Entegris (ENTG) 10-Q 28 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 02, 2016	Apr. 25, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 2, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	ENTG
Entity Registrant Name	ENTEGRIS INC
Entity Central Index Key	1,101,302
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		140,829,976

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 02, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 344,403	$ 349,825
Short-term investments	1,140	2,181
Trade accounts and notes receivable, net of allowance for doubtful accounts of $1,659 and $1,318	149,824	141,409
Inventories	184,030	173,176
Deferred tax charges and refundable income taxes	18,762	18,943
Other current assets	21,622	23,253
Total current assets	719,781	708,787
Property, plant and equipment, net of accumulated depreciation of $355,805 and $341,840	322,729	321,301
Other assets:
Goodwill	343,286	342,111
Intangible assets, net of accumulated amortization of $205,173 and $193,884	251,803	258,942
Deferred tax assets and other noncurrent tax assets	8,241	7,771
Other	7,990	7,785
Total assets	1,653,830	1,646,697
Current liabilities:
Long-term debt, current maturities	50,000	50,000
Accounts payable	47,550	36,916
Accrued payroll and related benefits	22,068	41,891
Other accrued liabilities	30,460	33,968
Income taxes payable	11,625	12,775
Total current liabilities	161,703	175,550
Long-term debt, excluding current maturities, net of unamortized discount and debt issuance costs of $12,220 and $12,807	606,630	606,044
Pension benefit obligations and other liabilities	25,633	24,608
Deferred tax liabilities and other noncurrent tax liabilities	38,110	37,612
Commitments and contingent liabilities	0	0
Equity:
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued and outstanding as of April 2, 2015 and December 31, 2015	0	0
Common stock, par value $.01; 400,000,000 shares authorized; issued and outstanding shares as of April 2, 2015 and December 31, 2015: 140,829,976 and 140,716,420	1,408	1,407
Additional paid-in capital	847,739	848,667
Retained earnings (accumulated loss)	13,993	(416)
Accumulated other comprehensive loss	(41,386)	(46,775)
Total equity	821,754	802,883
Total liabilities and equity	$ 1,653,830	$ 1,646,697

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Apr. 02, 2016	Dec. 31, 2015
Trade accounts and notes receivable, allowance for doubtful accounts	$ 1,659,000	$ 1,318,000
Property, plant and equipment, accumulated depreciation	355,805,000	341,840,000
Intangible assets, Accumulated amortization	205,173,000	193,884,000
unamortized discount and debt issuance costs	$ 12,220,000	$ 12,807,000
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	140,829,976	140,716,420
Common stock, shares outstanding	140,829,976	140,716,420

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2016	Mar. 28, 2015
Net sales	$ 267,024	$ 263,373
Cost of sales	152,318	146,837
Gross profit	114,706	116,536
Selling, general and administrative expenses	47,956	50,890
Engineering, research and development expenses	25,902	25,800
Amortization of intangible assets	11,289	12,307
Operating income	29,559	27,539
Interest expense	9,218	9,841
Interest income	(69)	(213)
Other income, net	(675)	(1,733)
Income before income tax expense and equity in net loss of affiliates	21,085	19,644
Income tax expense	4,873	4,670
Equity in net loss of affiliates	0	102
Net income	$ 16,212	$ 14,872
Basic net income per common share	$ 0.12	$ 0.11
Diluted net income per common share	$ 0.11	$ 0.11
Weighted shares outstanding:
Basic	140,780	139,984
Diluted	141,371	140,740

Condensed Consolidated Stateme5

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Mar. 28, 2015
Net income	$ 16,212	$ 14,872
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	5,600	(9,675)
Available for sale securities, unrealized loss	(226)	0
Pension liability adjustments	16	17
Other comprehensive income (loss)	5,390	(9,658)
Comprehensive income	$ 21,602	$ 5,214

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Mar. 28, 2015
Operating activities:
Net income	$ 16,212	$ 14,872
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	13,700	13,319
Amortization	11,289	12,307
Share-based compensation expense	2,861	2,258
Provision for deferred income taxes	(211)	(2,833)
Other	4,796	2,908
Changes in operating assets and liabilities:
Trade accounts and notes receivable	(6,799)	(32,246)
Inventories	(12,998)	(7,512)
Accounts payable and accrued liabilities	(9,510)	(5,962)
Other current assets	1,796	3,100
Income taxes payable and refundable income taxes	(726)	3,241
Other	(3,071)	(3,584)
Net cash provided by (used in) operating activities	17,339	(132)
Investing activities:
Acquisition of property, plant and equipment	(17,819)	(20,488)
Proceeds from sale and maturities of short-term investments	932	741
Other	(3,427)	319
Net cash used in investing activities	(20,314)	(19,428)
Financing activities:
Payments of long-term debt	0	(25,000)
Issuance of common stock	0	520
Repurchase and retirement of common stock	(3,573)	0
Taxes paid related to net share settlement of equity awards	(2,067)	(2,053)
Other	49	135
Net cash used in financing activities	(5,591)	(26,398)
Effect of exchange rate changes on cash and cash equivalents	3,144	(2,354)
Decrease in cash and cash equivalents	(5,422)	(48,312)
Cash and cash equivalents at beginning of period	349,825	389,699
Cash and cash equivalents at end of period	$ 344,403	$ 341,387

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Apr. 02, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Entegris, Inc. (Entegris or the Company) is a leading provider of yield-enhancing materials and solutions for advanced manufacturing processes in the semiconductor and other high-technology industries. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. Intercompany profits, transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, particularly receivables, inventories, property, plant and equipment, goodwill, intangibles, accrued expenses, and income taxes and related accounts, and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and contain all adjustments considered necessary, and are of a normal recurring nature, to present fairly the financial position as of April 2, 2016 and December 31, 2015 , the results of operations and comprehensive income for the three months ended April 2, 2016 and March 28, 2015 , and cash flows for the three months ended April 2, 2016 and March 28, 2015 . The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain certain information included in the Company’s annual consolidated financial statements and notes. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2015 . The results of operations for the three months ended April 2, 2016 are not necessarily indicative of the results to be expected for the full year. Fair Value of Financial Instruments The carrying value of cash equivalents, accounts receivable, accounts payable, accrued payroll and related benefits, and other accrued liabilities approximates fair value due to the short maturity of those items. The fair value of long-term debt, including current maturities, based upon models utilizing market observable (Level 2) inputs and credit risk, was $663.2 million at April 2, 2016 compared to the carrying amount of long-term debt, including current maturities, of $656.6 million . Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU No. 2014-09 is effective beginning January 1, 2018. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and disclosures. The Company has not yet selected a transition approach. On April 7, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs which requires an entity to present debt issuance costs as a direct deduction from the carrying amount of the related debt liability on the balance sheet. The update represents a change in accounting principle and required retrospective application. The update became effective January 1, 2016. Based on the balances as of December 31, 2015, the Company reclassified $11.2 million of unamortized debt issuance costs from other current assets and other noncurrent assets to long-term debt per the adoption of ASU No. 2015-03. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases, and amortization and interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and disclosures, and the timing of adoption. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The Company is currently assessing the impact that adopting this accounting standard will have on its consolidated financial statements and disclosures, and the timing of adoption.

Inventories

Inventories	3 Months Ended
	Apr. 02, 2016
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories consist of the following: (In thousands) April 2, 2016 December 31, 2015 Raw materials $ 54,634 $ 51,063 Work-in process 16,061 11,644 Finished goods 113,335 110,469 Total inventories $ 184,030 $ 173,176

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Apr. 02, 2016
Intangible Assets	GOODWILL AND INTANGIBLE ASSETS Goodwill activity for each period was as follows: (In thousands) CMH EM Total December 31, 2015 $ 47,411 $ 294,700 $ 342,111 Foreign currency translation — 1,175 1,175 April 2, 2016 $ 47,411 $ 295,875 $ 343,286 Identifiable intangible assets at April 2, 2016 and December 31, 2015 consist of the following: April 2, 2016 (In thousands) Gross carrying Amount Accumulated amortization Net carrying value Developed technology $ 200,720 $ 108,708 $ 92,012 Trademarks and trade names 127,191 32,509 94,682 Customer relationships 108,798 56,421 52,377 Other 20,267 7,535 12,732 $ 456,976 $ 205,173 $ 251,803 December 31, 2015 (In thousands) Gross carrying amount Accumulated amortization Net carrying value Developed technology $ 200,692 $ 102,883 $ 97,809 Trademarks and trade names 17,085 10,905 6,180 Customer relationships 218,283 72,948 145,335 Other 16,766 7,148 9,618 $ 452,826 $ 193,884 $ 258,942 Future amortization expense for each of the five succeeding years and thereafter relating to intangible assets currently recorded in the Company's consolidated balance sheets is estimated to be the following at April 2, 2016: Fiscal year ending December 31 (In thousands) 2016 $ 33,390 2017 43,936 2018 40,805 2019 38,565 2020 23,790 Thereafter 71,317 $ 251,803

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Apr. 02, 2016
Earnings Per Share [Abstract]
Earnings (Loss) Per Common Share	EARNINGS PER COMMON SHARE The following table presents a reconciliation of the denominators used in the computation of basic and diluted earnings per common share (EPS): Three months ended (In thousands) April 2, 2016 March 28, 2015 Basic—weighted common shares outstanding 140,780 139,984 Weighted common shares assumed upon exercise of stock options and vesting of restricted common stock 591 756 Diluted—weighted common shares and common shares equivalent outstanding 141,371 140,740 The Company excluded the following shares underlying stock-based awards from the calculations of diluted EPS because their inclusion would have been anti-dilutive for the three months ended April 2, 2016 and March 28, 2015 : Three months ended (In thousands) April 2, 2016 March 28, 2015 Shares excluded from calculations of diluted EPS 1,305 1,416

Fair Value

Fair Value	3 Months Ended
	Apr. 02, 2016
Fair Value Disclosures [Abstract]
Fair Value	FAIR VALUE Financial Assets Measured at Fair Value on a Recurring Basis The following table presents the Company’s financial assets that are measured at fair value on a recurring basis at April 2, 2016 and December 31, 2015 . Level 1 inputs are based on quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2 inputs are based on quoted prices for similar instruments in active markets and quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in a market. Level 3 inputs are based on prices or valuations that require inputs that are significant to the valuation and are unobservable. April 2, 2016 December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Short-term investments Common stock $ 1,140 $ — $ — $ 1,140 $ 2,181 $ — $ — $ 2,181 Other current assets Foreign currency contracts (a) $ — $ — $ — $ — $ — $ 2,463 $ — $ 2,463 Total assets measured and recorded at fair value $ 1,140 $ — $ — $ 1,140 $ 2,181 $ 2,463 $ — $ 4,644 Liabilities: Other accrued liabilities Foreign currency contracts (a) $ — $ 2,650 $ — $ 2,650 $ — $ — $ — $ — Total liabilities measured and recorded at fair value $ — $ 2,650 $ — $ 2,650 $ — $ — $ — $ — (a) Based on observable market transactions of spot currency rates and forward currency rates on equivalently-termed instruments. A reconciliation of the net fair value of foreign currency contract assets and liabilities subject to master netting arrangements that are recorded in the April 2, 2016 and December 31, 2015 condensed consolidated balance sheets to the net fair value that could have been reported in the respective condensed consolidated balance sheets is as follows: April 2, 2016 December 31, 2015 (In thousands) Gross Gross Net amount of Gross amounts of recognized assets Gross amounts offset in the condensed consolidated balance sheet Net amount of assets in the condensed consolidated balance sheet Foreign currency contracts $ 2,650 $ — $ 2,650 $ 2,958 $ 495 $ 2,463 Losses associated with derivatives are recorded in other income, net, in the condensed consolidated statements of operations. Losses associated with derivative instruments not designated as hedging instruments were as follows: Three months ended (In thousands) April 2, 2016 March 28, 2015 Losses on foreign currency contracts $ (2,650 ) $ (2,713 ) In the first quarter of 2015, the Company recorded an other-than-temporary impairment loss of $0.5 million related to an available-for-sale common stock investment classified in short-term investments in its condensed consolidated balance sheet. The Company determined that it was an other-than-temporary impairment due to the significant decline in the fair value compared to the investment's carrying value for an extended period of time and the financial condition of the issuer.

Segment Reporting

Segment Reporting	3 Months Ended
	Apr. 02, 2016
Segment Reporting [Abstract]
Segment Reporting	SEGMENT REPORTING The Company reports its financial performance based on two reportable segments: Critical Materials Handling (CMH) and Electronic Materials (EM). The manager of CMH and EM is accountable for results at the segment profit level and reports directly to the Company’s Chief Executive Officer, who is responsible for evaluating companywide performance and resource allocation decisions between the product groups. The Company's two reportable segments are business divisions that provide unique products and services. • CMH : provides a broad range of products that filter, handle, dispense, and protect critical materials used in the semiconductor manufacturing process and in other high-technology manufacturing. CMH’s products and subsystems include high-purity materials packaging, fluid handling and dispensing systems and liquid filters as well as microenvironment products that protect critical substrates such as wafers during shipping and manufacturing. CMH also provides specialized graphite components and specialty coatings for high-temperature applications. • EM : provides high-performance materials, materials packaging and materials delivery systems that enable high yield, cost effective semiconductor manufacturing. EM’s products consist of specialized chemistries and performance materials, gas microcontamination control systems and components, and sub-atmospheric pressure gas delivery systems for the safe and efficient handling of hazardous gases to semiconductor process equipment. Inter-segment sales are not significant. Segment profit is defined as net sales less direct segment operating expenses, excluding certain unallocated expenses, consisting mainly of general and administrative costs for the Company’s human resources, finance and information technology functions as well as interest expense, and amortization of intangible assets. Summarized financial information for the Company’s reportable segments is shown in the following tables. Three months ended (In thousands) April 2, 2016 March 28, 2015 Net sales CMH $ 166,229 $ 167,468 EM 100,795 95,905 Total net sales $ 267,024 $ 263,373 Three months ended (In thousands) April 2, 2016 March 28, 2015 Segment profit CMH $ 37,892 $ 41,341 EM 21,575 20,222 Total segment profit $ 59,467 $ 61,563 The following table reconciles total segment profit to income before income taxes and equity in net loss of affiliates: Three months ended (In thousands) April 2, 2016 March 28, 2015 Total segment profit $ 59,467 $ 61,563 Less: Amortization of intangible assets 11,289 12,307 Unallocated general and administrative expenses 18,619 21,717 Operating income 29,559 27,539 Interest expense 9,218 9,841 Interest income (69 ) (213 ) Other income, net (675 ) (1,733 ) Income before income tax expense and equity in net loss of affiliates $ 21,085 $ 19,644

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 02, 2016
Nature of Operations	Nature of Operations Entegris, Inc. (Entegris or the Company) is a leading provider of yield-enhancing materials and solutions for advanced manufacturing processes in the semiconductor and other high-technology industries.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. Intercompany profits, transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, particularly receivables, inventories, property, plant and equipment, goodwill, intangibles, accrued expenses, and income taxes and related accounts, and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and contain all adjustments considered necessary, and are of a normal recurring nature, to present fairly the financial position as of April 2, 2016 and December 31, 2015 , the results of operations and comprehensive income for the three months ended April 2, 2016 and March 28, 2015 , and cash flows for the three months ended April 2, 2016 and March 28, 2015 . The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain certain information included in the Company’s annual consolidated financial statements and notes. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2015 . The results of operations for the three months ended April 2, 2016 are not necessarily indicative of the results to be expected for the full year.
Fair Value Measurement, Policy	Fair Value of Financial Instruments The carrying value of cash equivalents, accounts receivable, accounts payable, accrued payroll and related benefits, and other accrued liabilities approximates fair value due to the short maturity of those items. The fair value of long-term debt, including current maturities, based upon models utilizing market observable (Level 2) inputs and credit risk, was $663.2 million at April 2, 2016 compared to the carrying amount of long-term debt, including current maturities, of $656.6 million .
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU No. 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU No. 2014-09 is effective beginning January 1, 2018. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and disclosures. The Company has not yet selected a transition approach. On April 7, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs which requires an entity to present debt issuance costs as a direct deduction from the carrying amount of the related debt liability on the balance sheet. The update represents a change in accounting principle and required retrospective application. The update became effective January 1, 2016. Based on the balances as of December 31, 2015, the Company reclassified $11.2 million of unamortized debt issuance costs from other current assets and other noncurrent assets to long-term debt per the adoption of ASU No. 2015-03. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases, and amortization and interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and disclosures, and the timing of adoption. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The Company is currently assessing the impact that adopting this accounting standard will have on its consolidated financial statements and disclosures, and the timing of adoption.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 02, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories consist of the following: (In thousands) April 2, 2016 December 31, 2015 Raw materials $ 54,634 $ 51,063 Work-in process 16,061 11,644 Finished goods 113,335 110,469 Total inventories $ 184,030 $ 173,176

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Apr. 02, 2016
Schedule of Goodwill	Goodwill activity for each period was as follows: (In thousands) CMH EM Total December 31, 2015 $ 47,411 $ 294,700 $ 342,111 Foreign currency translation — 1,175 1,175 April 2, 2016 $ 47,411 $ 295,875 $ 343,286
Schedule of Acquired Finite-Lived Intangible Assets by Major Class	Identifiable intangible assets at April 2, 2016 and December 31, 2015 consist of the following: April 2, 2016 (In thousands) Gross carrying Amount Accumulated amortization Net carrying value Developed technology $ 200,720 $ 108,708 $ 92,012 Trademarks and trade names 127,191 32,509 94,682 Customer relationships 108,798 56,421 52,377 Other 20,267 7,535 12,732 $ 456,976 $ 205,173 $ 251,803 December 31, 2015 (In thousands) Gross carrying amount Accumulated amortization Net carrying value Developed technology $ 200,692 $ 102,883 $ 97,809 Trademarks and trade names 17,085 10,905 6,180 Customer relationships 218,283 72,948 145,335 Other 16,766 7,148 9,618 $ 452,826 $ 193,884 $ 258,942
Estimated Future Amortization Expense	amortization expense for each of the five succeeding years and thereafter relating to intangible assets currently recorded in the Company's consolidated balance sheets is estimated to be the following at April 2, 2016: Fiscal year ending December 31 (In thousands) 2016 $ 33,390 2017 43,936 2018 40,805 2019 38,565 2020 23,790 Thereafter 71,317 $ 251,803

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Apr. 02, 2016
Reconcilation of Share Amount Used in Computaion of Basic and Diluted Earnings Per Share (EPS)	The following table presents a reconciliation of the denominators used in the computation of basic and diluted earnings per common share (EPS): Three months ended (In thousands) April 2, 2016 March 28, 2015 Basic—weighted common shares outstanding 140,780 139,984 Weighted common shares assumed upon exercise of stock options and vesting of restricted common stock 591 756 Diluted—weighted common shares and common shares equivalent outstanding 141,371 140,740
Shares Excluded Underlying Stock Based Awards from Calculations of Diluted EPS	The Company excluded the following shares underlying stock-based awards from the calculations of diluted EPS because their inclusion would have been anti-dilutive for the three months ended April 2, 2016 and March 28, 2015 : Three months ended (In thousands) April 2, 2016 March 28, 2015 Shares excluded from calculations of diluted EPS 1,305 1,416

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Apr. 02, 2016
Financial Assets Measured At Fair Value On Recurring Basis	The following table presents the Company’s financial assets that are measured at fair value on a recurring basis at April 2, 2016 and December 31, 2015 . Level 1 inputs are based on quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2 inputs are based on quoted prices for similar instruments in active markets and quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in a market. Level 3 inputs are based on prices or valuations that require inputs that are significant to the valuation and are unobservable. April 2, 2016 December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Short-term investments Common stock $ 1,140 $ — $ — $ 1,140 $ 2,181 $ — $ — $ 2,181 Other current assets Foreign currency contracts (a) $ — $ — $ — $ — $ — $ 2,463 $ — $ 2,463 Total assets measured and recorded at fair value $ 1,140 $ — $ — $ 1,140 $ 2,181 $ 2,463 $ — $ 4,644 Liabilities: Other accrued liabilities Foreign currency contracts (a) $ — $ 2,650 $ — $ 2,650 $ — $ — $ — $ — Total liabilities measured and recorded at fair value $ — $ 2,650 $ — $ 2,650 $ — $ — $ — $ — (a) Based on observable market transactions of spot currency rates and forward currency rates on equivalently-termed instruments.
Information about Derivative Positions	A reconciliation of the net fair value of foreign currency contract assets and liabilities subject to master netting arrangements that are recorded in the April 2, 2016 and December 31, 2015 condensed consolidated balance sheets to the net fair value that could have been reported in the respective condensed consolidated balance sheets is as follows: April 2, 2016 December 31, 2015 (In thousands) Gross Gross Net amount of Gross amounts of recognized assets Gross amounts offset in the condensed consolidated balance sheet Net amount of assets in the condensed consolidated balance sheet Foreign currency contracts $ 2,650 $ — $ 2,650 $ 2,958 $ 495 $ 2,463
Gains and (losses) associated with derivatives	Losses associated with derivatives are recorded in other income, net, in the condensed consolidated statements of operations. Losses associated with derivative instruments not designated as hedging instruments were as follows: Three months ended (In thousands) April 2, 2016 March 28, 2015 Losses on foreign currency contracts $ (2,650 ) $ (2,713 )

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Apr. 02, 2016
Summary of Financial Information for Reportable Segments	Summarized financial information for the Company’s reportable segments is shown in the following tables. Three months ended (In thousands) April 2, 2016 March 28, 2015 Net sales CMH $ 166,229 $ 167,468 EM 100,795 95,905 Total net sales $ 267,024 $ 263,373 Three months ended (In thousands) April 2, 2016 March 28, 2015 Segment profit CMH $ 37,892 $ 41,341 EM 21,575 20,222 Total segment profit $ 59,467 $ 61,563
Reconciliation of Total Segment Profit to Operating Income	The following table reconciles total segment profit to income before income taxes and equity in net loss of affiliates: Three months ended (In thousands) April 2, 2016 March 28, 2015 Total segment profit $ 59,467 $ 61,563 Less: Amortization of intangible assets 11,289 12,307 Unallocated general and administrative expenses 18,619 21,717 Operating income 29,559 27,539 Interest expense 9,218 9,841 Interest income (69 ) (213 ) Other income, net (675 ) (1,733 ) Income before income tax expense and equity in net loss of affiliates $ 21,085 $ 19,644

Summary of Significant Accoun19

Summary of Significant Accounting Policies Additional details (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Long-term Debt, Fair Value	$ 663,202
Long-term Debt	$ 656,630
Unamortized Debt Issuance Costs		$ 11,243

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Thousands	Apr. 02, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 54,634	$ 51,063
Work-in process	16,061	11,644
Finished goods	113,335	110,469
Total inventories	$ 184,030	$ 173,176

Goodwill Rollforward (Details)

Goodwill Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Dec. 31, 2015
Goodwill [Line Items]
Goodwill	$ 343,286	$ 342,111
Other, including foreign currency translation	1,175
CMH
Goodwill [Line Items]
Goodwill	47,411	47,411
Other, including foreign currency translation	0
EM
Goodwill [Line Items]
Goodwill	295,875	$ 294,700
Other, including foreign currency translation	$ 1,175

Intangible Assets (Detail)

Intangible Assets (Detail) - USD ($) $ in Thousands	Apr. 02, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets
Gross carrying Amount	$ 456,976	$ 452,826
Accumulated amortization	205,173	193,884
Net carrying value	251,803	258,942
Developed Technology
Finite-Lived Intangible Assets
Gross carrying Amount	200,720	200,692
Accumulated amortization	108,708	102,883
Net carrying value	92,012	97,809
Trademarks and Trade names
Finite-Lived Intangible Assets
Gross carrying Amount	127,191	17,085
Accumulated amortization	32,509	10,905
Net carrying value	94,682	6,180
Customer Relationships
Finite-Lived Intangible Assets
Gross carrying Amount	108,798	218,283
Accumulated amortization	56,421	72,948
Net carrying value	52,377	145,335
Other
Finite-Lived Intangible Assets
Gross carrying Amount	20,267	16,766
Accumulated amortization	7,535	7,148
Net carrying value	$ 12,732	$ 9,618

Goodwill and Intangible Asset23

Goodwill and Intangible Assets Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands	Apr. 02, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets
2,016	$ 33,390
2,017	43,936
2,018	40,805
2,019	38,565
2,020	23,790
Thereafter	71,317
Intangible assets, net	$ 251,803	$ 258,942

Reconciliation of Share Amount

Reconciliation of Share Amount Used in Computation of Basic and Diluted Earnings Per Share (EPS) (Detail) - shares shares in Thousands	3 Months Ended
	Apr. 02, 2016	Mar. 28, 2015
Weighted shares outstanding:
Basic-weighted common shares outstanding	140,780	139,984
Weighted common shares assumed upon exercise of stock options and vesting of restricted common stock	591	756
Diluted-weighted common shares and common shares equivalent outstanding	141,371	140,740

Shares Excluded Underlying Stoc

Shares Excluded Underlying Stock Based Award from Calucations of Diluted EPS (Detail) - shares shares in Thousands	3 Months Ended
	Apr. 02, 2016	Mar. 28, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculations of diluted EPS	1,305	1,416

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts, asset		$ 2,463
Total assets measured and recorded at fair value	$ 1,140	4,644
Foreign currency contracts, liabilities	2,650
Total liabilities measured and recorded at fair value	2,650	0
Short-term Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock	1,140	2,181
Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts, asset	0	2,463
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	1,140	2,181
Total liabilities measured and recorded at fair value	0	0
Fair Value, Inputs, Level 1 | Short-term Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock	1,140	2,181
Fair Value, Inputs, Level 1 | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts, asset	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	0	2,463
Total liabilities measured and recorded at fair value	2,650	0
Fair Value, Inputs, Level 2 | Short-term Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock	0	0
Fair Value, Inputs, Level 2 | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts, asset	0	2,463
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	0	0
Total liabilities measured and recorded at fair value	0	0
Fair Value, Inputs, Level 3 | Short-term Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock	0	0
Fair Value, Inputs, Level 3 | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts, asset	0	0
Other Accrued Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts, liabilities	2,650	0
Other Accrued Liabilities [Member] | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts, liabilities	0	0
Other Accrued Liabilities [Member] | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts, liabilities	2,650	0
Other Accrued Liabilities [Member] | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency contracts, liabilities	$ 0	$ 0

Information about Derivative Po

Information about Derivative Positions (Detail) - USD ($) $ in Thousands	Apr. 02, 2016	Dec. 31, 2015
Derivative [Line Items]
Gross amounts of recognized liabilities	$ 2,650	$ 495
Gross amounts of recognized assets	0	2,958
Net amount of liabilities	$ 2,650
Net amount of assets		$ 2,463

Fair Value Losses associated wi

Fair Value Losses associated with derivatives (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Mar. 28, 2015
Fair Value Disclosures [Abstract]
Losses on forward currency contracts	$ (2,650)	$ (2,713)

Fair Value Additional Detail (D

Fair Value Additional Detail (Details) $ in Millions	3 Months Ended
	Mar. 28, 2015USD ($)
Fair Value Disclosures [Abstract]
Other than Temporary Impairment Losses, Investments	$ 0.5

Summary of Financial Informatio

Summary of Financial Information for Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Mar. 28, 2015
Segment Reporting Information [Line Items]
Total net sales	$ 267,024	$ 263,373
Total Segment Profit	59,467	61,563
CMH
Segment Reporting Information [Line Items]
Total net sales	166,229	167,468
Total Segment Profit	37,892	41,341
EM
Segment Reporting Information [Line Items]
Total net sales	100,795	95,905
Total Segment Profit	$ 21,575	$ 20,222

Reconciliation of Total Segment

Reconciliation of Total Segment Profit to Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Mar. 28, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total Segment Profit	$ 59,467	$ 61,563
Amortization	11,289	12,307
Unallocated General And Administrative Expenses	18,619	21,717
Operating income	29,559	27,539
Interest expense	9,218	9,841
Interest income	(69)	(213)
Other income, net	(675)	(1,733)
Income before income tax expense and equity in net loss of affiliates	$ 21,085	$ 19,644