Novanta (NOVT) 10-Q 10 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 02, 2021	Jul. 28, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 2, 2021
Document Fiscal Year Focus	2021
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		35,489,022
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	Jul. 02, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 133,853	$ 125,054
Accounts receivable, net of allowance of $246 and $274, respectively	90,078	75,054
Inventories	94,974	92,737
Prepaid income taxes and income taxes receivable	5,829	3,203
Prepaid expenses and other current assets	11,013	8,125
Total current assets	335,747	304,173
Property, plant and equipment, net	80,164	78,676
Operating lease assets	33,407	34,444
Deferred tax assets	9,941	10,491
Other assets	2,577	2,894
Intangible assets, net	133,450	148,521
Goodwill	282,659	285,980
Total assets	877,945	865,179
Current liabilities
Current portion of long-term debt	5,330	5,508
Accounts payable	54,053	42,966
Income taxes payable	4,752	5,787
Current portion of operating lease liabilities	6,430	6,188
Accrued expenses and other current liabilities	55,989	53,780
Total current liabilities	126,554	114,229
Long-term debt	186,866	194,927
Operating lease liabilities	32,248	32,802
Deferred tax liabilities	22,350	24,134
Income taxes payable	4,429	5,112
Other liabilities	12,434	17,166
Total liabilities	384,881	388,370
Commitments and contingencies (Note 14)
Stockholders’ equity:
Preferred shares, no par value; Authorized shares: 7,000; no shares issued and outstanding
Common shares, no par value; Authorized shares: unlimited; Issued and outstanding: 35,489 and 35,163, respectively	423,856	423,856
Additional paid-in capital	52,243	58,992
Retained earnings	29,176	6,202
Accumulated other comprehensive loss	(12,211)	(12,241)
Total stockholders' equity	493,064	476,809
Total liabilities and stockholders’ equity	$ 877,945	$ 865,179

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 02, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 246	$ 274
Preferred shares, no par value	$ 0	$ 0
Preferred shares, Authorized	7,000,000	7,000,000
Preferred shares, Issued	0	0
Preferred shares, outstanding	0	0
Common shares, Authorized	Unlimited	Unlimited
Common shares, no par value	$ 0	$ 0
Common shares, Issued	35,489,000	35,163,000
Common shares, outstanding	35,489,000	35,163,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Income Statement [Abstract]
Revenue	$ 167,523	$ 144,728	$ 330,107	$ 300,196
Cost of revenue	95,117	86,026	188,961	177,049
Gross profit	72,406	58,702	141,146	123,147
Operating expenses:
Research and development and engineering	16,954	14,440	35,636	29,774
Selling, general and administrative	31,240	24,908	62,893	55,663
Amortization of purchased intangible assets	3,586	3,410	7,161	6,855
Restructuring, acquisition, and related costs	4,634	2,243	8,365	3,904
Total operating expenses	56,414	45,001	114,055	96,196
Operating income	15,992	13,701	27,091	26,951
Interest income (expense), net	(1,378)	(1,701)	(2,786)	(3,379)
Foreign exchange transaction gains (losses), net	(76)	(282)	(333)	(28)
Other income (expense), net	(97)	(22)	(167)	61
Income before income taxes	14,441	11,696	23,805	23,605
Income tax provision (benefit)	2,777	36	831	(2)
Consolidated net income	$ 11,664	$ 11,660	$ 22,974	$ 23,607
Earnings per common share (Note 4):
Basic	$ 0.33	$ 0.33	$ 0.65	$ 0.67
Diluted	$ 0.33	$ 0.33	$ 0.64	$ 0.66
Weighted average common shares outstanding—basic	35,374	35,137	35,326	35,145
Weighted average common shares outstanding—diluted	35,763	35,579	35,775	35,570

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Statement Of Income And Comprehensive Income [Abstract]
Consolidated net income		$ 11,664	$ 11,660	$ 22,974	$ 23,607
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	[1]	136	1,498	(353)	(5,308)
Pension liability adjustments, net of tax	[2]	262	100	383	837
Total other comprehensive income (loss)		398	1,598	30	(4,471)
Total consolidated comprehensive income		$ 12,062	$ 13,258	$ 23,004	$ 19,136
[1]	The tax effect on this component of comprehensive income (loss) was nominal for all periods presented.
[2]	The tax effect on this component of comprehensive income (loss) was nominal for all periods presented. See Note 3 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	Retained Earning (Deficit)	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2019	$ 417,172	$ 423,856	$ 49,748	$ (38,319)	$ (18,113)
Balance (in shares) at Dec. 31, 2019	35,052
Consolidated net income	$ 23,607			23,607
Common shares issued under stock plans	$ 179		179
Common shares issued under stock plans (in shares)	256
Common shares withheld for taxes on vested stock awards	$ (7,936)		(7,936)
Common shares withheld for taxes on vested stock awards (in shares)	(88)
Repurchases of common shares	$ (5,500)		(5,500)
Repurchases of common shares (in shares)	(65)
Share-based compensation	$ 8,847		8,847
Other comprehensive income (loss), net of tax	(4,471)				(4,471)
Balance at Jul. 03, 2020	$ 431,898	423,856	45,338	(14,712)	(22,584)
Balance (in shares) at Jul. 03, 2020	35,155
Balance at Apr. 03, 2020	$ 413,103	423,856	39,801	(26,372)	(24,182)
Balance (in shares) at Apr. 03, 2020	35,122
Consolidated net income	$ 11,660			11,660
Common shares issued under stock plans (in shares)	34
Common shares withheld for taxes on vested stock awards	$ (111)		(111)
Common shares withheld for taxes on vested stock awards (in shares)	(1)
Share-based compensation	$ 5,648		5,648
Other comprehensive income (loss), net of tax	1,598				1,598
Balance at Jul. 03, 2020	$ 431,898	423,856	45,338	(14,712)	(22,584)
Balance (in shares) at Jul. 03, 2020	35,155
Balance at Dec. 31, 2020	$ 476,809	423,856	58,992	6,202	(12,241)
Balance (in shares) at Dec. 31, 2020	35,163
Consolidated net income	$ 22,974			22,974
Common shares issued under stock plans (in shares)	460
Common shares withheld for taxes on vested stock awards	$ (18,428)		(18,428)
Common shares withheld for taxes on vested stock awards (in shares)	(134)
Share-based compensation	$ 11,679		11,679
Other comprehensive income (loss), net of tax	30				30
Balance at Jul. 02, 2021	$ 493,064	423,856	52,243	29,176	(12,211)
Balance (in shares) at Jul. 02, 2021	35,489
Balance at Apr. 02, 2021	$ 476,123	423,856	47,364	17,512	(12,609)
Balance (in shares) at Apr. 02, 2021	35,384
Consolidated net income	$ 11,664			11,664
Common shares issued under stock plans (in shares)	106
Common shares withheld for taxes on vested stock awards	$ (156)		(156)
Common shares withheld for taxes on vested stock awards (in shares)	(1)
Share-based compensation	$ 5,035		5,035
Other comprehensive income (loss), net of tax	398				398
Balance at Jul. 02, 2021	$ 493,064	$ 423,856	$ 52,243	$ 29,176	$ (12,211)
Balance (in shares) at Jul. 02, 2021	35,489

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020
Cash flows from operating activities:
Consolidated net income	$ 22,974	$ 23,607
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	19,724	18,767
Provision for inventory excess and obsolescence	2,505	2,272
Share-based compensation	11,679	8,847
Deferred income taxes	(699)	(3,280)
Other	682	1,005
Changes in assets and liabilities which (used)/provided cash, excluding effects from business acquisitions:
Accounts receivable	(15,580)	2,172
Inventories	(5,645)	5,947
Prepaid income taxes, income taxes receivable, prepaid expenses and other current assets	(4,750)	893
Accounts payable, income taxes payable, accrued expenses and other current liabilities	22,059	(10,931)
Other non-current assets and liabilities	(935)	2,273
Cash provided by operating activities	52,014	51,572
Cash flows from investing activities:
Purchases of property, plant and equipment	(8,643)	(4,640)
Payment of contingent consideration related to acquisition of technology assets	(2,200)	(2,632)
Cash used in investing activities	(10,843)	(7,272)
Cash flows from financing activities:
Repayments under term loan and revolving credit facilities	(2,706)	(2,520)
Payments of debt issuance costs		(1,614)
Payments of withholding taxes from share-based awards	(18,428)	(7,936)
Repurchases of common shares		(5,500)
Payment of contingent consideration related to an acquisition	(1,836)	(1,135)
Purchase of building under finance lease	(8,743)
Payments of deferred and escrowed purchase price related to acquisitions		(5,772)
Other financing activities	(281)	(501)
Cash used in financing activities	(31,994)	(24,978)
Effect of exchange rates on cash and cash equivalents	(378)	(772)
Increase (decrease) in cash and cash equivalents	8,799	18,550
Cash and cash equivalents, beginning of the period	125,054	78,944
Cash and cash equivalents, end of the period	133,853	97,494
Supplemental disclosure of cash flow information:
Cash paid for interest	2,240	2,797
Cash paid for income taxes	6,734	2,433
Income tax refunds received	$ 1,199	$ 1,979

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 02, 2021
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 consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, these interim consolidated financial statements include all adjustments and accruals of a normal and recurring nature necessary to fairly state the results of the interim periods presented. The results for interim periods are not necessarily indicative of results to be expected for the full year or for any future periods. The Company’s unaudited interim consolidated financial statements are prepared for each quarterly period ending on the Friday closest to the end of the calendar quarter, with the exception of the fourth quarter which always ends on December 31. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Estimates and assumptions are reviewed on an on-going basis and the effects of revisions are reflected in the period in which such revisions are deemed to be necessary. The Company evaluates its estimates based on historical experience, current conditions, including estimated economic implications of the COVID-19 pandemic, and various other assumptions that it believes are reasonable under the circumstances. The accounting estimates assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves and the carrying value of goodwill and other long-lived assets. While there was not a material change to the consolidated financial statements related to these estimates as of and for the six months ended July 2, 2021, the Company’s future assessment of the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Recent Accounting Pronouncements The following table provides a brief description of recent Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles of Accounting Standards Codification (“ASC”) 740, “Income Taxes”, including: (i) the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; (ii) the exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment (or vice-versa); and (iii) the exception for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 also simplifies GAAP for other areas of ASC 740 by clarifying and amending the existing guidance. January 1, 2021. Early adoption is permitted. The Company adopted ASU 2019-12 during the first quarter of 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements In March 2020, the FASB issued ASU 2020-04, “Reference rate reform (Topic 848): Facilitation of the effects of reference rate reform on financial reporting.” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Upon issuance. ASU 2020-04 is elective. The Company does not expect the impact of ASU 2020-04 to be material to its consolidated financial statements.

Revenue

Revenue	6 Months Ended
	Jul. 02, 2021
Revenue From Contract With Customer [Abstract]
Revenue	2. Revenue The Company recognizes revenue when control of promised goods or services is transferred to customers. The transfer of control generally occurs upon shipment when title and risk of loss pass to the customer. The vast majority of the Company’s revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for such products, which is generally at contractually stated prices. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Performance Obligations Substantially all of the Company’s revenue is recognized at a point in time, upon shipment, rather than over time. At the request of its customers, the Company may perform professional services, generally for the maintenance and repair of products previously sold to those customers and for engineering services. Professional services for the maintenance and repair of products are typically short in duration, mostly less than one month, and generally involve a single distinct performance obligation. The related revenue is recognized at a point in time when control transfers to the customer upon completion of professional services. The consideration expected to be received in exchange for such services is typically the contractually stated amount. Certain engineering services are longer in duration and the related revenue is recognized over time, as the Company has a right to consideration from a customer, based on the corresponding value to the customer from the Company’s performance completed to date. Professional services aggregate to less than 3 % of the Company’s consolidated revenue. 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 as 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 the related revenue. As of July 2, 2021 and December 31, 2020, contract liabilities were $5.6 million and $6.5 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 July 2, 2021 is primarily due to $4.1 million of revenue recognized during the period that was included in the contract liability balance at December 31, 2020, partially offset by cash payments received in advance of satisfying performance obligations. Disaggregated Revenue See Note 15 for the Company’s disaggregation of revenue by segment, geography and end market.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 02, 2021
Equity [Abstract]
Accumulated Other Comprehensive Loss	3. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss was as follows (in thousands): Total Accumulated Other Cumulative Pension Comprehensive Translation Liability Loss Adjustments Adjustments Balance at December 31, 2020 $ (12,241 ) $ (2,296 ) $ (9,945 ) Other comprehensive income (loss) (451 ) (353 ) (98 ) Amounts reclassified from accumulated other comprehensive loss 481 — 481 Balance at July 2, 2021 $ (12,211 ) $ (2,649 ) $ (9,562 ) The amounts reclassified from accumulated other comprehensive loss were included in other income (expense) in the consolidated statements of operations.

Earnings per Common Share

Earnings per Common Share	6 Months Ended
	Jul. 02, 2021
Earnings Per Share [Abstract]
Earnings per Common Share	4. Earnings per Common Share Basic earnings per common share is computed by dividing consolidated net income by the weighted average number of common shares outstanding during the period. For diluted earnings per common share, the denominator includes the dilutive effect of outstanding common share equivalents. For the three and six months ended July 2, 2021 and July 3, 2020, respectively, weighted average shares outstanding for the diluted earnings per common share included the dilutive effect of outstanding restricted stock units, stock options, and total shareholder return 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 common share calculation based on the number of shares, if any, that would be issuable as of the end of the reporting period, assuming the end of the reporting period is also the end of the performance period. Dilutive effects of attainment-based contingently issuable shares granted to the former Laser Quantum Limited (“Laser Quantum”) noncontrolling interest shareholders, non-GAAP EPS performance-based restricted stock units and operating cash flow performance-based restricted stock units are included in the weighted average common share calculation when the performance targets have been achieved based on the cumulative achievement against the performance targets as of the end of each reporting period. The following table sets forth the computation of basic and diluted earnings per common share (amounts in thousands, except per share data): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Numerators: Consolidated net income $ 11,664 $ 11,660 $ 22,974 $ 23,607 Denominators: Weighted average common shares outstanding— basic 35,374 35,137 35,326 35,145 Dilutive potential common shares 389 442 449 425 Weighted average common shares outstanding— diluted 35,763 35,579 35,775 35,570 Antidilutive potential common shares excluded from above 25 — 23 26 Earnings per Common Share: Basic $ 0.33 $ 0.33 $ 0.65 $ 0.67 Diluted $ 0.33 $ 0.33 $ 0.64 $ 0.66 For both the three and six months ended July 2, 2021, 46 thousand non-GAAP EPS performance-based restricted stock units and 37 thousand operating cash flow performance-based restricted stock units granted to certain members of the executive management team, and 213 thousand shares of restricted stock issued to the former Laser Quantum non-controlling interest share holders are considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of July 2, 202 1 . For both the three and six months ended July 3, 2020, 71 thousand non-GAAP EPS performance-based restricted stock units granted to certain members of the executive management team and 213 thousand shares of restricted stock issued to the former Laser Quantum non-controlling interest shareholders were considered contingently issuable shares and were excluded from the calculation of the denominator as the contingent conditions had not been met as of July 3, 2020.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 02, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair Value Measurements ASC 820, “Fair Value Measurements,” establishes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the third is considered unobservable: • Level 1: Quoted prices for identical assets or liabilities in active markets which the Company can access • Level 2: Observable inputs other than those described in Level 1 • Level 3: Unobservable inputs Current Assets and Liabilities The Company’s cash equivalents are highly liquid investments with original maturities of three months or less, which represent 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 July 31, 2019, the Company acquired ARGES GmbH (“ARGES”). Under the purchase and sale agreement for the ARGES acquisition, the former owner of ARGES is eligible to receive contingent consideration based on the achievement of certain revenue targets by the Company from August 2019 through December 2026. The undiscounted range of possible contingent consideration is zero to €10.0 million ($11.1 million). If the revenue targets are achieved, the contingent consideration would be payable annually with the first payment due in the first quarter of 2021. The estimated fair value of the contingent consideration of €7.1 million ($7.9 million) was determined based on the Monte Carlo valuation method and was recorded as part of the purchase price as of the acquisition date. Subsequent changes in the estimated fair value of the contingent consideration liability are recorded in the consolidated statement of operations in restructuring, acquisition, and related costs until the liability is fully settled. During 2020, the fair value of the contingent consideration was adjusted to €4.1 million ($5.1 million). In March 2021, the Company made the first installment payment of €0.4 million ($0.4 million), which is included in cash flows from financing activities in the consolidated statement of cash flows for the six months ended July 2, 2021. There were no other changes in the fair value of the contingent consideration during the three and six months ended July 2, 2021. 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 by the Company from April 2019 through March 2022. The undiscounted range of possible contingent consideration is zero to €8.0 million ($9.0 million). If the revenue targets are achieved, the contingent consideration would be payable in cash in three annual installments from 2020 to 2022. The estimated fair value of the contingent consideration of €5.8 million ($6.6 million) was determined based on the Monte Carlo valuation method and was recorded as part of the purchase price as of the acquisition date. Subsequent changes in the estimated fair value of the contingent consideration liability are recorded in the consolidated statement of operations in restructuring , acquisition , and related costs until the liability is fully settled. Based on the revenue performance and revenue projections for fiscal years 2021 and 2022 as of December 31, 2020, the fair value of the contingent consideration was adjusted to € 2.3 million ($ 2.9 million). Based on the revenue performance and revenue projections as of April 2, 2021, the fair value of the contingent consideration was adjusted to € 2.4 million ($ 2.9 million). The Company made the first installment payment of € 1.0 million ($ 1.1 million) in May 2020 and the second installment payment of €1.2 million ($ 1.4 million) in May 2021. These installment payments are reported as cash flows from financing activities in the consolidate d statement of cash flows for the respective periods . There were no other changes in the fair value of the contingent consideration during the three and six months ended July 2, 2021. 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 by the Company from 2018 to 2021 from products utilizing the acquired technologies. The undiscounted range of possible contingent consideration is zero to €5.5 million ($6.6 million). If the revenue 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 assets acquired and amortized over the remaining useful life of the underlying assets. The Company made the first installment payment of €2.4 million ($2.6 million) in February 2020 and the second installment payment of €1.8 million ($2.2 million) in February 2021. These installment payments are reported as cash flows from investing activities in the consolidated statement of cash flows for the respective periods. There were no other changes in the fair value of the contingent consideration during the three and six months ended July 2, 2021. 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 July 2, 2021 (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 $ 19,104 $ 19,104 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 149 — 149 — $ 19,253 $ 19,104 $ 149 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 3,721 $ — $ — $ 3,721 Foreign currency forward contracts — — — — Other liabilities: Contingent considerations - Long-term 3,691 — — 3,691 $ 7,412 $ — $ — $ 7,412 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, 2020 (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 $ 11,047 $ 11,047 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 27 — 27 — $ 11,074 $ 11,047 $ 27 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 4,280 $ — $ — $ 4,280 Foreign currency forward contracts — — — — Other liabilities: Contingent considerations - Long-term 7,276 — — 7,276 $ 11,556 $ — $ — $ 11,556 Changes in the fair value of Level 3 contingent considerations during the six months ended July 2, 2021 were as follows (in thousands): Contingent Considerations Balance at December 31, 2020 $ 11,556 Payments (4,036 ) Fair value adjustments 126 Effect of foreign exchange rates (234 ) Balance at July 2, 2021 $ 7,412 The following table provides qualitative information associated with the fair value measurement of the Company’s Level 3 liabilities: Liability July 2, 2021 Fair Value (in thousands) Valuation Technique Unobservable Inputs Percentage Applied Contingent consideration (ARGES) $4,485 Monte Carlo method Historical and projected revenues from August 2019 through December 2026 N/A Revenue volatility 21.0% Cost of debt 2.6% Discount rate 3.7% Contingent consideration (Ingenia) $1,528 Monte Carlo method Historical and projected revenues from April 2019 through March 2022 N/A Revenue volatility 38.5% Cost of debt 3.1% Discount rate 9.6% Contingent consideration (Other) $1,399 Discounted cash flow method Historical and projected revenues for fiscal years 2018 to 2021 N/A Revenue 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 9 to Consolidated Financial Statements for a discussion of the estimated fair value of the Company’s outstanding debt.

Foreign Currency Contracts

Foreign Currency Contracts	6 Months Ended
	Jul. 02, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Foreign Currency Contracts	6. Foreign Currency Contracts The Company addresses market risks from changes in foreign currency exchange rates through a risk management program that includes the use of derivative financial instruments to mitigate certain foreign currency transaction exposures from future settlement of non-functional currency monetary assets and liabilities as of the end of a period. The Company does not enter into derivative transactions for speculative purposes. Gains and losses on derivative financial instruments substantially offset losses and gains on the underlying hedged exposures. Furthermore, the Company manages its exposures to counterparty risks on derivative instruments by entering into contracts with a diversified group of major financial institutions and by actively monitoring outstanding positions. As of July 2, 2021, the aggregate notional amount and fair value of the Company’s foreign currency forward contracts was $27.5 million and a net gain of $0.1 million, respectively. As of December 31, 2020, the aggregate notional amount and fair value of the Company’s foreign currency forward contracts was $28.5 million and a net gain of less than $0.1 million, respectively. The Company recognized an aggregate net loss of $0.1 million and an aggregate net gain of $0.6 million for the three and six months ended July 2, 2021, respectively, and an aggregate net gain of $0.7 million and $0.4 million for the three and six months ended July 3, 2020, respectively. 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
	Jul. 02, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	7. Goodwill and Intangible Assets Goodwill Goodwill is recorded when the consideration for a business combination exceeds the fair value of net tangible and identifiable intangible assets acquired. The Company tests its goodwill balances for impairment annually as of the beginning of the second quarter or more frequently if indicators are present or changes in circumstances suggest that an impairment may exist. The Company performed the most recent annual goodwill and indefinite-lived intangible asset impairment test as of the beginning of the second quarter of 2021 and noted no impairment. The following table summarizes changes in goodwill during the six months ended July 2, 2021 (in thousands): Balance at beginning of the period $ 285,980 Effect of foreign exchange rate changes (3,321 ) Balance at end of the period $ 282,659 Goodwill by reportable segment as of July 2, 2021 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 217,304 $ 163,231 $ 53,353 $ 433,888 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 114,843 $ 131,509 $ 36,307 $ 282,659 Goodwill by reportable segment as of December 31, 2020 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 218,517 $ 165,195 $ 53,497 $ 437,209 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 116,056 $ 133,473 $ 36,451 $ 285,980 Intangible Assets Intangible assets as of July 2, 2021 and December 31, 2020, respectively, are summarized as follows (in thousands): July 2, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and developed technologies $ 163,174 $ (116,078 ) $ 47,096 $ 164,430 $ (110,572 ) $ 53,858 Customer relationships 165,963 (99,114 ) 66,849 167,429 (92,892 ) 74,537 Trademarks and trade names 18,271 (11,793 ) 6,478 18,367 (11,268 ) 7,099 Amortizable intangible assets 347,408 (226,985 ) 120,423 350,226 (214,732 ) 135,494 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 360,435 $ (226,985 ) $ 133,450 $ 363,253 $ (214,732 ) $ 148,521 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 July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Amortization expense – cost of revenue $ 2,982 $ 2,716 $ 5,959 $ 5,450 Amortization expense – operating expenses 3,586 3,410 7,161 6,855 Total amortization expense $ 6,568 $ 6,126 $ 13,120 $ 12,305 Estimated amortization expense for each of the five succeeding years and thereafter as of July 2, 2021 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2021 (remainder of year) $ 5,903 $ 7,096 $ 12,999 2022 10,115 13,340 23,455 2023 8,892 11,600 20,492 2024 6,646 9,585 16,231 2025 5,198 7,972 13,170 Thereafter 10,342 23,734 34,076 Total $ 47,096 $ 73,327 $ 120,423

Supplementary Balance Sheet Inf

Supplementary Balance Sheet Information	6 Months Ended
	Jul. 02, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Supplementary Balance Sheet Information	8. Supplementary Balance Sheet Information The following tables provide the details of selected balance sheet items as of the periods indicated (in thousands): Inventories July 2, December 31, 2021 2020 Raw materials $ 59,749 $ 55,657 Work-in-process 16,933 15,487 Finished goods 17,164 20,234 Demo and consigned inventory 1,128 1,359 Total inventories $ 94,974 $ 92,737 Accrued Expenses and Other Current Liabilities July 2, December 31, 2021 2020 Accrued compensation and benefits $ 20,444 $ 12,510 Accrued warranty 4,565 4,919 Contract liabilities, current portion 5,332 6,173 Finance lease obligations 582 9,720 Accrued earn-out and contingent considerations 11,874 10,796 Other 13,192 9,662 Total $ 55,989 $ 53,780 Accrued Warranty Six Months Ended July 2, July 3, 2021 2020 Balance at beginning of the period $ 4,919 $ 5,756 Provision charged to cost of revenue 929 1,166 Use of provision (1,254 ) (1,798 ) Foreign currency exchange rate changes (29 ) (40 ) Balance at end of the period $ 4,565 $ 5,084 Other Long Term Liabilities July 2, December 31, 2021 2020 Finance lease obligations $ 5,611 $ 5,908 Accrued pension liabilities 734 1,511 Accrued contingent considerations 3,691 7,276 Other 2,398 2,471 Total $ 12,434 $ 17,166

Debt

Debt	6 Months Ended
	Jul. 02, 2021
Debt Disclosure [Abstract]
Debt	9. Debt Debt consisted of the following (in thousands): July 2, December 31, 2021 2020 Senior Credit Facilities – term loan $ 5,363 $ 5,545 Less: unamortized debt issuance costs (33 ) (37 ) Total current portion of long-term debt $ 5,330 $ 5,508 Senior Credit Facilities – term loan $ 93,581 $ 99,534 Senior Credit Facilities – revolving credit facility 97,107 99,761 Less: unamortized debt issuance costs (3,822 ) (4,368 ) Total long-term debt $ 186,866 $ 194,927 Total Senior Credit Facilities $ 192,196 $ 200,435 Senior Credit Facilities On December 31, 2019, the Company entered into an amended and restated credit agreement (the “Third Amended and Restated Credit Agreement”) with existing lenders for an aggregate credit facility of $450.0 million, consisting of a $100.0 million U.S. dollar equivalent euro-denominated (approximately €90.2 million) 5-year term loan facility and a $350.0 million 5-year revolving credit facility (collectively, the “Senior Credit Facilities”). The Senior Credit Facilities mature in December 2024 and includes an uncommitted “accordion” feature pursuant to which the commitments under the revolving credit facility may be increased by an additional $200.0 million in aggregate, subject to certain customary conditions. On March 27, 2020, the Company entered into an amendment (the “First Amendment”) to the Third Amended and Restated Credit Agreement The outstanding principal balance under the term loan facility is payable in quarterly installments of €1.1 million beginning in March 2020, with the remaining balance due upon maturity. The Company may make additional principal payments at any time, which will reduce the next quarterly installment payment due. Borrowings under the revolving credit facility may be repaid at any time through December 2024. The Company repaid €2.3 million ($2.7 million) of its term loan during the six months ended July 2, 2021. The Company is required to satisfy certain financial and non-financial covenants under the Third Amended and Restated Credit Agreement. The Third Amended and Restated Credit Agreement also contains customary events of default. The Company was in compliance with these covenants as of July 2, 2021. Liens The Company’s obligations under the Senior Credit Facilities are secured, on a senior basis, by a lien on substantially all of the assets of Novanta Inc. Fair Value of Debt As of July 2, 2021 and December 31, 2020, 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
	Jul. 02, 2021
Leases [Abstract]
Leases	10. Leases Most leases held by the Company expire between 2021 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 options to terminate the leases within one year. The exercise of lease renewal or termination options is at the Company’s sole discretion; therefore, the majority of 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 lives of the right-of-use assets and leasehold improvements are limited to the expected lease terms. The following table summarizes the components of lease costs (in thousands): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Operating lease cost $ 1,964 $ 1,870 $ 3,795 $ 3,907 Finance lease cost Amortization of right-of-use assets 151 247 302 495 Interest on lease liabilities 86 108 173 218 Variable lease cost 324 344 559 723 Total lease cost $ 2,525 $ 2,569 $ 4,829 $ 5,343 The following table provides additional details of balance sheet information related to the Company’s leases (in thousands, except lease term and discount rate): July 2, December 31, 2021 2020 Operating leases Operating lease right-of-use assets $ 33,407 $ 34,444 Current portion of operating lease liabilities $ 6,430 $ 6,188 Operating lease liabilities 32,248 32,802 Total operating lease liabilities $ 38,678 $ 38,990 Finance leases Property, plant and equipment, gross $ 9,582 $ 19,819 Accumulated depreciation (4,767 ) (4,934 ) Finance lease assets included in property, plant and equipment, net $ 4,815 $ 14,885 Accrued expenses and other current liabilities $ 582 $ 9,720 Other liabilities 5,611 5,908 Total finance lease liabilities $ 6,193 $ 15,628 Weighted-average remaining lease term (in years) Operating leases 9.2 9.3 Finance leases 8.0 3.5 Weighted-average discount rate Operating leases 5.39 % 5.50 % Finance leases 5.54 % 3.00 % The following table provides additional details of cash flow information related to the Company’s leases (in thousands): Six Months Ended July 2, July 3, 2021 2020 Cash paid for amounts included in lease liabilities: Operating cash flows from finance leases $ 173 $ 218 Operating cash flows from operating leases $ 3,252 $ 3,993 Financing cash flows from finance leases $ 9,024 $ 680 Supplemental non-cash information: Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,257 $ 2,164 During the six months ended July 2, 2021, the Company paid $8.7 million upon the exercise of an option to purchase a building under a finance lease agreement in Germany. The cash payment is presented as a cash outflow from financing activities in the consolidated statement of cash flows. Future minimum lease payments under operating and finance leases expiring subsequent to July 2, 2021, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2021 (remainder of year) $ 4,163 $ 453 2022 7,290 907 2023 5,978 930 2024 5,184 954 2025 4,970 954 Thereafter 23,180 3,486 Total minimum lease payments 50,765 7,684 Less: Interest (12,087 ) (1,491 ) Present value of lease liabilities $ 38,678 $ 6,193

Preferred and Common Shares and

Preferred and Common Shares and Share-Based Compensation	6 Months Ended
	Jul. 02, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Preferred and Common Shares and Share-Based Compensation	11. Preferred and Common Shares and Share-Based Compensation Preferred Shares In May 2021, the Company’s shareholders approved a special resolution to amend the Company’s articles to authorize up to 7.0 million preferred shares for future issuance. The Company’s Board of Directors is authorized to designate and issue one or more series of preferred shares, fix the rights, preferences and designation, as deemed necessary or advisable, relating to the preferred shares, provided that no shares of any series may be entitled to more than one vote per share. As of July 2, 2021, no preferred shares have been issued and outstanding. 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. In February 2020, the Company’s Board of Directors approved a new share repurchase plan (the “2020 Repurchase Plan”) authorizing the repurchase of an additional $50.0 million worth of the Company’s common shares. As of July 2, 2021, the Company had $59.5 million available for future share repurchases under the 2018 and 2020 Share Repurchase Plans. 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 July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Selling, general and administrative $ 3,834 $ 3,162 $ 8,763 $ 5,960 Research and development and engineering 515 861 1,242 1,054 Cost of revenue 686 1,388 1,674 1,596 Restructuring, acquisition, and related costs — 237 — 237 Total share-based compensation expense $ 5,035 $ 5,648 $ 11,679 $ 8,847 Share-based compensation expense reported in selling, general and administrative expenses included expenses related to restricted stock units and deferred stock units granted to the members of the Company’s Board of Directors of $1.1 million and $1.0 million during the six months ended July 2, 2021 and July 3, 2020, respectively. On May 13, 2021, the Company’s shareholders approved the Amended and Restated 2010 Incentive Award Plan, which increases the number of shares authorized for issuance under the plan from 4,398,613 shares to 6,148,613 shares, extends the term of the plan through May 13, 2031, and includes certain provisions that reflect good corporate governance practices. 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 the DSUs is recognized in full on the date of grant, as the DSUs are fully vested and non-forfeitable upon grant. There were 91 thousand and 162 thousand DSUs outstanding as of July 2, 2021 and December 31, 2020, respectively. Outstanding DSUs are included in the calculation of weighted average basic shares outstanding for the respective periods. The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the six months ended July 2, 2021: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2020 625 $ 58.79 Granted 165 $ 136.60 Vested (286 ) $ 75.12 Forfeited (12 ) $ 98.78 Unvested at July 2, 2021 492 $ 74.34 Expected to vest as of July 2, 2021 469 The total fair value of RSUs and DSUs that vested during the six months ended July 2, 2021 was $40.3 million based on the market price of the underlying shares on the date of vesting. Performance Stock Units The Company typically grants two types of annual 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 In February 2021, the Company granted operating cash flow performance-based restricted stock units (“OCF-PSUs”) to certain members of the executive management team. Upon completion of the requisite service periods, the OCF-PSUs will vest in two tranches if the Company achieves the cumulative operating cash flow performance target for fiscal years 2021 through 2023 as approved by the Company’s Compensation Committee as of the date of grant. The first fifty percent of the OCF-PSU grant will vest at the end of the four-year five-year 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 July 2, 2021: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2020 142 $ 88.99 Granted 67 $ 150.89 Performance adjustment 28 $ 67.72 Vested (75 ) $ 64.25 Forfeited — $ — Unvested at July 2, 2021 162 $ 122.26 Expected to vest as of July 2, 2021 137 The unvested PSUs are shown at target in the table above. As of July 2, 2021, the maximum number of shares to be earned under these PSU grants was approximately 286 thousand shares. The performance adjustment shares and vested shares shown in the table above are for performance-based awards granted on February 22, 2018. These awards vested at 160% of target number of shares during the six months ended July 2, 2021 based on the achievement of cumulative Non-GAAP EPS and applicable relative TSR performance conditions during the performance period of fiscal years 2018 through 2020. The total fair value of PSUs that vested during the six months ended July 2, 2021 was $9.3 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 July 2, 2021 Grant-date stock price $ 138.23 Expected volatility 42.44 % Risk-free interest rate 0.22 % Expected annual dividend yield — Fair value $ 166.64 Stock Options No stock options were granted during the six months ended July 2, 2021. There were 60 thousand fully-vested stock options outstanding as of July 2, 2021.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 02, 2021
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The Company determines its estimated annual effective tax rate at the end of each interim period based on full-year forecasted pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with the cumulative effect of any changes in the estimated annual effective tax rate being recorded in the fiscal quarter in which the change is determined. The tax effect of significant unusual items is reflected in the period in which they occur. Since the Company is incorporated in Canada, it is required to use Canada’s statutory tax rate of 29.0% in the determination of the estimated annual effective tax rate. The Company maintains a valuation allowance on balances of certain U.S. state net operating losses and certain non-U.S. tax attributes that the Company has determined are more likely than not to be realized. A valuation allowance is required when, based upon an assessment of various factors, including recent operating loss history, anticipated future earnings, and prudent and reasonable tax planning strategies, it is more likely than not that some portion of the deferred tax assets will not be realized. In conjunction with the Company’s ongoing review of its actual results and anticipated future earnings, the Company continuously reassesses the possibility of releasing the valuation allowance currently in place on its deferred tax assets. The Company’s effective tax rate of 19.2% for the three months ended July 2, 2021 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, other tax credits, and a release of uncertain tax position reserves, partially offset by the revaluation of long term deferred tax balances resulting from the UK corporate tax rate change. The Company’s effective tax rate of 3.5% for the six months ended July 2, 2021 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, other tax credits, a release of uncertain tax position reserves, and windfall tax benefits upon vesting of certain share-based compensation awards, partially offset by the revaluation of long term deferred tax balances resulting from the UK corporate tax rate change during the period. For the six months ended July 2, 2021, the windfall tax benefits upon vesting of certain share-based compensation awards had a benefit of 14.7% on the Company’s effective tax rate. The Company’s effective tax rate of 0.3% for the three months ended July 3, 2020 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 a release of a portion of the valuation allowance. For the three months ended July 3, 2020, the valuation allowance release had a benefit of 11.4% on the Company’s effective tax rate. The Company’s effective tax rate of (0%) for the six months ended July 3, 2020 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, windfall tax benefits upon vesting of certain share-based compensation awards during the period, and a release of a portion of the valuation allowance. For the six months ended July 3, 2020, the windfall tax benefits upon vesting of certain share-based compensation awards and the valuation allowance release had a benefit of 11.2% and 5.7%, respectively, on the Company’s effective tax rate.

Restructuring, Acquisition, and

Restructuring, Acquisition, and Related Costs	6 Months Ended
	Jul. 02, 2021
Restructuring And Related Activities [Abstract]
Restructuring, Acquisition, and Related Costs	13. Restructuring, Acquisition, and Related Costs The following table summarizes restructuring, acquisition, and related costs in the accompanying consolidated statements of operations (in thousands): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 2020 restructuring $ 1,165 $ — $ 2,503 $ — 2019 restructuring — 30 208 599 2018 restructuring — 668 — 754 Total restructuring charges 1,165 698 2,711 1,353 Acquisition and related charges 3,469 1,545 5,654 2,551 Total restructuring, acquisition, and related costs $ 4,634 $ 2,243 $ 8,365 $ 3,904 2020 Restructuring As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program is focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program will be focused on cost reduction actions that improve gross margins for the overall company. During the three and six months ended July 2, 2021, the Company recorded $1.2 million and $2.5 million, respectively, in severance and other costs in connection with the 2020 restructuring program. As of July 2, 2021, the Company had incurred cumulative costs related to this restructuring plan totaling $5.2 million. The Company anticipates substantially completing the 2020 restructuring program in the fourth quarter of 2021 and expects to incur additional restructuring charges of $3.0 million to $4.0 million related to the 2020 restructuring program in the next twelve months. The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Photonics $ 195 $ — $ 490 $ — Vision 275 — 697 — Precision Motion 695 — 1,316 — Unallocated Corporate and Shared Services — — — — Total $ 1,165 $ — $ 2,503 $ — 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 (the “2019 restructuring plan”). During the three months and six months ended July 2, 2021, the Company incurred $0 and $0.2 million, respectively, in severance and related costs in connection with the 2019 restructuring plan. As of July 2, 2021, the Company incurred cumulative costs related to this restructuring plan totaling $9.0 million. The 2019 restructuring program was completed in the first quarter of 2021. 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, 2020 $ 1,800 $ 1,681 $ 116 $ 3 Restructuring charges 2,711 1,926 602 183 Cash payments (1,502 ) (1,204 ) (140 ) (158 ) Non-cash charges and other adjustments (359 ) 1 (360 ) — Balance at July 2, 2021 $ 2,650 $ 2,404 $ 218 $ 28 Acquisition and Related Charges Acquisition costs in connection with business combinations, including finders’ fees, legal, valuation, and other professional or consulting fees, totaled $1.6 million and $1.8 million for the three and six months ended July 2, 2021, respectively, and less than $0.1 million and $0.1 million for the three and six months ended July 3, 2020, respectively. During the three and six months ended July 2, 2021, the Company incurred $0.8 million and $1.8 million, respectively, in legal costs related to a dispute involving a company that was acquired in 2019. Acquisition and related costs recognized under earn-out agreements in connection with acquisitions totaled $0.9 million and $1.9 million for the three and six months ended July 2, 2021, respectively, and $0.9 million and $1.8 million for the three and six months ended July 3, 2020, respectively. The majority of acquisition and related costs for the three and six months ended July 2, 2021 were included in the Company’s Precision Motion, Vision and Unallocated Corporate and Shared Services reportable segments. The majority of acquisition and related costs for the three and six months ended July 3, 2020 were included in the Company’s Precision Motion and Vision reportable segments.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 02, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies Purchase Commitments There have been no material changes to the Company’s purchase commitments since December 31, 2020. Legal Contingencies In April 2020, the Company received notification of an arbitration demand filed with the American Arbitration Association against a business acquired by the Company in June 2019. The arbitration demand was filed by a contract counterparty to a joint product development agreement entered into by the business before Novanta acquired it. The arbitration demand alleges breach of contract and other claims arising out of allegations that the business failed to engage in required marketing activities for the product developed under the joint product development agreement. The claimant sought compensatory and punitive damages, lost profits and other relief. During the three months ended July 2, 2021, the arbitrator formally closed the arbitration pursuant to a settlement between the parties. No financial damages payments were made by the Company. The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. The Company reviews the status of each significant matter and assesses the potential financial exposure on a quarterly basis. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available as of the date of the consolidated balance sheet. As additional information becomes available, the Company reassesses the potential liability related to any pending claims and litigations and may revise its estimates. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. 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 they are involved as a result of serving or having served in certain capacities. Indemnification is not available with respect to a proceeding as to which it has been adjudicated that the person did not act in good faith in the reasonable belief that the action was in the best interests of the Company. Certain of the Company’s officers and directors are also a party to indemnification agreements with the Company. These indemnification agreements provide, among other things, that the director and officer shall be indemnified to the fullest extent permitted by applicable law against all expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by such officer or director in connection with any proceeding by reason of his or her relationship with the Company. In addition, the indemnification agreements provide for the advancement of expenses incurred by such director or officer in connection with any proceeding covered by the indemnification agreement, subject to the conditions set forth therein and to the extent such advancement is not prohibited by law. The indemnification agreements also set out the procedures for determining entitlement to indemnification, the requirements relating to notice and defense of claims for which indemnification is sought, the procedures for enforcement of indemnification rights, the limitations on and exclusions from indemnification, and the minimum levels of directors’ and officers’ liability insurance to be maintained by the Company.

Segment Information

Segment Information	6 Months Ended
	Jul. 02, 2021
Segment Reporting [Abstract]
Segment Information	15. 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, solid state laser, 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, recorder and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification (“RFID”) technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. The vast majority of the segment’s product offerings are sold to OEM customers. 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, and air bearing spindles 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 July 2, July 3, July 2, July 3, Revenue 2021 2020 2021 2020 Photonics $ 62,357 $ 47,803 $ 120,851 $ 102,943 Vision 63,447 64,740 131,083 133,748 Precision Motion 41,719 32,185 78,173 63,505 Total $ 167,523 $ 144,728 $ 330,107 $ 300,196 Three Six Months Ended July 2, July 3, July 2, July 3, Gross Profit 2021 2020 2021 2020 Photonics $ 29,593 $ 20,898 $ 57,702 $ 45,559 Vision 24,443 24,515 51,369 51,090 Precision Motion 20,874 13,834 36,951 27,742 Unallocated Corporate and Shared Services (2,504 ) (545 ) (4,876 ) (1,244 ) Total $ 72,406 $ 58,702 $ 141,146 $ 123,147 Three Six Months Ended July 2, July 3, July 2, July 3, Gross Profit Margin 2021 2020 2021 2020 Photonics 47.5 % 43.7 % 47.7 % 44.3 % Vision 38.5 % 37.9 % 39.2 % 38.2 % Precision Motion 50.0 % 43.0 % 47.3 % 43.7 % Total 43.2 % 40.6 % 42.8 % 41.0 % Three Six Months Ended July 2, July 3, July 2, July 3, Operating Income (Loss) 2021 2020 2021 2020 Photonics $ 14,196 $ 6,937 $ 26,591 $ 15,852 Vision 3,206 4,665 6,572 10,299 Precision Motion 12,279 6,515 19,724 13,053 Unallocated Corporate and Shared Services (13,689 ) (4,416 ) (25,796 ) (12,253 ) Total $ 15,992 $ 13,701 $ 27,091 $ 26,951 Three Six Months Ended July 2, July 3, July 2, July 3, Depreciation and Amortization Expenses 2021 2020 2021 2020 Photonics $ 2,905 $ 2,790 $ 5,803 $ 5,439 Vision 5,279 5,272 10,554 10,549 Precision Motion 1,618 1,333 3,225 2,686 Unallocated Corporate and Shared Services 73 42 142 93 Total $ 9,875 $ 9,437 $ 19,724 $ 18,767 Revenue by Geography The Company aggregates geographic revenue based on the customer location where products are shipped to. Revenue by geography was as follows (in thousands): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 United States $ 59,497 $ 54,524 $ 118,727 $ 113,729 Germany 23,773 22,148 46,135 45,381 Rest of Europe 35,600 30,713 71,175 63,798 China 23,506 17,472 46,057 32,876 Rest of Asia-Pacific 22,762 17,842 43,509 39,542 Other 2,385 2,029 4,504 4,870 Total $ 167,523 $ 144,728 $ 330,107 $ 300,196 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 medical market and advanced industrial market. Revenue by end market was approximately as follows: Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Medical 52 % 55 % 53 % 57 % Advanced Industrial 48 % 45 % 47 % 43 % 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
	Jul. 02, 2021
Subsequent Events [Abstract]
Subsequent Events	16. Subsequent Events On July 9, 2021, the Company signed a purchase and sale agreement to acquire Schneider Electric Motion USA, Inc. (“SEM”), a Marlborough, Connecticut-based manufacturer of integrated stepper motors and electronic controls for automation On July 18, 2021, the Company signed a purchase and sale agreement to acquire ATI Industrial Automation Inc. (“ATI”), an Apex, North Carolina-based developer and manufacturer of robotic end-of-arm tooling for an initial purchase price of $172 million upfront in cash and additional contingent cash payments associated with 2021 financial performance. The transaction is subject to customary regulatory approvals and closing conditions and is anticipated to close in the third quarter of fiscal year 2021. ATI will be included in our Precision Motion reportable segment.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jul. 02, 2021
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 consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, these interim consolidated financial statements include all adjustments and accruals of a normal and recurring nature necessary to fairly state the results of the interim periods presented. The results for interim periods are not necessarily indicative of results to be expected for the full year or for any future periods. The Company’s unaudited interim consolidated financial statements are prepared for each quarterly period ending on the Friday closest to the end of the calendar quarter, with the exception of the fourth quarter which always ends on December 31.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Estimates and assumptions are reviewed on an on-going basis and the effects of revisions are reflected in the period in which such revisions are deemed to be necessary. The Company evaluates its estimates based on historical experience, current conditions, including estimated economic implications of the COVID-19 pandemic, and various other assumptions that it believes are reasonable under the circumstances. The accounting estimates assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, inventory and related reserves and the carrying value of goodwill and other long-lived assets. While there was not a material change to the consolidated financial statements related to these estimates as of and for the six months ended July 2, 2021, the Company’s future assessment of the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following table provides a brief description of recent Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles of Accounting Standards Codification (“ASC”) 740, “Income Taxes”, including: (i) the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; (ii) the exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment (or vice-versa); and (iii) the exception for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 also simplifies GAAP for other areas of ASC 740 by clarifying and amending the existing guidance. January 1, 2021. Early adoption is permitted. The Company adopted ASU 2019-12 during the first quarter of 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements In March 2020, the FASB issued ASU 2020-04, “Reference rate reform (Topic 848): Facilitation of the effects of reference rate reform on financial reporting.” ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Upon issuance. ASU 2020-04 is elective. The Company does not expect the impact of ASU 2020-04 to be material to its consolidated financial statements.
Revenue Recognition	The Company recognizes revenue when control of promised goods or services is transferred to customers. The transfer of control generally occurs upon shipment when title and risk of loss pass to the customer. The vast majority of the Company’s revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for such products, which is generally at contractually stated prices. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue. Performance Obligations Substantially all of the Company’s revenue is recognized at a point in time, upon shipment, rather than over time. At the request of its customers, the Company may perform professional services, generally for the maintenance and repair of products previously sold to those customers and for engineering services. Professional services for the maintenance and repair of products are typically short in duration, mostly less than one month, and generally involve a single distinct performance obligation. The related revenue is recognized at a point in time when control transfers to the customer upon completion of professional services. The consideration expected to be received in exchange for such services is typically the contractually stated amount. Certain engineering services are longer in duration and the related revenue is recognized over time, as the Company has a right to consideration from a customer, based on the corresponding value to the customer from the Company’s performance completed to date. Professional services aggregate to less than 3 % of the Company’s consolidated revenue. 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 as 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 the related revenue. As of July 2, 2021 and December 31, 2020, contract liabilities were $5.6 million and $6.5 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 July 2, 2021 is primarily due to $4.1 million of revenue recognized during the period that was included in the contract liability balance at December 31, 2020, partially offset by cash payments received in advance of satisfying performance obligations. Disaggregated Revenue See Note 15 for the Company’s disaggregation of revenue by segment, geography and end market.
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 exposures to counterparty risks on derivative instruments by entering into contracts with a diversified group of major financial institutions and by actively monitoring outstanding positions.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 02, 2021
Equity [Abstract]
Components of Accumulated Other Comprehensive Loss	Changes in accumulated other comprehensive loss was as follows (in thousands): Total Accumulated Other Cumulative Pension Comprehensive Translation Liability Loss Adjustments Adjustments Balance at December 31, 2020 $ (12,241 ) $ (2,296 ) $ (9,945 ) Other comprehensive income (loss) (451 ) (353 ) (98 ) Amounts reclassified from accumulated other comprehensive loss 481 — 481 Balance at July 2, 2021 $ (12,211 ) $ (2,649 ) $ (9,562 )

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	6 Months Ended
	Jul. 02, 2021
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 July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Numerators: Consolidated net income $ 11,664 $ 11,660 $ 22,974 $ 23,607 Denominators: Weighted average common shares outstanding— basic 35,374 35,137 35,326 35,145 Dilutive potential common shares 389 442 449 425 Weighted average common shares outstanding— diluted 35,763 35,579 35,775 35,570 Antidilutive potential common shares excluded from above 25 — 23 26 Earnings per Common Share: Basic $ 0.33 $ 0.33 $ 0.65 $ 0.67 Diluted $ 0.33 $ 0.33 $ 0.64 $ 0.66

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 02, 2021
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 July 2, 2021 (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 $ 19,104 $ 19,104 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 149 — 149 — $ 19,253 $ 19,104 $ 149 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 3,721 $ — $ — $ 3,721 Foreign currency forward contracts — — — — Other liabilities: Contingent considerations - Long-term 3,691 — — 3,691 $ 7,412 $ — $ — $ 7,412 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, 2020 (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 $ 11,047 $ 11,047 $ — $ — Prepaid expenses and other current assets: Foreign currency forward contracts 27 — 27 — $ 11,074 $ 11,047 $ 27 $ — Liabilities Accrued expenses and other current liabilities: Contingent considerations - Current $ 4,280 $ — $ — $ 4,280 Foreign currency forward contracts — — — — Other liabilities: Contingent considerations - Long-term 7,276 — — 7,276 $ 11,556 $ — $ — $ 11,556
Changes in Fair Value of Level 3 Contingent Considerations	Changes in the fair value of Level 3 contingent considerations during the six months ended July 2, 2021 were as follows (in thousands): Contingent Considerations Balance at December 31, 2020 $ 11,556 Payments (4,036 ) Fair value adjustments 126 Effect of foreign exchange rates (234 ) Balance at July 2, 2021 $ 7,412
Schedule of Fair Value Measurement Inputs and Valuation Techniques	The following table provides qualitative information associated with the fair value measurement of the Company’s Level 3 liabilities: Liability July 2, 2021 Fair Value (in thousands) Valuation Technique Unobservable Inputs Percentage Applied Contingent consideration (ARGES) $4,485 Monte Carlo method Historical and projected revenues from August 2019 through December 2026 N/A Revenue volatility 21.0% Cost of debt 2.6% Discount rate 3.7% Contingent consideration (Ingenia) $1,528 Monte Carlo method Historical and projected revenues from April 2019 through March 2022 N/A Revenue volatility 38.5% Cost of debt 3.1% Discount rate 9.6% Contingent consideration (Other) $1,399 Discounted cash flow method Historical and projected revenues for fiscal years 2018 to 2021 N/A Revenue discount rate 22.8%

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jul. 02, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Changes in Goodwill	The following table summarizes changes in goodwill during the six months ended July 2, 2021 (in thousands): Balance at beginning of the period $ 285,980 Effect of foreign exchange rate changes (3,321 ) Balance at end of the period $ 282,659
Goodwill by Reportable Segment	Goodwill by reportable segment as of July 2, 2021 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 217,304 $ 163,231 $ 53,353 $ 433,888 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 114,843 $ 131,509 $ 36,307 $ 282,659 Goodwill by reportable segment as of December 31, 2020 was as follows (in thousands): Reportable Segment Photonics Vision Precision Motion Total Goodwill $ 218,517 $ 165,195 $ 53,497 $ 437,209 Accumulated impairment of goodwill (102,461 ) (31,722 ) (17,046 ) (151,229 ) Total $ 116,056 $ 133,473 $ 36,451 $ 285,980
Intangible Assets	Intangible assets as of July 2, 2021 and December 31, 2020, respectively, are summarized as follows (in thousands): July 2, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Patents and developed technologies $ 163,174 $ (116,078 ) $ 47,096 $ 164,430 $ (110,572 ) $ 53,858 Customer relationships 165,963 (99,114 ) 66,849 167,429 (92,892 ) 74,537 Trademarks and trade names 18,271 (11,793 ) 6,478 18,367 (11,268 ) 7,099 Amortizable intangible assets 347,408 (226,985 ) 120,423 350,226 (214,732 ) 135,494 Non-amortizable intangible assets: Trade names 13,027 — 13,027 13,027 — 13,027 Totals $ 360,435 $ (226,985 ) $ 133,450 $ 363,253 $ (214,732 ) $ 148,521
Amortization Expense of Intangible Assets	Amortization expense was as follows (in thousands): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Amortization expense – cost of revenue $ 2,982 $ 2,716 $ 5,959 $ 5,450 Amortization expense – operating expenses 3,586 3,410 7,161 6,855 Total amortization expense $ 6,568 $ 6,126 $ 13,120 $ 12,305
Estimated Amortization Expense	Estimated amortization expense for each of the five succeeding years and thereafter as of July 2, 2021 was as follows (in thousands): Year Ending December 31, Cost of Revenue Operating Expenses Total 2021 (remainder of year) $ 5,903 $ 7,096 $ 12,999 2022 10,115 13,340 23,455 2023 8,892 11,600 20,492 2024 6,646 9,585 16,231 2025 5,198 7,972 13,170 Thereafter 10,342 23,734 34,076 Total $ 47,096 $ 73,327 $ 120,423

Supplementary Balance Sheet I_2

Supplementary Balance Sheet Information (Tables)	6 Months Ended
	Jul. 02, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Inventories	Inventories July 2, December 31, 2021 2020 Raw materials $ 59,749 $ 55,657 Work-in-process 16,933 15,487 Finished goods 17,164 20,234 Demo and consigned inventory 1,128 1,359 Total inventories $ 94,974 $ 92,737
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities July 2, December 31, 2021 2020 Accrued compensation and benefits $ 20,444 $ 12,510 Accrued warranty 4,565 4,919 Contract liabilities, current portion 5,332 6,173 Finance lease obligations 582 9,720 Accrued earn-out and contingent considerations 11,874 10,796 Other 13,192 9,662 Total $ 55,989 $ 53,780
Accrued Warranty	Accrued Warranty Six Months Ended July 2, July 3, 2021 2020 Balance at beginning of the period $ 4,919 $ 5,756 Provision charged to cost of revenue 929 1,166 Use of provision (1,254 ) (1,798 ) Foreign currency exchange rate changes (29 ) (40 ) Balance at end of the period $ 4,565 $ 5,084
Other Long Term Liabilities	Other Long Term Liabilities July 2, December 31, 2021 2020 Finance lease obligations $ 5,611 $ 5,908 Accrued pension liabilities 734 1,511 Accrued contingent considerations 3,691 7,276 Other 2,398 2,471 Total $ 12,434 $ 17,166

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jul. 02, 2021
Debt Disclosure [Abstract]
Debt	Debt consisted of the following (in thousands): July 2, December 31, 2021 2020 Senior Credit Facilities – term loan $ 5,363 $ 5,545 Less: unamortized debt issuance costs (33 ) (37 ) Total current portion of long-term debt $ 5,330 $ 5,508 Senior Credit Facilities – term loan $ 93,581 $ 99,534 Senior Credit Facilities – revolving credit facility 97,107 99,761 Less: unamortized debt issuance costs (3,822 ) (4,368 ) Total long-term debt $ 186,866 $ 194,927 Total Senior Credit Facilities $ 192,196 $ 200,435

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 02, 2021
Leases [Abstract]
Summary of Components of Lease Costs	The following table summarizes the components of lease costs (in thousands): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Operating lease cost $ 1,964 $ 1,870 $ 3,795 $ 3,907 Finance lease cost Amortization of right-of-use assets 151 247 302 495 Interest on lease liabilities 86 108 173 218 Variable lease cost 324 344 559 723 Total lease cost $ 2,525 $ 2,569 $ 4,829 $ 5,343
Summary of Balance Sheet Information Related to Leases	The following table provides additional details of balance sheet information related to the Company’s leases (in thousands, except lease term and discount rate): July 2, December 31, 2021 2020 Operating leases Operating lease right-of-use assets $ 33,407 $ 34,444 Current portion of operating lease liabilities $ 6,430 $ 6,188 Operating lease liabilities 32,248 32,802 Total operating lease liabilities $ 38,678 $ 38,990 Finance leases Property, plant and equipment, gross $ 9,582 $ 19,819 Accumulated depreciation (4,767 ) (4,934 ) Finance lease assets included in property, plant and equipment, net $ 4,815 $ 14,885 Accrued expenses and other current liabilities $ 582 $ 9,720 Other liabilities 5,611 5,908 Total finance lease liabilities $ 6,193 $ 15,628 Weighted-average remaining lease term (in years) Operating leases 9.2 9.3 Finance leases 8.0 3.5 Weighted-average discount rate Operating leases 5.39 % 5.50 % Finance leases 5.54 % 3.00 %
Summary of Cash Flow Information Related to Leases	The following table provides additional details of cash flow information related to the Company’s leases (in thousands): Six Months Ended July 2, July 3, 2021 2020 Cash paid for amounts included in lease liabilities: Operating cash flows from finance leases $ 173 $ 218 Operating cash flows from operating leases $ 3,252 $ 3,993 Financing cash flows from finance leases $ 9,024 $ 680 Supplemental non-cash information: Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,257 $ 2,164
Future Minimum Lease Payments Under Operating and Finance Leases	Future minimum lease payments under operating and finance leases expiring subsequent to July 2, 2021, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2021 (remainder of year) $ 4,163 $ 453 2022 7,290 907 2023 5,978 930 2024 5,184 954 2025 4,970 954 Thereafter 23,180 3,486 Total minimum lease payments 50,765 7,684 Less: Interest (12,087 ) (1,491 ) Present value of lease liabilities $ 38,678 $ 6,193

Preferred and Common Shares a_2

Preferred and Common Shares and Share-Based Compensation (Tables)	6 Months Ended
	Jul. 02, 2021
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 July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Selling, general and administrative $ 3,834 $ 3,162 $ 8,763 $ 5,960 Research and development and engineering 515 861 1,242 1,054 Cost of revenue 686 1,388 1,674 1,596 Restructuring, acquisition, and related costs — 237 — 237 Total share-based compensation expense $ 5,035 $ 5,648 $ 11,679 $ 8,847
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 July 2, 2021 Grant-date stock price $ 138.23 Expected volatility 42.44 % Risk-free interest rate 0.22 % Expected annual dividend yield — Fair value $ 166.64
Amended and Restated 2010 Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted Stock Units and Deferred Stock Units Issued and Outstanding	The table below summarizes activities relating to RSUs and DSUs issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan during the six months ended July 2, 2021: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2020 625 $ 58.79 Granted 165 $ 136.60 Vested (286 ) $ 75.12 Forfeited (12 ) $ 98.78 Unvested at July 2, 2021 492 $ 74.34 Expected to vest as of July 2, 2021 469
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 July 2, 2021: Shares (In thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2020 142 $ 88.99 Granted 67 $ 150.89 Performance adjustment 28 $ 67.72 Vested (75 ) $ 64.25 Forfeited — $ — Unvested at July 2, 2021 162 $ 122.26 Expected to vest as of July 2, 2021 137

Restructuring, Acquisition, a_2

Restructuring, Acquisition, and Related Costs (Tables)	6 Months Ended
	Jul. 02, 2021
Restructuring And Related Activities [Abstract]
Schedule of Restructuring, Acquisition and Related Costs	The following table summarizes restructuring, acquisition, and related costs in the accompanying consolidated statements of operations (in thousands): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 2020 restructuring $ 1,165 $ — $ 2,503 $ — 2019 restructuring — 30 208 599 2018 restructuring — 668 — 754 Total restructuring charges 1,165 698 2,711 1,353 Acquisition and related charges 3,469 1,545 5,654 2,551 Total restructuring, acquisition, and related costs $ 4,634 $ 2,243 $ 8,365 $ 3,904
Summary of Restructuring Charges by Reportable Segment	The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Photonics $ 195 $ — $ 490 $ — Vision 275 — 697 — Precision Motion 695 — 1,316 — Unallocated Corporate and Shared Services — — — — Total $ 1,165 $ — $ 2,503 $ —
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, 2020 $ 1,800 $ 1,681 $ 116 $ 3 Restructuring charges 2,711 1,926 602 183 Cash payments (1,502 ) (1,204 ) (140 ) (158 ) Non-cash charges and other adjustments (359 ) 1 (360 ) — Balance at July 2, 2021 $ 2,650 $ 2,404 $ 218 $ 28

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 02, 2021
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 July 2, July 3, July 2, July 3, Revenue 2021 2020 2021 2020 Photonics $ 62,357 $ 47,803 $ 120,851 $ 102,943 Vision 63,447 64,740 131,083 133,748 Precision Motion 41,719 32,185 78,173 63,505 Total $ 167,523 $ 144,728 $ 330,107 $ 300,196 Three Six Months Ended July 2, July 3, July 2, July 3, Gross Profit 2021 2020 2021 2020 Photonics $ 29,593 $ 20,898 $ 57,702 $ 45,559 Vision 24,443 24,515 51,369 51,090 Precision Motion 20,874 13,834 36,951 27,742 Unallocated Corporate and Shared Services (2,504 ) (545 ) (4,876 ) (1,244 ) Total $ 72,406 $ 58,702 $ 141,146 $ 123,147 Three Six Months Ended July 2, July 3, July 2, July 3, Gross Profit Margin 2021 2020 2021 2020 Photonics 47.5 % 43.7 % 47.7 % 44.3 % Vision 38.5 % 37.9 % 39.2 % 38.2 % Precision Motion 50.0 % 43.0 % 47.3 % 43.7 % Total 43.2 % 40.6 % 42.8 % 41.0 % Three Six Months Ended July 2, July 3, July 2, July 3, Operating Income (Loss) 2021 2020 2021 2020 Photonics $ 14,196 $ 6,937 $ 26,591 $ 15,852 Vision 3,206 4,665 6,572 10,299 Precision Motion 12,279 6,515 19,724 13,053 Unallocated Corporate and Shared Services (13,689 ) (4,416 ) (25,796 ) (12,253 ) Total $ 15,992 $ 13,701 $ 27,091 $ 26,951 Three Six Months Ended July 2, July 3, July 2, July 3, Depreciation and Amortization Expenses 2021 2020 2021 2020 Photonics $ 2,905 $ 2,790 $ 5,803 $ 5,439 Vision 5,279 5,272 10,554 10,549 Precision Motion 1,618 1,333 3,225 2,686 Unallocated Corporate and Shared Services 73 42 142 93 Total $ 9,875 $ 9,437 $ 19,724 $ 18,767
Schedule of Geographic Revenue	The Company aggregates geographic revenue based on the customer location where products are shipped to. Revenue by geography was as follows (in thousands): Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 United States $ 59,497 $ 54,524 $ 118,727 $ 113,729 Germany 23,773 22,148 46,135 45,381 Rest of Europe 35,600 30,713 71,175 63,798 China 23,506 17,472 46,057 32,876 Rest of Asia-Pacific 22,762 17,842 43,509 39,542 Other 2,385 2,029 4,504 4,870 Total $ 167,523 $ 144,728 $ 330,107 $ 300,196
Revenue By End Market	The Company primarily operates in two end markets: the medical market and advanced industrial market. Revenue by end market was approximately as follows: Three Six Months Ended July 2, July 3, July 2, July 3, 2021 2020 2021 2020 Medical 52 % 55 % 53 % 57 % Advanced Industrial 48 % 45 % 47 % 43 % Total 100 % 100 % 100 % 100 %

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 02, 2021	Dec. 31, 2020
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	$ 5.6	$ 6.5
Revenue recognized		$ 4.1
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 | 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
Maximum | Maintenance and Repair of Products
Revenue [Line Items]
Percentage of revenue for professional services	3.00%
Duration of professional services performed under customer contract	1 month

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) $ in Thousands	6 Months Ended
	Jul. 02, 2021USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ 476,809
Other comprehensive income (loss)	(451)
Amounts reclassified from accumulated other comprehensive loss	481
Ending Balance	493,064
Total Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(12,241)
Ending Balance	(12,211)
Cumulative Translation Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(2,296)
Other comprehensive income (loss)	(353)
Ending Balance	(2,649)
Pension Liability Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(9,945)
Other comprehensive income (loss)	(98)
Amounts reclassified from accumulated other comprehensive loss	481
Ending Balance	$ (9,562)

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
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Numerators:
Consolidated net income	$ 11,664	$ 11,660	$ 22,974	$ 23,607
Denominators:
Weighted average common shares outstanding—basic	35,374	35,137	35,326	35,145
Dilutive potential common shares	389	442	449	425
Weighted average common shares outstanding— diluted	35,763	35,579	35,775	35,570
Antidilutive potential common shares excluded from above	25		23	26
Earnings per Common Share:
Basic	$ 0.33	$ 0.33	$ 0.65	$ 0.67
Diluted	$ 0.33	$ 0.33	$ 0.64	$ 0.66

Earnings per Common Share - Add

Earnings per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
EPS Performance-based Restricted Stock Units
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of weighted average common shares outstanding	46	71	46	71
Operating Cash Flow Performance Based Restricted Stock Units
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of weighted average common shares outstanding	37		37
Laser Quantum | Restricted Stock
Computation Of Earnings Per Share [Line Items]
Contingently issuable shares excluded from calculation of weighted average common shares outstanding	213	213	213	213

Fair Value Measurements - Busin

Fair Value Measurements - Business Combination Contingent Consideration - Additional Information (Details)	1 Months Ended				3 Months Ended	6 Months Ended			9 Months Ended
	May 31, 2021USD ($)	May 31, 2021EUR (€)	May 31, 2020USD ($)	May 31, 2020EUR (€)	Jul. 02, 2021USD ($)	Jul. 02, 2021USD ($)	Jul. 02, 2021EUR (€)	Jul. 03, 2020USD ($)	Oct. 02, 2020Installment	Apr. 02, 2021USD ($)	Apr. 02, 2021EUR (€)	Dec. 31, 2020USD ($)	Dec. 31, 2020EUR (€)	Jul. 31, 2019USD ($)	Jul. 31, 2019EUR (€)	Apr. 16, 2019USD ($)	Apr. 16, 2019EUR (€)
Business Acquisition [Line Items]
Payment for contingent consideration						$ 1,836,000		$ 1,135,000
ARGES GmbH
Business Acquisition [Line Items]
Undiscounted low range of contingent consideration | €															€ 0
Undiscounted high range of contingent consideration														$ 11,100,000	10,000,000
Fair value of contingent consideration												$ 5,100,000	€ 4,100,000	$ 7,900,000	€ 7,100,000
Payment for contingent consideration						400,000	€ 400,000
Changes in fair value of contingent consideration					$ 0	0
Ingenia-CAT, S.L.
Business Acquisition [Line Items]
Undiscounted low range of contingent consideration | €																	€ 0
Undiscounted high range of contingent consideration																$ 9,000,000	8,000,000
Fair value of contingent consideration										$ 2,900,000	€ 2,400,000	$ 2,900,000	€ 2,300,000			$ 6,600,000	€ 5,800,000
Payment for contingent consideration	$ 1,400,000	€ 1,200,000	$ 1,100,000	€ 1,000,000
Changes in fair value of contingent consideration					$ 0	$ 0
Number of contingent consideration annual installments | Installment									3

Fair Value Measurements - Asset

Fair Value Measurements - Asset Acquisition Contingent Consideration - Additional Information (Details)	1 Months Ended				3 Months Ended		6 Months Ended
	Feb. 28, 2021USD ($)	Feb. 28, 2021EUR (€)	Feb. 29, 2020USD ($)	Feb. 29, 2020EUR (€)	Jul. 02, 2021USD ($)	Apr. 02, 2021Installment	Jul. 02, 2021USD ($)	Dec. 14, 2016USD ($)	Dec. 14, 2016EUR (€)
Asset Acquisition Contingent Consideration [Line Items]
Payment for contingent consideration	$ 2,200,000	€ 1,800,000	$ 2,600,000	€ 2,400,000
Video Signal Processing and Management Technologies
Asset Acquisition Contingent Consideration [Line Items]
Date of Acquisition Agreement						Dec. 14, 2016
Number of contingent consideration annual installments | Installment						4
Undiscounted range of outcomes, minimum | €									€ 0
Undiscounted range of outcomes, maximum								$ 6,600,000	€ 5,500,000
Changes in fair value of contingent consideration | $					$ 0		$ 0

Fair Values of Assets and Liabi

Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020
Liabilities
Contingent considerations - Long-term	$ 3,691	$ 7,276
Fair Value Measurements Recurring
Assets
Cash equivalents	19,104	11,047
Assets, fair value	19,253	11,074
Liabilities
Liabilities, fair value	7,412	11,556
Fair Value Measurements Recurring | Prepaid Expenses and Other Current Assets
Assets
Foreign currency forward contracts	149	27
Fair Value Measurements Recurring | Accrued Expenses and Other Current Liabilities
Liabilities
Contingent considerations - Current	3,721	4,280
Fair Value Measurements Recurring | Other Liabilities
Liabilities
Contingent considerations - Long-term	3,691	7,276
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash equivalents	19,104	11,047
Assets, fair value	19,104	11,047
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2)
Assets
Assets, fair value	149	27
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Prepaid Expenses and Other Current Assets
Assets
Foreign currency forward contracts	149	27
Fair Value Measurements Recurring | Significant Other Unobservable Inputs (Level 3)
Liabilities
Liabilities, fair value	7,412	11,556
Fair Value Measurements Recurring | Significant Other Unobservable Inputs (Level 3) | Accrued Expenses and Other Current Liabilities
Liabilities
Contingent considerations - Current	3,721	4,280
Fair Value Measurements Recurring | Significant Other Unobservable Inputs (Level 3) | Other Liabilities
Liabilities
Contingent considerations - Long-term	$ 3,691	$ 7,276

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Fair Value of Level 3 Contingent Considerations (Details) - Significant Other Unobservable Inputs (Level 3) $ in Thousands	6 Months Ended
	Jul. 02, 2021USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 11,556
Payments	(4,036)
Fair value adjustments	126
Effect of foreign exchange rates	(234)
Ending balance	$ 7,412

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurement Inputs and Valuation Techniques (Details) $ in Thousands, € in Millions	Jul. 02, 2021USD ($)	Apr. 02, 2021USD ($)	Apr. 02, 2021EUR (€)	Dec. 31, 2020USD ($)	Dec. 31, 2020EUR (€)	Jul. 31, 2019USD ($)	Jul. 31, 2019EUR (€)	Apr. 16, 2019USD ($)	Apr. 16, 2019EUR (€)
ARGES GmbH
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration				$ 5,100	€ 4.1	$ 7,900	€ 7.1
Ingenia-CAT, S.L.
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration		$ 2,900	€ 2.4	$ 2,900	€ 2.3			$ 6,600	€ 5.8
Significant Other Unobservable Inputs (Level 3) | ARGES GmbH
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration	$ 4,485
Valuation Technique	novt:ValuationTechniqueMonteCarloMethodMember
Significant Other Unobservable Inputs (Level 3) | ARGES GmbH | Revenue volatility
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business acquisition, Percentage Applied	21
Significant Other Unobservable Inputs (Level 3) | ARGES GmbH | Cost of debt
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business acquisition, Percentage Applied	2.6
Significant Other Unobservable Inputs (Level 3) | ARGES GmbH | Discount rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business acquisition, Percentage Applied	3.7
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	$ 1,528
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	38.5
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	3.1
Significant Other Unobservable Inputs (Level 3) | Ingenia-CAT, S.L. | Discount rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Business acquisition, Percentage Applied	9.6
Significant Other Unobservable Inputs (Level 3) | Other
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration	$ 1,399
Valuation Technique	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Significant Other Unobservable Inputs (Level 3) | Other | 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 ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020	Dec. 31, 2020
Derivative [Line Items]
Notional amount of foreign currency forward contracts	$ 27,500,000		$ 27,500,000		$ 28,500,000
Net gain (loss) on foreign currency forward contracts			100,000
Foreign Exchange Transaction Gains (Losses)
Derivative [Line Items]
Net gain (loss) on foreign currency forward contracts	$ (100,000)	$ 700,000	$ 600,000	$ 400,000
Maximum
Derivative [Line Items]
Net gain (loss) on foreign currency forward contracts					$ 100,000

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Details)	3 Months Ended
	Jul. 02, 2021USD ($)
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
	Jul. 02, 2021USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Balance at beginning of the period	$ 285,980
Effect of foreign exchange rate changes	(3,321)
Balance at end of the period	$ 282,659

Goodwill By Reportable Segment

Goodwill By Reportable Segment (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020
Goodwill [Line Items]
Goodwill	$ 433,888	$ 437,209
Accumulated impairment of goodwill	(151,229)	(151,229)
Total	282,659	285,980
Photonics
Goodwill [Line Items]
Goodwill	217,304	218,517
Accumulated impairment of goodwill	(102,461)	(102,461)
Total	114,843	116,056
Vision
Goodwill [Line Items]
Goodwill	163,231	165,195
Accumulated impairment of goodwill	(31,722)	(31,722)
Total	131,509	133,473
Precision Motion
Goodwill [Line Items]
Goodwill	53,353	53,497
Accumulated impairment of goodwill	(17,046)	(17,046)
Total	$ 36,307	$ 36,451

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	$ 347,408	$ 350,226
Amortizable intangible assets, accumulated amortization	(226,985)	(214,732)
Amortizable intangible assets, net carrying amount	120,423	135,494
Non-amortizable intangible assets	13,027	13,027
Gross carrying amount	360,435	363,253
Net carrying amount	133,450	148,521
Patents and Developed Technologies
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	163,174	164,430
Amortizable intangible assets, accumulated amortization	(116,078)	(110,572)
Amortizable intangible assets, net carrying amount	47,096	53,858
Customer Relationships
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	165,963	167,429
Amortizable intangible assets, accumulated amortization	(99,114)	(92,892)
Amortizable intangible assets, net carrying amount	66,849	74,537
Trademarks and Trade Names
Schedule of Intangible Assets Disclosure [Line Items]
Amortizable intangible assets, gross carrying amount	18,271	18,367
Amortizable intangible assets, accumulated amortization	(11,793)	(11,268)
Amortizable intangible assets, net carrying amount	$ 6,478	$ 7,099

Amortization Expense of Intangi

Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense – cost of revenue	$ 2,982	$ 2,716	$ 5,959	$ 5,450
Amortization expense – operating expenses	3,586	3,410	7,161	6,855
Total amortization expense	$ 6,568	$ 6,126	$ 13,120	$ 12,305

Estimated Amortization Expense

Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020
Finite Lived Intangible Assets [Line Items]
2021 (remainder of year)	$ 12,999
2022	23,455
2023	20,492
2024	16,231
2025	13,170
Thereafter	34,076
Amortizable intangible assets, net carrying amount	120,423	$ 135,494
Cost of Revenue
Finite Lived Intangible Assets [Line Items]
2021 (remainder of year)	5,903
2022	10,115
2023	8,892
2024	6,646
2025	5,198
Thereafter	10,342
Amortizable intangible assets, net carrying amount	47,096
Operating Expenses
Finite Lived Intangible Assets [Line Items]
2021 (remainder of year)	7,096
2022	13,340
2023	11,600
2024	9,585
2025	7,972
Thereafter	23,734
Amortizable intangible assets, net carrying amount	$ 73,327

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 59,749	$ 55,657
Work-in-process	16,933	15,487
Finished goods	17,164	20,234
Demo and consigned inventory	1,128	1,359
Total inventories	$ 94,974	$ 92,737

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020	Jul. 03, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Accrued compensation and benefits	$ 20,444	$ 12,510
Accrued warranty	4,565	4,919	$ 5,084	$ 5,756
Contract liabilities, current portion	5,332	6,173
Finance lease obligations	582	9,720
Accrued earn-out and contingent considerations	11,874	10,796
Other	13,192	9,662
Total	$ 55,989	$ 53,780

Accrued Warranty (Details)

Accrued Warranty (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020
Product Warranties Disclosures [Abstract]
Balance at beginning of the period	$ 4,919	$ 5,756
Provision charged to cost of revenue	929	1,166
Use of provision	(1,254)	(1,798)
Foreign currency exchange rate changes	(29)	(40)
Balance at end of the period	$ 4,565	$ 5,084

Other Long Term Liabilities (De

Other Long Term Liabilities (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Finance lease obligations	$ 5,611	$ 5,908
Accrued pension liabilities	734	1,511
Accrued contingent considerations	3,691	7,276
Other	2,398	2,471
Total	$ 12,434	$ 17,166

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total current portion of long-term debt	$ 5,330	$ 5,508
Total long-term debt	186,866	194,927
Total Senior Credit Facilities	192,196	200,435
Term Loan
Debt Instrument [Line Items]
Current portion of long-term debt, Gross	5,363	5,545
Long-term debt, Gross	93,581	99,534
Term Loan And Revolving Credit Facility
Debt Instrument [Line Items]
Less: unamortized debt issuance costs	(33)	(37)
Less: unamortized debt issuance costs	(3,822)	(4,368)
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, Gross	$ 97,107	$ 99,761

Debt - Additional Information (

Debt - Additional Information (Details)	Dec. 31, 2019USD ($)	Mar. 31, 2021EUR (€)	Jul. 02, 2021USD ($)	Jul. 02, 2021EUR (€)	Jul. 03, 2020USD ($)	Mar. 27, 2020USD ($)	Dec. 31, 2019EUR (€)
Debt Instrument [Line Items]
Repayment of debt			$ 2,706,000		$ 2,520,000
Term Loan
Debt Instrument [Line Items]
Repayment of debt			$ 2,700,000	€ 2,300,000
Third Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 450,000,000
Third Amended and Restated Credit Agreement | First Amendment Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 495,000,000
Increased in line of credit facility						145,000,000
Line of credit facility accordion potential feature						$ 200,000,000
Third Amended and Restated Credit Agreement | Term Loan
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 100,000,000						€ 90,200,000
Senior credit facilities maturity period	5 years
Senior credit facilities, maturity month and year	2024-12
Debt instrument, frequency of periodic payment		quarterly
Quarterly installments payable on term loan | €		€ 1,100,000
Third Amended and Restated Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 350,000,000
Senior credit facilities maturity period	5 years
Senior credit facilities, maturity month and year	2024-12		2024-12	2024-12
Line of credit facility accordion potential feature	$ 200,000,000

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	6 Months Ended
	Jul. 02, 2021USD ($)
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 options to terminate the leases within one year.
Purchase of building under finance lease	$ 8,743
Minimum
Lessee Lease Description [Line Items]
Lease agreement expiration year	2021
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
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Leases [Abstract]
Operating lease cost	$ 1,964	$ 1,870	$ 3,795	$ 3,907
Finance lease cost
Amortization of right-of-use assets	151	247	302	495
Interest on lease liabilities	86	108	173	218
Variable lease cost	324	344	559	723
Total lease cost	$ 2,525	$ 2,569	$ 4,829	$ 5,343

Summary of Balance Sheet Inform

Summary of Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020
Operating leases
Operating lease right-of-use assets	$ 33,407	$ 34,444
Current portion of operating lease liabilities	6,430	6,188
Operating lease liabilities	32,248	32,802
Total operating lease liabilities	38,678	38,990
Finance leases
Finance lease right-of-use assets gross	9,582	19,819
Finance lease right-of-use assets accumulated depreciation	(4,767)	(4,934)
Finance lease assets included in property, plant and equipment, net	$ 4,815	$ 14,885
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, plant and equipment, net	Property, plant and equipment, net
Current portion of finance lease liabilities	$ 582	$ 9,720
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Noncurrent portion of finance lease liabilities	$ 5,611	$ 5,908
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other liabilities	Other liabilities
Total finance lease liabilities	$ 6,193	$ 15,628
Weighted-average remaining lease term (in years)
Operating leases	9 years 2 months 12 days	9 years 3 months 18 days
Finance leases	8 years	3 years 6 months
Weighted-average discount rate
Operating leases	5.39%	5.50%
Finance leases	5.54%	3.00%

Summary of Cash Flow Informatio

Summary of Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020
Cash paid for amounts included in lease liabilities:
Operating cash flows from finance leases	$ 173	$ 218
Operating cash flows from operating leases	3,252	3,993
Financing cash flows from finance leases	9,024	680
Supplemental non-cash information:
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 3,257	$ 2,164

Future Minimum Lease Payments U

Future Minimum Lease Payments Under Operating and Finance Leases (Details) - USD ($) $ in Thousands	Jul. 02, 2021	Dec. 31, 2020
Operating Lease
2021 (remainder of year)	$ 4,163
2022	7,290
2023	5,978
2024	5,184
2025	4,970
Thereafter	23,180
Total minimum lease payments	50,765
Less: Interest	(12,087)
Present value of lease liabilities	38,678	$ 38,990
Finance Lease
2021 (remainder of year)	453
2022	907
2023	930
2024	954
2025	954
Thereafter	3,486
Total minimum lease payments	7,684
Less: Interest	(1,491)
Present value of lease liabilities	$ 6,193	$ 15,628

Preferred and Common Shares a_3

Preferred and Common Shares and Share-based Compensation - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	May 31, 2021	Feb. 28, 2021	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020	May 13, 2021	Dec. 31, 2020	Feb. 29, 2020	Oct. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Preferred shares, Authorized	7,000,000		7,000,000		7,000,000			7,000,000
Preferred shares, voting rights	one vote per share
Preferred shares, Issued			0		0			0
Preferred shares, outstanding			0		0			0
Common stock repurchase program authorized amount									$ 50,000,000	$ 25,000,000
Share-based compensation expense recognized			$ 5,035,000	$ 5,648,000	$ 11,679,000	$ 8,847,000
Requisite service period		5 years
Selling, General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense recognized			$ 3,834,000	$ 3,162,000	$ 8,763,000	5,960,000
Amended and Restated 2010 Incentive Plan | Deferred Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of outstanding shares			91,000		91,000			162,000
Amended and Restated 2010 Incentive Plan | Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fully-vested stock options outstanding			60,000		60,000
Stock options granted					0
Amended and Restated 2010 Incentive Plan | Restricted Stock Units and Deferred Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total fair value of stock units vested					$ 40,300,000
Amended and Restated 2010 Incentive Plan | Restricted Stock Units and Deferred Stock Units | Board of Directors | Selling, General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense recognized					$ 1,100,000	$ 1,000,000
Amended and Restated 2010 Incentive Plan | EPS Performance-based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period					3 years
Amended and Restated 2010 Incentive Plan | TSR Performance-based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period					3 years
Amended and Restated 2010 Incentive Plan | Operating Cash Flow Performance Based Restricted Stock Units
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		100.00%
Amended and Restated 2010 Incentive Plan | Operating Cash Flow Performance Based Restricted Stock Units | Vesting in Four Year
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		4 years
Range of percentage of shares to be issued upon settlement following vesting of target number of shares		50.00%
Amended and Restated 2010 Incentive Plan | Operating Cash Flow Performance Based Restricted Stock Units | Vesting in Five Year
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		5 years
Range of percentage of shares to be issued upon settlement following vesting of target number of shares		50.00%
Amended and Restated 2010 Incentive Plan | Performance Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total fair value of stock units vested					$ 9,300,000
Range of percentage of shares to be issued upon settlement following vesting of target number of shares					160.00%
Maximum number of shares to be earned under these PSU grants			286,000		286,000
Amended and Restated 2010 Incentive Plan | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increases the number of shares authorized for issuance							4,398,613
Amended and Restated 2010 Incentive Plan | Minimum | Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period					0 years
Amended and Restated 2010 Incentive Plan | Minimum | EPS Performance-based Restricted Stock Units
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%
Amended and Restated 2010 Incentive Plan | Minimum | TSR Performance-based Restricted Stock Units
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%
Amended and Restated 2010 Incentive Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increases the number of shares authorized for issuance							6,148,613
Amended and Restated 2010 Incentive Plan | Maximum | Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period					5 years
Amended and Restated 2010 Incentive Plan | Maximum | EPS Performance-based Restricted Stock Units
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%
Amended and Restated 2010 Incentive Plan | Maximum | TSR Performance-based Restricted Stock Units
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%
2018 and 2020 Repurchase Plans
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Available for share repurchases			$ 59,500,000		$ 59,500,000

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
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 5,035	$ 5,648	$ 11,679	$ 8,847
Selling, general and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	3,834	3,162	8,763	5,960
Research and development and engineering
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	515	861	1,242	1,054
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 686	1,388	$ 1,674	1,596
Restructuring, acquisition, and related costs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense		$ 237		$ 237

Restricted Stock Units and Defe

Restricted Stock Units and Deferred Stock Units Issued and Outstanding (Details) - Amended and Restated 2010 Incentive Plan - Restricted Stock Units and Deferred Stock Units shares in Thousands	6 Months Ended
	Jul. 02, 2021$ / sharesshares
Restricted Stock Units
Unvested, Beginning Balance	625
Granted	165
Vested	(286)
Forfeited	(12)
Unvested, Ending Balance	492
Expected to vest at end of period	469
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 58.79
Granted | $ / shares	136.60
Vested | $ / shares	75.12
Forfeited | $ / shares	98.78
Unvested, Ending Balance | $ / shares	$ 74.34

Performance-Based Awards Issued

Performance-Based Awards Issued and Outstanding (Details) - Amended and Restated 2010 Incentive Plan - Performance Stock Units shares in Thousands	6 Months Ended
	Jul. 02, 2021$ / sharesshares
Performance-based Awards
Unvested, Beginning Balance	142
Granted	67
Performance adjustment	28
Vested	(75)
Unvested, Ending Balance	162
Expected to vest at end of period	137
Weighted Average Grant Date Fair Value
Unvested, Beginning Balance | $ / shares	$ 88.99
Granted | $ / shares	150.89
Performance adjustment | $ / shares	67.72
Vested | $ / shares	64.25
Unvested, Ending Balance | $ / shares	$ 122.26

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
	Jul. 02, 2021$ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant-date stock price	$ 138.23
Expected volatility	42.44%
Risk-free interest rate	0.22%
Expected annual dividend yield	0.00%
Fair value	$ 166.64

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Income Taxes [Line Items]
Effective tax rate on income from operations	19.20%	0.30%	3.50%	0.00%
Effective tax rate upon vesting of certain share based compensation awards			14.70%	11.20%
Effective tax rate upon valuation allowance release		11.40%		5.70%
Canada Revenue Agency | CANADA
Income Taxes [Line Items]
Statutory tax rate	29.00%	29.00%	29.00%	29.00%

Schedule of Restructuring, Acqu

Schedule of Restructuring, Acquisition and Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Restructuring Cost And Reserve [Line Items]
Total restructuring charges	$ 1,165	$ 698	$ 2,711	$ 1,353
Acquisition and related charges	3,469	1,545	5,654	2,551
Total restructuring, acquisition, and related costs	4,634	2,243	8,365	3,904
2020 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring charges	$ 1,165		2,503
2019 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring charges		30	$ 208	599
2018 Restructuring
Restructuring Cost And Reserve [Line Items]
Total restructuring charges		$ 668		$ 754

Restructuring, Acquisition, a_3

Restructuring, Acquisition, and Related Costs - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Restructuring, Acquisition, and Related Costs [Line Items]
Total restructuring charges	$ 1,165,000	$ 698,000	$ 2,711,000	$ 1,353,000
Acquisition and related charges	3,469,000	1,545,000	5,654,000	2,551,000
Legal costs	800,000		1,800,000
Finders' Fees, Legal, Valuation And Other Professional Or Consulting Fees
Restructuring, Acquisition, and Related Costs [Line Items]
Acquisition and related charges	1,600,000		1,800,000	100,000
Earn-out Agreement
Restructuring, Acquisition, and Related Costs [Line Items]
Acquisition and related charges	900,000	900,000	$ 1,900,000	1,800,000
Maximum | Finders' Fees, Legal, Valuation And Other Professional Or Consulting Fees
Restructuring, Acquisition, and Related Costs [Line Items]
Acquisition and related charges		100,000
2020 Restructuring
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring and related cost description			As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program is focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program will be focused on cost reduction actions that improve gross margins for the overall company. During the three and six months ended July 2, 2021, the Company recorded $1.2 million and $2.5 million, respectively, in severance and other costs in connection with the 2020 restructuring program. As of July 2, 2021, the Company had incurred cumulative costs related to this restructuring plan totaling $5.2 million. The Company anticipates substantially completing the 2020 restructuring program in the fourth quarter of 2021 and expects to incur additional restructuring charges of $3.0 million to $4.0 million related to the 2020 restructuring program in the next twelve months.
Total restructuring charges	1,165,000		$ 2,503,000
Restructuring cumulative costs incurred	5,200,000		5,200,000
2020 Restructuring | Minimum
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring costs	3,000,000		3,000,000
2020 Restructuring | Maximum
Restructuring, Acquisition, and Related Costs [Line Items]
Restructuring costs	4,000,000		4,000,000
2020 Restructuring | Severance and Related Costs
Restructuring, Acquisition, and Related Costs [Line Items]
Total restructuring charges	1,200,000		$ 2,500,000
2019 Restructuring
Restructuring, Acquisition, and 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 (the “2019 restructuring plan”). During the three months and six months ended July 2, 2021, the Company incurred $0 and $0.2 million, respectively, in severance and related costs in connection with the 2019 restructuring plan. As of July 2, 2021, the Company incurred cumulative costs related to this restructuring plan totaling $9.0 million. The 2019 restructuring program was completed in the first quarter of 2021.
Total restructuring charges		$ 30,000	$ 208,000	$ 599,000
Restructuring cumulative costs incurred	9,000,000		9,000,000
2019 Restructuring | Severance and Related Costs
Restructuring, Acquisition, and Related Costs [Line Items]
Total restructuring charges	$ 0		$ 200,000

Summary of Restructuring Charge

Summary of Restructuring Charges by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Restructuring Cost And Reserve [Line Items]
Restructuring costs	$ 1,165	$ 698	$ 2,711	$ 1,353
2020 Restructuring
Restructuring Cost And Reserve [Line Items]
Restructuring costs	1,165		2,503
2020 Restructuring | Photonics
Restructuring Cost And Reserve [Line Items]
Restructuring costs	195		490
2020 Restructuring | Vision
Restructuring Cost And Reserve [Line Items]
Restructuring costs	275		697
2020 Restructuring | Precision Motion
Restructuring Cost And Reserve [Line Items]
Restructuring costs	$ 695		$ 1,316

Summary of Accrual Activities b

Summary of Accrual Activities by Components Related to Company's Restructuring Charges (Details) $ in Thousands	6 Months Ended
	Jul. 02, 2021USD ($)
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	$ 1,800
Restructuring charges	2,711
Cash payments	(1,502)
Non-cash charges and other adjustments	(359)
Accrued expense ending balance	2,650
Severance
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	1,681
Restructuring charges	1,926
Cash payments	(1,204)
Non-cash charges and other adjustments	1
Accrued expense ending balance	2,404
Facility
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	116
Restructuring charges	602
Cash payments	(140)
Non-cash charges and other adjustments	(360)
Accrued expense ending balance	218
Other Restructuring Charges
Restructuring Cost And Reserve [Line Items]
Accrued expense beginning balance	3
Restructuring charges	183
Cash payments	(158)
Accrued expense ending balance	$ 28

Commitment and Contingencies -

Commitment and Contingencies - Additional Information (Details)	3 Months Ended
	Jul. 02, 2021USD ($)
Commitments And Contingencies Disclosure [Abstract]
Loss contingency, damages payment	$ 0

Segment Information - Additiona

Segment Information - Additional Information (Details)	6 Months Ended
	Jul. 02, 2021SegmentEndMarket
Segment Reporting [Abstract]
Number of reportable segments | Segment	3
Number of primary end market segments | EndMarket	2

Revenue, Gross Profit, Gross Pr

Revenue, Gross Profit, Gross Profit Margin and Operating Income (Loss) by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Segment Reporting Information [Line Items]
Revenue	$ 167,523	$ 144,728	$ 330,107	$ 300,196
Gross Profit	$ 72,406	$ 58,702	$ 141,146	$ 123,147
Gross profit margin percentage	43.20%	40.60%	42.80%	41.00%
Operating Income (Loss)	$ 15,992	$ 13,701	$ 27,091	$ 26,951
Operating Segments | Photonics
Segment Reporting Information [Line Items]
Revenue	62,357	47,803	120,851	102,943
Gross Profit	$ 29,593	$ 20,898	$ 57,702	$ 45,559
Gross profit margin percentage	47.50%	43.70%	47.70%	44.30%
Operating Income (Loss)	$ 14,196	$ 6,937	$ 26,591	$ 15,852
Operating Segments | Vision
Segment Reporting Information [Line Items]
Revenue	63,447	64,740	131,083	133,748
Gross Profit	$ 24,443	$ 24,515	$ 51,369	$ 51,090
Gross profit margin percentage	38.50%	37.90%	39.20%	38.20%
Operating Income (Loss)	$ 3,206	$ 4,665	$ 6,572	$ 10,299
Operating Segments | Precision Motion
Segment Reporting Information [Line Items]
Revenue	41,719	32,185	78,173	63,505
Gross Profit	$ 20,874	$ 13,834	$ 36,951	$ 27,742
Gross profit margin percentage	50.00%	43.00%	47.30%	43.70%
Operating Income (Loss)	$ 12,279	$ 6,515	$ 19,724	$ 13,053
Unallocated Corporate and Shared Services
Segment Reporting Information [Line Items]
Gross Profit	(2,504)	(545)	(4,876)	(1,244)
Operating Income (Loss)	$ (13,689)	$ (4,416)	$ (25,796)	$ (12,253)

Depreciation and Amortization E

Depreciation and Amortization Expenses by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Depreciation and Amortization Expenses
Depreciation and amortization expenses	$ 9,875	$ 9,437	$ 19,724	$ 18,767
Unallocated Corporate and Shared Services
Depreciation and Amortization Expenses
Depreciation and amortization expenses	73	42	142	93
Photonics | Operating Segments
Depreciation and Amortization Expenses
Depreciation and amortization expenses	2,905	2,790	5,803	5,439
Vision | Operating Segments
Depreciation and Amortization Expenses
Depreciation and amortization expenses	5,279	5,272	10,554	10,549
Precision Motion | Operating Segments
Depreciation and Amortization Expenses
Depreciation and amortization expenses	$ 1,618	$ 1,333	$ 3,225	$ 2,686

Schedule of Geographic Revenue

Schedule of Geographic Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Segment Reporting Information [Line Items]
Revenue	$ 167,523	$ 144,728	$ 330,107	$ 300,196
United States
Segment Reporting Information [Line Items]
Revenue	59,497	54,524	118,727	113,729
Germany
Segment Reporting Information [Line Items]
Revenue	23,773	22,148	46,135	45,381
Rest of Europe
Segment Reporting Information [Line Items]
Revenue	35,600	30,713	71,175	63,798
China
Segment Reporting Information [Line Items]
Revenue	23,506	17,472	46,057	32,876
Rest of Asia-Pacific
Segment Reporting Information [Line Items]
Revenue	22,762	17,842	43,509	39,542
Other Countries
Segment Reporting Information [Line Items]
Revenue	$ 2,385	$ 2,029	$ 4,504	$ 4,870

Schedule of Revenue by End Mark

Schedule of Revenue by End Market (Details)	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
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	48.00%	45.00%	47.00%	43.00%
Medical
Segment Reporting Information [Line Items]
Total revenue by end market	52.00%	55.00%	53.00%	57.00%

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Subsequent Events - USD ($) $ in Millions	Jul. 18, 2021	Jul. 09, 2021
Schneider Electric Motion (“SEM”) USA, Inc.
Subsequent Event [Line Items]
Business acquisition, date of acquisition		Jul. 9, 2021
Cash consideration		$ 115
ATI Industrial Automation Inc.
Subsequent Event [Line Items]
Business acquisition, date of acquisition	Jul. 18, 2021
Business combination, initial purchase price	$ 172