interest rate (3) 1.6 % Expected annual dividend yield (4) — (1) The expected option term was calculated using the simplified method provided by Codification of Staff Accounting Bulletin Topic 14: “Share-Based Payment”. (2) The expected volatility was determined based on the historical volatility of the Company’s common stock over the expected option term. (3) Risk-free interest rate was based upon treasury instrument whose term was one year longer than the expected option term. (4) The expected annual dividend yield is zero, as the Company does not have plans to issue dividends. The aggregate Black-Scholes fair value of the stock options granted during the nine months ended September 30, 2016 was $1.0 million. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company determines its estimated annual effective tax rate at the end of each interim period based on full-year forecasted income from continuing operations before income taxes and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date income from continuing operations before income taxes at the end of each interim period. 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 28.5% in the determination of the estimated annual effective tax rate. Effective April 1, 2016, the Canadian statutory tax rate increased from 27.0% to 29.0%, yielding a blended statutory rate of 28.5% for the full year. The Company’s effective tax rate on income from continuing operations of 31.1% for the three months ended September 30, 2016 differs from the Canadian statutory rate of 28.5% primarily due to the mix of income earned in jurisdictions with varying tax rates and losses in jurisdictions with a full valuation allowance. The Company’s effective tax rate on income from continuing operations of 30.3% for the nine months ended September 30, 2016 differs from the Canadian statutory rate of 28.5% primarily due to the mix of income earned in jurisdictions with varying tax rates, losses in jurisdictions with a full valuation allowance, the Laser Quantum dividend distribution and the impact of other discrete items for the period. The Company received a tax free cash dividend of $2.3 million from Laser Quantum in March 2016, which had a 1.9% favorable impact on our effective tax rate for the nine months ended September 30, 2016. The Company’s effective tax rates on income from continuing operations of 27.2% and 26.3%, respectively, for the three and nine month periods ended October 2, 2015 differ from the Canadian statutory rate of 27.0% due to the gain from JK Lasers divestiture, the audit settlement with the U.S. Internal Revenue Service (the “IRS”), mix of income earned in jurisdictions with varying tax rates, losses in jurisdictions with a full valuation allowance, and the impact of discrete items for the periods. The Company maintains a valuation allowance on some of its deferred tax assets in certain jurisdictions. 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. |
Restructuring, Acquisition and
Restructuring, Acquisition and Divestiture Related Costs | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Acquisition and Divestiture Related Costs | 12. Restructuring, Acquisition and Divestiture Related Costs The following table summarizes restructuring, acquisition and divestiture related costs in the accompanying consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 2016 restructuring $ (1,621 ) $ 751 $ 2,955 $ 751 2015 restructuring — — — 1,484 2011 restructuring — 300 108 953 Total restructuring charges (1,621 ) 1,051 3,063 3,188 Acquisition and related charges 786 282 2,765 (66 ) Divestiture related charges — 46 — 1,110 Total acquisition and divestiture related charges 786 328 2,765 1,044 Total restructuring, acquisition and divestiture related costs (gain) $ (835 ) $ 1,379 $ 5,828 $ 4,232 2016 Restructuring During the third quarter of 2015, the Company initiated the 2016 restructuring program, which includes consolidating certain of our manufacturing operations to optimize our facility footprint and better utilize resources, costs associated with discontinuing our radiology product line and reducing redundant costs due to productivity cost savings and business volume reductions. We substantially completed the 2016 restructuring program during the second quarter of 2016. In August 2016, the Company sold our facility in Chatsworth, California for a net cash consideration of $3.4 million and recognized a gain on sale of $1.6 million as part of restructuring, acquisition and divestiture related costs. As of September 30, 2016, the Company incurred cumulative costs related to this restructuring plan totaling $6.1 million, net of the gain on sale of the Chatsworth, California facility. The Company expects to incur additional restructuring charges of $0.3 million to $0.4 million related to the 2016 restructuring plan. The following table summarizes restructuring costs for each segment and unallocated corporate and shared services related to the 2016 restructuring plan (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Photonics $ 45 $ 30 $ 813 $ 30 Vision (1,728 ) 361 1,730 361 Precision Motion — 125 106 125 Unallocated Corporate and Shared Services 62 235 306 235 Total $ (1,621 ) $ 751 $ 2,955 $ 751 2015 Restructuring During the first quarter of 2015, the Company initiated a program to eliminate redundant costs, as a result of acquisition and divestiture activities, to better align our operations to our strategic growth plans, to further integrate our business lines, and as a consequence of our productivity initiatives. During the nine months ended October 2, 2015, the Company incurred restructuring costs of $1.5 million related to the 2015 restructuring plan. Restructuring costs incurred during the nine months ended October 2, 2015 were $0.6 million, $0.5 million, $0.1 million and $0.3 million related to the Photonics, Vision, Precision Motion, and Unallocated Corporate and Shared Services reportable segments, respectively. 2011 Restructuring In November 2011, the Company announced a strategic initiative (“2011 restructuring”), which aimed to consolidate operations to reduce the Company’s cost structure and improve operational efficiency. As part of this initiative, the Company eliminated facilities through the consolidation of certain manufacturing, sales and distribution facilities and the exit of Semiconductor and Laser Systems businesses. The Company substantially completed the 2011 restructuring program by the end of 2013. In March 2016, the Company sold our previously exited facility located in Orlando, Florida for cash at the net carrying value of $3.5 million. Restructuring costs for the three and nine months ended September 30, 2016 included facility costs related to the Orlando, Florida facility. These costs were recorded in the Unallocated Corporate and Shared Services reportable segment. 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 Severance Facility Depreciation Other Balance at December 31, 2015 $ 1,882 $ 1,358 $ 406 $ — $ 118 Restructuring charges (a) 4,700 2,372 949 616 763 Cash payments (3,646 ) (2,635 ) (154 ) — (857 ) Non-cash write-offs and other adjustments (632 ) (45 ) 24 (616 ) 5 Balance at September 30, 2016 $ 2,304 $ 1,050 $ 1,225 $ — $ 29 (a) Excludes $1.6 million of gain on sale of the Chatsworth, California facility. Acquisition and Related Charges Acquisition related costs incurred to effect a business combination, including finders’ fees, legal, valuation and other professional or consulting fees, totaled $0.3 million and $0.8 million for the three and nine months ended September 30, 2016, respectively. Acquisition related costs recognized under earn-out agreements in connection with acquisitions totaled $0.5 million and $2.0 million during the three and nine months ended September 30, 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Leases The Company leases certain equipment and facilities under operating and capital lease agreements. There have been no material changes to the Company’s leases through September 30, 2016 from those discussed in Note 15 to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Purchase Commitments There have been no material changes to the Company’s purchase commitments since December 31, 2015. Legal Contingencies The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. The Company does not believe that the outcome of these claims will have a material adverse effect upon its consolidated financial statements but there can be no assurance that any such claims, or any similar claims, would not have a material adverse effect upon its 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 he or she is 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 our officers and directors are also a party to indemnification agreements with the Company. These indemnification agreements provide, among other things, that the director and 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 officer or director in connection with any proceeding by reason of his or her relationship with the Company. In addition, the indemnification agreements provide for the advancement of expenses incurred by such director or officer in connection with any proceeding covered by the indemnification agreement, subject to the conditions set forth therein and to the extent such advancement is not prohibited by law. The indemnification agreements also set out the procedures for determining entitlement to indemnification, the requirements relating to notice and defense of claims for which indemnification is sought, the procedures for enforcement of indemnification rights, the limitations on and exclusions from indemnification, and the minimum levels of directors’ and officers’ liability insurance to be maintained by the Company. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 14. Segment Information 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. We operate in three reportable segments: Photonics (formerly known as Laser Products), Vision (formerly known as Vision Technologies), and Precision Motion. The reportable segments and their principal activities consist of the following: Photonics The Photonics segment designs, manufactures and markets photonics-based solutions, including CO2 laser sources, laser scanning and beam delivery products, to customers worldwide. The segment serves highly demanding photonics-based applications such as industrial material processing, metrology, medical and life science imaging, and medical laser procedures. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Vision The Vision segment designs, manufactures and markets a range of medical grade technologies, including visualization solutions, imaging informatics products, optical data collection and machine vision technologies, RFID technologies, thermal printers, light and color measurement instrumentation, and embedded touch screen solutions, to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Precision Motion The Precision Motion segment designs, manufactures and markets optical encoders, precision motor and motion control technology, air bearing spindles and precision machined components to customers worldwide. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Reportable Segment Financial Information Revenue, gross profit, gross profit margin, operating income (loss) from continuing operations, and depreciation and amortization by reportable segments are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Revenue Photonics $ 43,425 $ 41,330 $ 129,907 $ 128,475 Vision 31,601 30,992 88,768 93,319 Precision Motion 22,803 19,949 67,204 61,585 Total $ 97,829 $ 92,271 $ 285,879 $ 283,379 Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Gross Profit Photonics $ 18,603 $ 18,851 $ 57,461 $ 57,176 Vision 12,343 12,152 32,446 36,823 Precision Motion 10,592 9,233 30,757 28,309 Unallocated Corporate and Shared Services (326 ) (326 ) (1,064 ) (1,047 ) Total $ 41,212 $ 39,910 $ 119,600 $ 121,261 Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Gross Profit Margin Photonics 42.8 % 45.6 % 44.2 % 44.5 % Vision 39.1 % 39.2 % 36.6 % 39.5 % Precision Motion 46.5 % 46.3 % 45.8 % 46.0 % Total 42.1 % 43.3 % 41.8 % 42.8 % Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Operating Income (Loss) from Continuing Operations Photonics $ 8,185 $ 10,145 $ 24,704 $ 28,586 Vision 2,307 (388 ) (4,164 ) (1,056 ) Precision Motion 6,195 4,417 16,608 14,357 Unallocated Corporate and Shared Services (5,639 ) (5,167 ) (15,915 ) (17,168 ) Total $ 11,048 $ 9,007 $ 21,233 $ 24,719 Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Depreciation and Amortization Photonics $ 1,820 $ 1,394 $ 5,123 $ 4,373 Vision 2,460 2,109 7,861 6,449 Precision Motion 603 680 1,845 1,842 Unallocated Corporate and Shared Services 281 520 1,104 1,424 Total $ 5,164 $ 4,703 $ 15,933 $ 14,088 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
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 date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its estimates based on historical experience, current conditions and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed on an on-going basis and the effects of revisions are reflected in the period in which they are deemed to be necessary. Actual results could differ significantly from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides further clarification on eight cash flow classification issues. The standard further clarifies the classification of the following: (i) debt prepayment or debt extinguishment costs; (ii) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (iii) contingent consideration payments made after a business combination; (iv) proceeds from the settlement of insurance claims; (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (vi) distributions received from equity method investees; (vii) beneficial interests in securitization transactions; and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. ASU 2016-15 should be applied using a retrospective transition method for each period presented. The Company is currently evaluating the impact of the new standard on our consolidated financial statements. Share-Based Compensation In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the accounting for employee share-based payment transactions to require recognition of the income tax effects resulting from the settlement of stock-based awards as income tax provision or benefit in the income statement in the reporting period in which they occur. In addition, ASU 2016-09 requires that all tax-related cash flows resulting from share-based payments, including the excess tax benefits related to the settlement of stock-based awards, be classified as cash flows from operating activities in the statement of cash flows. ASU 2016-09 also requires that cash paid through directly withholding shares for tax-withholding purposes be classified as a financing activity in the statement of cash flows. In addition, ASU 2016-09 allows companies to make an accounting policy election to either estimate the number of awards that are expected to vest, consistent with existing U.S. GAAP, or account for forfeitures when they occur. The new standard is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2016-09 during the second quarter of 2016, which required no retrospective adjustments to the consolidated financial statements. The adoption of ASU 2016-09 had an impact of less than $0.1 million on income from continuing operation on the Company’s consolidated statements of operations for the three months ended July 1, 2016. The adoption of ASU 2016-09 had no impact on the prior year consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which provides comprehensive lease accounting guidance. The standard requires entities to recognize lease assets and liabilities on the balance sheet and to disclose key information about leasing arrangements. ASU 2016-02 will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the new standard on our consolidated financial statements. Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40),” which requires management to assess a company’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. ASU 2014-15 will be effective for annual reporting periods ending after December 15, 2016. Early application is permitted. The Company does not expect the adoption of ASU 2014-15 to have an impact on our consolidated financial statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which provides guidance for revenue recognition. ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition,” and requires entities to recognize revenue in a way that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for annual and interim reporting periods beginning after December 15, 2016. Early adoption is not permitted. Upon adoption, an entity may apply the new guidance either retrospectively to each prior reporting period presented or retrospectively only to customer contracts not yet completed as of the date of adoption with the cumulative effect of initially applying the standard recognized in beginning retained earnings at the date of the initial application. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date,” which defers the effective date of ASU 2014-09 by one year, with the option of early adoption as of the original effective date. The amendment in ASU 2015-14 will result in ASU 2014-09 being effective for annual and interim reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of the new standard on our consolidated financial statements and plans to adopt the standard beginning in the first quarter of 2018. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation | Based upon a preliminary valuation, the total purchase price was allocated as follows (in thousands): Purchase Allocation Cash $ 238 Accounts receivable 991 Inventories 1,611 Prepaid expenses and other current assets 12 Intangible assets 3,953 Goodwill 4,924 Total assets acquired 11,729 Accounts payable 280 Other liabilities 148 Deferred tax liabilities 1,504 Total liabilities assumed 1,932 Total assets acquired, net of liabilities assumed 9,797 Less: cash acquired 238 Plus: working capital adjustments (185 ) Total purchase price, net of cash acquired $ 9,374 |
Fair Value of Intangible Assets | The fair value of intangible assets is comprised of the following (dollar amounts in thousands): Weighted Average Estimated Fair Amortization Value Period Customer relationships $ 2,770 15 years Developed technology 500 7 years Trademarks and trade names 258 10 years Backlog 425 1 year Total $ 3,953 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) were as follows (in thousands): Total accumulated other Foreign currency comprehensive translation Pension income (loss) adjustments liability Balance at December 31, 2015 $ (18,830 ) $ (9,698 ) $ (9,132 ) Other comprehensive income (loss) (2,352 ) (3,413 ) 1,061 Amounts reclassified from other comprehensive income (loss) (1) 572 — 572 Balance at September 30, 2016 $ (20,610 ) $ (13,111 ) $ (7,499 ) (1) The amounts reclassified from other comprehensive income (loss) were included in selling, general and administrative expenses in the consolidated statements of operations. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Nine Months Ended September 30, October 2, September 30, October 2, 2016 2015 2016 2015 Numerators: Income from continuing operations $ 7,470 $ 6,568 $ 14,247 $ 29,525 Loss from discontinued operations — — — (13 ) Consolidated net income $ 7,470 $ 6,568 $ 14,247 $ 29,512 Denominators: Weighted average common shares outstanding— basic 34,677 34,599 34,689 34,578 Dilutive potential common shares 251 456 200 449 Weighted average common shares outstanding— diluted 34,928 35,055 34,889 35,027 Antidilutive common shares excluded from above 144 — 112 — Basic Earnings (Loss) per Common Share: From continuing operations $ 0.22 $ 0.19 $ 0.41 $ 0.85 From discontinued operations $ — $ — $ — $ (0.00 ) Basic earnings per share $ 0.22 $ 0.19 $ 0.41 $ 0.85 Diluted Earnings (Loss) per Common Share: From continuing operations $ 0.21 $ 0.19 $ 0.41 $ 0.84 From discontinued operations $ — $ — $ — $ (0.00 ) Diluted earnings per share $ 0.21 $ 0.19 $ 0.41 $ 0.84 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Assets and Liabilities | The following table summarizes the fair values of our financial assets and liabilities as of September 30, 2016 (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 $ 3,450 $ 3,450 $ — $ — Liabilities Contingent consideration $ 5,316 $ — $ — $ 5,316 The following table summarizes the fair values of our financial assets and liabilities as of December 31, 2015 (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 $ 4,657 $ 4,657 $ — $ — Liabilities Contingent consideration $ 3,889 $ — $ — $ 3,889 |
Changes in Fair Value of Level 3 Contingent Consideration | Changes in the fair value of Level 3 contingent consideration during the nine months ended September 30, 2016 were as follows (in thousands): Contingent Consideration Balance at December 31, 2015 $ 3,889 Fair value adjustments (1) 1,427 Balance at September 30, 2016 $ 5,316 (1) In the nine months ended September 30, 2016, the fair value of the contingent considerations in connection with the acquisitions of Lincoln Laser and Applimotion were increased by $0.3 million and $1.1 million, respectively, primarily due to increased actual and projected revenue performance. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | The following table summarizes changes in goodwill during the nine months ended September 30, 2016 (in thousands): Balance at beginning of the period $ 103,456 Net working capital adjustment of Lincoln Laser acquisition (43 ) Goodwill acquired from Reach acquisition 4,924 Balance at end of the period $ 108,337 |
Goodwill by Reportable Segment | Goodwill by reportable segment as of September 30, 2016 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 136,278 $ 89,325 $ 33,963 $ 259,566 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 33,817 $ 57,603 $ 16,917 $ 108,337 Goodwill by reportable segment as of December 31, 2015 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 136,321 $ 84,401 $ 33,963 $ 254,685 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 33,860 $ 52,679 $ 16,917 $ 103,456 |
Intangible Assets | Intangible assets as of September 30, 2016 and December 31, 2015, respectively, are summarized as follows (in thousands): September 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and acquired technologies $ 80,981 $ (67,120 ) $ 13,861 $ 82,821 $ (66,297 ) $ 16,524 Customer relationships 69,651 (41,400 ) 28,251 67,168 (36,914 ) 30,254 Customer backlog 622 (379 ) 243 2,644 (2,589 ) 55 Non-compete covenant 2,514 (1,284 ) 1,230 2,514 (882 ) 1,632 Trademarks and trade names 10,774 (6,515 ) 4,259 10,711 (5,934 ) 4,777 Amortizable intangible assets 164,542 (116,698 ) 47,844 165,858 (112,616 ) 53,242 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 177,569 $ (116,698 ) $ 60,871 $ 178,885 $ (112,616 ) $ 66,269 |
Amortization Expense of Intangible Assets | Amortization expense is as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Amortization expense – cost of revenue $ 994 $ 1,175 $ 3,163 $ 3,468 Amortization expense – operating expenses 2,066 1,852 6,153 5,593 Total amortization expense $ 3,060 $ 3,027 $ 9,316 $ 9,061 |
Estimated Amortization Expense | Estimated amortization expense for each of the five succeeding years and thereafter as of September 30, 2016 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2016 (remainder of year) $ 1,000 $ 2,098 $ 3,098 2017 3,640 7,389 11,029 2018 2,126 6,717 8,843 2019 1,819 4,691 6,510 2020 1,552 2,718 4,270 Thereafter 3,724 10,370 14,094 Total $ 13,861 $ 33,983 $ 47,844 |
Supplementary Balance Sheet I28
Supplementary Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Inventories | Inventories September 30, 2016 December 31, 2015 Raw materials $ 35,201 $ 38,511 Work-in-process 11,573 10,138 Finished goods 10,346 9,266 Demo and consigned inventories 2,494 1,651 Total inventories $ 59,614 $ 59,566 |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities September 30, 2016 December 31, 2015 Accrued compensation and benefits $ 10,781 $ 7,357 Accrued warranty 3,300 3,335 Accrued restructuring 1,852 1,652 Accrued contingent considerations 3,821 — Accrued professional services fees and other 10,320 8,838 Total $ 30,074 $ 21,182 |
Accrued Warranty | Accrued Warranty Nine Months Ended September 30, 2016 October 2, 2015 Balance at beginning of the period $ 3,335 $ 3,044 Provision charged to cost of revenue 1,050 1,878 Acquisition related warranty accrual — 94 Use of provision (1,060 ) (1,084 ) Divestiture of JK Lasers — (392 ) Foreign currency exchange rate changes (25 ) (11 ) Balance at end of period $ 3,300 $ 3,529 |
Summary of Other Long Term Liabilities | Other Long Term Liabilities September 30, 2016 December 31, 2015 Capital lease obligations $ 8,396 $ 9,173 Accrued pension liabilities 2,332 3,693 Accrued contingent considerations 1,495 3,889 Other 2,258 2,690 Total $ 14,481 $ 19,445 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt consisted of the following (in thousands): September 30, 2016 December 31, 2015 Senior Credit Facilities – term loan $ 7,500 $ 7,500 Less: unamortized debt issuance costs (135 ) (115 ) Total current portion of long-term debt $ 7,365 $ 7,385 Senior Credit Facilities – term loan $ 65,625 $ 20,000 Senior Credit Facilities – revolving credit facility 10,000 70,000 Less: unamortized debt issuance costs (3,358 ) (1,574 ) Total long-term debt $ 72,267 $ 88,426 Total Senior Credit Facilities $ 79,632 $ 95,811 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-Based Compensation Expense Recorded In Income from Continuing Operations in Statements of Operations | The table below summarizes share-based compensation expense recorded in income from continuing operations in the consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Selling, general and administrative $ 914 $ 849 $ 3,112 $ 3,165 Research and development and engineering 18 42 82 122 Cost of revenue 56 70 191 207 Restructuring, acquisition and divestiture related costs — — — (321 ) Total share-based compensation expense $ 988 $ 961 $ 3,385 $ 3,173 |
Estimated Fair Value of Stock Options Using the Black-Scholes Valuation Model | The fair value of stock options granted during the nine months ended September 30, 2016 was estimated as of the grant date using the Black-Scholes valuation model with the following assumptions: Nine Months Ended September 30, 2016 Expected option term in years (1) 6.0 Expected volatility (2) 33.8 % Risk-free interest rate (3) 1.6 % Expected annual dividend yield (4) — (1) The expected option term was calculated using the simplified method provided by Codification of Staff Accounting Bulletin Topic 14: “Share-Based Payment”. (2) The expected volatility was determined based on the historical volatility of the Company’s common stock over the expected option term. (3) Risk-free interest rate was based upon treasury instrument whose term was one year longer than the expected option term. (4) The expected annual dividend yield is zero, as the Company does not have plans to issue dividends. |
2010 Incentive Award Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted Stock Issued and Outstanding | The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2016: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2015 619 $ 12.32 Granted 520 $ 14.17 Vested (362 ) $ 12.02 Forfeited (142 ) $ 13.11 Unvested at September 30, 2016 635 $ 13.83 Expected to vest as of September 30, 2016 573 |
Performance Stock Units Issued and Outstanding | The table below summarizes activities relating to PSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2016: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2015 — $ — Granted 46 $ 14.13 Vested — $ — Forfeited (17 ) $ 14.13 Unvested at September 30, 2016 29 $ 14.13 Expected to vest as of September 30, 2016 29 |
Stock Options Issued and Outstanding | The table below summarizes activities relating to stock options issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 30, 2016: Shares (In thousands) Weighted Average Exercise Price Outstanding as of December 31, 2015 — $ — Granted 193 $ 14.13 Exercised — $ — Forfeited or expired (77 ) $ 14.13 Outstanding as of September 30, 2016 116 $ 14.13 Exercisable as of September 30, 2016 13 $ 14.13 Expected to vest as of September 30, 2016 103 |
Restructuring, Acquisition an31
Restructuring, Acquisition and Divestiture Related Costs (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Schedule Of Restructuring And Related Cost | The following table summarizes restructuring, acquisition and divestiture related costs in the accompanying consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 2016 restructuring $ (1,621 ) $ 751 $ 2,955 $ 751 2015 restructuring — — — 1,484 2011 restructuring — 300 108 953 Total restructuring charges (1,621 ) 1,051 3,063 3,188 Acquisition and related charges 786 282 2,765 (66 ) Divestiture related charges — 46 — 1,110 Total acquisition and divestiture related charges 786 328 2,765 1,044 Total restructuring, acquisition and divestiture related costs (gain) $ (835 ) $ 1,379 $ 5,828 $ 4,232 |
Summary of Restructuring Costs for Each Segment and Unallocated Corporate and Shared Services | The following table summarizes restructuring costs for each segment and unallocated corporate and shared services related to the 2016 restructuring plan (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Photonics $ 45 $ 30 $ 813 $ 30 Vision (1,728 ) 361 1,730 361 Precision Motion — 125 106 125 Unallocated Corporate and Shared Services 62 235 306 235 Total $ (1,621 ) $ 751 $ 2,955 $ 751 |
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 Severance Facility Depreciation Other Balance at December 31, 2015 $ 1,882 $ 1,358 $ 406 $ — $ 118 Restructuring charges (a) 4,700 2,372 949 616 763 Cash payments (3,646 ) (2,635 ) (154 ) — (857 ) Non-cash write-offs and other adjustments (632 ) (45 ) 24 (616 ) 5 Balance at September 30, 2016 $ 2,304 $ 1,050 $ 1,225 $ — $ 29 (a) Excludes $1.6 million of gain on sale of the Chatsworth, California facility. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Revenue, Gross Profit, Gross Profit Margin, Operating Income (Loss) from Continuing Operations, and Depreciation and Amortization by Reportable Segments | Revenue, gross profit, gross profit margin, operating income (loss) from continuing operations, and depreciation and amortization by reportable segments are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Revenue Photonics $ 43,425 $ 41,330 $ 129,907 $ 128,475 Vision 31,601 30,992 88,768 93,319 Precision Motion 22,803 19,949 67,204 61,585 Total $ 97,829 $ 92,271 $ 285,879 $ 283,379 Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Gross Profit Photonics $ 18,603 $ 18,851 $ 57,461 $ 57,176 Vision 12,343 12,152 32,446 36,823 Precision Motion 10,592 9,233 30,757 28,309 Unallocated Corporate and Shared Services (326 ) (326 ) (1,064 ) (1,047 ) Total $ 41,212 $ 39,910 $ 119,600 $ 121,261 Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Gross Profit Margin Photonics 42.8 % 45.6 % 44.2 % 44.5 % Vision 39.1 % 39.2 % 36.6 % 39.5 % Precision Motion 46.5 % 46.3 % 45.8 % 46.0 % Total 42.1 % 43.3 % 41.8 % 42.8 % Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Operating Income (Loss) from Continuing Operations Photonics $ 8,185 $ 10,145 $ 24,704 $ 28,586 Vision 2,307 (388 ) (4,164 ) (1,056 ) Precision Motion 6,195 4,417 16,608 14,357 Unallocated Corporate and Shared Services (5,639 ) (5,167 ) (15,915 ) (17,168 ) Total $ 11,048 $ 9,007 $ 21,233 $ 24,719 Three Months Ended Nine Months Ended September 30, 2016 October 2, 2015 September 30, 2016 October 2, 2015 Depreciation and Amortization Photonics $ 1,820 $ 1,394 $ 5,123 $ 4,373 Vision 2,460 2,109 7,861 6,449 Precision Motion 603 680 1,845 1,842 Unallocated Corporate and Shared Services 281 520 1,104 1,424 Total $ 5,164 $ 4,703 $ 15,933 $ 14,088 |
Basis of Presentation - Additio
Basis of Presentation - Additional information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 01, 2016 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | ||
Equity method investment ownership percentage on Laser Quantum | 41.00% | |
Accounting standards update effect of change on operating results | $ 0.1 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | May 24, 2016 | Nov. 09, 2015 | Sep. 30, 2016 | Apr. 01, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 108,337,000 | $ 108,337,000 | $ 103,456,000 | |||
Earn-out Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Recognized acquisition costs | 500,000 | $ 2,000,000 | ||||
Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Estimated fair value measurement period from acquisition date | 1 year | |||||
Reach Technology Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Membership interests acquired | 100.00% | |||||
Total purchase price | $ 9,400,000 | |||||
Recognized acquisition costs | $ 200,000 | |||||
Business combination estimated additional cash payment | $ 200,000 | 200,000 | ||||
Goodwill | 4,924,000 | |||||
Intangible assets | 3,953,000 | |||||
Goodwill and intangible assets expected to be deductible for tax purposes | 0 | |||||
Revenues | 3,200,000 | |||||
Income (loss) from continuing operations before income taxes | (400,000) | |||||
Working capital adjustments | $ 185,000 | |||||
Reach Technology Inc. | Earn-out Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Recognized acquisition costs | $ 600,000 | |||||
Lincoln Laser Company | ||||||
Business Acquisition [Line Items] | ||||||
Total purchase price | $ 12,100,000 | |||||
Working capital adjustments | $ 400,000 |
Summary of Fair Values of Asset
Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation (Details) - USD ($) $ in Thousands | May 24, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 108,337 | $ 103,456 | |
Reach Technology Inc. | |||
Business Acquisition [Line Items] | |||
Cash | $ 238 | ||
Accounts receivable | 991 | ||
Inventories | 1,611 | ||
Prepaid expenses and other current assets | 12 | ||
Intangible assets | 3,953 | ||
Goodwill | 4,924 | ||
Total assets acquired | 11,729 | ||
Accounts payable | 280 | ||
Other liabilities | 148 | ||
Deferred tax liabilities | 1,504 | ||
Total liabilities assumed | 1,932 | ||
Total assets acquired, net of liabilities assumed | 9,797 | ||
Less: cash acquired | 238 | ||
Plus: working capital adjustments | (185) | ||
Total purchase price, net of cash acquired | $ 9,374 |
Fair Value of Intangible Assets
Fair Value of Intangible Assets (Details) - Reach Technology Inc. $ in Thousands | May 24, 2016USD ($) |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 3,953 |
Customer Relationships | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 2,770 |
Amortization Period of intangible assets | 15 years |
Developed Technology | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 500 |
Amortization Period of intangible assets | 7 years |
Trademarks and Trade Names | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 258 |
Amortization Period of intangible assets | 10 years |
Backlog | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 425 |
Amortization Period of intangible assets | 1 year |
Discontinued Operations and D37
Discontinued Operations and Divestitures - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Apr. 30, 2015 | Jul. 31, 2014 | Sep. 30, 2016 | Oct. 02, 2015 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of business, net of transaction costs | $ 29,570 | |||
JK Lasers Business | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of business, net of transaction costs | $ 29,600 | |||
Pre-tax gain (loss) on sale of business | $ 19,600 | |||
Scientific Lasers Business | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of business, net of transaction costs | $ 6,500 | |||
Sale proceeds held in escrow | $ 1,500 | |||
Sale proceeds held in escrow, period | 2016-01 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ (18,830) | |
Other comprehensive income (loss) | (2,352) | |
Amounts reclassified from other comprehensive income (loss) | 572 | [1] |
Ending Balance | (20,610) | |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (9,698) | |
Other comprehensive income (loss) | (3,413) | |
Ending Balance | (13,111) | |
Pension liability | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (9,132) | |
Other comprehensive income (loss) | 1,061 | |
Amounts reclassified from other comprehensive income (loss) | 572 | [1] |
Ending Balance | $ (7,499) | |
[1] | The amounts reclassified from other comprehensive income (loss) were included in selling, general and administrative expenses in the consolidated statements of operations. |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Numerators: | ||||
Income from continuing operations | $ 7,470 | $ 6,568 | $ 14,247 | $ 29,525 |
Loss from discontinued operations | (13) | |||
Consolidated net income | $ 7,470 | $ 6,568 | $ 14,247 | $ 29,512 |
Denominators: | ||||
Weighted average common shares outstanding—basic | 34,677 | 34,599 | 34,689 | 34,578 |
Dilutive potential common shares | 251 | 456 | 200 | 449 |
Weighted average common shares outstanding— diluted | 34,928 | 35,055 | 34,889 | 35,027 |
Antidilutive common shares excluded from above | 144 | 112 | ||
Basic Earnings (Loss) per Common Share: | ||||
From continuing operations | $ 0.22 | $ 0.19 | $ 0.41 | $ 0.85 |
From discontinued operations | 0 | |||
Basic earnings per share | 0.22 | 0.19 | 0.41 | 0.85 |
Diluted Earnings (Loss) per Common Share: | ||||
From continuing operations | 0.21 | 0.19 | 0.41 | 0.84 |
From discontinued operations | 0 | |||
Diluted earnings per share | $ 0.21 | $ 0.19 | $ 0.41 | $ 0.84 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands | 9 Months Ended | 27 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Dec. 31, 2015 | Oct. 31, 2013 | |
Computation Of Earnings Per Share Line Items | ||||
Repurchase of common stock | $ 1,634,000 | $ 997,000 | ||
Common Stock Repurchase Plan | ||||
Computation Of Earnings Per Share Line Items | ||||
Shares repurchased | 109 | 172 | ||
Repurchase of common stock | $ 1,600,000 | $ 2,200,000 | ||
Shares repurchased, average cost per share | $ 14.93 | $ 12.48 | ||
Maximum | ||||
Computation Of Earnings Per Share Line Items | ||||
Outstanding common stock repurchase program authorized amount | $ 10,000,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($)Installment | Dec. 18, 2015USD ($) | Nov. 09, 2015USD ($) | Feb. 19, 2015USD ($) | |
Business Acquisition Contingent Consideration [Line Items] | ||||||
Contingent consideration adjustment | $ 1,427 | |||||
Skyetek Inc. | ||||||
Business Acquisition Contingent Consideration [Line Items] | ||||||
Estimated fair value of contingent consideration | $ 200 | 200 | ||||
Undiscounted range of contingent consideration, minimum | $ 0 | |||||
Undiscounted range of contingent consideration, maximum | $ 300 | |||||
Lincoln Laser Company | ||||||
Business Acquisition Contingent Consideration [Line Items] | ||||||
Estimated fair value of contingent consideration | 2,300 | 2,600 | ||||
Undiscounted range of contingent consideration, minimum | $ 0 | |||||
Undiscounted range of contingent consideration, maximum | $ 6,000 | |||||
Contingent consideration adjustment | $ 300 | 300 | ||||
Applimotion Inc. | ||||||
Business Acquisition Contingent Consideration [Line Items] | ||||||
Estimated fair value of contingent consideration | 1,400 | 2,500 | $ 1,000 | |||
Undiscounted range of contingent consideration, minimum | 0 | |||||
Undiscounted range of contingent consideration, maximum | $ 4,000 | |||||
Contingent consideration adjustment | $ 1,100 | $ 400 | $ 1,100 | |||
Business combination, date of agreement | Feb. 19, 2015 | |||||
Number of contingent consideration installments | Installment | 2 |
Fair Values of Financial Assets
Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash equivalents | $ 3,450 | $ 4,657 |
Liabilities | ||
Contingent consideration | 5,316 | 3,889 |
Fair Value, Inputs, Level 1 | ||
Assets | ||
Cash equivalents | 3,450 | 4,657 |
Fair Value, Inputs, Level 3 | ||
Liabilities | ||
Contingent consideration | $ 5,316 | $ 3,889 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Details) - Fair Value, Inputs, Level 3 $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($) | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance at December 31, 2015 | $ 3,889 | |
Fair value adjustments | 1,427 | [1] |
Balance at September 30, 2016 | $ 5,316 | |
[1] | In the nine months ended September 30, 2016, the fair value of the contingent considerations in connection with the acquisitions of Lincoln Laser and Applimotion were increased by $0.3 million and $1.1 million, respectively, primarily due to increased actual and projected revenue performance. |
Fair Value Measurements - Sum44
Fair Value Measurements - Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Contingent consideration adjustment | $ 1,427 | ||
Lincoln Laser Company | |||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Contingent consideration adjustment | $ 300 | 300 | |
Applimotion Inc. | |||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Contingent consideration adjustment | $ 1,100 | $ 400 | $ 1,100 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Additional Information (Details) | 3 Months Ended |
Jul. 01, 2016USD ($) | |
Goodwill [Line Items] | |
Impairment of goodwill and intangible assets | $ 0 |
Minimum | |
Goodwill [Line Items] | |
Reporting units in excess of carrying value | 20.00% |
Summary of Changes in Goodwill
Summary of Changes in Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Line Items] | |
Balance at beginning of the period | $ 103,456 |
Balance at end of the period | 108,337 |
Lincoln Laser Company | |
Goodwill [Line Items] | |
Net working capital adjustment of Lincoln Laser acquisition | (43) |
Reach Technology Inc. | |
Goodwill [Line Items] | |
Goodwill acquired from Reach acquisition | $ 4,924 |
Goodwill By Reportable Segment
Goodwill By Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | ||
Goodwill | $ 259,566 | $ 254,685 |
Accumulated impairment of goodwill | (151,229) | (151,229) |
Total | 108,337 | 103,456 |
Photonics | ||
Goodwill [Line Items] | ||
Goodwill | 136,278 | 136,321 |
Accumulated impairment of goodwill | (102,461) | (102,461) |
Total | 33,817 | 33,860 |
Vision | ||
Goodwill [Line Items] | ||
Goodwill | 89,325 | 84,401 |
Accumulated impairment of goodwill | (31,722) | (31,722) |
Total | 57,603 | 52,679 |
Precision Motion | ||
Goodwill [Line Items] | ||
Goodwill | 33,963 | 33,963 |
Accumulated impairment of goodwill | (17,046) | (17,046) |
Total | $ 16,917 | $ 16,917 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | $ 164,542 | $ 165,858 |
Amortizable intangible assets, accumulated amortization | (116,698) | (112,616) |
Amortizable intangible assets, net carrying amount | 47,844 | 53,242 |
Non-amortizable intangible assets | 13,027 | 13,027 |
Gross carrying amount | 177,569 | 178,885 |
Net carrying amount | 60,871 | 66,269 |
Patents and Acquired Technologies | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | 80,981 | 82,821 |
Amortizable intangible assets, accumulated amortization | (67,120) | (66,297) |
Amortizable intangible assets, net carrying amount | 13,861 | 16,524 |
Customer Relationships | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | 69,651 | 67,168 |
Amortizable intangible assets, accumulated amortization | (41,400) | (36,914) |
Amortizable intangible assets, net carrying amount | 28,251 | 30,254 |
Customer Backlog | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | 622 | 2,644 |
Amortizable intangible assets, accumulated amortization | (379) | (2,589) |
Amortizable intangible assets, net carrying amount | 243 | 55 |
Non-compete Covenant | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | 2,514 | 2,514 |
Amortizable intangible assets, accumulated amortization | (1,284) | (882) |
Amortizable intangible assets, net carrying amount | 1,230 | 1,632 |
Trademarks and Trade Names | ||
Schedule of Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets, gross carrying amount | 10,774 | 10,711 |
Amortizable intangible assets, accumulated amortization | (6,515) | (5,934) |
Amortizable intangible assets, net carrying amount | $ 4,259 | $ 4,777 |
Amortization Expense of Intangi
Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense – cost of revenue | $ 994 | $ 1,175 | $ 3,163 | $ 3,468 |
Amortization expense – operating expenses | 2,066 | 1,852 | 6,153 | 5,593 |
Total amortization expense | $ 3,060 | $ 3,027 | $ 9,316 | $ 9,061 |
Estimated Amortization Expense
Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
2016 (remainder of year) | $ 3,098 | |
2,017 | 11,029 | |
2,018 | 8,843 | |
2,019 | 6,510 | |
2,020 | 4,270 | |
Thereafter | 14,094 | |
Amortizable intangible assets, net carrying amount | 47,844 | $ 53,242 |
Cost of Revenue | ||
Finite-Lived Intangible Assets [Line Items] | ||
2016 (remainder of year) | 1,000 | |
2,017 | 3,640 | |
2,018 | 2,126 | |
2,019 | 1,819 | |
2,020 | 1,552 | |
Thereafter | 3,724 | |
Amortizable intangible assets, net carrying amount | 13,861 | |
Operating Expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
2016 (remainder of year) | 2,098 | |
2,017 | 7,389 | |
2,018 | 6,717 | |
2,019 | 4,691 | |
2,020 | 2,718 | |
Thereafter | 10,370 | |
Amortizable intangible assets, net carrying amount | $ 33,983 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 35,201 | $ 38,511 |
Work-in-process | 11,573 | 10,138 |
Finished goods | 10,346 | 9,266 |
Demo and consigned inventories | 2,494 | 1,651 |
Total inventories | $ 59,614 | $ 59,566 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Oct. 02, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||||
Accrued compensation and benefits | $ 10,781 | $ 7,357 | ||
Accrued warranty | 3,300 | 3,335 | $ 3,529 | $ 3,044 |
Accrued restructuring | 1,852 | 1,652 | ||
Accrued contingent considerations | 3,821 | |||
Accrued professional services fees and other | 10,320 | 8,838 | ||
Total | $ 30,074 | $ 21,182 |
Accrued Warranty (Details)
Accrued Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Product Warranties Disclosures [Abstract] | ||
Balance at beginning of the period | $ 3,335 | $ 3,044 |
Provision charged to cost of revenue | 1,050 | 1,878 |
Acquisition related warranty accrual | 94 | |
Use of provision | (1,060) | (1,084) |
Divestiture of JK Lasers | (392) | |
Foreign currency exchange rate changes | (25) | (11) |
Balance at end of period | $ 3,300 | $ 3,529 |
Summary of Other Long Term Liab
Summary of Other Long Term Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Liabilities Noncurrent [Abstract] | ||
Capital lease obligations | $ 8,396 | $ 9,173 |
Accrued pension liabilities | 2,332 | 3,693 |
Accrued contingent considerations | 1,495 | 3,889 |
Other | 2,258 | 2,690 |
Total | $ 14,481 | $ 19,445 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total current portion of long-term debt | $ 7,365 | $ 7,385 |
Total long-term debt | 72,267 | 88,426 |
Total Senior Credit Facilities | 79,632 | 95,811 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt, Gross | 7,500 | 7,500 |
Long-term debt, Gross | 65,625 | 20,000 |
Term Loan And Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Less: unamortized debt issuance costs | (135) | (115) |
Less: unamortized debt issuance costs | (3,358) | (1,574) |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 10,000 | $ 70,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | May 19, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 300,000 | ||
Debt instrument maturity period | 5 years | ||
Revolving credit facility maturity year | 2021-05 | ||
Debt financing costs | $ 2,496 | ||
Term Loans | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 75,000 | ||
Quarterly installments payable on term loan | 1,900 | ||
Current portion of long-term debt | $ 7,500 | $ 7,500 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 225,000 |
Share-Based Compensation Expens
Share-Based Compensation Expense Recorded In Income from Continuing Operations in Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 988 | $ 961 | $ 3,385 | $ 3,173 |
Selling, general and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 914 | 849 | 3,112 | 3,165 |
Research and development and engineering | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 18 | 42 | 82 | 122 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 56 | $ 70 | $ 191 | 207 |
Restructuring, acquisition and divestiture related costs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense, adjustment | $ (321) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands | Mar. 30, 2016 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expense recognized | $ 988 | $ 961 | $ 3,385 | $ 3,173 | |
Deferred Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expense recognized | 500 | $ 500 | |||
Restricted Stock Units (RSUs) | 2010 Incentive Award Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Total fair value of restricted stock vested | $ 4,900 | ||||
Stock units, Granted | 520 | ||||
Restricted Stock Units (RSUs) | 2010 Incentive Award Plan | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted Stock Units (RSUs) | 2010 Incentive Award Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Performance Stock Units | 2010 Incentive Award Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock units, Granted | 46 | 46 | |||
Vesting performance cycle | 3 years | ||||
Stock Options | 2010 Incentive Award Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Stock options, Granted | 193 | 193 | |||
Stock options, Expiration Period | 10 years | ||||
Fair value of stock options granted | $ 1,000 |
Restricted Stock Units Issued a
Restricted Stock Units Issued and Outstanding (Details) - 2010 Incentive Award Plan - Restricted Stock Units (RSUs) shares in Thousands | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Restricted Stock Units | |
Unvested, Beginning Balance | 619 |
Granted | 520 |
Vested | (362) |
Forfeited | (142) |
Unvested, Ending Balance | 635 |
Expected to vest at end of period | 573 |
Weighted Average Grant Date Fair Value | |
Unvested, Beginning Balance | $ / shares | $ 12.32 |
Granted | $ / shares | 14.17 |
Vested | $ / shares | 12.02 |
Forfeited | $ / shares | 13.11 |
Unvested, Ending Balance | $ / shares | $ 13.83 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Stock Units Issued and Outstanding (Details) - 2010 Incentive Award Plan - Performance Stock Units - $ / shares shares in Thousands | Mar. 30, 2016 | Sep. 30, 2016 |
Performance Stock Units | ||
Granted | 46 | 46 |
Forfeited | (17) | |
Unvested, Ending Balance | 29 | |
Expected to vest at end of period | 29 | |
Weighted Average Grant Date Fair Value | ||
Granted | $ 14.13 | |
Forfeited | 14.13 | |
Unvested, Ending Balance | $ 14.13 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Issued and Outstanding (Details) - 2010 Incentive Award Plan - Stock Options - $ / shares shares in Thousands | Mar. 30, 2016 | Sep. 30, 2016 |
Stock Options | ||
Granted | 193 | 193 |
Forfeited or expired | (77) | |
Outstanding, Ending Balance | 116 | |
Exercisable at end of period | 13 | |
Expected to vest at end of period | 103 | |
Weighted Average Exercise Price | ||
Granted | $ 14.13 | |
Forfeited or expired | 14.13 | |
Outstanding, Ending Balance | $ 14.13 |
Share-Based Compensation - Esti
Share-Based Compensation - Estimated Fair Value of Stock Options Using the Black-Scholes Valuation Model (Details) - Stock Options | 9 Months Ended | |
Sep. 30, 2016 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected option term in years | 6 years | [1] |
Expected volatility | 33.80% | [2] |
Risk-free interest rate | 1.60% | [3] |
Expected annual dividend yield | 0.00% | [4] |
[1] | The expected option term was calculated using the simplified method provided by Codification of Staff Accounting Bulletin Topic 14: “Share-Based Payment”. | |
[2] | The expected volatility was determined based on the historical volatility of the Company’s common stock over the expected option term. | |
[3] | Risk-free interest rate was based upon treasury instrument whose term was one year longer than the expected option term. | |
[4] | The expected annual dividend yield is zero, as the Company does not have plans to issue dividends. |
Share-Based Compensation - Es63
Share-Based Compensation - Estimated Fair Value of Stock Options Using the Black-Scholes Valuation Model (Parenthetical) (Details) | 9 Months Ended | |
Sep. 30, 2016 | ||
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected annual dividend yield | 0.00% | [1] |
[1] | The expected annual dividend yield is zero, as the Company does not have plans to issue dividends. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Apr. 01, 2016 | Mar. 31, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 |
Income Taxes [Line Items] | |||||||
Effective tax rate on income from operations | 31.10% | 27.20% | 30.30% | 26.30% | |||
Tax free cash dividend received | $ 2.3 | ||||||
Favorable impact on effective tax rate, percentage | 1.90% | ||||||
CANADA | |||||||
Income Taxes [Line Items] | |||||||
Statutory tax rate | 29.00% | 27.00% | 28.50% | 27.00% | 28.50% | 27.00% |
Schedule of Restructuring, Acqu
Schedule of Restructuring, Acquisition and Divestiture Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ (1,621) | $ 1,051 | $ 3,063 | $ 3,188 |
Acquisition and related charges | 786 | 282 | 2,765 | (66) |
Divestiture related charges | 46 | 1,110 | ||
Total acquisition and divestiture related charges | 786 | 328 | 2,765 | 1,044 |
Total restructuring, acquisition and divestiture related costs (gain) | (835) | 1,379 | 5,828 | 4,232 |
2016 Restructuring | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ (1,621) | 751 | 2,955 | 751 |
2015 Restructuring | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 1,484 | |||
2011 Restructuring | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 300 | $ 108 | $ 953 |
Restructuring, Acquisition an66
Restructuring, Acquisition and Divestiture Related Costs - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Proceeds from the sale of property, plant and equipment | $ 7,037 | $ 123 | ||||
Gain on sale of facility | 1,736 | 24 | ||||
Restructuring Costs | $ (1,621) | $ 1,051 | 3,063 | 3,188 | ||
Professional Fees | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Acquisition and related charges | 300 | 800 | ||||
Earn-out Agreement | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Acquisition and related charges | 500 | $ 2,000 | ||||
2016 Restructuring | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring plan | During the third quarter of 2015, the Company initiated the 2016 restructuring program, which includes consolidating certain of our manufacturing operations to optimize our facility footprint and better utilize resources, costs associated with discontinuing our radiology product line and reducing redundant costs due to productivity cost savings and business volume reductions. We substantially completed the 2016 restructuring program during the second quarter of 2016. In August 2016, the Company sold our facility in Chatsworth, California for a net cash consideration of $3.4 million and recognized a gain on sale of $1.6 million as part of restructuring, acquisition and divestiture related costs. As of September 30, 2016, the Company incurred cumulative costs related to this restructuring plan totaling $6.1 million, net of the gain on sale of the Chatsworth, California facility. The Company expects to incur additional restructuring charges of $0.3 million to $0.4 million related to the 2016 restructuring plan. | |||||
Restructuring Costs | (1,621) | 751 | $ 2,955 | 751 | ||
2016 Restructuring | Cumulative Restructuring Costs | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | 6,100 | |||||
2016 Restructuring | Minimum | Additional Restructuring Costs | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | 300 | |||||
2016 Restructuring | Maximum | Additional Restructuring Costs | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | 400 | |||||
2016 Restructuring | Chatsworth Facility | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Proceeds from the sale of property, plant and equipment | $ 3,400 | |||||
Gain on sale of facility | $ 1,600 | 1,600 | ||||
2016 Restructuring | Photonics | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | 45 | 30 | 813 | 30 | ||
2016 Restructuring | Vision | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | (1,728) | 361 | 1,730 | 361 | ||
2016 Restructuring | Precision Motion | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | 125 | 106 | 125 | |||
2016 Restructuring | Unallocated Corporate and Shared Services | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | $ 62 | 235 | $ 306 | 235 | ||
2015 Restructuring | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring plan | During the first quarter of 2015, the Company initiated a program to eliminate redundant costs, as a result of acquisition and divestiture activities, to better align our operations to our strategic growth plans, to further integrate our business lines, and as a consequence of our productivity initiatives. During the nine months ended October 2, 2015, the Company incurred restructuring costs of $1.5 million related to the 2015 restructuring plan. Restructuring costs incurred during the nine months ended October 2, 2015 were $0.6 million, $0.5 million, $0.1 million and $0.3 million related to the Photonics, Vision, Precision Motion, and Unallocated Corporate and Shared Services reportable segments, respectively. | |||||
Restructuring Costs | 1,484 | |||||
2015 Restructuring | Photonics | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | 600 | |||||
2015 Restructuring | Vision | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | 500 | |||||
2015 Restructuring | Precision Motion | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | 100 | |||||
2015 Restructuring | Unallocated Corporate and Shared Services | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring Costs | 300 | |||||
2011 Restructuring | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Restructuring plan | In November 2011, the Company announced a strategic initiative (“2011 restructuring”), which aimed to consolidate operations to reduce the Company’s cost structure and improve operational efficiency. As part of this initiative, the Company eliminated facilities through the consolidation of certain manufacturing, sales and distribution facilities and the exit of Semiconductor and Laser Systems businesses. The Company substantially completed the 2011 restructuring program by the end of 2013. In March 2016, the Company sold our previously exited facility located in Orlando, Florida for cash at the net carrying value of $3.5 million. Restructuring costs for the three and nine months ended September 30, 2016 included facility costs related to the Orlando, Florida facility. These costs were recorded in the Unallocated Corporate and Shared Services reportable segment. | |||||
Restructuring Costs | $ 300 | $ 108 | $ 953 | |||
2011 Restructuring | Orlando Facility | ||||||
Restructuring, Acquisition and Divestiture Related Costs [Line Items] | ||||||
Proceeds from the sale of property, plant and equipment | $ 3,500 |
Summary of Restructuring Costs
Summary of Restructuring Costs for Each Segment and Unallocated Corporate and Shared Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ (1,621) | $ 1,051 | $ 3,063 | $ 3,188 |
2016 Restructuring | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | (1,621) | 751 | 2,955 | 751 |
2016 Restructuring | Photonics | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 45 | 30 | 813 | 30 |
2016 Restructuring | Vision | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | (1,728) | 361 | 1,730 | 361 |
2016 Restructuring | Precision Motion | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | 125 | 106 | 125 | |
2016 Restructuring | Unallocated Corporate and Shared Services | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 62 | $ 235 | $ 306 | $ 235 |
Summary of Accrual Activities b
Summary of Accrual Activities by Components Related to Company's Restructuring Charges (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($) | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrued expense beginning balance | $ 1,882 | |
Restructuring charges | 4,700 | [1] |
Cash payments | (3,646) | |
Non-cash write-offs and other adjustments | (632) | |
Accrued expense ending balance | 2,304 | |
Severance | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrued expense beginning balance | 1,358 | |
Restructuring charges | 2,372 | [1] |
Cash payments | (2,635) | |
Non-cash write-offs and other adjustments | (45) | |
Accrued expense ending balance | 1,050 | |
Facility Closing | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrued expense beginning balance | 406 | |
Restructuring charges | 949 | [1] |
Cash payments | (154) | |
Non-cash write-offs and other adjustments | 24 | |
Accrued expense ending balance | 1,225 | |
Depreciation | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring charges | 616 | [1] |
Non-cash write-offs and other adjustments | (616) | |
Other Restructuring Charges | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrued expense beginning balance | 118 | |
Restructuring charges | 763 | [1] |
Cash payments | (857) | |
Non-cash write-offs and other adjustments | 5 | |
Accrued expense ending balance | $ 29 | |
[1] | Excludes $1.6 million of gain on sale of the Chatsworth, California facility. |
Summary of Accrual Activities69
Summary of Accrual Activities by Components Related to Company's Restructuring Charges (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2016 | Sep. 30, 2016 | Oct. 02, 2015 | |
Restructuring Cost And Reserve [Line Items] | |||
Gain on sale of facility | $ 1,736 | $ 24 | |
2016 Restructuring | Chatsworth Facility | |||
Restructuring Cost And Reserve [Line Items] | |||
Gain on sale of facility | $ 1,600 | $ 1,600 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Revenue, Gross Profit, Gross Pr
Revenue, Gross Profit, Gross Profit Margin and Operating Income (Loss) from Continuing Operations by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 97,829 | $ 92,271 | $ 285,879 | $ 283,379 |
Gross Profit | $ 41,212 | $ 39,910 | $ 119,600 | $ 121,261 |
Gross profit margin percentage | 42.10% | 43.30% | 41.80% | 42.80% |
Operating Income (Loss) from Continuing Operations | $ 11,048 | $ 9,007 | $ 21,233 | $ 24,719 |
Photonics | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 43,425 | 41,330 | 129,907 | 128,475 |
Gross Profit | $ 18,603 | $ 18,851 | $ 57,461 | $ 57,176 |
Gross profit margin percentage | 42.80% | 45.60% | 44.20% | 44.50% |
Operating Income (Loss) from Continuing Operations | $ 8,185 | $ 10,145 | $ 24,704 | $ 28,586 |
Vision | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 31,601 | 30,992 | 88,768 | 93,319 |
Gross Profit | $ 12,343 | $ 12,152 | $ 32,446 | $ 36,823 |
Gross profit margin percentage | 39.10% | 39.20% | 36.60% | 39.50% |
Operating Income (Loss) from Continuing Operations | $ 2,307 | $ (388) | $ (4,164) | $ (1,056) |
Precision Motion | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 22,803 | 19,949 | 67,204 | 61,585 |
Gross Profit | $ 10,592 | $ 9,233 | $ 30,757 | $ 28,309 |
Gross profit margin percentage | 46.50% | 46.30% | 45.80% | 46.00% |
Operating Income (Loss) from Continuing Operations | $ 6,195 | $ 4,417 | $ 16,608 | $ 14,357 |
Unallocated Corporate and Shared Services | ||||
Segment Reporting Information [Line Items] | ||||
Gross Profit | (326) | (326) | (1,064) | (1,047) |
Operating Income (Loss) from Continuing Operations | $ (5,639) | $ (5,167) | $ (15,915) | $ (17,168) |
Depreciation and Amortization b
Depreciation and Amortization by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | |
Depreciation and Amortization | ||||
Depreciation and amortization | $ 5,164 | $ 4,703 | $ 15,933 | $ 14,088 |
Photonics | ||||
Depreciation and Amortization | ||||
Depreciation and amortization | 1,820 | 1,394 | 5,123 | 4,373 |
Vision | ||||
Depreciation and Amortization | ||||
Depreciation and amortization | 2,460 | 2,109 | 7,861 | 6,449 |
Precision Motion | ||||
Depreciation and Amortization | ||||
Depreciation and amortization | 603 | 680 | 1,845 | 1,842 |
Unallocated Corporate and Shared Services | ||||
Depreciation and Amortization | ||||
Depreciation and amortization | $ 281 | $ 520 | $ 1,104 | $ 1,424 |