Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2013 | Feb. 28, 2014 | Jun. 28, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'NEWPORT CORP | ' | ' |
Entity Central Index Key | '0000225263 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $533.30 |
Entity Common Stock, Shares Outstanding | ' | 39,568,563 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Consolidated Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' |
Net sales | $560,054 | $595,346 | $545,054 |
Cost of sales | 322,341 | 334,758 | 305,325 |
Gross profit | 237,713 | 260,588 | 239,729 |
Selling, general and administrative expenses | 149,183 | 159,347 | 140,636 |
Research and development expense | 52,524 | 52,714 | 45,270 |
Loss (gain) on sale of assets and related costs | 4,725 | -166 | ' |
Impairment charge | ' | 130,853 | ' |
Operating income (loss) | 31,281 | -82,160 | 53,823 |
Recovery of note receivable and other amounts related to previously discontinued operations, net | ' | ' | 619 |
Foreign currency translation gain from dissolution of subsidiary | ' | ' | 7,198 |
Gain on sale of investments | ' | 6,248 | ' |
Loss on extinguishment of debt | -3,355 | ' | -582 |
Interest and other expense, net | -6,490 | -8,559 | -10,550 |
Income (loss) before income taxes | 21,436 | -84,471 | 50,508 |
Income tax provision (benefit) | 5,698 | 5,479 | -29,154 |
Net income (loss) | 15,738 | -89,950 | 79,662 |
Net income (loss) attributable to non-controlling interests | 137 | -527 | -46 |
Net income (loss) attributable to Newport Corporation | 15,601 | -89,423 | 79,708 |
Net income (loss) | 15,738 | -89,950 | 79,662 |
Other comprehensive income (loss) | ' | ' | ' |
Foreign currency translation gains (losses) | 2,159 | 1,169 | -10,222 |
Unrecognized net pension gains (losses), net of tax | 849 | -2,243 | 551 |
Unrealized gains (losses) on marketable securities, net of tax | 208 | 48 | -365 |
Comprehensive income (loss) | 18,954 | -90,976 | 69,626 |
Comprehensive income (loss) attributable to non-controlling interests | 23 | -593 | -57 |
Comprehensive income (loss) attributable to Newport Corporation | 18,931 | -90,383 | 69,683 |
Comprehensive income (loss) | $18,954 | ($90,976) | $69,626 |
Net income (loss) per share attributable to Newport Corporation: | ' | ' | ' |
Basic (in dollars per share) | $0.40 | ($2.35) | $2.13 |
Diluted (in dollars per share) | $0.39 | ($2.35) | $2.06 |
Shares used in the computation of net income (loss) per share: | ' | ' | ' |
Basic (in shares) | 39,010 | 38,133 | 37,407 |
Diluted (in shares) | 39,558 | 38,133 | 38,673 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $53,710 | $88,767 |
Restricted cash | 2,305 | 3,107 |
Marketable securities | 8,219 | 8,498 |
Accounts receivable, net of allowance for doubtful accounts of $1,441 and $1,548 as of December 28, 2013 and December 29, 2012, respectively | 96,388 | 89,445 |
Inventories | 103,383 | 108,728 |
Deferred income taxes , net | 22,437 | 19,872 |
Prepaid expenses and other current assets | 14,769 | 19,263 |
Total current assets | 301,211 | 337,680 |
Property and equipment, net | 80,516 | 82,843 |
Goodwill | 78,801 | 79,586 |
Deferred income taxes, net | 4,474 | 5,646 |
Intangible assets, net | 67,342 | 77,446 |
Investments and other assets | 32,885 | 37,760 |
Total assets | 565,229 | 620,961 |
Current liabilities: | ' | ' |
Short-term borrowings | 4,861 | 32,985 |
Accounts payable | 31,714 | 31,061 |
Accrued payroll and related expenses | 31,015 | 29,096 |
Accrued expenses and other current liabilities | 35,341 | 34,696 |
Total current liabilities | 102,931 | 127,838 |
Long-term debt | 83,646 | 150,758 |
Pension liabilities | 27,093 | 27,764 |
Deferred income taxes and other liabilities | 23,182 | 23,783 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, par value $0.1167 per share, 200,000,000 shares authorized; 39,394,196 and 38,402,291 shares issued and outstanding as of December 28, 2013 and December 29, 2012, respectively | 4,598 | 4,481 |
Capital in excess of par value | 459,562 | 441,074 |
Accumulated other comprehensive loss | -3,619 | -6,949 |
Accumulated deficit | -133,573 | -149,174 |
Total stockholders' equity of Newport Corporation | 326,968 | 289,432 |
Non-controlling interests | 1,409 | 1,386 |
Total stockholders' equity | 328,377 | 290,818 |
Total Liabilities and Stockholders' equity | $565,229 | $620,961 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $1,441 | $1,548 |
Common stock, par value (in dollars per share) | $0.12 | $0.12 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 39,394,196 | 38,402,291 |
Common stock, shares outstanding | 39,394,196 | 38,402,291 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income (loss) | $15,738 | ($89,950) | $79,662 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 30,478 | 39,632 | 23,999 |
Amortization of discount on convertible subordinated notes included in interest expense | ' | 12 | 3,891 |
Commitment fee on bridge loan | ' | ' | 500 |
Recovery of amounts related to previously discontinued operations | ' | ' | -619 |
Foreign currency translation gain | ' | ' | -7,198 |
Impairment charge | ' | 130,853 | ' |
Excess tax benefits from stock-based compensation | -3,972 | -655 | ' |
Deferred income taxes, net | -4,204 | 353 | -29,895 |
Provision for losses on inventories | 7,160 | 5,499 | 3,953 |
Stock-based compensation expense | 9,173 | 8,369 | 6,201 |
Provision for doubtful accounts, net | 404 | 390 | 358 |
Loss (gain) on sale of assets | 4,725 | -6,414 | ' |
Loss on disposal of property and equipment | 535 | 470 | 1,011 |
Loss on extinguishment of debt | 3,355 | ' | 582 |
Increase (decrease) in cash due to change, net of acquisitions and divestitures: | ' | ' | ' |
Accounts receivable | -9,155 | 8,727 | 6,175 |
Inventories | -1,502 | -1,850 | 635 |
Prepaid expenses and other assets | 3,346 | -1,863 | 2,386 |
Accounts payable | 321 | 4 | -10,805 |
Accrued payroll and related expenses | 1,208 | -8,208 | -2,755 |
Accrued expenses and other liabilities | 6,240 | -3,920 | -2,790 |
Net cash provided by operating activities | 63,850 | 81,449 | 75,291 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchase of property and equipment | -16,319 | -11,529 | -13,513 |
Restricted cash | 843 | 9,286 | -12,367 |
Proceeds from sale of assets | ' | 6,373 | ' |
Recovery of amounts related to previously discontinued operations | ' | ' | 619 |
Purchase of marketable securities | -5,264 | -6,694 | -102,125 |
Proceeds from the sale and maturity of marketable securities | 6,068 | 3,039 | 206,802 |
Acquisition of businesses, net of cash acquired | ' | -11,439 | -233,696 |
Net cash used in investing activities | -14,672 | -10,964 | -154,280 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from long-term debt | 120,000 | ' | 187,934 |
Debt issuance costs | -1,484 | ' | -6,658 |
Repayment of long-term debt | -210,356 | -20,148 | -5,409 |
Proceeds from short term borrowings | 5,121 | 6,197 | 24,078 |
Repayment of short term borrowings | -8,733 | -24,686 | -155,459 |
Proceeds from the issuance of common stock under employee plans | 8,293 | 3,599 | 3,488 |
Tax withholding payment related to net share settlement of equity awards | -1,994 | -3,066 | -3,448 |
Excess tax benefits from stock-based compensation | 3,972 | 655 | 364 |
Net cash (used in) provided by financing activities | -85,181 | -37,449 | 44,890 |
Impact of foreign exchange rate changes on cash balances | 946 | 30 | -1,192 |
Net (decrease) increase in cash and cash equivalents | -35,057 | 33,066 | -35,291 |
Cash and cash equivalents at beginning of year | 88,767 | 55,701 | 90,992 |
Cash and cash equivalents at end of year | 53,710 | 88,767 | 55,701 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Cash paid during the year for interest | 4,956 | 6,129 | 6,687 |
Cash paid during the year for income taxes, net | 4,398 | 6,918 | 2,150 |
Property and equipment accrued in accounts payable at year end | $108 | $489 | $525 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Newport Corporation stockholders' equity | Common Stock | Capital in excess of par value | Accumulated other comprehensive income | Accumulated deficit | Non-controlling interests |
In Thousands, unless otherwise specified | |||||||
Balance at Jan. 01, 2011 | $295,459 | $295,459 | $4,307 | $426,575 | $4,036 | ($139,459) | ' |
Balance (in shares) at Jan. 01, 2011 | ' | ' | 36,909 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 79,662 | 79,708 | ' | ' | ' | 79,708 | -46 |
Other comprehensive income (loss) | -10,036 | -10,025 | ' | ' | -10,025 | ' | -11 |
Non-controlling interests in companies acquired | 2,076 | ' | ' | ' | ' | ' | 2,076 |
Issuance of common stock under employee plans | 3,488 | 3,488 | 110 | 3,378 | ' | ' | ' |
Issuance of common stock under employee plans (in shares) | ' | ' | 936 | ' | ' | ' | ' |
Tax withholding payment related to net share settlement of equity awards | -3,448 | -3,448 | -25 | -3,423 | ' | ' | ' |
Tax withholding payment related to net share settlement of equity awards (in shares) | ' | ' | -211 | ' | ' | ' | ' |
Extinguishment of equity component of long-term debt | -1,489 | -1,489 | ' | -1,489 | ' | ' | ' |
Stock-based compensation expense | 6,201 | 6,201 | ' | 6,201 | ' | ' | ' |
Tax benefits from stock-based compensation, net | 364 | 364 | ' | 364 | ' | ' | ' |
Balance at Dec. 31, 2011 | 372,277 | 370,258 | 4,392 | 431,606 | -5,989 | -59,751 | 2,019 |
Balance (in shares) at Dec. 31, 2011 | ' | ' | 37,634 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -89,950 | -89,423 | ' | ' | ' | -89,423 | -527 |
Other comprehensive income (loss) | -1,026 | -960 | ' | ' | -960 | ' | -66 |
Issuance of common stock under employee plans | 3,599 | 3,599 | 111 | 3,488 | ' | ' | ' |
Issuance of common stock under employee plans (in shares) | ' | ' | 948 | ' | ' | ' | ' |
Purchase from non-controlling interest shareholder | -40 | ' | ' | ' | ' | ' | -40 |
Tax withholding payment related to net share settlement of equity awards | -3,066 | -3,066 | -22 | -3,044 | ' | ' | ' |
Tax withholding payment related to net share settlement of equity awards (in shares) | ' | ' | -180 | ' | ' | ' | ' |
Stock-based compensation expense | 8,369 | 8,369 | ' | 8,369 | ' | ' | ' |
Tax benefits from stock-based compensation, net | 655 | 655 | ' | 655 | ' | ' | ' |
Balance at Dec. 29, 2012 | 290,818 | 289,432 | 4,481 | 441,074 | -6,949 | -149,174 | 1,386 |
Balance (in shares) at Dec. 29, 2012 | ' | ' | 38,402 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 15,738 | 15,601 | ' | ' | ' | 15,601 | 137 |
Other comprehensive income (loss) | 3,216 | 3,330 | ' | ' | 3,330 | ' | -114 |
Issuance of common stock under employee plans | 8,293 | 8,293 | 131 | 8,162 | ' | ' | ' |
Issuance of common stock under employee plans (in shares) | ' | ' | 1,110 | ' | ' | ' | ' |
Deferral of vested restricted stock units | -561 | -561 | ' | -561 | ' | ' | ' |
Tax withholding payment related to net share settlement of equity awards | -1,994 | -1,994 | -14 | -1,980 | ' | ' | ' |
Tax withholding payment related to net share settlement of equity awards (in shares) | ' | ' | -118 | ' | ' | ' | ' |
Stock-based compensation expense | 9,173 | 9,173 | ' | 9,173 | ' | ' | ' |
Tax benefits from stock-based compensation, net | 3,694 | 3,694 | ' | 3,694 | ' | ' | ' |
Balance at Dec. 28, 2013 | $328,377 | $326,968 | $4,598 | $459,562 | ($3,619) | ($133,573) | $1,409 |
Balance (in shares) at Dec. 28, 2013 | ' | ' | 39,394 | ' | ' | ' | ' |
ORGANIZATION_AND_SUMMARY_OF_SI
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 28, 2013 | |||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Organization | |||
Newport Corporation, including its subsidiaries (collectively, the Company), is a global supplier of advanced-technology products and systems, including lasers, photonics instrumentation, precision positioning and vibration isolation products and systems, optical components, subassemblies and subsystems and three-dimensional non-contact measurement equipment. The Company’s products are used worldwide in a variety of industries including scientific research, defense and security, microelectronics, life and health sciences and industrial markets. Prior to 2013, the Company operated within three distinct business segments: its Lasers Division, its Photonics and Precision Technologies (PPT) Division and its Ophir Division. In January 2013, the Company reorganized its operations to create three new operating groups: its Photonics Group, its Lasers Group and its Optics Group, which represent the Company’s reportable segments commencing in 2013. The information related to the Company’s reportable segments for the years 2011 and 2012, which is included in the accompanying financial statements, has been restated to conform to these new reportable segments. All of these groups offer a broad array of advanced technology products and services to original equipment manufacturer (OEM) and end-user customers across a wide range of applications in all of the Company’s targeted end markets. | |||
Basis of Presentation | |||
The accompanying financial statements include the accounts of Newport Corporation and its wholly owned and majority owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||
The Company uses a 52/53-week accounting fiscal year ending on the Saturday closest to December 31, and its fiscal quarters end on the Saturday that is generally closest to the end of each corresponding calendar quarter. Fiscal year 2013 (referred to herein as 2013) ended on December 28, 2013, fiscal year 2012 (referred to herein as 2012) ended December 29, 2012 and fiscal year 2011 (referred to herein as 2011) ended December 31, 2011. Each of these fiscal years consisted of 52 weeks. | |||
Foreign Currency Translation | |||
Assets and liabilities for the Company’s international operations are translated into U.S. dollars using current rates of exchange in effect at the balance sheet dates. Items of income and expense for the Company’s international operations are translated using the monthly average exchange rates in effect for the period in which the items occur. The functional currency for all of the Company’s international operations is the local currency, except for Israel and Canada, for which the functional currency is the U.S. dollar. Where the local currency is the functional currency, the resulting translation gains and losses are included as a component of stockholders’ equity in accumulated other comprehensive income (loss). Where the U.S. dollar is the functional currency, the resulting translation gains and losses are included in the results of operations. Realized foreign currency transaction gains and losses for all entities are included in the results of operations. | |||
Derivative Instruments | |||
The Company recognizes all derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. The Company does not engage in currency speculation; however, the Company uses forward exchange contracts and foreign currency option contracts to mitigate the risks associated with certain foreign currency transactions entered into in the ordinary course of business, primarily foreign currency denominated receivables and payables. The Company has not elected hedge accounting treatment and, accordingly, changes in fair values are reported in the consolidated statements of operations and comprehensive income (loss). The forward exchange contracts and foreign currency option contracts generally result in the Company paying or receiving net amounts, based on the change in foreign currency rates between inception of the contracts and maturity of the contracts. If the counterparties to the contracts (typically highly rated banks) do not fulfill their obligations to deliver the contracted currencies, the Company could be at risk for any currency related fluctuations. Changes in fair values and transaction gains and losses are included in interest and other expense, net in the results of operations. Such amounts were not material for 2013, 2012 or 2011. | |||
Cash and Cash Equivalents and Marketable Securities | |||
The Company considers cash and highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Investments with original maturities exceeding three months at the date of purchase are classified as marketable securities. All marketable securities are classified as available for sale and are recorded at market value using the specific identification method; unrealized gains and losses are reflected in accumulated other comprehensive income (loss) unless the Company determines there is an other-than-temporary impairment, in which case the loss is recorded in the consolidated statements of operations and comprehensive income (loss). | |||
Restricted Cash | |||
The Company has certain agreements, which require it to maintain specified cash balances as collateral. Such amounts have been classified as restricted cash. | |||
Accounts Receivable | |||
The Company records reserves for specific receivables deemed to be at risk for collection, as well as a reserve based on its historical collections experience. The Company estimates the collectability of customer receivables on an ongoing basis by reviewing past due invoices and assessing the current creditworthiness of each customer. A considerable amount of judgment is required in assessing the ultimate realization of these receivables. | |||
Concentrations of Credit Risk | |||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, foreign exchange contracts and accounts receivable. The Company maintains cash and cash equivalents with and purchases its foreign exchange contracts from major financial institutions and performs periodic evaluations of the relative credit standing of these financial institutions in order to limit the amount of credit exposure with any one institution. Substantially all of the Company’s marketable securities are currently invested in Euro Over Night Index Average (Eonia) securities or certificates of deposit. The Company’s senior financial management and the Company’s Board of Directors periodically review the marketable securities to determine the appropriate investment strategy. | |||
The Company’s customers are concentrated in the scientific research, defense and security, microelectronics, life and health sciences and industrial markets, and their ability to pay may be influenced by the prevailing macroeconomic conditions present in these markets. Receivables from the Company’s customers are generally unsecured. To reduce the overall risk of collection, the Company performs ongoing evaluations of its customers’ financial condition. For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, no customer accounted for 10% or more of the Company’s net sales or 10% or more of the Company’s gross accounts receivable as of the end of such year. | |||
Pension Plans | |||
Several of the Company’s non-U.S. subsidiaries have defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. For financial reporting purposes, the calculation of net periodic pension costs is based upon a number of actuarial assumptions, including a discount rate for plan obligations, an assumed rate of return on pension plan assets and an assumed rate of compensation increase for employees covered by the plan. All of these assumptions are based upon management’s judgment, considering all known trends and uncertainties. | |||
The Company accounts for its Israeli pension plans using the shut-down method of accounting. Under the shut-down method, the liability is calculated as if it was payable as of each balance sheet date, on an undiscounted basis. In addition, the assets and liabilities of the plans are accounted for on a gross basis. | |||
Inventories | |||
Inventories are stated at the lower of cost (determined on a first-in, first-out (FIFO) basis) or fair market value and include materials, labor and manufacturing overhead. Inventories that are expected to be sold within one year are classified as current inventories and are included in inventories, and inventories that the Company expects to hold for longer than one year are included in investments and other assets. The Company writes down excess and obsolete inventory to net realizable value. Once the Company writes down the carrying value of inventory, a new cost basis is established, and the Company does not increase the newly established cost basis based on subsequent changes in facts and circumstances. In assessing the ultimate realization of inventories, the Company makes judgments as to future demand requirements and compares those requirements with the current or committed inventory levels. The Company records any amounts required to reduce the carrying value of inventory to net realizable value as a charge to cost of sales. | |||
Property and Equipment | |||
Property and equipment are stated at cost, less accumulated depreciation. Depreciation expense includes amortization of assets under capital leases. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets as follows: | |||
Buildings and improvements | 3 to 40 years | ||
Machinery and equipment | 2 to 20 years | ||
Office equipment | 3 to 10 years | ||
Leasehold improvements are amortized over the shorter of their estimated useful life or the remaining lease term. | |||
Capitalized Software Costs | |||
All direct costs related to developing internal use software during the application development stage are capitalized and amortized using the straight-line method over the estimated useful lives of the assets. Costs incurred in the preliminary project stage, maintenance costs and training costs are expensed as incurred. | |||
Intangible Assets, including Goodwill | |||
Developed technology is amortized on a straight line basis over 10 to 20 years, depending on the life of the product technology. Intangible assets related to customer relationships are primarily amortized over a period of up to 10 years on an accelerated basis. In-process research and development is amortized on a straight line basis over the product’s estimated useful life upon completion of the technology. Other intangible assets include acquired backlog, product trademarks and trade names, non-competition agreements and defensible assets. With the exception of product trademarks and trade names, such assets are amortized on a straight line basis over a period of three months to 10 years, depending on the asset. Trademarks and trade names associated with products are amortized on a straight line basis over the estimated remaining life of the product technology, which ranges from 10 to 20 years. Trademarks and trade names associated with a business have indefinite lives and are not amortized. | |||
Goodwill represents the excess of the purchase price of the net assets of acquired entities over the fair value of such assets. Under Accounting Standards Codification (ASC) 350, Intangibles — Goodwill and Other, goodwill and other indefinite-lived intangible assets are not amortized but are tested for impairment at least annually or when circumstances exist that would indicate an impairment of such goodwill or other intangible assets. The Company performs the annual impairment test as of the beginning of the fourth quarter of each year. A two-step test is used to identify the potential impairment and to measure the amount of impairment, if any. The first step is based upon a comparison of the fair value of each of the Company’s reporting units, as defined, and the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill is considered not to be impaired; otherwise, step two is required. Under step two, the implied fair value of goodwill, calculated as the difference between the fair value of the reporting unit and the fair value of the net assets of the reporting unit, is compared with the carrying value of goodwill. The excess of the carrying value of goodwill over the implied fair value represents the amount impaired. | |||
The Company determines its reporting units by identifying those operating segments or components for which discrete financial information is available which is regularly reviewed by the management of that unit. For any acquisition, the Company allocates goodwill to the applicable reporting unit at the completion of the purchase price allocation through specific identification. | |||
Fair value of the Company’s reporting units is determined using a combination of a comparative company analysis and a discounted cash flow analysis. The comparative company analysis establishes fair value by applying market multiples to the Company’s revenue and earnings before interest, income taxes, depreciation and amortization. Such multiples are determined by comparing the Company’s reporting units with other publicly traded companies within the respective industries that have similar economic characteristics. In addition, a control premium is added to reflect the value an investor would pay to obtain a controlling interest, which is consistent with the median control premium for transactions in those industries in which the Company does business. The discounted cash flow analysis establishes fair value by estimating the present value of the projected future cash flows of each reporting unit and applying a terminal growth rate. The present value of estimated discounted future cash flows is determined using the Company’s estimates of revenue and costs for the reporting units, using a combination of historical results, industry data and competitor data, as well as appropriate discount rates. The discount rate is determined using a weighted-average cost of capital that incorporates market participant data and a risk premium applicable to each reporting unit. See Note 5 for an explanation of impairment charges recorded during 2012. There were no impairment charges in 2013 or 2011. | |||
Long-Lived Assets | |||
The Company assesses the impairment of long-lived assets, other than goodwill and other indefinite-lived intangible assets, to determine if their carrying value may not be recoverable. The determination of related estimated useful lives and whether or not these assets are impaired involves significant judgments, related primarily to the future profitability and/or future value of the assets. Changes in the Company’s strategic plan and/or other-than-temporary changes in market conditions could significantly impact these judgments and could require adjustments to recorded asset balances. Long-lived assets are evaluated for impairment at least annually, as well as whenever an event or change in circumstances has occurred that could have a significant adverse effect on the fair value of long-lived assets. In the fourth quarter of 2012, in connection with the Company’s annual evaluation of long-lived assets, it determined that certain assets of its former Ophir Division (which are now a part of the Company’s Photonics Group) were impaired. Accordingly, the Company recorded an impairment charge of $0.5 million related to fixed assets. There were no impairment charges during 2013 or 2011. | |||
Warranty | |||
Unless otherwise stated in the Company’s product literature or in its agreements with customers, products sold by the Company’s Photonics and Optics Groups generally carry a one-year warranty from the original invoice date on all product materials and workmanship, other than filters and gratings products, which generally carry a 90-day warranty, and laser beam profilers and dental CAD/CAM scanners, which generally carry a two-year warranty. Products sold by the Photonics and Optics Groups to original equipment manufacturer (OEM) customers carry warranties generally ranging from 15 to 19 months. Products sold by the Company’s Lasers Group carry warranties that vary by product and product component, but generally range from 90 days to two years. In certain cases, such warranties for Lasers Group products are limited by either a set time period or a maximum amount of hourly usage of the product, whichever occurs first. Defective products will be either repaired or replaced, generally at the Company’s option, upon meeting certain criteria. The Company accrues a provision for the estimated costs that may be incurred for warranties relating to a product (based on historical experience) as a component of cost of sales. | |||
Environmental Reserves | |||
The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures are discounted to their present value. Recoveries of environmental remediation costs from other parties are recognized as assets when their receipt is deemed probable. See Note 10 for additional information. | |||
Revenue Recognition | |||
The Company recognizes revenue after title to and risk of loss of products have passed to the customer, or delivery of the service has been completed, provided that persuasive evidence of an arrangement exists, the price is fixed or determinable and collectability is reasonably assured. Title to and risk of loss of products generally pass to the customer upon delivery, but in certain cases pass upon acceptance. The Company recognizes revenue and related costs for arrangements with multiple deliverables, such as equipment and installation, as each element is delivered or completed based upon its relative selling price, determined based upon the price that would be charged on a standalone basis. If a portion of the total contract price is not payable until installation is complete, the Company does not recognize such portion as revenue until completion of installation. Revenue for extended service contracts is recognized over the related contract periods. Revenue for programs involving design and development services and delivery of product prototypes and/or other deliverables is recognized upon the completion of specified milestones, or over the term of the program based upon the percentage of completion of the program, depending on the terms of the associated contract. Certain sales to international customers are made through third-party distributors and revenue is recognized upon the sale to the distributor. A discount below list price is generally provided at the time the product is sold to the distributor, and such discount is reflected as a reduction in net sales. Freight costs billed to customers are included in net sales, and freight costs incurred are included in selling, general and administrative expenses. Sales taxes collected from customers are recorded on a net basis and any amounts not yet remitted to tax authorities are included in accrued expenses and other current liabilities. | |||
Customers (including distributors) generally have 30 days from the original invoice date (generally 60 days for international customers) to return a standard catalog product purchase for exchange or credit. Catalog products must be returned in the original condition and meet certain other criteria. Custom, option-configured and certain other products as defined in the terms and conditions of sale cannot be returned without the Company’s consent. For certain products, the Company establishes a sales return reserve based on the historical product returns. | |||
Advertising | |||
The Company expenses the costs of advertising as incurred, except for the costs of its product catalogs, which are accounted for as prepaid supplies until they are distributed to customers or are no longer expected to be used. Capitalized catalog costs were not material at December 28, 2013 and December 29, 2012. Advertising costs, including the costs of the Company’s participation at industry trade shows, totaled $4.2 million, $3.9 million and $4.2 million for 2013, 2012 and 2011, respectively. | |||
Shipping and Handling Costs | |||
The Company expenses the costs of shipping and handling as incurred. Shipping and handling costs of $4.7 million, $5.2 million and $5.0 million are included in selling, general and administrative expenses for 2013, 2012 and 2011, respectively. | |||
Research and Development | |||
All research and development costs are expensed as incurred. | |||
Non-Controlling Interests | |||
In October 2011, the Company acquired Ophir Optronics Ltd. (Ophir), as discussed in Note 2. As of December 28, 2013, Ophir’s subsidiaries, Ophir Japan, Ltd. in Japan, Ophir Optronics GmbH in Germany, and Optical Metrology Ltd. in Israel, had non-controlling interest holders of 33.3%, 25% and 14.1%, respectively. Earnings (losses) attributable to the non-controlling interests are separately identified in the Company’s consolidated financial statements. | |||
During the first quarter of 2014, Ophir purchased all shares owned by the holders of the non-controlling interests in Optical Metrology Ltd for $0.9 million. | |||
Income Taxes | |||
The Company utilizes the asset and liability method of accounting for income taxes. Deferred income taxes are recognized for the future tax consequences of temporary differences using enacted statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Temporary differences include the difference between the financial statement carrying amounts, and the tax bases of existing assets and liabilities as well as operating loss and tax credit carryforwards. In accordance with the provisions of ASC 740, a valuation allowance for deferred tax assets is recorded to the extent the Company cannot determine that the ultimate realization of the net deferred tax assets is more likely than not. | |||
The Company utilizes ASC 740-10-25, Income Taxes - Recognition, for the recognition, measurement and disclosure of uncertain tax positions. Under ASC 740-10-25, income tax positions must meet the more-likely-than-not threshold to be recognized in the financial statements. The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as income tax expense. | |||
Income (loss) per Share | |||
Basic income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted income per share is computed using the weighted-average number of shares of common stock outstanding during the period plus the dilutive effects of common stock equivalents (restricted stock units, stock options and stock appreciation rights) outstanding during the period, determined using the treasury stock method. Diluted loss per share excludes the antidilutive effects of common stock equivalents outstanding during the periods. | |||
Stock-Based Compensation | |||
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation — Stock Compensation. Under the fair value recognition provision of ASC 718, stock-based compensation cost is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options and stock appreciation rights granted using the Black-Scholes-Merton option pricing model and a single option award approach. The fair value of restricted stock unit awards is based on the closing market price of the Company’s common stock on the date of grant. | |||
Determining the appropriate fair value of stock options and stock appreciation rights at the grant date requires significant judgment, including estimating the volatility of the Company’s common stock and expected term of the awards. The Company computes expected volatility based on historical volatility over the expected term. The expected term represents the period of time that stock options and stock appreciation rights are expected to be outstanding and is determined based on historical experience, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expected exercise behavior. | |||
A substantial portion of the Company’s restricted stock unit awards vest based upon the achievement of one or more financial performance thresholds established by the Compensation Committee of the Company’s Board of Directors. Currently, such performance thresholds relate to the fiscal year in which the award is granted, and if and to the extent that such performance thresholds are met, the awards vest in equal one-third (1/3) annual installments. Until the Company has determined that performance thresholds have been met, the amount of expense that the Company records relating to performance-based awards is estimated based on the likelihood of achieving the performance thresholds. The amount of expense recorded by the Company is also based on estimated forfeitures. The fair value of stock-based awards, adjusted for estimated forfeitures (and adjusted for estimated or actual achievement of performance thresholds in the case of awards having performance-based vesting conditions), is amortized using the straight-line attribution method over the requisite service period of the award, which is generally the vesting period. | |||
Use of Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates made in preparing the consolidated financial statements include (but are not limited to) those related to revenue recognition, the allowance for doubtful accounts, inventory reserves, warranty obligations, pension plans, asset impairment valuations, income tax valuations, and stock-based compensation expenses. | |||
Recent Accounting Pronouncements | |||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires companies to disclose significant amounts that have been reclassified out of accumulated other comprehensive income. Amounts that are required to be reclassified in their entirety to net income must be disclosed either on the face of the income statement or in the notes to the financial statements. Amounts that are not required to be reclassified in their entirety to net income in the same reporting period must be disclosed by a cross reference to other disclosures that provide additional information regarding such amounts. ASU No. 2013-02 is effective for fiscal years and interim periods beginning after December 15, 2012. The adoption of ASU No. 2013-02 has not had a material impact on the Company’s financial position or results of operations. | |||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters: Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, which clarifies the guidance in Topics 810 and 830. Topic 810 requires companies to deconsolidate a subsidiary or derecognize a group of assets if the parent ceases to hold a controlling financial interest in that subsidiary or group of assets. Upon the loss of a controlling financial interest, the parent would recognize the cumulative translation adjustment in net income. The guidance in Topic 810 does not distinguish between a sale or transfer of an investment in a foreign entity and a sale or transfer of a subsidiary or group of assets within a foreign entity. Topic 830 requires the release of the cumulative translation adjustment into net income if a sale or transfer represented a complete or substantially complete liquidation of an investment in a foreign entity. ASU No. 2013-05 clarifies that companies that cease to have a controlling financial interest in a subsidiary or group of assets within a foreign subsidiary should release the cumulative translation adjustment into net income if the sale or transfer results in a complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. ASU No. 2013-05 has become effective for fiscal years beginning after December 15, 2013. The adoption of ASU No. 2013-05 has not had a material impact on the Company’s financial position or results of operations. | |||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides explicit guidance on the financial statement presentation of an unrecognized tax benefit. ASU No. 2013-11 requires unrecognized tax benefits to be presented as a reduction to a deferred tax asset, except that, if a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position, then the unrecognized tax benefit should be presented as a liability. ASU No. 2013-11 has become effective for fiscal years and interim periods beginning after December 15, 2013. The adoption of ASU No. 2013-11 has not had a material impact on the Company’s financial position or results of operations. |
ACQUISITIONS_AND_DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
ACQUISITIONS AND DIVESTITURES | ' | |||||||||||||
ACQUISITIONS AND DIVESTITURES | ' | |||||||||||||
NOTE 2 ACQUISITIONS AND DIVESTITURES | ||||||||||||||
Divestiture of Advanced Packaging Systems Business | ||||||||||||||
During the third quarter of 2013, the Company developed a plan to sell its advanced packaging systems business and, based on negotiations for the sale of this business that occurred during the second half of 2013, the Company considered the assets and liabilities of this business as held for sale as of December 28, 2013. The Company completed the sale of this business in January 2014 for a price of $6.0 million, consisting of $5.35 million in cash and an unsecured note receivable of $0.65 million. The Company incurred $0.4 million in transaction costs. The net book value of this business was $9.5 million as of December 28, 2013; however, because these assets were held for sale at such time, the Company wrote them down to their net realizable value as of December 28, 2013 based on the terms that had been negotiated with the purchaser and expected transaction costs, resulting in a loss of $4.7 million during 2013. The net sales, operating income and cash flows of this business were not significant to the operations of the Company. | ||||||||||||||
Acquisition of Vistek Assets | ||||||||||||||
On October 10, 2012, the Company acquired substantially all of the assets of Advanced Vibration Technologies, Inc., a corporation doing business under the trade name of Vistek (Vistek), for a purchase price of $2.5 million. The purchase price was paid in cash at closing, of which $0.25 million was deposited at closing into escrow until October 10, 2013, to secure certain indemnification obligations of Vistek and its sole shareholder under the asset purchase agreement. The full amount of the escrow deposit was released to the seller upon the expiration of the escrow. The Company incurred $49 thousand in transaction costs, which have been expensed as incurred and are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income (loss). This acquisition expanded the Company’s vibration control and isolation product offerings. The results of the Vistek business are included in the results of the Company’s Photonics Group (previously part of the Company’s PPT Division). | ||||||||||||||
Acquisition of ILX | ||||||||||||||
On January 13, 2012, the Company acquired all of the outstanding capital stock of ILX Lightwave Corporation (ILX) by means of a merger of a wholly owned subsidiary of the Company with and into ILX. The total purchase price for the acquisition was $9.0 million. An initial purchase price of $9.3 million was paid in cash at closing, of which $1.2 million was deposited at closing into escrow until July 12, 2013, to secure certain indemnification and other obligations of the ILX securityholders. The purchase price was subsequently reduced by $0.3 million, based on a calculation of ILX’s net assets at closing. The full amount of the escrow deposit was released to the ILX securityholders upon the expiration of the escrow. The Company incurred $0.1 million in transaction costs, which have been expensed as incurred and are included in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income (loss). This acquisition expanded the Company’s optical power meter, laser diode instrumentation and fiber optic source product offerings, and added laser diode and light emitting diode (LED) burn-in, test and characterization systems to its product portfolio. The results of ILX are included in the results of the Company’s Photonics Group (previously part of the Company’s PPT Division). | ||||||||||||||
Purchase Price Allocation for 2012 Acquisitions | ||||||||||||||
The consideration paid by the Company for its acquisitions is allocated to the assets acquired, net of the liabilities assumed, based upon their estimated fair values as of the date of the acquisition. The estimated fair values of intangible assets acquired were determined using an income approach. The excess of the purchase price over the estimated fair value of the assets acquired, net of the estimated fair value of the liabilities assumed, is recorded as goodwill. Below is a summary of the purchase price, assets acquired and liabilities assumed: | ||||||||||||||
(In thousands) | ILX | Vistek | Total | |||||||||||
Business | ||||||||||||||
Assets acquired and liabilities assumed: | ||||||||||||||
Cash | $ | 44 | $ | — | $ | 44 | ||||||||
Accounts receivable | 1,224 | — | 1,224 | |||||||||||
Inventories | 861 | 81 | 942 | |||||||||||
Other assets | 587 | 26 | 613 | |||||||||||
Goodwill | 3,762 | 273 | 4,035 | |||||||||||
Developed technology | 2,800 | 1,200 | 4,000 | |||||||||||
Customer relationships | 1,100 | 900 | 2,000 | |||||||||||
Other intangible assets | 1,090 | 20 | 1,110 | |||||||||||
Deferred income taxes | (1,841 | ) | — | (1,841 | ) | |||||||||
Other liabilities | (644 | ) | — | (644 | ) | |||||||||
$ | 8,983 | $ | 2,500 | $ | 11,483 | |||||||||
The goodwill related to the Company’s acquisitions of ILX and Vistek had originally been allocated to the Company’s former PPT Division. However, as a result of the reorganization of the Company’s operating segments, as discussed in Notes 1 and 15, the goodwill allocated to the Company’s former PPT Division has been reallocated to its Photonics and Optics Groups. See Note 5 for additional detail regarding this reallocation. The goodwill related to the Company’s acquisition of ILX is not deductible for tax purposes, as the transaction was a merger. The goodwill related to the Company’s acquisition of the Vistek business is deductible for tax purposes, as the transaction was an asset purchase. | ||||||||||||||
Acquisition of Opticoat Assets | ||||||||||||||
On December 29, 2011, the Company acquired substantially all of the assets of Opticoat SRL (Opticoat) for a purchase price of $3.0 million in cash, of which $2.0 million was paid upon the closing and $1.0 million was held back to secure certain obligations of Opticoat under the acquisition agreement. The Company paid $0.85 million in 2012 and the remaining $0.15 million in 2013. The present value of these payments was determined to be $2.9 million. The Company incurred $0.1 million in transaction costs, which have been expensed as incurred and are included in selling, general and administrative expenses in the accompanying statements of operations and comprehensive income (loss). This acquisition provided the Company with additional low-cost manufacturing capacity in the areas of precision optical components and coatings. | ||||||||||||||
Acquisition of Ophir | ||||||||||||||
On October 4, 2011, the Company acquired all of the outstanding capital stock of Ophir for $242.3 million in cash, of which $242.1 million was allocated to the purchase price and $0.2 million was allocated to the fair value of unearned compensation related to unvested stock options. The Company funded the purchase price with a combination of $162.8 million of cash on hand and $79.5 million of the net proceeds received from the senior secured credit facility obtained by the Company in October 2011. After considering the cash held by Ophir as of the closing date, the net cash used by the Company for this transaction was $219.2 million. The Company incurred $4.7 million in transaction costs, which have been expensed as incurred and are included in selling, general and administrative expenses in the accompanying statements of operations and comprehensive income (loss). This acquisition added Ophir’s precision infrared optics, laser measurement instrumentation and three-dimensional non-contact measurement sensors and equipment to the Company’s product offerings. | ||||||||||||||
Acquisition of High Q | ||||||||||||||
On July 29, 2011, the Company acquired all of the capital stock of High Q Technologies GmbH (High Q). The total purchase price was $18.5 million, consisting of an initial purchase price of $17.2 million, $2.9 million of which was deposited into escrow until December 31, 2013 to secure representations and warranties made by the sellers, and a subsequent payment of $1.3 million, which was paid to the sellers based on a calculation of High Q’s net assets at closing. The full amount of the escrow deposit was released to the sellers upon the expiration of the escrow. After considering the cash held by High Q as of the closing date, the net cash used by the Company for this transaction was $12.5 million. The Company incurred $0.4 million in transaction costs, which have been expensed as incurred and are included in selling, general and administrative expenses in the accompanying statements of operations and comprehensive income (loss). This acquisition broadened the Company’s ultrafast laser capabilities, particularly for applications in the life and health sciences and industrial markets, and expanded the Company’s presence in European laser markets. | ||||||||||||||
Prior to the closing of the acquisition, High Q sold the building that houses its corporate headquarters and its operations to a company established by the then-largest shareholder of High Q for €3.5 million, and leased the building from the purchaser for a period of at least ten years. High Q financed the purchase price of the building pursuant to a loan agreement with the purchaser that is secured by a mortgage on the building in favor of High Q. Such loan will be repaid over ten years and accrues interest at an annual rate of 2.0%. The principal balance of the loan was €3.1 million ($4.2 million) as of December 28, 2013. As of December 28, 2013, the current portion of the loan was $0.3 million and is included in prepaid expenses and other current assets and the long-term portion of the loan was $3.9 million and is included in investments and other assets. | ||||||||||||||
Purchase Price Allocation for 2011 Acquisitions | ||||||||||||||
Below is a summary of the purchase price, assets acquired and liabilities assumed related to the Company’s acquisitions in 2011: | ||||||||||||||
(In thousands) | Ophir | High Q | Opticoat | Total | ||||||||||
Assets acquired and liabilities assumed: | ||||||||||||||
Cash | $ | 23,233 | $ | 5,989 | $ | — | $ | 29,222 | ||||||
Accounts receivable | 18,732 | 1,494 | — | 20,226 | ||||||||||
Inventories | 30,370 | 7,829 | — | 38,199 | ||||||||||
Other current assets | 4,478 | 5,957 | — | 10,435 | ||||||||||
Goodwill | 66,524 | 6,745 | 1,302 | 74,571 | ||||||||||
Developed technology | 41,530 | 6,300 | 705 | 48,535 | ||||||||||
In-process research and development | 9,560 | — | — | 9,560 | ||||||||||
Customer relationships | 56,640 | 1,350 | 148 | 58,138 | ||||||||||
Other intangible assets | 13,970 | 4,170 | — | 18,140 | ||||||||||
Property and equipment | 41,652 | 1,436 | 917 | 44,005 | ||||||||||
Other noncurrent assets | 13,917 | 225 | — | 14,142 | ||||||||||
Short-term borrowings | (7,082 | ) | (10,699 | ) | — | (17,781 | ) | |||||||
Accounts payable | (7,756 | ) | (1,792 | ) | — | (9,548 | ) | |||||||
Other current liabilities | (17,562 | ) | (3,690 | ) | — | (21,252 | ) | |||||||
Long-term debt | (9,781 | ) | (4,161 | ) | — | (13,942 | ) | |||||||
Deferred income taxes | (23,292 | ) | (2,063 | ) | — | (25,355 | ) | |||||||
Other noncurrent liabilities | (10,973 | ) | (585 | ) | (137 | ) | (11,695 | ) | ||||||
Non-controlling interests | (2,076 | ) | — | — | (2,076 | ) | ||||||||
$ | 242,084 | $ | 18,505 | $ | 2,935 | $ | 263,524 | |||||||
For the Company’s Ophir and Opticoat acquisitions, goodwill had been allocated to the Company’s former Ophir Division. However, in 2012, the Company determined that such goodwill was impaired, as discussed below and in Note 5. For the Company’s High Q acquisition, goodwill has been allocated to the Company’s Lasers Group, a portion of which will be deductible for Austrian tax purposes. | ||||||||||||||
In 2012, the Company determined that goodwill and other assets related to its former Ophir Division were impaired and recorded impairment charges of $67.8 million related to goodwill, $62.6 million related to other acquired intangible assets and $0.5 million related to fixed assets. See Note 5 for additional information. |
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
MARKETABLE SECURITIES | ' | ||||||||||
MARKETABLE SECURITIES | ' | ||||||||||
NOTE 3 MARKETABLE SECURITIES | |||||||||||
The Company’s portfolio of marketable securities was as follows: | |||||||||||
December 28, | December 29, | ||||||||||
(In thousands) | 2013 | 2012 | |||||||||
Money market funds | $ | 8,052 | $ | 4,244 | |||||||
Certificates of deposit | 167 | 4,254 | |||||||||
$ | 8,219 | $ | 8,498 | ||||||||
All marketable securities were classified as available for sale and were recorded at market value using the specific identification method, and unrealized gains and losses are reflected in accumulated other comprehensive loss in the accompanying consolidated balance sheets. The aggregate fair value of available for sale securities and aggregate amount of unrealized gains and losses for available for sale securities at December 28, 2013 were as follows: | |||||||||||
Aggregate | Aggregate Amount of | ||||||||||
Unrealized | |||||||||||
(In thousands) | Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 8,052 | $ | 91 | $ | — | |||||
Certificates of deposit | 167 | — | — | ||||||||
$ | 8,219 | $ | 91 | $ | — | ||||||
The aggregate fair value of available for sale securities and the aggregate amount of unrealized gains and losses for available for sale securities at December 29, 2012 were as follows: | |||||||||||
Aggregate | Aggregate Amount of | ||||||||||
Unrealized | |||||||||||
(In thousands) | Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 4,244 | $ | 86 | $ | — | |||||
Certificates of deposit | 4,254 | — | — | ||||||||
$ | 8,498 | $ | 86 | $ | — | ||||||
The Company’s certificates of deposit mature within one year. Money market funds do not have a maturity date. | |||||||||||
The gross realized gains and losses on sales of available for sale securities were as follows: | |||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Gross realized gains | $ | — | $ | — | $ | 69 | |||||
Gross realized losses | — | — | |||||||||
$ | — | $ | — | $ | 69 | ||||||
SUPPLEMENTAL_BALANCE_SHEET_INF
SUPPLEMENTAL BALANCE SHEET INFORMATION | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | |||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | |||||||
NOTE 4 SUPPLEMENTAL BALANCE SHEET INFORMATION | ||||||||
Inventories | ||||||||
Inventories that are expected to be sold within one year are classified as current inventories and are included in inventories in the accompanying consolidated balance sheets. Such inventories were as follows: | ||||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Raw materials and purchased parts | $ | 61,819 | $ | 65,766 | ||||
Work in process | 19,577 | 18,075 | ||||||
Finished goods | 21,987 | 24,887 | ||||||
$ | 103,383 | $ | 108,728 | |||||
Inventories that are not expected to be sold within one year are classified as long-term inventories and are included in investments and other assets in the accompanying consolidated balance sheets. Such inventories were as follows: | ||||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Raw materials and purchased parts | $ | 1,850 | $ | 4,149 | ||||
Finished goods | 4,489 | 4,926 | ||||||
$ | 6,339 | $ | 9,075 | |||||
Property and Equipment, net | ||||||||
Property and equipment, net, including assets under capital leases, were as follows: | ||||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Land | $ | 3,372 | $ | 3,456 | ||||
Buildings | 11,177 | 10,377 | ||||||
Leasehold improvements | 37,512 | 37,591 | ||||||
Machinery and equipment | 96,410 | 86,816 | ||||||
Office equipment | 50,641 | 46,626 | ||||||
199,112 | 184,866 | |||||||
Less accumulated depreciation and amortization | (118,596 | ) | (102,023 | ) | ||||
$ | 80,516 | $ | 82,843 | |||||
Depreciation expense, including the amortization of assets under capital leases, totaled $17.2 million, $18.2 million and $13.2 million for 2013, 2012 and 2011, respectively. At December 28, 2013 and December 29, 2012, assets under capital leases were $0.9 million and $1.0 million, net of accumulated amortization of $1.8 million and $1.6 million, respectively. | ||||||||
Accrued Warranty Obligations | ||||||||
Short-term accrued warranty obligations, which expire within one year, are included in accrued expenses and other current liabilities and long-term warranty obligations are included in deferred income taxes and other liabilities in the accompanying consolidated balance sheets. | ||||||||
The activity in accrued warranty obligations was as follows: | ||||||||
Year Ended | ||||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Balance at beginning of year | $ | 3,528 | $ | 4,466 | ||||
Additions charged to cost of sales | 2,416 | 2,674 | ||||||
Additions from acquisitions | — | 21 | ||||||
Warranty claims | (2,659 | ) | (3,633 | ) | ||||
Balance at end of year | $ | 3,285 | $ | 3,528 | ||||
Accrued Expenses and Other Current Liabilities | ||||||||
Accrued expenses and other current liabilities were as follows: | ||||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Deferred revenue | $ | 13,609 | $ | 11,561 | ||||
Deferred lease liability | 5,448 | 5,445 | ||||||
Accrued and deferred taxes | 3,130 | 3,866 | ||||||
Short-term accrued warranty obligations | 3,093 | 3,421 | ||||||
Other | 10,061 | 10,403 | ||||||
$ | 35,341 | $ | 34,696 | |||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated other comprehensive loss consisted of the following: | ||||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Cumulative foreign currency translation losses | $ | (2,296 | ) | $ | (4,569 | ) | ||
Unrecognized net pension losses, net of tax | (2,399 | ) | (3,248 | ) | ||||
Unrealized gains on marketable securities, net of tax | 1,076 | 868 | ||||||
$ | (3,619 | ) | $ | (6,949 | ) |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||
NOTE 5 GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||
Photonics | Lasers | Optics | ||||||||||||
(In thousands) | Group | Group | Group | Total | ||||||||||
Balance at December 31, 2011: | ||||||||||||||
Goodwill | $ | 96,004 | $ | 110,673 | $ | 41,144 | $ | 247,821 | ||||||
Accumulated impairment losses | — | (104,562 | ) | — | (104,562 | ) | ||||||||
96,004 | 6,111 | 41,144 | 143,259 | |||||||||||
Goodwill acquired | 2,825 | — | 1,211 | 4,035 | ||||||||||
Goodwill impairment | (47,458 | ) | — | (20,339 | ) | (67,797 | ) | |||||||
Foreign currency impact | (20 | ) | 118 | (9 | ) | 89 | ||||||||
Balance at December 29, 2012: | ||||||||||||||
Goodwill | 98,808 | 110,791 | 42,346 | 251,945 | ||||||||||
Accumulated impairment losses | (47,458 | ) | (104,562 | ) | (20,339 | ) | (172,359 | ) | ||||||
51,350 | 6,229 | 22,007 | 79,586 | |||||||||||
Goodwill allocated to divestiture | — | — | (1,032 | ) | (1,032 | ) | ||||||||
Foreign currency impact | — | 247 | — | 247 | ||||||||||
Balance at December 28, 2013: | ||||||||||||||
Goodwill | 98,808 | 111,038 | 41,314 | 251,160 | ||||||||||
Accumulated impairment losses | (47,458 | ) | (104,562 | ) | (20,339 | ) | (172,359 | ) | ||||||
$ | 51,350 | $ | 6,476 | $ | 20,975 | $ | 78,801 | |||||||
As discussed in Note 1, the Company reorganized its operations in January 2013 to create three new operating groups: its Photonics Group, its Lasers Group and its Optics Group. The Lasers Group is substantially the same as the former Lasers Division. The Photonics Group is comprised primarily of the photonics products and technologies of the Company’s former PPT Division and the Company’s former Ophir Division. The Optics Group is comprised primarily of the optical components and integrated solutions products and technologies of the former PPT Division and the former Ophir Division. The goodwill, and the related impairment of goodwill, of the Company’s former Ophir Division was allocated to the Photonics Group and the Optics Group based on the relative fair values of the new operating groups as of the reorganization date. The result was a 70% allocation of goodwill to the Photonics Group and a 30% allocation to the Optics Group. The prior period amounts stated in the table above have been reclassified using these allocation percentages for comparative purposes. | ||||||||||||||
During 2013, the Company allocated $1.0 million of goodwill to its advanced packaging systems business, which was sold in January 2014, as discussed in Note 2. | ||||||||||||||
During 2012, the Company allocated $4.0 million of goodwill to the acquisition of ILX and the Vistek business. These amounts have been reallocated to our Photonics and Optics Groups, as shown in the table above. | ||||||||||||||
During 2012, sales by the Company’s former Ophir Division were below the levels that it had originally forecasted at the time of the acquisition of Ophir. In light of those sales levels and other factors, in connection with the annual evaluation of goodwill and other intangible assets in the fourth quarter of 2012, the Company determined that the cash flow projections of its former Ophir Division had diminished and, therefore, the goodwill and other intangible assets associated with that division were impaired. As a result, the Company recorded an impairment charge of $67.8 million, which has been reallocated to our Photonics and Optics Groups, as shown in the table above. | ||||||||||||||
Intangible assets, excluding goodwill, were as follows: | ||||||||||||||
December 28, | December 29, | |||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Developed technology, net of accumulated amortization of $14,079 and $10,885 as of December 28, 2013 and December 29, 2012, respectively | $ | 26,805 | $ | 29,742 | ||||||||||
Customer relationships, net of accumulated amortization of $32,614 and $26,255 as of December 28, 2013 and December 29, 2012, respectively | 13,795 | 20,100 | ||||||||||||
In-process research and development, net of accumulated amortization of $759 and $158 as of December 28, 2013 and December 29, 2012, respectively | 7,162 | 7,746 | ||||||||||||
Other, net of accumulated amortization of $6,324 and $5,915 as of December 28, 2013 and December 29, 2012, respectively | 1,275 | 1,553 | ||||||||||||
49,037 | 59,141 | |||||||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Trademarks and trade names | 18,305 | 18,305 | ||||||||||||
Intangible assets, net | $ | 67,342 | $ | 77,446 | ||||||||||
As discussed above, during 2012, the Company determined that intangible assets associated with its former Ophir Division were impaired. As a result, the Company recorded an impairment charge related to acquired intangible assets of $62.6 million. Such charges consisted of $33.8 million for customer relationships, $21.5 million for developed technology, $2.1 million for in-process research and development, $4.6 million for indefinite-lived trade names and $0.6 million for finite-lived trade names. Trade names and developed technologies were valued using the relief-from-royalty method, and customer relationships and in-process research and development were valued using the multi-period excess earnings method. | ||||||||||||||
Amortization expense related to intangible assets totaled $10.3 million, $17.7 million and $7.7 million for 2013, 2012 and 2011, respectively. | ||||||||||||||
Estimated aggregate amortization expense for future fiscal years will be amortized over a remaining weighted-average life of 10.2 years as follows: | ||||||||||||||
(In thousands) | Estimated | |||||||||||||
Aggregate | ||||||||||||||
Amortization | ||||||||||||||
Expense | ||||||||||||||
2014 | $ | 8,556 | ||||||||||||
2015 | 6,924 | |||||||||||||
2016 | 6,538 | |||||||||||||
2017 | 5,553 | |||||||||||||
2018 | 3,429 | |||||||||||||
Thereafter | 17,399 | |||||||||||||
$ | 48,399 | |||||||||||||
The Company has excluded $0.6 million of amortization expense related to in-process research and development from the table above, as it was uncertain as of December 28, 2013 when the technology will be completed and when the amortization will begin. |
INTEREST_AND_OTHER_EXPENSE_NET
INTEREST AND OTHER EXPENSE, NET | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
INTEREST AND OTHER EXPENSE, NET | ' | ||||||||||
INTEREST AND OTHER EXPENSE, NET | ' | ||||||||||
NOTE 6 INTEREST AND OTHER EXPENSE, NET | |||||||||||
Interest and other expense, net, was as follows: | |||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Interest and dividend income | $ | 221 | $ | 269 | $ | 565 | |||||
Interest expense | (5,464 | ) | (8,183 | ) | (10,598 | ) | |||||
Bank and portfolio asset management fees | (830 | ) | (708 | ) | (779 | ) | |||||
Derivative gains (losses) | 709 | 565 | (132 | ) | |||||||
Other, net | (1,126 | ) | (502 | ) | 394 | ||||||
$ | (6,490 | ) | $ | (8,559 | ) | $ | (10,550 | ) | |||
Interest expense included amortization of the debt discount related to the Company’s convertible subordinated notes of $12 thousand and $3.9 million for 2012 and 2011, respectively. |
STOCK_INCENTIVE_PLANS_AND_STOC
STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION | ' | |||||||||||
STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION | ' | |||||||||||
NOTE 7 STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION | ||||||||||||
Stock-Based Benefit Plans | ||||||||||||
In March 2011, the Company’s Board of Directors adopted the 2011 Stock Incentive Plan (2011 Plan) subject to approval of its stockholders, which was received in May 2011. The primary purpose of the 2011 Plan is to enhance the Company’s ability to attract, motivate and retain the services of qualified employees, officers and directors, consultants and other service providers upon whose judgment, initiative and efforts the successful conduct and development of the Company’s business largely depends. | ||||||||||||
The 2011 Plan authorizes the Company to grant up to 6,000,000 shares of common stock. This number of shares is subject to adjustments as to the number and kind of shares in the event of stock splits, stock dividends or certain other similar changes in the capital structure of the Company. Upon approval of the 2011 Plan by the Company’s stockholders, the Company’s 2006 Performance-Based Stock Incentive Plan was terminated for purposes of future grants, and only the 6,000,000 shares authorized for issuance under the 2011 Plan remained available for future grants. | ||||||||||||
The 2011 Plan permits the grant of stock appreciation rights, restricted stock, restricted stock units, incentive stock options and non-qualified stock options. For purposes of calculating the total number of shares that may be issued under the 2011 Plan, the 2011 Plan provides that “full value” awards shall be counted against the share limit to a greater extent than “appreciation” awards. Stock options and stock appreciation rights, which are “appreciation” awards, shall be counted against the share limit under the 2011 Plan as one (1) share for each share of common stock subject to such award. Restricted stock and restricted stock units, which are “full value” awards, shall be counted against the share limit under the 2011 Plan as one and seven tenths (1.7) shares for each share of common stock subject to such award. | ||||||||||||
Any stock options or stock appreciation rights granted under the 2011 Plan will have exercise prices or base values not less than the fair market value of the Company’s common stock on the date of grant and terms of not more than seven years. The vesting of substantially all awards granted to directors under the 2011 Plan occurs over a period of one year. The vesting of substantially all awards granted to officers and employees under the 2011 Plan occurs over a period of three years, and the vesting of substantially all restricted stock unit awards is also conditioned upon the achievement of performance thresholds established by the Compensation Committee of the Company’s Board of Directors. Currently, such performance thresholds relate to the fiscal year in which the award is granted, and if and to the extent that such performance thresholds are met, the awards vest in equal one-third (1/3) annual installments. All awards are subject to forfeiture if employment or other service terminates prior to the vesting of the awards. | ||||||||||||
The Company maintains an Employee Stock Purchase Plan (Purchase Plan) to provide employees of the Company with an opportunity to purchase common stock through payroll deductions. The Purchase Plan allows employees to purchase common stock in any quarterly offering period at 95% of the fair market value of the stock on the last day of the offering period. | ||||||||||||
Stock-Based Compensation Expense | ||||||||||||
ASC 718 requires the Company to recognize compensation expense related to the fair value of its stock-based awards. The Company estimates the fair value of stock options and stock appreciation rights at the date of grant using a Black-Scholes-Merton option-pricing model. The weighted average fair value and underlying assumptions for all stock appreciation rights are set forth in the table below. No stock options were granted during the periods presented. | ||||||||||||
Year Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Fair value | $ | 6.61 | $ | 7.91 | $ | 7.75 | ||||||
Expected annual volatility | 56.26 | % | 57.51 | % | 54.08 | % | ||||||
Risk-free interest rate | 0.85 | % | 0.78 | % | 1.59 | % | ||||||
Expected term (years) | 5 | 4.4 | 4.5 | |||||||||
Annualized expected dividend yield | — | — | — | |||||||||
The total stock-based compensation expense included in the Company’s consolidated statements of operations and comprehensive income (loss) was as follows: | ||||||||||||
Year Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Cost of sales | $ | 938 | $ | 693 | $ | 488 | ||||||
Selling, general and administrative expenses | 7,142 | 6,740 | 5,029 | |||||||||
Research and development expense | 1,093 | 936 | 684 | |||||||||
$ | 9,173 | $ | 8,369 | $ | 6,201 | |||||||
As required by ASC 718, the Company estimates the expected future forfeitures of stock options, stock appreciation rights and restricted stock units and recognizes compensation expense for only those equity awards expected to vest, excluding the expected future forfeitures. If actual forfeitures differ from the Company’s estimates, the amount of compensation expense recognized for the applicable period is cumulatively adjusted. The Company assumed forfeiture rates of 12.5%, 12.5% and 15.4% in recognizing compensation expense for 2013, 2012 and 2011, respectively. | ||||||||||||
At December 28, 2013, the total compensation cost related to unvested stock-based awards granted to employees, officers and directors under the Company’s stock-based benefit plans that had not yet been recognized was $15.8 million, net of estimated forfeitures. This future compensation expense will be amortized, using the straight-line attribution method over a weighted-average period of 1.9 years. The actual compensation expense that the Company will recognize in the future related to stock-based awards outstanding at December 28, 2013 will be adjusted for subsequent forfeitures. All performance conditions applicable to stock-based awards outstanding at December 28, 2013 have been met. | ||||||||||||
Stock-Based Award Activity | ||||||||||||
The following table summarizes stock option activity for the year ended December 28, 2013: | ||||||||||||
Weighted | ||||||||||||
Weighted | Average | Aggregate | ||||||||||
Number of | Average | Remaining | Intrinsic | |||||||||
Options | Exercise | Contractual | Value | |||||||||
(In thousands) | Price | Life (Years) | (In thousands) | |||||||||
Outstanding at December 29, 2012 | 1,010 | $ | 13.56 | |||||||||
Exercised | (553 | ) | $ | 13.58 | ||||||||
Expired (cancelled post-vesting) | (23 | ) | $ | 13.64 | ||||||||
Outstanding at December 28, 2013 | 434 | $ | 13.53 | 1 | $ | 2,033 | ||||||
Vested and expected to vest at December 28, 2013 | 434 | $ | 13.53 | 1 | $ | 2,033 | ||||||
Exercisable at December 28, 2013 | 434 | $ | 13.53 | 1 | $ | 2,033 | ||||||
The intrinsic value of options exercised during fiscal years 2013, 2012 and 2011 totaled $1.3 million, $1.0 million and $0.9 million, respectively. The intrinsic value of options exercised is calculated as the difference between the market price on the date of exercise and the exercise price, multiplied by the number of options exercised. | ||||||||||||
The following table summarizes the Company’s stock appreciation rights activity for the year ended December 28, 2013: | ||||||||||||
Weighted | ||||||||||||
Weighted | Average | Aggregate | ||||||||||
Number of | Average | Remaining | Intrinsic | |||||||||
Shares | Exercise | Contractual | Value | |||||||||
(In thousands) | Price | Life (Years) | (In thousands) | |||||||||
Outstanding at December 29, 2012 | 1,550 | $ | 11.16 | |||||||||
Granted | 655 | $ | 13.77 | |||||||||
Exercised | (213 | ) | $ | 6.46 | ||||||||
Forfeited (cancelled pre-vesting) | (49 | ) | $ | 15.99 | ||||||||
Expired (cancelled post-vesting) | (21 | ) | $ | 15.77 | ||||||||
Outstanding at December 28, 2013 | 1,922 | $ | 12.4 | 4.6 | $ | 11,176 | ||||||
Vested and expected to vest at December 28, 2013 | 1,809 | $ | 12.29 | 4.6 | $ | 10,730 | ||||||
Exercisable at December 28, 2013 | 958 | $ | 9.91 | 3.2 | $ | 7,960 | ||||||
The intrinsic value of stock appreciation rights exercised during fiscal years 2013, 2012 and 2011 totaled $2.0 million, $1.3 million and $1.1 million, respectively. The intrinsic value of stock appreciation rights exercised is calculated as the difference between the market price on the date of exercise and the base value, multiplied by the number of stock appreciation rights exercised. | ||||||||||||
The grant date fair value of stock appreciation rights that vested during fiscal years 2013, 2012 and 2011 totaled $2.3 million, $1.7 million and $1.1 million, respectively. | ||||||||||||
The following table summarizes the Company’s restricted stock unit activity for the year ended December 28, 2013: | ||||||||||||
Weighted | ||||||||||||
Number of | Average | |||||||||||
Shares | Grant Date | |||||||||||
(In thousands) | Fair Value | |||||||||||
Outstanding at December 29, 2012 | 785 | $ | 16.28 | |||||||||
Granted | 729 | $ | 13.77 | |||||||||
Vested | (391 | ) | $ | 15.6 | ||||||||
Forfeited | (49 | ) | $ | 15.99 | ||||||||
Outstanding at December 28, 2013 | 1,074 | $ | 14.83 | |||||||||
At December 28, 2013, the Company had reserved 5,687,439 shares of common stock for future issuance under its stock incentive plans, which included 2,258,444 shares that were reserved for the future grant of stock-based awards under the 2011 Plan, and had reserved 1,982,503 shares of common stock for future issuance under the Purchase Plan. |
DEBT_AND_LINES_OF_CREDIT
DEBT AND LINES OF CREDIT | 12 Months Ended | |||||||||
Dec. 28, 2013 | ||||||||||
DEBT AND LINES OF CREDIT | ' | |||||||||
DEBT AND LINES OF CREDIT | ' | |||||||||
NOTE 8 DEBT AND LINES OF CREDIT | ||||||||||
Short-Term Debt | ||||||||||
Total short-term debt was as follows: | ||||||||||
Interest | December 28, | December 29, | ||||||||
(In thousands) | Rate(s) | 2013 | 2012 | |||||||
Japanese revolving lines of credit, no expiration date | 1.16 | % | $ | 666 | $ | 5,231 | ||||
Japanese receivables financing facilities, no expiration date | 1.475 | % | 615 | 415 | ||||||
Current portion of long-term debt | 3,580 | 27,339 | ||||||||
Total short-term borrowings | $ | 4,861 | $ | 32,985 | ||||||
Short-Term Lines of Credit and Loans | ||||||||||
At December 28, 2013, the Company had various revolving lines of credit and agreements with Japanese banks denominated in yen under which it sells trade notes receivable with recourse. The revolving lines of credit with Japanese banks allow the Company to borrow up to $1.6 million (based on the currency exchange rate at December 28, 2013). The agreements to sell receivables allow the Company to sell up to $5.2 million of receivables (based on the currency exchange rate at December 28, 2013). The effective interest rates and the amounts outstanding under these lines of credit and agreements at December 28, 2013 are presented in the table above. Such amounts are included in short-term borrowings in the accompanying consolidated balance sheets. | ||||||||||
Japanese Bonds | ||||||||||
In June 2011, the Company issued 200 million Japanese yen in private placement bonds through a Japanese bank. These bonds bear interest at a rate of 0.62% per year, payable in cash semiannually in arrears on June 30 and December 31 of each year. The bonds are included in the current portion of long-term debt in short-term borrowings in the accompanying consolidated balance sheet as of December 28, 2013. | ||||||||||
Convertible Notes | ||||||||||
In February 2007, the Company issued $175 million in convertible subordinated notes, which matured on February 15, 2012, at which time the then remaining outstanding principal amount of the notes was repaid. Interest cost on the convertible subordinated notes consisted of the following components: | ||||||||||
Year Ended | ||||||||||
December 29, | December 31, | |||||||||
(In thousands) | 2012 | 2011 | ||||||||
Contractual interest | $ | 39 | $ | 2,941 | ||||||
Amortization of debt discount | 12 | 3,891 | ||||||||
Interest cost on convertible subordinated notes | $ | 51 | $ | 6,832 | ||||||
Long-Term Debt | ||||||||||
Total long-term debt was as follows: | ||||||||||
Interest | December 28, | December 29, | ||||||||
(In thousands) | Rate(s) | 2013 | 2012 | |||||||
U.S. term loan | $ | — | $ | 171,125 | ||||||
U.S. revolving line of credit, maturing July 2018 | 1.94% | 83,000 | — | |||||||
Israeli loans, maturing through October 2015 | 2.97%-3.28% | 2,110 | 3,591 | |||||||
Japanese private placement bonds, maturing June 2014 | 0.62% | 1,902 | 2,325 | |||||||
Japanese loans, maturing through June 2016 | 1.25%-1.30% | 214 | 1,056 | |||||||
Total long-term debt | 87,226 | 178,097 | ||||||||
Current portion of long-term debt | 3,580 | 27,339 | ||||||||
Total long-term debt, less current portion | $ | 83,646 | $ | 150,758 | ||||||
Secured Credit Facility | ||||||||||
In October 2011, the Company entered into a credit agreement with certain lenders. Such credit agreement and the related security agreement provided for a senior secured credit facility consisting of a $185 million term loan and a $65 million revolving line of credit, each with a term of five years. | ||||||||||
On July 18, 2013, the Company entered into a new credit agreement with certain lenders (New Credit Agreement), which replaced the Company’s prior credit agreement. The New Credit Agreement consists of a senior secured revolving credit facility of $275 million with a term of five years (New Credit Facility). The New Credit Agreement also provides the Company with the option to increase the aggregate principal amount of loans in the form of additional revolving loans or a separate tranche of term loans, in an aggregate amount that does not exceed $50 million, in each case subject to certain terms and conditions contained in the New Credit Agreement. Concurrently with the closing of the New Credit Agreement, the Company terminated the prior credit agreement after repaying the entire outstanding principal amount of $152.6 million and all accrued interest and fees thereon, utilizing $120.0 million borrowed under the New Credit Facility together with a portion of the Company’s then-existing cash balances. Upon terminating the prior credit agreement, the Company recorded a loss on extinguishment of debt of $3.4 million, to write off the remaining deferred debt issuance costs relating to the prior credit agreement. | ||||||||||
At December 28, 2013, the outstanding balance under the New Credit Facility was $83.0 million. The interest rate per annum applicable to amounts outstanding under the New Credit Facility is, at the Company’s option, either (a) the base rate as defined in the New Credit Agreement (Base Rate) plus an applicable margin, or (b) the Eurodollar Rate as defined in the New Credit Agreement (Eurodollar Rate) plus an applicable margin. A commitment fee is payable on the unused portion of the New Credit Facility. The margins over the Base Rate and Eurodollar Rate applicable to the loans outstanding under the New Credit Facility, and the commitment fee, are adjusted periodically based on the consolidated leverage ratio of the Company, as calculated pursuant to the New Credit Agreement. The maximum applicable margins are 1.25% per annum for Base Rate loans and 2.25% per annum for Eurodollar Rate loans, and the minimum applicable margins are 0.5% per annum for Base Rate loans and 1.5% per annum for Eurodollar Rate loans. The maximum commitment fee is 0.40% per annum, and the minimum commitment fee is 0.25% per annum. As of December 28, 2013, the interest rate per annum applicable to amounts outstanding under the New Credit Facility was 1.94%, and the commitment fee on the unused portion of the New Credit Facility was 0.30%. | ||||||||||
The Company’s obligations under the New Credit Agreement are secured by a lien on substantially all of the assets of Newport Corporation and certain of its U.S. subsidiaries, which are guarantors under the New Credit Agreement, as well as by a pledge of certain shares of international subsidiaries of Newport Corporation. | ||||||||||
Other Loans | ||||||||||
As part of the acquisition of Ophir, the Company assumed certain loans with Israeli and Japanese banks. The effective interest rates and the principal amounts outstanding under these loans at December 28, 2013 are shown in the table above. The loans in Japan are generally unsecured, and the loans in Israel are generally secured by pledges of and liens on certain of Ophir’s assets. | ||||||||||
Maturities of the Company’s debt obligations as of December 28, 2013 were as follows: | ||||||||||
(In thousands) | ||||||||||
2014 | $ | 4,861 | ||||||||
2015 | 627 | |||||||||
2016 | 19 | |||||||||
2017 | — | |||||||||
2018 | 83,000 | |||||||||
Thereafter | — | |||||||||
$ | 88,507 | |||||||||
NET_INCOME_LOSS_PER_SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
NET INCOME (LOSS) PER SHARE | ' | ||||||||||
NET INCOME (LOSS) PER SHARE | ' | ||||||||||
NOTE 9 NET INCOME (LOSS) PER SHARE | |||||||||||
The following table sets forth the numerator and denominator used in the computation of net income (loss) per share: | |||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands, except per share data) | 2013 | 2012 | 2011 | ||||||||
Net income (loss) attributable to Newport Corporation | $ | 15,601 | $ | (89,423 | ) | $ | 79,708 | ||||
Shares: | |||||||||||
Weighted average shares outstanding - basic | 39,010 | 38,133 | 37,407 | ||||||||
Dilutive potential common shares, using treasury stock method | 548 | — | 1,266 | ||||||||
Weighted average shares outstanding - diluted | 39,558 | 38,133 | 38,673 | ||||||||
Net income (loss) per share attributable to Newport Corporation: | |||||||||||
Basic | $ | 0.4 | $ | (2.35 | ) | $ | 2.13 | ||||
Diluted | $ | 0.39 | $ | (2.35 | ) | $ | 2.06 | ||||
For 2013, 2012 and 2011, 1.3 million, 1.7 million and 1.1 million stock options and/or stock appreciation rights, respectively, were excluded from the computations of diluted net income (loss) per share, as their exercise prices (or base values) exceeded the average market price of the Company’s common stock during such periods, and their inclusion would have been antidilutive. For 2012 and 2011, 0.6 million and 0.3 million restricted stock units, respectively, were excluded from the computations of diluted net income (loss) per share, as the amount of unrecognized future compensation expense associated with these restricted stock units would have resulted in assumed proceeds in excess of the amount required to repurchase the underlying shares under the treasury stock method, and, therefore, their inclusion would have been antidilutive. For 2012, an additional 0.7 million common stock equivalents have been excluded from the denominator for purposes of computing diluted net loss per share, as their inclusion would be antidilutive due to the Company incurring a net loss. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||
NOTE 10 COMMITMENTS AND CONTINGENCIES | |||||||||||
Facility Leases | |||||||||||
The Company leases certain of its manufacturing and office facilities and equipment under non-cancelable leases, certain of which contain renewal options. In addition to the base rent, the Company is generally required to pay insurance, real estate taxes and other operating expenses relating to such facilities. In some cases, base rent increases during the term of the lease based on a predetermined schedule. The Company recognizes rent expense on a straight-line basis over the life of the lease for leases containing stated rent escalations. | |||||||||||
Future minimum rental commitments under the terms of these leases at December 28, 2013 were as follows: | |||||||||||
Capital | Operating | Total | |||||||||
(In thousands) | Leases | Leases | Obligations | ||||||||
Payments Due By Period: | |||||||||||
2014 | $ | 184 | $ | 10,370 | $ | 10,554 | |||||
2015 | 183 | 8,639 | 8,822 | ||||||||
2016 | 182 | 7,321 | 7,503 | ||||||||
2017 | 181 | 6,908 | 7,089 | ||||||||
2018 | 3 | 6,978 | 6,981 | ||||||||
Thereafter | — | 14,948 | 14,948 | ||||||||
Total minimum payments | 733 | $ | 55,164 | $ | 55,897 | ||||||
Less amount representing interest | (109 | ) | |||||||||
Present value of obligation | $ | 624 | |||||||||
Rental expense, net of sublease income, under all leases totaled $11.5 million, $10.6 million and $9.1 million for 2013, 2012 and 2011, respectively. | |||||||||||
Environmental Reserves | |||||||||||
The Company’s former Mountain View, California facility is an EPA-designated Superfund site and is subject to a cleanup and abatement order from the California Regional Water Quality Control Board. Spectra-Physics, along with several other entities with facilities located near the Mountain View, California facility, have been identified as Responsible Parties with respect to this Superfund site, due to releases of hazardous substances during the 1960s and 1970s. The site is mature, and investigations and remediation efforts have been ongoing for approximately 30 years. Spectra-Physics and the other Responsible Parties have entered into a cost-sharing agreement covering the costs of remediating the off-site groundwater contamination, pursuant to which Spectra-Physics is responsible for 30% of the remediation costs. | |||||||||||
At the time of the Company’s acquisition of Spectra-Physics, it established a reserve to cover known costs relating to this site for which it was liable, the balance of which was immaterial at December 28, 2013 and December 29, 2012. In connection with the acquisition, Thermo Fisher Scientific, Inc., formerly known as Thermo Electron Corporation (Spectra-Physics’ former parent) has agreed, subject to certain conditions, to indemnify the Company for certain costs of remediation that are incurred and third party claims that are made prior to July 16, 2014 relating to this site. Following the expiration of this indemnity, the Company will be responsible for any remediation costs. However, the Company is currently unaware of any material future expenses associated with this site for which the Company will be liable. | |||||||||||
Indemnification Obligations | |||||||||||
The Company from time to time enters into certain types of agreements that contingently require the Company to indemnify the other parties against certain claims. These contracts primarily include: (i) contracts for the development and/or sale of products, under which the Company customarily agrees to hold the other party harmless against losses arising from bodily injury or damage to personal property caused by the Company’s personnel or products or infringement by the Company’s products of third-party intellectual property rights; (ii) certain real estate leases, under which the Company may be required to indemnify property owners for environmental and other liabilities, and other claims arising from the Company’s use of the applicable premises; (iii) divestiture agreements, under which the Company may provide customary indemnifications to purchasers of the Company’s businesses or assets; and (iv) certain agreements with the Company’s officers, directors and employees, under which the Company may be required to indemnify such persons for liabilities incurred by them in the course of their employment. | |||||||||||
In each of these circumstances, payment by the Company is typically subject to the other party making a claim to and cooperating with the Company pursuant to the procedures specified in the particular contract. This usually allows the Company to challenge the other party’s claims and to control the defense or settlement of any third-party claims brought against the other party. The Company’s obligations under these agreements are typically not limited in terms of amount or duration. In some instances, the Company may have recourse against third parties and/or insurance covering certain payments made by the Company. | |||||||||||
It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, the Company has not been obligated to make significant payments for these obligations, and no liabilities have been recorded for these obligations as of December 28, 2013 and December 29, 2012. | |||||||||||
Other Contingencies | |||||||||||
In November 2010, two former employees of Spectra-Physics, Linda Pope and Yvette Flores, together with their children, Tia Pope Hudson and Mark Flores, filed a complaint against Spectra-Physics and the Company in the Superior Court for Santa Clara County, California. Plaintiffs alleged that between 1975 and 1985 they were harmed by exposure to toxic substances at Spectra-Physics, and that Spectra-Physics failed to warn them about dangers associated with the substances and failed to implement adequate safeguards to protect them from the substances. | |||||||||||
In June 2013, the court granted the Company’s motion for summary judgment of Yvette Flores’ claims on the grounds that they were barred by the exclusivity of the State of California’s workers’ compensation system. In July 2013, the Company reached an agreement with Mark Flores to settle his claims, which were then the only claims remaining in the suit. In September 2013, the Company entered into a Settlement Agreement and Release with Mark Flores documenting the specifics of the settlement. The settlement amounts were paid in 2013 from coverage by applicable insurance policies. As such, this settlement did not have any net impact on the Company’s income, cash flows or stockholders’ equity. An Order of Dismissal was filed in December 2013 with respect to Mark Flores’ claims, ending his case against the Company and Spectra-Physics. | |||||||||||
In November 2012, the Company reached an agreement with Linda Pope and Tia Pope Hudson to settle all claims related to their portion of the suit. The settlement amount was paid in February 2014 from coverage by applicable insurance policies. As such, this settlement did not have any net impact on the Company’s income, cash flows or stockholders’ equity. The remainder of the case against the Company and Spectra-Physics was dismissed with prejudice in February 2014. | |||||||||||
From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. Except as described above, the Company currently is not a party to any other legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
NOTE 11 INCOME TAXES | |||||||||||
United States and foreign income (loss) before income taxes were as follows: | |||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
United States | $ | 2,377 | $ | 2,360 | $ | 43,091 | |||||
Foreign | 19,059 | (86,831 | ) | 7,417 | |||||||
$ | 21,436 | $ | (84,471 | ) | $ | 50,508 | |||||
The income tax provision (benefit) based on income (loss) were as follows: | |||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Current: | |||||||||||
Federal | $ | 4,973 | $ | 1,275 | $ | (3,252 | ) | ||||
State | 546 | (7 | ) | 1,204 | |||||||
Foreign | 4,662 | 2,929 | 2,523 | ||||||||
10,181 | 4,197 | 475 | |||||||||
Deferred: | |||||||||||
Federal | (5,249 | ) | 6,980 | (23,425 | ) | ||||||
State | 283 | (3,085 | ) | (6,760 | ) | ||||||
Foreign | 483 | (2,613 | ) | 556 | |||||||
(4,483 | ) | 1,282 | (29,629 | ) | |||||||
$ | 5,698 | $ | 5,479 | $ | (29,154 | ) | |||||
The income tax provision (benefit) that was based on income (loss) differs from the amount obtained by applying the statutory tax rate as follows: | |||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Income tax provision (benefit) at statutory rate | $ | 7,503 | $ | (29,565 | ) | $ | 17,678 | ||||
Increase (decrease) in taxes resulting from: | |||||||||||
Impairment or reduction of goodwill | — | 23,730 | 1 | ||||||||
Non-deductible expenses | 490 | 153 | 1,700 | ||||||||
State tax, net of federal benefit | 429 | (442 | ) | 1,043 | |||||||
Foreign rate variance | (1,135 | ) | 14,096 | (1,683 | ) | ||||||
Income tax credits | (1,636 | ) | (204 | ) | (1,590 | ) | |||||
Valuation allowance | (873 | ) | (19 | ) | (41,715 | ) | |||||
Tax contingency | (114 | ) | 292 | (1,808 | ) | ||||||
Other, including deferred tax adjustment, net | 1,034 | (2,562 | ) | (2,780 | ) | ||||||
$ | 5,698 | $ | 5,479 | $ | (29,154 | ) | |||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred taxes were as follows: | |||||||||||
December 28, | December 29, | ||||||||||
(In thousands) | 2013 | 2012 | |||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 2,438 | $ | 4,711 | |||||||
Accruals and reserves not currently deductible | 18,340 | 19,199 | |||||||||
Tax credit carryforwards | 1,769 | 1,633 | |||||||||
Other basis differences | 9,029 | 7,511 | |||||||||
Total gross deferred tax assets | 31,576 | 33,054 | |||||||||
Valuation allowance | (2,262 | ) | (3,135 | ) | |||||||
29,314 | 29,919 | ||||||||||
Deferred tax liabilities: | |||||||||||
Intangible assets | 14,025 | 17,011 | |||||||||
Property and equipment | 3,402 | 4,446 | |||||||||
Other basis differences | 463 | 368 | |||||||||
Total deferred tax liabilities | 17,890 | 21,825 | |||||||||
Net deferred tax assets | $ | 11,424 | $ | 8,094 | |||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxable income in carryback years, the scheduled reversal of deferred tax liabilities (exclusive of deferred tax liabilities related to indefinite lived intangibles), tax planning strategies and projected future taxable income in making this assessment. | |||||||||||
The Company had previously established a valuation allowance against substantially all domestic and certain foreign deferred tax assets due to the uncertainty as to the timing and ultimate realization of those assets. During the fourth quarter of 2011, the Company achieved a cumulative three-year income position in the United States. Management considered this position along with other available evidence, both positive and negative, and determined, as of December 31, 2011, that it was more likely than not that the net deferred tax assets (exclusive of deferred tax liabilities related to indefinite lived intangibles) would be realized, with the exception of domestic capital losses, domestic unrealized losses, foreign net operating loss carryforwards and other miscellaneous foreign deferred tax assets. Accordingly, the Company recorded a reduction in the valuation allowance of $41.7 million. During 2012, the Company released $1.8 million of its valuation allowance related to certain domestic deferred tax assets due to the recovery of certain investments and capital loss carryovers. Also during 2012, after evaluating all positive and negative facts, the Company determined that it was not more likely than not that the Company would realize certain deferred tax assets associated with its former Ophir Division. Therefore, the Company recorded a valuation allowance of $1.9 million, substantially all of which was applicable to the Optical Metrology Ltd. subsidiary based in Jerusalem, Israel. In 2013, the Company reduced its valuation allowance by $0.9 million, due primarily to Optical Metrology Ltd. qualifying for the beneficial tax rate of 0% on a portion of its earnings, which necessitated an adjustment to the underlying deferred tax assets and a corresponding adjustment to the valuation allowance. | |||||||||||
As of December 28, 2013, the Company could not determine that it is more likely than not that deferred tax assets related to domestic unrealized losses, certain domestic and foreign net operating loss carryforwards and other miscellaneous foreign deferred tax assets would be realized. Therefore, the Company has maintained a valuation allowance of $2.3 million against its domestic and certain foreign subsidiaries’ deferred tax assets. | |||||||||||
At December 28, 2013, the Company had gross state and foreign net operating loss carryforwards totaling approximately $32.7 million and $10.2 million, respectively. State net operating loss carryforwards begin to expire in 2015, Romania net operating losses begin to expire in 2019, and a majority of the remaining foreign net operating loss carryforwards may be carried forward indefinitely. | |||||||||||
At December 28, 2013, the Company had federal and state income tax credit carryforwards of $19.8 million and $11.2 million, respectively. Certain unused federal carryforwards will begin to expire in 2016 and will continue to expire in future years if not fully utilized. The state carryforwards do not expire. | |||||||||||
On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations will require a tax accounting method change to be filed with the Internal Revenue Service, however, the Company does not anticipate the impact of these changes to be material to its financial position or results of operations. | |||||||||||
The Company recognizes excess tax benefits associated with share-based compensation to stockholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, the Company follows the with-and-without approach excluding any indirect effects of the excess tax deductions. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to the Company. During the year ended December 28, 2013, the Company realized approximately $4.0 million of such excess tax benefits and, accordingly, recorded a corresponding increase in capital in excess of par value. As of December 28, 2013, the Company had $17.5 million of unrealized excess tax benefits associated with share-based compensation. These tax benefits, if and when realized, will be accounted for as an increase in capital in excess of par value rather than as a reduction in the provision for income taxes. | |||||||||||
If the Company has an “ownership change” as defined under the Internal Revenue Code, utilization of its net operating loss and tax credit carryforwards may be subject to an annual limitation against taxable income in future periods. | |||||||||||
Undistributed earnings of the Company’s historic and acquired foreign subsidiaries for which no federal or state liability has been recorded totaled $32.9 million and $22.6 million at December 28, 2013 and December 29, 2012, respectively. These undistributed earnings are considered to be indefinitely reinvested. Accordingly, no provision for federal and state income taxes or foreign withholding taxes has been provided on such undistributed earnings. Determination of the potential amount of unrecognized deferred federal and state income tax liability and foreign withholding taxes is not practicable because of the complexities associated with this hypothetical calculation; however, unrecognized foreign tax credits would be available to reduce some portion of the federal liability. | |||||||||||
As of December 29, 2012, the Company had $15.2 million of gross unrecognized tax benefits and a total of $12.4 million of net unrecognized tax benefits, which, if recognized, would affect the effective tax rate. Interest and penalties related to unrecognized tax benefits were not significant as of December 29, 2012. | |||||||||||
As of December 28, 2013, the Company had $17.4 million of gross unrecognized tax benefits and a total of $14.4 million of net unrecognized tax benefits, which, if recognized, would affect the effective tax rate. Interest and penalties related to unrecognized tax benefits were not significant as of December 28, 2013. The Company does not anticipate that its unrecognized tax benefits will change significantly over the next twelve months. | |||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: | |||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Unrecognized tax benefits at beginning of year | $ | 15,173 | $ | 17,735 | $ | 9,953 | |||||
Gross increases for tax positions of prior years | 832 | — | 8,325 | ||||||||
Gross decrease for tax positions of prior years | — | (2,611 | ) | — | |||||||
Gross increases for tax positions of current year | 2,509 | 1,111 | 1,437 | ||||||||
Current year acquisitions | — | — | 903 | ||||||||
Settlements | — | (1,006 | ) | (2,370 | ) | ||||||
Lapse of statute of limitations | (1,085 | ) | (56 | ) | (513 | ) | |||||
Unrecognized tax benefits at end of year | $ | 17,429 | $ | 15,173 | $ | 17,735 | |||||
The Company and its subsidiaries file income tax returns in the United States and various state, local and foreign jurisdictions. The tax years that remain subject to examination by significant jurisdiction are as follows: | |||||||||||
U.S. Federal | 2010 through current periods | ||||||||||
California | 2009 through current periods | ||||||||||
France | 2011 through current periods | ||||||||||
Germany | 2010 through current periods | ||||||||||
Japan | 2007 through current periods | ||||||||||
Israel | 2008 through current periods | ||||||||||
However, the use of domestic net operating losses in future periods could trigger a review of attributes and other tax matters in years that are not otherwise subject to examination, beginning with the 2002 tax year. |
STOCKHOLDERS_EQUITY_TRANSACTIO
STOCKHOLDERS' EQUITY TRANSACTIONS | 12 Months Ended |
Dec. 28, 2013 | |
STOCKHOLDERS' EQUITY TRANSACTIONS | ' |
STOCKHOLDERS' EQUITY TRANSACTIONS | ' |
NOTE 12 STOCKHOLDERS’ EQUITY TRANSACTIONS | |
In May 2008, the Board of Directors approved a share repurchase program, authorizing the purchase of up to 4.0 million shares of the Company’s common stock. Purchases may be made under this program from time to time in the open market or in privately negotiated transactions, and the timing and amount of the purchases will be based on factors including the Company’s share price, cash balances, expected cash requirements and general business and market conditions. No purchases were made under this program during 2013, 2012 or 2011. As of December 28, 2013, a total of approximately 3.9 million shares remained available for repurchase under the program. The terms of the New Credit Agreement permit the Company to purchase shares under the repurchase program, subject to certain conditions and limitations. | |
In 2013, 2012 and 2011, the Company cancelled 0.1 million, 0.2 million and 0.2 million shares of common stock underlying restricted stock units, respectively, in payment by employees of taxes owed upon the vesting of restricted stock units issued to them under the Company’s stock incentive plans. The value of these shares totaled $2.0 million, $3.1 million and $3.4 million, respectively, at the time they were cancelled. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
NOTE 13 FAIR VALUE MEASUREMENTS | ||||||||||||||
ASC 820-10 requires that for any assets and liabilities stated at fair value on a recurring basis in the Company’s financial statements, the fair value of such assets and liabilities be measured based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Level 1 asset and liability values are derived from quoted prices in active markets for identical assets and liabilities and Level 2 asset and liability values are derived from quoted prices in inactive markets. The Company’s assets measured at fair value on a recurring basis are categorized in the table below based upon their level within the fair value hierarchy as of December 28, 2013. | ||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||
(In thousands) | December 28, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||
Description | Active Markets for | Observable Inputs | Unobservable | |||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||
(Level 1) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||
Restricted Cash | $ | 2,305 | $ | 2,305 | $ | — | $ | — | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 8,052 | 8,052 | — | — | ||||||||||
Certificates of deposit | 167 | — | 167 | — | ||||||||||
8,219 | 8,052 | 167 | — | |||||||||||
Derivatives: | ||||||||||||||
Option contracts | 269 | — | 269 | — | ||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 11,489 | — | 11,489 | — | ||||||||||
Group insurance contracts | 6,895 | — | 6,895 | — | ||||||||||
18,384 | — | 18,384 | — | |||||||||||
$ | 29,177 | $ | 10,357 | $ | 18,820 | $ | — | |||||||
Liabilities: | ||||||||||||||
Derivatives: | ||||||||||||||
Option contracts | $ | 10 | $ | — | $ | 10 | $ | — | ||||||
The Company’s assets measured at fair value on a recurring basis are categorized in the table below based upon their level within the fair value hierarchy as of December 29, 2012. | ||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||
(In thousands) | December 29, 2012 | Quoted Prices in | Significant Other | Significant | ||||||||||
Description | Active Markets for | Observable Inputs | Unobservable | |||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||
(Level 1) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||
Restricted Cash | $ | 3,107 | $ | 3,107 | $ | — | $ | — | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 4,244 | 4,244 | — | — | ||||||||||
Certificates of deposit | 4,254 | — | 4,254 | — | ||||||||||
8,498 | 4,244 | 4,254 | — | |||||||||||
Derivatives: | ||||||||||||||
Option contracts | 755 | — | 755 | — | ||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 10,690 | — | 10,690 | — | ||||||||||
Group insurance contracts | 6,615 | — | 6,615 | — | ||||||||||
17,305 | — | 17,305 | — | |||||||||||
$ | 29,665 | $ | 7,351 | $ | 22,314 | $ | — | |||||||
Liabilities: | ||||||||||||||
Derivatives: | ||||||||||||||
Option contracts | $ | 202 | $ | — | $ | 202 | $ | — | ||||||
The Company’s other financial instruments include short-term borrowings and long-term debt. The fair value of these financial instruments was estimated based on the current rates for similar issues or on the current rates offered to the Company for debt of similar remaining maturities. The estimated fair values of these financial instruments were as follows: | ||||||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||||
Carrying | Carrying | |||||||||||||
(In thousands) | Amount | Fair Value | Amount | Fair Value | ||||||||||
Short-term borrowings | $ | 4,861 | $ | 4,851 | $ | 32,985 | $ | 32,020 | ||||||
Long-term debt | $ | 83,646 | $ | 82,658 | $ | 150,758 | $ | 145,404 |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||
NOTE 14 EMPLOYEE BENEFIT PLANS | ||||||||||||
Defined Contribution Plan | ||||||||||||
The Company sponsors certain 401(k) defined contribution plans. Generally, all U.S. employees are eligible to participate in and contribute to one of these plans. The Company makes certain matching contributions to these plans based on participating employees’ contributions to the plans and their total compensation. Expense recognized for the plans totaled $4.8 million, $4.8 million and $4.9 million for 2013, 2012 and 2011, respectively. | ||||||||||||
Defined Benefit Pension Plans | ||||||||||||
The Company has defined benefit pension plans covering substantially all full-time employees in France, Germany, Israel and Japan. In addition, the Company has certain pension liabilities relating to former employees of the Company in the United Kingdom. The German plan is unfunded, as permitted under the plan and applicable laws. For financial reporting purposes, the calculation of net periodic pension costs was based upon a number of actuarial assumptions, including a discount rate for plan obligations, an assumed rate of return on pension plan assets and an assumed rate of compensation increase for employees covered by the plan. All of these assumptions were based upon management’s judgment, considering all known trends and uncertainties. Actual results that differ from these assumptions would impact future expense recognition and the cash funding requirements of the Company’s pension plans. | ||||||||||||
December 28, 2013, December 29, 2012 and December 31, 2011 serve as the measurement dates for the respective amounts shown below. Net periodic benefit costs for the plans in aggregate included the following components: | ||||||||||||
Year Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Service cost | $ | 2,692 | $ | 2,807 | $ | 1,178 | ||||||
Interest cost on projected benefit obligations | 653 | 746 | 832 | |||||||||
Expected return on plan assets | (207 | ) | (228 | ) | (299 | ) | ||||||
Amortization of net loss | 240 | 47 | 239 | |||||||||
$ | 3,378 | $ | 3,372 | $ | 1,950 | |||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) included the following components: | ||||||||||||
Year Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Net actuarial (gain) loss | $ | (609 | ) | $ | 2,290 | $ | (312 | ) | ||||
Amortization of net loss | (240 | ) | (47 | ) | (239 | ) | ||||||
Total recognized in other comprehensive income (loss) | (849 | ) | 2,243 | (551 | ) | |||||||
Total recognized in net periodic benefit costs and other comprehensive income (loss) | $ | 2,529 | $ | 5,615 | $ | 1,399 | ||||||
The changes in projected benefit obligations and plan assets, as well as the ending balance sheet amounts for the Company’s defined benefit plans, were as follows: | ||||||||||||
December 28, | December 29, | |||||||||||
(In thousands) | 2013 | 2012 | ||||||||||
Change in projected benefit obligations: | ||||||||||||
Projected benefit obligations, beginning of year | $ | 37,184 | $ | 33,312 | ||||||||
Service cost | 2,692 | 2,807 | ||||||||||
Interest cost | 653 | 746 | ||||||||||
Actuarial (gain) loss | (1,197 | ) | 3,000 | |||||||||
Benefits paid | (2,837 | ) | (2,612 | ) | ||||||||
Currency translation adjustments | (69 | ) | (69 | ) | ||||||||
Projected benefit obligations, end of year | 36,426 | 37,184 | ||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets, beginning of year | 9,420 | 10,020 | ||||||||||
Company contributions | 461 | 576 | ||||||||||
Gain on plan assets | 48 | 141 | ||||||||||
Benefits paid | (209 | ) | (1,156 | ) | ||||||||
Currency translation adjustments | (522 | ) | (161 | ) | ||||||||
Fair value of plan assets, end of year | 9,198 | 9,420 | ||||||||||
Funded status | $ | (27,228 | ) | $ | (27,764 | ) | ||||||
Amounts recognized in the balance sheet: | ||||||||||||
Pension assets | $ | 252 | $ | 320 | ||||||||
Current portion of pension liabilities | (387 | ) | (320 | ) | ||||||||
Pension liabilities | (27,093 | ) | (27,764 | ) | ||||||||
Net amount recognized | $ | (27,228 | ) | $ | (27,764 | ) | ||||||
Amounts recognized in accumulated comprehensive loss: | ||||||||||||
Net actuarial loss | $ | 3,539 | $ | 4,637 | ||||||||
Income tax impact | (1,140 | ) | (1,389 | ) | ||||||||
Accumulated other comprehensive loss | $ | 2,399 | $ | 3,248 | ||||||||
At December 28, 2013 and December 29, 2012, the United Kingdom plan was overfunded and had assets of $3.3 million and $3.3 million, respectively, and a projected benefit obligation of $3.1 million and $3.0 million, respectively. The Company’s Israeli plans account for the deferred vested benefits using the shut-down method of accounting, which resulted in assets of $11.5 million and $10.7 million and vested benefit obligations of $12.8 million and $12.2 million being reported on a gross basis as of December 28, 2013 and December 29, 2012, respectively. Under the shut-down method, the liability is calculated as if it was payable as of each balance sheet date, on an undiscounted basis. All other plans were underfunded and had combined assets of $5.9 million and $6.1 million at December 28, 2013 and December 29, 2012, respectively, and combined projected benefit obligations of $20.6 million and $21.9 million at December 28, 2013 and December 29, 2012, respectively. | ||||||||||||
At December 28, 2013, the aggregate projected benefit obligations, accumulated benefit obligations and fair value of plan assets were $36.4 million, $33.7 million and $9.2 million, respectively. At December 29, 2012, the aggregate projected benefit obligations, accumulated benefit obligations and fair value of plan assets were $37.2 million, $33.8 million and $9.4 million, respectively. | ||||||||||||
At December 28, 2013, the estimated benefit payments for the next 10 years were as follows: | ||||||||||||
Estimated | ||||||||||||
Benefit | ||||||||||||
(In thousands) | Payments | |||||||||||
2014 | $ | 1,671 | ||||||||||
2015 | 1,309 | |||||||||||
2016 | 2,597 | |||||||||||
2017 | 1,213 | |||||||||||
2018 | 1,177 | |||||||||||
2019-2024 | 22,939 | |||||||||||
$ | 30,906 | |||||||||||
The Company expects to contribute $1.8 million to the plans during 2014. | ||||||||||||
The weighted-average rates used to determine the net periodic benefit costs were as follows: | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Discount rate | 1.87 | % | 2.29 | % | 2.44 | % | ||||||
Rate of increase in salary levels | 1.67 | % | 2.38 | % | 2.25 | % | ||||||
Expected long-term rate of return on assets | 1.89 | % | 1.59 | % | 1.59 | % | ||||||
The weighted-average rates used to determine projected benefit obligations for the respective periods were as follows: | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Discount rate | 1.96 | % | 1.87 | % | ||||||||
Rate of increase in salary levels | 1.58 | % | 1.67 | % | ||||||||
Expected long-term rate of return on assets | 1.83 | % | 1.89 | % | ||||||||
In determining the expected long-term rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes, and economic and other indicators of future performance. | ||||||||||||
Plan assets were held in the following categories as a percentage of total plan assets: | ||||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||
(Amounts in thousands) | Amount | Percentage | Amount | Percentage | ||||||||
Cash | $ | 575 | 6 | % | $ | 2,249 | 24 | % | ||||
Bonds | 1,256 | 13 | 1,410 | 15 | ||||||||
Equity securities | 1,429 | 16 | — | — | ||||||||
Insurance contracts | 5,938 | 65 | 5,761 | 61 | ||||||||
$ | 9,198 | 100 | % | $ | 9,420 | 100 | % | |||||
In general, the Company’s asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk while providing adequate liquidity to meet immediate and future benefit payment requirements. In Japan, assets are primarily invested in pooled funds of insurance companies. The expected long-term rate of return on these assets is 1.5%, which is based on the general yield environment for high quality instruments in Japan. The United Kingdom pension plan invests in a combination of equity and bond funds. The allocation mix is designed to minimize risk while providing a rate of return that will provide asset growth which will be sufficient to cover expected liabilities. The expected long-term rate of return on these assets is 2.7%, which is based on bank base rates. In France, assets are invested in group insurance contracts and the expected long-term rate of return on these assets is 1.2%, which is based on the expected return on the underlying assets. The Company does not invest in derivative instruments, although the pooled funds it owns may use such instruments in a risk management capacity. | ||||||||||||
Other Pension-Related Assets | ||||||||||||
As of December 28, 2013 and December 29, 2012, the Company had assets with an aggregate market value of $6.9 million and $6.6 million, respectively, which it has set aside in connection with its German pension plans. These assets are invested in group insurance contracts through the insurance companies administering these plans, in accordance with applicable pension laws. The German contracts have a guaranteed minimum rate of return ranging from 2.25% to 4.0%, depending on the contract. Because these assets were not separate legal assets of the pension plan, they were not included in the Company’s plan assets shown above. However, the Company has designated such assets to pay pension benefits. Such assets are included in investments and other assets in the accompanying consolidated balance sheets. | ||||||||||||
The Company’s Israeli plans are accounted for using the shut-down method of accounting. As a result, plan assets are reported separate from the net underfunded pension liability and were not included in the Company’s plan assets shown above. The Israeli assets are invested in government regulated pension funds, which invest primarily in bonds. As of December 28, 2013 and December 29, 2012, the aggregate market value of these assets was $11.5 million and $10.7 million, respectively. Such assets are included in investments and other assets in the accompanying consolidated balance sheets. | ||||||||||||
Fair Value Measurements | ||||||||||||
The carrying amount of cash and cash equivalents approximates fair value due to the short-term maturities of these instruments. The fair value of bond funds is based on quoted prices provided by the fund issuer and the fair value of insurance contracts is based on quoted prices provided by the insurance provider. Because the bond funds and insurance contracts are not actively traded but are valued using observable inputs, they fall within Level 2 of the fair value hierarchy. Equity securities are included within an equity fund and the fair value is based on quoted prices provided by the fund issuer. Although the individual equity securities are actively traded, the fund is not publicly traded, therefore, these assets fall within Level 2 of the fair value hierarchy. |
BUSINESS_SEGMENT_INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
BUSINESS SEGMENT INFORMATION | ' | |||||||||||||
BUSINESS SEGMENT INFORMATION | ' | |||||||||||||
NOTE 15 BUSINESS SEGMENT INFORMATION | ||||||||||||||
The operating segments reported herein are the segments of the Company for which separate financial information was available and for which operating results were evaluated regularly by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker, in deciding how to allocate resources and in assessing performance, during the periods covered by the accompanying financial statements. | ||||||||||||||
As discussed above, prior to 2013, the Company developed, manufactured and marketed its products within three distinct business segments: its Lasers Division, its PPT Division and its Ophir Division. In January 2013, the Company reorganized its operations to create three new operating segments: its Photonics Group, its Lasers Group and its Optics Group. As a result, the Company has revised its reportable segments to correspond with its new operating segments, reflecting the manner in which it now assesses performance and allocates resources. The results of operations of the Company’s reportable segments for 2012 and 2011 reported below have been restated to conform to the new reportable segments. | ||||||||||||||
The Photonics Group products are sold to end-user customers in a wide range of markets, including the microelectronics, scientific research, defense and security, life and health sciences and industrial markets. The products sold by this group include photonics instruments and systems, precision positioning systems and subsystems, vibration isolation systems and subsystems, optical components for research applications, optical hardware and three-dimensional non-contact measurement sensors and equipment. | ||||||||||||||
The Lasers Group offers a broad array of laser technology products and services to OEM and end-user customers across a wide range of applications and markets, including the microelectronics, scientific research, life and health sciences and industrial markets. The lasers and laser-based systems include ultrafast lasers and amplifiers, diode-pumped solid-state lasers, high-energy pulsed lasers, tunable lasers, fiber lasers and gas lasers. | ||||||||||||||
The Optics Group products and systems are sold to end-user customers in a wide range of markets, including the microelectronics, defense and security, life and health sciences and industrial markets. The products sold by this group include precision optics and lens assemblies, optical components and opto-mechanical subassemblies. In addition, this group sells subsystems to customers that integrate these products into larger systems, particularly for microelectronics and life and health sciences applications. | ||||||||||||||
The Company measured income reported for each operating segment, which included only those costs that were directly attributable to the operations of that segment, and excluded unallocated operating expenses, such as corporate overhead and intangible asset amortization, certain gains and losses, interest and other expense, net, and income taxes. | ||||||||||||||
Selected segment financial information for the Company’s reportable segments for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 were as follows: | ||||||||||||||
Photonics | Lasers | Optics | ||||||||||||
(In thousands) | Division | Division | Division | Total | ||||||||||
Year ended December 28, 2013 | ||||||||||||||
Sales to external customers | $ | 230,303 | $ | 165,788 | $ | 163,963 | $ | 560,054 | ||||||
Depreciation and amortization | $ | 4,035 | $ | 3,534 | $ | 8,236 | $ | 15,805 | ||||||
Segment income | $ | 49,984 | $ | 18,746 | $ | 11,748 | $ | 80,478 | ||||||
Segment assets | $ | 200,584 | $ | 111,651 | $ | 123,781 | $ | 436,016 | ||||||
Expenditures for long-lived assets | $ | 3,561 | $ | 2,341 | $ | 6,328 | $ | 12,230 | ||||||
Year ended December 29, 2012 | ||||||||||||||
Sales to external customers | $ | 237,601 | $ | 181,426 | $ | 176,319 | $ | 595,346 | ||||||
Depreciation and amortization | $ | 3,973 | $ | 4,192 | $ | 8,159 | $ | 16,324 | ||||||
Segment income (loss) | $ | (39,191 | ) | $ | 20,508 | $ | (14,848 | ) | $ | (33,531 | ) | |||
Segment assets | $ | 202,881 | $ | 114,357 | $ | 134,986 | $ | 452,224 | ||||||
Expenditures for long-lived assets | $ | 1,540 | $ | 2,381 | $ | 4,055 | $ | 7,976 | ||||||
Year ended December 31, 2011 | ||||||||||||||
Sales to external customers | $ | 204,341 | $ | 191,528 | $ | 149,185 | $ | 545,054 | ||||||
Depreciation and amortization | $ | 3,215 | $ | 3,632 | $ | 4,395 | $ | 11,242 | ||||||
Segment income | $ | 45,715 | $ | 19,150 | $ | 30,554 | $ | 95,419 | ||||||
Segment assets | $ | 263,685 | $ | 124,231 | $ | 245,255 | $ | 633,171 | ||||||
Expenditures for long-lived assets | $ | 2,436 | $ | 2,423 | $ | 4,431 | $ | 9,290 | ||||||
The segment losses reported for the Company’s Photonics Group and Optics Group for 2012 included impairment charges of $91.6 million and $39.3 million, respectively, related to goodwill, intangible assets and other long-lived assets (see Note 5). | ||||||||||||||
The following reconciles segment income to consolidated income (loss) before income taxes: | ||||||||||||||
Year Ended | ||||||||||||||
December 28, | December 29, | December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||
Segment income (loss) | $ | 80,478 | $ | (33,531 | ) | $ | 95,419 | |||||||
Unallocated operating expenses | (44,472 | ) | (48,629 | ) | (41,596 | ) | ||||||||
Gain (loss) on sale of assets | (4,725 | ) | 6,248 | — | ||||||||||
Foreign currency translation gain from sale of subsidiary | — | — | 7,198 | |||||||||||
Recovery of note receivable and other amounts related to previously discontinued operations, net | — | — | 619 | |||||||||||
Loss on extinguishment of debt | (3,355 | ) | — | (582 | ) | |||||||||
Interest and other expense, net | (6,490 | ) | (8,559 | ) | (10,550 | ) | ||||||||
Consolidated income (loss) before income taxes | $ | 21,436 | $ | (84,471 | ) | $ | 50,508 | |||||||
The following reconciles segment depreciation and amortization, total assets and expenditures to consolidated amounts: | ||||||||||||||
As of or for the Year Ended | ||||||||||||||
December 28, | December 29, | December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||
Depreciation and amortization for reportable segments | $ | 15,805 | $ | 16,324 | $ | 11,242 | ||||||||
Depreciation and amortization for assets held at corporate | 14,673 | 23,308 | 12,757 | |||||||||||
Total depreciation and amortization | $ | 30,478 | $ | 39,632 | $ | 23,999 | ||||||||
Assets of reportable segments | $ | 436,016 | $ | 452,224 | $ | 633,171 | ||||||||
Assets held at corporate, primarily cash and cash equivalents, restricted cash and marketable securities | 129,213 | 168,737 | 130,898 | |||||||||||
Total assets | $ | 565,229 | $ | 620,961 | $ | 764,069 | ||||||||
Expenditures for long-lived assets for reportable segments | $ | 12,230 | $ | 7,976 | $ | 9,290 | ||||||||
Expenditures for long-lived assets held at corporate | 4,089 | 3,553 | 4,223 | |||||||||||
Total expenditures for long-lived assets | $ | 16,319 | $ | 11,529 | $ | 13,513 | ||||||||
Selected financial information for the Company’s operations by geographic area is presented in the table below. The table below reflects the Company’s net sales by geographic region. Sales are attributed to each location based on the customer’s address to which the product is shipped. | ||||||||||||||
As of or for the Year Ended | ||||||||||||||
December 28, | December 29, | December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||
Geographic area net sales: | ||||||||||||||
United States | $ | 218,298 | $ | 243,674 | $ | 240,736 | ||||||||
Germany | 75,119 | 73,383 | 61,580 | |||||||||||
Other European countries | 81,178 | 78,428 | 72,957 | |||||||||||
Japan | 51,761 | 62,947 | 52,971 | |||||||||||
Other Pacific Rim countries | 95,779 | 94,313 | 80,731 | |||||||||||
Rest of world | 37,919 | 42,601 | 36,079 | |||||||||||
$ | 560,054 | $ | 595,346 | $ | 545,054 | |||||||||
Geographic area long-lived assets: | ||||||||||||||
United States | $ | 38,328 | $ | 42,710 | ||||||||||
Israel | 24,667 | 26,690 | ||||||||||||
Europe | 14,589 | 9,902 | ||||||||||||
Rest of world | 2,932 | 3,541 | ||||||||||||
$ | 80,516 | $ | 82,843 | |||||||||||
FOREIGN_CURRENCY_TRANSLATION_G
FOREIGN CURRENCY TRANSLATION GAIN | 12 Months Ended |
Dec. 28, 2013 | |
FOREIGN CURRENCY TRANSLATION GAIN | ' |
FOREIGN CURRENCY TRANSLATION GAIN | ' |
NOTE 16 FOREIGN CURRENCY TRANSLATION GAIN | |
In 2001, the Company established a financing structure through which it loaned its French subsidiary €16.6 million. During the first quarter of 2011, such financing structure was eliminated and, as a result, $7.2 million that had previously been included in other comprehensive income was recognized as a foreign currency translation gain. |
GAIN_ON_SALE_OF_INVESTMENTS
GAIN ON SALE OF INVESTMENTS | 12 Months Ended |
Dec. 28, 2013 | |
GAIN ON SALE OF INVESTMENTS | ' |
GAIN ON SALE OF INVESTMENTS | ' |
NOTE 17 GAIN ON SALE OF INVESTMENTS | |
The Company holds equity interests in privately-held corporations, which were accounted for using the cost method. During previous years, the Company had reduced the carrying value of these investments to zero due to the corporations’ poor financial condition. In 2012, one of these corporations was acquired in a merger transaction, and the Company received $5.3 million for its interest as a result of the acquisition, and another of these corporations redeemed its shares from the Company for $1.0 million. |
SUPPLEMENTARY_QUARTERLY_CONSOL
SUPPLEMENTARY QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
SUPPLEMENTARY QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | ' | |||||||||||||
SUPPLEMENTARY QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | ' | |||||||||||||
NOTE 18 SUPPLEMENTARY QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
(In thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | ||||||||||
Year Ended December 28, 2013: | ||||||||||||||
Net sales | $ | 132,607 | $ | 134,234 | $ | 139,037 | $ | 154,176 | ||||||
Gross profit | $ | 55,132 | $ | 57,237 | $ | 59,731 | $ | 65,613 | ||||||
Net income attibutable to Newport Corporation | $ | 2,746 | $ | 2,662 | $ | 437 | $ | 9,756 | ||||||
Basic income per share attibutable to Newport Corporation (1) | $ | 0.07 | $ | 0.07 | $ | 0.01 | $ | 0.25 | ||||||
Diluted income per share attibutable to Newport Corporation (1) | $ | 0.07 | $ | 0.07 | $ | 0.01 | $ | 0.24 | ||||||
First | Second | Third | Fourth | |||||||||||
(In thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | ||||||||||
Year Ended December 29, 2012: | ||||||||||||||
Net sales | $ | 157,167 | $ | 153,655 | $ | 142,881 | $ | 141,643 | ||||||
Gross profit | $ | 68,069 | $ | 66,883 | $ | 62,808 | $ | 62,828 | ||||||
Net income (loss) attibutable to Newport Corporation | $ | 6,592 | $ | 9,154 | $ | 7,636 | $ | (112,805 | ) | |||||
Basic income (loss) per share attibutable to Newport Corporation (1) | $ | 0.17 | $ | 0.24 | $ | 0.2 | $ | (2.96 | ) | |||||
Diluted income (loss) per share attibutable to Newport Corporation (1) | $ | 0.17 | $ | 0.24 | $ | 0.2 | $ | (2.96 | ) | |||||
(1) Per share data was computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share information may not equal the annual income per share. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||
Schedule II Valuation and Qualifying Accounts | ' | |||||||||||||||||||
Schedule II Valuation and Qualifying Accounts | ' | |||||||||||||||||||
Schedule II | ||||||||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||||||
(In thousands) | Balance at | Additions | Charged to | Write-Offs | Other | Balance at | ||||||||||||||
Beginning | Charged to | Other | Charges | End of | ||||||||||||||||
of Period | Costs and | Accounts | Add/Deduct | Period | ||||||||||||||||
Expenses | -1 | |||||||||||||||||||
Year Ended December 28, 2013: | ||||||||||||||||||||
Deducted from asset accounts: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,548 | $ | 404 | $ | — | $ | (493 | ) | $ | (18 | ) | $ | 1,441 | ||||||
Year Ended December 29, 2012: | ||||||||||||||||||||
Deducted from asset accounts: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,532 | $ | 390 | $ | — | $ | (1,120 | ) | $ | (254 | ) | $ | 1,548 | ||||||
Year Ended December 31, 2011: | ||||||||||||||||||||
Deducted from asset accounts: | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 2,587 | $ | 358 | $ | — | $ | (957 | ) | $ | 544 | $ | 2,532 | |||||||
(1) Amounts reflect the effect of exchange rate changes on translating valuation accounts of foreign subsidiaries in accordance with ASC 830, Foreign Currency Matters and certain reclassifications between balance sheet accounts. |
ORGANIZATION_AND_SUMMARY_OF_SI1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 28, 2013 | |||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
Basis of Presentation | ' | ||
Basis of Presentation | |||
The accompanying financial statements include the accounts of Newport Corporation and its wholly owned and majority owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | |||
The Company uses a 52/53-week accounting fiscal year ending on the Saturday closest to December 31, and its fiscal quarters end on the Saturday that is generally closest to the end of each corresponding calendar quarter. Fiscal year 2013 (referred to herein as 2013) ended on December 28, 2013, fiscal year 2012 (referred to herein as 2012) ended December 29, 2012 and fiscal year 2011 (referred to herein as 2011) ended December 31, 2011. Each of these fiscal years consisted of 52 weeks. | |||
Foreign Currency Translation | ' | ||
Foreign Currency Translation | |||
Assets and liabilities for the Company’s international operations are translated into U.S. dollars using current rates of exchange in effect at the balance sheet dates. Items of income and expense for the Company’s international operations are translated using the monthly average exchange rates in effect for the period in which the items occur. The functional currency for all of the Company’s international operations is the local currency, except for Israel and Canada, for which the functional currency is the U.S. dollar. Where the local currency is the functional currency, the resulting translation gains and losses are included as a component of stockholders’ equity in accumulated other comprehensive income (loss). Where the U.S. dollar is the functional currency, the resulting translation gains and losses are included in the results of operations. Realized foreign currency transaction gains and losses for all entities are included in the results of operations. | |||
Derivative Instruments | ' | ||
Derivative Instruments | |||
The Company recognizes all derivative financial instruments in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. The Company does not engage in currency speculation; however, the Company uses forward exchange contracts and foreign currency option contracts to mitigate the risks associated with certain foreign currency transactions entered into in the ordinary course of business, primarily foreign currency denominated receivables and payables. The Company has not elected hedge accounting treatment and, accordingly, changes in fair values are reported in the consolidated statements of operations and comprehensive income (loss). The forward exchange contracts and foreign currency option contracts generally result in the Company paying or receiving net amounts, based on the change in foreign currency rates between inception of the contracts and maturity of the contracts. If the counterparties to the contracts (typically highly rated banks) do not fulfill their obligations to deliver the contracted currencies, the Company could be at risk for any currency related fluctuations. Changes in fair values and transaction gains and losses are included in interest and other expense, net in the results of operations. Such amounts were not material for 2013, 2012 or 2011. | |||
Cash and Cash Equivalents and Marketable Securities | ' | ||
Cash and Cash Equivalents and Marketable Securities | |||
The Company considers cash and highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Investments with original maturities exceeding three months at the date of purchase are classified as marketable securities. All marketable securities are classified as available for sale and are recorded at market value using the specific identification method; unrealized gains and losses are reflected in accumulated other comprehensive income (loss) unless the Company determines there is an other-than-temporary impairment, in which case the loss is recorded in the consolidated statements of operations and comprehensive income (loss). | |||
Restricted Cash | ' | ||
Restricted Cash | |||
The Company has certain agreements, which require it to maintain specified cash balances as collateral. Such amounts have been classified as restricted cash. | |||
Accounts Receivable | ' | ||
Accounts Receivable | |||
The Company records reserves for specific receivables deemed to be at risk for collection, as well as a reserve based on its historical collections experience. The Company estimates the collectability of customer receivables on an ongoing basis by reviewing past due invoices and assessing the current creditworthiness of each customer. A considerable amount of judgment is required in assessing the ultimate realization of these receivables. | |||
Concentrations of Credit Risk | ' | ||
Concentrations of Credit Risk | |||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, foreign exchange contracts and accounts receivable. The Company maintains cash and cash equivalents with and purchases its foreign exchange contracts from major financial institutions and performs periodic evaluations of the relative credit standing of these financial institutions in order to limit the amount of credit exposure with any one institution. Substantially all of the Company’s marketable securities are currently invested in Euro Over Night Index Average (Eonia) securities or certificates of deposit. The Company’s senior financial management and the Company’s Board of Directors periodically review the marketable securities to determine the appropriate investment strategy. | |||
The Company’s customers are concentrated in the scientific research, defense and security, microelectronics, life and health sciences and industrial markets, and their ability to pay may be influenced by the prevailing macroeconomic conditions present in these markets. Receivables from the Company’s customers are generally unsecured. To reduce the overall risk of collection, the Company performs ongoing evaluations of its customers’ financial condition. For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, no customer accounted for 10% or more of the Company’s net sales or 10% or more of the Company’s gross accounts receivable as of the end of such year. | |||
Pension Plans | ' | ||
Pension Plans | |||
Several of the Company’s non-U.S. subsidiaries have defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. For financial reporting purposes, the calculation of net periodic pension costs is based upon a number of actuarial assumptions, including a discount rate for plan obligations, an assumed rate of return on pension plan assets and an assumed rate of compensation increase for employees covered by the plan. All of these assumptions are based upon management’s judgment, considering all known trends and uncertainties. | |||
The Company accounts for its Israeli pension plans using the shut-down method of accounting. Under the shut-down method, the liability is calculated as if it was payable as of each balance sheet date, on an undiscounted basis. In addition, the assets and liabilities of the plans are accounted for on a gross basis. | |||
Inventories | ' | ||
Inventories | |||
Inventories are stated at the lower of cost (determined on a first-in, first-out (FIFO) basis) or fair market value and include materials, labor and manufacturing overhead. Inventories that are expected to be sold within one year are classified as current inventories and are included in inventories, and inventories that the Company expects to hold for longer than one year are included in investments and other assets. The Company writes down excess and obsolete inventory to net realizable value. Once the Company writes down the carrying value of inventory, a new cost basis is established, and the Company does not increase the newly established cost basis based on subsequent changes in facts and circumstances. In assessing the ultimate realization of inventories, the Company makes judgments as to future demand requirements and compares those requirements with the current or committed inventory levels. The Company records any amounts required to reduce the carrying value of inventory to net realizable value as a charge to cost of sales. | |||
Property and Equipment | ' | ||
Property and Equipment | |||
Property and equipment are stated at cost, less accumulated depreciation. Depreciation expense includes amortization of assets under capital leases. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets as follows: | |||
Buildings and improvements | 3 to 40 years | ||
Machinery and equipment | 2 to 20 years | ||
Office equipment | 3 to 10 years | ||
Leasehold improvements are amortized over the shorter of their estimated useful life or the remaining lease term. | |||
Capitalized Software Costs | ' | ||
Capitalized Software Costs | |||
All direct costs related to developing internal use software during the application development stage are capitalized and amortized using the straight-line method over the estimated useful lives of the assets. Costs incurred in the preliminary project stage, maintenance costs and training costs are expensed as incurred. | |||
Intangible Assets, including Goodwill | ' | ||
Intangible Assets, including Goodwill | |||
Developed technology is amortized on a straight line basis over 10 to 20 years, depending on the life of the product technology. Intangible assets related to customer relationships are primarily amortized over a period of up to 10 years on an accelerated basis. In-process research and development is amortized on a straight line basis over the product’s estimated useful life upon completion of the technology. Other intangible assets include acquired backlog, product trademarks and trade names, non-competition agreements and defensible assets. With the exception of product trademarks and trade names, such assets are amortized on a straight line basis over a period of three months to 10 years, depending on the asset. Trademarks and trade names associated with products are amortized on a straight line basis over the estimated remaining life of the product technology, which ranges from 10 to 20 years. Trademarks and trade names associated with a business have indefinite lives and are not amortized. | |||
Goodwill represents the excess of the purchase price of the net assets of acquired entities over the fair value of such assets. Under Accounting Standards Codification (ASC) 350, Intangibles — Goodwill and Other, goodwill and other indefinite-lived intangible assets are not amortized but are tested for impairment at least annually or when circumstances exist that would indicate an impairment of such goodwill or other intangible assets. The Company performs the annual impairment test as of the beginning of the fourth quarter of each year. A two-step test is used to identify the potential impairment and to measure the amount of impairment, if any. The first step is based upon a comparison of the fair value of each of the Company’s reporting units, as defined, and the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill is considered not to be impaired; otherwise, step two is required. Under step two, the implied fair value of goodwill, calculated as the difference between the fair value of the reporting unit and the fair value of the net assets of the reporting unit, is compared with the carrying value of goodwill. The excess of the carrying value of goodwill over the implied fair value represents the amount impaired. | |||
The Company determines its reporting units by identifying those operating segments or components for which discrete financial information is available which is regularly reviewed by the management of that unit. For any acquisition, the Company allocates goodwill to the applicable reporting unit at the completion of the purchase price allocation through specific identification. | |||
Fair value of the Company’s reporting units is determined using a combination of a comparative company analysis and a discounted cash flow analysis. The comparative company analysis establishes fair value by applying market multiples to the Company’s revenue and earnings before interest, income taxes, depreciation and amortization. Such multiples are determined by comparing the Company’s reporting units with other publicly traded companies within the respective industries that have similar economic characteristics. In addition, a control premium is added to reflect the value an investor would pay to obtain a controlling interest, which is consistent with the median control premium for transactions in those industries in which the Company does business. The discounted cash flow analysis establishes fair value by estimating the present value of the projected future cash flows of each reporting unit and applying a terminal growth rate. The present value of estimated discounted future cash flows is determined using the Company’s estimates of revenue and costs for the reporting units, using a combination of historical results, industry data and competitor data, as well as appropriate discount rates. The discount rate is determined using a weighted-average cost of capital that incorporates market participant data and a risk premium applicable to each reporting unit. See Note 5 for an explanation of impairment charges recorded during 2012. There were no impairment charges in 2013 or 2011. | |||
Long-Lived Assets | ' | ||
Long-Lived Assets | |||
The Company assesses the impairment of long-lived assets, other than goodwill and other indefinite-lived intangible assets, to determine if their carrying value may not be recoverable. The determination of related estimated useful lives and whether or not these assets are impaired involves significant judgments, related primarily to the future profitability and/or future value of the assets. Changes in the Company’s strategic plan and/or other-than-temporary changes in market conditions could significantly impact these judgments and could require adjustments to recorded asset balances. Long-lived assets are evaluated for impairment at least annually, as well as whenever an event or change in circumstances has occurred that could have a significant adverse effect on the fair value of long-lived assets. In the fourth quarter of 2012, in connection with the Company’s annual evaluation of long-lived assets, it determined that certain assets of its former Ophir Division (which are now a part of the Company’s Photonics Group) were impaired. Accordingly, the Company recorded an impairment charge of $0.5 million related to fixed assets. There were no impairment charges during 2013 or 2011. | |||
Warranty | ' | ||
Warranty | |||
Unless otherwise stated in the Company’s product literature or in its agreements with customers, products sold by the Company’s Photonics and Optics Groups generally carry a one-year warranty from the original invoice date on all product materials and workmanship, other than filters and gratings products, which generally carry a 90-day warranty, and laser beam profilers and dental CAD/CAM scanners, which generally carry a two-year warranty. Products sold by the Photonics and Optics Groups to original equipment manufacturer (OEM) customers carry warranties generally ranging from 15 to 19 months. Products sold by the Company’s Lasers Group carry warranties that vary by product and product component, but generally range from 90 days to two years. In certain cases, such warranties for Lasers Group products are limited by either a set time period or a maximum amount of hourly usage of the product, whichever occurs first. Defective products will be either repaired or replaced, generally at the Company’s option, upon meeting certain criteria. The Company accrues a provision for the estimated costs that may be incurred for warranties relating to a product (based on historical experience) as a component of cost of sales. | |||
Environmental Reserves | ' | ||
Environmental Reserves | |||
The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures are discounted to their present value. Recoveries of environmental remediation costs from other parties are recognized as assets when their receipt is deemed probable. See Note 10 for additional information. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
The Company recognizes revenue after title to and risk of loss of products have passed to the customer, or delivery of the service has been completed, provided that persuasive evidence of an arrangement exists, the price is fixed or determinable and collectability is reasonably assured. Title to and risk of loss of products generally pass to the customer upon delivery, but in certain cases pass upon acceptance. The Company recognizes revenue and related costs for arrangements with multiple deliverables, such as equipment and installation, as each element is delivered or completed based upon its relative selling price, determined based upon the price that would be charged on a standalone basis. If a portion of the total contract price is not payable until installation is complete, the Company does not recognize such portion as revenue until completion of installation. Revenue for extended service contracts is recognized over the related contract periods. Revenue for programs involving design and development services and delivery of product prototypes and/or other deliverables is recognized upon the completion of specified milestones, or over the term of the program based upon the percentage of completion of the program, depending on the terms of the associated contract. Certain sales to international customers are made through third-party distributors and revenue is recognized upon the sale to the distributor. A discount below list price is generally provided at the time the product is sold to the distributor, and such discount is reflected as a reduction in net sales. Freight costs billed to customers are included in net sales, and freight costs incurred are included in selling, general and administrative expenses. Sales taxes collected from customers are recorded on a net basis and any amounts not yet remitted to tax authorities are included in accrued expenses and other current liabilities. | |||
Customers (including distributors) generally have 30 days from the original invoice date (generally 60 days for international customers) to return a standard catalog product purchase for exchange or credit. Catalog products must be returned in the original condition and meet certain other criteria. Custom, option-configured and certain other products as defined in the terms and conditions of sale cannot be returned without the Company’s consent. For certain products, the Company establishes a sales return reserve based on the historical product returns. | |||
Advertising | ' | ||
Advertising | |||
The Company expenses the costs of advertising as incurred, except for the costs of its product catalogs, which are accounted for as prepaid supplies until they are distributed to customers or are no longer expected to be used. Capitalized catalog costs were not material at December 28, 2013 and December 29, 2012. Advertising costs, including the costs of the Company’s participation at industry trade shows, totaled $4.2 million, $3.9 million and $4.2 million for 2013, 2012 and 2011, respectively. | |||
Shipping and Handling Costs | ' | ||
Shipping and Handling Costs | |||
The Company expenses the costs of shipping and handling as incurred. Shipping and handling costs of $4.7 million, $5.2 million and $5.0 million are included in selling, general and administrative expenses for 2013, 2012 and 2011, respectively. | |||
Research and Development | ' | ||
Research and Development | |||
All research and development costs are expensed as incurred. | |||
Non-Controlling Interests | ' | ||
Non-Controlling Interests | |||
In October 2011, the Company acquired Ophir Optronics Ltd. (Ophir), as discussed in Note 2. As of December 28, 2013, Ophir’s subsidiaries, Ophir Japan, Ltd. in Japan, Ophir Optronics GmbH in Germany, and Optical Metrology Ltd. in Israel, had non-controlling interest holders of 33.3%, 25% and 14.1%, respectively. Earnings (losses) attributable to the non-controlling interests are separately identified in the Company’s consolidated financial statements. | |||
During the first quarter of 2014, Ophir purchased all shares owned by the holders of the non-controlling interests in Optical Metrology Ltd for $0.9 million. | |||
Income Taxes | ' | ||
Income Taxes | |||
The Company utilizes the asset and liability method of accounting for income taxes. Deferred income taxes are recognized for the future tax consequences of temporary differences using enacted statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Temporary differences include the difference between the financial statement carrying amounts, and the tax bases of existing assets and liabilities as well as operating loss and tax credit carryforwards. In accordance with the provisions of ASC 740, a valuation allowance for deferred tax assets is recorded to the extent the Company cannot determine that the ultimate realization of the net deferred tax assets is more likely than not. | |||
The Company utilizes ASC 740-10-25, Income Taxes - Recognition, for the recognition, measurement and disclosure of uncertain tax positions. Under ASC 740-10-25, income tax positions must meet the more-likely-than-not threshold to be recognized in the financial statements. The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as income tax expense. | |||
Income (loss) per Share | ' | ||
Income (loss) per Share | |||
Basic income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted income per share is computed using the weighted-average number of shares of common stock outstanding during the period plus the dilutive effects of common stock equivalents (restricted stock units, stock options and stock appreciation rights) outstanding during the period, determined using the treasury stock method. Diluted loss per share excludes the antidilutive effects of common stock equivalents outstanding during the periods. | |||
Stock-Based Compensation | ' | ||
Stock-Based Compensation | |||
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation — Stock Compensation. Under the fair value recognition provision of ASC 718, stock-based compensation cost is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options and stock appreciation rights granted using the Black-Scholes-Merton option pricing model and a single option award approach. The fair value of restricted stock unit awards is based on the closing market price of the Company’s common stock on the date of grant. | |||
Determining the appropriate fair value of stock options and stock appreciation rights at the grant date requires significant judgment, including estimating the volatility of the Company’s common stock and expected term of the awards. The Company computes expected volatility based on historical volatility over the expected term. The expected term represents the period of time that stock options and stock appreciation rights are expected to be outstanding and is determined based on historical experience, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expected exercise behavior. | |||
A substantial portion of the Company’s restricted stock unit awards vest based upon the achievement of one or more financial performance thresholds established by the Compensation Committee of the Company’s Board of Directors. Currently, such performance thresholds relate to the fiscal year in which the award is granted, and if and to the extent that such performance thresholds are met, the awards vest in equal one-third (1/3) annual installments. Until the Company has determined that performance thresholds have been met, the amount of expense that the Company records relating to performance-based awards is estimated based on the likelihood of achieving the performance thresholds. The amount of expense recorded by the Company is also based on estimated forfeitures. The fair value of stock-based awards, adjusted for estimated forfeitures (and adjusted for estimated or actual achievement of performance thresholds in the case of awards having performance-based vesting conditions), is amortized using the straight-line attribution method over the requisite service period of the award, which is generally the vesting period. | |||
Use of Estimates | ' | ||
Use of Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates made in preparing the consolidated financial statements include (but are not limited to) those related to revenue recognition, the allowance for doubtful accounts, inventory reserves, warranty obligations, pension plans, asset impairment valuations, income tax valuations, and stock-based compensation expenses. | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires companies to disclose significant amounts that have been reclassified out of accumulated other comprehensive income. Amounts that are required to be reclassified in their entirety to net income must be disclosed either on the face of the income statement or in the notes to the financial statements. Amounts that are not required to be reclassified in their entirety to net income in the same reporting period must be disclosed by a cross reference to other disclosures that provide additional information regarding such amounts. ASU No. 2013-02 is effective for fiscal years and interim periods beginning after December 15, 2012. The adoption of ASU No. 2013-02 has not had a material impact on the Company’s financial position or results of operations. | |||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters: Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, which clarifies the guidance in Topics 810 and 830. Topic 810 requires companies to deconsolidate a subsidiary or derecognize a group of assets if the parent ceases to hold a controlling financial interest in that subsidiary or group of assets. Upon the loss of a controlling financial interest, the parent would recognize the cumulative translation adjustment in net income. The guidance in Topic 810 does not distinguish between a sale or transfer of an investment in a foreign entity and a sale or transfer of a subsidiary or group of assets within a foreign entity. Topic 830 requires the release of the cumulative translation adjustment into net income if a sale or transfer represented a complete or substantially complete liquidation of an investment in a foreign entity. ASU No. 2013-05 clarifies that companies that cease to have a controlling financial interest in a subsidiary or group of assets within a foreign subsidiary should release the cumulative translation adjustment into net income if the sale or transfer results in a complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. ASU No. 2013-05 has become effective for fiscal years beginning after December 15, 2013. The adoption of ASU No. 2013-05 has not had a material impact on the Company’s financial position or results of operations. | |||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides explicit guidance on the financial statement presentation of an unrecognized tax benefit. ASU No. 2013-11 requires unrecognized tax benefits to be presented as a reduction to a deferred tax asset, except that, if a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position, then the unrecognized tax benefit should be presented as a liability. ASU No. 2013-11 has become effective for fiscal years and interim periods beginning after December 15, 2013. The adoption of ASU No. 2013-11 has not had a material impact on the Company’s financial position or results of operations. |
ORGANIZATION_AND_SUMMARY_OF_SI2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Dec. 28, 2013 | |||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
Schedule of estimated useful lives of the assets | ' | ||
Buildings and improvements | 3 to 40 years | ||
Machinery and equipment | 2 to 20 years | ||
Office equipment | 3 to 10 years |
ACQUISITIONS_AND_DIVESTITURES_
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
2012 Acquisitions | ' | |||||||||||||
ACQUISITIONS AND DIVESTITURES | ' | |||||||||||||
Summary of the purchase price, assets acquired and liabilities assumed | ' | |||||||||||||
(In thousands) | ILX | Vistek | Total | |||||||||||
Business | ||||||||||||||
Assets acquired and liabilities assumed: | ||||||||||||||
Cash | $ | 44 | $ | — | $ | 44 | ||||||||
Accounts receivable | 1,224 | — | 1,224 | |||||||||||
Inventories | 861 | 81 | 942 | |||||||||||
Other assets | 587 | 26 | 613 | |||||||||||
Goodwill | 3,762 | 273 | 4,035 | |||||||||||
Developed technology | 2,800 | 1,200 | 4,000 | |||||||||||
Customer relationships | 1,100 | 900 | 2,000 | |||||||||||
Other intangible assets | 1,090 | 20 | 1,110 | |||||||||||
Deferred income taxes | (1,841 | ) | — | (1,841 | ) | |||||||||
Other liabilities | (644 | ) | — | (644 | ) | |||||||||
$ | 8,983 | $ | 2,500 | $ | 11,483 | |||||||||
2011 Acquisitions | ' | |||||||||||||
ACQUISITIONS AND DIVESTITURES | ' | |||||||||||||
Summary of the purchase price, assets acquired and liabilities assumed | ' | |||||||||||||
(In thousands) | Ophir | High Q | Opticoat | Total | ||||||||||
Assets acquired and liabilities assumed: | ||||||||||||||
Cash | $ | 23,233 | $ | 5,989 | $ | — | $ | 29,222 | ||||||
Accounts receivable | 18,732 | 1,494 | — | 20,226 | ||||||||||
Inventories | 30,370 | 7,829 | — | 38,199 | ||||||||||
Other current assets | 4,478 | 5,957 | — | 10,435 | ||||||||||
Goodwill | 66,524 | 6,745 | 1,302 | 74,571 | ||||||||||
Developed technology | 41,530 | 6,300 | 705 | 48,535 | ||||||||||
In-process research and development | 9,560 | — | — | 9,560 | ||||||||||
Customer relationships | 56,640 | 1,350 | 148 | 58,138 | ||||||||||
Other intangible assets | 13,970 | 4,170 | — | 18,140 | ||||||||||
Property and equipment | 41,652 | 1,436 | 917 | 44,005 | ||||||||||
Other noncurrent assets | 13,917 | 225 | — | 14,142 | ||||||||||
Short-term borrowings | (7,082 | ) | (10,699 | ) | — | (17,781 | ) | |||||||
Accounts payable | (7,756 | ) | (1,792 | ) | — | (9,548 | ) | |||||||
Other current liabilities | (17,562 | ) | (3,690 | ) | — | (21,252 | ) | |||||||
Long-term debt | (9,781 | ) | (4,161 | ) | — | (13,942 | ) | |||||||
Deferred income taxes | (23,292 | ) | (2,063 | ) | — | (25,355 | ) | |||||||
Other noncurrent liabilities | (10,973 | ) | (585 | ) | (137 | ) | (11,695 | ) | ||||||
Non-controlling interests | (2,076 | ) | — | — | (2,076 | ) | ||||||||
$ | 242,084 | $ | 18,505 | $ | 2,935 | $ | 263,524 |
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
MARKETABLE SECURITIES | ' | ||||||||||
Schedule of the Company's portfolio of marketable securities | ' | ||||||||||
December 28, | December 29, | ||||||||||
(In thousands) | 2013 | 2012 | |||||||||
Money market funds | $ | 8,052 | $ | 4,244 | |||||||
Certificates of deposit | 167 | 4,254 | |||||||||
$ | 8,219 | $ | 8,498 | ||||||||
Schedule of aggregate fair value of available for sale securities and aggregate amount of unrealized gains and losses | ' | ||||||||||
The aggregate fair value of available for sale securities and aggregate amount of unrealized gains and losses for available for sale securities at December 28, 2013 were as follows: | |||||||||||
Aggregate | Aggregate Amount of | ||||||||||
Unrealized | |||||||||||
(In thousands) | Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 8,052 | $ | 91 | $ | — | |||||
Certificates of deposit | 167 | — | — | ||||||||
$ | 8,219 | $ | 91 | $ | — | ||||||
The aggregate fair value of available for sale securities and the aggregate amount of unrealized gains and losses for available for sale securities at December 29, 2012 were as follows: | |||||||||||
Aggregate | Aggregate Amount of | ||||||||||
Unrealized | |||||||||||
(In thousands) | Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 4,244 | $ | 86 | $ | — | |||||
Certificates of deposit | 4,254 | — | — | ||||||||
$ | 8,498 | $ | 86 | $ | — | ||||||
Schedule of gross realized gains and losses on sales of available for sale securities | ' | ||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Gross realized gains | $ | — | $ | — | $ | 69 | |||||
Gross realized losses | — | — | |||||||||
$ | — | $ | — | $ | 69 |
SUPPLEMENTAL_BALANCE_SHEET_INF1
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | |||||||
Schedule of inventories | ' | |||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Raw materials and purchased parts | $ | 61,819 | $ | 65,766 | ||||
Work in process | 19,577 | 18,075 | ||||||
Finished goods | 21,987 | 24,887 | ||||||
$ | 103,383 | $ | 108,728 | |||||
Schedule of long-term inventories | ' | |||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Raw materials and purchased parts | $ | 1,850 | $ | 4,149 | ||||
Finished goods | 4,489 | 4,926 | ||||||
$ | 6,339 | $ | 9,075 | |||||
Schedule of property and equipment, net, including assets under capital leases | ' | |||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Land | $ | 3,372 | $ | 3,456 | ||||
Buildings | 11,177 | 10,377 | ||||||
Leasehold improvements | 37,512 | 37,591 | ||||||
Machinery and equipment | 96,410 | 86,816 | ||||||
Office equipment | 50,641 | 46,626 | ||||||
199,112 | 184,866 | |||||||
Less accumulated depreciation and amortization | (118,596 | ) | (102,023 | ) | ||||
$ | 80,516 | $ | 82,843 | |||||
Schedule of activity in accrued warranty obligations | ' | |||||||
Year Ended | ||||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Balance at beginning of year | $ | 3,528 | $ | 4,466 | ||||
Additions charged to cost of sales | 2,416 | 2,674 | ||||||
Additions from acquisitions | — | 21 | ||||||
Warranty claims | (2,659 | ) | (3,633 | ) | ||||
Balance at end of year | $ | 3,285 | $ | 3,528 | ||||
Schedule of accrued expenses and other current liabilities | ' | |||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Deferred revenue | $ | 13,609 | $ | 11,561 | ||||
Deferred lease liability | 5,448 | 5,445 | ||||||
Accrued and deferred taxes | 3,130 | 3,866 | ||||||
Short-term accrued warranty obligations | 3,093 | 3,421 | ||||||
Other | 10,061 | 10,403 | ||||||
$ | 35,341 | $ | 34,696 | |||||
Schedule of accumulated other comprehensive loss | ' | |||||||
December 28, | December 29, | |||||||
(In thousands) | 2013 | 2012 | ||||||
Cumulative foreign currency translation losses | $ | (2,296 | ) | $ | (4,569 | ) | ||
Unrecognized net pension losses, net of tax | (2,399 | ) | (3,248 | ) | ||||
Unrealized gains on marketable securities, net of tax | 1,076 | 868 | ||||||
$ | (3,619 | ) | $ | (6,949 | ) |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||
Schedule of changes in the carrying amount of goodwill | ' | |||||||||||||
Photonics | Lasers | Optics | ||||||||||||
(In thousands) | Group | Group | Group | Total | ||||||||||
Balance at December 31, 2011: | ||||||||||||||
Goodwill | $ | 96,004 | $ | 110,673 | $ | 41,144 | $ | 247,821 | ||||||
Accumulated impairment losses | — | (104,562 | ) | — | (104,562 | ) | ||||||||
96,004 | 6,111 | 41,144 | 143,259 | |||||||||||
Goodwill acquired | 2,825 | — | 1,211 | 4,035 | ||||||||||
Goodwill impairment | (47,458 | ) | — | (20,339 | ) | (67,797 | ) | |||||||
Foreign currency impact | (20 | ) | 118 | (9 | ) | 89 | ||||||||
Balance at December 29, 2012: | ||||||||||||||
Goodwill | 98,808 | 110,791 | 42,346 | 251,945 | ||||||||||
Accumulated impairment losses | (47,458 | ) | (104,562 | ) | (20,339 | ) | (172,359 | ) | ||||||
51,350 | 6,229 | 22,007 | 79,586 | |||||||||||
Goodwill allocated to divestiture | — | — | (1,032 | ) | (1,032 | ) | ||||||||
Foreign currency impact | — | 247 | — | 247 | ||||||||||
Balance at December 28, 2013: | ||||||||||||||
Goodwill | 98,808 | 111,038 | 41,314 | 251,160 | ||||||||||
Accumulated impairment losses | (47,458 | ) | (104,562 | ) | (20,339 | ) | (172,359 | ) | ||||||
$ | 51,350 | $ | 6,476 | $ | 20,975 | $ | 78,801 | |||||||
Schedule of intangible assets, excluding goodwill | ' | |||||||||||||
December 28, | December 29, | |||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Developed technology, net of accumulated amortization of $14,079 and $10,885 as of December 28, 2013 and December 29, 2012, respectively | $ | 26,805 | $ | 29,742 | ||||||||||
Customer relationships, net of accumulated amortization of $32,614 and $26,255 as of December 28, 2013 and December 29, 2012, respectively | 13,795 | 20,100 | ||||||||||||
In-process research and development, net of accumulated amortization of $759 and $158 as of December 28, 2013 and December 29, 2012, respectively | 7,162 | 7,746 | ||||||||||||
Other, net of accumulated amortization of $6,324 and $5,915 as of December 28, 2013 and December 29, 2012, respectively | 1,275 | 1,553 | ||||||||||||
49,037 | 59,141 | |||||||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Trademarks and trade names | 18,305 | 18,305 | ||||||||||||
Intangible assets, net | $ | 67,342 | $ | 77,446 | ||||||||||
Schedule of estimated aggregate amortization expense for future fiscal years | ' | |||||||||||||
(In thousands) | Estimated | |||||||||||||
Aggregate | ||||||||||||||
Amortization | ||||||||||||||
Expense | ||||||||||||||
2014 | $ | 8,556 | ||||||||||||
2015 | 6,924 | |||||||||||||
2016 | 6,538 | |||||||||||||
2017 | 5,553 | |||||||||||||
2018 | 3,429 | |||||||||||||
Thereafter | 17,399 | |||||||||||||
$ | 48,399 |
INTEREST_AND_OTHER_EXPENSE_NET1
INTEREST AND OTHER EXPENSE, NET (Tables) | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
INTEREST AND OTHER EXPENSE, NET | ' | ||||||||||
Interest and other expense, net | ' | ||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Interest and dividend income | $ | 221 | $ | 269 | $ | 565 | |||||
Interest expense | (5,464 | ) | (8,183 | ) | (10,598 | ) | |||||
Bank and portfolio asset management fees | (830 | ) | (708 | ) | (779 | ) | |||||
Derivative gains (losses) | 709 | 565 | (132 | ) | |||||||
Other, net | (1,126 | ) | (502 | ) | 394 | ||||||
$ | (6,490 | ) | $ | (8,559 | ) | $ | (10,550 | ) |
STOCK_INCENTIVE_PLANS_AND_STOC1
STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION | ' | |||||||||||
Schedule of weighted average fair value and underlying assumptions for stock appreciation rights | ' | |||||||||||
Year Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Fair value | $ | 6.61 | $ | 7.91 | $ | 7.75 | ||||||
Expected annual volatility | 56.26 | % | 57.51 | % | 54.08 | % | ||||||
Risk-free interest rate | 0.85 | % | 0.78 | % | 1.59 | % | ||||||
Expected term (years) | 5 | 4.4 | 4.5 | |||||||||
Annualized expected dividend yield | — | — | — | |||||||||
Schedule of total stock-based compensation expense included in the Company's consolidated statements of operations and comprehensive income (loss) | ' | |||||||||||
Year Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Cost of sales | $ | 938 | $ | 693 | $ | 488 | ||||||
Selling, general and administrative expenses | 7,142 | 6,740 | 5,029 | |||||||||
Research and development expense | 1,093 | 936 | 684 | |||||||||
$ | 9,173 | $ | 8,369 | $ | 6,201 | |||||||
Summary of stock option activity | ' | |||||||||||
Weighted | ||||||||||||
Weighted | Average | Aggregate | ||||||||||
Number of | Average | Remaining | Intrinsic | |||||||||
Options | Exercise | Contractual | Value | |||||||||
(In thousands) | Price | Life (Years) | (In thousands) | |||||||||
Outstanding at December 29, 2012 | 1,010 | $ | 13.56 | |||||||||
Exercised | (553 | ) | $ | 13.58 | ||||||||
Expired (cancelled post-vesting) | (23 | ) | $ | 13.64 | ||||||||
Outstanding at December 28, 2013 | 434 | $ | 13.53 | 1 | $ | 2,033 | ||||||
Vested and expected to vest at December 28, 2013 | 434 | $ | 13.53 | 1 | $ | 2,033 | ||||||
Exercisable at December 28, 2013 | 434 | $ | 13.53 | 1 | $ | 2,033 | ||||||
Summary of Company's stock appreciation rights activity | ' | |||||||||||
Weighted | ||||||||||||
Weighted | Average | Aggregate | ||||||||||
Number of | Average | Remaining | Intrinsic | |||||||||
Shares | Exercise | Contractual | Value | |||||||||
(In thousands) | Price | Life (Years) | (In thousands) | |||||||||
Outstanding at December 29, 2012 | 1,550 | $ | 11.16 | |||||||||
Granted | 655 | $ | 13.77 | |||||||||
Exercised | (213 | ) | $ | 6.46 | ||||||||
Forfeited (cancelled pre-vesting) | (49 | ) | $ | 15.99 | ||||||||
Expired (cancelled post-vesting) | (21 | ) | $ | 15.77 | ||||||||
Outstanding at December 28, 2013 | 1,922 | $ | 12.4 | 4.6 | $ | 11,176 | ||||||
Vested and expected to vest at December 28, 2013 | 1,809 | $ | 12.29 | 4.6 | $ | 10,730 | ||||||
Exercisable at December 28, 2013 | 958 | $ | 9.91 | 3.2 | $ | 7,960 | ||||||
Summary of Company's restricted stock unit activity | ' | |||||||||||
Weighted | ||||||||||||
Number of | Average | |||||||||||
Shares | Grant Date | |||||||||||
(In thousands) | Fair Value | |||||||||||
Outstanding at December 29, 2012 | 785 | $ | 16.28 | |||||||||
Granted | 729 | $ | 13.77 | |||||||||
Vested | (391 | ) | $ | 15.6 | ||||||||
Forfeited | (49 | ) | $ | 15.99 | ||||||||
Outstanding at December 28, 2013 | 1,074 | $ | 14.83 |
DEBT_AND_LINES_OF_CREDIT_Table
DEBT AND LINES OF CREDIT (Tables) | 12 Months Ended | |||||||||
Dec. 28, 2013 | ||||||||||
DEBT AND LINES OF CREDIT | ' | |||||||||
Schedule of short-term debt | ' | |||||||||
Interest | December 28, | December 29, | ||||||||
(In thousands) | Rate(s) | 2013 | 2012 | |||||||
Japanese revolving lines of credit, no expiration date | 1.16 | % | $ | 666 | $ | 5,231 | ||||
Japanese receivables financing facilities, no expiration date | 1.475 | % | 615 | 415 | ||||||
Current portion of long-term debt | 3,580 | 27,339 | ||||||||
Total short-term borrowings | $ | 4,861 | $ | 32,985 | ||||||
Schedule of components of interest cost on the convertible subordinated notes | ' | |||||||||
Year Ended | ||||||||||
December 29, | December 31, | |||||||||
(In thousands) | 2012 | 2011 | ||||||||
Contractual interest | $ | 39 | $ | 2,941 | ||||||
Amortization of debt discount | 12 | 3,891 | ||||||||
Interest cost on convertible subordinated notes | $ | 51 | $ | 6,832 | ||||||
Schedule of long-term debt | ' | |||||||||
Interest | December 28, | December 29, | ||||||||
(In thousands) | Rate(s) | 2013 | 2012 | |||||||
U.S. term loan | $ | — | $ | 171,125 | ||||||
U.S. revolving line of credit, maturing July 2018 | 1.94% | 83,000 | — | |||||||
Israeli loans, maturing through October 2015 | 2.97%-3.28% | 2,110 | 3,591 | |||||||
Japanese private placement bonds, maturing June 2014 | 0.62% | 1,902 | 2,325 | |||||||
Japanese loans, maturing through June 2016 | 1.25%-1.30% | 214 | 1,056 | |||||||
Total long-term debt | 87,226 | 178,097 | ||||||||
Current portion of long-term debt | 3,580 | 27,339 | ||||||||
Total long-term debt, less current portion | $ | 83,646 | $ | 150,758 | ||||||
Schedule of maturities of the Company's debt obligations | ' | |||||||||
(In thousands) | ||||||||||
2014 | $ | 4,861 | ||||||||
2015 | 627 | |||||||||
2016 | 19 | |||||||||
2017 | — | |||||||||
2018 | 83,000 | |||||||||
Thereafter | — | |||||||||
$ | 88,507 |
NET_INCOME_LOSS_PER_SHARE_Tabl
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
NET INCOME (LOSS) PER SHARE | ' | ||||||||||
Schedule of basic and diluted net income per share | ' | ||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands, except per share data) | 2013 | 2012 | 2011 | ||||||||
Net income (loss) attributable to Newport Corporation | $ | 15,601 | $ | (89,423 | ) | $ | 79,708 | ||||
Shares: | |||||||||||
Weighted average shares outstanding - basic | 39,010 | 38,133 | 37,407 | ||||||||
Dilutive potential common shares, using treasury stock method | 548 | — | 1,266 | ||||||||
Weighted average shares outstanding - diluted | 39,558 | 38,133 | 38,673 | ||||||||
Net income (loss) per share attributable to Newport Corporation: | |||||||||||
Basic | $ | 0.4 | $ | (2.35 | ) | $ | 2.13 | ||||
Diluted | $ | 0.39 | $ | (2.35 | ) | $ | 2.06 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||
Schedule of future minimum rental commitments under the terms of leases | ' | ||||||||||
Capital | Operating | Total | |||||||||
(In thousands) | Leases | Leases | Obligations | ||||||||
Payments Due By Period: | |||||||||||
2014 | $ | 184 | $ | 10,370 | $ | 10,554 | |||||
2015 | 183 | 8,639 | 8,822 | ||||||||
2016 | 182 | 7,321 | 7,503 | ||||||||
2017 | 181 | 6,908 | 7,089 | ||||||||
2018 | 3 | 6,978 | 6,981 | ||||||||
Thereafter | — | 14,948 | 14,948 | ||||||||
Total minimum payments | 733 | $ | 55,164 | $ | 55,897 | ||||||
Less amount representing interest | (109 | ) | |||||||||
Present value of obligation | $ | 624 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 28, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of United States and foreign income (loss) before income taxes | ' | ||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
United States | $ | 2,377 | $ | 2,360 | $ | 43,091 | |||||
Foreign | 19,059 | (86,831 | ) | 7,417 | |||||||
$ | 21,436 | $ | (84,471 | ) | $ | 50,508 | |||||
Schedule of income tax provision (benefit) based on income (loss) | ' | ||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Current: | |||||||||||
Federal | $ | 4,973 | $ | 1,275 | $ | (3,252 | ) | ||||
State | 546 | (7 | ) | 1,204 | |||||||
Foreign | 4,662 | 2,929 | 2,523 | ||||||||
10,181 | 4,197 | 475 | |||||||||
Deferred: | |||||||||||
Federal | (5,249 | ) | 6,980 | (23,425 | ) | ||||||
State | 283 | (3,085 | ) | (6,760 | ) | ||||||
Foreign | 483 | (2,613 | ) | 556 | |||||||
(4,483 | ) | 1,282 | (29,629 | ) | |||||||
$ | 5,698 | $ | 5,479 | $ | (29,154 | ) | |||||
Schedule of income tax provision (benefit) based on income (loss) that differs from the amount obtained by applying statutory tax rate | ' | ||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Income tax provision (benefit) at statutory rate | $ | 7,503 | $ | (29,565 | ) | $ | 17,678 | ||||
Increase (decrease) in taxes resulting from: | |||||||||||
Impairment or reduction of goodwill | — | 23,730 | 1 | ||||||||
Non-deductible expenses | 490 | 153 | 1,700 | ||||||||
State tax, net of federal benefit | 429 | (442 | ) | 1,043 | |||||||
Foreign rate variance | (1,135 | ) | 14,096 | (1,683 | ) | ||||||
Income tax credits | (1,636 | ) | (204 | ) | (1,590 | ) | |||||
Valuation allowance | (873 | ) | (19 | ) | (41,715 | ) | |||||
Tax contingency | (114 | ) | 292 | (1,808 | ) | ||||||
Other, including deferred tax adjustment, net | 1,034 | (2,562 | ) | (2,780 | ) | ||||||
$ | 5,698 | $ | 5,479 | $ | (29,154 | ) | |||||
Schedule of significant components of the deferred taxes | ' | ||||||||||
December 28, | December 29, | ||||||||||
(In thousands) | 2013 | 2012 | |||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 2,438 | $ | 4,711 | |||||||
Accruals and reserves not currently deductible | 18,340 | 19,199 | |||||||||
Tax credit carryforwards | 1,769 | 1,633 | |||||||||
Other basis differences | 9,029 | 7,511 | |||||||||
Total gross deferred tax assets | 31,576 | 33,054 | |||||||||
Valuation allowance | (2,262 | ) | (3,135 | ) | |||||||
29,314 | 29,919 | ||||||||||
Deferred tax liabilities: | |||||||||||
Intangible assets | 14,025 | 17,011 | |||||||||
Property and equipment | 3,402 | 4,446 | |||||||||
Other basis differences | 463 | 368 | |||||||||
Total deferred tax liabilities | 17,890 | 21,825 | |||||||||
Net deferred tax assets | $ | 11,424 | $ | 8,094 | |||||||
Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits | ' | ||||||||||
Year Ended | |||||||||||
December 28, | December 29, | December 31, | |||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Unrecognized tax benefits at beginning of year | $ | 15,173 | $ | 17,735 | $ | 9,953 | |||||
Gross increases for tax positions of prior years | 832 | — | 8,325 | ||||||||
Gross decrease for tax positions of prior years | — | (2,611 | ) | — | |||||||
Gross increases for tax positions of current year | 2,509 | 1,111 | 1,437 | ||||||||
Current year acquisitions | — | — | 903 | ||||||||
Settlements | — | (1,006 | ) | (2,370 | ) | ||||||
Lapse of statute of limitations | (1,085 | ) | (56 | ) | (513 | ) | |||||
Unrecognized tax benefits at end of year | $ | 17,429 | $ | 15,173 | $ | 17,735 | |||||
Schedule of tax years that remain subject to examination by significant jurisdiction | ' | ||||||||||
U.S. Federal | 2010 through current periods | ||||||||||
California | 2009 through current periods | ||||||||||
France | 2011 through current periods | ||||||||||
Germany | 2010 through current periods | ||||||||||
Japan | 2007 through current periods | ||||||||||
Israel | 2008 through current periods |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
Summary of the Company's assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||
(In thousands) | December 28, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||
Description | Active Markets for | Observable Inputs | Unobservable | |||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||
(Level 1) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||
Restricted Cash | $ | 2,305 | $ | 2,305 | $ | — | $ | — | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 8,052 | 8,052 | — | — | ||||||||||
Certificates of deposit | 167 | — | 167 | — | ||||||||||
8,219 | 8,052 | 167 | — | |||||||||||
Derivatives: | ||||||||||||||
Option contracts | 269 | — | 269 | — | ||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 11,489 | — | 11,489 | — | ||||||||||
Group insurance contracts | 6,895 | — | 6,895 | — | ||||||||||
18,384 | — | 18,384 | — | |||||||||||
$ | 29,177 | $ | 10,357 | $ | 18,820 | $ | — | |||||||
Liabilities: | ||||||||||||||
Derivatives: | ||||||||||||||
Option contracts | $ | 10 | $ | — | $ | 10 | $ | — | ||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||
(In thousands) | December 29, 2012 | Quoted Prices in | Significant Other | Significant | ||||||||||
Description | Active Markets for | Observable Inputs | Unobservable | |||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||
(Level 1) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||
Restricted Cash | $ | 3,107 | $ | 3,107 | $ | — | $ | — | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 4,244 | 4,244 | — | — | ||||||||||
Certificates of deposit | 4,254 | — | 4,254 | — | ||||||||||
8,498 | 4,244 | 4,254 | — | |||||||||||
Derivatives: | ||||||||||||||
Option contracts | 755 | — | 755 | — | ||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 10,690 | — | 10,690 | — | ||||||||||
Group insurance contracts | 6,615 | — | 6,615 | — | ||||||||||
17,305 | — | 17,305 | — | |||||||||||
$ | 29,665 | $ | 7,351 | $ | 22,314 | $ | — | |||||||
Liabilities: | ||||||||||||||
Derivatives: | ||||||||||||||
Option contracts | $ | 202 | $ | — | $ | 202 | $ | — | ||||||
Summary of carrying amount and estimated fair values of financial instruments | ' | |||||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||||
Carrying | Carrying | |||||||||||||
(In thousands) | Amount | Fair Value | Amount | Fair Value | ||||||||||
Short-term borrowings | $ | 4,861 | $ | 4,851 | $ | 32,985 | $ | 32,020 | ||||||
Long-term debt | $ | 83,646 | $ | 82,658 | $ | 150,758 | $ | 145,404 |
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||
Aggregate net periodic benefit costs for the plans | ' | |||||||||||
Year Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Service cost | $ | 2,692 | $ | 2,807 | $ | 1,178 | ||||||
Interest cost on projected benefit obligations | 653 | 746 | 832 | |||||||||
Expected return on plan assets | (207 | ) | (228 | ) | (299 | ) | ||||||
Amortization of net loss | 240 | 47 | 239 | |||||||||
$ | 3,378 | $ | 3,372 | $ | 1,950 | |||||||
Schedule of components of change in plan assets and benefit obligations recognized in other comprehensive income (loss) | ' | |||||||||||
Year Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Net actuarial (gain) loss | $ | (609 | ) | $ | 2,290 | $ | (312 | ) | ||||
Amortization of net loss | (240 | ) | (47 | ) | (239 | ) | ||||||
Total recognized in other comprehensive income (loss) | (849 | ) | 2,243 | (551 | ) | |||||||
Total recognized in net periodic benefit costs and other comprehensive income (loss) | $ | 2,529 | $ | 5,615 | $ | 1,399 | ||||||
Schedule of changes in projected benefit obligations and plan assets, as well as the ending balance sheet amounts for the Company's defined benefit plans | ' | |||||||||||
December 28, | December 29, | |||||||||||
(In thousands) | 2013 | 2012 | ||||||||||
Change in projected benefit obligations: | ||||||||||||
Projected benefit obligations, beginning of year | $ | 37,184 | $ | 33,312 | ||||||||
Service cost | 2,692 | 2,807 | ||||||||||
Interest cost | 653 | 746 | ||||||||||
Actuarial (gain) loss | (1,197 | ) | 3,000 | |||||||||
Benefits paid | (2,837 | ) | (2,612 | ) | ||||||||
Currency translation adjustments | (69 | ) | (69 | ) | ||||||||
Projected benefit obligations, end of year | 36,426 | 37,184 | ||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets, beginning of year | 9,420 | 10,020 | ||||||||||
Company contributions | 461 | 576 | ||||||||||
Gain on plan assets | 48 | 141 | ||||||||||
Benefits paid | (209 | ) | (1,156 | ) | ||||||||
Currency translation adjustments | (522 | ) | (161 | ) | ||||||||
Fair value of plan assets, end of year | 9,198 | 9,420 | ||||||||||
Funded status | $ | (27,228 | ) | $ | (27,764 | ) | ||||||
Amounts recognized in the balance sheet: | ||||||||||||
Pension assets | $ | 252 | $ | 320 | ||||||||
Current portion of pension liabilities | (387 | ) | (320 | ) | ||||||||
Pension liabilities | (27,093 | ) | (27,764 | ) | ||||||||
Net amount recognized | $ | (27,228 | ) | $ | (27,764 | ) | ||||||
Amounts recognized in accumulated comprehensive loss: | ||||||||||||
Net actuarial loss | $ | 3,539 | $ | 4,637 | ||||||||
Income tax impact | (1,140 | ) | (1,389 | ) | ||||||||
Accumulated other comprehensive loss | $ | 2,399 | $ | 3,248 | ||||||||
Schedule of estimated benefit payments for the next 10 years | ' | |||||||||||
Estimated | ||||||||||||
Benefit | ||||||||||||
(In thousands) | Payments | |||||||||||
2014 | $ | 1,671 | ||||||||||
2015 | 1,309 | |||||||||||
2016 | 2,597 | |||||||||||
2017 | 1,213 | |||||||||||
2018 | 1,177 | |||||||||||
2019-2024 | 22,939 | |||||||||||
$ | 30,906 | |||||||||||
Schedule of weighted-average rates used to determine the net periodic benefit costs | ' | |||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Discount rate | 1.87 | % | 2.29 | % | 2.44 | % | ||||||
Rate of increase in salary levels | 1.67 | % | 2.38 | % | 2.25 | % | ||||||
Expected long-term rate of return on assets | 1.89 | % | 1.59 | % | 1.59 | % | ||||||
Schedule of weighted-average rates used to determine projected benefit obligations | ' | |||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Discount rate | 1.96 | % | 1.87 | % | ||||||||
Rate of increase in salary levels | 1.58 | % | 1.67 | % | ||||||||
Expected long-term rate of return on assets | 1.83 | % | 1.89 | % | ||||||||
Schedule of allocation of plan assets | ' | |||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||
(Amounts in thousands) | Amount | Percentage | Amount | Percentage | ||||||||
Cash | $ | 575 | 6 | % | $ | 2,249 | 24 | % | ||||
Bonds | 1,256 | 13 | 1,410 | 15 | ||||||||
Equity securities | 1,429 | 16 | — | — | ||||||||
Insurance contracts | 5,938 | 65 | 5,761 | 61 | ||||||||
$ | 9,198 | 100 | % | $ | 9,420 | 100 | % |
BUSINESS_SEGMENT_INFORMATION_T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
BUSINESS SEGMENT INFORMATION | ' | |||||||||||||
Schedule of selected segment financial information | ' | |||||||||||||
Photonics | Lasers | Optics | ||||||||||||
(In thousands) | Division | Division | Division | Total | ||||||||||
Year ended December 28, 2013 | ||||||||||||||
Sales to external customers | $ | 230,303 | $ | 165,788 | $ | 163,963 | $ | 560,054 | ||||||
Depreciation and amortization | $ | 4,035 | $ | 3,534 | $ | 8,236 | $ | 15,805 | ||||||
Segment income | $ | 49,984 | $ | 18,746 | $ | 11,748 | $ | 80,478 | ||||||
Segment assets | $ | 200,584 | $ | 111,651 | $ | 123,781 | $ | 436,016 | ||||||
Expenditures for long-lived assets | $ | 3,561 | $ | 2,341 | $ | 6,328 | $ | 12,230 | ||||||
Year ended December 29, 2012 | ||||||||||||||
Sales to external customers | $ | 237,601 | $ | 181,426 | $ | 176,319 | $ | 595,346 | ||||||
Depreciation and amortization | $ | 3,973 | $ | 4,192 | $ | 8,159 | $ | 16,324 | ||||||
Segment income (loss) | $ | (39,191 | ) | $ | 20,508 | $ | (14,848 | ) | $ | (33,531 | ) | |||
Segment assets | $ | 202,881 | $ | 114,357 | $ | 134,986 | $ | 452,224 | ||||||
Expenditures for long-lived assets | $ | 1,540 | $ | 2,381 | $ | 4,055 | $ | 7,976 | ||||||
Year ended December 31, 2011 | ||||||||||||||
Sales to external customers | $ | 204,341 | $ | 191,528 | $ | 149,185 | $ | 545,054 | ||||||
Depreciation and amortization | $ | 3,215 | $ | 3,632 | $ | 4,395 | $ | 11,242 | ||||||
Segment income | $ | 45,715 | $ | 19,150 | $ | 30,554 | $ | 95,419 | ||||||
Segment assets | $ | 263,685 | $ | 124,231 | $ | 245,255 | $ | 633,171 | ||||||
Expenditures for long-lived assets | $ | 2,436 | $ | 2,423 | $ | 4,431 | $ | 9,290 | ||||||
Schedule of reconciliation of segment income to consolidated income (loss) before income taxes | ' | |||||||||||||
Year Ended | ||||||||||||||
December 28, | December 29, | December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||
Segment income (loss) | $ | 80,478 | $ | (33,531 | ) | $ | 95,419 | |||||||
Unallocated operating expenses | (44,472 | ) | (48,629 | ) | (41,596 | ) | ||||||||
Gain (loss) on sale of assets | (4,725 | ) | 6,248 | — | ||||||||||
Foreign currency translation gain from sale of subsidiary | — | — | 7,198 | |||||||||||
Recovery of note receivable and other amounts related to previously discontinued operations, net | — | — | 619 | |||||||||||
Loss on extinguishment of debt | (3,355 | ) | — | (582 | ) | |||||||||
Interest and other expense, net | (6,490 | ) | (8,559 | ) | (10,550 | ) | ||||||||
Consolidated income (loss) before income taxes | $ | 21,436 | $ | (84,471 | ) | $ | 50,508 | |||||||
Schedule of reconciliation of segment depreciation and amortization, total assets and capital expenditures to consolidated amounts | ' | |||||||||||||
As of or for the Year Ended | ||||||||||||||
December 28, | December 29, | December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||
Depreciation and amortization for reportable segments | $ | 15,805 | $ | 16,324 | $ | 11,242 | ||||||||
Depreciation and amortization for assets held at corporate | 14,673 | 23,308 | 12,757 | |||||||||||
Total depreciation and amortization | $ | 30,478 | $ | 39,632 | $ | 23,999 | ||||||||
Assets of reportable segments | $ | 436,016 | $ | 452,224 | $ | 633,171 | ||||||||
Assets held at corporate, primarily cash and cash equivalents, restricted cash and marketable securities | 129,213 | 168,737 | 130,898 | |||||||||||
Total assets | $ | 565,229 | $ | 620,961 | $ | 764,069 | ||||||||
Expenditures for long-lived assets for reportable segments | $ | 12,230 | $ | 7,976 | $ | 9,290 | ||||||||
Expenditures for long-lived assets held at corporate | 4,089 | 3,553 | 4,223 | |||||||||||
Total expenditures for long-lived assets | $ | 16,319 | $ | 11,529 | $ | 13,513 | ||||||||
Schedule of net sales and long-lived assets by geographic region | ' | |||||||||||||
As of or for the Year Ended | ||||||||||||||
December 28, | December 29, | December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||
Geographic area net sales: | ||||||||||||||
United States | $ | 218,298 | $ | 243,674 | $ | 240,736 | ||||||||
Germany | 75,119 | 73,383 | 61,580 | |||||||||||
Other European countries | 81,178 | 78,428 | 72,957 | |||||||||||
Japan | 51,761 | 62,947 | 52,971 | |||||||||||
Other Pacific Rim countries | 95,779 | 94,313 | 80,731 | |||||||||||
Rest of world | 37,919 | 42,601 | 36,079 | |||||||||||
$ | 560,054 | $ | 595,346 | $ | 545,054 | |||||||||
Geographic area long-lived assets: | ||||||||||||||
United States | $ | 38,328 | $ | 42,710 | ||||||||||
Israel | 24,667 | 26,690 | ||||||||||||
Europe | 14,589 | 9,902 | ||||||||||||
Rest of world | 2,932 | 3,541 | ||||||||||||
$ | 80,516 | $ | 82,843 |
SUPPLEMENTARY_QUARTERLY_CONSOL1
SUPPLEMENTARY QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
SUPPLEMENTARY QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | ' | |||||||||||||
Schedule of supplementary quarterly consolidated financial data | ' | |||||||||||||
First | Second | Third | Fourth | |||||||||||
(In thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | ||||||||||
Year Ended December 28, 2013: | ||||||||||||||
Net sales | $ | 132,607 | $ | 134,234 | $ | 139,037 | $ | 154,176 | ||||||
Gross profit | $ | 55,132 | $ | 57,237 | $ | 59,731 | $ | 65,613 | ||||||
Net income attibutable to Newport Corporation | $ | 2,746 | $ | 2,662 | $ | 437 | $ | 9,756 | ||||||
Basic income per share attibutable to Newport Corporation (1) | $ | 0.07 | $ | 0.07 | $ | 0.01 | $ | 0.25 | ||||||
Diluted income per share attibutable to Newport Corporation (1) | $ | 0.07 | $ | 0.07 | $ | 0.01 | $ | 0.24 | ||||||
First | Second | Third | Fourth | |||||||||||
(In thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | ||||||||||
Year Ended December 29, 2012: | ||||||||||||||
Net sales | $ | 157,167 | $ | 153,655 | $ | 142,881 | $ | 141,643 | ||||||
Gross profit | $ | 68,069 | $ | 66,883 | $ | 62,808 | $ | 62,828 | ||||||
Net income (loss) attibutable to Newport Corporation | $ | 6,592 | $ | 9,154 | $ | 7,636 | $ | (112,805 | ) | |||||
Basic income (loss) per share attibutable to Newport Corporation (1) | $ | 0.17 | $ | 0.24 | $ | 0.2 | $ | (2.96 | ) | |||||
Diluted income (loss) per share attibutable to Newport Corporation (1) | $ | 0.17 | $ | 0.24 | $ | 0.2 | $ | (2.96 | ) | |||||
(1) Per share data was computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share information may not equal the annual income per share. |
ORGANIZATION_AND_SUMMARY_OF_SI3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
item | item | ||
Basis of presentation | ' | ' | ' |
Number of weeks in the fiscal year (in days) | '364 days | '364 days | '364 days |
Number of operating segments | 3 | 3 | ' |
Minimum | ' | ' | ' |
Basis of presentation | ' | ' | ' |
Number of weeks in the fiscal year (in days) | '364 days | ' | ' |
Maximum | ' | ' | ' |
Basis of presentation | ' | ' | ' |
Number of weeks in the fiscal year (in days) | '371 days | ' | ' |
ORGANIZATION_AND_SUMMARY_OF_SI4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 28, 2013 | |
Buildings and improvements | Minimum | ' |
Property and Equipment, net | ' |
Estimated useful lives of the assets | '3 years |
Buildings and improvements | Maximum | ' |
Property and Equipment, net | ' |
Estimated useful lives of the assets | '40 years |
Machinery and equipment | Minimum | ' |
Property and Equipment, net | ' |
Estimated useful lives of the assets | '2 years |
Machinery and equipment | Maximum | ' |
Property and Equipment, net | ' |
Estimated useful lives of the assets | '20 years |
Office equipment | Minimum | ' |
Property and Equipment, net | ' |
Estimated useful lives of the assets | '3 years |
Office equipment | Maximum | ' |
Property and Equipment, net | ' |
Estimated useful lives of the assets | '10 years |
ORGANIZATION_AND_SUMMARY_OF_SI5
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Long-Lived Assets | ' | ' | ' |
Impairment charge | $0 | $0.50 | $0 |
Developed technology | Minimum | ' | ' | ' |
Intangible Assets, including Goodwill | ' | ' | ' |
Estimated useful life of intangible assets | '10 years | ' | ' |
Developed technology | Maximum | ' | ' | ' |
Intangible Assets, including Goodwill | ' | ' | ' |
Estimated useful life of intangible assets | '20 years | ' | ' |
Customer relationships | Maximum | ' | ' | ' |
Intangible Assets, including Goodwill | ' | ' | ' |
Estimated useful life of intangible assets | '10 years | ' | ' |
Other intangible assets except product trademarks and trade names | Minimum | ' | ' | ' |
Intangible Assets, including Goodwill | ' | ' | ' |
Estimated useful life of intangible assets | '3 months | ' | ' |
Other intangible assets except product trademarks and trade names | Maximum | ' | ' | ' |
Intangible Assets, including Goodwill | ' | ' | ' |
Estimated useful life of intangible assets | '10 years | ' | ' |
Trademarks and trade names associated with products | Minimum | ' | ' | ' |
Intangible Assets, including Goodwill | ' | ' | ' |
Estimated useful life of intangible assets | '10 years | ' | ' |
Trademarks and trade names associated with products | Maximum | ' | ' | ' |
Intangible Assets, including Goodwill | ' | ' | ' |
Estimated useful life of intangible assets | '20 years | ' | ' |
ORGANIZATION_AND_SUMMARY_OF_SI6
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended |
Dec. 28, 2013 | |
Photonics and Optics | All products other than filters, gratings, laser beam profilers and dental CAD/CAM scanners | ' |
Warranty | ' |
Product warranty period | '1 year |
Photonics and Optics | Filters and gratings products | ' |
Warranty | ' |
Product warranty period | '90 days |
Photonics and Optics | Original equipment manufacturer | Minimum | ' |
Warranty | ' |
Product warranty period | '15 months |
Photonics and Optics | Original equipment manufacturer | Maximum | ' |
Warranty | ' |
Product warranty period | '19 months |
Photonics and Optics | Laser beam profilers and dental CAD/CAM scanners | ' |
Warranty | ' |
Product warranty period | '2 years |
Lasers Division | Minimum | ' |
Warranty | ' |
Product warranty period | '90 days |
Lasers Division | Maximum | ' |
Warranty | ' |
Product warranty period | '2 years |
ORGANIZATION_AND_SUMMARY_OF_SI7
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Revenue recognition | ' | ' | ' |
Period to return standard catalog product purchase for exchange or credit from original invoice date (domestic customers) | '30 days | ' | ' |
Period to return standard catalog product purchase for exchange or credit from original invoice date (international customers) | '60 days | ' | ' |
Advertising | ' | ' | ' |
Advertising costs | $4.20 | $3.90 | $4.20 |
Shipping and Handling Costs | ' | ' | ' |
Shipping and handling costs included in selling, general and administrative expenses | $4.70 | $5.20 | $5 |
ORGANIZATION_AND_SUMMARY_OF_SI8
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 |
Ophir | Ophir | Ophir | Ophir | ||
Optical Metrology Ltd., Israel | Ophir Japan, Ltd. | Ophir Optronics GmbH, Germany | Optical Metrology Ltd., Israel | ||
Subsequent event | |||||
Non-controlling interests | ' | ' | ' | ' | ' |
Percentage of non-controlling interest in the acquiree's subsidiaries | ' | ' | 33.30% | 25.00% | 14.10% |
Purchase price of all shares owned by the holders of the non-controlling interests in acquiree's subsidiaries | ' | $0.90 | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | ' | ' |
Restricted stock unit awards vesting percentage | 33.33% | ' | ' | ' | ' |
ACQUISITIONS_AND_DIVESTITURES_1
ACQUISITIONS AND DIVESTITURES (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Jan. 31, 2014 | |
Advanced Packaging Systems Business | Advanced Packaging Systems Business | |||
Subsequent event | ||||
Divestiture | ' | ' | ' | ' |
Sale price | ' | ' | ' | $6,000,000 |
Cash proceeds | ' | ' | ' | 5,350,000 |
Unsecured note receivable | ' | ' | ' | 650,000 |
Transaction costs | ' | ' | ' | 400,000 |
Net book value of business | ' | ' | 9,500,000 | ' |
(Loss) gain on sale of business | ($4,725,000) | $166,000 | ($4,700,000) | ' |
ACQUISITIONS_AND_DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES (Details 2) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 29, 2012 | Dec. 29, 2012 | Oct. 10, 2012 | Oct. 10, 2012 | Oct. 10, 2012 | Oct. 10, 2012 | Jan. 13, 2012 | Jan. 13, 2012 | Jan. 13, 2012 | Jan. 13, 2012 | Dec. 31, 2011 | Dec. 29, 2011 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2011 | Dec. 29, 2011 | Oct. 04, 2011 | Oct. 04, 2011 | Oct. 04, 2011 | Oct. 04, 2011 | Oct. 04, 2011 | Oct. 04, 2011 | Jul. 29, 2011 | Jul. 29, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Jul. 29, 2011 | Jul. 29, 2011 | Jul. 29, 2011 | Jul. 29, 2011 | |
USD ($) | USD ($) | USD ($) | Developed technology | Developed technology | Customer relationships | Customer relationships | Other intangible assets | Other intangible assets | In-process research and development | Ophir | Vistek and ILX Lightwave Corporation | Vistek | Vistek | Vistek | Vistek | ILX Lightwave Corporation | ILX Lightwave Corporation | ILX Lightwave Corporation | ILX Lightwave Corporation | Ophir, High Q and Opticoat | Opticoat | Opticoat | Opticoat | Opticoat | Opticoat | Ophir | Ophir | Ophir | Ophir | Ophir | Ophir | High Q | High Q | High Q | High Q | High Q | High Q | High Q | High Q | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Developed technology | Customer relationships | Other intangible assets | USD ($) | Developed technology | Customer relationships | Other intangible assets | USD ($) | USD ($) | USD ($) | USD ($) | Developed technology | Customer relationships | USD ($) | Senior secured credit facility | Developed technology | Customer relationships | Other intangible assets | In-process research and development | USD ($) | EUR (€) | USD ($) | EUR (€) | Minimum | Developed technology | Customer relationships | Other intangible assets | ||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||
Cost of acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition payment allocated to purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $242,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of the acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,500,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase price paid at closing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,300,000 | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | 242,300,000 | ' | ' | ' | ' | ' | 17,200,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase price deposited at closing into escrow account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' |
Transaction costs incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,000 | ' | ' | ' | 100,000 | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | 4,700,000 | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' |
Reduction in purchase price due to net asset adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in purchase price due to net asset adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' |
Amount held back to secure transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid by the entity in 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 850,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount payable by the entity in 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price, present value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price allocated to fair value of unearned compensation related to unvested stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash on hand used in payments for acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 162,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds received from issuance of long term debt, used in payments for acquisition | 120,000,000 | ' | 187,934,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash used in acquisitions | ' | 11,439,000 | 233,696,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 219,200,000 | ' | ' | ' | ' | ' | 12,500,000 | ' | ' | ' | ' | ' | ' | ' |
Sale and lease back transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of building | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' |
Sale and lease back transaction term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Mortgage loan repayment term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years | ' | ' | ' | ' | ' | ' |
Annual interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 2.00% | ' | ' | ' | ' |
Mortgage loan on building | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | 3,100,000 | ' | ' | ' | ' |
Current portion of mortgage loan on building included in prepaid expenses and other current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' |
Non-current portion of mortgage loan on building included in other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | ' | ' | ' | ' | ' |
Purchase price, assets acquired and liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,000 | ' | ' | ' | ' | 44,000 | ' | ' | ' | 29,222,000 | ' | ' | ' | ' | ' | 23,233,000 | ' | ' | ' | ' | ' | 5,989,000 | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,224,000 | ' | ' | ' | ' | 1,224,000 | ' | ' | ' | 20,226,000 | ' | ' | ' | ' | ' | 18,732,000 | ' | ' | ' | ' | ' | 1,494,000 | ' | ' | ' | ' | ' | ' | ' |
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 942,000 | 81,000 | ' | ' | ' | 861,000 | ' | ' | ' | 38,199,000 | ' | ' | ' | ' | ' | 30,370,000 | ' | ' | ' | ' | ' | 7,829,000 | ' | ' | ' | ' | ' | ' | ' |
Other current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,435,000 | ' | ' | ' | ' | ' | 4,478,000 | ' | ' | ' | ' | ' | 5,957,000 | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 613,000 | 26,000 | ' | ' | ' | 587,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,035,000 | 273,000 | ' | ' | ' | 3,762,000 | ' | ' | ' | 74,571,000 | 1,302,000 | ' | ' | ' | ' | 66,524,000 | ' | ' | ' | ' | ' | 6,745,000 | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | 4,000,000 | 48,535,000 | 2,000,000 | 58,138,000 | 1,110,000 | 18,140,000 | 9,560,000 | ' | ' | ' | 1,200,000 | 900,000 | 20,000 | ' | 2,800,000 | 1,100,000 | 1,090,000 | ' | ' | ' | ' | 705,000 | 148,000 | ' | ' | 41,530,000 | 56,640,000 | 13,970,000 | 9,560,000 | ' | ' | ' | ' | ' | 6,300,000 | 1,350,000 | 4,170,000 |
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,005,000 | 917,000 | ' | ' | ' | ' | 41,652,000 | ' | ' | ' | ' | ' | 1,436,000 | ' | ' | ' | ' | ' | ' | ' |
Other noncurrent assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,142,000 | ' | ' | ' | ' | ' | 13,917,000 | ' | ' | ' | ' | ' | 225,000 | ' | ' | ' | ' | ' | ' | ' |
Short-term borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -17,781,000 | ' | ' | ' | ' | ' | -7,082,000 | ' | ' | ' | ' | ' | -10,699,000 | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9,548,000 | ' | ' | ' | ' | ' | -7,756,000 | ' | ' | ' | ' | ' | -1,792,000 | ' | ' | ' | ' | ' | ' | ' |
Other liabilities / other current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -644,000 | ' | ' | ' | ' | -644,000 | ' | ' | ' | -21,252,000 | ' | ' | ' | ' | ' | -17,562,000 | ' | ' | ' | ' | ' | -3,690,000 | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -13,942,000 | ' | ' | ' | ' | ' | -9,781,000 | ' | ' | ' | ' | ' | -4,161,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,841,000 | ' | ' | ' | ' | -1,841,000 | ' | ' | ' | -25,355,000 | ' | ' | ' | ' | ' | -23,292,000 | ' | ' | ' | ' | ' | -2,063,000 | ' | ' | ' | ' | ' | ' | ' |
Other noncurrent liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -11,695,000 | -137,000 | ' | ' | ' | ' | -10,973,000 | ' | ' | ' | ' | ' | -585,000 | ' | ' | ' | ' | ' | ' | ' |
Non-controlling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,076,000 | ' | ' | ' | ' | ' | -2,076,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets acquired and liabilities assumed, total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,483,000 | 2,500,000 | ' | ' | ' | 8,983,000 | ' | ' | ' | 263,524,000 | 2,935,000 | ' | ' | ' | ' | 242,084,000 | ' | ' | ' | ' | ' | 18,505,000 | ' | ' | ' | ' | ' | ' | ' |
Impairment charges related to goodwill | ' | 67,797,000 | ' | ' | ' | ' | ' | ' | ' | ' | 67,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges related to acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges related to fixed assets | $0 | $500,000 | $0 | ' | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
MARKETABLE_SECURITIES_Details
MARKETABLE SECURITIES (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | Aggregate Fair Value | Aggregate Fair Value | Money market funds | Money market funds | Money market funds | Money market funds | Certificates of deposit | Certificates of deposit | Certificates of deposit | Certificates of deposit | Certificates of deposit | ||
Fair Value Measurements, Recurring basis | Fair Value Measurements, Recurring basis | Aggregate Fair Value | Aggregate Fair Value | Maximum | Aggregate Fair Value | Aggregate Fair Value | |||||||
Fair Value Measurements, Recurring basis | Fair Value Measurements, Recurring basis | Fair Value Measurements, Recurring basis | Fair Value Measurements, Recurring basis | ||||||||||
Aggregate amount of unrealized gains and losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities | $8,219 | $8,498 | $8,219 | $8,498 | $8,052 | $4,244 | $8,052 | $4,244 | $167 | $4,254 | ' | $167 | $4,254 |
Aggregate amount of unrealized gains | $91 | $86 | ' | ' | $91 | $86 | ' | ' | ' | ' | ' | ' | ' |
Maturity term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
MARKETABLE_SECURITIES_Details_
MARKETABLE SECURITIES (Details 2) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Gross realized gains and losses on sales of available for sale securities | ' |
Gross realized gains | $69 |
Total | $69 |
SUPPLEMENTAL_BALANCE_SHEET_INF2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Current inventories | ' | ' | ' |
Raw materials and purchased parts | $61,819,000 | $65,766,000 | ' |
Work in process | 19,577,000 | 18,075,000 | ' |
Finished goods | 21,987,000 | 24,887,000 | ' |
Current inventories | 103,383,000 | 108,728,000 | ' |
Long-term Inventories | ' | ' | ' |
Raw materials and purchased parts | 1,850,000 | 4,149,000 | ' |
Finished goods | 4,489,000 | 4,926,000 | ' |
Long-term inventories | 6,339,000 | 9,075,000 | ' |
Property and Equipment, net | ' | ' | ' |
Property plant and equipment, gross | 199,112,000 | 184,866,000 | ' |
Less accumulated depreciation and amortization | -118,596,000 | -102,023,000 | ' |
Property and equipment, net | 80,516,000 | 82,843,000 | ' |
Depreciation expense, including amortization of assets under capital leases | 17,200,000 | 18,200,000 | 13,200,000 |
Assets under capital leases, net of accumulated amortization | 900,000 | 1,000,000 | ' |
Accumulated amortization of capital lease assets | 1,800,000 | 1,600,000 | ' |
Land | ' | ' | ' |
Property and Equipment, net | ' | ' | ' |
Property plant and equipment, gross | 3,372,000 | 3,456,000 | ' |
Buildings | ' | ' | ' |
Property and Equipment, net | ' | ' | ' |
Property plant and equipment, gross | 11,177,000 | 10,377,000 | ' |
Leasehold improvements | ' | ' | ' |
Property and Equipment, net | ' | ' | ' |
Property plant and equipment, gross | 37,512,000 | 37,591,000 | ' |
Machinery and equipment | ' | ' | ' |
Property and Equipment, net | ' | ' | ' |
Property plant and equipment, gross | 96,410,000 | 86,816,000 | ' |
Office equipment | ' | ' | ' |
Property and Equipment, net | ' | ' | ' |
Property plant and equipment, gross | $50,641,000 | $46,626,000 | ' |
SUPPLEMENTAL_BALANCE_SHEET_INF3
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Accrued Warranty Obligations | ' | ' |
Balance at beginning of year | $3,528 | $4,466 |
Additions charged to cost of sales | 2,416 | 2,674 |
Additions from acquisitions | ' | 21 |
Warranty claims | -2,659 | -3,633 |
Balance at end of period | 3,285 | 3,528 |
Accrued Expenses and Other Current Liabilities | ' | ' |
Deferred revenue | 13,609 | 11,561 |
Deferred lease liability | 5,448 | 5,445 |
Accrued and deferred taxes | 3,130 | 3,866 |
Short-term accrued warranty obligations | 3,093 | 3,421 |
Other | 10,061 | 10,403 |
Accrued expenses and other current liabilities, total | 35,341 | 34,696 |
Accumulated Other Comprehensive Loss | ' | ' |
Cumulative foreign currency translation losses | -2,296 | -4,569 |
Unrecognized net pension losses, net of tax | -2,399 | -3,248 |
Unrealized gains on marketable securities, net of tax | 1,076 | 868 |
Accumulated other comprehensive loss | ($3,619) | ($6,949) |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Jan. 01, 2013 | |
Changes in the carrying amount of goodwill | ' | ' | ' |
Goodwill, gross at the beginning of the period | $251,945,000 | $247,821,000 | ' |
Accumulated impairment losses at the beginning of the period | -172,359,000 | -104,562,000 | ' |
Goodwill, net at the beginning of the period | 79,586,000 | 143,259,000 | ' |
Goodwill acquired | ' | 4,035,000 | ' |
Goodwill impairment | ' | -67,797,000 | ' |
Foreign currency impact | 247,000 | 89,000 | ' |
Goodwill allocated to divestiture | -1,032,000 | ' | ' |
Goodwill, gross at the end of the period | 251,160,000 | 251,945,000 | ' |
Accumulated impairment losses at the end of the period | -172,359,000 | -172,359,000 | ' |
Goodwill, net at the end of the period | 78,801,000 | 79,586,000 | ' |
Number of operating segments | 3 | 3 | ' |
Advanced Packaging Systems Business | ' | ' | ' |
Changes in the carrying amount of goodwill | ' | ' | ' |
Goodwill allocated to divestiture | 1,000,000 | ' | ' |
Photonics Group | ' | ' | ' |
Changes in the carrying amount of goodwill | ' | ' | ' |
Goodwill, gross at the beginning of the period | ' | 96,004,000 | ' |
Goodwill, net at the beginning of the period | ' | 96,004,000 | ' |
Goodwill acquired | ' | 2,825,000 | ' |
Goodwill impairment | ' | -47,458,000 | ' |
Foreign currency impact | ' | -20,000 | ' |
Goodwill, gross at the end of the period | 98,808,000 | 98,808,000 | ' |
Accumulated impairment losses at the end of the period | -47,458,000 | -47,458,000 | ' |
Goodwill, net at the end of the period | 51,350,000 | 51,350,000 | ' |
Goodwill allocated (as a percent) | ' | ' | 70.00% |
Lasers Group | ' | ' | ' |
Changes in the carrying amount of goodwill | ' | ' | ' |
Goodwill, gross at the beginning of the period | 110,791,000 | 110,673,000 | ' |
Accumulated impairment losses at the beginning of the period | -104,562,000 | -104,562,000 | ' |
Goodwill, net at the beginning of the period | 6,229,000 | 6,111,000 | ' |
Foreign currency impact | 247,000 | 118,000 | ' |
Goodwill, gross at the end of the period | 111,038,000 | 110,791,000 | ' |
Accumulated impairment losses at the end of the period | -104,562,000 | -104,562,000 | ' |
Goodwill, net at the end of the period | 6,476,000 | 6,229,000 | ' |
Optics Group | ' | ' | ' |
Changes in the carrying amount of goodwill | ' | ' | ' |
Goodwill, gross at the beginning of the period | 42,346,000 | 41,144,000 | ' |
Accumulated impairment losses at the beginning of the period | -20,339,000 | ' | ' |
Goodwill, net at the beginning of the period | 22,007,000 | 41,144,000 | ' |
Goodwill acquired | ' | 1,211,000 | ' |
Goodwill impairment | ' | -20,339,000 | ' |
Foreign currency impact | ' | -9,000 | ' |
Goodwill allocated to divestiture | -1,032,000 | ' | ' |
Goodwill, gross at the end of the period | 41,314,000 | 42,346,000 | ' |
Accumulated impairment losses at the end of the period | -20,339,000 | -20,339,000 | ' |
Goodwill, net at the end of the period | 20,975,000 | 22,007,000 | ' |
Goodwill allocated (as a percent) | ' | ' | 30.00% |
Ophir Division | ' | ' | ' |
Changes in the carrying amount of goodwill | ' | ' | ' |
Goodwill impairment | ' | -67,800,000 | ' |
PPT Division | Vistek and ILX Lightwave Corporation | ' | ' | ' |
Changes in the carrying amount of goodwill | ' | ' | ' |
Goodwill acquired | ' | $4,000,000 | ' |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 29, 2012 |
Developed technology | Developed technology | Developed technology | Customer relationships | Customer relationships | Customer relationships | In-process research and development | In-process research and development | In-process research and development | Other intangible assets | Other intangible assets | Trade names | |||
Ophir Division | Ophir Division | Ophir Division | Ophir Division | |||||||||||
Intangible assets subject to amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | $49,037,000 | $59,141,000 | $26,805,000 | $29,742,000 | ' | $13,795,000 | $20,100,000 | ' | $7,162,000 | $7,746,000 | ' | $1,275,000 | $1,553,000 | ' |
Accumulated amortization | ' | ' | 14,079,000 | 10,885,000 | ' | 32,614,000 | 26,255,000 | ' | 759,000 | 158,000 | ' | 6,324,000 | 5,915,000 | ' |
Impairment charges related to finite-lived intangible assets | ' | ' | ' | ' | 21,500,000 | ' | ' | 33,800,000 | ' | ' | 2,100,000 | ' | ' | 600,000 |
Intangible assets not subject to amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trademarks and trade names | 18,305,000 | 18,305,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, net | $67,342,000 | $77,446,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS (Details 3) (Ophir Division, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 29, 2012 |
Ophir Division | ' |
Intangible assets, excluding goodwill | ' |
Impairment charges related to acquired intangible assets | $62.60 |
GOODWILL_AND_INTANGIBLE_ASSETS5
GOODWILL AND INTANGIBLE ASSETS (Details 4) (Ophir Division, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 29, 2012 |
Ophir Division | ' |
Intangible assets, excluding goodwill | ' |
Impairment charges related to indefinite-lived trade names | $4.60 |
GOODWILL_AND_INTANGIBLE_ASSETS6
GOODWILL AND INTANGIBLE ASSETS (Details 5) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Intangible assets, excluding goodwill | ' | ' | ' |
Amortization expense related to intangible assets | $10,300,000 | $17,700,000 | $7,700,000 |
Estimated aggregate amortization expense | ' | ' | ' |
2014 | 8,556,000 | ' | ' |
2015 | 6,924,000 | ' | ' |
2016 | 6,538,000 | ' | ' |
2017 | 5,553,000 | ' | ' |
2018 | 3,429,000 | ' | ' |
Thereafter | 17,399,000 | ' | ' |
Total estimated future amortization expense | 48,399,000 | ' | ' |
Future IPR&D expense excluded from estimated future expense | $600,000 | ' | ' |
Weighted average | ' | ' | ' |
Intangible assets, excluding goodwill | ' | ' | ' |
Estimated useful life of intangible assets | '10 years 2 months 12 days | ' | ' |
INTEREST_AND_OTHER_EXPENSE_NET2
INTEREST AND OTHER EXPENSE, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
INTEREST AND OTHER EXPENSE, NET | ' | ' | ' |
Interest and dividend income | $221 | $269 | $565 |
Interest expense | -5,464 | -8,183 | -10,598 |
Bank and portfolio asset management fees | -830 | -708 | -779 |
Derivative gains (losses) | 709 | 565 | -132 |
Other, net | -1,126 | -502 | 394 |
Total | -6,490 | -8,559 | -10,550 |
Amortization of discount on convertible subordinated notes included in interest expense | ' | $12 | $3,891 |
STOCK_INCENTIVE_PLANS_AND_STOC2
STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Stock-based compensation | ' | ' | ' |
Awards vesting percentage | 33.33% | ' | ' |
Restricted stock and performance based restricted stock units | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Equivalent number of awards to be counted against the share limit | 1.7 | ' | ' |
Stock appreciation rights | ' | ' | ' |
Weighted average fair value and underlying assumptions for all stock appreciation rights | ' | ' | ' |
Fair value (in dollars per share) | $6.61 | $7.91 | $7.75 |
Expected annual volatility (as a percent) | 56.26% | 57.51% | 54.08% |
Risk-free interest rate (as a percent) | 0.85% | 0.78% | 1.59% |
Expected term | '5 years | '4 years 4 months 24 days | '4 years 6 months |
Stock options and stock appreciation rights | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Equivalent number of awards to be counted against the share limit | 1 | ' | ' |
Stock Options | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Options granted (in shares) | 0 | 0 | 0 |
2011 Plan | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Number of shares authorized for grant | 6,000,000 | ' | ' |
Term of awards | '7 years | ' | ' |
2011 Plan | Directors | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting period of share based compensation award | '1 year | ' | ' |
2011 Plan | Officers and employees | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting period of share based compensation award | '3 years | ' | ' |
Purchase Plan | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Purchase price offered to employees as a percentage of fair market value of stock | 95.00% | ' | ' |
STOCK_INCENTIVE_PLANS_AND_STOC3
STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Total stock-based compensation expense included in the Company's consolidated statements of operations | ' | ' | ' |
Stock-based compensation expense | $9,173,000 | $8,369,000 | $6,201,000 |
Forfeitures rate assumed in recognizing compensation expense (as a percent) | 12.50% | 12.50% | 15.40% |
Unrecognized total compensation cost | ' | ' | ' |
Unrecognized stock-based compensation expense related to non-vested stock-based awards | 15,800,000 | ' | ' |
Weighted-average period over which unrecognized stock-based compensation cost is expected to be recognized | '1 year 10 months 24 days | ' | ' |
Cost of sales | ' | ' | ' |
Total stock-based compensation expense included in the Company's consolidated statements of operations | ' | ' | ' |
Stock-based compensation expense | 938,000 | 693,000 | 488,000 |
Selling, general and administrative expenses | ' | ' | ' |
Total stock-based compensation expense included in the Company's consolidated statements of operations | ' | ' | ' |
Stock-based compensation expense | 7,142,000 | 6,740,000 | 5,029,000 |
Research and development expense | ' | ' | ' |
Total stock-based compensation expense included in the Company's consolidated statements of operations | ' | ' | ' |
Stock-based compensation expense | $1,093,000 | $936,000 | $684,000 |
STOCK_INCENTIVE_PLANS_AND_STOC4
STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION (Details 3) (Stock Options, USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Stock Options | ' | ' | ' |
Number of Options | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 1,010 | ' | ' |
Exercised (in shares) | -553 | ' | ' |
Expired (cancelled post-vesting) (in shares) | -23 | ' | ' |
Outstanding at the end of the period (in shares) | 434 | 1,010 | ' |
Vested and expected to vest at the end of the period (in shares) | 434 | ' | ' |
Exercisable at the end of the period (in shares) | 434 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $13.56 | ' | ' |
Exercised (in dollars per share) | $13.58 | ' | ' |
Expired (cancelled post-vesting) (in dollars per share) | $13.64 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $13.53 | $13.56 | ' |
Vested and expected to vest at the end of the period (in dollars per share) | $13.53 | ' | ' |
Exercisable at the end of the period (in dollars per share) | $13.53 | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' |
Outstanding at the end of the period | '1 year | ' | ' |
Vested and expected to vest at the end of the period | '1 year | ' | ' |
Exercisable at the end of the period | '1 year | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding at the end of the period (in dollars) | $2,033,000 | ' | ' |
Vested and expected to vest at the end of the period (in dollars) | 2,033,000 | ' | ' |
Exercisable at the end of the period (in dollars) | 2,033,000 | ' | ' |
Additional disclosures | ' | ' | ' |
Intrinsic value of options exercised | $1,300,000 | $1,000,000 | $900,000 |
STOCK_INCENTIVE_PLANS_AND_STOC5
STOCK INCENTIVE PLANS AND STOCK-BASED COMPENSATION (Details 4) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Additional disclosures | ' | ' | ' |
Common stock reserved for future issuance (in shares) | 5,687,439 | ' | ' |
Stock appreciation rights | ' | ' | ' |
Number of Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 1,550,000 | ' | ' |
Granted (in shares) | 655,000 | ' | ' |
Exercised (in shares) | -213,000 | ' | ' |
Forfeited (cancelled pre-vesting) (in shares) | -49,000 | ' | ' |
Expired (cancelled post-vesting) (in shares) | -21,000 | ' | ' |
Outstanding at the end of the period (in shares) | 1,922,000 | 1,550,000 | ' |
Vested and expected to vest at the end of the period (in shares) | 1,809,000 | ' | ' |
Exercisable at the end of the period (in shares) | 958,000 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $11.16 | ' | ' |
Granted (in dollars per share) | $13.77 | ' | ' |
Exercised (in dollars per share) | $6.46 | ' | ' |
Forfeited (cancelled pre-vesting) (in dollars per share) | $15.99 | ' | ' |
Expired (cancelled post-vesting) (in dollars per share) | $15.77 | ' | ' |
Outstanding at the end of the period(in dollars per share) | $12.40 | $11.16 | ' |
Vested and expected to vest at the end of the period (in dollars per shares) | $12.29 | ' | ' |
Exercisable at the end of the period (in dollars per share) | $9.91 | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' |
Outstanding at the end of the period | '4 years 7 months 6 days | ' | ' |
Vested and expected to vest at the end of the period | '4 years 7 months 6 days | ' | ' |
Exercisable at the end of the period | '3 years 2 months 12 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding at the end of the period | $11,176,000 | ' | ' |
Vested and expected to vest at the end of the period (in dollars) | 10,730,000 | ' | ' |
Exercisable at the end of the period | 7,960,000 | ' | ' |
Additional disclosures | ' | ' | ' |
Intrinsic value of stock appreciation rights exercised | 2,000,000 | 1,300,000 | 1,100,000 |
Grant date fair value of stock appreciation rights vested | $2,300,000 | $1,700,000 | $1,100,000 |
Restricted stock units | ' | ' | ' |
Number of Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 785,000 | ' | ' |
Granted (in shares) | 729,000 | ' | ' |
Vested (in shares) | -391,000 | ' | ' |
Forfeited (in shares) | -49,000 | ' | ' |
Outstanding at the end of the period (in shares) | 1,074,000 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $16.28 | ' | ' |
Granted (in dollars per share) | $13.77 | ' | ' |
Vested (in dollars per share) | $15.60 | ' | ' |
Forfeited (in dollars per share) | $15.99 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $14.83 | ' | ' |
2011 Plan | ' | ' | ' |
Additional disclosures | ' | ' | ' |
Shares reserved for the future grant of stock-based awards | 2,258,444 | ' | ' |
Purchase Plan | ' | ' | ' |
Additional disclosures | ' | ' | ' |
Common stock reserved for future issuance (in shares) | 1,982,503 | ' | ' |
DEBT_AND_LINES_OF_CREDIT_Detai
DEBT AND LINES OF CREDIT (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Feb. 28, 2007 |
Japanese revolving lines of credit | Japanese revolving lines of credit | Japanese receivables financing facilities | Japanese receivables financing facilities | Convertible notes | |||
Debts and Lines of credit | ' | ' | ' | ' | ' | ' | ' |
Total short-term borrowings | ' | ' | $666,000 | $5,231,000 | $615,000 | $415,000 | ' |
Total short-term borrowings | 4,861,000 | 32,985,000 | ' | ' | ' | ' | ' |
Current portion of long-term debt | 3,580,000 | 27,339,000 | ' | ' | ' | ' | ' |
Interest rate, stated rate (as a percent) | ' | ' | 1.16% | ' | 1.48% | ' | ' |
Maximum borrowing capacity | ' | ' | 1,600,000 | ' | 5,200,000 | ' | ' |
Amount of debt issued | ' | ' | ' | ' | ' | ' | $175,000,000 |
DEBT_AND_LINES_OF_CREDIT_Detai1
DEBT AND LINES OF CREDIT (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2012 | Dec. 31, 2011 |
Components of interest cost on convertible subordinated notes | ' | ' |
Amortization of debt discount | $12 | $3,891 |
Convertible notes | ' | ' |
Components of interest cost on convertible subordinated notes | ' | ' |
Contractual interest | 39 | 2,941 |
Amortization of debt discount | 12 | 3,891 |
Interest cost on convertible subordinated notes | $51 | $6,832 |
DEBT_AND_LINES_OF_CREDIT_Detai2
DEBT AND LINES OF CREDIT (Details 3) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Jun. 30, 2011 |
In Thousands, unless otherwise specified | |||
Debt and Lines of credit | ' | ' | ' |
Total long-term debt | $87,226 | $178,097 | ' |
Current portion of long-term debt | 3,580 | 27,339 | ' |
Total long-term debt, less current portion | 83,646 | 150,758 | ' |
U.S. term loan | ' | ' | ' |
Debt and Lines of credit | ' | ' | ' |
Total long-term debt | ' | 171,125 | ' |
U.S. revolving line of credit, maturing July 2018 | ' | ' | ' |
Debt and Lines of credit | ' | ' | ' |
Total long-term debt | 83,000 | ' | ' |
Interest rate, stated rate (as a percent) | 1.94% | ' | ' |
Israeli loans, maturing through October 2015 | ' | ' | ' |
Debt and Lines of credit | ' | ' | ' |
Total long-term debt | 2,110 | 3,591 | ' |
Israeli loans, maturing through October 2015 | Minimum | ' | ' | ' |
Debt and Lines of credit | ' | ' | ' |
Interest rate, stated rate (as a percent) | 2.97% | ' | ' |
Israeli loans, maturing through October 2015 | Maximum | ' | ' | ' |
Debt and Lines of credit | ' | ' | ' |
Interest rate, stated rate (as a percent) | 3.28% | ' | ' |
Japanese private placement bonds, maturing June 2014 | ' | ' | ' |
Debt and Lines of credit | ' | ' | ' |
Total long-term debt | 1,902 | 2,325 | ' |
Interest rate, stated rate (as a percent) | 0.62% | ' | 0.62% |
Japanese loans, maturing through June 2016 | ' | ' | ' |
Debt and Lines of credit | ' | ' | ' |
Total long-term debt | $214 | $1,056 | ' |
Japanese loans, maturing through June 2016 | Minimum | ' | ' | ' |
Debt and Lines of credit | ' | ' | ' |
Interest rate, stated rate (as a percent) | 1.25% | ' | ' |
Japanese loans, maturing through June 2016 | Maximum | ' | ' | ' |
Debt and Lines of credit | ' | ' | ' |
Interest rate, stated rate (as a percent) | 1.30% | ' | ' |
DEBT_AND_LINES_OF_CREDIT_Detai3
DEBT AND LINES OF CREDIT (Details 4) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||
Jul. 18, 2013 | Dec. 28, 2013 | Dec. 31, 2011 | Dec. 28, 2013 | Jun. 30, 2011 | Jul. 18, 2013 | Oct. 31, 2011 | Dec. 28, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Jul. 18, 2013 | Oct. 31, 2011 | |
USD ($) | USD ($) | USD ($) | Japanese private placement bonds, maturing June 2014 | Japanese private placement bonds, maturing June 2014 | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Term Loan | |
JPY (¥) | USD ($) | USD ($) | USD ($) | Maximum | Minimum | Base Rate | Base Rate | Base Rate | Eurodollar Rate | Eurodollar Rate | Eurodollar Rate | USD ($) | |||||
Maximum | Minimum | Maximum | Minimum | ||||||||||||||
Secured Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issued, value | ' | ' | ' | ' | ¥ 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $185,000,000 |
Maximum borrowing capacity | ' | ' | ' | ' | ' | 275,000,000 | 65,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of credit facility | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years |
Amount of Borrowings used for Repayment of Debt | 120,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of entire outstanding principal amount | 152,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of optional increase in aggregate principal amount of borrowings | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | 3,355,000 | 582,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured credit facility | ' | ' | ' | ' | ' | ' | ' | $83,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reference rate description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Base Rate | ' | ' | 'Eurodollar Rate | ' | ' | ' |
Margin on reference rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 0.50% | ' | 2.25% | 1.50% | ' |
Interest rate, stated rate (as a percent) | ' | ' | ' | 0.62% | 0.62% | ' | ' | 1.94% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee (as a percent) | ' | ' | ' | ' | ' | 0.30% | ' | ' | 0.40% | 0.25% | ' | ' | ' | ' | ' | ' | ' |
DEBT_AND_LINES_OF_CREDIT_Detai4
DEBT AND LINES OF CREDIT (Details 5) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Maturities of the company's debt obligations | ' |
2014 | $4,861 |
2015 | 627 |
2016 | 19 |
2018 | 83,000 |
Total maturities of debt obligations | $88,507 |
NET_INCOME_LOSS_PER_SHARE_Deta
NET INCOME (LOSS) PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
NET INCOME (LOSS) PER SHARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) attributable to Newport Corporation | $9,756 | $437 | $2,662 | $2,746 | ($112,805) | $7,636 | $9,154 | $6,592 | $15,601 | ($89,423) | $79,708 |
Shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding - basic | ' | ' | ' | ' | ' | ' | ' | ' | 39,010 | 38,133 | 37,407 |
Dilutive potential common shares, using treasury stock method | ' | ' | ' | ' | ' | ' | ' | ' | 548 | ' | 1,266 |
Weighted average shares outstanding - diluted | ' | ' | ' | ' | ' | ' | ' | ' | 39,558 | 38,133 | 38,673 |
Net income (loss) per share attributable to Newport Corporation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.25 | $0.01 | $0.07 | $0.07 | ($2.96) | $0.20 | $0.24 | $0.17 | $0.40 | ($2.35) | $2.13 |
Diluted (in dollars per share) | $0.24 | $0.01 | $0.07 | $0.07 | ($2.96) | $0.20 | $0.24 | $0.17 | $0.39 | ($2.35) | $2.06 |
NET_INCOME_LOSS_PER_SHARE_Deta1
NET INCOME (LOSS) PER SHARE (Details 2) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Stock options and stock appreciation rights | ' | ' | ' |
Stock-Based Benefit Plans | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 1.3 | 1.7 | 1.1 |
Restricted stock units | ' | ' | ' |
Stock-Based Benefit Plans | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | ' | 0.6 | 0.3 |
Common stock equivalents | ' | ' | ' |
Stock-Based Benefit Plans | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | ' | 0.7 | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Capital Leases, Payments Due By Period: | ' | ' | ' |
2014 | $184,000 | ' | ' |
2015 | 183,000 | ' | ' |
2016 | 182,000 | ' | ' |
2017 | 181,000 | ' | ' |
2018 | 3,000 | ' | ' |
Total minimum payments | 733,000 | ' | ' |
Less amount representing interest | -109,000 | ' | ' |
Present value of obligation | 624,000 | ' | ' |
Operating Leases, Payments Due By Period: | ' | ' | ' |
2014 | 10,370,000 | ' | ' |
2015 | 8,639,000 | ' | ' |
2016 | 7,321,000 | ' | ' |
2017 | 6,908,000 | ' | ' |
2018 | 6,978,000 | ' | ' |
Thereafter | 14,948,000 | ' | ' |
Total minimum payments | 55,164,000 | ' | ' |
Total Obligations, Payments Due By Period: | ' | ' | ' |
2014 | 10,554,000 | ' | ' |
2015 | 8,822,000 | ' | ' |
2016 | 7,503,000 | ' | ' |
2017 | 7,089,000 | ' | ' |
2018 | 6,981,000 | ' | ' |
Thereafter | 14,948,000 | ' | ' |
Total minimum payments | 55,897,000 | ' | ' |
Rental expense, net of sublease income | $11,500,000 | $10,600,000 | $9,100,000 |
Environmental reserves and other contingencies | ' | ' | ' |
Number of years for which investigations and remediation efforts have been ongoing | '30 years | ' | ' |
Remediation cost to which Spectra-Physics is responsible (as a percent) | 30.00% | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (Former employees of Spectra-Physics versus Spectra-Physics and Newport) | 1 Months Ended |
Nov. 30, 2010 | |
item | |
Former employees of Spectra-Physics versus Spectra-Physics and Newport | ' |
Loss Contingencies | ' |
Number of former employees who filed a suit | 2 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
United States and foreign income (loss) before income taxes | ' | ' | ' |
United States | $2,377 | $2,360 | $43,091 |
Foreign | 19,059 | -86,831 | 7,417 |
Income (loss) before income taxes | 21,436 | -84,471 | 50,508 |
Current: | ' | ' | ' |
Federal | 4,973 | 1,275 | -3,252 |
State | 546 | -7 | 1,204 |
Foreign | 4,662 | 2,929 | 2,523 |
Total | 10,181 | 4,197 | 475 |
Deferred: | ' | ' | ' |
Federal | -5,249 | 6,980 | -23,425 |
State | 283 | -3,085 | -6,760 |
Foreign | 483 | -2,613 | 556 |
Total | -4,483 | 1,282 | -29,629 |
Income tax provision (benefit) | 5,698 | 5,479 | -29,154 |
Income tax provision (benefit) based on income (loss) that differs from the amount obtained by applying statutory tax rate | ' | ' | ' |
Income tax provision (benefit) at statutory rate | 7,503 | -29,565 | 17,678 |
Increase (decrease) in taxes resulting from: | ' | ' | ' |
Impairment or reduction of goodwill | ' | 23,730 | 1 |
Non-deductible expenses | 490 | 153 | 1,700 |
State tax, net of federal benefit | 429 | -442 | 1,043 |
Foreign rate variance | -1,135 | 14,096 | -1,683 |
Income tax credits | -1,636 | -204 | -1,590 |
Valuation allowance | -873 | -19 | -41,715 |
Tax contingency | -114 | 292 | -1,808 |
Other, including deferred tax adjustment, net | 1,034 | -2,562 | -2,780 |
Income tax provision (benefit) | 5,698 | 5,479 | -29,154 |
Deferred tax assets: | ' | ' | ' |
Net operating loss carryforwards | 2,438 | 4,711 | ' |
Accruals and reserves not currently deductible | 18,340 | 19,199 | ' |
Tax credit carryforwards | 1,769 | 1,633 | ' |
Other basis differences | 9,029 | 7,511 | ' |
Total gross deferred tax assets | 31,576 | 33,054 | ' |
Valuation allowance | -2,262 | -3,135 | ' |
Total deferred tax assets, net of valuation allowance | 29,314 | 29,919 | ' |
Deferred tax liabilities: | ' | ' | ' |
Intangible assets | 14,025 | 17,011 | ' |
Property and equipment | 3,402 | 4,446 | ' |
Other basis differences | 463 | 368 | ' |
Total deferred tax liabilities | 17,890 | 21,825 | ' |
Net deferred tax assets | $11,424 | $8,094 | ' |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | |||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Optical Metrology Ltd., Israel | ||||
Valuation allowance | ' | ' | ' | ' |
Reduction to valuation allowance against deferred tax assets | $900,000 | $1,800,000 | $41,700,000 | ' |
Cumulative income position in the United States | ' | ' | '3 years | ' |
Valuation allowance recorded | ' | 1,900,000 | ' | ' |
Beneficial tax rate (as a percent) | ' | ' | ' | 0.00% |
Valuation allowance | $2,262,000 | $3,135,000 | ' | ' |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Other disclosures | ' | ' | ' |
Excess tax benefits from stock-based compensation | $3,972,000 | $655,000 | ' |
Unrealized excess tax benefits associated with certain share-based compensation | 17,500,000 | ' | ' |
Provision for federal or state income tax liability for undistributed earnings of the Company's historic and acquired foreign subsidiaries | 0 | ' | ' |
Undistributed earnings of the company's historic and acquired foreign subsidiaries | 32,900,000 | 22,600,000 | ' |
Net unrecognized tax benefits, which, if recognized, would affect the effective tax rate | 14,400,000 | 12,400,000 | ' |
Reconciliation of the beginning and ending amounts of unrecognized tax benefits | ' | ' | ' |
Unrecognized tax benefits at beginning of year | 15,173,000 | 17,735,000 | 9,953,000 |
Gross increases for tax positions of prior years | 832,000 | ' | 8,325,000 |
Gross decrease for tax positions of prior years | ' | -2,611,000 | ' |
Gross increases for tax positions of current year | 2,509,000 | 1,111,000 | 1,437,000 |
Current year acquisitions | ' | ' | 903,000 |
Settlements | ' | -1,006,000 | -2,370,000 |
Lapse of statute of limitations | -1,085,000 | -56,000 | -513,000 |
Unrecognized tax benefits at end of year | 17,429,000 | 15,173,000 | 17,735,000 |
Federal | ' | ' | ' |
Operating losses and tax credits carryforwards | ' | ' | ' |
Tax credit carryforwards | 19,800,000 | ' | ' |
State | ' | ' | ' |
Operating losses and tax credits carryforwards | ' | ' | ' |
Net operating loss carryforwards | 32,700,000 | ' | ' |
Tax credit carryforwards | 11,200,000 | ' | ' |
Foreign | ' | ' | ' |
Operating losses and tax credits carryforwards | ' | ' | ' |
Net operating loss carryforwards | $10,200,000 | ' | ' |
STOCKHOLDERS_EQUITY_TRANSACTIO1
STOCKHOLDERS' EQUITY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | 31-May-08 |
STOCKHOLDERS' EQUITY TRANSACTIONS | ' | ' | ' | ' |
Shares of common stock authorized to be repurchased | ' | ' | ' | 4,000,000 |
Purchases made under the program | 0 | 0 | 0 | ' |
Remaining shares to be repurchased | 3,900,000 | ' | ' | ' |
Stockholders' Equity Transactions | ' | ' | ' | ' |
Value of restricted stock units cancelled | $1,994 | $3,066 | $3,448 | ' |
Common Stock | ' | ' | ' | ' |
Stockholders' Equity Transactions | ' | ' | ' | ' |
Number of restricted stock units cancelled in payment of taxes owed by employees (in shares) | 118,000 | 180,000 | 211,000 | ' |
Value of restricted stock units cancelled | $14 | $22 | $25 | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Restricted Cash | $2,305 | $3,107 |
Marketable securities: | 8,219 | 8,498 |
Aggregate Fair Value | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Restricted Cash | 2,305 | 3,107 |
Marketable securities: | 8,219 | 8,498 |
Funds in investments and other assets | 18,384 | 17,305 |
Total assets | 29,177 | 29,665 |
Aggregate Fair Value | Option contracts | Fair Value Measurements, Recurring basis | ' | ' |
Liabilities: | ' | ' |
Derivative liabilities | 10 | 202 |
Aggregate Fair Value | Money market funds | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 8,052 | 4,244 |
Aggregate Fair Value | Certificates of deposit | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 167 | 4,254 |
Aggregate Fair Value | Option contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Derivatives: | 269 | 755 |
Aggregate Fair Value | Israeli pension funds | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Funds in investments and other assets | 11,489 | 10,690 |
Aggregate Fair Value | Group insurance contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Funds in investments and other assets | 6,895 | 6,615 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Restricted Cash | 2,305 | 3,107 |
Marketable securities: | 8,052 | 4,244 |
Total assets | 10,357 | 7,351 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 8,052 | 4,244 |
Significant Other Observable Inputs (Level 2) | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 167 | 4,254 |
Funds in investments and other assets | 18,384 | 17,305 |
Total assets | 18,820 | 22,314 |
Significant Other Observable Inputs (Level 2) | Option contracts | Fair Value Measurements, Recurring basis | ' | ' |
Liabilities: | ' | ' |
Derivative liabilities | 10 | 202 |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 167 | 4,254 |
Significant Other Observable Inputs (Level 2) | Option contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Derivatives: | 269 | 755 |
Significant Other Observable Inputs (Level 2) | Israeli pension funds | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Funds in investments and other assets | 11,489 | 10,690 |
Significant Other Observable Inputs (Level 2) | Group insurance contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Funds in investments and other assets | $6,895 | $6,615 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ' | ' |
Carrying amount and estimated fair values of financial instruments | ' | ' |
Short-term borrowings | $4,861 | $32,985 |
Long-term debt | 83,646 | 150,758 |
Fair Value | ' | ' |
Carrying amount and estimated fair values of financial instruments | ' | ' |
Short-term borrowings | 4,851 | 32,020 |
Long-term debt | $82,658 | $145,404 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
EMPLOYEE BENEFIT PLANS | ' | ' | ' |
Expense recognized for the defined contribution plans | $4,800,000 | $4,800,000 | $4,900,000 |
Net periodic benefit costs | ' | ' | ' |
Service cost | 2,692,000 | 2,807,000 | 1,178,000 |
Interest cost on projected benefit obligations | 653,000 | 746,000 | 832,000 |
Expected return on plan assets | -207,000 | -228,000 | -299,000 |
Amortization of net loss | 240,000 | 47,000 | 239,000 |
Total | 3,378,000 | 3,372,000 | 1,950,000 |
Components of changes in plan assets and benefit obligations recognized in other comprehensive loss | ' | ' | ' |
Net actuarial (gain) loss | -609,000 | 2,290,000 | -312,000 |
Amortization of net loss | -240,000 | -47,000 | -239,000 |
Total recognized in other comprehensive income (loss) | -849,000 | 2,243,000 | -551,000 |
Total recognized in net periodic benefit costs and other comprehensive income (loss) | 2,529,000 | 5,615,000 | 1,399,000 |
Change in projected benefit obligations: | ' | ' | ' |
Projected benefit obligations, beginning of year | 37,184,000 | 33,312,000 | ' |
Service cost | 2,692,000 | 2,807,000 | 1,178,000 |
Interest cost | 653,000 | 746,000 | 832,000 |
Actuarial (gain) loss | -1,197,000 | 3,000,000 | ' |
Benefits paid | -2,837,000 | -2,612,000 | ' |
Currency translation adjustments | -69,000 | -69,000 | ' |
Projected benefit obligations, end of year | 36,426,000 | 37,184,000 | 33,312,000 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets, beginning of year | 9,420,000 | 10,020,000 | ' |
Company contributions | 461,000 | 576,000 | ' |
Gain on plan assets | 48,000 | 141,000 | ' |
Benefits paid | -209,000 | -1,156,000 | ' |
Currency translation adjustments | -522,000 | -161,000 | ' |
Fair value of plan assets, end of year | 9,198,000 | 9,420,000 | 10,020,000 |
Funded status | -27,228,000 | -27,764,000 | ' |
Amounts recognized in the balance sheet: | ' | ' | ' |
Pension assets | 252,000 | 320,000 | ' |
Current portion of pension liabilities | -387,000 | -320,000 | ' |
Pension liabilities | -27,093,000 | -27,764,000 | ' |
Net amount recognized | -27,228,000 | -27,764,000 | ' |
Fair value of plan assets | 9,198,000 | 9,420,000 | 10,020,000 |
Amounts recognized in accumulated comprehensive loss: | ' | ' | ' |
Net actuarial loss | 3,539,000 | 4,637,000 | ' |
Income tax impact | -1,140,000 | -1,389,000 | ' |
Accumulated other comprehensive loss | 2,399,000 | 3,248,000 | ' |
Defined benefit plan pension plans with accumulated benefit obligations in excess of plan assets abstract | ' | ' | ' |
Aggregate projected benefit obligations | 36,400,000 | 37,200,000 | ' |
Aggregate accumulated benefit obligations | 33,700,000 | 33,800,000 | ' |
Aggregate fair value of plan assets | 9,200,000 | 9,400,000 | ' |
Foreign post retirement benefit pension plan | ' | ' | ' |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets, end of year | 9,198,000 | 9,420,000 | ' |
Amounts recognized in the balance sheet: | ' | ' | ' |
Fair value of plan assets | 9,198,000 | 9,420,000 | ' |
Foreign post retirement benefit pension plan | United Kingdom | ' | ' | ' |
Change in projected benefit obligations: | ' | ' | ' |
Projected benefit obligations, end of year | 3,100,000 | 3,000,000 | ' |
Amounts recognized in the balance sheet: | ' | ' | ' |
Pension assets | 3,300,000 | 3,300,000 | ' |
Foreign post retirement benefit pension plan | Israel | ' | ' | ' |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets, end of year | 11,500,000 | 10,700,000 | ' |
Amounts recognized in the balance sheet: | ' | ' | ' |
Pension assets | 11,500,000 | 10,700,000 | ' |
Fair value of plan assets | 11,500,000 | 10,700,000 | ' |
Amounts recognized in accumulated comprehensive loss: | ' | ' | ' |
Vested Benefit Obligation | 12,800,000 | 12,200,000 | ' |
Foreign post retirement benefit pension plan | Other Countries | ' | ' | ' |
Change in projected benefit obligations: | ' | ' | ' |
Projected benefit obligations, end of year | 20,600,000 | 21,900,000 | ' |
Amounts recognized in the balance sheet: | ' | ' | ' |
Pension assets | $5,900,000 | $6,100,000 | ' |
EMPLOYEE_BENEFIT_PLANS_Details1
EMPLOYEE BENEFIT PLANS (Details 2) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Estimated benefit payments for the next 10 years | ' | ' | ' |
2014 | $1,671,000 | ' | ' |
2015 | 1,309,000 | ' | ' |
2016 | 2,597,000 | ' | ' |
2017 | 1,213,000 | ' | ' |
2018 | 1,177,000 | ' | ' |
2019-2024 | 22,939,000 | ' | ' |
Estimated Benefit Payments | 30,906,000 | ' | ' |
Expected contribution in the next fiscal year | ' | ' | ' |
Expected contribution by employer in the next fiscal year | $1,800,000 | ' | ' |
Weighted-average rates used to determine the net periodic benefit costs | ' | ' | ' |
Discount rate (as a percent) | 1.87% | 2.29% | 2.44% |
Rate of increase in salary levels (as a percent) | 1.67% | 2.38% | 2.25% |
Expected long-term rate of return on assets (as a percent) | 1.89% | 1.59% | 1.59% |
Weighted-average rates used to determine projected benefit obligations | ' | ' | ' |
Discount rate (as a percent) | 1.96% | 1.87% | ' |
Rate of increase in salary levels (as a percent) | 1.58% | 1.67% | ' |
Expected long-term rate of return on assets (as a percent) | 1.83% | 1.89% | ' |
EMPLOYEE_BENEFIT_PLANS_Details2
EMPLOYEE BENEFIT PLANS (Details 3) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | Foreign post retirement benefit pension plan | |||
Cash | Cash | Bonds | Bonds | Equity securities | Insurance contracts | Insurance contracts | United Kingdom | Japan | France | Germany | Germany | Germany | Germany | Israel | Israel | ||||||
Minimum | Maximum | ||||||||||||||||||||
Other information about plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of plan assets | $9,198 | $9,420 | $10,020 | $9,198 | $9,420 | $575 | $2,249 | $1,256 | $1,410 | $1,429 | $5,938 | $5,761 | ' | ' | ' | $6,900 | $6,600 | ' | ' | $11,500 | $10,700 |
Plan assets as a percentage of total plan assets | ' | ' | ' | 100.00% | 100.00% | 6.00% | 24.00% | 13.00% | 15.00% | 16.00% | 65.00% | 61.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected long-term rate of return (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.70% | 1.50% | 1.20% | ' | ' | 2.25% | 4.00% | ' | ' |
BUSINESS_SEGMENT_INFORMATION_D
BUSINESS SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
item | item | ||||||||||
BUSINESS SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 3 | ' |
Segment Reporting Information, by Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales to external customers | $154,176 | $139,037 | $134,234 | $132,607 | $141,643 | $142,881 | $153,655 | $157,167 | $560,054 | $595,346 | $545,054 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 30,478 | 39,632 | 23,999 |
Segment income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 31,281 | -82,160 | 53,823 |
Segment assets | 565,229 | ' | ' | ' | 620,961 | ' | ' | ' | 565,229 | 620,961 | 764,069 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 16,319 | 11,529 | 13,513 |
Impairment charge related to goodwill, intangible assets and other long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,853 | ' |
Photonics | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, by Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 230,303 | 237,601 | 204,341 |
Impairment charge related to goodwill, intangible assets and other long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,600 | ' |
Lasers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, by Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 165,788 | 181,426 | 191,528 |
Optics | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, by Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 163,963 | 176,319 | 149,185 |
Impairment charge related to goodwill, intangible assets and other long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,300 | ' |
Operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, by Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 15,805 | 16,324 | 11,242 |
Segment income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 80,478 | -33,531 | 95,419 |
Segment assets | 436,016 | ' | ' | ' | 452,224 | ' | ' | ' | 436,016 | 452,224 | 633,171 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 12,230 | 7,976 | 9,290 |
Operating segments | Photonics | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, by Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 4,035 | 3,973 | 3,215 |
Segment income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 49,984 | -39,191 | 45,715 |
Segment assets | 200,584 | ' | ' | ' | 202,881 | ' | ' | ' | 200,584 | 202,881 | 263,685 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 3,561 | 1,540 | 2,436 |
Operating segments | Lasers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, by Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,534 | 4,192 | 3,632 |
Segment income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 18,746 | 20,508 | 19,150 |
Segment assets | 111,651 | ' | ' | ' | 114,357 | ' | ' | ' | 111,651 | 114,357 | 124,231 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 2,341 | 2,381 | 2,423 |
Operating segments | Optics | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, by Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 8,236 | 8,159 | 4,395 |
Segment income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 11,748 | -14,848 | 30,554 |
Segment assets | 123,781 | ' | ' | ' | 134,986 | ' | ' | ' | 123,781 | 134,986 | 245,255 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | $6,328 | $4,055 | $4,431 |
BUSINESS_SEGMENT_INFORMATION_D1
BUSINESS SEGMENT INFORMATION (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Reconciliation of segment income to consolidated income before income taxes | ' | ' | ' |
Segment income (loss) | $31,281 | ($82,160) | $53,823 |
Gain (loss) on sale of assets | -4,725 | 6,248 | ' |
Foreign currency translation gain from sale of subsidiary | ' | ' | 7,198 |
Recovery of note receivable and other amounts related to previously discontinued operations, net | ' | ' | 619 |
Loss on extinguishment of debt | -3,355 | ' | -582 |
Interest and other expense, net | -6,490 | -8,559 | -10,550 |
Income (loss) before income taxes | 21,436 | -84,471 | 50,508 |
Operating segments | ' | ' | ' |
Reconciliation of segment income to consolidated income before income taxes | ' | ' | ' |
Segment income (loss) | 80,478 | -33,531 | 95,419 |
Unallocated amount to segment | ' | ' | ' |
Reconciliation of segment income to consolidated income before income taxes | ' | ' | ' |
Unallocated operating expenses | ($44,472) | ($48,629) | ($41,596) |
BUSINESS_SEGMENT_INFORMATION_D2
BUSINESS SEGMENT INFORMATION (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Reconciliation of segment depreciation and amortization, total assets and expenditures to consolidated amounts | ' | ' | ' |
Depreciation, Depletion and Amortization | $30,478 | $39,632 | $23,999 |
Assets | 565,229 | 620,961 | 764,069 |
Expenditures for long-lived assets | 16,319 | 11,529 | 13,513 |
Operating segments | ' | ' | ' |
Reconciliation of segment depreciation and amortization, total assets and expenditures to consolidated amounts | ' | ' | ' |
Depreciation, Depletion and Amortization | 15,805 | 16,324 | 11,242 |
Assets | 436,016 | 452,224 | 633,171 |
Expenditures for long-lived assets | 12,230 | 7,976 | 9,290 |
Unallocated amount to segment | ' | ' | ' |
Reconciliation of segment depreciation and amortization, total assets and expenditures to consolidated amounts | ' | ' | ' |
Depreciation, Depletion and Amortization | 14,673 | 23,308 | 12,757 |
Assets | 129,213 | 168,737 | 130,898 |
Expenditures for long-lived assets | $4,089 | $3,553 | $4,223 |
BUSINESS_SEGMENT_INFORMATION_D3
BUSINESS SEGMENT INFORMATION (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Net sales and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $154,176 | $139,037 | $134,234 | $132,607 | $141,643 | $142,881 | $153,655 | $157,167 | $560,054 | $595,346 | $545,054 |
Long-lived assets | 80,516 | ' | ' | ' | 82,843 | ' | ' | ' | 80,516 | 82,843 | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 218,298 | 243,674 | 240,736 |
Long-lived assets | 38,328 | ' | ' | ' | 42,710 | ' | ' | ' | 38,328 | 42,710 | ' |
Germany | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 75,119 | 73,383 | 61,580 |
Other European countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 81,178 | 78,428 | 72,957 |
Japan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 51,761 | 62,947 | 52,971 |
Other Pacific Rim countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 95,779 | 94,313 | 80,731 |
Rest of world | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 37,919 | 42,601 | 36,079 |
Long-lived assets | 2,932 | ' | ' | ' | 3,541 | ' | ' | ' | 2,932 | 3,541 | ' |
Israel | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 24,667 | ' | ' | ' | 26,690 | ' | ' | ' | 24,667 | 26,690 | ' |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales and long-lived assets by geographic region | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | $14,589 | ' | ' | ' | $9,902 | ' | ' | ' | $14,589 | $9,902 | ' |
FOREIGN_CURRENCY_TRANSLATION_G1
FOREIGN CURRENCY TRANSLATION GAIN (Details) | 12 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2001 | |
USD ($) | EUR (€) | |
FOREIGN CURRENCY TRANSLATION GAIN | ' | ' |
Loan given to French subsidiary | ' | € 16,600,000 |
Foreign currency translation gain | $7,198,000 | ' |
GAIN_ON_SALE_OF_INVESTMENTS_De
GAIN ON SALE OF INVESTMENTS (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 29, 2012 |
GAIN ON SALE OF INVESTMENTS | ' |
Carrying value of cost method investments | $0 |
Proceeds from sale of investment | 5.3 |
Redemption value of cost method investments | $1 |
SUPPLEMENTARY_QUARTERLY_CONSOL2
SUPPLEMENTARY QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
SUPPLEMENTARY QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $154,176 | $139,037 | $134,234 | $132,607 | $141,643 | $142,881 | $153,655 | $157,167 | $560,054 | $595,346 | $545,054 |
Gross profit | 65,613 | 59,731 | 57,237 | 55,132 | 62,828 | 62,808 | 66,883 | 68,069 | 237,713 | 260,588 | 239,729 |
Net income (loss) attributable to Newport Corporation | $9,756 | $437 | $2,662 | $2,746 | ($112,805) | $7,636 | $9,154 | $6,592 | $15,601 | ($89,423) | $79,708 |
Basic income (loss) per share attributable to Newport Corporation (in dollars per share) | $0.25 | $0.01 | $0.07 | $0.07 | ($2.96) | $0.20 | $0.24 | $0.17 | $0.40 | ($2.35) | $2.13 |
Diluted income (loss) per share attributable to Newport Corporation (in dollars per share) | $0.24 | $0.01 | $0.07 | $0.07 | ($2.96) | $0.20 | $0.24 | $0.17 | $0.39 | ($2.35) | $2.06 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (Allowance for doubtful accounts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts | ' | ' | ' |
Movement in Schedule II Valuation and Qualifying Accounts | ' | ' | ' |
Balance at Beginning of Period | $1,548 | $2,532 | $2,587 |
Additions Charged to Costs and Expenses | 404 | 390 | 358 |
Write-Offs | -493 | -1,120 | -957 |
Other Charges Add/Deduct | -18 | -254 | 544 |
Balance at End of Period | $1,441 | $1,548 | $2,532 |