Novanta (NOVT) 10-Q 6 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 28, 2019	Aug. 01, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 28, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Trading Symbol	NOVT
Entity Registrant Name	NOVANTA INC
Entity Central Index Key	0001076930
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		35,116,040
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-35083
Entity Tax Identification Number	98-0110412
Entity Address, Address Line One	125 Middlesex Turnpike
Entity Address, City or Town	Bedford
Entity Address, State or Province	MA
Entity Address, Country	US
Entity Address, Postal Zip Code	01730
City Area Code	781
Local Phone Number	266-5700
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	A3
Entity Interactive Data Current	Yes
Security Exchange Name	NASDAQ
Title of 12(b) Security	Common shares, no par value

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 66,093	$ 82,043
Accounts receivable, net of allowance of $283 and $321, respectively	88,831	83,955
Inventories	113,297	104,764
Prepaid income taxes and income taxes receivable	4,989	1,852
Prepaid expenses and other current assets	11,701	9,155
Total current assets	284,911	281,769
Property, plant and equipment, net	64,630	65,464
Operating lease assets	38,633
Deferred tax assets	9,862	9,492
Other assets	2,191	2,269
Intangible assets, net	152,775	142,920
Goodwill	230,371	217,662
Total assets	783,373	719,576
Current liabilities
Current portion of long-term debt		4,535
Accounts payable	50,015	50,733
Income taxes payable	2,121	2,633
Current portion of operating lease liabilities	5,225
Accrued expenses and other current liabilities	41,184	46,295
Total current liabilities	98,545	104,196
Long-term debt	214,562	202,843
Operating lease liabilities	35,108
Deferred tax liabilities	23,429	22,632
Income taxes payable	4,747	4,463
Other liabilities	20,800	17,187
Total liabilities	397,191	351,321
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common shares, no par value; Authorized shares: unlimited; Issued and outstanding: 34,972 and 34,886, respectively	423,856	423,856
Additional paid-in capital	41,065	46,018
Accumulated deficit	(56,459)	(79,092)
Accumulated other comprehensive loss	(22,280)	(22,527)
Total stockholders' equity	386,182	368,255
Total liabilities and stockholders’ equity	$ 783,373	$ 719,576

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 28, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 283	$ 321
Common shares, Authorized	Unlimited	Unlimited
Common shares, no par value	$ 0	$ 0
Common shares, Issued	34,972	34,886
Common shares, outstanding	34,972	34,886

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended				6 Months Ended
		Jun. 28, 2019		Jun. 29, 2018		Jun. 28, 2019		Jun. 29, 2018
Income Statement [Abstract]
Revenue		$ 155,145		$ 150,400		$ 312,331		$ 297,365
Cost of revenue		89,363		85,171		180,260		169,977
Gross profit		65,782		65,229		132,071		127,388
Operating expenses:
Research and development and engineering		13,388		12,551		27,385		24,540
Selling, general and administrative		29,204		29,231		61,051		58,451
Amortization of purchased intangible assets		3,772		3,893		7,770		7,591
Restructuring and acquisition related costs		4,313		2,439		6,367		2,464
Total operating expenses		50,677		48,114		102,573		93,046
Operating income		15,105		17,115		29,498		34,342
Interest income (expense), net		(2,160)		(2,561)		(4,204)		(4,919)
Foreign exchange transaction gains (losses), net		27		177		68		(230)
Other income (expense), net		(70)		(46)		(138)		(87)
Income before income taxes		12,902		14,685		25,224		29,106
Income tax provision		2,522		3,060		2,591		4,644
Consolidated net income		10,380	[1]	11,625	[2]	22,633	[1]	24,462	[2]
Less: Net income attributable to noncontrolling interest	[2]			(625)				(1,551)
Net income attributable to Novanta Inc.		$ 10,380	[1]	$ 11,000	[2]	$ 22,633	[1]	$ 22,911	[2]
Earnings per common share attributable to Novanta Inc. (Note 5):
Basic		$ 0.30	[1]	$ 0.32	[2]	$ 0.65	[1]	$ 0.51	[2]
Diluted		$ 0.29	[1]	$ 0.32	[2]	$ 0.64	[1]	$ 0.50	[2]
Weighted average common shares outstanding—basic		34,998	[1]	34,949	[2]	34,981	[1]	34,919	[2]
Weighted average common shares outstanding—diluted		35,503	[1]	35,474	[2]	35,491	[1]	35,451	[2]
[1]	45,252 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum former non-controlling interest holders are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of June 28, 2019.
[2]	53,968 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of June 29, 2018.

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended				6 Months Ended
		Jun. 28, 2019		Jun. 29, 2018		Jun. 28, 2019		Jun. 29, 2018
Statement Of Income And Comprehensive Income [Abstract]
Consolidated net income		$ 10,380	[1]	$ 11,625	[2]	$ 22,633	[1]	$ 24,462	[2]
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	[3]	(2,662)		(5,663)		(323)		(1,992)
Pension liability adjustments, net of tax	[4]	553		871		570		755
Total other comprehensive income		(2,109)		(4,792)		247		(1,237)
Total consolidated comprehensive income		8,271		6,833		22,880		23,225
Less: Comprehensive income attributable to noncontrolling interest				(625)				(1,551)
Comprehensive income attributable to Novanta Inc.		$ 8,271		$ 6,208		$ 22,880		$ 21,674
[1]	45,252 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum former non-controlling interest holders are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of June 28, 2019.
[2]	53,968 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of June 29, 2018.
[3]	The tax effect on this component of comprehensive income was nominal for all periods presented.
[4]	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 STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total		Common Shares	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2017	$ 311,545		$ 423,856	$ 33,309	$ (127,740)	$ (17,880)
Balance (in shares) at Dec. 31, 2017			34,595
Net income	22,911	[1]			22,911
Redeemable noncontrolling interest redemption value adjustment	(5,096)	[1]			(5,096)
Common stock issued under stock plans (in shares)			166
Shares withheld for taxes on vested stock awards	(3,367)			(3,367)
Shares withheld for taxes on vested stock awards (in shares)			(61)
Repurchases of common stock	(1,929)			(1,929)
Repurchases of common stock (in shares)			(29)
Share-based compensation	3,780			3,780
Adoption of ASU 2016-16 | ASU 2016-16	(2,242)				(2,242)
Other comprehensive income, net of tax	(1,237)					(1,237)
Balance at Jun. 29, 2018	324,365		$ 423,856	31,793	(112,167)	(19,117)
Balance (in shares) at Jun. 29, 2018			34,671
Balance at Mar. 30, 2018	318,610		$ 423,856	32,549	(123,470)	(14,325)
Balance (in shares) at Mar. 30, 2018			34,685
Net income	11,000	[1]			11,000
Redeemable noncontrolling interest redemption value adjustment	303	[1]			303
Common stock issued under stock plans (in shares)			25
Shares withheld for taxes on vested stock awards	(563)			(563)
Shares withheld for taxes on vested stock awards (in shares)			(10)
Repurchases of common stock	(1,929)			(1,929)
Repurchases of common stock (in shares)			(29)
Share-based compensation	1,736			1,736
Other comprehensive income, net of tax	(4,792)					(4,792)
Balance at Jun. 29, 2018	324,365		$ 423,856	31,793	(112,167)	(19,117)
Balance (in shares) at Jun. 29, 2018			34,671
Balance at Dec. 31, 2018	368,255		$ 423,856	46,018	(79,092)	(22,527)
Balance (in shares) at Dec. 31, 2018			34,886
Net income	22,633	[2]			22,633
Common stock issued under stock plans (in shares)			209
Shares withheld for taxes on vested stock awards	(6,719)			(6,719)
Shares withheld for taxes on vested stock awards (in shares)			(84)
Repurchases of common stock	(3,339)			(3,339)
Repurchases of common stock (in shares)			(39)
Share-based compensation	5,105			5,105
Other comprehensive income, net of tax	247					247
Balance at Jun. 28, 2019	386,182		$ 423,856	41,065	(56,459)	(22,280)
Balance (in shares) at Jun. 28, 2019			34,972
Balance at Mar. 29, 2019	379,701		$ 423,856	42,855	(66,839)	(20,171)
Balance (in shares) at Mar. 29, 2019			34,998
Net income	10,380	[2]			10,380
Common stock issued under stock plans (in shares)			23
Shares withheld for taxes on vested stock awards	(829)			(829)
Shares withheld for taxes on vested stock awards (in shares)			(10)
Repurchases of common stock	(3,339)			(3,339)
Repurchases of common stock (in shares)			(39)
Share-based compensation	2,378			2,378
Other comprehensive income, net of tax	(2,109)					(2,109)
Balance at Jun. 28, 2019	$ 386,182		$ 423,856	$ 41,065	$ (56,459)	$ (22,280)
Balance (in shares) at Jun. 28, 2019			34,972
[1]	53,968 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of June 29, 2018.
[2]	45,252 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum former non-controlling interest holders are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of June 28, 2019.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2019		Jun. 29, 2018
Cash flows from operating activities:
Consolidated net income	$ 22,633	[1]	$ 24,462	[2]
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	18,114		18,187
Provision for inventory excess and obsolescence	1,426		1,165
Share-based compensation	5,105		3,780
Deferred income taxes	(2,037)		(1,221)
Inventory acquisition fair value adjustments	175
Other	1,294		278
Changes in assets and liabilities which (used)/provided cash, excluding effects from business acquisitions:
Accounts receivable	(3,150)		6,526
Inventories	(8,162)		(6,544)
Prepaid income taxes, income taxes receivable, prepaid expenses and other current assets	(5,168)		(619)
Accounts payable, income taxes payable, accrued expenses and other current liabilities	(10,580)		(5,094)
Other non-current assets and liabilities	1,203		(555)
Cash provided by operating activities	20,853		40,365
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired and working capital adjustments	(28,884)		(27,445)
Purchases of property, plant and equipment	(5,601)		(7,259)
Other investing activities	41		72
Cash used in investing activities	(34,444)		(34,632)
Cash flows from financing activities:
Borrowings under revolving credit facility	23,643		30,272
Repayments of term loan and revolving credit facility	(16,100)		(21,832)
Payments of withholding taxes from stock-based awards	(6,719)		(3,367)
Repurchases of common stock	(3,339)		(1,929)
Acquisition of noncontrolling interest			(148)
Other financing activities	(283)		(284)
Cash provided by (used in) financing activities	(2,798)		2,712
Effect of exchange rates on cash and cash equivalents	439		(1,241)
Increase (decrease) in cash and cash equivalents	(15,950)		7,204
Cash and cash equivalents, beginning of the period	82,043		100,057
Cash and cash equivalents, end of the period	66,093		107,261
Supplemental disclosure of cash flow information:
Cash paid for interest	3,899		4,424
Cash paid for income taxes	7,858		12,041
Income tax refunds received	$ 407		$ 599
[1]	45,252 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum former non-controlling interest holders are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of June 28, 2019.
[2]	53,968 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of June 29, 2018.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 28, 2019
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, 2018. In the opinion of management, these interim consolidated financial statements include all adjustments and accruals of a normal and recurring nature necessary to fairly state the results of the interim periods presented. The results for interim periods are not necessarily indicative of results to be expected for the full year or for any future periods. The Company’s unaudited interim 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 August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 should be applied either retrospectively or prospectively. January 1, 2020. Early adoption is permitted. The Company adopted ASU 2018-15 on a prospective basis during the first quarter of 2019. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements. 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 under the Tax Reform Act is recognized. January 1, 2019. The Company adopted ASU 2018-02 during the first quarter of 2019. The adoption of ASU 2018-02 did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” 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. January 1, 2019. The Company adopted ASU 2016-02 during the first quarter of 2019 using the modified retrospective approach. In addition, the Company elected the package of practical expedients permitted under the transition guidance. The adoption of ASU 2016-02 resulted in the recording of additional operating lease right-of-use (“ROU”) assets and operating lease liabilities of approximately $35.3 million and $36.5 million, respectively, as of January 1, 2019. The adoption of ASU 2016-02 did not have an impact on the Company’s Accumulated deficit, consolidated statement of operations, or consolidated statement of cash flows.

Revenue

Revenue	6 Months Ended
	Jun. 28, 2019
Revenue From Contract With Customer [Abstract]
Revenue	2. Revenue The Company recognizes revenue when control of promised goods or services is transferred to customers. The transfer of control generally occurs upon shipment when title and risk of loss pass to the customer. The vast majority of the Company’s revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for such products, which is generally at contractually stated prices. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Performance Obligations Substantially all of the Company’s revenue is recognized at a point in time, upon shipment, rather than over time. At the request of its customers, the Company may perform professional services, generally for the maintenance and repair of products previously sold to those customers and for engineering services. Professional services are typically short in duration, mostly less than one month, and aggregate to 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. Shipping & Handling Costs The Company accounts for shipping and handling activities that occur after the transfer of control over the related goods as fulfillment activities rather than performance obligations. 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. 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 June 28, 2019 and December 31, 2018, contract liabilities were $2.9 million and $4.7 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 six months ended June 28, 2019 is primarily due to $3.2 million of revenue recognized during the period that was included in the contract liability balance at December 31, 2018, 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	6 Months Ended
	Jun. 28, 2019
Business Combinations [Abstract]
Business Combinations	3. Business Combinations Med X Change On June 5, 2019, the Company acquired 100% of the outstanding stock of Med X Change, Inc. (“Med X Change”), a Bradenton, Florida-based provider of medical grade, high definition and 4K video recording and documentation solutions to OEMs in the medical market. The purchase price of $21.8 million, subject to customary working capital adjustments, was financed with cash on hand and a $21.0 million draw-down on the Company’s revolving credit facility. The addition of Med X Change complements and broadens the range of technology capabilities within the Company’s Vision reportable segment by providing its medical OEM customers with more integrated operating room solutions. Ingenia On April 16, 2019, the Company acquired 100% of the outstanding stock of Ingenia-CAT, S.L. (“Ingenia”), a Barcelona, Spain-based provider of high-performance servo drives and control software to OEMs in the medical and advanced industrial markets. The purchase price of €14.3 million ($16.2 million), subject to working capital adjustments, was financed with cash on hand and borrowings under the Company’s revolving credit facility. The purchase price includes €8.5 million ($9.6 million) of cash consideration and €5.8 million ($6.6 million) in estimated fair value of contingent consideration payable upon the achievement of certain revenue targets from April 2019 through March 2022. The undiscounted range of contingent consideration is zero to €8.0 million. The Ingenia purchase and sale agreement requires €0.9 million ($1.0 million) of the purchase price to be held by the Company which can be utilized as indemnification for certain representations and warranties claims by the Company until the expiration of the holdback agreement in October 2021. The addition of Ingenia enhances the Company’s strategic position in precision motion control industry by enabling it to offer a broader range of motion control technologies and integrated solutions. Ingenia is included in the Company’s Precision Motion reportable segment. Allocation of Purchase Price The acquisitions of Med X Change and Ingenia have been accounted for as business combinations. 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 developed by management. 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, contingent consideration and unrecognized tax benefits. Based upon a preliminary valuation, the total purchase price for Med X Change and Ingenia was allocated as follows (in thousands): Purchase Allocation Cash $ 1,000 Accounts receivable 1,739 Inventories 2,372 Property, plant and equipment 565 Intangible assets 22,376 Goodwill 13,394 Other assets 601 Total assets acquired 42,047 Accounts payable 604 Deferred tax liabilities 2,550 Other liabilities 910 Total liabilities assumed 4,064 Total assets acquired, net of liabilities assumed 37,983 Less: cash acquired 1,000 Total purchase price, net of cash acquired 36,983 Less: contingent consideration 6,569 Less: purchase price holdback 961 Less: working capital adjustment 569 Net cash used for acquisition of businesses $ 28,884 The fair value of intangible assets for Med X Change and Ingenia is comprised of the following (dollar amounts in thousands): Weighted Average Estimated Fair Amortization Value Period Developed technologies $ 11,072 10 years Customer relationships 10,465 15 years Trademarks and trade names 639 9 years Backlog 200 7 months Total $ 22,376 The Company recorded an aggregate of $22.4 million of identifiable intangible assets and $13.4 million of goodwill from these acquisitions. Goodwill amounting to $6.0 million from the Med X Change acquisition is expected to be fully 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) their ability to grow the business with existing and new customers, including leveraging the Company’s customer base; (ii) their ability to grow business through new product introductions; and (iii) cost improvements due to the integration of Med X Change and Ingenia operations into the Company’s existing infrastructure. The operating results of Med X Change and Ingenia were included in the Company’s results of operations beginning on the respective acquisition dates. These acquisitions contributed revenues of $1.0 million and a loss before income taxes of $0.5 million for the six months ended June 28, 2019. Loss before income taxes for the six months ended June 28, 2019 included amortization of inventory fair value adjustments and amortization of purchased intangible assets of $0.4 million. The pro forma financial information reflecting the operating results of Med X Change and Ingenia, as if they had been acquired as of January 1, 2018, would not differ materially from the operating results of the Company as reported for the year ended December 31, 2018. Acquisition Costs Acquisition costs are included in restructuring and acquisition related costs in the consolidated statements of operations. Acquisition costs for Ingenia and Med X Change were $0.5 million for the six months ended June 28, 2019.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 28, 2019
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, 2018 $ (22,527 ) $ (12,485 ) $ (10,042 ) Other comprehensive income (loss) (254 ) (323 ) 69 Amounts reclassified from accumulated other comprehensive income (loss) (1) 501 — 501 Balance at June 28, 2019 $ (22,280 ) $ (12,808 ) $ (9,472 ) (1) The amounts reclassified from other comprehensive income (loss) were included in other income (expense) in the consolidated statements of operations.

Earnings per Common Share

Earnings per Common Share	6 Months Ended
	Jun. 28, 2019
Earnings Per Share [Abstract]
Earnings per Common Share	5. Earnings per Common Share Basic 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 recognized changes in the redeemable noncontrolling interest redemption value by adjusting the carrying amount of the redeemable noncontrolling interest as of the end of the applicable period to the higher of: (i) the estimated redemption value assuming the end of the period was also the redemption date or (ii) the carrying value without any redemption value adjustments. Such adjustments were 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 were included in the calculation of the numerator. For diluted earnings per common share, the denominator also includes the dilutive effect of outstanding common share equivalents. For the three and six months ended June 28, 2019 and June 29, 2018, respectively, weighted average shares outstanding for the diluted earnings per share included the dilutive effect of outstanding restricted stock units, stock options, total shareholder return performance-based restricted stock units and the 2017 non-GAAP EPS performance-based restricted stock units, determined using the treasury stock method. The dilutive effects of market-based contingently issuable shares are included in the weighted average dilutive share calculation based on the number of shares, if any, that would be issuable as of the end of the reporting period. Dilutive effects of attainment-based contingently issuable shares granted to the former Laser Quantum noncontrolling interest shareholders, as well as the 2018 and 2019 non-GAAP EPS performance-based restricted stock units will be included in the weighted average dilutive share calculation when the performance targets have been achieved. The following table sets forth the computation of basic and diluted earnings per common share (amounts in thousands, except per share data): Three Six Months Ended June 28, June 29, June 28, June 29, 2019 (1) 2018 (2) 2019 (1) 2018 (2) Numerators: Consolidated net income $ 10,380 $ 11,625 $ 22,633 $ 24,462 Less: Net income attributable to noncontrolling interest — (625 ) — (1,551 ) Net income attributable to Novanta Inc. 10,380 11,000 22,633 22,911 Redeemable noncontrolling interest redemption value adjustment — 303 — (5,096 ) Net income attributable to Novanta Inc. after adjustment for redeemable noncontrolling interest redemption value $ 10,380 $ 11,303 $ 22,633 $ 17,815 Denominators: Weighted average common shares outstanding— basic 34,998 34,949 34,981 34,919 Dilutive potential common shares 505 525 510 532 Weighted average common shares outstanding— diluted 35,503 35,474 35,491 35,451 Antidilutive potential common shares excluded from above 36 — 47 6 Earnings per Common Share Attributable to Novanta Inc.: Basic $ 0.30 $ 0.32 $ 0.65 $ 0.51 Diluted $ 0.29 $ 0.32 $ 0.64 $ 0.50 (1) 45,252 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum former non-controlling interest holders are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of June 28, 2019. (2) 53,968 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of June 29, 2018.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 28, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	6. Fair Value Measurements ASC 820, “Fair Value Measurements,” establishes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the third is considered unobservable: • Level 1: Quoted prices for identical assets or liabilities in active markets which the Company can access • Level 2: Observable inputs other than those described in Level 1 • Level 3: Unobservable inputs Current Assets and Liabilities The Company’s cash equivalents are highly liquid investments with original maturities of three months or less, which represent an asset the Company measures at fair value on a recurring basis. The Company determines the fair value of cash equivalents using a market approach based on quoted prices in active markets. The fair values of cash, accounts receivable, income taxes receivable, accounts payable, income taxes payable and accrued expenses and other current liabilities approximate their carrying values because of their short-term nature. Foreign Currency Contracts The Company addresses market risks from changes in foreign currency exchange rates through a risk management program that includes the use of derivative financial instruments to mitigate certain balance sheet foreign currency transaction exposures. The Company uses foreign currency forward contracts as a part of its strategy to manage exposures related to foreign currency denominated monetary assets and liabilities. The fair value of these foreign currency forward contracts is reported either in other current assets or in other current liabilities as of the end of the period. Contingent Considerations On April 16, 2019, the Company acquired Ingenia-CAT, S.L. (“Ingenia”). Under the purchase and sale agreement for the Ingenia acquisition, the shareholders of Ingenia are eligible to receive contingent consideration based on the achievement of certain revenue targets from April 2019 through March 2022. The undiscounted range of possible contingent consideration is zero to €8.0 million. If the revenue targets are achieved, the contingent consideration would be payable in cash in three installments from 2020 to 2022. The estimated fair value of the contingent consideration of €5.8 million ($6.6 million) was determined based on the Monte Carlo valuation method and was recorded as part of the purchase price as of the acquisition date. Subsequent changes in the estimated fair value of the contingent consideration liability are recorded in the consolidated statement of operations in restructuring and acquisition related costs until the liability is fully settled. There have been no changes to the fair value of the contingent consideration since the acquisition date. On December 14, 2016, the Company acquired certain video signal processing and management technologies used in medical visualization solutions. Under the purchase and sale agreement, the former owners are eligible to receive contingent consideration based on the achievement of certain revenue targets from 2018 to 2021 by the Company from products using such technologies. 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. Subsequent changes in the estimated fair value of this contingent liability are recorded as adjustments to the carrying value of the asset acquired and amortized over the remaining useful life of the underlying asset. Based on revenue performance as of June 28, 2019 and the most recent revenue projections for the remainder of 2019 and fiscal years 2020 and 2021, the fair value of the contingent consideration was adjusted to $3.9 million as of June 28, 2019. Summary by Fair Value Hierarchy The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of June 28, 2019 (in thousands): Quoted Prices in Significant Other Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 3,184 $ 3,184 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 47 — 47 — $ 3,231 $ 3,184 $ 47 $ — Liabilities Accrued expenses and other current liabilities: Contingent consideration - Current $ 3,091 $ — $ — $ 3,091 Foreign currency forward contracts 31 — 31 — Other liabilities: Contingent consideration - Long-term 7,436 — — 7,436 $ 10,558 $ — $ 31 $ 10,527 The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 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 $ 4,288 $ 4,288 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 15 — 15 — $ 4,303 $ 4,288 $ 15 $ — Liabilities Accrued expenses and other current liabilities: Foreign currency forward contracts $ 182 $ — $ 182 $ — Other liabilities: Contingent consideration - Long-term 3,376 — — 3,376 $ 3,558 $ — $ 182 $ 3,376 Changes in the fair value of Level 3 contingent consideration during the six months ended June 28, 2019 were as follows (in thousands): Contingent Consideration Balance at December 31, 2018 $ 3,376 Acquisition of Ingenia 6,569 Fair value adjustments 547 Effect of foreign exchange rates 35 Balance at June 28, 2019 $ 10,527 The following table provides quantitative information associated with the fair value measurement of the Company’s Level 3 liabilities: Liability June 28, 2019 Fair Value (in thousands) Valuation Technique Unobservable Inputs Percentage Applied Contingent consideration (Ingenia) $6,604 Monte Carlo method Historical and projected revenues from April 2019 through March 2022 N/A Revenue volatility 31.3% Cost of debt 1.0% Revenue discount rate 14.3% Contingent consideration (Other) $3,923 Discounted cash flow method Historical and projected revenues for fiscal years 2018 to 2021 N/A Discount rate 22.8% Increases or decreases in the unobservable inputs noted above 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	6 Months Ended
	Jun. 28, 2019
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 s to counterparty risks on derivative instruments by entering into contracts with a diversified group of major financial institutions and by actively monitoring outstanding positions . The Company uses 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 currencies 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 June 28, 2019, the aggregate notional amount and fair value of the Company’s foreign currency forward contracts was $31.2 million and a net gain of less than $0.1 million, respectively. As of December 31, 2018, the aggregate notional amount and fair value of the Company’s foreign currency forward contracts was $31.2 million and a net loss of $0.2 million, respectively. The Company recognized an aggregate net gain of $0.4 million and $0.9 million for the three and six months ended June 28, 2019, respectively, and an aggregate net gain of $0.2 million and $0.9 million, respectively, for the three and six months ended June 29, 2018. These amounts were included in foreign exchange transaction gains (losses) in the consolidated statement of operations for all periods presented.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 28, 2019
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 an impairment may exist. The Company performed the most recent annual goodwill and indefinite-lived intangible asset impairment test as of the beginning of the second quarter of 2019 and noted no impairment of goodwill. The following table summarizes changes in goodwill during the six months ended June 28, 2019 (in thousands): Balance at beginning of the period $ 217,662 Goodwill acquired from acquisitions 13,394 Effect of foreign exchange rate changes (685 ) Balance at end of the period $ 230,371 Goodwill by reportable segment as of June 28, 2019 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 168,698 $ 160,661 $ 52,241 $ 381,600 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 66,237 $ 128,939 $ 35,195 $ 230,371 Goodwill by reportable segment as of December 31, 2018 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 168,955 $ 155,017 $ 44,919 $ 368,891 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 66,494 $ 123,295 $ 27,873 $ 217,662 Intangible Assets Intangible assets as of June 28, 2019 and December 31, 2018, respectively, are summarized as follows (in thousands): June 28, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and developed technologies $ 145,369 $ (91,250 ) $ 54,119 $ 134,034 $ (86,623 ) $ 47,411 Customer relationships 149,095 (70,733 ) 78,362 139,097 (64,174 ) 74,923 Customer backlog 1,925 (1,740 ) 185 1,738 (1,191 ) 547 Non-compete covenant — — — 2,514 (2,493 ) 21 Trademarks and trade names 16,509 (9,427 ) 7,082 15,915 (8,924 ) 6,991 Amortizable intangible assets 312,898 (173,150 ) 139,748 293,298 (163,405 ) 129,893 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 325,925 $ (173,150 ) $ 152,775 $ 306,325 $ (163,405 ) $ 142,920 All definite-lived intangible assets are amortized either on a straight-line basis or an economic benefit basis over their remaining estimated useful life. Amortization expense for patents and developed technologies is included in cost of revenue in the accompanying consolidated statements of operations. Amortization expense for customer relationships and definite-lived trademarks, trade names and other intangibles is included in operating expenses in the accompanying consolidated statements of operations. Amortization expense was as follows (in thousands): Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Amortization expense – cost of revenue $ 2,446 $ 2,489 $ 4,757 $ 4,969 Amortization expense – operating expenses 3,772 3,893 7,770 7,591 Total amortization expense $ 6,218 $ 6,382 $ 12,527 $ 12,560 Estimated amortization expense for each of the five succeeding years and thereafter as of June 28, 2019 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2019 (remainder of year) $ 5,052 $ 7,539 $ 12,591 2020 9,775 13,778 23,553 2021 9,798 12,846 22,644 2022 8,223 11,114 19,337 2023 7,031 9,423 16,454 Thereafter 14,240 30,929 45,169 Total $ 54,119 $ 85,629 $ 139,748

Supplementary Balance Sheet Inf

Supplementary Balance Sheet Information	6 Months Ended
	Jun. 28, 2019
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 June 28, December 31, 2019 2018 Raw materials $ 75,766 $ 69,008 Work-in-process 14,275 15,982 Finished goods 21,396 17,337 Demo and consigned inventory 1,860 2,437 Total inventories $ 113,297 $ 104,764 Accrued Expenses and Other Current Liabilities June 28, December 31, 2019 2018 Accrued compensation and benefits $ 14,877 $ 24,545 Accrued warranty 4,890 4,510 Contract liabilities, current portion 3,056 4,165 Other 18,361 13,075 Total $ 41,184 $ 46,295 Accrued Warranty Six Months Ended June 28, 2019 June 29, 2018 Balance at beginning of the period $ 4,510 $ 4,835 Provision charged to cost of revenue 1,477 1,235 Warranty liabilities from acquisitions 78 — Use of provision (1,167 ) (1,244 ) Foreign currency exchange rate changes (8 ) (55 ) Balance at end of the period $ 4,890 $ 4,771 Other Long Term Liabilities June 28, December 31, 2019 2018 Finance lease obligations $ 6,764 $ 7,275 Accrued pension liabilities 2,939 3,758 Accrued contingent considerations 7,436 3,376 Other 3,661 2,778 Total $ 20,800 $ 17,187

Debt

Debt	6 Months Ended
	Jun. 28, 2019
Debt Disclosure [Abstract]
Debt	10. Debt Debt consisted of the following (in thousands): June 28, December 31, 2019 2018 Senior Credit Facilities – term loan $ — $ 4,600 Less: unamortized debt issuance costs — (65 ) Total current portion of long-term debt $ — $ 4,535 Senior Credit Facilities – term loan $ 58,425 $ 69,925 Senior Credit Facilities – revolving credit facility 157,820 135,058 Less: unamortized debt issuance costs (1,683 ) (2,140 ) Total long-term debt $ 214,562 $ 202,843 Total Senior Credit Facilities $ 214,562 $ 207,378 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. Under the Third Amendment, the Company is required to pay quarterly scheduled principal repayments of $ 2.3 million beginning in October 2017, with the final installment of $ 56.1 million due upon maturity in May 2021 . The Company borrowed $ 23.6 million under the revolving credit facility in the six months ended June 28, 2019 to fund the acquisition of Ingenia and Med X Change. The Company repaid $ 16.1 million of its term loan in the six months ended June 28, 2019. In February 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 June 28, 2019. 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., Novanta Corporation, NDS Surgical Imaging LLC, Novanta Europe GmbH, Novanta UK Investments Holding Limited and Novanta Technologies UK Limited. The Second Amended and Restated Credit Agreement also contains customary events of default. Fair Value of Debt As of June 28, 2019 and December 31, 2018, the outstanding balance of the Company’s debt approximated its fair value based on current rates available to the Company for debt of similar maturities. The fair value of the Company’s debt is classified as Level 2 under the fair value hierarchy.

Leases

Leases	6 Months Ended
	Jun. 28, 2019
Leases [Abstract]
Leases	11. Leases The Company leases certain equipment and facilities. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Many of these leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area maintenance or other property management costs). The Company accounts for lease and non-lease components separately. Leases with an initial term of 12 months or less are not recognized on the balance sheet. Most leases held by the Company expire between 2019 and 2034. In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078. Certain leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years, and some include options to terminate the leases within one year. The exercise of lease renewal or termination option is at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable life of right-of-use assets and leasehold improvements is limited to the expected lease terms. Most leases held by the Company do not provide an implicit rate. The Company uses its incremental borrowing rate for the same jurisdiction and term as the associated lease based on the information available at the lease commencement date to determine the present value of the lease payments. The Company used the incremental borrowing rate as of January 1, 2019 for operating leases that commenced prior to that date. The Company has a centrally managed treasury function; therefore, the Company applies a portfolio approach for determining the incremental borrowing rate based on the applicable lease terms and the current economic environment. The following table summarizes the components of lease costs (in thousands): Three Months Ended Six Months Ended June 28, June 28, 2019 2019 Operating lease cost $ 2,042 $ 3,865 Finance lease cost Amortization of right-of-use assets 177 355 Interest on lease liabilities 101 206 Variable lease cost 408 546 Total lease cost $ 2,728 $ 4,972 The following table provides the details of balance sheet information related to leases (in thousands, except lease term and discount rate): June 28, 2019 Operating leases Operating lease right-of-use assets $ 38,633 Current portion of operating lease liabilities $ 5,225 Operating lease liabilities 35,108 Total operating lease liabilities $ 40,333 Finance leases Property, plant and equipment, gross $ 13,511 Accumulated depreciation (7,267 ) Property, plant and equipment, net $ 6,244 Accrued expenses and other current liabilities $ 618 Other liabilities 6,764 Total finance lease liabilities $ 7,382 Weighted-average remaining lease term (in years) Operating leases 10.8 Finance leases 9.8 Weighted-average discount rate Operating leases 5.71 % Finance leases 5.49 % The following table provides the details of cash flow information related to leases (in thousands): Six Months Ended June 28, 2019 Cash paid for amounts included in lease liabilities Operating cash flows from finance leases $ 294 Operating cash flows from operating leases $ 4,264 Financing cash flows from finance leases $ 283 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5,471 Future minimum lease payments under operating and finance leases expiring subsequent to June 28, 2019, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands): Year Ending December 31, Operating Lease Finance Lease 2019 (remainder of year) $ 3,878 $ 499 2020 6,240 980 2021 6,090 907 2022 5,340 907 2023 4,687 930 Thereafter 29,138 5,394 Total minimum lease payments 55,373 9,617 Less: Interest (15,040 ) (2,235 ) Present value of lease liabilities $ 40,333 $ 7,382 Future minimum lease payments under operating and capital leases expiring subsequent to December 31, 2018 under Accounting Standard Codification Topic 840, “Leases”, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands): Year Ending December 31, Operating Lease (1) Capital Lease 2019 $ 7,797 $ 990 2020 6,263 980 2021 5,757 907 2022 5,264 907 2023 4,719 930 Thereafter 26,149 5,394 Total minimum lease payments $ 55,949 $ 10,108 (1) Future minimum lease payments as of December 31, 2018 included common-area maintenance and other property management costs and tax obligations.

Common Shares and Share-Based C

Common Shares and Share-Based Compensation	6 Months Ended
	Jun. 28, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Common Shares and Share-Based Compensation	12. Common Shares and Share-Based Compensation Common Share Repurchases In October 2018, the Company’s Board of Directors approved a share repurchase plan (the “2018 Repurchase Plan”) authorizing the repurchase of $25.0 million worth of the Company’s common shares. During the six months ended June 28, 2019, the Company repurchased 39 thousand shares for an aggregate purchase price of $3.3 million at an average price of $84.75 per share under the 2018 Repurchase Plan. Share-Based Compensation Expense The table below summarizes share-based compensation expense recorded in the consolidated statements of operations (in thousands): Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Selling, general and administrative $ 2,089 $ 1,574 $ 4,620 $ 3,498 Research and development and engineering 184 108 295 192 Cost of revenue 105 54 190 90 Total share-based compensation expense $ 2,378 $ 1,736 $ 5,105 $ 3,780 Share-based compensation reported in selling, general and administrative expenses included expenses related to restricted stock units and deferred stock units granted to the members of the Company’s Board of Directors of $0.9 million during the six months ended June 28, 2019. Share-based compensation reported in selling, general and administrative expenses included expenses related to deferred stock units granted to the members of the Company’s Board of Directors of $ million during the six months ended June 29, 2018 . Restricted Stock Units and Deferred Stock Units The Company’s restricted stock units (“RSUs”) have generally been issued with vesting periods ranging from zero to five years and vest based solely on service conditions. Accordingly, the Company recognizes compensation expense on a straight-line basis over the requisite service period. The Company reduces the compensation expense by an estimated forfeiture rate which is based on anticipated forfeitures and historical forfeiture experience. Deferred stock units (“DSUs”) are granted to the members of the Company’s Board of Directors. Compensation expense associated with DSUs is recognized in full on the date of grant, as the DSUs are fully vested and non-forfeitable upon grant. There were 187 thousand and 179 thousand DSUs outstanding as of June 28, 2019 and December 31, 2018, respectively, which were included in the calculation of weighted average basic shares outstanding for the respective periods. The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the six months ended June 28, 2019: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2018 529 $ 26.98 Granted 103 $ 75.52 Vested (164 ) $ 27.37 Forfeited (20 ) $ 46.60 Unvested at June 28, 2019 448 $ 37.16 Expected to vest as of June 28, 2019 426 The total fair value of RSUs and DSUs that vested during the six months ended June 28, 2019 was $12.7 million based on the market price of the underlying shares 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 a three-year performance period against the performance targets established by the Company’s Board of Directors at the time of grant and will be in the range of zero to 200% of the target number of shares. The Company recognizes compensation expense ratably over the performance period based on the number of shares that are deemed probable of vesting at the end of the three-year performance cycle. This probability assessment is performed quarterly and the cumulative effect of a change in the estimated compensation expense, if any, is recognized in the consolidated statement of operations in the period in which such determination is made. The number of 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 shares compared to the Russell 2000 Index over a three-year performance period using a payout formula established by the Company’s Board of Directors at the time of grant and will be in the range of zero to 200% of the target number of shares. The Company recognizes the related compensation expense based on the fair value of the TSR-PSUs, determined using the Monte-Carlo valuation 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 six months ended June 28, 2019: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2018 137 $ 37.28 Granted 44 $ 92.93 Performance adjustment (1) 29 $ 14.13 Vested (59 ) $ 14.13 Forfeited — $ — Unvested at June 28, 2019 151 $ 57.57 Expected to vest as of June 28, 2019 137 (1) Represents adjustment for performance-based awards granted on March 30, 2016. These units vested at 200% during the six months ended June 28, 2019 based on the achievement of cumulative Non-GAAP EPS during the performance period of fiscal years 2016 through 2018. The total fair value of PSUs that vested during the six months ended June 28, 2019 was $5.0 million based on the market price of the underlying shares on the date of vesting. The fair value of the TSR-PSUs at the date of grant was estimated using the Monte-Carlo valuation model with the following assumptions: Six Months Ended June 28, 2019 Grant-date stock price $ 77.23 Expected volatility 32.54 % Risk-free interest rate 2.46 % Expected annual dividend yield — Fair value $ 108.58

Income Taxes

Income Taxes	6 Months Ended
	Jun. 28, 2019
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes The Company determines its estimated annual effective tax rate at the end of each interim period based on full-year forecasted pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with the cumulative effect of any changes in the estimated annual effective tax rate being recorded in the 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 June 28, 2019 differs from the Canadian statutory tax rate of 29.0% primarily due to the mix of income earned in jurisdictions with varying tax rates, estimated deductions for Foreign Derived Intangible Income, and U.K. patent box deductions and other tax credits. The Company’s effective tax rate of 10.3% for the six months ended June 28, 2019 differs from the Canadian statutory tax rate of 29.0% primarily due to the mix of income earned in jurisdictions with varying tax rates, estimated deductions for Foreign Derived Intangible Income, U.K. patent box deductions and other tax credits, and windfall tax benefits upon vesting of certain stock-based compensation awards during the period. The Company’s effective tax rate of 20.8% for the three months ended June 29, 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, estimated deductions for Foreign Derived Intangible Income, and U.K. patent box deductions and other tax credits; offset by non-deductible expenses recognized under an earn-out agreement in connection with the Zettlex acquisition. The Company’s effective tax rate of 16.0 % for the six months ended June 29, 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, estimated deductions for Foreign Derived Intangible Income, U.K. patent box deductions and other tax credits, and windfall tax benefits upon vesting of certain equity awards during the period; offset by non-deductible expenses recognized under an earn-out agreement in connection with the Zettlex acquisition . The Company maintains a valuation allowance on some of its deferred tax assets in certain jurisdictions. A valuation allowance is required when, based upon an assessment of various factors, including recent operating loss history, anticipated future earnings, and prudent and reasonable tax planning strategies, it is more likely than not that some portion of the deferred tax assets will not be realized.

Restructuring and Acquisition R

Restructuring and Acquisition Related Costs	6 Months Ended
	Jun. 28, 2019
Restructuring And Related Activities [Abstract]
Restructuring and Acquisition Related Costs	14. Restructuring and Acquisition Related Costs The following table summarizes restructuring and acquisition related costs in the accompanying consolidated statements of operations (in thousands): Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 2019 restructuring $ 1,965 $ — $ 2,932 $ — 2018 restructuring 169 988 438 988 Total restructuring charges 2,134 988 3,370 988 Acquisition and related charges 2,179 1,451 2,997 1,476 Total restructuring and acquisition related costs $ 4,313 $ 2,439 $ 6,367 $ 2,464 2019 Restructuring During the fourth quarter of 2018, the Company implemented a restructuring plan intended to realign operations, reduce costs, achieve operational efficiencies and focus resources on growth initiatives. During the three and six months ended June 28, 2019, the Company recorded $1.0 million and $2.0 million, respectively, in severance and related costs, and $0.8 million and $0.9 million, respectively, in facility related costs, in connection with the 2019 restructuring plan. As of June 28, 2019, the Company incurred cumulative costs related to this restructuring plan totaling $3.3 million. The Company anticipates completing the 2019 restructuring program in the first quarter of 2020 and expects to incur additional restructuring charges of $3.0 million to $4.5 million related to the 2019 restructuring program. The following table summarizes restructuring costs associated with the 2019 restructuring program for each reportable segment and unallocated corporate and shared services costs (in thousands): Three Six Months Ended June 28, June 28, 2019 2019 Photonics $ 1,357 $ 1,550 Vision 306 656 Precision Motion 147 194 Unallocated Corporate and Shared Services 155 532 Total $ 1,965 $ 2,932 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 six months ended June 28, 2019, the Company recorded $0.2 million and $0.4 million, respectively, in severance and related costs in connection with the 2018 restructuring plan. These costs were reported in the Vision reportable segment. As of June 28, 2019, the Company incurred cumulative costs related to this restructuring plan totaling $2.1 million. The Company anticipates completing the 2018 restructuring program during the fourth quarter of 2019 and expects to incur additional restructuring charges of $0.5 million to $0.7 million related to the 2018 restructuring program in the Vision reportable segment. Rollforward of Accrued Expenses Related to Restructuring The following table summarizes the accrual activities, by component, related to the Company’s restructuring plans recorded in the accompanying consolidated balance sheets (in thousands): Total Severance Facility Other Balance at December 31, 2018 $ 1,276 $ 876 $ 388 $ 12 Restructuring charges 3,370 2,281 928 161 Cash payments (1,897 ) (1,719 ) (19 ) (159 ) Reclassification of reserves (a) (477 ) — (477 ) — Non-cash write-offs and other adjustments (964 ) (144 ) (820 ) — Balance at June 28, 2019 $ 1,308 $ 1,294 $ — $ 14 (a) Accrual related to exited facilities was reclassified to operating lease liabilities upon adoption of ASU 2016-02. Acquisition and Related Charges Acquisition related costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $1.4 million and $1.6 million for the three and six months ended June 28, 2019, respectively, and $0.3 million for the three and six months ended June 29, 2018, respectively. Acquisition related costs recognized under earn-out agreements in connection with acquisitions totaled $0.8 million and $1.4 million for the three and six months ended June 28, 2019, respectively, and $1.1 million for the three and six months ended June 29, 2018, respectively. The majority of acquisition related costs for the three and six months ended June 28, 2019 were included in the Company’s Precision Motion and Unallocated Corporate and Shared Services reportable segments.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 28, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	15. Commitments and Contingencies Purchase Commitments There have been no material changes to the Company’s purchase commitments since December 31, 2018. Legal Contingencies The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. The Company reviews the status of each significant matter and assesses the potential financial exposure on a quarterly basis. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available as of the date of the consolidated balance sheet. As additional information becomes available, the Company reassesses the potential liability related to any pending claims and litigations and may revise its estimates. The Company does not believe that the outcome of these claims will have a material adverse effect on its consolidated financial statements but there can be no assurance that any such claims, or any similar claims, would not have a material adverse effect on the consolidated financial statements. Guarantees and Indemnifications In the normal course of its operations, the Company executes agreements that provide for indemnification and guarantees to counterparties in transactions such as business dispositions, sale of assets, sale of products and operating leases. Additionally, the by- laws of the Company require it to indemnify certain current or former directors, officers, and employees of the Company against expenses incurred by them in connection with each proceeding in which 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.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 28, 2019
Related Party Transactions [Abstract]
Related Party Transactions	16. Related Party Transactions As of March 29, 2019, certain members of the Company’s board of directors served on the board of directors or as an advisor of companies that are customers of the Company. All contracts with these related parties were executed at arm’s length in the ordinary course of business. As of the beginning of the second quarter of 2019, these customers were no longer considered to be related parties. The aggregate revenue from these customers was $11.6 million for the three months ended March 29, 2019. The aggregate revenue from these customers was $8.5 million and $20.3 million for the three and six months ended June 29, 2018, respectively.

Segment Information

Segment Information	6 Months Ended
	Jun. 28, 2019
Segment Reporting [Abstract]
Segment Information	17. Segment Information Reportable Segments The Company’s Chief Operating Decision Maker (“CODM”) utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company. The Company evaluates the performance of, and allocates resources to, its segments based on revenue, gross profit and operating profit. The Company’s reportable segments have been identified based on commonality and adjacency of technologies, applications and customers amongst the Company’s individual product lines. The Company determined that disclosing revenue by specific product was impracticable due to the highly customized and extensive portfolio of technologies offered to customers. Based upon the information provided to the CODM, the Company has determined that it operates in three reportable segments: Photonics, Vision, and Precision Motion. The reportable segments and their principal activities consist of the following: Photonics The Photonics segment designs, manufactures and markets photonics-based solutions, including laser scanning, 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 for advanced industrial processes, 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; visualization solutions; wireless imaging and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification (“RFID”) technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. The vast majority of the segment’s product offerings are sold to OEM customers. The segment sells these products both directly, utilizing a highly technical sales force, and indirectly, through resellers and distributors. Precision Motion The Precision Motion segment designs, manufactures and markets optical and inductive encoders, precision motor and motion control sub-assemblies, servo drives, air bearings, 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 Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Revenue Photonics $ 58,286 $ 64,062 $ 117,511 $ 125,893 Vision 65,895 53,823 131,831 110,032 Precision Motion 30,964 32,515 62,989 61,440 Total $ 155,145 $ 150,400 $ 312,331 $ 297,365 Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Gross Profit Photonics $ 27,308 $ 30,737 $ 54,622 $ 60,292 Vision 25,211 20,441 51,184 40,162 Precision Motion 13,759 14,702 27,280 27,962 Unallocated Corporate and Shared Services (496 ) (651 ) (1,015 ) (1,028 ) Total $ 65,782 $ 65,229 $ 132,071 $ 127,388 Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Gross Profit Margin Photonics 46.9 % 48.0 % 46.5 % 47.9 % Vision 38.3 % 38.0 % 38.8 % 36.5 % Precision Motion 44.4 % 45.2 % 43.3 % 45.5 % Total 42.4 % 43.4 % 42.3 % 42.8 % Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Operating Income (Loss) Photonics $ 11,666 $ 16,184 $ 23,976 $ 31,507 Vision 4,215 391 8,772 866 Precision Motion 5,983 7,612 11,618 16,219 Unallocated Corporate and Shared Services (6,759 ) (7,072 ) (14,868 ) (14,250 ) Total $ 15,105 $ 17,115 $ 29,498 $ 34,342 Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Depreciation and Amortization Expenses Photonics $ 2,589 $ 2,966 $ 5,210 $ 6,033 Vision 5,197 5,097 10,226 10,271 Precision Motion 1,183 841 2,552 1,344 Unallocated Corporate and Shared Services 71 216 126 539 Total $ 9,040 $ 9,120 $ 18,114 $ 18,187 R evenue 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 Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 United States $ 62,010 $ 60,467 $ 126,770 $ 118,580 Germany 18,838 21,012 42,315 41,081 Rest of Europe 35,971 23,347 66,741 50,407 China 15,392 18,367 30,500 33,970 Rest of Asia-Pacific 20,702 24,987 41,149 49,707 Other 2,232 2,220 4,856 3,620 Total $ 155,145 $ 150,400 $ 312,331 $ 297,365 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 Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Advanced Industrial 45 % 50 % 45 % 50 % Medical 55 % 50 % 55 % 50 % 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.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 28, 2019
Subsequent Events [Abstract]
Subsequent Events	18. Subsequent Events On July 31, 2019, the Company acquired ARGES GmbH (“ARGES”), a Wackersdorf, Germany-based manufacturer of innovative laser scanning subsystems for industrial materials processing and medical applications for an initial purchase price of €33.8 million ($37.6 million), consisting of €24.0 million ($26.7 million) in cash and €9.8 million ($10.9 million) in the Company’s common shares (124 thousand shares). The Company expects to pay an additional €24.8 million in cash consideration on June 29, 2020 and up to a maximum of €10.0 million in contingent earnout payments upon the achievement of certain revenue targets from July 2019 through December 2026. The additional contingent earnout payments will be payable annually based on actual revenue achievement against the specified revenue targets, with the first payment due in the first quarter of 2021. ARGES will be included in the Company’s Photonics reportable segment. Information required by ASC 805-10, “Business Combinations,” is not disclosed herein as the Company is in the process of gathering information for its purchase accounting evaluation, including purchase price allocation and other related disclosures.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 28, 2019
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, 2018. In the opinion of management, these interim consolidated financial statements include all adjustments and accruals of a normal and recurring nature necessary to fairly state the results of the interim periods presented. The results for interim periods are not necessarily indicative of results to be expected for the full year or for any future periods. The Company’s unaudited interim 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 August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 should be applied either retrospectively or prospectively. January 1, 2020. Early adoption is permitted. The Company adopted ASU 2018-15 on a prospective basis during the first quarter of 2019. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements. 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 under the Tax Reform Act is recognized. January 1, 2019. The Company adopted ASU 2018-02 during the first quarter of 2019. The adoption of ASU 2018-02 did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” 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. January 1, 2019. The Company adopted ASU 2016-02 during the first quarter of 2019 using the modified retrospective approach. In addition, the Company elected the package of practical expedients permitted under the transition guidance. The adoption of ASU 2016-02 resulted in the recording of additional operating lease right-of-use (“ROU”) assets and operating lease liabilities of approximately $35.3 million and $36.5 million, respectively, as of January 1, 2019. The adoption of ASU 2016-02 did not have an impact on the Company’s Accumulated deficit, consolidated statement of operations, or consolidated statement of cash flows.
Revenue Recognition	The Company recognizes revenue when control of promised goods or services is transferred to customers. The transfer of control generally occurs upon shipment when title and risk of loss pass to the customer. The vast majority of the Company’s revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for such products, which is generally at contractually stated prices. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Performance Obligations Substantially all of the Company’s revenue is recognized at a point in time, upon shipment, rather than over time. At the request of its customers, the Company may perform professional services, generally for the maintenance and repair of products previously sold to those customers and for engineering services. Professional services are typically short in duration, mostly less than one month, and aggregate to 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. Shipping & Handling Costs The Company accounts for shipping and handling activities that occur after the transfer of control over the related goods as fulfillment activities rather than performance obligations. 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. 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 June 28, 2019 and December 31, 2018, contract liabilities were $2.9 million and $4.7 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 six months ended June 28, 2019 is primarily due to $3.2 million of revenue recognized during the period that was included in the contract liability balance at December 31, 2018, 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.

Foreign Currency Contracts (Pol

Foreign Currency Contracts (Policies)	6 Months Ended
	Jun. 28, 2019
Accounting Policies [Abstract]
Foreign Currency Contracts	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 s to counterparty risks on derivative instruments by entering into contracts with a diversified group of major financial institutions and by actively monitoring outstanding positions . The Company uses 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 currencies 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.

Leases (Policies)

Leases (Policies)	6 Months Ended
	Jun. 28, 2019
Accounting Policies [Abstract]
Leases	Leases The Company leases certain equipment and facilities. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Many of these leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area maintenance or other property management costs). The Company accounts for lease and non-lease components separately. Leases with an initial term of 12 months or less are not recognized on the balance sheet. Most leases held by the Company expire between 2019 and 2034. In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078. Certain leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years, and some include options to terminate the leases within one year. The exercise of lease renewal or termination option is at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable life of right-of-use assets and leasehold improvements is limited to the expected lease terms. Most leases held by the Company do not provide an implicit rate. The Company uses its incremental borrowing rate for the same jurisdiction and term as the associated lease based on the information available at the lease commencement date to determine the present value of the lease payments. The Company used the incremental borrowing rate as of January 1, 2019 for operating leases that commenced prior to that date. The Company has a centrally managed treasury function; therefore, the Company applies a portfolio approach for determining the incremental borrowing rate based on the applicable lease terms and the current economic environment.

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 28, 2019
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 for Med X Change and Ingenia was allocated as follows (in thousands): Purchase Allocation Cash $ 1,000 Accounts receivable 1,739 Inventories 2,372 Property, plant and equipment 565 Intangible assets 22,376 Goodwill 13,394 Other assets 601 Total assets acquired 42,047 Accounts payable 604 Deferred tax liabilities 2,550 Other liabilities 910 Total liabilities assumed 4,064 Total assets acquired, net of liabilities assumed 37,983 Less: cash acquired 1,000 Total purchase price, net of cash acquired 36,983 Less: contingent consideration 6,569 Less: purchase price holdback 961 Less: working capital adjustment 569 Net cash used for acquisition of businesses $ 28,884
Fair Value of Intangible Assets	The fair value of intangible assets for Med X Change and Ingenia is comprised of the following (dollar amounts in thousands): Weighted Average Estimated Fair Amortization Value Period Developed technologies $ 11,072 10 years Customer relationships 10,465 15 years Trademarks and trade names 639 9 years Backlog 200 7 months Total $ 22,376

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 28, 2019
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, 2018 $ (22,527 ) $ (12,485 ) $ (10,042 ) Other comprehensive income (loss) (254 ) (323 ) 69 Amounts reclassified from accumulated other comprehensive income (loss) (1) 501 — 501 Balance at June 28, 2019 $ (22,280 ) $ (12,808 ) $ (9,472 ) (1) The amounts reclassified from other comprehensive income (loss) were included in other income (expense) in the consolidated statements of operations.

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	6 Months Ended
	Jun. 28, 2019
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 Six Months Ended June 28, June 29, June 28, June 29, 2019 (1) 2018 (2) 2019 (1) 2018 (2) Numerators: Consolidated net income $ 10,380 $ 11,625 $ 22,633 $ 24,462 Less: Net income attributable to noncontrolling interest — (625 ) — (1,551 ) Net income attributable to Novanta Inc. 10,380 11,000 22,633 22,911 Redeemable noncontrolling interest redemption value adjustment — 303 — (5,096 ) Net income attributable to Novanta Inc. after adjustment for redeemable noncontrolling interest redemption value $ 10,380 $ 11,303 $ 22,633 $ 17,815 Denominators: Weighted average common shares outstanding— basic 34,998 34,949 34,981 34,919 Dilutive potential common shares 505 525 510 532 Weighted average common shares outstanding— diluted 35,503 35,474 35,491 35,451 Antidilutive potential common shares excluded from above 36 — 47 6 Earnings per Common Share Attributable to Novanta Inc.: Basic $ 0.30 $ 0.32 $ 0.65 $ 0.51 Diluted $ 0.29 $ 0.32 $ 0.64 $ 0.50 (1) 45,252 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum former non-controlling interest holders are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of June 28, 2019. (2) 53,968 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of June 29, 2018.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 28, 2019
Fair Value Disclosures [Abstract]
Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of June 28, 2019 (in thousands): Quoted Prices in Significant Other Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 3,184 $ 3,184 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 47 — 47 — $ 3,231 $ 3,184 $ 47 $ — Liabilities Accrued expenses and other current liabilities: Contingent consideration - Current $ 3,091 $ — $ — $ 3,091 Foreign currency forward contracts 31 — 31 — Other liabilities: Contingent consideration - Long-term 7,436 — — 7,436 $ 10,558 $ — $ 31 $ 10,527 The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 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 $ 4,288 $ 4,288 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 15 — 15 — $ 4,303 $ 4,288 $ 15 $ — Liabilities Accrued expenses and other current liabilities: Foreign currency forward contracts $ 182 $ — $ 182 $ — Other liabilities: Contingent consideration - Long-term 3,376 — — 3,376 $ 3,558 $ — $ 182 $ 3,376
Changes in Fair Value of Level 3 Contingent Consideration	Changes in the fair value of Level 3 contingent consideration during the six months ended June 28, 2019 were as follows (in thousands): Contingent Consideration Balance at December 31, 2018 $ 3,376 Acquisition of Ingenia 6,569 Fair value adjustments 547 Effect of foreign exchange rates 35 Balance at June 28, 2019 $ 10,527
Schedule of Fair Value Measurement Inputs and Valuation Techniques	The following table provides quantitative information associated with the fair value measurement of the Company’s Level 3 liabilities: Liability June 28, 2019 Fair Value (in thousands) Valuation Technique Unobservable Inputs Percentage Applied Contingent consideration (Ingenia) $6,604 Monte Carlo method Historical and projected revenues from April 2019 through March 2022 N/A Revenue volatility 31.3% Cost of debt 1.0% Revenue discount rate 14.3% Contingent consideration (Other) $3,923 Discounted cash flow method Historical and projected revenues for fiscal years 2018 to 2021 N/A Discount rate 22.8%

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 28, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Changes in Goodwill	The following table summarizes changes in goodwill during the six months ended June 28, 2019 (in thousands): Balance at beginning of the period $ 217,662 Goodwill acquired from acquisitions 13,394 Effect of foreign exchange rate changes (685 ) Balance at end of the period $ 230,371
Goodwill by Reportable Segment	Goodwill by reportable segment as of June 28, 2019 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 168,698 $ 160,661 $ 52,241 $ 381,600 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 66,237 $ 128,939 $ 35,195 $ 230,371 Goodwill by reportable segment as of December 31, 2018 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 168,955 $ 155,017 $ 44,919 $ 368,891 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 66,494 $ 123,295 $ 27,873 $ 217,662
Intangible Assets	Intangible assets as of June 28, 2019 and December 31, 2018, respectively, are summarized as follows (in thousands): June 28, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and developed technologies $ 145,369 $ (91,250 ) $ 54,119 $ 134,034 $ (86,623 ) $ 47,411 Customer relationships 149,095 (70,733 ) 78,362 139,097 (64,174 ) 74,923 Customer backlog 1,925 (1,740 ) 185 1,738 (1,191 ) 547 Non-compete covenant — — — 2,514 (2,493 ) 21 Trademarks and trade names 16,509 (9,427 ) 7,082 15,915 (8,924 ) 6,991 Amortizable intangible assets 312,898 (173,150 ) 139,748 293,298 (163,405 ) 129,893 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 325,925 $ (173,150 ) $ 152,775 $ 306,325 $ (163,405 ) $ 142,920
Amortization Expense of Intangible Assets	Amortization expense was as follows (in thousands): Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Amortization expense – cost of revenue $ 2,446 $ 2,489 $ 4,757 $ 4,969 Amortization expense – operating expenses 3,772 3,893 7,770 7,591 Total amortization expense $ 6,218 $ 6,382 $ 12,527 $ 12,560
Estimated Amortization Expense	Estimated amortization expense for each of the five succeeding years and thereafter as of June 28, 2019 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2019 (remainder of year) $ 5,052 $ 7,539 $ 12,591 2020 9,775 13,778 23,553 2021 9,798 12,846 22,644 2022 8,223 11,114 19,337 2023 7,031 9,423 16,454 Thereafter 14,240 30,929 45,169 Total $ 54,119 $ 85,629 $ 139,748

Supplementary Balance Sheet I_2

Supplementary Balance Sheet Information (Tables)	6 Months Ended
	Jun. 28, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Inventories	Inventories June 28, December 31, 2019 2018 Raw materials $ 75,766 $ 69,008 Work-in-process 14,275 15,982 Finished goods 21,396 17,337 Demo and consigned inventory 1,860 2,437 Total inventories $ 113,297 $ 104,764
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities June 28, December 31, 2019 2018 Accrued compensation and benefits $ 14,877 $ 24,545 Accrued warranty 4,890 4,510 Contract liabilities, current portion 3,056 4,165 Other 18,361 13,075 Total $ 41,184 $ 46,295
Accrued Warranty	Accrued Warranty Six Months Ended June 28, 2019 June 29, 2018 Balance at beginning of the period $ 4,510 $ 4,835 Provision charged to cost of revenue 1,477 1,235 Warranty liabilities from acquisitions 78 — Use of provision (1,167 ) (1,244 ) Foreign currency exchange rate changes (8 ) (55 ) Balance at end of the period $ 4,890 $ 4,771
Other Long Term Liabilities	Other Long Term Liabilities June 28, December 31, 2019 2018 Finance lease obligations $ 6,764 $ 7,275 Accrued pension liabilities 2,939 3,758 Accrued contingent considerations 7,436 3,376 Other 3,661 2,778 Total $ 20,800 $ 17,187

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 28, 2019
Debt Disclosure [Abstract]
Debt	Debt consisted of the following (in thousands): June 28, December 31, 2019 2018 Senior Credit Facilities – term loan $ — $ 4,600 Less: unamortized debt issuance costs — (65 ) Total current portion of long-term debt $ — $ 4,535 Senior Credit Facilities – term loan $ 58,425 $ 69,925 Senior Credit Facilities – revolving credit facility 157,820 135,058 Less: unamortized debt issuance costs (1,683 ) (2,140 ) Total long-term debt $ 214,562 $ 202,843 Total Senior Credit Facilities $ 214,562 $ 207,378

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 28, 2019
Leases [Abstract]
Summary of Components of Lease Costs	The following table summarizes the components of lease costs (in thousands): Three Months Ended Six Months Ended June 28, June 28, 2019 2019 Operating lease cost $ 2,042 $ 3,865 Finance lease cost Amortization of right-of-use assets 177 355 Interest on lease liabilities 101 206 Variable lease cost 408 546 Total lease cost $ 2,728 $ 4,972
Summary of Balance Sheet Information Related to Leases	The following table provides the details of balance sheet information related to leases (in thousands, except lease term and discount rate): June 28, 2019 Operating leases Operating lease right-of-use assets $ 38,633 Current portion of operating lease liabilities $ 5,225 Operating lease liabilities 35,108 Total operating lease liabilities $ 40,333 Finance leases Property, plant and equipment, gross $ 13,511 Accumulated depreciation (7,267 ) Property, plant and equipment, net $ 6,244 Accrued expenses and other current liabilities $ 618 Other liabilities 6,764 Total finance lease liabilities $ 7,382 Weighted-average remaining lease term (in years) Operating leases 10.8 Finance leases 9.8 Weighted-average discount rate Operating leases 5.71 % Finance leases 5.49 %
Summary of Cash Flow Information Related to Leases	The following table provides the details of cash flow information related to leases (in thousands): Six Months Ended June 28, 2019 Cash paid for amounts included in lease liabilities Operating cash flows from finance leases $ 294 Operating cash flows from operating leases $ 4,264 Financing cash flows from finance leases $ 283 Right-of-use assets obtained in exchange for new operating lease liabilities $ 5,471
Future Minimum Lease Payments Under Operating and Finance Leases	Future minimum lease payments under operating and finance leases expiring subsequent to June 28, 2019, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands): Year Ending December 31, Operating Lease Finance Lease 2019 (remainder of year) $ 3,878 $ 499 2020 6,240 980 2021 6,090 907 2022 5,340 907 2023 4,687 930 Thereafter 29,138 5,394 Total minimum lease payments 55,373 9,617 Less: Interest (15,040 ) (2,235 ) Present value of lease liabilities $ 40,333 $ 7,382
Future Minimum Lease Payments Under Operating and Capital Leases	Future minimum lease payments under operating and capital leases expiring subsequent to December 31, 2018 under Accounting Standard Codification Topic 840, “Leases”, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands): Year Ending December 31, Operating Lease (1) Capital Lease 2019 $ 7,797 $ 990 2020 6,263 980 2021 5,757 907 2022 5,264 907 2023 4,719 930 Thereafter 26,149 5,394 Total minimum lease payments $ 55,949 $ 10,108 (1) Future minimum lease payments as of December 31, 2018 included common-area maintenance and other property management costs and tax obligations.

Common Shares and Share-Based_2

Common Shares and Share-Based Compensation (Tables)	6 Months Ended
	Jun. 28, 2019
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 Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Selling, general and administrative $ 2,089 $ 1,574 $ 4,620 $ 3,498 Research and development and engineering 184 108 295 192 Cost of revenue 105 54 190 90 Total share-based compensation expense $ 2,378 $ 1,736 $ 5,105 $ 3,780
Schedule of Share ​Based ​Payment ​Award ​Performance ​Stock ​Awards ​Valuation ​Assumptions	The fair value of the TSR-PSUs at the date of grant was estimated using the Monte-Carlo valuation model with the following assumptions: Six Months Ended June 28, 2019 Grant-date stock price $ 77.23 Expected volatility 32.54 % Risk-free interest rate 2.46 % Expected annual dividend yield — Fair value $ 108.58
2010 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted Stock Units and Deferred Stock Units Issued and Outstanding	The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the six months ended June 28, 2019: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2018 529 $ 26.98 Granted 103 $ 75.52 Vested (164 ) $ 27.37 Forfeited (20 ) $ 46.60 Unvested at June 28, 2019 448 $ 37.16 Expected to vest as of June 28, 2019 426
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 six months ended June 28, 2019: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2018 137 $ 37.28 Granted 44 $ 92.93 Performance adjustment (1) 29 $ 14.13 Vested (59 ) $ 14.13 Forfeited — $ — Unvested at June 28, 2019 151 $ 57.57 Expected to vest as of June 28, 2019 137 (1) Represents adjustment for performance-based awards granted on March 30, 2016. These units vested at 200% during the six months ended June 28, 2019 based on the achievement of cumulative Non-GAAP EPS during the performance period of fiscal years 2016 through 2018.

Restructuring and Acquisition_2

Restructuring and Acquisition Related Costs (Tables)	6 Months Ended
	Jun. 28, 2019
Restructuring And Related Activities [Abstract]
Schedule of Restructuring and Acquisition Related Costs	The following table summarizes restructuring and acquisition related costs in the accompanying consolidated statements of operations (in thousands): Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 2019 restructuring $ 1,965 $ — $ 2,932 $ — 2018 restructuring 169 988 438 988 Total restructuring charges 2,134 988 3,370 988 Acquisition and related charges 2,179 1,451 2,997 1,476 Total restructuring and acquisition related costs $ 4,313 $ 2,439 $ 6,367 $ 2,464
Schedule of Restructuring Charges by Segment	The following table summarizes restructuring costs associated with the 2019 restructuring program for each reportable segment and unallocated corporate and shared services costs (in thousands): Three Six Months Ended June 28, June 28, 2019 2019 Photonics $ 1,357 $ 1,550 Vision 306 656 Precision Motion 147 194 Unallocated Corporate and Shared Services 155 532 Total $ 1,965 $ 2,932
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, 2018 $ 1,276 $ 876 $ 388 $ 12 Restructuring charges 3,370 2,281 928 161 Cash payments (1,897 ) (1,719 ) (19 ) (159 ) Reclassification of reserves (a) (477 ) — (477 ) — Non-cash write-offs and other adjustments (964 ) (144 ) (820 ) — Balance at June 28, 2019 $ 1,308 $ 1,294 $ — $ 14 (a) Accrual related to exited facilities was reclassified to operating lease liabilities upon adoption of ASU 2016-02.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 28, 2019
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 Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Revenue Photonics $ 58,286 $ 64,062 $ 117,511 $ 125,893 Vision 65,895 53,823 131,831 110,032 Precision Motion 30,964 32,515 62,989 61,440 Total $ 155,145 $ 150,400 $ 312,331 $ 297,365 Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Gross Profit Photonics $ 27,308 $ 30,737 $ 54,622 $ 60,292 Vision 25,211 20,441 51,184 40,162 Precision Motion 13,759 14,702 27,280 27,962 Unallocated Corporate and Shared Services (496 ) (651 ) (1,015 ) (1,028 ) Total $ 65,782 $ 65,229 $ 132,071 $ 127,388 Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Gross Profit Margin Photonics 46.9 % 48.0 % 46.5 % 47.9 % Vision 38.3 % 38.0 % 38.8 % 36.5 % Precision Motion 44.4 % 45.2 % 43.3 % 45.5 % Total 42.4 % 43.4 % 42.3 % 42.8 % Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Operating Income (Loss) Photonics $ 11,666 $ 16,184 $ 23,976 $ 31,507 Vision 4,215 391 8,772 866 Precision Motion 5,983 7,612 11,618 16,219 Unallocated Corporate and Shared Services (6,759 ) (7,072 ) (14,868 ) (14,250 ) Total $ 15,105 $ 17,115 $ 29,498 $ 34,342 Three Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Depreciation and Amortization Expenses Photonics $ 2,589 $ 2,966 $ 5,210 $ 6,033 Vision 5,197 5,097 10,226 10,271 Precision Motion 1,183 841 2,552 1,344 Unallocated Corporate and Shared Services 71 216 126 539 Total $ 9,040 $ 9,120 $ 18,114 $ 18,187
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 Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 United States $ 62,010 $ 60,467 $ 126,770 $ 118,580 Germany 18,838 21,012 42,315 41,081 Rest of Europe 35,971 23,347 66,741 50,407 China 15,392 18,367 30,500 33,970 Rest of Asia-Pacific 20,702 24,987 41,149 49,707 Other 2,232 2,220 4,856 3,620 Total $ 155,145 $ 150,400 $ 312,331 $ 297,365
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 Six Months Ended June 28, June 29, June 28, June 29, 2019 2018 2019 2018 Advanced Industrial 45 % 50 % 45 % 50 % Medical 55 % 50 % 55 % 50 % Total 100 % 100 % 100 % 100 %

Basis of Presentation - Additio

Basis of Presentation - Additional information (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Jan. 01, 2019
Basis Of Presentation [Line Items]
Operating lease, right-of-use asset	$ 38,633
Operating lease liabilities	$ 40,333
ASU 2016-02
Basis Of Presentation [Line Items]
Operating lease, right-of-use asset		$ 35,300
Operating lease liabilities		$ 36,500

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 28, 2019	Dec. 31, 2018
Revenue [Line Items]
Incremental direct costs of obtaining a contract, practical expedient	true
Effects of a financing component, practical expedient	true
Remaining performance obligation for contracts, optional exemption	true
Adoption of Topic 606
Revenue [Line Items]
Contract liabilities	$ 2.9	$ 4.7
Revenue recognized	$ 3.2
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.
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
Maximum
Revenue [Line Items]
Percentage of revenue for professional services	3.00%
Duration of professional services performed under customer contract	1 month
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

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ in Thousands	Jun. 05, 2019USD ($)	Apr. 16, 2019USD ($)	Apr. 16, 2019EUR (€)	Jun. 28, 2019USD ($)	Jun. 29, 2018USD ($)	Jun. 28, 2019USD ($)	Jun. 29, 2018USD ($)	Apr. 16, 2019EUR (€)	Dec. 31, 2018USD ($)
Business Acquisition [Line Items]
Goodwill				$ 230,371		$ 230,371			$ 217,662
Acquisition costs				2,179	$ 1,451	2,997	$ 1,476
Revolving Credit Facility
Business Acquisition [Line Items]
Amount draw-down to finance acquisition						23,600
Med X Change, Inc
Business Acquisition [Line Items]
Percentage of shares acquired	100.00%
Cash consideration	$ 21,800
Med X Change, Inc | Revolving Credit Facility
Business Acquisition [Line Items]
Amount draw-down to finance acquisition	$ 21,000
Ingenia-CAT, S.L.
Business Acquisition [Line Items]
Percentage of shares acquired		100.00%						100.00%
Cash consideration		$ 9,600	€ 8,500,000
Purchase price		16,200						€ 14,300,000
Fair value of contingent consideration		6,600						5,800,000
Undiscounted low range of contingent consideration | €								0
Undiscounted high range of contingent consideration | €								8,000,000
Purchase price heldback		$ 1,000						€ 900,000
Expiration period		2021-10	2021-10
Med X Change, Inc and Ingenia-CAT, S.L.
Business Acquisition [Line Items]
Fair value of contingent consideration				6,569		6,569
Purchase price heldback				961		961
Intangible Assets Estimated Fair Value				22,376		22,376
Goodwill				13,394		13,394
Goodwill assets expected to be deductible for tax purposes				$ 6,000		6,000
Revenues						1,000
Income (loss) before income taxes						(500)
Amortization of inventory fair value adjustments and purchased intangible assets						400
Acquisition costs						$ 500

Summary of Fair Values of Asset

Summary of Fair Values of Assets Acquired and Liabilities Assumed Purchase Price Allocation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 230,371	$ 217,662
Med X Change, Inc and Ingenia-CAT, S.L.
Business Acquisition [Line Items]
Cash	1,000
Accounts receivable	1,739
Inventories	2,372
Property, plant and equipment	565
Intangible assets	22,376
Goodwill	13,394
Other assets	601
Total assets acquired	42,047
Accounts payable	604
Deferred tax liabilities	2,550
Other liabilities	910
Total liabilities assumed	4,064
Total assets acquired, net of liabilities assumed	37,983
Less: cash acquired	1,000
Total purchase price, net of cash acquired	36,983
Less: contingent consideration	6,569
Less: purchase price holdback	961
Less: working capital adjustment	569
Net cash used for acquisition of businesses	$ 28,884

Fair Value of Intangible Assets

Fair Value of Intangible Assets (Details) - Med X Change, Inc and Ingenia-CAT, S.L. $ in Thousands	6 Months Ended
	Jun. 28, 2019USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 22,376
Developed Technologies
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 11,072
Intangible Assets Weighted Average Amortization Period	10 years
Customer Relationships
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 10,465
Intangible Assets Weighted Average Amortization Period	15 years
Trademarks and Trade Names
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 639
Intangible Assets Weighted Average Amortization Period	9 years
Backlog
Acquired Finite Lived Intangible Assets [Line Items]
Intangible Assets Estimated Fair Value	$ 200
Intangible Assets Weighted Average Amortization Period	7 months

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands	6 Months Ended
	Jun. 28, 2019USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ 368,255
Other comprehensive income (loss)	(254)
Amounts reclassified from accumulated other comprehensive income (loss)	501	[1]
Ending Balance	386,182
Total Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(22,527)
Ending Balance	(22,280)
Cumulative Translation Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(12,485)
Other comprehensive income (loss)	(323)
Ending Balance	(12,808)
Pension Liability Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(10,042)
Other comprehensive income (loss)	69
Amounts reclassified from accumulated other comprehensive income (loss)	501	[1]
Ending Balance	$ (9,472)
[1]	The amounts reclassified from other comprehensive income (loss) were included in other income (expense) 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				6 Months Ended
		Jun. 28, 2019	[1]	Jun. 29, 2018		Jun. 28, 2019	[1]	Jun. 29, 2018
Numerators:
Consolidated net income		$ 10,380		$ 11,625	[2]	$ 22,633		$ 24,462	[2]
Less: Net income attributable to noncontrolling interest	[2]			(625)				(1,551)
Net income attributable to Novanta Inc.		10,380		11,000	[2]	22,633		22,911	[2]
Redeemable noncontrolling interest redemption value adjustment	[2]			303				(5,096)
Net income attributable to Novanta Inc. after adjustment for redeemable noncontrolling interest redemption value		$ 10,380		$ 11,303	[2]	$ 22,633		$ 17,815	[2]
Denominators:
Weighted average common shares outstanding—basic		34,998		34,949	[2]	34,981		34,919	[2]
Dilutive potential common shares		505		525	[2]	510		532	[2]
Weighted average common shares outstanding— diluted		35,503		35,474	[2]	35,491		35,451	[2]
Antidilutive potential common shares excluded from above		36				47		6	[2]
Earnings per Common Share Attributable to Novanta Inc.:
Basic		$ 0.30		$ 0.32	[2]	$ 0.65		$ 0.51	[2]
Diluted		$ 0.29		$ 0.32	[2]	$ 0.64		$ 0.50	[2]
[1]	45,252 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213,219 shares of restricted stock issued to Laser Quantum former non-controlling interest holders are considered contingently issuable shares and are excluded from the calculation of the denominator as the contingent conditions had not been met as of June 28, 2019.
[2]	53,968 non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of June 29, 2018.

Computation of Basic and Dilu_2

Computation of Basic and Diluted Earnings per Common Share (Parenthetical) (Details) - shares	6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018
EPS Performance-based Restricted Stock Units
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of denominator	45,252	53,968
Laser Quantum | Restricted Stock
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of denominator	213,219

Fair Value Measurements - Busin

Fair Value Measurements - Business Combination Contingent Consideration - Additional Information (Details) - Ingenia-CAT, S.L. $ in Thousands	2 Months Ended	6 Months Ended
	Jun. 28, 2019USD ($)	Jun. 28, 2019Installment	Apr. 16, 2019USD ($)	Apr. 16, 2019EUR (€)
Business Acquisition [Line Items]
Number of contingent consideration installments | Installment		3
Undiscounted low range of contingent consideration				€ 0
Undiscounted high range of contingent consideration				8,000,000
Fair value of contingent consideration			$ 6,600	€ 5,800,000
Changes in fair value of contingent consideration | $	$ 0

Fair Value Measurements - Asset

Fair Value Measurements - Asset Acquisition Contingent Consideration - Additional Information (Details) - Video Signal Processing and Management Technologies $ in Millions	6 Months Ended
	Jun. 28, 2019USD ($)Installment	Dec. 14, 2016USD ($)	Dec. 14, 2016EUR (€)
Asset 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		$ 6.6	€ 5,500,000
Fair value of contingent consideration | $	$ 3.9

Fair Values of Assets and Liabi

Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018
Liabilities
Contingent consideration - Long-term	$ 7,436	$ 3,376
Fair Value Measurements Recurring
Assets
Cash equivalents	3,184	4,288
Assets, fair value	3,231	4,303
Liabilities
Liabilities, fair value	10,558	3,558
Fair Value Measurements Recurring | Prepaid Expenses and Other Current Assets
Assets
Foreign currency forward contracts	47	15
Fair Value Measurements Recurring | Accrued Expenses and Other Current Liabilities
Liabilities
Contingent consideration - Current	3,091
Foreign currency forward contracts	31	182
Fair Value Measurements Recurring | Other Liabilities
Liabilities
Contingent consideration - Long-term	7,436	3,376
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash equivalents	3,184	4,288
Assets, fair value	3,184	4,288
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2)
Assets
Assets, fair value	47	15
Liabilities
Liabilities, fair value	31	182
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Prepaid Expenses and Other Current Assets
Assets
Foreign currency forward contracts	47	15
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Accrued Expenses and Other Current Liabilities
Liabilities
Foreign currency forward contracts	31	182
Fair Value Measurements Recurring | Significant Other Unobservable Inputs (Level 3)
Liabilities
Liabilities, fair value	10,527	3,376
Fair Value Measurements Recurring | Significant Other Unobservable Inputs (Level 3) | Accrued Expenses and Other Current Liabilities
Liabilities
Contingent consideration - Current	3,091
Fair Value Measurements Recurring | Significant Other Unobservable Inputs (Level 3) | Other Liabilities
Liabilities
Contingent consideration - Long-term	$ 7,436	$ 3,376

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Changes in the Fair Value of Level 3 Contingent Consideration (Details) - Significant Other Unobservable Inputs (Level 3) $ in Thousands	6 Months Ended
	Jun. 28, 2019USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 3,376
Acquisition of Ingenia	6,569
Fair value adjustments	547
Effect of foreign exchange rates	35
Ending balance	$ 10,527

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurement Inputs and Valuation Techniques (Details) $ in Thousands, € in Millions	Jun. 28, 2019USD ($)	Apr. 16, 2019USD ($)	Apr. 16, 2019EUR (€)
Ingenia-CAT, S.L.
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration		$ 6,600	€ 5.8
Significant Other Unobservable Inputs (Level 3) | Ingenia-CAT, S.L.
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration	$ 6,604
Valuation Technique	novt:ValuationTechniqueMonteCarloMethodMember
Significant Other Unobservable Inputs (Level 3) | Ingenia-CAT, S.L. | Revenue volatility
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business acquisition, Percentage Applied	31.3
Significant Other Unobservable Inputs (Level 3) | Ingenia-CAT, S.L. | Cost of debt
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business acquisition, Percentage Applied	1
Significant Other Unobservable Inputs (Level 3) | Ingenia-CAT, S.L. | Revenue discount rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business acquisition, Percentage Applied	14.3
Significant Other Unobservable Inputs (Level 3) | Other
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration	$ 3,923
Significant Other Unobservable Inputs (Level 3) | Other | Revenue discount rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Asset acquisition, Percentage Applied	22.8

Foreign Currency Contracts - Ad

Foreign Currency Contracts - Additional Information (Details) - Foreign Currency Forward Contracts - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018	Dec. 31, 2018
Derivative [Line Items]
Notional amount of foreign currency forward contracts	$ 31.2		$ 31.2		$ 31.2
Net gain (loss) on foreign currency forward contracts					$ (0.2)
Foreign Exchange Transaction Gains (Losses)
Derivative [Line Items]
Aggregate net gain (loss) recognized	0.4	$ 0.2	0.9	$ 0.9
Maximum
Derivative [Line Items]
Net gain (loss) on foreign currency forward contracts	$ 0.1		$ 0.1

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Details)	3 Months Ended
	Jun. 28, 2019USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment of goodwill and intangible assets	$ 0

Summary of Changes in Goodwill

Summary of Changes in Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 28, 2019USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Balance at beginning of the period	$ 217,662
Goodwill acquired from acquisitions	13,394
Effect of foreign exchange rate changes	(685)
Balance at end of the period	$ 230,371

Goodwill By Reportable Segment

Goodwill By Reportable Segment (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018
Goodwill [Line Items]
Goodwill	$ 381,600	$ 368,891
Accumulated impairment of goodwill	(151,229)	(151,229)
Total	230,371	217,662
Photonics
Goodwill [Line Items]
Goodwill	168,698	168,955
Accumulated impairment of goodwill	(102,461)	(102,461)
Total	66,237	66,494
Vision
Goodwill [Line Items]
Goodwill	160,661	155,017
Accumulated impairment of goodwill	(31,722)	(31,722)
Total	128,939	123,295
Precision Motion
Goodwill [Line Items]
Goodwill	52,241	44,919
Accumulated impairment of goodwill	(17,046)	(17,046)
Total	$ 35,195	$ 27,873

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	$ 312,898	$ 293,298
Amortizable intangible assets, accumulated amortization	(173,150)	(163,405)
Amortizable intangible assets, net carrying amount	139,748	129,893
Non-amortizable intangible assets	13,027	13,027
Gross carrying amount	325,925	306,325
Net carrying amount	152,775	142,920
Patents and Developed Technologies
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	145,369	134,034
Amortizable intangible assets, accumulated amortization	(91,250)	(86,623)
Amortizable intangible assets, net carrying amount	54,119	47,411
Customer Relationships
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	149,095	139,097
Amortizable intangible assets, accumulated amortization	(70,733)	(64,174)
Amortizable intangible assets, net carrying amount	78,362	74,923
Customer Backlog
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	1,925	1,738
Amortizable intangible assets, accumulated amortization	(1,740)	(1,191)
Amortizable intangible assets, net carrying amount	185	547
Non-compete Covenant
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount		2,514
Amortizable intangible assets, accumulated amortization		(2,493)
Amortizable intangible assets, net carrying amount		21
Trademarks and Trade Names
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	16,509	15,915
Amortizable intangible assets, accumulated amortization	(9,427)	(8,924)
Amortizable intangible assets, net carrying amount	$ 7,082	$ 6,991

Amortization Expense of Intangi

Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense – cost of revenue	$ 2,446	$ 2,489	$ 4,757	$ 4,969
Amortization expense – operating expenses	3,772	3,893	7,770	7,591
Total amortization expense	$ 6,218	$ 6,382	$ 12,527	$ 12,560

Estimated Amortization Expense

Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018
Finite Lived Intangible Assets [Line Items]
2019 (remainder of year)	$ 12,591
2020	23,553
2021	22,644
2022	19,337
2023	16,454
Thereafter	45,169
Amortizable intangible assets, net carrying amount	139,748	$ 129,893
Cost of Revenue
Finite Lived Intangible Assets [Line Items]
2019 (remainder of year)	5,052
2020	9,775
2021	9,798
2022	8,223
2023	7,031
Thereafter	14,240
Amortizable intangible assets, net carrying amount	54,119
Operating Expenses
Finite Lived Intangible Assets [Line Items]
2019 (remainder of year)	7,539
2020	13,778
2021	12,846
2022	11,114
2023	9,423
Thereafter	30,929
Amortizable intangible assets, net carrying amount	$ 85,629

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 75,766	$ 69,008
Work-in-process	14,275	15,982
Finished goods	21,396	17,337
Demo and consigned inventory	1,860	2,437
Total inventories	$ 113,297	$ 104,764

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018	Jun. 29, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Accrued compensation and benefits	$ 14,877	$ 24,545
Accrued warranty	4,890	4,510	$ 4,771	$ 4,835
Contract liabilities, current portion	3,056	4,165
Other	18,361	13,075
Total	$ 41,184	$ 46,295

Accrued Warranty (Details)

Accrued Warranty (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018
Product Warranties Disclosures [Abstract]
Balance at beginning of the period	$ 4,510	$ 4,835
Provision charged to cost of revenue	1,477	1,235
Warranty liabilities from acquisitions	78
Use of provision	(1,167)	(1,244)
Foreign currency exchange rate changes	(8)	(55)
Balance at end of the period	$ 4,890	$ 4,771

Other Long Term Liabilities (De

Other Long Term Liabilities (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Finance lease obligations	$ 6,764	$ 7,275
Accrued pension liabilities	2,939	3,758
Accrued contingent considerations	7,436	3,376
Other	3,661	2,778
Total	$ 20,800	$ 17,187

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total current portion of long-term debt		$ 4,535
Total long-term debt	$ 214,562	202,843
Total Senior Credit Facilities	214,562	207,378
Term Loan
Debt Instrument [Line Items]
Current portion of long-term debt, Gross		4,600
Long-term debt, Gross	58,425	69,925
Term Loan And Revolving Credit Facility
Debt Instrument [Line Items]
Less: unamortized debt issuance costs		(65)
Less: unamortized debt issuance costs	(1,683)	(2,140)
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, Gross	$ 157,820	$ 135,058

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Aug. 01, 2018	Aug. 01, 2017	May 19, 2016	Feb. 28, 2018	Jun. 28, 2019	Jun. 29, 2018	Dec. 31, 2018	Jul. 28, 2017
Debt Instrument [Line Items]
Long-term debt including current maturities					$ 214,562,000		$ 207,378,000
Repayment of debt					16,100,000	$ 21,832,000
Term Loan
Debt Instrument [Line Items]
Repayment of debt					16,100,000
Revolving Credit Facility
Debt Instrument [Line Items]
Proceeds from debt					$ 23,600,000
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 to Second Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Debt instrument, frequency of periodic payment	quarterly
Senior credit facilities maturity year	2021-05
Third Amendment to Second Amended and Restated Credit Agreement | 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
Third Amendment to Second Amended and Restated Credit Agreement | 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 to Second Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Maximum consolidated leverage ratio					350.00%
Second amended and restated credit agreement, fourth amendment, covenants				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 ratio for four consecutive quarters following a designated acquisition from 3.50 to 4.00.
Fourth Amendment to Second Amended and Restated Credit Agreement | Permitted Acquisitions and Stock Repurchases
Debt Instrument [Line Items]
Maximum consolidated leverage ratio					300.00%
Fourth Amendment to Second Amended and Restated Credit Agreement | Designated Acquisition
Debt Instrument [Line Items]
Maximum consolidated leverage ratio					350.00%
Fourth Amendment to Second Amended and Restated Credit Agreement | Four Consecutive Quarters Following Designated Acquisition
Debt Instrument [Line Items]
Maximum consolidated leverage ratio					400.00%

Leases - Additional Information

Leases - Additional Information (Details)	6 Months Ended
	Jun. 28, 2019
Lessee Lease Description [Line Items]
Lease renewal terms and termination description	Certain leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years, and some include options to terminate the leases within one year.
Minimum
Lessee Lease Description [Line Items]
Lease agreement expiration year	2019
Lease renewal terms	1 year
Maximum
Lessee Lease Description [Line Items]
Lease agreement expiration year	2034
Lease renewal terms	10 years
Lease termination period	1 year
Land | Maximum
Lessee Lease Description [Line Items]
Lease agreement expiration year	2078

Summary of Components of Lease

Summary of Components of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 28, 2019	Jun. 28, 2019
Leases [Abstract]
Operating lease cost	$ 2,042	$ 3,865
Finance lease cost
Amortization of right-of-use assets	177	355
Interest on lease liabilities	101	206
Variable lease cost	408	546
Total lease cost	$ 2,728	$ 4,972

Summary of Balance Sheet Inform

Summary of Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Jun. 28, 2019	Dec. 31, 2018
Operating leases
Operating lease right-of-use assets	$ 38,633
Current portion of operating lease liabilities	5,225
Operating lease liabilities	35,108
Total operating lease liabilities	40,333
Finance leases
Finance lease right-of-use assets gross	13,511
Finance lease right-of-use assets accumulated depreciation	(7,267)
Finance lease right-of-use assets	$ 6,244
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentNet
Current portion of finance lease liabilities	$ 618
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherAccruedLiabilitiesCurrent
Noncurrent portion of finance lease liabilities	$ 6,764	$ 7,275
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent
Total finance lease liabilities	$ 7,382
Weighted-average remaining lease term (in years)
Operating leases	10 years 9 months 18 days
Finance leases	9 years 9 months 18 days
Weighted-average discount rate
Operating leases	5.71%
Finance leases	5.49%

Summary of Cash Flow Informatio

Summary of Cash Flow Information Related to Leases (Details) $ in Thousands	6 Months Ended
	Jun. 28, 2019USD ($)
Cash paid for amounts included in lease liabilities
Operating cash flows from finance leases	$ 294
Operating cash flows from operating leases	4,264
Financing cash flows from finance leases	283
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 5,471

Future Minimum Lease Payments U

Future Minimum Lease Payments Under Operating and Finance Leases (Details) $ in Thousands	Jun. 28, 2019USD ($)
Operating Lease
2019 (remainder of year)	$ 3,878
2020	6,240
2021	6,090
2022	5,340
2023	4,687
Thereafter	29,138
Total minimum lease payments	55,373
Less: Interest	(15,040)
Present value of lease liabilities	40,333
Finance Lease
2019 (remainder of year)	499
2020	980
2021	907
2022	907
2023	930
Thereafter	5,394
Total minimum lease payments	9,617
Less: Interest	(2,235)
Present value of lease liabilities	$ 7,382

Future Minimum Lease Payments_2

Future Minimum Lease Payments Under Operating and Capital Leases (Details) $ in Thousands	Dec. 31, 2018USD ($)
Operating Lease
2019	$ 7,797	[1]
2020	6,263	[1]
2021	5,757	[1]
2022	5,264	[1]
2023	4,719	[1]
Thereafter	26,149	[1]
Total minimum lease payments	55,949	[1]
Capital Lease
2019	990
2020	980
2021	907
2022	907
2023	930
Thereafter	5,394
Total minimum lease payments	$ 10,108
[1]	Future minimum lease payments as of December 31, 2018 included common-area maintenance and other property management costs and tax obligations

Common Shares and Share-based_3

Common Shares and Share-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018	Dec. 31, 2018	Oct. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Repurchase of common stock			$ 3,339,000	$ 1,929,000
Share-based compensation expense recognized	$ 2,378,000	$ 1,736,000	5,105,000	3,780,000
Selling, General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense recognized	$ 2,089,000	$ 1,574,000	$ 4,620,000	3,498,000
Deferred Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of outstanding shares	187		187		179
Restricted Stock Units and Deferred Stock Units | 2010 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total fair value of RSUs, DSUs and PSUs vested			$ 12,700,000
Restricted Stock Units and Deferred Stock Units | Board of Directors | Selling, General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense recognized			$ 900,000	$ 500,000
Restricted Stock Units (RSUs) | 2010 Incentive Award Plan | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			0 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
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%
Performance Stock Units | 2010 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total fair value of RSUs, DSUs and PSUs vested			$ 5,000,000
Range of percentage of shares to be issued upon settlement following vesting of target number of shares			200.00%
2018 Repurchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock repurchase program authorized amount						$ 25,000,000
Shares repurchased			39
Repurchase of common stock			$ 3,300,000
Shares repurchased, average cost per share			$ 84.75

Share-Based Compensation Expens

Share-Based Compensation Expense Recorded in the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,378	$ 1,736	$ 5,105	$ 3,780
Selling, general and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	2,089	1,574	4,620	3,498
Research and development and engineering
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	184	108	295	192
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 105	$ 54	$ 190	$ 90

Restricted Stock Units and Defe

Restricted Stock Units and Deferred Stock Units Issued and Outstanding (Details) - 2010 Incentive Award Plan - Restricted Stock Units and Deferred Stock Units shares in Thousands	6 Months Ended
	Jun. 28, 2019$ / sharesshares
Restricted Stock Units
Unvested, Beginning Balance	529
Granted	103
Vested	(164)
Forfeited	(20)
Unvested, Ending Balance	448
Expected to vest at end of period	426
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 26.98
Granted | $ / shares	75.52
Vested | $ / shares	27.37
Forfeited | $ / shares	46.60
Unvested, Ending Balance | $ / shares	$ 37.16

Performance-Based Awards Issued

Performance-Based Awards Issued and Outstanding (Details) - 2010 Incentive Award Plan - Performance Stock Units shares in Thousands	6 Months Ended
	Jun. 28, 2019$ / sharesshares
Performance-based Awards
Unvested, Beginning Balance	137
Granted	44
Performance adjustment	29	[1]
Vested	(59)
Unvested, Ending Balance	151
Expected to vest at end of period	137
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 37.28
Granted | $ / shares	92.93
Performance adjustment | $ / shares	14.13	[1]
Vested | $ / shares	14.13
Unvested, Ending Balance | $ / shares	$ 57.57
[1]	Represents adjustment for performance-based awards granted on March 30, 2016. These units vested at 200% during the six months ended June 28, 2019 based on the achievement of cumulative Non-GAAP EPS during the performance period of fiscal years 2016 through 2018.

Performance-Based Awards Issu_2

Performance-Based Awards Issued and Outstanding (Parenthetical) (Details)	6 Months Ended
	Jun. 28, 2019
2010 Incentive Award Plan | Performance Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage	200.00%

Fair Value of TSR Performance-B

Fair Value of TSR Performance-Based Restricted Stock Units Estimated Using Monte-Carol Valuation Model (Details) - TSR Performance-based Restricted Stock Units	6 Months Ended
	Jun. 28, 2019$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant-date stock price	$ 77.23
Expected volatility	32.54%
Risk-free interest rate	2.46%
Expected annual dividend yield	0.00%
Fair value	$ 108.58

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Income Taxes [Line Items]
Effective tax rate on income from operations	19.50%	20.80%	10.30%	16.00%
Canada Revenue Agency | CANADA
Income Taxes [Line Items]
Statutory tax rate	29.00%	29.00%	29.00%	29.00%

Schedule of Restructuring and A

Schedule of Restructuring and Acquisition Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Restructuring Cost And Reserve [Line Items]
Total restructuring charges	$ 2,134	$ 988	$ 3,370	$ 988
Acquisition and related charges	2,179	1,451	2,997	1,476
Total restructuring and acquisition related costs	4,313	2,439	6,367	2,464
2019 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring charges	1,965		2,932
2018 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring charges	$ 169	$ 988	$ 438	$ 988

Restructuring and Acquisition_3

Restructuring and Acquisition Related Costs - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	$ 2,134	$ 988	$ 3,370	$ 988
Acquisition and related charges	2,179	1,451	2,997	1,476
Finders' Fees, Legal, Valuation And Other Professional Or Consulting Fees
Restructuring and Acquisition Related Costs [Line Items]
Acquisition and related charges	1,400	300	1,600	300
Earn-out Agreement
Restructuring and Acquisition Related Costs [Line Items]
Acquisition and related charges	800	1,100	$ 1,400	1,100
2019 Restructuring
Restructuring and Acquisition Related Costs [Line Items]
Restructuring and related cost description			During the fourth quarter of 2018, the Company implemented a restructuring plan intended to realign operations, reduce costs, achieve operational efficiencies and focus resources on growth initiatives. During the three and six months ended June 28, 2019, the Company recorded $1.0 million and $2.0 million, respectively, in severance and related costs, and $0.8 million and $0.9 million, respectively, in facility related costs, in connection with the 2019 restructuring plan. As of June 28, 2019, the Company incurred cumulative costs related to this restructuring plan totaling $3.3 million. The Company anticipates completing the 2019 restructuring program in the first quarter of 2020 and expects to incur additional restructuring charges of $3.0 million to $4.5 million related to the 2019 restructuring program
Restructuring costs	1,965		$ 2,932
Restructuring cumulative costs incurred	3,300		3,300
2019 Restructuring | Vision
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	306		656
2019 Restructuring | Severance Costs
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	1,000		2,000
2019 Restructuring | Facility Costs
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	800		900
2019 Restructuring | Additional Restructuring Costs | Minimum
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	3,000		3,000
2019 Restructuring | Additional Restructuring Costs | Maximum
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	4,500		4,500
2018 Restructuring
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	169	$ 988	438	$ 988
Restructuring cumulative costs incurred	2,100		$ 2,100
2018 Restructuring | Vision
Restructuring and Acquisition Related Costs [Line Items]
Restructuring and related cost description			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 six months ended June 28, 2019, the Company recorded $0.2 million and $0.4 million, respectively, in severance and related costs in connection with the 2018 restructuring plan. These costs were reported in the Vision reportable segment. As of June 28, 2019, the Company incurred cumulative costs related to this restructuring plan totaling $2.1 million. The Company anticipates completing the 2018 restructuring program during the fourth quarter of 2019 and expects to incur additional restructuring charges of $0.5 million to $0.7 million related to the 2018 restructuring program in the Vision reportable segment.
2018 Restructuring | Severance Costs | Vision
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	200		$ 400
2018 Restructuring | Additional Restructuring Costs | Minimum | Vision
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	500		500
2018 Restructuring | Additional Restructuring Costs | Maximum | Vision
Restructuring and Acquisition Related Costs [Line Items]
Restructuring costs	$ 700		$ 700

Summary of Restructuring Costs

Summary of Restructuring Costs for Each Segment and Unallocated Corporate and Shared Services Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Restructuring Cost And Reserve [Line Items]
Restructuring costs	$ 2,134	$ 988	$ 3,370	$ 988
2019 Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring costs	1,965		2,932
Photonics | 2019 Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring costs	1,357		1,550
Vision | 2019 Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring costs	306		656
Precision Motion | 2019 Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring costs	147		194
Unallocated Corporate and Shared Services | 2019 Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring costs	$ 155		$ 532

Summary of Accrual Activities b

Summary of Accrual Activities by Components Related to Company's Restructuring Charges (Details) $ in Thousands	6 Months Ended
	Jun. 28, 2019USD ($)
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	$ 1,276
Restructuring charges	3,370
Cash payments	(1,897)
Reclassification of reserves	(477)	[1]
Non-cash write-offs and other adjustments	(964)
Accrued expense ending balance	1,308
Severance
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	876
Restructuring charges	2,281
Cash payments	(1,719)
Non-cash write-offs and other adjustments	(144)
Accrued expense ending balance	1,294
Facility
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	388
Restructuring charges	928
Cash payments	(19)
Reclassification of reserves	(477)	[1]
Non-cash write-offs and other adjustments	(820)
Other Restructuring Charges
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	12
Restructuring charges	161
Cash payments	(159)
Accrued expense ending balance	$ 14
[1]	(a) Accrual related to exited facilities was reclassified to operating lease liabilities upon adoption of ASU 2016-02.

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 28, 2019	Mar. 29, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Related Party Transaction [Line Items]
Revenue	$ 155,145		$ 150,400	$ 312,331	$ 297,365
Board of Directors
Related Party Transaction [Line Items]
Revenue		$ 11,600	$ 8,500		$ 20,300

Segment Information - Additiona

Segment Information - Additional Information (Details)	6 Months Ended
	Jun. 28, 2019SegmentEndMarket
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		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Segment Reporting Information [Line Items]
Revenue	$ 155,145	$ 150,400	$ 312,331	$ 297,365
Gross Profit	$ 65,782	$ 65,229	$ 132,071	$ 127,388
Gross profit margin percentage	42.40%	43.40%	42.30%	42.80%
Operating Income (Loss)	$ 15,105	$ 17,115	$ 29,498	$ 34,342
Operating Segments | Photonics
Segment Reporting Information [Line Items]
Revenue	58,286	64,062	117,511	125,893
Gross Profit	$ 27,308	$ 30,737	$ 54,622	$ 60,292
Gross profit margin percentage	46.90%	48.00%	46.50%	47.90%
Operating Income (Loss)	$ 11,666	$ 16,184	$ 23,976	$ 31,507
Operating Segments | Vision
Segment Reporting Information [Line Items]
Revenue	65,895	53,823	131,831	110,032
Gross Profit	$ 25,211	$ 20,441	$ 51,184	$ 40,162
Gross profit margin percentage	38.30%	38.00%	38.80%	36.50%
Operating Income (Loss)	$ 4,215	$ 391	$ 8,772	$ 866
Operating Segments | Precision Motion
Segment Reporting Information [Line Items]
Revenue	30,964	32,515	62,989	61,440
Gross Profit	$ 13,759	$ 14,702	$ 27,280	$ 27,962
Gross profit margin percentage	44.40%	45.20%	43.30%	45.50%
Operating Income (Loss)	$ 5,983	$ 7,612	$ 11,618	$ 16,219
Unallocated Corporate and Shared Services
Segment Reporting Information [Line Items]
Gross Profit	(496)	(651)	(1,015)	(1,028)
Operating Income (Loss)	$ (6,759)	$ (7,072)	$ (14,868)	$ (14,250)

Depreciation and Amortization E

Depreciation and Amortization Expenses by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Depreciation and Amortization Expenses
Depreciation and amortization expenses	$ 9,040	$ 9,120	$ 18,114	$ 18,187
Unallocated Corporate and Shared Services
Depreciation and Amortization Expenses
Depreciation and amortization expenses	71	216	126	539
Photonics | Operating Segments
Depreciation and Amortization Expenses
Depreciation and amortization expenses	2,589	2,966	5,210	6,033
Vision | Operating Segments
Depreciation and Amortization Expenses
Depreciation and amortization expenses	5,197	5,097	10,226	10,271
Precision Motion | Operating Segments
Depreciation and Amortization Expenses
Depreciation and amortization expenses	$ 1,183	$ 841	$ 2,552	$ 1,344

Schedule of Geographic Revenue

Schedule of Geographic Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
Segment Reporting Information [Line Items]
Revenue	$ 155,145	$ 150,400	$ 312,331	$ 297,365
United States
Segment Reporting Information [Line Items]
Revenue	62,010	60,467	126,770	118,580
Germany
Segment Reporting Information [Line Items]
Revenue	18,838	21,012	42,315	41,081
Rest of Europe
Segment Reporting Information [Line Items]
Revenue	35,971	23,347	66,741	50,407
China
Segment Reporting Information [Line Items]
Revenue	15,392	18,367	30,500	33,970
Rest of Asia-Pacific
Segment Reporting Information [Line Items]
Revenue	20,702	24,987	41,149	49,707
Other Countries
Segment Reporting Information [Line Items]
Revenue	$ 2,232	$ 2,220	$ 4,856	$ 3,620

Schedule of Revenue by End Mark

Schedule of Revenue by End Market (Details)	3 Months Ended		6 Months Ended
	Jun. 28, 2019	Jun. 29, 2018	Jun. 28, 2019	Jun. 29, 2018
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	45.00%	50.00%	45.00%	50.00%
Medical
Segment Reporting Information [Line Items]
Total revenue by end market	55.00%	50.00%	55.00%	50.00%

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - ARGES shares in Thousands, € in Millions, $ in Millions	Jun. 29, 2020EUR (€)	Jul. 31, 2019USD ($)shares	Jul. 31, 2019EUR (€)shares	Jun. 28, 2019
Subsequent Event [Line Items]
Business acquisition, date of acquisition				Jul. 31, 2019
Scenario, Forecast
Subsequent Event [Line Items]
Cash consideration	€ 24.8
Subsequent Event
Subsequent Event [Line Items]
Businesses combination, initial purchase price		$ 37.6	€ 33.8
Cash consideration		26.7	24
Businesses combination in common shares		$ 10.9	€ 9.8
Business combination number of shares acquired | shares		124	124
Maximum | Scenario, Forecast
Subsequent Event [Line Items]
Contingent consideration	€ 10