Novanta (NOVT) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 28, 2018	Nov. 02, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 28, 2018
Document Fiscal Year Focus	2,018
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		34,905,121

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 28, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 111,814	$ 100,057
Accounts receivable, net of allowance of $323 and $554, respectively	88,921	81,482
Inventories	98,917	91,278
Prepaid income taxes and income taxes receivable	3,995	4,387
Prepaid expenses and other current assets	9,527	10,675
Total current assets	313,174	287,879
Property, plant and equipment, net	66,204	61,718
Deferred tax assets	8,059	7,052
Other assets	1,579	4,018
Intangible assets, net	150,648	155,048
Goodwill	219,772	210,988
Total assets	759,436	726,703
Current liabilities
Current portion of long-term debt	9,131	9,119
Accounts payable	48,306	39,793
Income taxes payable	2,400	5,942
Accrued expenses and other current liabilities	48,665	43,314
Total current liabilities	108,502	98,168
Long-term debt	247,293	225,500
Deferred tax liabilities	24,920	25,672
Income taxes payable	4,313	3,754
Other liabilities	14,732	15,141
Total liabilities	399,760	368,235
Commitments and contingencies (Note 14)
Redeemable noncontrolling interest		46,923
Stockholders’ equity:
Common shares, no par value; Authorized shares: unlimited; Issued and outstanding: 34,916 and 34,595, respectively	423,856	423,856
Additional paid-in capital	45,940	33,309
Accumulated deficit	(90,736)	(127,740)
Accumulated other comprehensive loss	(19,384)	(17,880)
Total stockholders' equity	359,676	311,545
Total liabilities, noncontrolling interest and stockholders’ equity	$ 759,436	$ 726,703

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 28, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 323	$ 554
Common shares, Authorized	Unlimited	Unlimited
Common shares, no par value	$ 0	$ 0
Common shares, Issued	34,916	34,595
Common shares, outstanding	34,916	34,595

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Income Statement [Abstract]
Revenue	$ 160,794	$ 146,296	$ 458,159	$ 374,372
Cost of revenue	91,160	87,589	261,137	216,082
Gross profit	69,634	58,707	197,022	158,290
Operating expenses:
Research and development and engineering	13,204	11,659	37,744	29,878
Selling, general and administrative	29,147	27,590	87,598	74,274
Amortization of purchased intangible assets	3,947	3,217	11,538	9,413
Restructuring, acquisition and divestiture related costs	2,341	3,834	4,805	6,232
Total operating expenses	48,639	46,300	141,685	119,797
Operating income	20,995	12,407	55,337	38,493
Interest income (expense), net	(2,396)	(2,111)	(7,315)	(4,874)
Foreign exchange transaction gains (losses), net	66	(661)	(164)	(176)
Other income (expense), net	(44)	(138)	(131)	(288)
Gain on acquisition of business				26,409
Income before income taxes	18,621	9,497	47,727	59,564
Income tax provision	3,632	1,131	8,276	6,934
Consolidated net income	14,989	8,366	39,451	52,630
Less: Net income attributable to noncontrolling interest	(435)	(834)	(1,986)	(1,444)
Net income attributable to Novanta Inc.	$ 14,554	$ 7,532	$ 37,465	$ 51,186
Earnings (loss) per common share attributable to Novanta Inc. (Note 5):
Basic	$ 0.61	$ 0	$ 1.12	$ 1.15
Diluted	$ 0.60	$ 0	$ 1.11	$ 1.13
Weighted average common shares outstanding—basic	34,899	34,833	34,918	34,809
Weighted average common shares outstanding—diluted	35,485	34,833	35,469	35,235

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Statement Of Income And Comprehensive Income [Abstract]
Consolidated net income		$ 14,989	$ 8,366	$ 39,451	$ 52,630
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	[1]	(490)	3,311	(2,482)	8,340
Pension liability adjustments, net of tax	[2]	223	(45)	978	43
Total other comprehensive income		(267)	3,266	(1,504)	8,383
Total consolidated comprehensive income		14,722	11,632	37,947	61,013
Less: Comprehensive income attributable to noncontrolling interest		(435)	(834)	(1,986)	(1,444)
Comprehensive income attributable to Novanta Inc.		$ 14,287	$ 10,798	$ 35,961	$ 59,569
[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. 28, 2018	Sep. 29, 2017
Cash flows from operating activities:
Consolidated net income	$ 39,451	$ 52,630
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	27,386	22,440
Provision for inventory excess and obsolescence	1,765	1,837
Share-based compensation	5,475	4,223
Deferred income taxes	(3,309)	(2,913)
Earnings from equity-method investment		(104)
Gain on acquisition of business		(26,409)
Inventory acquisition fair value adjustment		4,754
Other	510	1,297
Changes in assets and liabilities which (used)/provided cash, excluding effects from business acquisitions:
Accounts receivable	(5,747)	(3,859)
Inventories	(9,041)	(11,806)
Prepaid income taxes, income taxes receivable, prepaid expenses and other current assets	1,234	(5,806)
Accounts payable, income taxes payable, accrued expenses and other current liabilities	10,101	5,975
Other non-current assets and liabilities	(105)	(972)
Cash provided by operating activities	67,720	41,287
Cash flows from investing activities:
Purchases of property, plant and equipment	(11,645)	(6,502)
Acquisition of businesses, net of cash acquired and working capital adjustments	(29,600)	(168,332)
Acquisition of assets	(1,225)
Other investing activities	213	44
Cash used in investing activities	(42,257)	(174,790)
Cash flows from financing activities:
Borrowings under revolving credit facility	55,253	176,769
Repayments of long-term debt and revolving credit facility	(29,059)	(15,625)
Payments of debt issuance costs		(638)
Payments of contingent considerations		(2,546)
Repurchase of common stock	(3,765)	(370)
Payments of withholding taxes from stock-based awards	(3,483)	(1,846)
Capital lease payments	(420)	(646)
Acquisition of noncontrolling interest	(30,800)
Cash provided by (used in) financing activities	(12,274)	155,098
Effect of exchange rates on cash and cash equivalents	(1,432)	2,446
Increase in cash and cash equivalents	11,757	24,041
Cash and cash equivalents, beginning of period	100,057	68,108
Cash and cash equivalents, end of period	111,814	92,149
Supplemental disclosure of cash flow information:
Cash paid for interest	6,716	3,512
Cash paid for income taxes	15,173	18,053
Income tax refunds received	$ 2,245	$ 185

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 28, 2018
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation Novanta Inc. and its subsidiaries (collectively referred to as “Novanta”, the “Company”, “we”, “us”, “our”) is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers (“OEMs”) a competitive advantage. Novanta combines deep proprietary technology expertise and competencies in photonics, vision and precision motion with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to the customers’ demanding applications. The accompanying unaudited interim consolidated financial statements have been prepared by the Company in United States (“U.S.”) dollars and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”), the instructions to Form 10-Q and the provisions of Regulation S-X pertaining to interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted. The interim consolidated financial statements and notes included in this report should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. 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 (“U.K.”), 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 to approximately 76%. Since January 10, 2017, Laser Quantum has been consolidated in the Company’s consolidated financial statements. On September 27, 2018, the Company acquired the remaining approximately 24% of the outstanding shares of Laser Quantum for an aggregate consideration of $45.1 million in cash and restricted stock. 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. 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. The Company evaluates its estimates based on historical experience, current conditions and various other assumptions that it believes are reasonable under the circumstances. Actual results could differ significantly from those estimates. Recent Accounting Pronouncements The following table provides a brief description of recent Accounting Standard Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118.” ASU 2018-05 allows SEC registrants to record provisional amounts in earnings for the year ended December 31, 2017 due to the complexities involved in accounting for the income tax effects of the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”). Companies have up to one year from the enactment of the Tax Reform Act (the “measurement period”) to obtain, prepare, and analyze the information that is needed in order to complete the accounting under Accounting Standards Codification (“ASC”) Topic 740. Any provisional amounts or adjustments to provisional amounts during the measurement period should be included in income from continuing operations as an adjustment to tax provision (benefit) in the reporting period in which the amounts are determined. January 1, 2018. The Company adopted ASU 2018-05 during the first quarter of 2018. See Note 12. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 allows an entity to reclassify the income tax effects of the Tax Reform Act on items within accumulated other comprehensive income to retained earnings. ASU 2018-02 shall be applied either in the period of adoption or retrospectively to each period (or periods) in which the effects of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-02 on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Compensation – Stock Compensation (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 should be applied prospectively to an award modified on or after the adoption date. January 1, 2018. Early adoption is permitted. The Company adopted ASU 2017-09 during the first quarter of 2018. The adoption of ASU 2017-09 did not have a material impact on the Company’s consolidated financial statements. 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.” ASU 2017-07 requires employers that offer or maintain defined benefit plans to disaggregate the service component from the other components of net periodic benefit cost and provides guidance on the presentation of the service component and the other components of net periodic benefit cost in the statement of operations. ASU 2017-07 should be applied retrospectively for the presentation of net periodic benefit cost in the statement of operations. January 1, 2018. Early adoption is permitted. The Company retrospectively adopted ASU 2017-07 during the first quarter of 2018. The adoption of ASU 2017-07 resulted in the reclassification of $0.1 million and $0.4 million of the Company’s net periodic benefit cost related to its frozen U.K. pension plan from Selling, general and administrative expenses into Other income (expense) in the consolidated statement of operations for the three and nine months ended September 29, 2017, respectively. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory in the period in which the transfer occurs. ASU 2016-16 shall be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. January 1, 2018. Early adoption is permitted. The Company adopted ASU 2016-16 during the first quarter of 2018 using the modified retrospective approach. The adoption resulted in the reclassification of $2.5 million of prepaid income taxes and income taxes receivable, of which $2.2 million was recorded to Accumulated deficit and $0.3 million was recognized as net deferred tax assets, for the three months ended March 30, 2018. The Company will recognize incremental deferred income tax expense thereafter as these net deferred tax assets are utilized. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date.” ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition,” and requires entities to recognize revenue in a way that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgements and changes in judgements and assets recognized from costs incurred to fulfill a contract. ASU 2015-14 deferred the effective date of ASU 2014-09 by one year. January 1, 2018. The Company adopted ASU 2014-09 during the first quarter of 2018 using the modified retrospective method. ASU 2014-09 has been applied to those contracts which were not completed as of January 1, 2018 and all new contracts entered into by the Company subsequent to January 1, 2018. All prior period financial statements and disclosures are presented in accordance with Topic 605. The adoption of ASU 2014-09 did not have an impact on the Company’s Accumulated deficit. See Note 2. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step-two of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 should be applied on a prospective basis. January 1, 2020. Early adoption is permitted. The Company adopted ASU 2017-04 during the second quarter of 2018. The adoption of ASU 2017-04 had no impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 amends and simplifies existing guidance in order to better align a company’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. ASU 2017-12 should be applied to hedging relationships existing on the date of adoption. The effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. January 1, 2019. Early adoption is permitted. The Company does not expect the adoption of ASU 2017-12 to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) – Targeted Improvements.” ASU 2016-02 requires a lessee to recognize on the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for both finance and operating leases and to disclose key information about leasing arrangements. ASU 2016-02 should be applied as of the beginning of the earliest period presented in the financial statements using a modified retrospective approach. ASU 2018-11 provides an additional (and optional) transition method which allows entities to apply ASU 2016-02 as of the adoption date and recognize a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. January 1, 2019. Early adoption is permitted. As a result of the new standard, all of the Company’s operating leases longer than one year in duration will be recognized on the consolidated balance sheet as right-of-use assets with offsetting lease liabilities upon adoption of the standard. The Company has completed a qualitative assessment of its lease portfolio and is in the process of implementing a lease accounting software, collecting data and designing processes and controls to account for leases in accordance with the new standard. The Company plans to adopt the standard as of January 1, 2019 under the transition option provided in ASU 2018-11.

Revenue

Revenue	9 Months Ended
	Sep. 28, 2018
Revenue From Contract With Customer [Abstract]
Revenue	2. Revenue The Company recognizes revenue when control of promised goods or services is transferred to customers. The transfer of control generally occurs upon shipment, which is when title and risk of loss pass to the customer. The vast majority of the Company’s revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for such products, which is generally at contractually stated prices. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Performance Obligations Substantially all of the Company’s revenue is recognized at a point in time, upon shipment, rather than over time. At the request of its customers, the Company may perform professional services, generally for the maintenance and repair of products previously sold to those customers and for engineering services. Professional services are typically short in duration, mostly less than one month, and total less than 3% of the Company’s consolidated revenue. Revenue is typically recognized at a point in time when control transfers to the customer upon completion of professional services. These services generally involve a single distinct performance obligation. The consideration expected to be received in exchange for such services is normally the contractually stated amount. The Company occasionally sells separately priced non-standard/extended warranty services or preventative maintenance plans with the sale of products. The transfer of control over the service plans is over time. The Company recognizes the related revenue ratably over the terms of the service plans. The transaction price of a contract is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using the expected cost plus a margin. The Company accounts for shipping and handling activities that occur after the transfer of control over the related goods as fulfillment activities rather than performance obligations. The shipping and handling fees charged to customers are recognized as revenue and the related costs are recorded in cost of revenue at the time of transfer of control. Accounts Receivable Credit is extended based upon an evaluation of the customer's financial condition. Accounts receivable are stated at their estimated net realizable value. The allowance for doubtful accounts is based on a variety of factors, including the age of amounts outstanding relative to their contractual due dates, specific customer factors, and other known risks and economic trends. Standard payment terms are typically 30 days after shipment and may vary by the type and geographic location of the customer. Warranties The Company generally provides warranties for its products. The standard warranty period is typically 12 months to 24 months for the Photonics and Precision Motion segments and 12 months to 36 months for the Vision segment. The standard warranty period for product sales is accounted for under the provisions of ASC 450, “Contingencies,” as the Company has the ability to ascertain the likelihood of the liability and can reasonably estimate the amount of the liability. A provision for the estimated cost related to warranty is recorded to cost of revenue at the time revenue is recognized. The Company’s estimate of costs to service the warranty obligations is based on historical experience and expectations of future conditions. To the extent that the Company’s experience in warranty claims or costs associated with servicing those claims differ from the original estimates, revisions to the estimated warranty liability are recorded at that time, with an offsetting adjustment to cost of revenue. Practical Expedients and Exemptions The Company expenses incremental direct costs of obtaining a contract when incurred if the expected amortization period is one year or less. These costs are recorded within selling, general and administrative expenses in the consolidated statement of operations. The Company does not adjust the promised amount of consideration for the effects of a financing component because the transfer of a promised good to a customer and the customer’s payment for that good are typically one year or less. The Company does not disclose the value of the remaining performance obligation for contracts with an original expected length of one year or less. Contract Liabilities Contract liabilities consist of deferred revenue and advance payments from customers, including amounts that are refundable. These contract liabilities are classified as either current or long-term liabilities in the consolidated balance sheet based on the timing of when the Company expects to recognize revenue. As of September 28, 2018 and January 1, 2018 (the date of adoption of Topic 606), contract liabilities were $4.8 million and $5.4 million, respectively, and are included in accrued expenses and other current liabilities and other liabilities in the accompanying consolidated balance sheets. The decrease in the contract liability balance during the nine months ended September 28, 2018 is primarily due to $3.0 million of revenue recognized during the period that was included in the contract liability balance at the date of adoption, partially offset by cash payments received in advance of satisfying performance obligations. Disaggregated Revenue See Note 17 for the Company’s disaggregation of revenue by segment, geography and end market.

Business Combinations

Business Combinations	9 Months Ended
	Sep. 28, 2018
Business Combinations [Abstract]
Business Combinations	3. Business Combinations 2018 Acquisitions During the nine months ended September 28, 2018, the Company acquired two businesses with total cash considerations of $33.5 million, including the acquisition of Zettlex Holdings Limited ("Zettlex"), for a total purchase price of $32.0 million. The consolidated statements of operations include the operating results of the businesses from the dates of acquisition. Zettlex On May 1, 2018, the Company acquired 100% of the outstanding stock of Zettlex, a Cambridge, United Kingdom-based provider of inductive encoder products that provides absolute and accurate positioning, even in extreme operating environments, to OEMs in the medical and advanced industrial markets. The purchase price of £23.3 million ($32.0 million), net of working capital adjustments, was financed with cash on hand and borrowings under the Company’s revolving credit facility. The addition of Zettlex is expected to broaden the range of components and solutions that the Company can provide to customers by combining its commercial resources and application-specific competencies with Zettlex's technologies and strong team. Zettlex is included in the Company’s Precision Motion reportable segment. The acquisition of Zettlex 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 Zettlex and the Company. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. The Company’s estimates and assumptions in determining the estimated fair values of certain assets and liabilities are subject to change within the measurement period (up to one year from the acquisition date) as a result of additional information obtained with regards to facts and circumstances that existed as of the acquisition date. The purchase price allocation is preliminary as the Company is in the process of collecting additional information for the valuation of intangible assets and unrecognized tax benefits. Based upon a preliminary valuation, the total purchase price was allocated as follows (in thousands): Purchase Allocation Cash $ 3,776 Accounts receivable 2,237 Inventories 928 Property, plant and equipment 2,590 Intangible assets 14,585 Goodwill 11,649 Other assets 145 Total assets acquired 35,910 Accounts payable 509 Accrued expenses and other liabilities 894 Deferred tax liabilities 2,481 Total liabilities assumed 3,884 Total assets acquired, net of liabilities assumed 32,026 Less: cash acquired 3,776 Total purchase price, net of cash acquired $ 28,250 The fair value of intangible assets is comprised of the following (dollar amounts in thousands): Weighted Average Estimated Fair Amortization Value Period Developed technologies $ 3,027 10 years Customer relationships 9,494 15 years Trademarks and trade names 550 10 years Backlog 1,514 1 year Total $ 14,585 The purchase price allocation resulted in $14.6 million of identifiable intangible assets and $11.6 million of goodwill. As the Zettlex 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) Zettlex’s ability to grow its business with existing and new customers, including leveraging the Company’s customer base; and (ii) cost improvements due to the integration of Zettlex operations into the Company’s existing infrastructure. The operating results of Zettlex were included in the Company’s results of operations beginning on May 1, 2018. Zettlex contributed revenues of $5.0 million and a loss before income taxes of $1.4 million for the nine months ended September 28, 2018. Loss before income taxes for the nine months ended September 28, 2018 included amortization of purchased intangible assets of $0.8 million and compensation expense of $2.8 million recognized under earn-out agreements. The pro forma financial information reflecting the operating results of Zettlex, as if it had been acquired as of January 1, 2017, would not differ materially from the operating results of the Company as reported for the year ended December 31, 2017. Acquisition Costs Acquisition-related costs are included in restructuring, acquisition and divestiture related costs in the consolidated statements of operations. Acquisition-related costs for current year acquisitions were $0.5 million for the nine months ended September 28, 2018. 2017 Acquisition 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. WOM is included in the Company’s Vision reportable segment. The unaudited pro forma information presented below includes the effects of business combination accounting resulting from the acquisition of WOM, including amortization of inventory fair value adjustments, amortization of intangible assets, interest expense on borrowings in connection with the acquisition, and the related tax effects, as though the acquisition had been consummated as of January 1, 2016. The unaudited 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 acquisition had taken place on January 1, 2016. Three Nine Months Ended September 29, September 29, 2017 2017 Revenue $ 146,296 $ 415,134 Consolidated net income $ 12,547 $ 56,754 Earnings per share attributable to Novanta Inc. – Basic $ 0.12 $ 1.26 Earnings per share attributable to Novanta Inc. – Diluted $ 0.12 $ 1.25

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 28, 2018
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 Cumulative Pension Comprehensive Translation Liability Income (Loss) Adjustments Adjustments Balance at December 31, 2017 $ (17,880 ) $ (8,313 ) $ (9,567 ) Other comprehensive income (loss) (2,232 ) (2,482 ) 250 Amounts reclassified from accumulated other comprehensive income (loss) (1) 728 — 728 Balance at September 28, 2018 $ (19,384 ) $ (10,795 ) $ (8,589 ) (1) The amounts reclassified from other comprehensive income (loss) were included in other income (expense), net in the consolidated statements of operations.

Earnings per Common Share

Earnings per Common Share	9 Months Ended
	Sep. 28, 2018
Earnings Per Share [Abstract]
Earnings per Common Share	5. Earnings per Common Share Earnings per common share is computed by dividing net income attributable to Novanta Inc., after redeemable noncontrolling interest redemption value adjustment, 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 per common share, such redemption value adjustments are included in the calculation of the numerator. For diluted earnings per common share, the denominator also includes the dilutive effect of outstanding restricted stock units, stock options, non-GAAP EPS performance-based restricted stock units and total shareholder return performance-based restricted stock units determined using the treasury stock method. Dilutive effects of contingently issuable shares are included in the weighted average dilutive share calculation when the contingencies have been resolved. For periods in which net losses are generated, the dilutive potential common shares are excluded from the calculation of diluted earnings per common share as the effect would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings per common share (amounts in thousands, except per share data): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Numerators: Consolidated net income $ 14,989 $ 8,366 $ 39,451 $ 52,630 Less: Net income attributable to noncontrolling interest (435 ) (834 ) (1,986 ) (1,444 ) Net income attributable to Novanta Inc. 14,554 7,532 37,465 51,186 Redeemable noncontrolling interest redemption value adjustment (see Note 15) 6,877 (7,585 ) 1,781 (11,303 ) Net income (loss) attributable to Novanta Inc. after adjustment for redeemable noncontrolling interest redemption value $ 21,431 $ (53 ) $ 39,246 $ 39,883 Denominators: Weighted average common shares outstanding— basic 34,899 34,833 34,918 34,809 Dilutive potential common shares (1) (2) 586 — 551 426 Weighted average common shares outstanding— diluted 35,485 34,833 35,469 35,235 Antidilutive common shares excluded from above — — — — Earnings (Loss) per Common Share Attributable to Novanta Inc.: Basic $ 0.61 $ (0.00 ) $ 1.12 $ 1.15 Diluted $ 0.60 $ (0.00 ) $ 1.11 $ 1.13 (1) 53,968 non-GAAP EPS performance restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum non-controlling interest holders (see Note 15) are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of the end of each period presented. (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. Common Share Repurchases During the nine months ended September 28, 2018, the Company repurchased 57 thousand of its common shares in the open market for an aggregate purchase price of $3.8 million at an average price of $66.16 per share.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 28, 2018
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 Cash Equivalents The Company’s cash equivalents are highly liquid investments with original maturities of three months or less, which represent an asset the Company measures at fair value on a recurring basis. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets. The fair values of cash, accounts receivable, income taxes receivable, accounts payable, income taxes payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature. Foreign Currency Contracts The Company addresses market risks from changes in foreign currency exchange rates through a risk management program that includes the use of derivative financial instruments to mitigate certain balance sheet foreign currency transaction exposures. The Company uses foreign currency forward contracts as a part of its strategy to manage exposures related to foreign currency denominated monetary assets and liabilities. Contingent Consideration On December 14, 2016, the Company acquired certain video signal processing and management technologies used in medical visualization solutions. Under the purchase and sale agreement, the owners are eligible to receive contingent consideration based on the achievement of certain revenue targets from 2018 to 2021. The undiscounted range of possible contingent consideration is zero to €5.5 million ($6.6 million). If such targets are achieved, the contingent consideration would be payable in cash in four installments from 2019 to 2022. As the acquired assets did not meet the definition of a business, the fair value of the contingent consideration is recognized when probable and estimable and is capitalized as part of the cost of the acquired assets. In December 2017, the Company recorded an estimated fair value of $1.3 million in contingent consideration, which is reported as a long-term liability in other liabilities on the consolidated balance sheet as of December 31, 2017. Based on the most recent projected revenues for fiscal years 2018 to 2021, the fair value of the contingent consideration was adjusted to $2.4 million, which is reported as a long-term liability in other liabilities on the consolidated balance sheet as of September 28, 2018. On February 19, 2015, the Company acquired Applimotion Inc. (“Applimotion”). Under the purchase and sale agreement for the Applimotion acquisition, the shareholders of Applimotion were eligible to receive contingent consideration based on the achievement of certain revenue targets for fiscal years 2015 to 2017. If such targets were achieved, the contingent consideration would 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. As a result of Applimotion’s fiscal year 2015 and 2016 revenue results, contingent consideration of $1.2 million was paid in the first quarter of 2017. Based on Applimotion’s fiscal year 2016 and 2017 revenue results, the fair value for the remaining contingent consideration was adjusted to $2.8 million as of December 31, 2017. The Company paid $2.8 million as the final Applimotion contingent consideration payment in January 2018. The following table summarizes the fair values of the Company’s financial assets and liabilities as of September 28, 2018 (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 $ 2,109 $ 2,109 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 132 — 132 — $ 2,241 $ 2,109 $ 132 $ — Liabilities Accrued expenses and other current liabilities: Foreign currency forward contracts $ 33 $ — $ 33 $ — Other liabilities: Contingent consideration - Long-term 2,438 — — 2,438 $ 2,471 $ — $ 33 $ 2,438 The following table summarizes the fair values of the Company’s financial assets and liabilities as of December 31, 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 $ 2,665 $ 2,665 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 150 — 150 — $ 2,815 $ 2,665 $ 150 $ — Liabilities Accrued expenses and other current liabilities: Contingent consideration - Current $ 2,800 $ — $ — $ 2,800 Foreign currency forward contracts (1) — — — — Other liabilities: Contingent consideration - Long-term 1,304 — — 1,304 $ 4,104 $ — $ — $ 4,104 (1) The unrealized loss from foreign currency forward contracts was nominal as of December 31, 2017. Changes in the fair value of Level 3 contingent consideration during the nine months ended September 28, 2018 were as follows (in thousands): Contingent Consideration Balance at December 31, 2017 $ 4,104 Payments (2,800 ) Fair value adjustments 1,134 Balance at September 28, 2018 $ 2,438 As of September 28, 2018, the significant unobservable inputs used in the fair value measurement of the Company’s contingent consideration were projected revenues and a discount rate. Increases or decreases in the unobservable inputs would result in a higher or lower fair value measurement. See Note 10 to Consolidated Financial Statements for a discussion of the estimated fair value of the Company’s outstanding debt.

Foreign Currency Contracts

Foreign Currency Contracts	9 Months Ended
	Sep. 28, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Foreign Currency Contracts	7. Foreign Currency Contracts The Company addresses market risks from changes in foreign currency exchange rates through a risk management program that includes the use of derivative financial instruments to mitigate certain foreign currency transaction exposures from future settlement of non-functional currency monetary assets and liabilities as of the end of a period. The Company does not enter into derivative transactions for speculative purposes. Gains and losses on derivative financial instruments substantially offset losses and gains on the underlying hedged exposures. Furthermore, the Company manages its exposure to counterparty risks on derivative instruments by entering into contracts with a diversified group of major financial institutions and by actively monitoring outstanding positions. Beginning in September 2017, the Company commenced a foreign currency hedging program through the use of forward contracts as a part of its strategy to limit its exposures related to monetary assets and liabilities denominated in currencies other than the functional currency of the Company and its subsidiaries. These forward contracts are not designated as cash flow, fair value or net investment hedges. All changes in the fair value of these forward contracts are recognized in income before income taxes. As of September 28, 2018, the aggregate notional amount of the Company’s foreign currency forward contracts was $30.1 million and the related fair value was a net gain of $0.1 million. As of December 31, 2017, the aggregate notional amount of the Company’s foreign currency forward contracts was $17.9 million and the related fair value was a net gain of $0.2 million. For the three and nine months ended September 28, 2018, the Company recognized an aggregate net loss of $0.2 million and an aggregate net gain of $0.7 million, respectively, which are included in foreign exchange transaction gains (losses) in the consolidated statement of operations. The Company did not have any open foreign currency contracts for the three and nine months ended September 29, 2017.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 28, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	8. Goodwill and Intangible Assets Goodwill Goodwill is recorded when the consideration for a business combination exceeds the fair value of net tangible and identifiable intangible assets acquired. The Company tests its goodwill balances 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 the most recent annual goodwill and indefinite-lived intangible asset impairment test as of the beginning of the second quarter of 2018 and noted no impairment of goodwill. The following table summarizes changes in goodwill during the nine months ended September 28, 2018 (in thousands): Balance at beginning of the period $ 210,988 Goodwill acquired from acquisitions 11,862 Effect of foreign exchange rate changes (3,078 ) Balance at end of the period $ 219,772 Goodwill by reportable segment as of September 28, 2018 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 169,803 $ 156,129 $ 45,069 $ 371,001 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 67,342 $ 124,407 $ 28,023 $ 219,772 Goodwill by reportable segment as of December 31, 2017 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 170,818 $ 157,436 $ 33,963 $ 362,217 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 68,357 $ 125,714 $ 16,917 $ 210,988 Intangible Assets Intangible assets as of September 28, 2018 and December 31, 2017, respectively, are summarized as follows (in thousands): September 28, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and developed technologies $ 134,144 $ (84,359 ) $ 49,785 $ 130,890 $ (77,295 ) $ 53,595 Customer relationships 140,539 (61,253 ) 79,286 131,809 (52,015 ) 79,794 Customer backlog 1,779 (761 ) 1,018 2,524 (2,284 ) 240 Non-compete covenant 2,514 (2,358 ) 156 2,514 (1,956 ) 558 Trademarks and trade names 16,064 (8,688 ) 7,376 15,708 (7,874 ) 7,834 Amortizable intangible assets 295,040 (157,419 ) 137,621 283,445 (141,424 ) 142,021 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 308,067 $ (157,419 ) $ 150,648 $ 296,472 $ (141,424 ) $ 155,048 Amortizable intangible assets as of September 28, 2018 include intangible assets of $1.1 million recognized in conjunction with the acquisition of certain customer relationships in September 2018. All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining useful lives. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships, definite-lived trademarks and trade names, and other intangible assets is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense was as follows (in thousands): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Amortization expense – cost of revenue $ 2,492 $ 2,741 $ 7,461 $ 6,078 Amortization expense – operating expenses 3,947 3,217 11,538 9,413 Total amortization expense $ 6,439 $ 5,958 $ 18,999 $ 15,491 Estimated amortization expense for each of the five succeeding years and thereafter as of September 28, 2018 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2018 (remainder of year) $ 2,532 $ 4,068 $ 6,600 2019 9,256 14,945 24,201 2020 8,338 12,602 20,940 2021 7,407 11,683 19,090 2022 6,289 9,829 16,118 Thereafter 15,963 34,709 50,672 Total $ 49,785 $ 87,836 $ 137,621

Supplementary Balance Sheet Inf

Supplementary Balance Sheet Information	9 Months Ended
	Sep. 28, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Supplementary Balance Sheet Information	9 . Supplementary Balance Sheet Information The following tables provide the details of selected balance sheet items as of the periods indicated (in thousands): Inventories September 28, December 31, 2018 2017 Raw materials $ 61,509 $ 57,277 Work-in-process 16,369 14,847 Finished goods 18,374 16,443 Demo and consigned inventory 2,665 2,711 Total inventories $ 98,917 $ 91,278 Accrued Expenses and Other Current Liabilities September 28, December 31, 2018 2017 Accrued compensation and benefits $ 23,926 $ 17,348 Accrued warranty 5,041 4,835 Customer deposits 3,392 3,634 Other 16,306 17,497 Total $ 48,665 $ 43,314 Accrued Warranty Nine Months Ended September 28, 2018 September 29, 2017 Balance at beginning of the period $ 4,835 $ 3,142 Provision charged to cost of revenue 2,503 2,084 Warranty liabilities acquired from acquisitions — 1,307 Use of provision (2,243 ) (1,818 ) Foreign currency exchange rate changes (54 ) 58 Balance at end of period $ 5,041 $ 4,773

Debt

Debt	9 Months Ended
	Sep. 28, 2018
Debt Disclosure [Abstract]
Debt	10. Debt Debt consisted of the following (in thousands): September 28, December 31, 2018 2017 Senior Credit Facilities – term loan $ 9,200 $ 9,200 Less: unamortized debt issuance costs (69 ) (81 ) Total current portion of long-term debt $ 9,131 $ 9,119 Senior Credit Facilities – term loan $ 69,925 $ 79,125 Senior Credit Facilities – revolving credit facility 179,748 149,453 Less: unamortized debt issuance costs (2,380 ) (3,078 ) Total long-term debt $ 247,293 $ 225,500 Total Senior Credit Facilities $ 256,424 $ 234,619 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. On February 26, 2018, the Company entered into a fourth amendment (the “Fourth Amendment”) to the Second Amended and Restated Credit Agreement. The Fourth Amendment increased the maximum consolidated leverage ratio from 3.00 to 3.50, increased the maximum consolidated leverage ratio for permitted acquisitions and stock repurchases from 2.50 to 3.00, increased the maximum consolidated leverage ratio for a designated acquisition from 3.00 to 3.50, and increased the maximum consolidated leverage The Company is required to satisfy certain financial and non-financial covenants under the Second Amended and Restated Credit Agreement. The Second Amended and Restated Credit Agreement also contains customary events of default. The Company was in compliance with these covenants as of September 28, 2018. Liens The Company’s obligations under the Senior Credit Facilities are secured, on a senior basis, by a lien on substantially all of the assets of Novanta Inc. and its U.S., U.K. and German subsidiaries and guaranteed by Novanta Inc. and these subsidiaries. Fair Value of Debt As of September 28, 2018 and December 31, 2017, the outstanding balance of the Company’s debt approximated its fair value based on current rates available to the Company for debt of similar maturities. The fair value of the Company’s debt is classified as Level 2 under the fair value hierarchy.

Share-based Compensation

Share-based Compensation	9 Months Ended
	Sep. 28, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based Compensation	11. Share-Based Compensation The table below summarizes share-based compensation expense recorded in the consolidated statements of operations (in thousands): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Selling, general and administrative $ 1,523 $ 1,336 $ 5,021 $ 3,911 Research and development and engineering 114 59 306 156 Cost of revenue 58 41 148 156 Total share-based compensation expense $ 1,695 $ 1,436 $ 5,475 $ 4,223 Share-based compensation reported in selling, general and administrative expenses during each of the nine-month periods ended September 28, 2018 and September 29, 2017, respectively, included $0.5 million of expense related to deferred stock units granted to the members of the Company’s Board of Directors. Restricted Stock Units and Deferred Stock Units The Company’s restricted stock units (“RSUs”) have generally been issued with vesting periods ranging from three years to five years and vest based solely on service conditions. Accordingly, the Company recognizes compensation expense on a straight-line basis over the requisite service period. The Company reduces the compensation expense by an estimated forfeiture rate which is based on anticipated forfeitures and historical forfeiture experience. Deferred stock units (“DSUs”) are granted to the members of the Company’s Board of Directors. The compensation expense associated with the DSUs is recognized in full on the date of grant, as DSUs are fully vested and non-forfeitable upon grant. The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the nine months ended September 28, 2018: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2017 614 $ 18.35 Granted 123 $ 54.36 Vested (186 ) $ 18.52 Forfeited (27 ) $ 24.53 Unvested at September 28, 2018 524 $ 26.39 Expected to vest as of September 28, 2018 500 The total fair value of RSUs and DSUs that vested during the nine months ended September 28, 2018 was $10.2 million based on the market price of the underlying stock on the date of vesting. Performance Stock Units The Company granted two types of performance-based stock 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 Compensation Committee at the time of grant and will be in the range of zero to 200% of the target number of shares. The Company recognizes compensation expense ratably over the performance period based on the number of shares that are deemed probable of vesting at the end of the three-year performance cycle. This probability assessment is performed quarterly and the cumulative effect of a change in the estimated compensation expense, if any, is recognized in the consolidated statement of operations in the period in which such determination is made. The number of 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 grant date, on a straight-line basis from the grant date to the end of the three-year performance period. Compensation expense will not be affected by the number of TSR-PSUs that will 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 28, 2018: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2017 89 $ 24.00 Granted 48 $ 62.17 Vested — $ — Forfeited — $ — Unvested at September 28, 2018 137 $ 37.28 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 28, 2018 Grant-date stock price $ 53.85 Expected volatility 30.35 % Risk-free interest rate 2.37 % Expected annual dividend yield — Fair value $ 70.49

Income Taxes

Income Taxes	9 Months Ended
	Sep. 28, 2018
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The Company determines its estimated annual effective tax rate at the end of each interim period based on full-year forecasted pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with the cumulative effect of any changes in the estimated annual effective tax rate being recorded in the 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 of 19.5% for the three months ended September 28, 2018 differs from the Canadian statutory tax rate of 29.0% primarily due to the mix of income earned in jurisdictions with varying tax rates, including the benefit of the new 21% U.S. corporate income tax rate, estimated deductions for Foreign Derived Intangible Income under the Tax Reform Act The Company’s effective tax rate of 17.3% for the nine months ended September 28, 2018 differs from the Canadian statutory tax rate of 29.0% primarily due to the mix of income earned in jurisdictions with varying tax rates, including the benefit of the new 21% U.S. corporate income tax rate, estimated deductions for Foreign Derived Intangible Income under the Tax Reform Act The Company’s effective tax rate of 11.9% for the three months ended September 29, 2017 differs from the Canadian statutory 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 of 11.6% for the nine months ended September 29, 2017 differs from the Canadian statutory tax rate of 29.0% primarily 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 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. On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The Tax Reform Act significantly changes U.S. tax law by, among other things, lowering the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, implementing a territorial tax system, providing a one-time transition toll charge (“Toll Charge”) on accumulated foreign earnings, creating a new limitation on deductible interest expense and modifying the limitation on officer compensation. As a result of the Tax Reform Act, the Company was required to revalue certain deferred tax assets and liabilities at the newly enacted 21% U.S. federal corporate income tax rate. This revaluation resulted in an additional income tax provision of $2.8 million for the year ended December 31, 2017 and a corresponding reduction in the net deferred tax assets and liabilities. Because of the ownership structure of the Company, the Company’s foreign entities outside the U.S. are not considered controlled foreign corporations of the U.S. company, as defined under U.S. tax principles, and accordingly, the accumulated earnings of these foreign subsidiaries are not subject to the one-time Toll Charge under the Tax Reform Act. ASC 740, “Income Taxes,” requires a company to record the effects of a tax law change in the period of enactment. ASU 2018-05 allows a company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the changes in the Tax Reform Act. The measurement period ends when the company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year from the date of enactment of the Tax Reform Act. The Company currently anticipates finalizing and recording any resulting adjustments by December 2018. During the nine months ended September 28, 2018, there were no changes made to the provisional amounts recognized in 2017 in connection with the enactment of the Tax Reform Act. The Company will continue to analyze the effects of the Tax Reform Act. Additional impacts from the Tax Reform Act will be recorded as they are identified during the measurement period as provided for in ASU 2018-05. The final impact of the Tax Reform Act may differ from the provisional amounts that have been recognized, possibly materially, due to, among other things, changes in the Company’s interpretation of the Tax Reform Act, legislative or administrative actions to clarify the intent of the statutory language that differ from the Company’s current interpretation, any changes in accounting standards for income taxes or related interpretations in response to the Tax Reform Act, or any updates or changes to estimates utilized to calculate the impacts, including changes to current year earnings estimates and applicable foreign exchange rates. Additionally, the Company’s U.S. tax returns for 2017 will be filed during the fourth quarter of 2018, and any changes to the tax positions for temporary differences compared to the estimates used for the provisional amounts will be recorded in the period in which they are identified. During the three and nine months ended September 28, 2018, the Company recorded estimates for certain deductions now available in 2018 under the Tax Reform Act. These estimates may be subject to revision as future guidance or clarification is received from the U.S. taxing authorities.

Restructuring, Acquisition and

Restructuring, Acquisition and Divestiture Related Costs	9 Months Ended
	Sep. 28, 2018
Restructuring And Related Activities [Abstract]
Restructuring, Acquisition and Divestiture Related Costs	13. 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 28, September 29, September 28, September 29, 2018 2017 2018 2017 2018 restructuring $ 137 $ — $ 1,125 $ — 2016 restructuring — — — 186 2011 restructuring — — — 14 Total restructuring and divestiture related charges 137 — 1,125 200 Acquisition and related charges 2,204 3,834 3,680 6,032 Total restructuring, acquisition and divestiture related costs $ 2,341 $ 3,834 $ 4,805 $ 6,232 2018 Restructuring During the second quarter of 2018, the Company initiated a program to integrate manufacturing operations as a result of recent acquisition activities. During the three and nine months ended September 28, 2018, the Company recorded $0.1 million and $1.1 million, respectively, in severance and related costs in connection with the 2018 restructuring plan. These costs were reported in the Vision reportable segment. The Company anticipates completing the 2018 restructuring program during the third quarter of 2019 and expects to incur additional restructuring charges of $1.2 million to $1.5 million related to the 2018 restructuring program in the Vision reportable segment in the next twelve months. 2016 Restructuring During the third quarter of 2015, the Company initiated the 2016 restructuring program, which included consolidating certain manufacturing operations to optimize its facility footprint and better utilize resources, and reducing redundant costs due to productivity cost savings and business volume reductions. As of September 28, 2018, the Company incurred cumulative costs related to this restructuring plan totaling $6.5 million. The plan was completed in 2017. 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 Other Balance at December 31, 2017 $ 806 $ 39 $ 763 $ 4 Restructuring charges 1,125 1,082 — 43 Cash payments (512 ) (187 ) (282 ) (43 ) Non-cash write-offs and other adjustments (11 ) (11 ) — — Balance at September 28, 2018 $ 1,408 $ 923 $ 481 $ 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 $0.5 million and $0.9 million for the three and nine months ended September 28, 2018, respectively, and $3.8 million and $6.0 million for the three and nine months ended September 29, 2017, respectively. Acquisition related costs recognized under earn-out agreements in connection with acquisitions totaled $1.7 million and $2.8 million for the three and nine months ended September 28, 2018, respectively. The majority of acquisition related costs for the three and nine months ended September 28, 2018 were included in the Company’s Precision Motion reportable segment.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 28, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies Leases The Company leases certain equipment and facilities under operating and capital lease agreements. There have been no material changes to the Company’s leases through September 28, 2018 from those discussed in Note 16 to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, other than a twelve-year extension (the “First Amendment to Amended and Restated Lease”) to the Company’s lease for its Bedford, Massachusetts headquarters signed in May 2018. Under the terms of the First Amendment to Amended and Restated Lease, the expiration date of the Bedford, Massachusetts lease is extended from May 31, 2019 to May 31, 2031. The Company’s annual rental payment under the First Amendment to Amended and Restated Lease is $1.8 million with 2.5% annual escalations. Total future minimum lease payments under the First Amendment to Amended and Restated Lease is $26.4 million as of September 28, 2018. Purchase Commitments There have been no material changes to the Company’s purchase commitments since December 31, 2017. Legal Contingencies The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. The Company reviews the status of each significant matter and assesses the potential financial exposure on a quarterly basis. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available as of the date of the consolidated balance sheet. As additional information becomes available, the Company reassesses the potential liability related to any pending claims and litigation and may revise its estimates. The Company does not believe that the outcome of these claims will have a material adverse effect on its consolidated financial statements but there can be no assurance that any such claims, or any similar claims, would not have a material adverse effect on 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 Company’s officers and directors are also a party to indemnification agreements with the Company. These indemnification agreements provide, among other things, that the director 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. 28, 2018
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interest	15. 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 Laser Quantum in the consolidated financial statements. As part of the purchase agreement, the Company and the remaining shareholders 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. As a result of the put option held by the remaining shareholders, the noncontrolling interest was considered a redeemable equity instrument and was presented as temporary equity on the consolidated balance sheet. The proportionate share of the net income from Laser Quantum attributable to the noncontrolling interest was reported as a reduction to the consolidated net income in the Company’s consolidated statement of operations and an increase to the carrying value of the redeemable noncontrolling interest. The initial value of the noncontrolling interest was measured at a fair value of £17.7 million ($21.6 million) as of January 10, 2017. This 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). On the consolidated balance sheet, the Company reported 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 was determined as of the end of the reporting period as if it were also the redemption date for the instrument. The resulting adjustments were recorded in retained earnings in shareholders’ equity and did not affect net income attributable to Novanta Inc. However, these adjustments were included in the determination of earnings per common share (See Note 5). On September 27, 2018, the Company acquired the remaining approximately 24% of the outstanding shares of Laser Quantum for an aggregate consideration of $45.1 million, consisting of $30.7 million of cash and 213,219 shares of the Company’s restricted stock. The restricted stock will become fully vested upon achievement of certain milestones included in the restricted stock agreement. Restricted stock not otherwise vested as of December 31, 2025 will be subject to forfeiture. The acquisition was accounted for as a transaction among shareholders. No gain or loss was recognized in the consolidated statements of operations for the three and nine months ended September 28, 2018. The difference between the carrying amount on the balance sheet prior to the acquisition of the redeemable noncontrolling interest and the purchase price was recorded as an adjustment to retained earnings in stockholders’ equity. The following table summarizes the changes in the Company’s redeemable noncontrolling interest in the nine months ended September 28, 2018 (in thousands): Redeemable Noncontrolling Interest Balance as of December 31, 2017 $ 46,923 Net income attributable to noncontrolling interest 1,986 Redeemable noncontrolling interest redemption value adjustment (1,781 ) Foreign currency translation (1,926 ) Acquisition of noncontrolling interest (45,202 ) Balance as of September 28, 2018 $ —

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 28, 2018
Related Party Transactions [Abstract]
Related Party Transactions	16. Related Party Transactions Certain members of the Company’s board of directors currently serve on the board of directors or as an advisor of companies that are customers of the Company. All contracts with related parties are executed at arm’s length in the ordinary course of business. The aggregate revenue from these customers was $9.4 million and $29.7 million for the three and nine months ended September 28, 2018, respectively. There was $3.9 million in accounts receivable due from these customers as of September 28, 2018. There were no material transactions with related parties in the three and nine months ended September 29, 2017.

Segment Information

Segment Information	9 Months Ended
	Sep. 28, 2018
Segment Reporting [Abstract]
Segment Information	17. Segment Information Reportable Segments The Company evaluates the performance of, and allocates resources to, its segments based on revenue, gross profit and operating profit. The Company’s reportable segments have been identified based on commonality and adjacency of technologies, applications and customers amongst the Company’s individual product lines. The Company determined that disclosing revenue by specific product was impracticable due to the highly customized and extensive portfolio of products offered to customers. 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 laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine 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 and inductive 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), and depreciation and amortization expenses by reportable segment were as follows (in thousands, except percentage data): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Revenue Photonics $ 61,285 $ 61,882 $ 187,178 $ 170,503 Vision 62,113 58,150 172,145 124,943 Precision Motion 37,396 26,264 98,836 78,926 Total $ 160,794 $ 146,296 $ 458,159 $ 374,372 Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Gross Profit Photonics $ 29,218 $ 28,966 $ 89,510 $ 77,423 Vision 24,160 19,792 64,322 47,378 Precision Motion 16,788 10,291 44,750 34,558 Unallocated Corporate and Shared Services (532 ) (342 ) (1,560 ) (1,069 ) Total $ 69,634 $ 58,707 $ 197,022 $ 158,290 Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Gross Profit Margin Photonics 47.7 % 46.8 % 47.8 % 45.4 % Vision 38.9 % 34.0 % 37.4 % 37.9 % Precision Motion 44.9 % 39.2 % 45.3 % 43.8 % Total 43.3 % 40.1 % 43.0 % 42.3 % Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Operating Income (Loss) Photonics $ 14,595 $ 15,367 $ 46,102 $ 36,138 Vision 5,380 846 6,246 4,893 Precision Motion 8,818 5,493 25,037 20,238 Unallocated Corporate and Shared Services (7,798 ) (9,299 ) (22,048 ) (22,776 ) Total $ 20,995 $ 12,407 $ 55,337 $ 38,493 Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Depreciation and Amortization Expenses Photonics $ 2,997 $ 3,666 $ 9,030 $ 10,693 Vision 5,100 4,362 15,371 9,276 Precision Motion 1,020 588 2,364 1,746 Unallocated Corporate and Shared Services 82 248 621 725 Total $ 9,199 $ 8,864 $ 27,386 $ 22,440 Revenue by Geography The Company aggregates geographic revenue based on the customer location where products are shipped. Revenue from these customers was as follows (in thousands): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 United States $ 63,073 $ 58,949 $ 181,653 $ 157,778 Germany 23,089 17,728 64,170 46,807 Rest of Europe 30,222 27,152 80,629 55,164 China 17,516 15,459 51,486 40,920 Rest of Asia-Pacific 24,882 23,769 74,589 64,511 Other 2,012 3,239 5,632 9,192 Total $ 160,794 $ 146,296 $ 458,159 $ 374,372 The majority of revenue from our Photonics, Vision and Precision Motion segments is generated from sales to customers within the United States and Europe. Revenue by End Market The Company primarily operates in two end markets: the advanced industrial market and the medical market. Revenue by end market was approximately as follows: Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Advanced Industrial 50 % 50 % 50 % 55 % Medical 50 % 50 % 50 % 45 % Total 100 % 100 % 100 % 100 % The majority of revenue from the Photonics and Precision Motion segments is generated from sales to customers in the advanced industrial market. The majority of revenue from the Vision segment is generated from sales to customers in the medical market.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 28, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Novanta Inc. and its subsidiaries (collectively referred to as “Novanta”, the “Company”, “we”, “us”, “our”) is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers (“OEMs”) a competitive advantage. Novanta combines deep proprietary technology expertise and competencies in photonics, vision and precision motion with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to the customers’ demanding applications. The accompanying unaudited interim consolidated financial statements have been prepared by the Company in United States (“U.S.”) dollars and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”), the instructions to Form 10-Q and the provisions of Regulation S-X pertaining to interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted. The interim consolidated financial statements and notes included in this report should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. 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 (“U.K.”), 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 to approximately 76%. Since January 10, 2017, Laser Quantum has been consolidated in the Company’s consolidated financial statements. On September 27, 2018, the Company acquired the remaining approximately 24% of the outstanding shares of Laser Quantum for an aggregate consideration of $45.1 million in cash and restricted stock. 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	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. 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. The Company evaluates its estimates based on historical experience, current conditions and various other assumptions that it believes are reasonable under the circumstances. Actual results could differ significantly from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following table provides a brief description of recent Accounting Standard Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118.” ASU 2018-05 allows SEC registrants to record provisional amounts in earnings for the year ended December 31, 2017 due to the complexities involved in accounting for the income tax effects of the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”). Companies have up to one year from the enactment of the Tax Reform Act (the “measurement period”) to obtain, prepare, and analyze the information that is needed in order to complete the accounting under Accounting Standards Codification (“ASC”) Topic 740. Any provisional amounts or adjustments to provisional amounts during the measurement period should be included in income from continuing operations as an adjustment to tax provision (benefit) in the reporting period in which the amounts are determined. January 1, 2018. The Company adopted ASU 2018-05 during the first quarter of 2018. See Note 12. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 allows an entity to reclassify the income tax effects of the Tax Reform Act on items within accumulated other comprehensive income to retained earnings. ASU 2018-02 shall be applied either in the period of adoption or retrospectively to each period (or periods) in which the effects of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-02 on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Compensation – Stock Compensation (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 should be applied prospectively to an award modified on or after the adoption date. January 1, 2018. Early adoption is permitted. The Company adopted ASU 2017-09 during the first quarter of 2018. The adoption of ASU 2017-09 did not have a material impact on the Company’s consolidated financial statements. 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.” ASU 2017-07 requires employers that offer or maintain defined benefit plans to disaggregate the service component from the other components of net periodic benefit cost and provides guidance on the presentation of the service component and the other components of net periodic benefit cost in the statement of operations. ASU 2017-07 should be applied retrospectively for the presentation of net periodic benefit cost in the statement of operations. January 1, 2018. Early adoption is permitted. The Company retrospectively adopted ASU 2017-07 during the first quarter of 2018. The adoption of ASU 2017-07 resulted in the reclassification of $0.1 million and $0.4 million of the Company’s net periodic benefit cost related to its frozen U.K. pension plan from Selling, general and administrative expenses into Other income (expense) in the consolidated statement of operations for the three and nine months ended September 29, 2017, respectively. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory in the period in which the transfer occurs. ASU 2016-16 shall be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. January 1, 2018. Early adoption is permitted. The Company adopted ASU 2016-16 during the first quarter of 2018 using the modified retrospective approach. The adoption resulted in the reclassification of $2.5 million of prepaid income taxes and income taxes receivable, of which $2.2 million was recorded to Accumulated deficit and $0.3 million was recognized as net deferred tax assets, for the three months ended March 30, 2018. The Company will recognize incremental deferred income tax expense thereafter as these net deferred tax assets are utilized. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date.” ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition,” and requires entities to recognize revenue in a way that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgements and changes in judgements and assets recognized from costs incurred to fulfill a contract. ASU 2015-14 deferred the effective date of ASU 2014-09 by one year. January 1, 2018. The Company adopted ASU 2014-09 during the first quarter of 2018 using the modified retrospective method. ASU 2014-09 has been applied to those contracts which were not completed as of January 1, 2018 and all new contracts entered into by the Company subsequent to January 1, 2018. All prior period financial statements and disclosures are presented in accordance with Topic 605. The adoption of ASU 2014-09 did not have an impact on the Company’s Accumulated deficit. See Note 2. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 simplifies the accounting for goodwill impairment by removing Step-two of the goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 should be applied on a prospective basis. January 1, 2020. Early adoption is permitted. The Company adopted ASU 2017-04 during the second quarter of 2018. The adoption of ASU 2017-04 had no impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 amends and simplifies existing guidance in order to better align a company’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. ASU 2017-12 should be applied to hedging relationships existing on the date of adoption. The effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. January 1, 2019. Early adoption is permitted. The Company does not expect the adoption of ASU 2017-12 to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) – Targeted Improvements.” ASU 2016-02 requires a lessee to recognize on the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for both finance and operating leases and to disclose key information about leasing arrangements. ASU 2016-02 should be applied as of the beginning of the earliest period presented in the financial statements using a modified retrospective approach. ASU 2018-11 provides an additional (and optional) transition method which allows entities to apply ASU 2016-02 as of the adoption date and recognize a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. January 1, 2019. Early adoption is permitted. As a result of the new standard, all of the Company’s operating leases longer than one year in duration will be recognized on the consolidated balance sheet as right-of-use assets with offsetting lease liabilities upon adoption of the standard. The Company has completed a qualitative assessment of its lease portfolio and is in the process of implementing a lease accounting software, collecting data and designing processes and controls to account for leases in accordance with the new standard. The Company plans to adopt the standard as of January 1, 2019 under the transition option provided in ASU 2018-11.

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 28, 2018
Business Combinations [Abstract]
Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation	Based upon a preliminary valuation, the total purchase price was allocated as follows (in thousands): Purchase Allocation Cash $ 3,776 Accounts receivable 2,237 Inventories 928 Property, plant and equipment 2,590 Intangible assets 14,585 Goodwill 11,649 Other assets 145 Total assets acquired 35,910 Accounts payable 509 Accrued expenses and other liabilities 894 Deferred tax liabilities 2,481 Total liabilities assumed 3,884 Total assets acquired, net of liabilities assumed 32,026 Less: cash acquired 3,776 Total purchase price, net of cash acquired $ 28,250
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 $ 3,027 10 years Customer relationships 9,494 15 years Trademarks and trade names 550 10 years Backlog 1,514 1 year Total $ 14,585
Summary of Unaudited Pro Forma Financial Information	The unaudited 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 acquisition had taken place on January 1, 2016. Three Nine Months Ended September 29, September 29, 2017 2017 Revenue $ 146,296 $ 415,134 Consolidated net income $ 12,547 $ 56,754 Earnings per share attributable to Novanta Inc. – Basic $ 0.12 $ 1.26 Earnings per share attributable to Novanta Inc. – Diluted $ 0.12 $ 1.25

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 28, 2018
Equity [Abstract]
Components of Accumulated Other Comprehensive Income (Loss)	Changes in accumulated other comprehensive income (loss) was as follows (in thousands): Total Accumulated Other Cumulative Pension Comprehensive Translation Liability Income (Loss) Adjustments Adjustments Balance at December 31, 2017 $ (17,880 ) $ (8,313 ) $ (9,567 ) Other comprehensive income (loss) (2,232 ) (2,482 ) 250 Amounts reclassified from accumulated other comprehensive income (loss) (1) 728 — 728 Balance at September 28, 2018 $ (19,384 ) $ (10,795 ) $ (8,589 ) (1) The amounts reclassified from other comprehensive income (loss) were included in other income (expense), net in the consolidated statements of operations.

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	9 Months Ended
	Sep. 28, 2018
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings per Common Share	The following table sets forth the computation of basic and diluted earnings per common share (amounts in thousands, except per share data): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Numerators: Consolidated net income $ 14,989 $ 8,366 $ 39,451 $ 52,630 Less: Net income attributable to noncontrolling interest (435 ) (834 ) (1,986 ) (1,444 ) Net income attributable to Novanta Inc. 14,554 7,532 37,465 51,186 Redeemable noncontrolling interest redemption value adjustment (see Note 15) 6,877 (7,585 ) 1,781 (11,303 ) Net income (loss) attributable to Novanta Inc. after adjustment for redeemable noncontrolling interest redemption value $ 21,431 $ (53 ) $ 39,246 $ 39,883 Denominators: Weighted average common shares outstanding— basic 34,899 34,833 34,918 34,809 Dilutive potential common shares (1) (2) 586 — 551 426 Weighted average common shares outstanding— diluted 35,485 34,833 35,469 35,235 Antidilutive common shares excluded from above — — — — Earnings (Loss) per Common Share Attributable to Novanta Inc.: Basic $ 0.61 $ (0.00 ) $ 1.12 $ 1.15 Diluted $ 0.60 $ (0.00 ) $ 1.11 $ 1.13 (1) 53,968 non-GAAP EPS performance restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum non-controlling interest holders (see Note 15) are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of the end of each period presented. (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.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 28, 2018
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 28, 2018 (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 $ 2,109 $ 2,109 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 132 — 132 — $ 2,241 $ 2,109 $ 132 $ — Liabilities Accrued expenses and other current liabilities: Foreign currency forward contracts $ 33 $ — $ 33 $ — Other liabilities: Contingent consideration - Long-term 2,438 — — 2,438 $ 2,471 $ — $ 33 $ 2,438 The following table summarizes the fair values of the Company’s financial assets and liabilities as of December 31, 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 $ 2,665 $ 2,665 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 150 — 150 — $ 2,815 $ 2,665 $ 150 $ — Liabilities Accrued expenses and other current liabilities: Contingent consideration - Current $ 2,800 $ — $ — $ 2,800 Foreign currency forward contracts (1) — — — — Other liabilities: Contingent consideration - Long-term 1,304 — — 1,304 $ 4,104 $ — $ — $ 4,104 (1) The unrealized loss from foreign currency forward contracts was nominal as of December 31, 2017.
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 28, 2018 were as follows (in thousands): Contingent Consideration Balance at December 31, 2017 $ 4,104 Payments (2,800 ) Fair value adjustments 1,134 Balance at September 28, 2018 $ 2,438

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 28, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Changes in Goodwill	The following table summarizes changes in goodwill during the nine months ended September 28, 2018 (in thousands): Balance at beginning of the period $ 210,988 Goodwill acquired from acquisitions 11,862 Effect of foreign exchange rate changes (3,078 ) Balance at end of the period $ 219,772
Goodwill by Reportable Segment	Goodwill by reportable segment as of September 28, 2018 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 169,803 $ 156,129 $ 45,069 $ 371,001 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 67,342 $ 124,407 $ 28,023 $ 219,772 Goodwill by reportable segment as of December 31, 2017 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 170,818 $ 157,436 $ 33,963 $ 362,217 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 68,357 $ 125,714 $ 16,917 $ 210,988
Intangible Assets	Intangible assets as of September 28, 2018 and December 31, 2017, respectively, are summarized as follows (in thousands): September 28, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and developed technologies $ 134,144 $ (84,359 ) $ 49,785 $ 130,890 $ (77,295 ) $ 53,595 Customer relationships 140,539 (61,253 ) 79,286 131,809 (52,015 ) 79,794 Customer backlog 1,779 (761 ) 1,018 2,524 (2,284 ) 240 Non-compete covenant 2,514 (2,358 ) 156 2,514 (1,956 ) 558 Trademarks and trade names 16,064 (8,688 ) 7,376 15,708 (7,874 ) 7,834 Amortizable intangible assets 295,040 (157,419 ) 137,621 283,445 (141,424 ) 142,021 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 308,067 $ (157,419 ) $ 150,648 $ 296,472 $ (141,424 ) $ 155,048
Amortization Expense of Intangible Assets	Amortization expense was as follows (in thousands): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Amortization expense – cost of revenue $ 2,492 $ 2,741 $ 7,461 $ 6,078 Amortization expense – operating expenses 3,947 3,217 11,538 9,413 Total amortization expense $ 6,439 $ 5,958 $ 18,999 $ 15,491
Estimated Amortization Expense	Estimated amortization expense for each of the five succeeding years and thereafter as of September 28, 2018 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2018 (remainder of year) $ 2,532 $ 4,068 $ 6,600 2019 9,256 14,945 24,201 2020 8,338 12,602 20,940 2021 7,407 11,683 19,090 2022 6,289 9,829 16,118 Thereafter 15,963 34,709 50,672 Total $ 49,785 $ 87,836 $ 137,621

Supplementary Balance Sheet I_2

Supplementary Balance Sheet Information (Tables)	9 Months Ended
	Sep. 28, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Inventories	Inventories September 28, December 31, 2018 2017 Raw materials $ 61,509 $ 57,277 Work-in-process 16,369 14,847 Finished goods 18,374 16,443 Demo and consigned inventory 2,665 2,711 Total inventories $ 98,917 $ 91,278
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities September 28, December 31, 2018 2017 Accrued compensation and benefits $ 23,926 $ 17,348 Accrued warranty 5,041 4,835 Customer deposits 3,392 3,634 Other 16,306 17,497 Total $ 48,665 $ 43,314
Accrued Warranty	Accrued Warranty Nine Months Ended September 28, 2018 September 29, 2017 Balance at beginning of the period $ 4,835 $ 3,142 Provision charged to cost of revenue 2,503 2,084 Warranty liabilities acquired from acquisitions — 1,307 Use of provision (2,243 ) (1,818 ) Foreign currency exchange rate changes (54 ) 58 Balance at end of period $ 5,041 $ 4,773

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 28, 2018
Debt Disclosure [Abstract]
Debt	Debt consisted of the following (in thousands): September 28, December 31, 2018 2017 Senior Credit Facilities – term loan $ 9,200 $ 9,200 Less: unamortized debt issuance costs (69 ) (81 ) Total current portion of long-term debt $ 9,131 $ 9,119 Senior Credit Facilities – term loan $ 69,925 $ 79,125 Senior Credit Facilities – revolving credit facility 179,748 149,453 Less: unamortized debt issuance costs (2,380 ) (3,078 ) Total long-term debt $ 247,293 $ 225,500 Total Senior Credit Facilities $ 256,424 $ 234,619

Share-based Compensation (Table

Share-based Compensation (Tables)	9 Months Ended
	Sep. 28, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-Based Compensation Expense Recorded in the Consolidated Statements of Operations	The table below summarizes share-based compensation expense recorded in the consolidated statements of operations (in thousands): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Selling, general and administrative $ 1,523 $ 1,336 $ 5,021 $ 3,911 Research and development and engineering 114 59 306 156 Cost of revenue 58 41 148 156 Total share-based compensation expense $ 1,695 $ 1,436 $ 5,475 $ 4,223
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 28, 2018 Grant-date stock price $ 53.85 Expected volatility 30.35 % Risk-free interest rate 2.37 % Expected annual dividend yield — Fair value $ 70.49
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 28, 2018: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2017 614 $ 18.35 Granted 123 $ 54.36 Vested (186 ) $ 18.52 Forfeited (27 ) $ 24.53 Unvested at September 28, 2018 524 $ 26.39 Expected to vest as of September 28, 2018 500
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 28, 2018: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2017 89 $ 24.00 Granted 48 $ 62.17 Vested — $ — Forfeited — $ — Unvested at September 28, 2018 137 $ 37.28

Restructuring, Acquisition an_2

Restructuring, Acquisition and Divestiture Related Costs (Tables)	9 Months Ended
	Sep. 28, 2018
Restructuring And Related Activities [Abstract]
Schedule of 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 28, September 29, September 28, September 29, 2018 2017 2018 2017 2018 restructuring $ 137 $ — $ 1,125 $ — 2016 restructuring — — — 186 2011 restructuring — — — 14 Total restructuring and divestiture related charges 137 — 1,125 200 Acquisition and related charges 2,204 3,834 3,680 6,032 Total restructuring, acquisition and divestiture related costs $ 2,341 $ 3,834 $ 4,805 $ 6,232
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 Other Balance at December 31, 2017 $ 806 $ 39 $ 763 $ 4 Restructuring charges 1,125 1,082 — 43 Cash payments (512 ) (187 ) (282 ) (43 ) Non-cash write-offs and other adjustments (11 ) (11 ) — — Balance at September 28, 2018 $ 1,408 $ 923 $ 481 $ 4

Redeemable Noncontrolling Int_2

Redeemable Noncontrolling Interest (Tables)	9 Months Ended
	Sep. 28, 2018
Noncontrolling Interest [Abstract]
Schedule of Changes in Noncontrolling Interest	The following table summarizes the changes in the Company’s redeemable noncontrolling interest in the nine months ended September 28, 2018 (in thousands): Redeemable Noncontrolling Interest Balance as of December 31, 2017 $ 46,923 Net income attributable to noncontrolling interest 1,986 Redeemable noncontrolling interest redemption value adjustment (1,781 ) Foreign currency translation (1,926 ) Acquisition of noncontrolling interest (45,202 ) Balance as of September 28, 2018 $ —

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 28, 2018
Segment Reporting [Abstract]
Revenue, Gross Profit, Gross Profit Margin, Operating Income (Loss), and Depreciation and Amortization Expenses by Reportable Segment	Revenue, gross profit, gross profit margin, operating income (loss), and depreciation and amortization expenses by reportable segment were as follows (in thousands, except percentage data): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Revenue Photonics $ 61,285 $ 61,882 $ 187,178 $ 170,503 Vision 62,113 58,150 172,145 124,943 Precision Motion 37,396 26,264 98,836 78,926 Total $ 160,794 $ 146,296 $ 458,159 $ 374,372 Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Gross Profit Photonics $ 29,218 $ 28,966 $ 89,510 $ 77,423 Vision 24,160 19,792 64,322 47,378 Precision Motion 16,788 10,291 44,750 34,558 Unallocated Corporate and Shared Services (532 ) (342 ) (1,560 ) (1,069 ) Total $ 69,634 $ 58,707 $ 197,022 $ 158,290 Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Gross Profit Margin Photonics 47.7 % 46.8 % 47.8 % 45.4 % Vision 38.9 % 34.0 % 37.4 % 37.9 % Precision Motion 44.9 % 39.2 % 45.3 % 43.8 % Total 43.3 % 40.1 % 43.0 % 42.3 % Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Operating Income (Loss) Photonics $ 14,595 $ 15,367 $ 46,102 $ 36,138 Vision 5,380 846 6,246 4,893 Precision Motion 8,818 5,493 25,037 20,238 Unallocated Corporate and Shared Services (7,798 ) (9,299 ) (22,048 ) (22,776 ) Total $ 20,995 $ 12,407 $ 55,337 $ 38,493 Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Depreciation and Amortization Expenses Photonics $ 2,997 $ 3,666 $ 9,030 $ 10,693 Vision 5,100 4,362 15,371 9,276 Precision Motion 1,020 588 2,364 1,746 Unallocated Corporate and Shared Services 82 248 621 725 Total $ 9,199 $ 8,864 $ 27,386 $ 22,440
Schedule of Geographic Revenue	The Company aggregates geographic revenue based on the customer location where products are shipped. Revenue from these customers was as follows (in thousands): Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 United States $ 63,073 $ 58,949 $ 181,653 $ 157,778 Germany 23,089 17,728 64,170 46,807 Rest of Europe 30,222 27,152 80,629 55,164 China 17,516 15,459 51,486 40,920 Rest of Asia-Pacific 24,882 23,769 74,589 64,511 Other 2,012 3,239 5,632 9,192 Total $ 160,794 $ 146,296 $ 458,159 $ 374,372
Revenue By End Market	The Company primarily operates in two end markets: the advanced industrial market and the medical market. Revenue by end market was approximately as follows: Three Nine Months Ended September 28, September 29, September 28, September 29, 2018 2017 2018 2017 Advanced Industrial 50 % 50 % 50 % 55 % Medical 50 % 50 % 50 % 45 % Total 100 % 100 % 100 % 100 %

Basis of Presentation - Additio

Basis of Presentation - Additional information (Details) - USD ($) $ in Thousands	Sep. 27, 2018	Jan. 10, 2017	Jan. 09, 2017	Sep. 29, 2017	Sep. 29, 2017	Sep. 28, 2018	Mar. 30, 2018	Dec. 31, 2017
Basis Of Presentation [Line Items]
Accumulated deficit						$ 90,736		$ 127,740
ASU 2017-07
Basis Of Presentation [Line Items]
Reclassification of net periodic benefit cost				$ 100	$ 400
ASU 2016-16
Basis Of Presentation [Line Items]
Reclassification of prepaid income taxes and income taxes receivable							$ 2,500
Accumulated deficit							2,200
Deferred tax assets, net							$ 300
Laser Quantum
Basis Of Presentation [Line Items]
Equity method investment ownership percentage on Laser Quantum		76.00%	41.00%
Percentage of outstanding shares acquired	24.00%	35.00%
Consideration transferred in cash and restricted stock for percentage of shares acquired	$ 45,100

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 28, 2018	Jan. 01, 2018
Adoption of Topic 606
Revenue [Line Items]
Contract liabilities	$ 4.8	$ 5.4
Revenue recognized	$ 3
Warranties
Revenue [Line Items]
Standard product warranty description	The Company generally provides warranties for its products. The standard warranty period is typically 12 months to 24 months for the Photonics and Precision Motion segments and 12 months to 36 months for the Vision segment. The standard warranty period for product sales is accounted for under the provisions of ASC 450, “Contingencies,” as the Company has the ability to ascertain the likelihood of the liability and can reasonably estimate the amount of the liability.
Accounts Receivable
Revenue [Line Items]
Standard payment terms	30 days
Maximum
Revenue [Line Items]
Percentage of revenue for professional services	3.00%
Period when revenue for professional and engineering services requested under customer contract is recognized	1 month
Incremental Cost amortization expected period	1 year
Transfer of a promised good to a customer and the customer’s payment	1 year
Remaining performance obligation for contracts	1 year
Maximum | Photonics and Precision Motion | Warranties
Revenue [Line Items]
Standard warranty period on products	24 months
Maximum | Vision | Warranties
Revenue [Line Items]
Standard warranty period on products	36 months
Minimum | Photonics and Precision Motion | Warranties
Revenue [Line Items]
Standard warranty period on products	12 months
Minimum | Vision | Warranties
Revenue [Line Items]
Standard warranty period on products	12 months

Business Combinations - Additio

Business Combinations - Additional Information (Details) € in Millions, £ in Millions	May 01, 2018USD ($)	Sep. 28, 2018USD ($)	Sep. 29, 2017USD ($)	Sep. 28, 2018USD ($)Business	Sep. 29, 2017USD ($)	May 01, 2018GBP (£)	Dec. 31, 2017USD ($)	Jul. 03, 2017USD ($)	Jul. 03, 2017EUR (€)
Business Acquisition [Line Items]
Number of businesses acquired | Business				2
Goodwill		$ 219,772,000		$ 219,772,000			$ 210,988,000
Acquisition and related charges		2,204,000	$ 3,834,000	3,680,000	$ 6,032,000
Zettlex Holdings Limited
Business Acquisition [Line Items]
Total cash consideration				33,500,000
Purchase price	$ 32,026,000	$ 32,000,000		32,000,000		£ 23.3
Percentage of shares acquired	100.00%					100.00%
Intangible assets	$ 14,585,000
Goodwill	11,649,000
Goodwill assets expected to be deductible for tax purposes	$ 0
Revenues				5,000,000
Income (loss) before income taxes				(1,400,000)
Amortization of purchased intangible assets, included in loss before income taxes				800,000
Compensation expense recognized under earn-out agreements				2,800,000
Zettlex Holdings Limited | Maximum
Business Acquisition [Line Items]
Estimated fair value measurement period from acquisition date	1 year
2018 Acquisitions
Business Acquisition [Line Items]
Acquisition and related charges				$ 500,000
World of Medicine GmbH
Business Acquisition [Line Items]
Purchase price								$ 134,900,000	€ 118.1
Percentage of shares acquired								100.00%	100.00%

Summary of Fair Values of Asset

Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation (Details) $ in Thousands, £ in Millions	May 01, 2018USD ($)	Sep. 28, 2018USD ($)	May 01, 2018GBP (£)	Dec. 31, 2017USD ($)
Business Acquisition [Line Items]
Goodwill		$ 219,772		$ 210,988
Zettlex Holdings Limited
Business Acquisition [Line Items]
Cash	$ 3,776
Accounts receivable	2,237
Inventories	928
Property, plant and equipment	2,590
Intangible assets	14,585
Goodwill	11,649
Other assets	145
Total assets acquired	35,910
Accounts payable	509
Accrued expenses and other liabilities	894
Deferred tax liabilities	2,481
Total liabilities assumed	3,884
Total assets acquired, net of liabilities assumed	32,026	$ 32,000	£ 23.3
Less: cash acquired	3,776
Total purchase price, net of cash acquired	$ 28,250

Fair Value of Intangible Assets

Fair Value of Intangible Assets (Details) - Zettlex Holdings Limited $ in Thousands	May 01, 2018USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 14,585
Developed Technologies
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 3,027
Intangible Assets Weighted Average Amortization Period	10 years
Customer Relationships
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 9,494
Intangible Assets Weighted Average Amortization Period	15 years
Trademarks and Trade Names
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 550
Intangible Assets Weighted Average Amortization Period	10 years
Backlog
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 1,514
Intangible Assets Weighted Average Amortization Period	1 year

Summary of Unaudited Pro Forma

Summary of Unaudited Pro Forma Financial Information (Details) - World of Medicine GmbH - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 29, 2017	Sep. 29, 2017
Business Acquisition [Line Items]
Revenue	$ 146,296	$ 415,134
Consolidated net income	$ 12,547	$ 56,754
Earnings per share attributable to Novanta Inc. – Basic	$ 0.12	$ 1.26
Earnings per share attributable to Novanta Inc. – Diluted	$ 0.12	$ 1.25

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands	9 Months Ended
	Sep. 28, 2018USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ 311,545
Other comprehensive income (loss)	(2,232)
Amounts reclassified from accumulated other comprehensive income (loss)	728	[1]
Ending Balance	359,676
Total Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(17,880)
Ending Balance	(19,384)
Cumulative Translation Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(8,313)
Other comprehensive income (loss)	(2,482)
Ending Balance	(10,795)
Pension Liability Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(9,567)
Other comprehensive income (loss)	250
Amounts reclassified from accumulated other comprehensive income (loss)	728	[1]
Ending Balance	$ (8,589)
[1]	The amounts reclassified from other comprehensive income (loss) were included in other income (expense), net in the consolidated statements of operations.

Computation of Basic and Dilute

Computation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Numerators:
Consolidated net income		$ 14,989	$ 8,366	$ 39,451	$ 52,630
Less: Net income attributable to noncontrolling interest		(435)	(834)	(1,986)	(1,444)
Net income attributable to Novanta Inc.		14,554	7,532	37,465	51,186
Redeemable noncontrolling interest redemption value adjustment (see Note 15)		6,877	(7,585)	1,781	(11,303)
Net income (loss) attributable to Novanta Inc. after adjustment for redeemable noncontrolling interest redemption value		$ 21,431	$ (53)	$ 39,246	$ 39,883
Denominators:
Weighted average common shares outstanding—basic		34,899	34,833	34,918	34,809
Dilutive potential common shares	[1],[2]	586		551	426
Weighted average common shares outstanding— diluted		35,485	34,833	35,469	35,235
Earnings (Loss) per Common Share Attributable to Novanta Inc.:
Basic		$ 0.61	$ 0	$ 1.12	$ 1.15
Diluted		$ 0.60	$ 0	$ 1.11	$ 1.13
[1]	53,968 non-GAAP EPS performance restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum non-controlling interest holders (see Note 15) are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of the end of each period presented.
[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.

Computation of Basic and Dilu_2

Computation of Basic and Diluted Earnings per Common Share (Parenthetical) (Details) - shares	Sep. 27, 2018	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
EPS Performance-based Restricted Stock Units
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of denominator		53,968	53,968	53,968	53,968
Laser Quantum | Restricted Stock
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of denominator	213,219	213,219		213,219

Earnings per Common Share - Add

Earnings per Common Share - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Computation Of Earnings Per Share [Line Items]
Repurchase of common stock	$ 3,765	$ 370
Common Stock Repurchase Plan
Computation Of Earnings Per Share [Line Items]
Shares repurchased	57
Shares repurchased, average cost per share	$ 66.16

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) $ in Thousands, € in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Jan. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Sep. 28, 2018USD ($)Installment	Dec. 31, 2017USD ($)	Dec. 14, 2016USD ($)	Dec. 14, 2016EUR (€)	Feb. 19, 2015USD ($)
Video Signal Processing and Management Technologies
Business Acquisition Contingent Consideration [Line Items]
Date of Acquisition Agreement			Dec. 14, 2016
Number of contingent consideration installments | Installment			4
Undiscounted range of outcomes, minimum					$ 0
Undiscounted range of outcomes, maximum					$ 6,600	€ 5.5
Video Signal Processing and Management Technologies | Long-term Liability in Other Liabilities
Business Acquisition Contingent Consideration [Line Items]
Estimated fair value of contingent consideration			$ 2,400	$ 1,300
Applimotion Inc.
Business Acquisition Contingent Consideration [Line Items]
Number of contingent consideration installments | Installment			2
Estimated fair value of contingent consideration				$ 2,800			$ 1,000
Business combination, date of agreement			Feb. 19, 2015
Name of acquired entity			Applimotion Inc
Payments of contingent consideration	$ 2,800	$ 1,200

Fair Values of Financial Assets

Fair Values of Financial Assets and Liabilities (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands	Sep. 28, 2018	Dec. 31, 2017
Assets
Cash equivalents	$ 2,109	$ 2,665
Assets, fair value	2,241	2,815
Liabilities
Liabilities, fair value	2,471	4,104
Prepaid Expenses and Other Current Assets
Assets
Foreign currency forward contracts	132	150
Other Liabilities
Liabilities
Contingent consideration - Long-term	2,438	1,304
Accrued Expenses And Other Current Liabilities
Liabilities
Foreign currency forward contracts	33
Contingent consideration - Current		2,800
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash equivalents	2,109	2,665
Assets, fair value	2,109	2,665
Significant Other Observable Inputs (Level 2)
Assets
Assets, fair value	132	150
Liabilities
Liabilities, fair value	33
Significant Other Observable Inputs (Level 2) | Prepaid Expenses and Other Current Assets
Assets
Foreign currency forward contracts	132	150
Significant Other Observable Inputs (Level 2) | Accrued Expenses And Other Current Liabilities
Liabilities
Foreign currency forward contracts	33
Significant Other Unobservable Inputs (Level 3)
Liabilities
Liabilities, fair value	2,438	4,104
Significant Other Unobservable Inputs (Level 3) | Other Liabilities
Liabilities
Contingent consideration - Long-term	$ 2,438	1,304
Significant Other Unobservable Inputs (Level 3) | Accrued Expenses And Other Current Liabilities
Liabilities
Contingent consideration - Current		$ 2,800

Summary of Changes in the Fair

Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Details) - Significant Other Unobservable Inputs (Level 3) $ in Thousands	9 Months Ended
	Sep. 28, 2018USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 4,104
Payments	(2,800)
Fair value adjustments	1,134
Ending balance	$ 2,438

Foreign Currency Contracts - Ad

Foreign Currency Contracts - Additional Information (Details) - Foreign Currency Forward Contracts $ in Millions	3 Months Ended	9 Months Ended
	Sep. 28, 2018USD ($)	Sep. 28, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 29, 2017Contract
Derivative [Line Items]
Aggregate notional amount of foreign currency forward contracts	$ 30.1	$ 30.1	$ 17.9
Fair value of foreign currency forward contracts	0.1	0.1	$ 0.2
Number of open foreign currency contracts | Contract				0
Foreign Exchange Transaction Gains (Losses)
Derivative [Line Items]
Net gain (loss) on foreign currency forward contracts	$ (0.2)	$ 0.7

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended
	Sep. 28, 2018	Jun. 29, 2018
Goodwill And Intangible Assets [Line Items]
Impairment of goodwill and intangible assets		$ 0
Customer Relationships
Goodwill And Intangible Assets [Line Items]
Intangible assets recognized in conjunction with acquisition	$ 1,100,000

Summary of Changes in Goodwill

Summary of Changes in Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 28, 2018USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Balance at beginning of the period	$ 210,988
Goodwill acquired from acquisitions	11,862
Effect of foreign exchange rate changes	(3,078)
Balance at end of the period	$ 219,772

Goodwill By Reportable Segment

Goodwill By Reportable Segment (Details) - USD ($) $ in Thousands	Sep. 28, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill	$ 371,001	$ 362,217
Accumulated impairment of goodwill	(151,229)	(151,229)
Total	219,772	210,988
Photonics
Goodwill [Line Items]
Goodwill	169,803	170,818
Accumulated impairment of goodwill	(102,461)	(102,461)
Total	67,342	68,357
Vision
Goodwill [Line Items]
Goodwill	156,129	157,436
Accumulated impairment of goodwill	(31,722)	(31,722)
Total	124,407	125,714
Precision Motion
Goodwill [Line Items]
Goodwill	45,069	33,963
Accumulated impairment of goodwill	(17,046)	(17,046)
Total	$ 28,023	$ 16,917

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 28, 2018	Dec. 31, 2017
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	$ 295,040	$ 283,445
Amortizable intangible assets, accumulated amortization	(157,419)	(141,424)
Amortizable intangible assets, net carrying amount	137,621	142,021
Non-amortizable intangible assets	13,027	13,027
Gross carrying amount	308,067	296,472
Net carrying amount	150,648	155,048
Patents and Developed Technologies
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	134,144	130,890
Amortizable intangible assets, accumulated amortization	(84,359)	(77,295)
Amortizable intangible assets, net carrying amount	49,785	53,595
Customer Relationships
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	140,539	131,809
Amortizable intangible assets, accumulated amortization	(61,253)	(52,015)
Amortizable intangible assets, net carrying amount	79,286	79,794
Customer Backlog
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	1,779	2,524
Amortizable intangible assets, accumulated amortization	(761)	(2,284)
Amortizable intangible assets, net carrying amount	1,018	240
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	(2,358)	(1,956)
Amortizable intangible assets, net carrying amount	156	558
Trademarks and Trade Names
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	16,064	15,708
Amortizable intangible assets, accumulated amortization	(8,688)	(7,874)
Amortizable intangible assets, net carrying amount	$ 7,376	$ 7,834

Amortization Expense of Intangi

Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense – cost of revenue	$ 2,492	$ 2,741	$ 7,461	$ 6,078
Amortization expense – operating expenses	3,947	3,217	11,538	9,413
Total amortization expense	$ 6,439	$ 5,958	$ 18,999	$ 15,491

Estimated Amortization Expense

Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 28, 2018	Dec. 31, 2017
Finite Lived Intangible Assets [Line Items]
2018 (remainder of year)	$ 6,600
2,019	24,201
2,020	20,940
2,021	19,090
2,022	16,118
Thereafter	50,672
Amortizable intangible assets, net carrying amount	137,621	$ 142,021
Cost of Revenue
Finite Lived Intangible Assets [Line Items]
2018 (remainder of year)	2,532
2,019	9,256
2,020	8,338
2,021	7,407
2,022	6,289
Thereafter	15,963
Amortizable intangible assets, net carrying amount	49,785
Operating Expenses
Finite Lived Intangible Assets [Line Items]
2018 (remainder of year)	4,068
2,019	14,945
2,020	12,602
2,021	11,683
2,022	9,829
Thereafter	34,709
Amortizable intangible assets, net carrying amount	$ 87,836

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 28, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 61,509	$ 57,277
Work-in-process	16,369	14,847
Finished goods	18,374	16,443
Demo and consigned inventory	2,665	2,711
Total inventories	$ 98,917	$ 91,278

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 28, 2018	Dec. 31, 2017	Sep. 29, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Accrued compensation and benefits	$ 23,926	$ 17,348
Accrued warranty	5,041	4,835	$ 4,773	$ 3,142
Customer deposits	3,392	3,634
Other	16,306	17,497
Total	$ 48,665	$ 43,314

Accrued Warranty (Details)

Accrued Warranty (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Product Warranties Disclosures [Abstract]
Balance at beginning of the period	$ 4,835	$ 3,142
Provision charged to cost of revenue	2,503	2,084
Warranty liabilities acquired from acquisitions		1,307
Use of provision	(2,243)	(1,818)
Foreign currency exchange rate changes	(54)	58
Balance at end of period	$ 5,041	$ 4,773

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Sep. 28, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total current portion of long-term debt	$ 9,131	$ 9,119
Total long-term debt	247,293	225,500
Total Senior Credit Facilities	256,424	234,619
Term Loan
Debt Instrument [Line Items]
Current portion of long-term debt, Gross	9,200	9,200
Long-term debt, Gross	69,925	79,125
Term Loan And Revolving Credit Facility
Debt Instrument [Line Items]
Less: unamortized debt issuance costs	(69)	(81)
Less: unamortized debt issuance costs	(2,380)	(3,078)
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, Gross	$ 179,748	$ 149,453

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Feb. 26, 2018	Aug. 01, 2017	Sep. 28, 2018	Sep. 27, 2018	Dec. 31, 2017	Jul. 28, 2017	Jan. 10, 2017	May 19, 2016
Debt Instrument [Line Items]
Long-term debt including current maturities			$ 256,424,000		$ 234,619,000
Laser Quantum
Debt Instrument [Line Items]
Percentage of outstanding shares acquired				24.00%			35.00%
Term Loan
Debt Instrument [Line Items]
Current portion of long-term debt			9,200,000		$ 9,200,000
Repayment of debt			9,200,000
Revolving Credit Facility
Debt Instrument [Line Items]
Proceeds from debt			55,300,000
Repayment of debt			$ 19,900,000
Revolving Credit Facility | Laser Quantum
Debt Instrument [Line Items]
Percentage of outstanding shares acquired			24.00%
Second Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	300.00%
Second Amended and Restated Credit Agreement | Permitted Acquisitions and Stock Repurchases
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	250.00%
Second Amended and Restated Credit Agreement | Designated Acquisition
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	300.00%
Second Amended and Restated Credit Agreement | Four Consecutive Quarters Following Designated Acquisition
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	350.00%
Second Amended and Restated Credit Agreement | Term Loan
Debt Instrument [Line Items]
Long-term debt including current maturities						$ 65,600,000
Second Amended and Restated Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity								$ 225,000,000
Third Amendment
Debt Instrument [Line Items]
Debt instrument, frequency of periodic payment			quarterly
Revolving credit facility maturity year			2021-05
Third Amendment | Term Loan
Debt Instrument [Line Items]
Long-term debt including current maturities		$ 90,600,000
Quarterly installments payable on term loan		2,300,000
Debt instrument, final installment amount		56,100,000
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
Fourth Amendment
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	350.00%
Fourth Amendment | Permitted Acquisitions and Stock Repurchases
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	300.00%
Fourth Amendment | Designated Acquisition
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	350.00%
Fourth Amendment | Four Consecutive Quarters Following Designated Acquisition
Debt Instrument [Line Items]
Maximum consolidated leverage ratio	400.00%

Share-based Compensation - Shar

Share-based Compensation - Share-Based Compensation Expense Recorded in the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,695	$ 1,436	$ 5,475	$ 4,223
Selling, general and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	1,523	1,336	5,021	3,911
Research and development and engineering
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	114	59	306	156
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 58	$ 41	$ 148	$ 156

Share-based Compensation - Addi

Share-based Compensation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense recognized	$ 1,695	$ 1,436	$ 5,475	$ 4,223
Selling, General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense recognized	$ 1,523	$ 1,336	5,021	3,911
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
Restricted Stock Units (RSUs) | 2010 Incentive Award Plan | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
Restricted Stock Units (RSUs) | 2010 Incentive Award Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			5 years
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			$ 10,200
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%

Share-based Compensation - Rest

Share-based Compensation - Restricted Stock Units Issued and Outstanding (Details) - 2010 Incentive Award Plan - Restricted Stock Units (RSUs) shares in Thousands	9 Months Ended
	Sep. 28, 2018$ / sharesshares
Restricted Stock Units
Unvested, Beginning Balance	614
Granted	123
Vested	(186)
Forfeited	(27)
Unvested, Ending Balance	524
Expected to vest at end of period	500
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 18.35
Granted | $ / shares	54.36
Vested | $ / shares	18.52
Forfeited | $ / shares	24.53
Unvested, Ending Balance | $ / shares	$ 26.39

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. 28, 2018$ / sharesshares
Performance-based Awards
Unvested, Beginning Balance | shares	89
Granted | shares	48
Unvested, Ending Balance | shares	137
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 24
Granted | $ / shares	62.17
Unvested, Ending Balance | $ / shares	$ 37.28

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. 28, 2018$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant-date stock price	$ 53.85
Expected volatility	30.35%
Risk-free interest rate	2.37%
Expected annual dividend yield	0.00%
Fair value	$ 70.49

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017	Dec. 31, 2017	Sep. 27, 2018	Jan. 10, 2017
Income Taxes [Line Items]
Statutory tax rate	21.00%		21.00%		35.00%
Effective tax rate on income from operations	19.50%	11.90%	17.30%	11.60%
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%
Additional income tax provision from revaluation of certain deferred tax assets and liabilities at the new tax rate					$ 2,800
Income tax measurement period under ASU 2018-05			1 year
Laser Quantum
Income Taxes [Line Items]
Percentage of additional shares acquired						24.00%	35.00%
Canada Revenue Agency | CANADA
Income Taxes [Line Items]
Statutory tax rate	29.00%	29.00%	29.00%	29.00%

Schedule of Restructuring, Acqu

Schedule of Restructuring, Acquisition and Divestiture Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Restructuring Cost And Reserve [Line Items]
Total restructuring and divestiture related charges	$ 137		$ 1,125	$ 200
Acquisition and related charges	2,204	$ 3,834	3,680	6,032
Total restructuring, acquisition and divestiture related costs	2,341	$ 3,834	4,805	6,232
2018 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring and divestiture related charges	$ 137		$ 1,125
2016 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring and divestiture related charges				186
2011 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring and divestiture related charges				$ 14

Restructuring, Acquisition an_3

Restructuring, Acquisition and Divestiture Related Costs - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended	39 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017	Sep. 27, 2019	Sep. 28, 2018
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs	$ 137		$ 1,125	$ 200
Acquisition and related charges	2,204	$ 3,834	3,680	6,032
Finders' Fees, Legal, Valuation And Other Professional Or Consulting Fees
Restructuring and Acquisition Related Costs [Line Items]
Acquisition and related charges		$ 3,800		6,000
Precision Motion | Finders' Fees, Legal, Valuation And Other Professional Or Consulting Fees
Restructuring and Acquisition Related Costs [Line Items]
Acquisition and related charges	500		900
Precision Motion | Earn-out Agreement
Restructuring and Acquisition Related Costs [Line Items]
Acquisition and related charges	1,700		2,800
2018 Restructuring
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs	137		$ 1,125
2018 Restructuring | Vision
Restructuring and Acquisition Related Costs [Line Items]
Restructuring plan			During the second quarter of 2018, the Company initiated a program to integrate manufacturing operations as a result of recent acquisition activities. During the three and nine months ended September 28, 2018, the Company recorded $0.1 million and $1.1 million, respectively, in severance and related costs in connection with the 2018 restructuring plan. These costs were reported in the Vision reportable segment. The Company anticipates completing the 2018 restructuring program during the third quarter of 2019 and expects to incur additional restructuring charges of $1.2 million to $1.5 million related to the 2018 restructuring program in the Vision reportable segment in the next twelve months.
2018 Restructuring | Vision | Severance Costs
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs	$ 100		$ 1,100
2018 Restructuring | Vision | Additional Restructuring Costs | Minimum | Scenario, Forecast
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs					$ 1,200
2018 Restructuring | Vision | Additional Restructuring Costs | Maximum | Scenario, Forecast
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs					$ 1,500
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 manufacturing operations to optimize its facility footprint and better utilize resources, and reducing redundant costs due to productivity cost savings and business volume reductions. As of September 28, 2018, the Company incurred cumulative costs related to this restructuring plan totaling $6.5 million. The plan was completed in 2017.
Restructuring Costs				$ 186
2016 Restructuring | Cumulative Restructuring Costs
Restructuring and Acquisition Related Costs [Line Items]
Restructuring Costs						$ 6,500

Summary of Accrual Activities b

Summary of Accrual Activities by Components Related to Company's Restructuring Charges (Details) $ in Thousands	9 Months Ended
	Sep. 28, 2018USD ($)
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	$ 806
Restructuring charges	1,125
Cash payments	(512)
Non-cash write-offs and other adjustments	(11)
Accrued expense ending balance	1,408
Severance
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	39
Restructuring charges	1,082
Cash payments	(187)
Non-cash write-offs and other adjustments	(11)
Accrued expense ending balance	923
Facility
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	763
Cash payments	(282)
Accrued expense ending balance	481
Other Restructuring Charges
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	4
Restructuring charges	43
Cash payments	(43)
Accrued expense ending balance	$ 4

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	May 31, 2018	Sep. 28, 2018
First Amendment to Amended and Restated Lease
Commitments and Contingencies Disclosure [Line Items]
Lease agreement term	12 years
Lease expiration date	May 31, 2031
Lease annual rental payment	$ 1.8
Increase in annual lease rental payments rate	2.50%
Future minimum lease payments		$ 26.4
Existing Lease Agreement
Commitments and Contingencies Disclosure [Line Items]
Lease expiration date	May 31, 2019

Redeemable Noncontrolling Int_3

Redeemable Noncontrolling Interest- Additional Information (Details) £ in Millions	Sep. 27, 2018USD ($)shares	Sep. 28, 2018USD ($)shares	Sep. 28, 2018USD ($)shares	Jan. 10, 2017USD ($)	Jan. 10, 2017GBP (£)	Dec. 31, 2016
Minority Interest [Line Items]
Consideration transferred in cash			$ 30,800,000
Laser Quantum
Minority Interest [Line Items]
Percentage of equity interest held before acquisition						41.00%
Percentage of equity interest held after acquisition				76.00%	76.00%
Initial fair value of noncontrolling interest				$ 21,600,000	£ 17.7
Percentage of outstanding shares acquired	24.00%
Consideration transferred in cash and restricted stock for percentage of shares acquired	$ 45,100,000
Consideration transferred in cash	$ 30,700,000
Gain (loss) recognized on acquisition		$ 0	$ 0
Laser Quantum | Restricted Stock
Minority Interest [Line Items]
Consideration transferred in restricted stock shares | shares	213,219	213,219	213,219
Vesting date			Dec. 31, 2025

Redeemable Noncontrolling Int_4

Redeemable Noncontrolling Interest- Summary of Changes in Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Noncontrolling Interest [Abstract]
Balance as of December 31, 2017			$ 46,923
Net income attributable to noncontrolling interest	$ 435	$ 834	1,986	$ 1,444
Redeemable noncontrolling interest redemption value adjustment	$ (6,877)	$ 7,585	(1,781)	$ 11,303
Foreign currency translation			(1,926)
Acquisition of noncontrolling interest			$ (45,202)

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Related Party Transaction [Line Items]
Revenue	$ 160,794	$ 146,296	$ 458,159	$ 374,372
Board of Directors
Related Party Transaction [Line Items]
Revenue	9,400		29,700
Receivables from customers	$ 3,900		$ 3,900

Segment Information - Additiona

Segment Information - Additional Information (Details)	9 Months Ended
	Sep. 28, 2018SegmentEndMarket
Segment Reporting [Abstract]
Number of reportable segments | Segment	3
Number of primary end market segments | EndMarket	2

Revenue, Gross Profit, Gross Pr

Revenue, Gross Profit, Gross Profit Margin and Operating Income (Loss) from Continuing Operations by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Segment Reporting Information [Line Items]
Revenue	$ 160,794	$ 146,296	$ 458,159	$ 374,372
Gross Profit	$ 69,634	$ 58,707	$ 197,022	$ 158,290
Gross profit margin percentage	43.30%	40.10%	43.00%	42.30%
Operating Income (Loss)	$ 20,995	$ 12,407	$ 55,337	$ 38,493
Photonics
Segment Reporting Information [Line Items]
Revenue	61,285	61,882	187,178	170,503
Gross Profit	$ 29,218	$ 28,966	$ 89,510	$ 77,423
Gross profit margin percentage	47.70%	46.80%	47.80%	45.40%
Operating Income (Loss)	$ 14,595	$ 15,367	$ 46,102	$ 36,138
Vision
Segment Reporting Information [Line Items]
Revenue	62,113	58,150	172,145	124,943
Gross Profit	$ 24,160	$ 19,792	$ 64,322	$ 47,378
Gross profit margin percentage	38.90%	34.00%	37.40%	37.90%
Operating Income (Loss)	$ 5,380	$ 846	$ 6,246	$ 4,893
Precision Motion
Segment Reporting Information [Line Items]
Revenue	37,396	26,264	98,836	78,926
Gross Profit	$ 16,788	$ 10,291	$ 44,750	$ 34,558
Gross profit margin percentage	44.90%	39.20%	45.30%	43.80%
Operating Income (Loss)	$ 8,818	$ 5,493	$ 25,037	$ 20,238
Unallocated Corporate and Shared Services
Segment Reporting Information [Line Items]
Gross Profit	(532)	(342)	(1,560)	(1,069)
Operating Income (Loss)	$ (7,798)	$ (9,299)	$ (22,048)	$ (22,776)

Depreciation and Amortization E

Depreciation and Amortization Expenses by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Depreciation and Amortization Expenses
Depreciation and amortization expenses	$ 9,199	$ 8,864	$ 27,386	$ 22,440
Photonics
Depreciation and Amortization Expenses
Depreciation and amortization expenses	2,997	3,666	9,030	10,693
Vision
Depreciation and Amortization Expenses
Depreciation and amortization expenses	5,100	4,362	15,371	9,276
Precision Motion
Depreciation and Amortization Expenses
Depreciation and amortization expenses	1,020	588	2,364	1,746
Unallocated Corporate and Shared Services
Depreciation and Amortization Expenses
Depreciation and amortization expenses	$ 82	$ 248	$ 621	$ 725

Schedule of Geographic Revenue

Schedule of Geographic Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Segment Reporting Information [Line Items]
Revenue	$ 160,794	$ 146,296	$ 458,159	$ 374,372
UNITED STATES
Segment Reporting Information [Line Items]
Revenue	63,073	58,949	181,653	157,778
GERMANY
Segment Reporting Information [Line Items]
Revenue	23,089	17,728	64,170	46,807
Rest Of Europe
Segment Reporting Information [Line Items]
Revenue	30,222	27,152	80,629	55,164
CHINA
Segment Reporting Information [Line Items]
Revenue	17,516	15,459	51,486	40,920
Rest of Asia-Pacific
Segment Reporting Information [Line Items]
Revenue	24,882	23,769	74,589	64,511
Other Countries
Segment Reporting Information [Line Items]
Revenue	$ 2,012	$ 3,239	$ 5,632	$ 9,192

Schedule of Revenue by end mark

Schedule of Revenue by end market (Details)	3 Months Ended		9 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Sep. 28, 2018	Sep. 29, 2017
Segment Reporting Information [Line Items]
Total revenue by end market	100.00%	100.00%	100.00%	100.00%
Advanced Industrial
Segment Reporting Information [Line Items]
Total revenue by end market	50.00%	50.00%	50.00%	55.00%
Medical
Segment Reporting Information [Line Items]
Total revenue by end market	50.00%	50.00%	50.00%	45.00%