Novanta (NOVT) 10-Q 1 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 29, 2017	Oct. 27, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 29, 2017
Document Fiscal Year Focus	2,017
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		34,592,138

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 92,149	$ 68,108
Accounts receivable, net of allowance of $782 and $565, respectively	83,008	63,769
Inventories	88,861	59,745
Prepaid income taxes and income taxes receivable	8,107	2,058
Prepaid expenses and other current assets	8,253	5,570
Total current assets	280,378	199,250
Property, plant and equipment, net	60,244	35,421
Deferred tax assets	11,772	8,593
Other assets	4,256	12,502
Intangible assets, net	157,938	61,743
Goodwill	207,720	108,128
Total assets	722,308	425,637
Current liabilities
Current portion of long-term debt	9,115	7,366
Accounts payable	39,666	32,213
Income taxes payable	6,086	3,969
Accrued expenses and other current liabilities	40,940	26,948
Total current liabilities	95,807	70,496
Long-term debt	234,188	70,554
Deferred tax liabilities	27,106	1,294
Income taxes payable	4,154	5,710
Other liabilities	15,068	18,713
Total liabilities	376,323	166,767
Commitments and contingencies (Note 13)
Redeemable noncontrolling interest	36,838
Stockholders’ equity:
Common shares, no par value; Authorized shares: unlimited; Issued and outstanding: 34,583 and 34,458, respectively	423,856	423,856
Additional paid-in capital	32,283	30,276
Accumulated deficit	(127,660)	(167,547)
Accumulated other comprehensive loss	(19,332)	(27,715)
Total stockholders' equity	309,147	258,870
Total liabilities, noncontrolling interest and stockholders’ equity	$ 722,308	$ 425,637

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 29, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 782	$ 565
Common shares, Authorized	Unlimited	Unlimited
Common shares, no par value	$ 0	$ 0
Common shares, Issued	34,583	34,458
Common shares, outstanding	34,583	34,458

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue	$ 146,296	$ 97,829	$ 374,372	$ 285,879
Cost of revenue	87,589	56,617	216,082	166,279
Gross profit	58,707	41,212	158,290	119,600
Operating expenses:
Research and development and engineering	11,659	7,961	29,878	24,029
Selling, general and administrative	27,724	20,972	74,666	62,357
Amortization of purchased intangible assets	3,217	2,066	9,413	6,153
Restructuring, acquisition and divestiture related costs (gain)	3,834	(835)	6,232	5,828
Total operating expenses	46,434	30,164	120,189	98,367
Operating income from continuing operations	12,273	11,048	38,101	21,233
Interest income (expense), net	(2,111)	(1,081)	(4,874)	(3,471)
Foreign exchange transaction gains (losses), net	(661)	188	(176)	978
Other income (expense), net	(4)	686	104	1,699
Gain on acquisition of business			26,409
Income from continuing operations before income taxes	9,497	10,841	59,564	20,439
Income tax provision	1,131	3,371	6,934	6,192
Income from continuing operations	8,366	7,470	52,630	14,247
Consolidated net income	8,366	7,470	52,630	14,247
Less: Net income attributable to noncontrolling interest	(834)		(1,444)
Net income attributable to Novanta Inc.	$ 7,532	$ 7,470	$ 51,186	$ 14,247
Earnings (loss) per common share from continuing operations (Note 5):
Basic	$ 0	$ 0.22	$ 1.15	$ 0.41
Diluted	0	0.21	1.13	0.41
Earnings (loss) per common share attributable to Novanta Inc. (Note 5):
Basic	0	0.22	1.15	0.41
Diluted	$ 0	$ 0.21	$ 1.13	$ 0.41
Weighted average common shares outstanding—basic	34,833	34,677	34,809	34,689
Weighted average common shares outstanding—diluted	34,833	34,928	35,235	34,889

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Consolidated net income		$ 8,366	$ 7,470	$ 52,630	$ 14,247
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	[1]	3,311	(563)	8,340	(3,413)
Pension liability adjustments, net of tax	[2]	(45)	338	43	1,633
Total other comprehensive income (loss)		3,266	(225)	8,383	(1,780)
Total consolidated comprehensive income (loss)		11,632	7,245	61,013	12,467
Less: Comprehensive income attributable to noncontrolling interest		(834)		(1,444)
Comprehensive income (loss) attributable to Novanta Inc.		$ 10,798	$ 7,245	$ 59,569	$ 12,467
[1]	The tax effect on this component of comprehensive income was nominal for all periods presented.
[2]	The tax effect on this component of comprehensive income was nominal 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 CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Cash flows from operating activities:
Consolidated net income	$ 52,630	$ 14,247
Income from continuing operations	52,630	14,247
Adjustments to reconcile income from continuing operations to net cash provided by operating activities of continuing operations:
Depreciation and amortization	22,440	15,317
Provision for inventory excess and obsolescence	1,837	2,387
Share-based compensation	4,223	3,385
Deferred income taxes	(2,913)	162
Earnings from equity-method investment	(104)	(1,698)
Gain on sale of fixed assets	21	(1,736)
Dividend from equity-method investment		2,341
Gain on acquisition of business	(26,409)
Inventory acquisition fair value adjustment	4,754	173
Contingent consideration adjustments	425	1,427
Other	851	1,417
Changes in assets and liabilities which (used)/provided cash, excluding effects from businesses purchased or classified as discontinued operations:
Accounts receivable	(3,859)	(3,683)
Inventories	(11,806)	(1,470)
Prepaid income taxes, income taxes receivable, prepaid expenses and other current assets	(5,806)	(3,594)
Accounts payable, income taxes payable, accrued expenses and other current liabilities	5,975	6,110
Other non-current assets and liabilities	(972)	(78)
Cash provided by operating activities of continuing operations	41,287	34,707
Cash provided by operating activities	41,287	34,707
Cash flows from investing activities:
Purchases of property, plant and equipment	(6,502)	(7,005)
Acquisition of businesses, net of cash acquired and working capital adjustments	(168,332)	(8,952)
Proceeds from the sale of property, plant and equipment	44	7,037
Cash used in investing activities of continuing operations	(174,790)	(8,920)
Cash provided by investing activities of discontinued operations		1,498
Cash used in investing activities	(174,790)	(7,422)
Cash flows from financing activities:
Borrowings under revolving credit facility	176,769
Repayments of long-term debt and revolving credit facility	(15,625)	(14,375)
Payments for debt issuance costs	(638)	(2,496)
Payments of contingent considerations	(2,546)
Repurchase of common stock	(370)	(1,634)
Payments of withholding taxes from stock-based awards	(1,846)	(1,719)
Capital lease payments	(646)	(905)
Other financing activities		(1)
Cash provided by (used in) financing activities of continuing operations	155,098	(21,130)
Cash provided by (used in) financing activities of discontinued operations	0	0
Cash provided by (used in) financing activities	155,098	(21,130)
Effect of exchange rates on cash and cash equivalents	2,446	(1,375)
Increase in cash and cash equivalents	24,041	4,780
Cash and cash equivalents, beginning of period	68,108	59,959
Cash and cash equivalents, end of period	92,149	64,739
Supplemental disclosure of cash flow information:
Cash paid for interest	3,512	2,167
Cash paid for income taxes	18,053	10,870
Income tax refunds received	$ 185	$ 359

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation Novanta Inc. and its subsidiaries (collectively referred to as the “Company”, “Novanta”, “we”, “us”, “our”) is a global supplier of core technology solutions that give healthcare and advanced industrial original equipment manufacturers (“OEMs”) a competitive advantage. Novanta combines deep proprietary technology expertise and competencies in photonics, vision and precision motion with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to customers' demanding applications. 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, 2016. 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. Prior to January 10, 2017, the Company had an approximately 41% ownership interest in Laser Quantum Limited (“Laser Quantum”), a privately held company located in the United Kingdom, which was accounted for under the equity method of accounting. On January 10, 2017, the Company acquired an additional approximately 35% of the outstanding shares of Laser Quantum. As a result of this transaction, the Company’s ownership position in Laser Quantum increased from approximately 41% to approximately 76%. Since January 10, 2017, Laser Quantum has been consolidated in the Company’s consolidated financial statements. 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 at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. 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 Share-Based Compensation In May 2017, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2017-09, “Compensation – Stock Compensation (Topic 718),” which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 requires that an entity account for the effects of a modification unless (i) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 will become effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of ASU 2017-09 to have a material impact on its consolidated financial statements. Presentation of Net Periodic Pension Cost In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires employers that offer or maintain defined benefit plans to disaggregate the service component from the other components of net benefit cost and provides guidance on the presentation of the service component and the other components of net benefit cost in the statement of operations. The new standard is effective for public companies for annual periods beginning after December 15, 2017. The Company expects to adopt the new standard in the first quarter of 2018 and expects to report its net periodic pension cost related to its frozen U.K. pension plan, consisting of interest cost, expected return on plan assets and amortization of actuarial gains (losses) only, in Other income (expense) in the consolidated statement of operations upon adoption. Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which simplifies the accounting for goodwill impairment. The amendment in ASU 2017-04 removes Step-two of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 will become effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of the new standard on its consolidated financial statements. Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The standard further clarifies the classification in the cash flow statement of the following items: (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 adopted ASU 2016-15 during the first quarter of 2017. The adoption of ASU 2016-15 resulted in ($2.5) million of payments of contingent considerations being reported as cash used in financing activities on the Company’s consolidated statements of cash flows for the nine months ended September 29, 2017. 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 potential impact of this guidance and an appropriate implementation strategy. While the Company’s evaluation of this guidance is in the early stages, the Company currently expects adoption of this guidance to have an impact on its consolidated balance sheet. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides guidance for revenue recognition. ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, “Revenue Recognition (Topic 605),” 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 would be effective for annual and interim reporting periods beginning after December 15, 2016 and did not allow early adoption. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date,” which deferred the effective date of ASU 2014-09 by one year to December 15, 2017, with the option of early adoption as of the original effective date. The amendment in ASU 2015-14 resulted in ASU 2014-09 becoming effective for annual and interim reporting periods beginning after December 15, 2017. Upon adoption of Topic 606, an entity may apply the new guidance either retrospectively to each prior reporting period presented (the “full retrospective method”) 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 (the “modified retrospective method”). The Company will adopt the new standard as of January 1, 2018 and has conducted various activities to prepare for the adoption of the new standard. The Company surveyed cross-functional leaders to identify potential revenue streams that could be impacted by Topic 606 and identified certain revenue streams that could be impacted. The Company also reviewed a representative sample of individual customer contracts related to these various revenue streams to determine if the guidance under Topic 606 is expected to have a material impact on revenue recognition. The Company’s work to date indicates that only a limited number of contracts with customers may require a change in the way revenues are recognized. The Company is still in the process of determining the expected quantitative impact that the adoption of Topic 606 will have on its consolidated financial statements. The Company concluded that it will adopt the new standard using the modified retrospective method. In addition, the Company will elect to apply certain practical expedients allowed under the guidance. First, the Company does not intend to adjust the promised amount of consideration for the effects of a financing component as the transfer of a promised good to a customer and the customer’s payment for that good are typically expected to be one year or less. Second, the Company will exclude from its transaction price any amounts collected from customers for all sales or other similar taxes, which is consistent with the Company’s current practice. Third, the Company will elect to account for shipping and handling activities that occur after the transfer of control over the related goods as fulfillment activities rather than performance obligations.

Business Combinations

Business Combinations	9 Months Ended
	Sep. 29, 2017
Business Combinations [Abstract]
Business Combinations	2. Business Combinations WOM On July 3, 2017, the Company acquired 100% of the outstanding shares of W.O.M. World of Medicine GmbH (“WOM”), a Berlin, Germany-based provider of medical insufflators, pumps, and related disposables for OEMs in the minimally invasive surgical market, for a total purchase price of €118.1 million ($134.9 million), net of working capital adjustments. The acquisition was financed with a €118.0 million ($134.7 million) draw-down on the Company’s revolving credit facility. The Company expects that the addition of WOM will help the Company to better serve customers in minimally invasive surgery applications with a broader range of product offerings. WOM is included in the Company’s Vision reportable segment. The acquisition of WOM has been accounted for as a business combination. The allocation of the purchase price is based upon a valuation of assets acquired and liabilities assumed. 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 WOM 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 regard to facts and circumstances that existed as of the acquisition date. Based upon a preliminary valuation, the total purchase price allocation is as follows (in thousands): Purchase Allocation Cash $ 1,400 Accounts receivable 11,807 Inventories 14,549 Property and equipment 21,940 Intangible assets 59,732 Goodwill 53,775 Other assets 2,660 Total assets acquired 165,863 Accounts payable 4,398 Other liabilities 8,276 Deferred tax liabilities 18,255 Total liabilities assumed 30,929 Total assets acquired, net of liabilities assumed 134,934 Less: cash acquired 1,400 Total purchase price, net of cash acquired $ 133,534 The fair value of intangible assets is comprised of the following (dollar amounts in thousands): Weighted Average Estimated Fair Amortization Value Period Developed technologies $ 21,586 10 years Customer relationships 34,949 12 years Trademarks and trade names 2,284 10 years Backlog 913 1 year Total $ 59,732 The purchase price allocation resulted in $59.7 million of identifiable intangible assets and $53.8 million of goodwill. As the WOM acquisition is an acquisition of outstanding common shares, none of the resulting goodwill is 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 flows potentially attributable to: (i) WOM’s ability to grow its business with existing and new customers, including leveraging the Company’s customer base; and (ii) cost improvements due to expansion in scale. The operating results of WOM were included in the Company’s results of operations beginning on July 3, 2017. WOM contributed revenues of $24.8 million and an operating loss from continuing operations before income taxes of $1.6 million for the nine months ended September 29, 2017. Operating loss from continuing operations before income taxes for the nine months ended September 29, 2017 included amortization of inventory fair value adjustments and amortization of purchased intangible assets of $4.9 million. ThingMagic On January 10, 2017, the Company acquired from Trimble Inc. certain assets and liabilities that constituted the business of ThingMagic, a Woburn, Massachusetts-based provider of ultra-high frequency (“UHF”) radio frequency identification (“RFID”) modules and finished RFID readers to OEMs in the medical and advanced industrial markets, for a total purchase price of $19.1 million, net of working capital adjustments. The acquisition was financed with cash on hand and a $12.0 million draw-down on the Company’s revolving credit facility. The Company expects that the addition of ThingMagic will broaden its portfolio of RFID solutions, while providing the resources to address the growing need for improvements in workflow solutions, patient safety, anti-counterfeiting, and asset tracking in a medical environment. ThingMagic is included in the Company’s Vision reportable segment. The acquisition of ThingMagic 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 ThingMagic 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. Based upon a preliminary valuation, the total purchase price was allocated as follows (in thousands): Purchase Price Allocation Inventories $ 1,832 Intangible assets 7,423 Goodwill 9,929 Total assets acquired 19,184 Other liabilities 95 Total liabilities assumed 95 Total purchase price $ 19,089 The fair value of intangible assets is comprised of the following (dollar amounts in thousands): Weighted Average Estimated Fair Amortization Value Period Developed technologies $ 4,600 10 years Customer relationships 2,520 10 years Trademarks and trade names 303 5 years Total $ 7,423 The purchase price allocation resulted in $7.4 million of identifiable intangible assets and $9.9 million of goodwill. As the ThingMagic acquisition is treated as an acquisition of assets for income tax purposes, the goodwill acquired is expected to be fully deductible. 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 flows potentially attributable to: (i) ThingMagic’s ability to grow its business with existing and new customers, including leveraging the Company’s customer base; (ii) cost synergies in combining the research and development capabilities from ThingMagic with the existing RFID capabilities within Novanta; and (iii) cost improvements due to the integration of ThingMagic operations into the Company’s existing infrastructure. The operating results of ThingMagic were included in the Company’s results of operations beginning on January 10, 2017. ThingMagic contributed revenues of $6.5 million and operating income from continuing operations before income taxes of $0.1 million for the nine months ended September 29, 2017. Operating income from continuing operations before income taxes for the nine months ended September 29, 2017 included amortization of inventory fair value adjustments and amortization of purchased intangible assets of $1.2 million. The pro forma financial information reflecting the operating results of ThingMagic, as if it had been acquired as of January 1, 2016, would not differ materially from the operating results of the Company as reported for the year ended December 31, 2016. Laser Quantum Limited On January 10, 2017, the Company acquired an additional approximately 35% of the outstanding shares of Laser Quantum, a Manchester, United Kingdom-based provider of solid state continuous wave lasers, femtosecond lasers, and optical light engines to OEMs in the medical market, for £25.5 million ($31.1 million) in cash consideration. The purchase price was financed with cash on hand and a $30.0 million draw-down on the Company’s revolving credit facility. As a result of this transaction, the Company’s ownership position in Laser Quantum increased from approximately 41% to approximately 76%. By establishing control through a majority equity ownership, the Company expects to broaden its technology capability in photonics solutions for medical applications, particularly within the growing DNA sequencing market, while providing key enabling photonics-based technologies for instrumentation and life science applications such as biomedical imaging, cell sorting, and ophthalmology. Laser Quantum is included in the Company’s Photonics reportable segment. As part of this transaction, the Company and the remaining shareholders of Laser Quantum entered into a call and put option agreement for the purchase and sale, in 2020, of all remaining Laser Quantum shares held by the other shareholders, subject to certain conditions. The purchase price for the remaining shares will be based on the proportionate share of the noncontrolling interest (“NCI”) in Laser Quantum’s cash on hand as of December 31, 2019 and a multiple of Laser Quantum’s EBITDA for the twelve months ending December 31, 2019, as defined in the call and put option agreement. In connection with the purchase price allocation, upon gaining control over Laser Quantum, the Company recognized a nontaxable gain of $26.4 million in the consolidated statement of operations for the nine months ended September 29, 2017. The gain represented the excess of the fair value of the Company’s previously-held equity interest in Laser Quantum over its carrying value upon gaining control. The fair value of the approximately 41% equity interest previously held by the Company before the acquisition and the fair value of the approximately 24% NCI held by the remaining shareholders of Laser Quantum after the acquisition were determined using a combination of the discounted cash flow method (an income approach), the guideline public company method (a market approach), and the subject company transaction method (a market approach). The subject company transaction method was based on the purchase price paid by the Company for the acquisition of the additional approximately 35% of the outstanding shares, while giving consideration to the control and/or minority nature of the subject equity interests. The acquisition of Laser Quantum 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 Laser Quantum 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 to be obtained with regards to facts and circumstances that existed as of the acquisition date. Based upon a preliminary valuation, the total purchase price was allocated as follows (in thousands): Purchase Allocation Cash $ 15,343 Accounts receivable 2,739 Inventories 6,264 Property and equipment 2,286 Intangible assets 38,955 Goodwill 31,041 Other assets 717 Total fair value of assets 97,345 Accounts payable 796 Other liabilities 2,068 Deferred tax liabilities 7,210 Total fair value of liabilities 10,074 Total fair value of assets, net of fair value of liabilities 87,271 Less: fair value of equity interest previously held by Novanta 34,637 Less: fair value of noncontrolling interest 21,582 Total purchase price paid by Novanta 31,052 Less: cash acquired 15,343 Purchase price, net of cash acquired $ 15,709 The fair value of intangible assets is comprised of the following (dollar amounts in thousands): Weighted Average Estimated Fair Amortization Value Period Developed technologies $ 15,501 15 years Customer relationships 19,990 15 years Trademarks and trade names 1,964 15 years Backlog 1,500 9 months Total $ 38,955 The purchase price allocation resulted in $39.0 million of identifiable intangible assets and $31.0 million of goodwill. As the Laser Quantum acquisition is an acquisition of outstanding common shares, none of the resulting goodwill is 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) Laser Quantum’s ability to grow its business with existing and new customers, including leveraging the Company’s broader customer base; and (ii) cost improvements due to expansion in scale. The operating results of Laser Quantum were included in the Company’s results of operations beginning on January 10, 2017. Laser Quantum contributed revenues of $32.3 million and income from continuing operations before income taxes of $7.0 million for the nine months ended September 29, 2017. Operating income from continuing operations before income taxes for the nine months ended September 29, 2017 included $5.8 million of expenses associated with the amortization of inventory fair value step-up and purchased intangible assets. Unaudited Pro Forma Information The pro forma information for all periods presented below includes the effects of business combination accounting resulting from the acquisitions of WOM and Laser Quantum, including amortization of inventory fair value adjustments, amortization of intangible assets, interest expense on borrowings in connection with the acquisition, elimination of the gain from business acquisition and income from equity method investment, and the related tax effects as though the acquisitions had been consummated as of January 1, 2016. The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisitions had taken place on January 1, 2016. Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Revenue $ 146,296 $ 124,925 $ 415,900 $ 361,701 Income from continuing operations $ 12,727 $ 8,241 $ 32,038 $ 12,804 Earnings per common share attributable to Novanta Inc. - Basic $ 0.12 $ 0.24 $ 0.55 $ 0.36 Earnings per common share attributable to Novanta Inc. - Diluted $ 0.12 $ 0.24 $ 0.55 $ 0.36 Acquisition Costs Acquisition-related costs are included in restructuring, acquisition and divestiture related costs in the consolidated statements of operations. Acquisition-related costs for WOM, ThingMagic and Laser Quantum are as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 29, 2017 2017 ThingMagic $ — $ 149 Laser Quantum $ — $ 264 WOM $ 3,359 $ 4,351

Discontinued Operations and Div

Discontinued Operations and Divestitures	9 Months Ended
	Sep. 29, 2017
Discontinued Operations And Disposal Groups [Abstract]
Discontinued Operations and Divestitures	3. Discontinued Operations and Divestitures 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. 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. 29, 2017
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	4. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) was as follows (in thousands): Total accumulated other Foreign currency comprehensive translation Pension income (loss) adjustments liabilities Balance at December 31, 2016 $ (27,715 ) $ (17,222 ) $ (10,493 ) Other comprehensive income (loss) 7,509 8,340 (831 ) Amounts reclassified from other comprehensive income (loss) (1) 874 — 874 Balance at September 29, 2017 $ (19,332 ) $ (8,882 ) $ (10,450 ) (1) The amounts reclassified from other comprehensive income (loss) were included in selling, general and administrative expenses in the consolidated statements of operations.

Earnings (Loss) per Common Shar

Earnings (Loss) per Common Share	9 Months Ended
	Sep. 29, 2017
Earnings Per Share [Abstract]
Earnings (Loss) per Common Share	5. Earnings (Loss) per Common Share Basic earnings (loss) per common share is computed by dividing net income attributable to Novanta Inc. after adjustment of redeemable noncontrolling interest to estimated redemption value by the weighted average number of common shares outstanding during the period. The Company recognizes changes in the redeemable noncontrolling interest redemption value by adjusting the carrying amount of the redeemable noncontrolling interest as of the end of the period to the higher of: (i) the estimated redemption value assuming the end of the period is also the redemption date or (ii) the carrying value without any redemption value adjustments. Such adjustments are recorded in retained earnings in stockholders’ equity instead of net income attributable to Novanta Inc. For both basic and diluted earnings (loss) per common share, such redemption value adjustments are included in the calculation of the numerator. For diluted earnings (loss) per common share, the denominator also includes the dilutive effect of outstanding restricted stock units, stock options and total shareholder return performance restricted stock units determined using the treasury stock method. Dilutive effects of contingently issuable shares are included in the weighted average dilutive share calculation using the treasury stock method 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 common share as the effect would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings (loss) per common share (in thousands, except per share amounts): Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Numerators: Income from continuing operations $ 8,366 $ 7,470 $ 52,630 $ 14,247 Less: Net income attributable to noncontrolling interest (834 ) — (1,444 ) — Net income attributable to Novanta Inc. 7,532 7,470 51,186 14,247 Less: Adjustment of redeemable noncontrolling interest to estimated redemption value (see Note 14) (7,585 ) — (11,303 ) — Net income (loss) attributable to Novanta Inc. after adjustment of redeemable noncontrolling interest to estimated redemption value $ (53 ) $ 7,470 $ 39,883 $ 14,247 Denominators: Weighted average common shares outstanding— basic 34,833 34,677 34,809 34,689 Dilutive potential common shares (1) — 251 426 200 Weighted average common shares outstanding— diluted 34,833 34,928 35,235 34,889 Antidilutive common shares excluded from above — 144 — 112 Basic Earnings (Loss) per Common Share: Basic earnings (loss) per common share attributable to Novanta Inc. $ (0.00 ) $ 0.22 $ 1.15 $ 0.41 Diluted Earnings (Loss) per Common Share: Diluted earnings (loss) per common share attributable to Novanta Inc. $ (0.00 ) $ 0.21 $ 1.13 $ 0.41 (1) Due to the Company’s net loss position after adjustment of redeemable noncontrolling interest to estimated redemption value for the three months ended September 29, 2017, all potentially dilutive shares are excluded from the calculation of the denominator as their effect would have been anti-dilutive. Common Share Repurchases During the nine months ended September 29, 2017, the Company repurchased 14 thousand of its common shares in the open market for an aggregate purchase price of $0.4 million at an average price of $26.41 per share.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 29, 2017
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 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 were 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 was zero to $0.3 million. If such targets were achieved, the contingent consideration would 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. Based on the actual sales order commitments through June 2017, the Company paid $0.1 million as the final Skyetek contingent consideration during the three months ended September 29, 2017. On November 11, 2015, the Company acquired Lincoln Laser Company (“Lincoln Laser”). Under the purchase and sale agreement for the Lincoln Laser acquisition, the shareholders of Lincoln Laser were eligible to receive contingent consideration based on the achievement of certain revenue targets for fiscal year 2016. The estimated fair value of the contingent consideration 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. On February 19, 2015, the Company acquired Applimotion Inc. (“Applimotion”). Under the purchase and sale agreement for the Applimotion acquisition, the 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 the contingent consideration 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. Subsequent changes in the estimated fair value of this contingent liability are recorded in the consolidated statement of operations in restructuring, acquisition and divestiture related costs until the liability is fully settled. Under the Monte Carlo valuation method, the fair value of the contingent consideration for Applimotion was $3.6 million as of December 31, 2016. Based on Applimotion’s revenue performance for 2015 and 2016, the Company paid $1.2 million in contingent consideration in the first quarter of 2017. Based on the strong revenue performance year to date and projections for the remainder of 2017, the Company adjusted the fair value for the remaining contingent consideration to $2.8 million, which is reported as a current liability in accrued expenses and other current liabilities on the consolidated balance sheet as of September 29, 2017. The second installment of the contingent consideration will be payable in the first quarter of 2018. The following table summarizes the fair values of the Company’s financial assets and liabilities as of September 29, 2017 (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 $ 3,141 $ 3,141 $ — $ — Liabilities Contingent consideration - Current $ 2,800 $ — $ — $ 2,800 Contingent consideration - Long-term — — — — $ 2,800 $ — $ — $ 2,800 The following table summarizes the fair values of the Company’s financial assets and liabilities as of December 31, 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 $ 9,569 $ 9,569 $ — $ — Liabilities Contingent consideration - Current $ 2,775 $ — $ — $ 2,775 Contingent consideration - Long-term 2,381 — — 2,381 $ 5,156 $ — $ — $ 5,156 Changes in the fair value of Level 3 contingent consideration during the nine months ended September 29, 2017 were as follows (in thousands): Contingent Consideration Balance at December 31, 2016 $ 5,156 Payment to Applimotion (1,200 ) Payment to Lincoln Laser (1,433 ) Payment to Skyetek (148 ) Fair value adjustments (1) 425 Balance at September 29, 2017 $ 2,800 (1) In the nine months ended September 29, 2017, the fair value of the contingent consideration in connection with the acquisition of Applimotion was increased by $0.4 million 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. 29, 2017
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 as of the beginning of the second quarter of 2017 and noted no impairment of goodwill. The following table summarizes changes in goodwill during the nine months ended September 29, 2017 (in thousands): Balance at beginning of the period $ 108,128 Goodwill acquired from Laser Quantum acquisition 31,041 Goodwill acquired from ThingMagic acquisition 9,929 Goodwill acquired from WOM acquisition 53,775 Effect of foreign exchange rate changes 4,847 Balance at end of the period $ 207,720 Goodwill by reportable segment as of September 29, 2017 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 170,450 $ 154,536 $ 33,963 $ 358,949 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 67,989 $ 122,814 $ 16,917 $ 207,720 Goodwill by reportable segment as of December 31, 2016 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 136,278 $ 89,116 $ 33,963 $ 259,357 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 33,817 $ 57,394 $ 16,917 $ 108,128 Intangible Assets Intangible assets as of September 29, 2017 and December 31, 2016, respectively, are summarized as follows (in thousands): September 29, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and developed technologies $ 129,059 $ (74,456 ) $ 54,603 $ 84,742 $ (67,902 ) $ 16,840 Customer relationships 130,311 (49,765 ) 80,546 69,554 (42,934 ) 26,620 Customer backlog 3,216 (2,273 ) 943 622 (540 ) 82 Non-compete covenant 2,514 (1,821 ) 693 2,514 (1,419 ) 1,095 Trademarks and trade names 15,644 (7,518 ) 8,126 10,709 (6,630 ) 4,079 Amortizable intangible assets 280,744 (135,833 ) 144,911 168,141 (119,425 ) 48,716 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 293,771 $ (135,833 ) $ 157,938 $ 181,168 $ (119,425 ) $ 61,743 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 developed 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 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Amortization expense – cost of revenue $ 2,741 $ 994 $ 6,078 $ 3,163 Amortization expense – operating expenses 3,217 2,066 9,413 6,153 Total amortization expense $ 5,958 $ 3,060 $ 15,491 $ 9,316 Estimated amortization expense for each of the five succeeding years and thereafter as of September 29, 2017 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2017 (remainder of year) $ 2,755 $ 2,697 $ 5,452 2018 9,331 16,591 25,922 2019 8,474 14,625 23,099 2020 7,585 11,922 19,507 2021 6,703 10,708 17,411 Thereafter 19,755 33,765 53,520 Total $ 54,603 $ 90,308 $ 144,911

Supplementary Balance Sheet Inf

Supplementary Balance Sheet Information	9 Months Ended
	Sep. 29, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Supplementary Balance Sheet Information	8. Supplementary Balance Sheet Information The following tables provide the details of selected balance sheet items as of the periods indicated (in thousands): Inventories September 29, December 31, 2017 2016 Raw materials $ 55,418 $ 39,822 Work-in-process 13,272 8,012 Finished goods 16,634 9,511 Demo and consigned inventory 3,537 2,400 Total inventories $ 88,861 $ 59,745 Accrued Expenses and Other Current Liabilities September 29, December 31, 2017 2016 Accrued compensation and benefits $ 16,631 $ 9,647 Accrued warranty 4,773 3,142 Accrued restructuring 575 1,371 Accrued professional services 1,854 1,237 Accrued contingent considerations 2,800 2,775 Customer deposits 3,294 1,164 Other 11,013 7,612 Total $ 40,940 $ 26,948 Accrued Warranty Nine Months Ended September 29, 2017 September 30, 2016 Balance at beginning of the period $ 3,142 $ 3,335 Provision charged to cost of revenue 2,084 1,050 Acquisition related warranty accrual 1,307 — Use of provision (1,818 ) (1,060 ) Foreign currency exchange rate changes 58 (25 ) Balance at end of period $ 4,773 $ 3,300 Other Long Term Liabilities September 29, December 31, 2017 2016 Capital lease obligations $ 7,794 $ 8,111 Accrued pension liabilities 5,256 5,957 Accrued contingent considerations — 2,381 Other 2,018 2,264 Total $ 15,068 $ 18,713

Debt

Debt	9 Months Ended
	Sep. 29, 2017
Debt Disclosure [Abstract]
Debt	9. Debt Debt consisted of the following (in thousands): September 29, December 31, 2017 2016 Senior Credit Facilities – term loan $ 9,200 $ 7,500 Less: unamortized debt issuance costs (85 ) (134 ) Total current portion of long-term debt $ 9,115 $ 7,366 Senior Credit Facilities – term loan $ 81,425 $ 63,750 Senior Credit Facilities – revolving credit facility 156,069 10,000 Less: unamortized debt issuance costs (3,306 ) (3,196 ) Total long-term debt $ 234,188 $ 70,554 Total Senior Credit Facilities $ 243,303 $ 77,920 Senior Credit Facilities In August 2017, the Company entered into an amendment (the “Third Amendment”) to the second amended and restated credit agreement, dated as of May 19, 2016 (the “Second Amended and Restated Credit Agreement”). The Third Amendment increased the revolving credit facility under the Second Amended and Restated Credit Agreement by $100 million, from $225 million to $325 million, and reset the uncommitted accordion feature to $125 million for potential future expansion. Additionally, the Third Amendment increased the term loan balance from $65.6 million to $90.6 million. The Company incurred $0.7 million in financing costs related to the Third Amendment. These costs are presented as a reduction to the debt balances on the consolidated balance sheet and will be amortized over the term of the Second Amended and Restated Credit Agreement. 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 27, 2017. 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 certain U.S., U.K. and German subsidiaries as defined in the Second Amended and Restated Credit Agreement and guaranteed by the Company and these subsidiaries. The Second Amended and Restated Credit Agreement also contains customary events of default. Fair Value of Debt As of September 29, 2017 and December 31, 2016, 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. The fair value of the Company’s debt is classified as Level 2 under the fair value hierarchy.

Share-based Compensation

Share-based Compensation	9 Months Ended
	Sep. 29, 2017
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 Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Selling, general and administrative $ 1,336 $ 914 $ 3,911 $ 3,112 Research and development and engineering 59 18 156 82 Cost of revenue 41 56 156 191 Total share-based compensation expense $ 1,436 $ 988 $ 4,223 $ 3,385 Share-based compensation reported in selling, general and administrative expenses during each of the nine-month periods ended September 29, 2017 and September 30, 2016, respectively, included $0.5 million of expense related to deferred stock units granted to the members of the Company’s Board of Directors. Service-based Restricted Stock Units and Deferred Stock Units The Company’s restricted stock units (“RSUs”) have been issued with vesting periods of three, four, and five years and vest based solely on service conditions. Accordingly, the Company recognizes compensation expense on a straight-line basis over the requisite service period. The Company reduces the compensation expense by an estimated forfeiture rate which is based on anticipated forfeitures and actual experience. Deferred stock units (“DSUs”) are granted solely to the members of the Company’s Board of Directors, and have been issued as fully vested and non-forfeitable awards upon grant. The compensation expense associated with the DSUs is recognized in full on the respective date of 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 29, 2017: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2016 635 $ 13.97 Granted 242 $ 25.04 Vested (206 ) $ 14.09 Forfeited (25 ) $ 16.33 Unvested at September 29, 2017 646 $ 17.99 Expected to vest as of September 29, 2017 616 The total fair value of RSUs and DSUs that vested during the nine months ended September 29, 2017 was $5.2 million based on the market price of the underlying stock on the date of vesting. Performance-based Awards The Company granted two types of performance-based awards to certain members of the executive management team: non-GAAP EPS performance-based restricted stock units (“EPS-PSUs”) and relative total shareholder return performance-based restricted stock units (“TSR-PSUs”). Both types of performance-based restricted stock units generally cliff vest on the first day following the end of the three-year performance period. The number of common shares to be issued upon settlement following vesting of the EPS-PSUs is determined based on the Company’s cumulative non-GAAP EPS over the three-year performance period against the target established by the Company’s Board of Directors at the time of grant and will be in the range of zero to 200% of the target number of shares. The Company recognizes the related compensation expense ratably over the performance period based on the number of shares that are deemed probable of vesting at the end of the three-year performance cycle. This probability assessment is performed quarterly and the cumulative effect of a change in the estimated compensation expense, if any, is recognized in the consolidated statement of operations in the period in which such determination is made. The number of shares to be issued upon settlement following vesting of the TSR-PSUs is determined based on the relative market performance of the Company’s common stock compared to the Russell 2000 Index over the three-year performance period using a payout formula established by the Company’s Board of Directors at the time of grant and will be in the range of zero to 200% of the target number of shares. The Company recognizes the related compensation expense based on the fair value of the TSR-PSUs, determined using the Monte-Carlo valuation model as of the date of grant, on a straight-line basis from the grant date to the end of the three-year performance period. Compensation expense will not be affected by the number of TSR-PSUs that will actually vest at the end of the three-year performance period. The table below summarizes the activities relating to the performance-based awards issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 29, 2017: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2016 29 $ 14.13 Granted 60 $ 28.80 Vested — $ — Forfeited — $ — Unvested at September 29, 2017 89 $ 24.00 The fair value of the TSR-PSUs at the date of grant was estimated using the Monte-Carlo valuation model with the following assumptions: Nine Months Ended September 29, 2017 Grant-date stock price $ 24.30 Expected volatility 28.6 % Risk-free interest rate 1.44 % Expected annual dividend yield — Weighted average fair value $ 33.31 Stock Options The fair value of stock options is estimated using the Black-Scholes valuation model. Key input assumptions include the expected option term, the expected volatility of the common stock over the expected term of the options, the risk-free interest rate, and the expected dividend yield. Compensation expense related to stock options is recognized in the consolidated statement of operations on a straight-line basis over the vesting period. No stock options were granted during the nine months ended September 29, 2017.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 29, 2017
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 pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with the cumulative effect of any changes in the estimated annual effective tax rate being recorded in the fiscal quarter in which the change is determined. The tax effect of significant unusual items is reflected in the period in which they occur. Since the Company is incorporated in Canada, it is required to use Canada’s statutory tax rate of 29.0% in the determination of the estimated annual effective tax rate. The Company’s effective tax rate on income from continuing operations of 11.9% for the three months ended September 29, 2017 differs from the Canadian statutory tax rate of 29.0% due to the mix of income earned in jurisdictions with varying tax rates, losses in jurisdictions with a full valuation allowance, recognition of net tax benefits associated with uncertain tax positions upon expiration of statute of limitations and conclusion of income tax audits, and other discrete items for the period. The Company’s effective tax rate on income from continuing operations of 11.6% for the nine months ended September 29, 2017 differs from the Canadian statutory tax rate of 29.0% due to the mix of income earned in jurisdictions with varying tax rates, losses in jurisdictions with a full valuation allowance, the impact associated with establishing control over Laser Quantum upon the acquisition of an additional approximately 35% of Laser Quantum’s outstanding shares, recognition of net tax benefits associated with uncertain tax positions upon expiration of statute of limitations and conclusion of income tax audits, and other discrete items for the period. The Company reported a nontaxable gain of $26.4 million on its previously-held Laser Quantum equity interest and wrote off $1.5 million of Laser Quantum related deferred tax liability, which had a combined 13.7% favorable impact on the effective tax rate for the nine months ended September 29, 2017. The Company’s effective tax rate on income from continuing operations of 31.1% for the three months ended September 30, 2016 differed 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 differed 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, 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, which had a 1.9% favorable impact on the effective tax rate for the nine months ended September 30, 2016. 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. 29, 2017
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 Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 2016 restructuring $ — $ (1,621 ) $ 186 $ 2,955 2011 restructuring — — 14 108 Total restructuring and divestiture charges — (1,621 ) 200 3,063 Acquisition and related charges 3,834 786 6,032 2,765 Total restructuring, acquisition and divestiture related costs (gain) $ 3,834 $ (835 ) $ 6,232 $ 5,828 2016 Restructuring During the third quarter of 2015, the Company initiated the 2016 restructuring program, which included consolidating certain of its manufacturing operations to optimize its facility footprint and better utilize resources, costs associated with discontinuing its radiology product line and reducing redundant costs due to productivity cost savings and business volume reductions. The Company substantially completed the 2016 restructuring program during the second quarter of 2016. As of September 29, 2017, the Company incurred cumulative costs related to this restructuring plan totaling $6.4 million. The Company expects to incur additional restructuring charges of $0.2 million to $0.3 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 Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Photonics $ — $ 45 $ — $ 813 Vision — (1,728 ) 185 1,730 Precision Motion — — — 106 Unallocated Corporate and Shared Services — 62 1 306 Total $ — $ (1,621 ) $ 186 $ 2,955 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 Systems and Laser Systems businesses. The Company substantially completed the 2011 restructuring program by the end of 2013. In March 2016, the Company sold its previously exited Laser Systems facility located in Orlando, Florida for cash at the net carrying value of $3.5 million. In December 2016, the lease agreement for the Company’s previously exited laser scanner business facility was terminated. 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, 2016 $ 1,736 $ 611 $ 1,111 $ — $ 14 Restructuring charges 200 185 — — 15 Cash payments (1,068 ) (652 ) (399 ) — (17 ) Non-cash write-offs and other adjustments (62 ) (65 ) 11 — (8 ) Balance at September 29, 2017 $ 806 $ 79 $ 723 $ — $ 4 Acquisition and Related Charges Acquisition related costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $3.8 million and $6.0 million for the three and nine months ended September 29, 2017, respectively, and $0.8 million and $2.8 million for the three and nine months ended September 30, 2016, respectively. The majority of acquisition related costs for the three and nine months ended September 29, 2017 were included in Unallocated Corporate and Shared Services costs.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 29, 2017
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. Excluding the operating and capital leases acquired as part of the WOM acquisition, there have been no material changes to the Company’s leases through September 29, 2017 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, 2016. Future minimum lease payments under the existing operating and capital leases for WOM are as follows (in thousands): Year Ending December 31, Operating Lease Capital Lease (1) 2017 (remainder of year) $ 573 $ 40 2018 2,250 130 2019 2,150 90 2020 2,128 75 2021 2,005 — Thereafter 7,207 — Total minimum lease payments $ 16,313 $ 335 (1) Capital lease payments include interest payments of less than $0.1 million. Purchase Commitments Excluding WOM’s purchase commitments, there have been no material changes to the Company’s purchase commitments since December 31, 2016. As of September 29, 2017, WOM had unconditional commitments primarily for inventory purchases of $20.5 million. These purchase commitments are expected to be incurred as follows: $13.3 million in the remainder of 2017, and $7.2 million in 2018. 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 the 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.

Redeemable Noncontrolling Inter

Redeemable Noncontrolling Interest	9 Months Ended
	Sep. 29, 2017
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interest	14. Redeemable Noncontrolling Interest As a result of the Company’s acquisition of additional outstanding shares of Laser Quantum from the remaining shareholders on January 10, 2017, the Company increased its ownership position in Laser Quantum from approximately 41% to approximately 76% and began to consolidate the operating results of Laser Quantum in the consolidated financial statements. As part of the purchase agreement, the Company and the remaining equity holders entered into a call and put option agreement for the purchase and sale, in 2020, of all remaining Laser Quantum shares held by the remaining shareholders, subject to certain conditions. The purchase price for the remaining shares will be based on the proportionate share of the noncontrolling interest in Laser Quantum’s cash on hand as of December 31, 2019 and a multiple of Laser Quantum’s EBITDA for the twelve months ending December 31, 2019, as defined in the call and put option agreement. As a result of the put option held by the remaining shareholders, the noncontrolling interest is considered a redeemable equity instrument and is presented as temporary equity on the consolidated balance sheet. The proportionate share of the net income from Laser Quantum attributable to the noncontrolling interest has been reported as a reduction to the consolidated net income in the Company’s consolidated statements of operations and an increase to the carrying value of the redeemable noncontrolling interest. The initial value of the noncontrolling interest of £17.7 million ($21.6 million) was measured at fair value at the date of the acquisition. The value of the noncontrolling interest was determined using a combination of the discounted cash flow method (an income approach), the guideline public company method (a market approach), and the subject company transaction method (a market approach). The Company carries the redeemable noncontrolling interest at the higher of (i) the carrying value without any redemption value adjustments or (ii) the estimated redemption value as of the end of the reporting period. The estimated redemption value is determined as of the end of the reporting period as if it were also the redemption date for the instrument. The resulting adjustments are recorded in retained earnings in shareholders’ equity and do not affect net income attributable to Novanta Inc. During the nine months ended September 29, 2017, the Company increased the carrying amount of the redeemable noncontrolling interest by $11.3 million to reflect the estimated redemption value as of September 29, 2017. The following table presents the reconciliation of changes in the Company’s noncontrolling interest (in thousands): Redeemable noncontrolling interests Balance as of December 31, 2016 $ — Acquisition of noncontrolling interest 21,582 Net income attributable to noncontrolling interest 1,444 Adjustment of redeemable noncontrolling interest to estimated redemption value (1) 11,303 Foreign currency translation 2,509 Balance as of September 29, 2017 $ 36,838 (1) Adjustment of the carrying value of redeemable noncontrolling interest to the estimated redemption value was recognized in retained earnings instead of the consolidated statement of operations but was included in the computation of earnings per share attributable to Novanta Inc. (see Note 5.)

Segment Information

Segment Information	9 Months Ended
	Sep. 29, 2017
Segment Reporting [Abstract]
Segment Information	15. 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. The Company operates in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities are described below. Photonics The Photonics segment designs, manufactures and markets photonics-based solutions, including CO2 lasers, continuous wave and femtosecond lasers, optical light engines, and laser scanning and laser 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, DNA sequencing, 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 medical insufflators, pumps and related disposables; surgical displays and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification (“RFID”) technologies; thermal printers; spectrometry technologies, and embedded touch screen solutions. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Precision Motion The Precision Motion segment designs, manufactures and markets optical 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 Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Revenue Photonics $ 61,882 $ 43,425 $ 170,503 $ 129,907 Vision 58,150 31,601 124,943 88,768 Precision Motion 26,264 22,803 78,926 67,204 Total $ 146,296 $ 97,829 $ 374,372 $ 285,879 Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Gross Profit Photonics $ 28,966 $ 18,603 $ 77,423 $ 57,461 Vision 19,792 12,343 47,378 32,446 Precision Motion 10,291 10,592 34,558 30,757 Unallocated Corporate and Shared Services (342 ) (326 ) (1,069 ) (1,064 ) Total $ 58,707 $ 41,212 $ 158,290 $ 119,600 Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Gross Profit Margin Photonics 46.8 % 42.8 % 45.4 % 44.2 % Vision 34.0 % 39.1 % 37.9 % 36.6 % Precision Motion 39.2 % 46.5 % 43.8 % 45.8 % Total 40.1 % 42.1 % 42.3 % 41.8 % Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Operating Income (Loss) from Continuing Operations Photonics $ 15,233 $ 8,185 $ 35,746 $ 24,704 Vision 846 2,307 4,893 (4,164 ) Precision Motion 5,493 6,195 20,238 16,608 Unallocated Corporate and Shared Services (9,299 ) (5,639 ) (22,776 ) (15,915 ) Total $ 12,273 $ 11,048 $ 38,101 $ 21,233 Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Depreciation and Amortization Photonics $ 3,666 $ 1,820 $ 10,693 $ 5,123 Vision 4,362 2,460 9,276 7,861 Precision Motion 588 603 1,746 1,845 Unallocated Corporate and Shared Services 248 281 725 1,104 Total $ 8,864 $ 5,164 $ 22,440 $ 15,933

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 29, 2017
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 at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. 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 Share-Based Compensation In May 2017, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2017-09, “Compensation – Stock Compensation (Topic 718),” which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 requires that an entity account for the effects of a modification unless (i) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 will become effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company does not expect the adoption of ASU 2017-09 to have a material impact on its consolidated financial statements. Presentation of Net Periodic Pension Cost In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires employers that offer or maintain defined benefit plans to disaggregate the service component from the other components of net benefit cost and provides guidance on the presentation of the service component and the other components of net benefit cost in the statement of operations. The new standard is effective for public companies for annual periods beginning after December 15, 2017. The Company expects to adopt the new standard in the first quarter of 2018 and expects to report its net periodic pension cost related to its frozen U.K. pension plan, consisting of interest cost, expected return on plan assets and amortization of actuarial gains (losses) only, in Other income (expense) in the consolidated statement of operations upon adoption. Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which simplifies the accounting for goodwill impairment. The amendment in ASU 2017-04 removes Step-two of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 will become effective prospectively for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of the new standard on its consolidated financial statements. Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The standard further clarifies the classification in the cash flow statement of the following items: (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 adopted ASU 2016-15 during the first quarter of 2017. The adoption of ASU 2016-15 resulted in ($2.5) million of payments of contingent considerations being reported as cash used in financing activities on the Company’s consolidated statements of cash flows for the nine months ended September 29, 2017. 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 potential impact of this guidance and an appropriate implementation strategy. While the Company’s evaluation of this guidance is in the early stages, the Company currently expects adoption of this guidance to have an impact on its consolidated balance sheet. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides guidance for revenue recognition. ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, “Revenue Recognition (Topic 605),” 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 would be effective for annual and interim reporting periods beginning after December 15, 2016 and did not allow early adoption. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date,” which deferred the effective date of ASU 2014-09 by one year to December 15, 2017, with the option of early adoption as of the original effective date. The amendment in ASU 2015-14 resulted in ASU 2014-09 becoming effective for annual and interim reporting periods beginning after December 15, 2017. Upon adoption of Topic 606, an entity may apply the new guidance either retrospectively to each prior reporting period presented (the “full retrospective method”) 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 (the “modified retrospective method”). The Company will adopt the new standard as of January 1, 2018 and has conducted various activities to prepare for the adoption of the new standard. The Company surveyed cross-functional leaders to identify potential revenue streams that could be impacted by Topic 606 and identified certain revenue streams that could be impacted. The Company also reviewed a representative sample of individual customer contracts related to these various revenue streams to determine if the guidance under Topic 606 is expected to have a material impact on revenue recognition. The Company’s work to date indicates that only a limited number of contracts with customers may require a change in the way revenues are recognized. The Company is still in the process of determining the expected quantitative impact that the adoption of Topic 606 will have on its consolidated financial statements. The Company concluded that it will adopt the new standard using the modified retrospective method. In addition, the Company will elect to apply certain practical expedients allowed under the guidance. First, the Company does not intend to adjust the promised amount of consideration for the effects of a financing component as the transfer of a promised good to a customer and the customer’s payment for that good are typically expected to be one year or less. Second, the Company will exclude from its transaction price any amounts collected from customers for all sales or other similar taxes, which is consistent with the Company’s current practice. Third, the Company will elect to account for shipping and handling activities that occur after the transfer of control over the related goods as fulfillment activities rather than performance obligations.

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 29, 2017
Summary of Pro Forma Financial Information	The pro forma financial information is presented for comparative purposes only and is not necessarily indicative of the results of operations that actually would have been achieved if the acquisitions had taken place on January 1, 2016. Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Revenue $ 146,296 $ 124,925 $ 415,900 $ 361,701 Income from continuing operations $ 12,727 $ 8,241 $ 32,038 $ 12,804 Earnings per common share attributable to Novanta Inc. - Basic $ 0.12 $ 0.24 $ 0.55 $ 0.36 Earnings per common share attributable to Novanta Inc. - Diluted $ 0.12 $ 0.24 $ 0.55 $ 0.36
Summary of Acquisition Related Costs	Acquisition-related costs are included in restructuring, acquisition and divestiture related costs in the consolidated statements of operations. Acquisition-related costs for WOM, ThingMagic and Laser Quantum are as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 29, 2017 2017 ThingMagic $ — $ 149 Laser Quantum $ — $ 264 WOM $ 3,359 $ 4,351
World of Medicine GmbH
Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation	Based upon a preliminary valuation, the total purchase price allocation is as follows (in thousands): Purchase Allocation Cash $ 1,400 Accounts receivable 11,807 Inventories 14,549 Property and equipment 21,940 Intangible assets 59,732 Goodwill 53,775 Other assets 2,660 Total assets acquired 165,863 Accounts payable 4,398 Other liabilities 8,276 Deferred tax liabilities 18,255 Total liabilities assumed 30,929 Total assets acquired, net of liabilities assumed 134,934 Less: cash acquired 1,400 Total purchase price, net of cash acquired $ 133,534
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 Developed technologies $ 21,586 10 years Customer relationships 34,949 12 years Trademarks and trade names 2,284 10 years Backlog 913 1 year Total $ 59,732
Thing Magic
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 Price Allocation Inventories $ 1,832 Intangible assets 7,423 Goodwill 9,929 Total assets acquired 19,184 Other liabilities 95 Total liabilities assumed 95 Total purchase price $ 19,089
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 Developed technologies $ 4,600 10 years Customer relationships 2,520 10 years Trademarks and trade names 303 5 years Total $ 7,423
Laser Quantum
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 $ 15,343 Accounts receivable 2,739 Inventories 6,264 Property and equipment 2,286 Intangible assets 38,955 Goodwill 31,041 Other assets 717 Total fair value of assets 97,345 Accounts payable 796 Other liabilities 2,068 Deferred tax liabilities 7,210 Total fair value of liabilities 10,074 Total fair value of assets, net of fair value of liabilities 87,271 Less: fair value of equity interest previously held by Novanta 34,637 Less: fair value of noncontrolling interest 21,582 Total purchase price paid by Novanta 31,052 Less: cash acquired 15,343 Purchase price, net of cash acquired $ 15,709
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 Developed technologies $ 15,501 15 years Customer relationships 19,990 15 years Trademarks and trade names 1,964 15 years Backlog 1,500 9 months Total $ 38,955

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 29, 2017
Equity [Abstract]
Components of Accumulated Other Comprehensive Income (Loss)	Changes in accumulated other comprehensive income (loss) was as follows (in thousands): Total accumulated other Foreign currency comprehensive translation Pension income (loss) adjustments liabilities Balance at December 31, 2016 $ (27,715 ) $ (17,222 ) $ (10,493 ) Other comprehensive income (loss) 7,509 8,340 (831 ) Amounts reclassified from other comprehensive income (loss) (1) 874 — 874 Balance at September 29, 2017 $ (19,332 ) $ (8,882 ) $ (10,450 ) (1) The amounts reclassified from other comprehensive income (loss) were included in selling, general and administrative expenses in the consolidated statements of operations.

Earnings (Loss) per Common Sh25

Earnings (Loss) per Common Share (Tables)	9 Months Ended
	Sep. 29, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings (Loss) per Common Share	The following table sets forth the computation of basic and diluted earnings (loss) per common share (in thousands, except per share amounts): Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Numerators: Income from continuing operations $ 8,366 $ 7,470 $ 52,630 $ 14,247 Less: Net income attributable to noncontrolling interest (834 ) — (1,444 ) — Net income attributable to Novanta Inc. 7,532 7,470 51,186 14,247 Less: Adjustment of redeemable noncontrolling interest to estimated redemption value (see Note 14) (7,585 ) — (11,303 ) — Net income (loss) attributable to Novanta Inc. after adjustment of redeemable noncontrolling interest to estimated redemption value $ (53 ) $ 7,470 $ 39,883 $ 14,247 Denominators: Weighted average common shares outstanding— basic 34,833 34,677 34,809 34,689 Dilutive potential common shares (1) — 251 426 200 Weighted average common shares outstanding— diluted 34,833 34,928 35,235 34,889 Antidilutive common shares excluded from above — 144 — 112 Basic Earnings (Loss) per Common Share: Basic earnings (loss) per common share attributable to Novanta Inc. $ (0.00 ) $ 0.22 $ 1.15 $ 0.41 Diluted Earnings (Loss) per Common Share: Diluted earnings (loss) per common share attributable to Novanta Inc. $ (0.00 ) $ 0.21 $ 1.13 $ 0.41 (1) Due to the Company’s net loss position after adjustment of redeemable noncontrolling interest to estimated redemption value for the three months ended September 29, 2017, all potentially dilutive shares are excluded from the calculation of the denominator as their effect would have been anti-dilutive.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 29, 2017
Fair Value Disclosures [Abstract]
Fair Values of Financial Assets and Liabilities	The following table summarizes the fair values of the Company’s financial assets and liabilities as of September 29, 2017 (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 $ 3,141 $ 3,141 $ — $ — Liabilities Contingent consideration - Current $ 2,800 $ — $ — $ 2,800 Contingent consideration - Long-term — — — — $ 2,800 $ — $ — $ 2,800 The following table summarizes the fair values of the Company’s financial assets and liabilities as of December 31, 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 $ 9,569 $ 9,569 $ — $ — Liabilities Contingent consideration - Current $ 2,775 $ — $ — $ 2,775 Contingent consideration - Long-term 2,381 — — 2,381 $ 5,156 $ — $ — $ 5,156
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 29, 2017 were as follows (in thousands): Contingent Consideration Balance at December 31, 2016 $ 5,156 Payment to Applimotion (1,200 ) Payment to Lincoln Laser (1,433 ) Payment to Skyetek (148 ) Fair value adjustments (1) 425 Balance at September 29, 2017 $ 2,800 (1) In the nine months ended September 29, 2017, the fair value of the contingent consideration in connection with the acquisition of Applimotion was increased by $0.4 million due to increased actual and projected revenue performance.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 29, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Changes in Goodwill	The following table summarizes changes in goodwill during the nine months ended September 29, 2017 (in thousands): Balance at beginning of the period $ 108,128 Goodwill acquired from Laser Quantum acquisition 31,041 Goodwill acquired from ThingMagic acquisition 9,929 Goodwill acquired from WOM acquisition 53,775 Effect of foreign exchange rate changes 4,847 Balance at end of the period $ 207,720
Goodwill by Reportable Segment	Goodwill by reportable segment as of September 29, 2017 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 170,450 $ 154,536 $ 33,963 $ 358,949 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 67,989 $ 122,814 $ 16,917 $ 207,720 Goodwill by reportable segment as of December 31, 2016 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 136,278 $ 89,116 $ 33,963 $ 259,357 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 33,817 $ 57,394 $ 16,917 $ 108,128
Intangible Assets	Intangible assets as of September 29, 2017 and December 31, 2016, respectively, are summarized as follows (in thousands): September 29, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and developed technologies $ 129,059 $ (74,456 ) $ 54,603 $ 84,742 $ (67,902 ) $ 16,840 Customer relationships 130,311 (49,765 ) 80,546 69,554 (42,934 ) 26,620 Customer backlog 3,216 (2,273 ) 943 622 (540 ) 82 Non-compete covenant 2,514 (1,821 ) 693 2,514 (1,419 ) 1,095 Trademarks and trade names 15,644 (7,518 ) 8,126 10,709 (6,630 ) 4,079 Amortizable intangible assets 280,744 (135,833 ) 144,911 168,141 (119,425 ) 48,716 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 293,771 $ (135,833 ) $ 157,938 $ 181,168 $ (119,425 ) $ 61,743
Amortization Expense of Intangible Assets	Amortization expense is as follows (in thousands): Three Months Ended Nine Months Ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Amortization expense – cost of revenue $ 2,741 $ 994 $ 6,078 $ 3,163 Amortization expense – operating expenses 3,217 2,066 9,413 6,153 Total amortization expense $ 5,958 $ 3,060 $ 15,491 $ 9,316
Estimated Amortization Expense	Estimated amortization expense for each of the five succeeding years and thereafter as of September 29, 2017 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2017 (remainder of year) $ 2,755 $ 2,697 $ 5,452 2018 9,331 16,591 25,922 2019 8,474 14,625 23,099 2020 7,585 11,922 19,507 2021 6,703 10,708 17,411 Thereafter 19,755 33,765 53,520 Total $ 54,603 $ 90,308 $ 144,911

Supplementary Balance Sheet I28

Supplementary Balance Sheet Information (Tables)	9 Months Ended
	Sep. 29, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Inventories	Inventories September 29, December 31, 2017 2016 Raw materials $ 55,418 $ 39,822 Work-in-process 13,272 8,012 Finished goods 16,634 9,511 Demo and consigned inventory 3,537 2,400 Total inventories $ 88,861 $ 59,745
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities September 29, December 31, 2017 2016 Accrued compensation and benefits $ 16,631 $ 9,647 Accrued warranty 4,773 3,142 Accrued restructuring 575 1,371 Accrued professional services 1,854 1,237 Accrued contingent considerations 2,800 2,775 Customer deposits 3,294 1,164 Other 11,013 7,612 Total $ 40,940 $ 26,948
Accrued Warranty	Accrued Warranty Nine Months Ended September 29, 2017 September 30, 2016 Balance at beginning of the period $ 3,142 $ 3,335 Provision charged to cost of revenue 2,084 1,050 Acquisition related warranty accrual 1,307 — Use of provision (1,818 ) (1,060 ) Foreign currency exchange rate changes 58 (25 ) Balance at end of period $ 4,773 $ 3,300
Summary of Other Long Term Liabilities	Other Long Term Liabilities September 29, December 31, 2017 2016 Capital lease obligations $ 7,794 $ 8,111 Accrued pension liabilities 5,256 5,957 Accrued contingent considerations — 2,381 Other 2,018 2,264 Total $ 15,068 $ 18,713

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 29, 2017
Debt Disclosure [Abstract]
Debt	Debt consisted of the following (in thousands): September 29, December 31, 2017 2016 Senior Credit Facilities – term loan $ 9,200 $ 7,500 Less: unamortized debt issuance costs (85 ) (134 ) Total current portion of long-term debt $ 9,115 $ 7,366 Senior Credit Facilities – term loan $ 81,425 $ 63,750 Senior Credit Facilities – revolving credit facility 156,069 10,000 Less: unamortized debt issuance costs (3,306 ) (3,196 ) Total long-term debt $ 234,188 $ 70,554 Total Senior Credit Facilities $ 243,303 $ 77,920

Share-based Compensation (Table

Share-based Compensation (Tables)	9 Months Ended
	Sep. 29, 2017
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 Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Selling, general and administrative $ 1,336 $ 914 $ 3,911 $ 3,112 Research and development and engineering 59 18 156 82 Cost of revenue 41 56 156 191 Total share-based compensation expense $ 1,436 $ 988 $ 4,223 $ 3,385
Fair Value of TSR Performance-Based Restricted Stock Units Estimated Using Monte-Carol Valuation Model	The fair value of the TSR-PSUs at the date of grant was estimated using the Monte-Carlo valuation model with the following assumptions: Nine Months Ended September 29, 2017 Grant-date stock price $ 24.30 Expected volatility 28.6 % Risk-free interest rate 1.44 % Expected annual dividend yield — Weighted average fair value $ 33.31
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 29, 2017: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2016 635 $ 13.97 Granted 242 $ 25.04 Vested (206 ) $ 14.09 Forfeited (25 ) $ 16.33 Unvested at September 29, 2017 646 $ 17.99 Expected to vest as of September 29, 2017 616
Performance-Based Awards Issued and Outstanding	The table below summarizes the activities relating to the performance-based awards issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 29, 2017: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2016 29 $ 14.13 Granted 60 $ 28.80 Vested — $ — Forfeited — $ — Unvested at September 29, 2017 89 $ 24.00

Restructuring, Acquisition an31

Restructuring, Acquisition and Divestiture Related Costs (Tables)	9 Months Ended
	Sep. 29, 2017
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 Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 2016 restructuring $ — $ (1,621 ) $ 186 $ 2,955 2011 restructuring — — 14 108 Total restructuring and divestiture charges — (1,621 ) 200 3,063 Acquisition and related charges 3,834 786 6,032 2,765 Total restructuring, acquisition and divestiture related costs (gain) $ 3,834 $ (835 ) $ 6,232 $ 5,828
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 Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Photonics $ — $ 45 $ — $ 813 Vision — (1,728 ) 185 1,730 Precision Motion — — — 106 Unallocated Corporate and Shared Services — 62 1 306 Total $ — $ (1,621 ) $ 186 $ 2,955
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, 2016 $ 1,736 $ 611 $ 1,111 $ — $ 14 Restructuring charges 200 185 — — 15 Cash payments (1,068 ) (652 ) (399 ) — (17 ) Non-cash write-offs and other adjustments (62 ) (65 ) 11 — (8 ) Balance at September 29, 2017 $ 806 $ 79 $ 723 $ — $ 4

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 29, 2017
Commitments And Contingencies Disclosure [Abstract]
Future Minimum Lease Payments under Existing Operating and Capital Leases	Future minimum lease payments under the existing operating and capital leases for WOM are as follows (in thousands): Year Ending December 31, Operating Lease Capital Lease (1) 2017 (remainder of year) $ 573 $ 40 2018 2,250 130 2019 2,150 90 2020 2,128 75 2021 2,005 — Thereafter 7,207 — Total minimum lease payments $ 16,313 $ 335 (1) Capital lease payments include interest payments of less than $0.1 million.

Redeemable Noncontrolling Int33

Redeemable Noncontrolling Interest (Tables)	9 Months Ended
	Sep. 29, 2017
Noncontrolling Interest [Abstract]
Schedule of Reconciliation of Changes in Noncontrolling Interest	The following table presents the reconciliation of changes in the Company’s noncontrolling interest (in thousands): Redeemable noncontrolling interests Balance as of December 31, 2016 $ — Acquisition of noncontrolling interest 21,582 Net income attributable to noncontrolling interest 1,444 Adjustment of redeemable noncontrolling interest to estimated redemption value (1) 11,303 Foreign currency translation 2,509 Balance as of September 29, 2017 $ 36,838 (1) Adjustment of the carrying value of redeemable noncontrolling interest to the estimated redemption value was recognized in retained earnings instead of the consolidated statement of operations but was included in the computation of earnings per share attributable to Novanta Inc. (see Note 5.)

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 29, 2017
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 Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Revenue Photonics $ 61,882 $ 43,425 $ 170,503 $ 129,907 Vision 58,150 31,601 124,943 88,768 Precision Motion 26,264 22,803 78,926 67,204 Total $ 146,296 $ 97,829 $ 374,372 $ 285,879 Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Gross Profit Photonics $ 28,966 $ 18,603 $ 77,423 $ 57,461 Vision 19,792 12,343 47,378 32,446 Precision Motion 10,291 10,592 34,558 30,757 Unallocated Corporate and Shared Services (342 ) (326 ) (1,069 ) (1,064 ) Total $ 58,707 $ 41,212 $ 158,290 $ 119,600 Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Gross Profit Margin Photonics 46.8 % 42.8 % 45.4 % 44.2 % Vision 34.0 % 39.1 % 37.9 % 36.6 % Precision Motion 39.2 % 46.5 % 43.8 % 45.8 % Total 40.1 % 42.1 % 42.3 % 41.8 % Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Operating Income (Loss) from Continuing Operations Photonics $ 15,233 $ 8,185 $ 35,746 $ 24,704 Vision 846 2,307 4,893 (4,164 ) Precision Motion 5,493 6,195 20,238 16,608 Unallocated Corporate and Shared Services (9,299 ) (5,639 ) (22,776 ) (15,915 ) Total $ 12,273 $ 11,048 $ 38,101 $ 21,233 Three Nine Months Ended September 29, September 30, September 29, September 30, 2017 2016 2017 2016 Depreciation and Amortization Photonics $ 3,666 $ 1,820 $ 10,693 $ 5,123 Vision 4,362 2,460 9,276 7,861 Precision Motion 588 603 1,746 1,845 Unallocated Corporate and Shared Services 248 281 725 1,104 Total $ 8,864 $ 5,164 $ 22,440 $ 15,933

Basis of Presentation - Additio

Basis of Presentation - Additional information (Details) - USD ($) $ in Millions	Jan. 10, 2017	Sep. 29, 2017	Dec. 31, 2016
ASU 2016-15
Basis Of Presentation [Line Items]
Payments of contingent considerations		$ (2.5)
Laser Quantum
Basis Of Presentation [Line Items]
Equity method investment ownership percentage on Laser Quantum	76.00%		41.00%
Percentage of additional shares acquired	35.00%	35.00%

Business Combinations - Additio

Business Combinations - Additional Information (Details) € in Millions, £ in Millions	Jul. 03, 2017USD ($)	Jul. 03, 2017EUR (€)	Jan. 10, 2017USD ($)	Jan. 10, 2017GBP (£)	Sep. 29, 2017USD ($)	Jul. 03, 2017EUR (€)	Dec. 31, 2016USD ($)
Business Acquisition [Line Items]
Goodwill					$ 207,720,000		$ 108,128,000
Pre-tax gain on excess fair value of equity interest held					26,409,000
World of Medicine GmbH
Business Acquisition [Line Items]
Percentage of shares acquired	100.00%					100.00%
Total purchase price	$ 134,934,000					€ 118.1
Intangible assets	59,732,000
Goodwill	53,775,000
Goodwill assets expected to be deductible for tax purposes	0
Revenues					24,800,000
Income (loss) from continuing operations before income taxes					(1,600,000)
Amortization of inventory fair value adjustments and purchased intangible assets, included in operating income (loss)					$ 4,900,000
World of Medicine GmbH | Maximum
Business Acquisition [Line Items]
Estimated fair value measurement period from acquisition date					1 year
World of Medicine GmbH | Revolving Credit Facility
Business Acquisition [Line Items]
Amount draw-down to finance acquisition	$ 134,700,000	€ 118
Thing Magic
Business Acquisition [Line Items]
Total purchase price			$ 19,089,000
Intangible assets			7,423,000
Goodwill			9,929,000
Revenues					$ 6,500,000
Income (loss) from continuing operations before income taxes					100,000
Amortization of inventory fair value adjustments and purchased intangible assets, included in operating income (loss)					$ 1,200,000
Thing Magic | Maximum
Business Acquisition [Line Items]
Estimated fair value measurement period from acquisition date					1 year
Thing Magic | Revolving Credit Facility
Business Acquisition [Line Items]
Amount draw-down to finance acquisition			$ 12,000,000
Laser Quantum
Business Acquisition [Line Items]
Percentage of shares acquired			35.00%
Total purchase price			$ 87,271,000
Intangible assets			38,955,000
Goodwill			31,041,000
Goodwill assets expected to be deductible for tax purposes			0
Revenues					$ 32,300,000
Income (loss) from continuing operations before income taxes					7,000,000
Amortization of inventory fair value adjustments and purchased intangible assets, included in operating income (loss)					$ 5,800,000
Total purchase price paid by Novanta			$ 31,052,000	£ 25.5
Percentage of equity interest held before acquisition			41.00%				41.00%
Percentage of equity interest held after acquisition			76.00%
Option to purchase and sell remaining shareholders shares, year					2,020
Pre-tax gain on excess fair value of equity interest held					$ 26,409,000
Equity method investment ownership percentage on Laser Quantum			41.00%	41.00%
Non controlling interest held by remaining shareholders			24.00%
Laser Quantum | Maximum
Business Acquisition [Line Items]
Estimated fair value measurement period from acquisition date					1 year
Laser Quantum | Revolving Credit Facility
Business Acquisition [Line Items]
Amount draw-down to finance acquisition			$ 30,000,000

Summary of Fair Values of Asset

Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation (Details) $ in Thousands, € in Millions, £ in Millions	Jul. 03, 2017USD ($)	Jan. 10, 2017USD ($)	Jan. 10, 2017GBP (£)	Sep. 29, 2017USD ($)	Jul. 03, 2017EUR (€)	Jan. 10, 2017GBP (£)	Dec. 31, 2016USD ($)
Business Acquisition [Line Items]
Goodwill				$ 207,720			$ 108,128
World of Medicine GmbH
Business Acquisition [Line Items]
Cash	$ 1,400
Accounts receivable	11,807
Inventories	14,549
Property and equipment	21,940
Intangible assets	59,732
Goodwill	53,775
Other assets	2,660
Total assets acquired	165,863
Accounts payable	4,398
Other liabilities	8,276
Deferred tax liabilities	18,255
Total liabilities assumed	30,929
Total assets acquired, net of liabilities assumed	134,934				€ 118.1
Less: cash acquired	1,400
Total purchase price, net of cash acquired	$ 133,534
Thing Magic
Business Acquisition [Line Items]
Inventories		$ 1,832
Intangible assets		7,423
Goodwill		9,929
Total assets acquired		19,184
Other liabilities		95
Total liabilities assumed		95
Total assets acquired, net of liabilities assumed		19,089
Laser Quantum
Business Acquisition [Line Items]
Cash		15,343
Accounts receivable		2,739
Inventories		6,264
Property and equipment		2,286
Intangible assets		38,955
Goodwill		31,041
Other assets		717
Total assets acquired		97,345
Accounts payable		796
Other liabilities		2,068
Deferred tax liabilities		7,210
Total liabilities assumed		10,074
Total assets acquired, net of liabilities assumed		87,271
Less: fair value of equity interest previously held by Novanta		34,637
Less: fair value of noncontrolling interest		21,582				£ 17.7
Total purchase price paid by Novanta		31,052	£ 25.5
Less: cash acquired		15,343
Total purchase price, net of cash acquired		$ 15,709

Fair Value of Intangible Assets

Fair Value of Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 03, 2017	Jan. 10, 2017
World of Medicine GmbH
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets	$ 59,732
Thing Magic
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets		$ 7,423
Laser Quantum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets		38,955
Developed Technologies | World of Medicine GmbH
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets	$ 21,586
Amortization Period of intangible assets	10 years
Developed Technologies | Thing Magic
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets		$ 4,600
Amortization Period of intangible assets		10 years
Developed Technologies | Laser Quantum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets		$ 15,501
Amortization Period of intangible assets		15 years
Customer Relationships | World of Medicine GmbH
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets	$ 34,949
Amortization Period of intangible assets	12 years
Customer Relationships | Thing Magic
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets		$ 2,520
Amortization Period of intangible assets		10 years
Customer Relationships | Laser Quantum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets		$ 19,990
Amortization Period of intangible assets		15 years
Trademarks and Trade Names | World of Medicine GmbH
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets	$ 2,284
Amortization Period of intangible assets	10 years
Trademarks and Trade Names | Thing Magic
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets		$ 303
Amortization Period of intangible assets		5 years
Trademarks and Trade Names | Laser Quantum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets		$ 1,964
Amortization Period of intangible assets		15 years
Backlog | World of Medicine GmbH
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets	$ 913
Amortization Period of intangible assets	1 year
Backlog | Laser Quantum
Acquired Finite Lived Intangible Assets [Line Items]
Intangible assets		$ 1,500
Amortization Period of intangible assets		9 months

Summary of Pro Forma Financial

Summary of Pro Forma Financial Information (Details) - World of Medicine GmbH and Laser Quantum - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Business Acquisition [Line Items]
Revenue	$ 146,296	$ 124,925	$ 415,900	$ 361,701
Income from continuing operations	$ 12,727	$ 8,241	$ 32,038	$ 12,804
Earnings per common share attributable to Novanta Inc. - Basic	$ 0.12	$ 0.24	$ 0.55	$ 0.36
Earnings per common share attributable to Novanta Inc. - Diluted	$ 0.12	$ 0.24	$ 0.55	$ 0.36

Summary of Acquisition Related

Summary of Acquisition Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Business Acquisition [Line Items]
Acquisition costs	$ 3,834	$ 786	$ 6,032	$ 2,765
Thing Magic
Business Acquisition [Line Items]
Acquisition costs			149
Laser Quantum
Business Acquisition [Line Items]
Acquisition costs			264
World of Medicine GmbH
Business Acquisition [Line Items]
Acquisition costs	$ 3,359		$ 4,351

Discontinued Operations and D41

Discontinued Operations and Divestitures - Additional Information (Details) - Scientific Lasers Business - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Jul. 31, 2014	Sep. 29, 2017
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Proceeds from sale of business, net of transaction costs	$ 6.5
Sale proceeds held in escrow	$ 1.5
Sale proceeds held in escrow, period		2016-01

Accumulated Other Comprehensi42

Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands	9 Months Ended
	Sep. 29, 2017USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ 258,870
Other comprehensive income (loss)	7,509
Amounts reclassified from other comprehensive income (loss)	874	[1]
Ending Balance	309,147
Total accumulated other Foreign currency comprehensive translation Pension income (loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(27,715)
Ending Balance	(19,332)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(17,222)
Other comprehensive income (loss)	8,340
Ending Balance	(8,882)
Pension liabilities
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(10,493)
Other comprehensive income (loss)	(831)
Amounts reclassified from other comprehensive income (loss)	874	[1]
Ending Balance	$ (10,450)
[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 (Loss) per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017		Sep. 30, 2016
Numerators:
Income from continuing operations		$ 8,366	$ 7,470	$ 52,630		$ 14,247
Less: Net income attributable to noncontrolling interest		(834)		(1,444)
Net income attributable to Novanta Inc.		7,532	7,470	51,186		14,247
Less: Adjustment of redeemable noncontrolling interest to estimated redemption value (see Note 14)		(7,585)		(11,303)	[1]
Net income (loss) attributable to Novanta Inc. after adjustment of redeemable noncontrolling interest to estimated redemption value		$ (53)	$ 7,470	$ 39,883		$ 14,247
Denominators:
Weighted average common shares outstanding—basic		34,833	34,677	34,809		34,689
Dilutive potential common shares	[2]		251	426		200
Weighted average common shares outstanding— diluted		34,833	34,928	35,235		34,889
Antidilutive common shares excluded from above			144			112
Basic Earnings (Loss) per Common Share:
Basic earnings (loss) per common share attributable to Novanta Inc.		$ 0	$ 0.22	$ 1.15		$ 0.41
Diluted Earnings (Loss) per Common Share:
Diluted earnings (loss) per common share attributable to Novanta Inc.		$ 0	$ 0.21	$ 1.13		$ 0.41
[1]	Adjustment of the carrying value of redeemable noncontrolling interest to the estimated redemption value was recognized in retained earnings instead of the consolidated statement of operations but was included in the computation of earnings per share attributable to Novanta Inc. (see Note 5.)
[2]	Due to the Company’s net loss position after adjustment of redeemable noncontrolling interest to estimated redemption value for the three months ended September 29, 2017, all potentially dilutive shares are excluded from the calculation of the denominator as their effect would have been anti-dilutive.

Earnings (Loss) per Common Sh44

Earnings (Loss) per Common Share - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Computation Of Earnings Per Share Line Items
Repurchase of common stock	$ 370	$ 1,634
Common Stock Repurchase Plan
Computation Of Earnings Per Share Line Items
Shares repurchased	14
Repurchase of common stock	$ 400
Shares repurchased, average cost per share	$ 26.41

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 29, 2017USD ($)	Mar. 31, 2017USD ($)	Sep. 29, 2017USD ($)Installment	Dec. 31, 2016USD ($)	Dec. 18, 2015USD ($)	Nov. 11, 2015USD ($)	Feb. 19, 2015USD ($)
Skyetek Inc.
Business Acquisition Contingent Consideration [Line Items]
Business combination, date of agreement			Dec. 18, 2015
Name of acquired entity			Skyetek Inc
Undiscounted range of outcomes, minimum					$ 0
Undiscounted range of outcomes, maximum					300,000
Estimated fair value of contingent consideration					$ 200,000
Payments of contingent consideration	$ 100,000
Lincoln Laser Company
Business Acquisition Contingent Consideration [Line Items]
Business combination, date of agreement			Nov. 11, 2015
Name of acquired entity			Lincoln Laser Company
Estimated fair value of contingent consideration				$ 1,400,000		$ 2,300,000
Payments of contingent consideration		$ 1,400,000
Applimotion Inc.
Business Acquisition Contingent Consideration [Line Items]
Business combination, date of agreement			Feb. 19, 2015
Name of acquired entity			Applimotion Inc
Undiscounted range of outcomes, minimum							$ 0
Undiscounted range of outcomes, maximum							4,000,000
Estimated fair value of contingent consideration	$ 2,800,000		$ 2,800,000	$ 3,600,000			$ 1,000,000
Payments of contingent consideration		$ 1,200,000
Number of contingent consideration installments | Installment			2

Fair Values of Financial Assets

Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 31, 2016
Assets
Cash equivalents	$ 3,141	$ 9,569
Liabilities
Contingent consideration - Current	2,800	2,775
Contingent consideration - Long-term		2,381
Liabilities, fair value	2,800	5,156
Fair Value, Inputs, Level 1
Assets
Cash equivalents	3,141	9,569
Fair Value, Inputs, Level 3
Liabilities
Contingent consideration - Current	2,800	2,775
Contingent consideration - Long-term		2,381
Liabilities, fair value	$ 2,800	$ 5,156

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 29, 2017	Mar. 31, 2017	Sep. 29, 2017
Applimotion Inc.
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Payments of contingent consideration			$ (1,200)
Lincoln Laser Company
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Payments of contingent consideration			(1,400)
Skyetek Inc.
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Payments of contingent consideration		$ (100)
Fair Value, Inputs, Level 3
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance			$ 5,156	$ 5,156
Fair value adjustments	[1]			425
Ending balance		$ 2,800		2,800
Fair Value, Inputs, Level 3 | Applimotion Inc.
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Payments of contingent consideration				(1,200)
Fair Value, Inputs, Level 3 | Lincoln Laser Company
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Payments of contingent consideration				(1,433)
Fair Value, Inputs, Level 3 | Skyetek Inc.
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Payments of contingent consideration				$ (148)
[1]	In the nine months ended September 29, 2017, the fair value of the contingent consideration in connection with the acquisition of Applimotion was increased by $0.4 million due to increased actual and projected revenue performance.

Fair Value Measurements - Sum48

Fair Value Measurements - Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Parenthetical) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Contingent consideration adjustments	$ 425	$ 1,427
Applimotion Inc.
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Contingent consideration adjustments	$ 400

Goodwill and Intangible Asset49

Goodwill and Intangible Assets - Additional Information (Details)	3 Months Ended
	Jun. 30, 2017USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment of goodwill and intangible assets	$ 0

Summary of Changes in Goodwill

Summary of Changes in Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 29, 2017USD ($)
Goodwill [Line Items]
Balance at beginning of the period	$ 108,128
Effect of foreign exchange rate changes	4,847
Balance at end of the period	207,720
Laser Quantum
Goodwill [Line Items]
Goodwill acquired	31,041
Thing Magic
Goodwill [Line Items]
Goodwill acquired	9,929
World of Medicine GmbH
Goodwill [Line Items]
Goodwill acquired	$ 53,775

Goodwill By Reportable Segment

Goodwill By Reportable Segment (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 31, 2016
Goodwill [Line Items]
Goodwill	$ 358,949	$ 259,357
Accumulated impairment of goodwill	(151,229)	(151,229)
Total	207,720	108,128
Photonics
Goodwill [Line Items]
Goodwill	170,450	136,278
Accumulated impairment of goodwill	(102,461)	(102,461)
Total	67,989	33,817
Vision
Goodwill [Line Items]
Goodwill	154,536	89,116
Accumulated impairment of goodwill	(31,722)	(31,722)
Total	122,814	57,394
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. 29, 2017	Dec. 31, 2016
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	$ 280,744	$ 168,141
Amortizable intangible assets, accumulated amortization	(135,833)	(119,425)
Amortizable intangible assets, net carrying amount	144,911	48,716
Non-amortizable intangible assets	13,027	13,027
Gross carrying amount	293,771	181,168
Net carrying amount	157,938	61,743
Patents and Developed Technologies
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	129,059	84,742
Amortizable intangible assets, accumulated amortization	(74,456)	(67,902)
Amortizable intangible assets, net carrying amount	54,603	16,840
Customer Relationships
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	130,311	69,554
Amortizable intangible assets, accumulated amortization	(49,765)	(42,934)
Amortizable intangible assets, net carrying amount	80,546	26,620
Customer Backlog
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	3,216	622
Amortizable intangible assets, accumulated amortization	(2,273)	(540)
Amortizable intangible assets, net carrying amount	943	82
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	(1,821)	(1,419)
Amortizable intangible assets, net carrying amount	693	1,095
Trademarks and Trade Names
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	15,644	10,709
Amortizable intangible assets, accumulated amortization	(7,518)	(6,630)
Amortizable intangible assets, net carrying amount	$ 8,126	$ 4,079

Amortization Expense of Intangi

Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense – cost of revenue	$ 2,741	$ 994	$ 6,078	$ 3,163
Amortization expense – operating expenses	3,217	2,066	9,413	6,153
Total amortization expense	$ 5,958	$ 3,060	$ 15,491	$ 9,316

Estimated Amortization Expense

Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
2017 (remainder of year)	$ 5,452
2,018	25,922
2,019	23,099
2,020	19,507
2,021	17,411
Thereafter	53,520
Amortizable intangible assets, net carrying amount	144,911	$ 48,716
Cost of Revenue
Finite Lived Intangible Assets [Line Items]
2017 (remainder of year)	2,755
2,018	9,331
2,019	8,474
2,020	7,585
2,021	6,703
Thereafter	19,755
Amortizable intangible assets, net carrying amount	54,603
Operating Expenses
Finite Lived Intangible Assets [Line Items]
2017 (remainder of year)	2,697
2,018	16,591
2,019	14,625
2,020	11,922
2,021	10,708
Thereafter	33,765
Amortizable intangible assets, net carrying amount	$ 90,308

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 55,418	$ 39,822
Work-in-process	13,272	8,012
Finished goods	16,634	9,511
Demo and consigned inventory	3,537	2,400
Total inventories	$ 88,861	$ 59,745

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Accrued compensation and benefits	$ 16,631	$ 9,647
Accrued warranty	4,773	3,142	$ 3,300	$ 3,335
Accrued restructuring	575	1,371
Accrued professional services	1,854	1,237
Accrued contingent considerations	2,800	2,775
Customer deposits	3,294	1,164
Other	11,013	7,612
Total	$ 40,940	$ 26,948

Accrued Warranty (Details)

Accrued Warranty (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Product Warranties Disclosures [Abstract]
Balance at beginning of the period	$ 3,142	$ 3,335
Provision charged to cost of revenue	2,084	1,050
Acquisition related warranty accrual	1,307
Use of provision	(1,818)	(1,060)
Foreign currency exchange rate changes	58	(25)
Balance at end of period	$ 4,773	$ 3,300

Summary of Other Long Term Liab

Summary of Other Long Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 31, 2016
Other Liabilities Noncurrent [Abstract]
Capital lease obligations	$ 7,794	$ 8,111
Accrued pension liabilities	5,256	5,957
Accrued contingent considerations		2,381
Other	2,018	2,264
Total	$ 15,068	$ 18,713

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Aug. 31, 2017	Jul. 28, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total current portion of long-term debt	$ 9,115			$ 7,366
Total long-term debt	234,188			70,554
Third Amendment
Debt Instrument [Line Items]
Total current portion of long-term debt	9,115
Total long-term debt	234,188
Total Senior Credit Facilities	243,303
Second Amendment
Debt Instrument [Line Items]
Total current portion of long-term debt				7,366
Total long-term debt				70,554
Total Senior Credit Facilities				77,920
Term Loans | Third Amendment
Debt Instrument [Line Items]
Current portion of long-term debt, Gross	9,200
Long-term debt, Gross	81,425
Total Senior Credit Facilities		$ 90,600
Term Loans | Second Amendment
Debt Instrument [Line Items]
Current portion of long-term debt, Gross				7,500
Long-term debt, Gross				63,750
Total Senior Credit Facilities			$ 65,600
Term Loan And Revolving Credit Facility | Third Amendment
Debt Instrument [Line Items]
Less: unamortized debt issuance costs	(85)
Less: unamortized debt issuance costs	(3,306)
Term Loan And Revolving Credit Facility | Second Amendment
Debt Instrument [Line Items]
Less: unamortized debt issuance costs				(134)
Less: unamortized debt issuance costs				(3,196)
Revolving Credit Facility | Third Amendment
Debt Instrument [Line Items]
Long-term debt, Gross	$ 156,069
Revolving Credit Facility | Second Amendment
Debt Instrument [Line Items]
Long-term debt, Gross				$ 10,000

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	1 Months Ended	9 Months Ended
	Aug. 31, 2017	Sep. 29, 2017	Jul. 28, 2017	Dec. 31, 2016	May 19, 2016
Second Amendment
Debt Instrument [Line Items]
Long-term debt including current maturities				$ 77,920,000
Second Amendment | Term Loans
Debt Instrument [Line Items]
Long-term debt including current maturities			$ 65,600,000
Current portion of long-term debt				$ 7,500,000
Second Amendment | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 225,000,000
Third Amendment
Debt Instrument [Line Items]
Long-term debt including current maturities		$ 243,303,000
Debt instrument, frequency of periodic payment		quarterly
Quarterly installments payable on term loan	$ 2,300,000
Debt instrument, final installment amount	56,100,000
Revolving credit facility maturity year		2021-05
Debt financing costs	700,000
Third Amendment | Term Loans
Debt Instrument [Line Items]
Long-term debt including current maturities	90,600,000
Current portion of long-term debt		$ 9,200,000
Third Amendment | Revolving Credit Facility
Debt Instrument [Line Items]
Increases the revolving credit facility	100,000,000
Maximum borrowing capacity	325,000,000
Line of credit facility accordion feature	$ 125,000,000

Share-based Compensation - Shar

Share-based Compensation - 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. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,436	$ 988	$ 4,223	$ 3,385
Selling, general and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	1,336	914	3,911	3,112
Research and development and engineering
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	59	18	156	82
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 41	$ 56	$ 156	$ 191

Share-based Compensation - Addi

Share-based Compensation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense recognized	$ 1,436	$ 988	$ 4,223	$ 3,385
Selling, General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense recognized	$ 1,336	$ 914	3,911	3,112
Deferred Stock Units | Selling, General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense recognized			$ 500	$ 500
Service-based Restricted Stock Units (RSUs) | 2010 Incentive Award Plan | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
Service-based Restricted Stock Units (RSUs) | 2010 Incentive Award Plan | Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			4 years
Service-based Restricted Stock Units (RSUs) | 2010 Incentive Award Plan | Tranche Three
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			5 years
Service-based Restricted Deferred Stock Units | 2010 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total fair value of RSUs and DSUs vested			$ 5,200
EPS Performance-based Restricted Stock Units | 2010 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
EPS Performance-based Restricted Stock Units | 2010 Incentive Award Plan | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Range of percentage of shares to be issued upon settlement following vesting of target number of shares			0.00%
EPS Performance-based Restricted Stock Units | 2010 Incentive Award Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Range of percentage of shares to be issued upon settlement following vesting of target number of shares			200.00%
TSR Performance-based Restricted Stock Units | 2010 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
TSR Performance-based Restricted Stock Units | 2010 Incentive Award Plan | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Range of percentage of shares to be issued upon settlement following vesting of target number of shares			0.00%
TSR Performance-based Restricted Stock Units | 2010 Incentive Award Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Range of percentage of shares to be issued upon settlement following vesting of target number of shares			200.00%
Stock Options | 2010 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options, Granted			0

Share-based Compensation - Rest

Share-based Compensation - Restricted Stock Units Issued and Outstanding (Details) - 2010 Incentive Award Plan - Service-based Restricted Stock Units (RSUs) shares in Thousands	9 Months Ended
	Sep. 29, 2017$ / sharesshares
Restricted Stock Units
Unvested, Beginning Balance	635
Granted	242
Vested	(206)
Forfeited	(25)
Unvested, Ending Balance	646
Expected to vest at end of period	616
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 13.97
Granted | $ / shares	25.04
Vested | $ / shares	14.09
Forfeited | $ / shares	16.33
Unvested, Ending Balance | $ / shares	$ 17.99

Share-based Compensation - Perf

Share-based Compensation - Performance-Based Awards Issued and Outstanding (Details) - 2010 Incentive Award Plan - Performance-based Awards shares in Thousands	9 Months Ended
	Sep. 29, 2017$ / sharesshares
Performance-based Awards
Unvested, Beginning Balance | shares	29
Granted | shares	60
Unvested, Ending Balance | shares	89
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 14.13
Granted | $ / shares	28.80
Unvested, Ending Balance | $ / shares	$ 24

Share-based Compensation - Fair

Share-based Compensation - Fair Value of TSR Performance-Based Restricted Stock Units Estimated Using Monte-Carol Valuation Model (Details) - TSR Performance-based Restricted Stock Units	9 Months Ended
	Sep. 29, 2017$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant-date stock price	$ 24.30
Expected volatility	28.60%
Risk-free interest rate	1.44%
Expected annual dividend yield	0.00%
Weighted average fair value	$ 33.31

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016	Jan. 10, 2017
Income Taxes [Line Items]
Effective tax rate on income from operations	11.90%	31.10%	11.60%	30.30%
Gain on acquisition of business			$ 26,409
Deferred tax liability write off	$ 1,500		$ 1,500
Favorable impact on effective tax rate, write off percentage			13.70%
Tax free cash dividend received				$ 2,300
Favorable impact on effective tax rate, percentage				1.90%
Laser Quantum
Income Taxes [Line Items]
Percentage of additional shares acquired	35.00%		35.00%		35.00%
Canada Revenue Agency | CANADA
Income Taxes [Line Items]
Statutory tax rate	29.00%	28.50%	29.00%	28.50%

Schedule of Restructuring, Acqu

Schedule of Restructuring, Acquisition and Divestiture Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Restructuring Cost And Reserve [Line Items]
Total restructuring and divestiture charges		$ (1,621)	$ 200	$ 3,063
Acquisition and related charges	$ 3,834	786	6,032	2,765
Total restructuring, acquisition and divestiture related costs (gain)	$ 3,834	(835)	6,232	5,828
2016 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring and divestiture charges		$ (1,621)	186	2,955
2011 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring and divestiture charges			$ 14	$ 108

Restructuring, Acquisition an68

Restructuring, Acquisition and Divestiture Related Costs - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs			$ (1,621)	$ 200	$ 3,063
Proceeds from the sale of property, plant and equipment				44	7,037
Acquisition and related charges		$ 3,834	786	$ 6,032	2,765
2016 Restructuring
Restructuring and Acquisition Related Costs [Line Items]
Restructuring plan				During the third quarter of 2015, the Company initiated the 2016 restructuring program, which included consolidating certain of its manufacturing operations to optimize its facility footprint and better utilize resources, costs associated with discontinuing its radiology product line and reducing redundant costs due to productivity cost savings and business volume reductions. The Company substantially completed the 2016 restructuring program during the second quarter of 2016. As of September 29, 2017, the Company incurred cumulative costs related to this restructuring plan totaling $6.4 million. The Company expects to incur additional restructuring charges of $0.2 million to $0.3 million related to the 2016 restructuring plan.
Restructuring Costs			$ (1,621)	$ 186	2,955
2016 Restructuring | Cumulative Restructuring Costs
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs				6,400
2016 Restructuring | Minimum | Additional Restructuring Costs
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs				200
2016 Restructuring | Maximum | Additional Restructuring Costs
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs				$ 300
2011 Restructuring
Restructuring and Acquisition 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 Systems and Laser Systems businesses. The Company substantially completed the 2011 restructuring program by the end of 2013. In March 2016, the Company sold its previously exited Laser Systems facility located in Orlando, Florida for cash at the net carrying value of $3.5 million. In December 2016, the lease agreement for the Company’s previously exited laser scanner business facility was terminated.
Restructuring Costs				$ 14	$ 108
2011 Restructuring | Orlando Facility
Restructuring and Acquisition 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	Sep. 29, 2017	Sep. 30, 2016
Restructuring Cost And Reserve [Line Items]
Restructuring Costs	$ (1,621)	$ 200	$ 3,063
2016 Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring Costs	(1,621)	186	2,955
2016 Restructuring | Photonics
Restructuring Cost And Reserve [Line Items]
Restructuring Costs	45		813
2016 Restructuring | Vision
Restructuring Cost And Reserve [Line Items]
Restructuring Costs	(1,728)	185	1,730
2016 Restructuring | Precision Motion
Restructuring Cost And Reserve [Line Items]
Restructuring Costs			106
2016 Restructuring | Unallocated Corporate and Shared Services
Restructuring Cost And Reserve [Line Items]
Restructuring Costs	$ 62	$ 1	$ 306

Summary of Accrual Activities b

Summary of Accrual Activities by Components Related to Company's Restructuring Charges (Details) $ in Thousands	9 Months Ended
	Sep. 29, 2017USD ($)
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	$ 1,736
Restructuring charges	200
Cash payments	(1,068)
Non-cash write-offs and other adjustments	(62)
Accrued expense ending balance	806
Severance
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	611
Restructuring charges	185
Cash payments	(652)
Non-cash write-offs and other adjustments	(65)
Accrued expense ending balance	79
Facility
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	1,111
Cash payments	(399)
Non-cash write-offs and other adjustments	11
Accrued expense ending balance	723
Other Restructuring Charges
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	14
Restructuring charges	15
Cash payments	(17)
Non-cash write-offs and other adjustments	(8)
Accrued expense ending balance	$ 4

Future Minimum Lease Payments u

Future Minimum Lease Payments under Existing Operating and Capital Leases (Details) - World of Medicine GmbH $ in Thousands	Sep. 29, 2017USD ($)
Operating Leases
2017 (remainder of year)	$ 573
2,018	2,250
2,019	2,150
2,020	2,128
2,021	2,005
Thereafter	7,207
Total minimum lease payments	16,313
Capital Leases
2017 (remainder of year)	40	[1]
2,018	130	[1]
2,019	90	[1]
2,020	75	[1]
Total minimum lease payments	$ 335	[1]
[1]	Capital lease payments include interest payments of less than $0.1 million

Future Minimum Lease Payments72

Future Minimum Lease Payments under Existing Operating and Capital Leases (Parenthetical) (Details) $ in Millions	Sep. 29, 2017USD ($)
World of Medicine GmbH | Maximum
Commitments And Contingencies Disclosure [Line Items]
Capital lease payments interest included in payment	$ 0.1

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - World of Medicine GmbH $ in Millions	Sep. 29, 2017USD ($)
Commitments And Contingencies Disclosure [Line Items]
Unconditional purchase commitments	$ 20.5
Unconditional purchase commitments, remainder of 2017	13.3
Unconditional purchase commitments, 2018	$ 7.2

Redeemable Noncontrolling Int74

Redeemable Noncontrolling Interest- Additional Information (Details) $ in Thousands, £ in Millions	3 Months Ended	9 Months Ended
	Sep. 29, 2017USD ($)	Sep. 29, 2017USD ($)	[1]	Jan. 10, 2017USD ($)	Jan. 10, 2017GBP (£)	Dec. 31, 2016
Minority Interest [Line Items]
Adjustment of redeemable noncontrolling interest to estimated redemption value	$ 7,585	$ 11,303
Laser Quantum
Minority Interest [Line Items]
Percentage of equity interest held before acquisition				41.00%	41.00%	41.00%
Percentage of equity interest held after acquisition				76.00%	76.00%
Initial fair value of noncontrolling interest				$ 21,582	£ 17.7
[1]	Adjustment of the carrying value of redeemable noncontrolling interest to the estimated redemption value was recognized in retained earnings instead of the consolidated statement of operations but was included in the computation of earnings per share attributable to Novanta Inc. (see Note 5.)

Redeemable Noncontrolling Int75

Redeemable Noncontrolling Interest- Schedule of Reconciliation of Changes in Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 29, 2017	Sep. 29, 2017
Noncontrolling Interest [Abstract]
Acquisition of noncontrolling interest		$ 21,582
Net income attributable to noncontrolling interest	$ 834	1,444
Adjustment of redeemable noncontrolling interest to estimated redemption value	7,585	11,303	[1]
Foreign currency translation		2,509
Balance as of September 29, 2017	$ 36,838	$ 36,838
[1]	Adjustment of the carrying value of redeemable noncontrolling interest to the estimated redemption value was recognized in retained earnings instead of the consolidated statement of operations but was included in the computation of earnings per share attributable to Novanta Inc. (see Note 5.)

Segment Information - Additiona

Segment Information - Additional Information (Details)	9 Months Ended
	Sep. 29, 2017Segment
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. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 146,296	$ 97,829	$ 374,372	$ 285,879
Gross Profit	$ 58,707	$ 41,212	$ 158,290	$ 119,600
Gross profit margin percentage	40.10%	42.10%	42.30%	41.80%
Operating Income (Loss) from Continuing Operations	$ 12,273	$ 11,048	$ 38,101	$ 21,233
Photonics
Segment Reporting Information [Line Items]
Revenue	61,882	43,425	170,503	129,907
Gross Profit	$ 28,966	$ 18,603	$ 77,423	$ 57,461
Gross profit margin percentage	46.80%	42.80%	45.40%	44.20%
Operating Income (Loss) from Continuing Operations	$ 15,233	$ 8,185	$ 35,746	$ 24,704
Vision
Segment Reporting Information [Line Items]
Revenue	58,150	31,601	124,943	88,768
Gross Profit	$ 19,792	$ 12,343	$ 47,378	$ 32,446
Gross profit margin percentage	34.00%	39.10%	37.90%	36.60%
Operating Income (Loss) from Continuing Operations	$ 846	$ 2,307	$ 4,893	$ (4,164)
Precision Motion
Segment Reporting Information [Line Items]
Revenue	26,264	22,803	78,926	67,204
Gross Profit	$ 10,291	$ 10,592	$ 34,558	$ 30,757
Gross profit margin percentage	39.20%	46.50%	43.80%	45.80%
Operating Income (Loss) from Continuing Operations	$ 5,493	$ 6,195	$ 20,238	$ 16,608
Unallocated Corporate and Shared Services
Segment Reporting Information [Line Items]
Gross Profit	(342)	(326)	(1,069)	(1,064)
Operating Income (Loss) from Continuing Operations	$ (9,299)	$ (5,639)	$ (22,776)	$ (15,915)

Depreciation and Amortization b

Depreciation and Amortization by Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Depreciation and Amortization
Depreciation and amortization	$ 8,864	$ 5,164	$ 22,440	$ 15,933
Photonics
Depreciation and Amortization
Depreciation and amortization	3,666	1,820	10,693	5,123
Vision
Depreciation and Amortization
Depreciation and amortization	4,362	2,460	9,276	7,861
Precision Motion
Depreciation and Amortization
Depreciation and amortization	588	603	1,746	1,845
Unallocated Corporate and Shared Services
Depreciation and Amortization
Depreciation and amortization	$ 248	$ 281	$ 725	$ 1,104