Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 29, 2014 | Apr. 25, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'NEWPORT CORP | ' |
Entity Central Index Key | '0000225263 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 29-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 39,856,658 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Consolidated Statements of Income and Comprehensive Income | ' | ' |
Net sales | $146,890 | $132,607 |
Cost of sales | 81,431 | 77,475 |
Gross profit | 65,459 | 55,132 |
Selling, general and administrative expenses | 39,206 | 37,608 |
Research and development expense | 14,138 | 13,101 |
Gain on sale of assets | -411 | ' |
Operating income | 12,526 | 4,423 |
Interest and other expense, net | -976 | -2,137 |
Income before income taxes | 11,550 | 2,286 |
Income tax provision (benefit) | 3,609 | -448 |
Net income | 7,941 | 2,734 |
Net income (loss) attributable to non-controlling interests | 55 | -12 |
Net income attributable to Newport Corporation | 7,886 | 2,746 |
Net income | 7,941 | 2,734 |
Other comprehensive income: | ' | ' |
Foreign currency translation gains (losses) | 461 | -2,452 |
Unrecognized net pension gains, net of tax | 43 | 190 |
Unrealized gains (losses) on marketable securities, net of tax | 20 | -98 |
Comprehensive income | 8,465 | 374 |
Comprehensive income (loss) attributable to non-controlling interests | 69 | -61 |
Comprehensive income attributable to Newport Corporation | 8,396 | 435 |
Comprehensive income | $8,465 | $374 |
Net income per share attributable to Newport Corporation: | ' | ' |
Basic (in dollars per share) | $0.20 | $0.07 |
Diluted (in dollars per share) | $0.19 | $0.07 |
Shares used in per share calculations: | ' | ' |
Basic (in shares) | 39,525 | 38,601 |
Diluted (in shares) | 40,499 | 39,260 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $52,602 | $53,710 |
Restricted cash | 2,397 | 2,305 |
Marketable securities | 8,191 | 8,219 |
Accounts receivable, net of allowance for doubtful accounts of $1,423 and $1,441 as of March 29, 2014 and December 28, 2013, respectively | 96,629 | 96,388 |
Inventories | 105,284 | 103,383 |
Deferred income taxes | 22,521 | 22,437 |
Prepaid expenses and other current assets | 18,152 | 14,769 |
Total current assets | 305,776 | 301,211 |
Property and equipment, net | 81,237 | 80,516 |
Goodwill | 78,806 | 78,801 |
Deferred income taxes | 4,481 | 4,474 |
Intangible assets, net | 64,897 | 67,342 |
Investments and other assets | 32,494 | 32,885 |
Total assets | 567,691 | 565,229 |
Current liabilities: | ' | ' |
Short-term borrowings, net | 4,991 | 4,861 |
Accounts payable | 32,264 | 31,714 |
Accrued payroll and related expenses | 30,938 | 31,015 |
Accrued expenses and other current liabilities | 37,522 | 35,341 |
Total current liabilities | 105,715 | 102,931 |
Long-term debt, net | 70,988 | 83,646 |
Pension liabilities | 27,191 | 27,093 |
Deferred income taxes and other liabilities | 22,760 | 23,182 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, par value $0.1167 per share, 200,000,000 shares authorized; 39,586,833 and 39,394,196 shares issued and outstanding as of March 29, 2014 and December 28, 2013, respectively | 4,622 | 4,598 |
Capital in excess of par value | 464,183 | 459,562 |
Accumulated other comprehensive loss | -3,109 | -3,619 |
Accumulated deficit | -125,687 | -133,573 |
Total stockholders' equity of Newport Corporation | 340,009 | 326,968 |
Non-controlling interests | 1,028 | 1,409 |
Total stockholders' equity | 341,037 | 328,377 |
Total Liabilities and Stockholders' equity | $567,691 | $565,229 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $1,423 | $1,441 |
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 | 39,586,833 | 39,394,196 |
Common stock, shares outstanding | 39,586,833 | 39,394,196 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $7,941 | $2,734 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 7,160 | 7,965 |
Gain on sale of assets | -411 | ' |
Provision for losses on inventories | 984 | 2,334 |
Stock-based compensation expense | 2,337 | 2,269 |
Provision for doubtful accounts | 159 | 15 |
Loss on disposal of property and equipment | 286 | 61 |
Deferred income taxes | -336 | -8 |
Increase (decrease) in cash, net of divestiture due to changes in: | ' | ' |
Accounts receivable | -3,155 | -1,667 |
Inventories | -6,471 | -2,363 |
Prepaid expenses and other assets | -2,947 | -564 |
Accounts payable | 752 | -330 |
Accrued payroll and related expenses | 134 | -2,379 |
Accrued expenses and other liabilities | 3,856 | -289 |
Other long-term liabilities | -909 | -328 |
Net cash provided by operating activities | 9,380 | 7,450 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -4,950 | -3,951 |
Restricted cash | -47 | -53 |
Proceeds from divestiture of business | 5,030 | ' |
Purchase of marketable securities | -590 | -2,346 |
Proceeds from the sale or maturity of marketable securities | 395 | 1,481 |
Net cash used in investing activities | -162 | -4,869 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repayment of long-term debt and obligations under capital leases | -12,961 | -11,892 |
Proceeds from short-term borrowings | 1,016 | 1,599 |
Repayment of short-term borrowings | -701 | -876 |
Purchase of non-controlling interest | -931 | ' |
Proceeds from the issuance of common stock under employee plans | 2,789 | 4,010 |
Net cash used in financing activities | -10,788 | -7,159 |
Impact of foreign exchange rate changes on cash balances | 462 | -343 |
Net decrease in cash and cash equivalents | -1,108 | -4,921 |
Cash and cash equivalents at beginning of period | 53,710 | 88,767 |
Cash and cash equivalents at end of period | 52,602 | 83,846 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid during the period for interest | 589 | 1,927 |
Cash paid during the period for income taxes, net | 2,007 | 799 |
Property and equipment accrued in accounts payable | $450 | $178 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 29, 2014 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
NOTE 1 BASIS OF PRESENTATION | |
The accompanying unaudited consolidated financial statements include the accounts of Newport Corporation and its subsidiaries (collectively referred to as the Company) and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal and recurring accruals) considered necessary for a fair presentation have been included. All intercompany transactions and balances have been eliminated in consolidation. | |
The accompanying unaudited consolidated financial statements do not include certain footnotes and financial presentations normally required under generally accepted accounting principles (GAAP) and, therefore, should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 28, 2013. The results for the interim periods are not necessarily indicative of the results the Company will have for the full year ending January 3, 2015. The December 28, 2013 balances reported herein are derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2013. | |
Non-Controlling Interests | |
During the first quarter of 2014, the Company purchased all shares owned by the holders of the non-controlling interests in its Optical Metrology Ltd. subsidiary for $0.9 million. | |
In May 2014, the Company purchased all shares owned by the holder of the non-controlling interest in its Ophir Japan Ltd. subsidiary for $0.9 million. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 29, 2014 | |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
NOTE 2 RECENT ACCOUNTING PRONOUNCEMENTS | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposal of Components of an Entity, which updates the guidance in Topics 205 and 360. ASU No. 2014-08 requires that the disposal of a component of an entity or a group of components of an entity be reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the entity’s operations and financial results. ASU No. 2014-08 also requires additional disclosures regarding discontinued operations. ASU No. 2014-08 is required to be applied prospectively for fiscal years and interim periods beginning after December 15, 2014. The adoption of ASU No. 2014-08 is not expected to have a material impact on the Company’s financial position or results of operations. |
DIVESTITURE
DIVESTITURE | 3 Months Ended |
Mar. 29, 2014 | |
DIVESTITURE | ' |
DIVESTITURE | ' |
NOTE 3 DIVESTITURE | |
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 $5.7 million, consisting of an initial purchase price of $6.0 million, less an adjustment of $0.3 million based on the net assets of the business at closing. The initial purchase price consisted of $5.35 million in cash and an unsecured note receivable of $0.65 million, and the net asset adjustment was repaid to the purchaser in cash. 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. During the first quarter of 2014, the Company recognized a gain of $0.4 million to reduce the loss on the sale to $4.3 million, based on the final terms of the transaction and the net assets of the business on the closing date. The net sales, operating income and cash flows of this business were not significant to the operations of the Company. |
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
MARKETABLE SECURITIES | ' | |||||||||
MARKETABLE SECURITIES | ' | |||||||||
NOTE 4 MARKETABLE SECURITIES | ||||||||||
All marketable securities of the Company 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 the aggregate amount of unrealized gains and losses in available for sale securities at March 29, 2014 were as follows: | ||||||||||
(In thousands) | Aggregate | Aggregate Amount of | ||||||||
Unrealized | ||||||||||
Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 7,997 | $ | 63 | $ | - | ||||
Certificates of deposit | 194 | - | - | |||||||
$ | 8,191 | $ | 63 | $ | - | |||||
The aggregate fair value of available for sale securities and the aggregate amount of unrealized gains and losses in available for sale securities at December 28, 2013 were as follows: | ||||||||||
(In thousands) | Aggregate | Aggregate Amount of | ||||||||
Unrealized | ||||||||||
Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 8,052 | $ | 91 | $ | - | ||||
Certificates of deposit | 167 | - | - | |||||||
$ | 8,219 | $ | 91 | $ | - | |||||
The Company’s certificates of deposit mature within one year. Money market funds do not have a maturity date. | ||||||||||
There were no realized gains or losses on the sale of available for sale securities for the three months ended March 29, 2014 or the three months ended March 30, 2013. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||
Mar. 29, 2014 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
NOTE 5 FAIR VALUE MEASUREMENTS | ||||||||||||||
Accounting Standards Codification (ASC) 820-10, Fair Value Measurements and Disclosures, 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 or based on other observable inputs. | ||||||||||||||
The Company’s assets and liabilities 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 March 29, 2014. | ||||||||||||||
(In thousands) | Fair Value Measurements at Reporting Date Using | |||||||||||||
Description | March 29, 2014 | Quoted Prices in | Significant Other | Significant | ||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||
(Level 1) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||
Restricted Cash | $ | 2,397 | $ | 2,397 | $ | - | $ | - | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 7,997 | 7,997 | - | - | ||||||||||
Certificates of deposit | 194 | - | 194 | - | ||||||||||
8,191 | 7,997 | 194 | - | |||||||||||
Derivative assets: | ||||||||||||||
Option contracts | 137 | - | 137 | - | ||||||||||
Forward contracts | 2 | - | 2 | - | ||||||||||
139 | - | 139 | - | |||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 11,299 | - | 11,299 | - | ||||||||||
Group insurance contracts | 7,100 | - | 7,100 | - | ||||||||||
18,399 | - | 18,399 | - | |||||||||||
$ | 29,126 | $ | 10,394 | $ | 18,732 | $ | - | |||||||
Liabilities: | ||||||||||||||
Derivative liabilities: | ||||||||||||||
Option contracts | 29 | - | 29 | - | ||||||||||
The Company’s assets and liabilities 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. | ||||||||||||||
(In thousands) | Fair Value Measurements at Reporting Date Using | |||||||||||||
Description | December 28, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||
Identical Assets | (Level 2) | Inputs (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
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 | - | |||||||||||
Derivative assets: | ||||||||||||||
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: | ||||||||||||||
Derivative liabilities: | ||||||||||||||
Option contracts | 10 | - | 10 | - | ||||||||||
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 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: | ||||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||
(In thousands) | Carrying | Carrying | ||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||
Short-term borrowings | $ | 4,991 | $ | 4,987 | $ | 4,861 | $ | 4,851 | ||||||
Long-term debt | $ | 70,988 | $ | 70,051 | $ | 83,646 | $ | 82,658 | ||||||
SUPPLEMENTAL_BALANCE_SHEET_INF
SUPPLEMENTAL BALANCE SHEET INFORMATION | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | |||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | |||||||
NOTE 6 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: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Raw materials and purchased parts | $ | 61,733 | $ | 61,819 | ||||
Work in process | 19,914 | 19,577 | ||||||
Finished goods | 23,637 | 21,987 | ||||||
Short-term inventories | $ | 105,284 | $ | 103,383 | ||||
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: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Raw materials and purchased parts | $ | 2,906 | $ | 1,850 | ||||
Finished goods | 3,101 | 4,489 | ||||||
Long-term inventories | $ | 6,007 | $ | 6,339 | ||||
Accrued Warranty Obligations | ||||||||
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. 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: | ||||||||
Three Months Ended | ||||||||
(In thousands) | March 29, | March 30, | ||||||
2014 | 2013 | |||||||
Balance at beginning of year | $ | 3,285 | $ | 3,528 | ||||
Additions charged to cost of sales | 906 | 596 | ||||||
Warranty claims | -781 | -742 | ||||||
Balance at end of period | $ | 3,410 | $ | 3,382 | ||||
Accrued Expenses and Other Current Liabilities | ||||||||
Accrued expenses and other current liabilities were as follows: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Deferred revenue | $ | 14,252 | $ | 13,609 | ||||
Deferred lease liability | 5,365 | 5,448 | ||||||
Accrued and deferred taxes | 5,309 | 3,130 | ||||||
Short-term accrued warranty obligations | 3,229 | 3,093 | ||||||
Other | 9,367 | 10,061 | ||||||
$ | 37,522 | $ | 35,341 | |||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated other comprehensive loss consisted of the following: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Cumulative foreign currency translation losses | $ | -1,849 | $ | -2,296 | ||||
Unrecognized net pension losses, net of tax | -2,356 | -2,399 | ||||||
Unrealized gains on marketable securities, net of tax | 1,096 | 1,076 | ||||||
$ | -3,109 | $ | -3,619 | |||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
INTANGIBLE ASSETS | ' | |||||||
INTANGIBLE ASSETS | ' | |||||||
NOTE 7 INTANGIBLE ASSETS | ||||||||
Intangible assets were as follows: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Intangible assets subject to amortization: | ||||||||
Developed technology, net of accumulated amortization of $14,870 and $14,079 as of March 29, 2014 and December 28, 2013, respectively | $ | 26,016 | $ | 26,805 | ||||
Customer relationships, net of accumulated amortization of $34,011 and $32,614 as of March 29, 2014 and December 28, 2013, respectively | 12,398 | 13,795 | ||||||
In-process research and development, net of accumulated amortization of $941 and $759 as of March 29, 2014 and December 28, 2013, respectively | 6,981 | 7,162 | ||||||
Other, net of accumulated amortization of $6,404 and $6,324 as of March 29, 2013 and December 28, 2013, respectively | 1,197 | 1,275 | ||||||
46,592 | 49,037 | |||||||
Intangible assets not subject to amortization: | ||||||||
Trademarks and trade names | 18,305 | 18,305 | ||||||
Intangible assets, net | $ | 64,897 | $ | 67,342 | ||||
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 generally 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. | ||||||||
Amortization expense related to intangible assets totaled $2.5 million for the three months ended March 29, 2014, and $2.6 million for the three months ended March 30, 2013. | ||||||||
Estimated aggregate amortization expense for future fiscal years is as follows: | ||||||||
(In thousands) | Estimated | |||||||
Aggregate | ||||||||
Amortization | ||||||||
Expense | ||||||||
2014 (remaining) | $ | 6,109 | ||||||
2015 | 6,925 | |||||||
2016 | 6,539 | |||||||
2017 | 5,553 | |||||||
2018 | 3,429 | |||||||
Thereafter | 17,399 | |||||||
$ | 45,954 | |||||||
The Company has excluded $0.6 million of estimated amortization expense related to certain in-process research and development from the table above, as it was uncertain as of March 29, 2014 when the technology will be completed and when the amortization will begin. |
INTEREST_AND_OTHER_EXPENSE_NET
INTEREST AND OTHER EXPENSE, NET | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
INTEREST AND OTHER EXPENSE, NET | ' | |||||||
INTEREST AND OTHER EXPENSE, NET | ' | |||||||
NOTE 8 INTEREST AND OTHER EXPENSE, NET | ||||||||
Interest and other expense, net, was as follows: | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Interest expense | $ | -661 | $ | -1,789 | ||||
Interest and dividend income | 53 | 49 | ||||||
Derivative gain (loss) | -12 | 202 | ||||||
Bank and portfolio asset management fees | -260 | -192 | ||||||
Other expense, net | -96 | -407 | ||||||
$ | -976 | $ | -2,137 |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
STOCK-BASED COMPENSATION | ' | |||||||
STOCK-BASED COMPENSATION | ' | |||||||
NOTE 9 STOCK-BASED COMPENSATION | ||||||||
The total stock-based compensation expense included in the Company’s consolidated statements of income and comprehensive income was as follows: | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Cost of sales | $ | 212 | $ | 209 | ||||
Selling, general and administrative expenses | 1,836 | 1,820 | ||||||
Research and development expense | 289 | 240 | ||||||
$ | 2,337 | $ | 2,269 | |||||
At March 29, 2014, 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 $11.3 million, net of estimated forfeitures. This future compensation expense will be amortized over a weighted-average period of 1.7 years using the straight-line attribution method. The actual compensation expense that the Company will recognize in the future related to unvested stock-based awards outstanding at March 29, 2014 will be adjusted for actual forfeitures. | ||||||||
At March 29, 2014, 0.3 million stock options with a weighted-average exercise price of $13.48 per share, intrinsic value of $1.8 million and remaining contractual term of 0.9 years were outstanding and were exercisable. At March 29, 2014, 1.8 million stock-settled stock appreciation rights with a weighted-average base value of $12.44 per share, intrinsic value of $13.6 million and remaining contractual term of 4.4 years were outstanding, of which 0.9 million stock-settled stock appreciation rights with a weighted-average base value of $9.83 per share, intrinsic value of $8.8 million and remaining contractual term of 3.0 years were exercisable. |
DEBT_AND_LINES_OF_CREDIT
DEBT AND LINES OF CREDIT | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
DEBT AND LINES OF CREDIT | ' | |||||||
DEBT AND LINES OF CREDIT | ' | |||||||
NOTE 10 DEBT AND LINES OF CREDIT | ||||||||
Total short-term debt was as follows: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Japanese revolving lines of credit | $ | 681 | $ | 666 | ||||
Japanese receivables financing facilities | 945 | 615 | ||||||
Current portion of long-term debt | 3,365 | 3,580 | ||||||
Total short-term borrowings | $ | 4,991 | $ | 4,861 | ||||
Total long-term debt was as follows: | ||||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
U.S. revolving line of credit expiring July 2018 | $ | 70,500 | $ | 83,000 | ||||
Israeli loans due through October 2015 | 1,735 | 2,110 | ||||||
Japanese private placement bonds due June 2014 | 1,945 | 1,902 | ||||||
Japanese loans due through June 2016 | 173 | 214 | ||||||
Total long-term debt | 74,353 | 87,226 | ||||||
Current portion of long-term debt | 3,365 | 3,580 | ||||||
Total long-term debt, less current portion | $ | 70,988 | $ | 83,646 |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
NET INCOME PER SHARE | ' | |||||||
NET INCOME PER SHARE | ' | |||||||
NOTE 11 NET INCOME PER SHARE | ||||||||
The following table sets forth the computation of basic and diluted net income per share: | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
(In thousands, except per share data) | 2014 | 2013 | ||||||
Net income attributable to Newport Corporation | $ | 7,886 | $ | 2,746 | ||||
Shares: | ||||||||
Weighted average shares outstanding - basic | 39,525 | 38,601 | ||||||
Dilutive potential common shares, using treasury stock method | 974 | 659 | ||||||
Weighted average shares outstanding - diluted | 40,499 | 39,260 | ||||||
Net income per share attributable to Newport Corporation: | ||||||||
Basic | $ | 0.2 | $ | 0.07 | ||||
Diluted | $ | 0.19 | $ | 0.07 | ||||
For the three months ended March 29, 2014, an aggregate of 0.1 million stock options and stock appreciation rights, and for the three months ended March 30, 2013, an aggregate of 0.9 million stock options and stock appreciation rights, were excluded from the computations of diluted net income per share, as their inclusion would have been antidilutive. For the three months ended March 30, 2013, 0.4 million restricted stock units were excluded from the computations of diluted net income 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. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 29, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
NOTE 12 INCOME TAXES | |
Under ASC 740-270, Income Taxes – Interim Reporting, the Company is required to evaluate and make any necessary adjustments to its effective tax rate each quarter as new information is obtained that may affect the assumptions used to estimate its annual effective tax rate. The Company’s assumptions relate to factors such as the projected level and mix of pre-tax earnings in the various tax jurisdictions in which it operates, valuation allowances against deferred tax assets, the recognition or derecognition of tax benefits related to uncertain tax positions, expected utilization of tax credits and changes in or the interpretation of tax laws in jurisdictions in which the Company conducts business. In addition, jurisdictions for which the Company has projected losses for the year, or a year-to-date loss, where no tax benefit can be recognized, are excluded from the calculation of the estimated annual effective tax rate. Changes in the assumptions and the inclusion or exclusion of certain jurisdictions could result in a higher or lower effective tax rate during a particular quarter. | |
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 and operating loss and tax credit carryforwards. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date. 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. Realization of deferred tax assets is principally dependent upon the achievement of future taxable income, the estimation of which requires significant management judgment. As of March 29, 2014, the Company could not determine that it is more likely than not that deferred tax assets related to certain domestic and foreign net operating loss carryforwards and certain other miscellaneous domestic and 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. | |
The Company utilizes ASC 740-10-25, Income Taxes – Recognition, which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under ASC 740-10-25, tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. As a multi-national corporation, the Company is subject to taxation in many jurisdictions, and the calculation of its tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions. If the Company ultimately determines that the payment of these liabilities will be unnecessary, it reverses the liability and recognizes a tax benefit during the period in which it determines the liability no longer applies. Conversely, the Company records additional tax charges in a period in which it determines that a recorded tax liability is less than it expects the ultimate assessment to be. As a result of these adjustments, the Company’s effective tax rate in a given financial statement period could be materially affected. As of March 29, 2014, the Company had $17.3 million of gross unrecognized tax benefits and a total of $14.3 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 for the three months ended March 29, 2014. |
STOCKHOLDERS_EQUITY_TRANSACTIO
STOCKHOLDERS' EQUITY TRANSACTIONS | 3 Months Ended |
Mar. 29, 2014 | |
STOCKHOLDERS' EQUITY TRANSACTIONS | ' |
STOCKHOLDERS' EQUITY TRANSACTIONS | ' |
NOTE 13 STOCKHOLDERS’ EQUITY TRANSACTIONS | |
In May 2008, the Board of Directors of the Company approved a share repurchase program, authorizing the purchase of up to 4.0 million shares of the Company’s common stock. No purchases were made under this program during the three months ended March 29, 2014. As of March 29, 2014, 3.9 million shares remained available for purchase under the program. The terms of the Company’s Credit Agreement dated July 18, 2013 permit the Company to purchase shares under the repurchase program during the term of such facility, subject to certain conditions and limitations. |
DEFINED_BENEFIT_PENSION_PLANS
DEFINED BENEFIT PENSION PLANS | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
DEFINED BENEFIT PENSION PLANS | ' | |||||||
DEFINED BENEFIT PENSION PLANS | ' | |||||||
NOTE 14 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 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. Actual results that differ from these assumptions would impact future expense recognition and the cash funding requirements of the Company’s pension plans. | ||||||||
Net periodic benefit costs for the plans in aggregate included the following components: | ||||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Service cost | $ | 213 | $ | 721 | ||||
Interest cost on benefit obligations | 175 | 165 | ||||||
Expected return on plan assets | -70 | -52 | ||||||
Amortization of net loss | 45 | 63 | ||||||
$ | 363 | $ | 897 | |||||
BUSINESS_SEGMENT_INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended | |||||||||||||
Mar. 29, 2014 | ||||||||||||||
BUSINESS SEGMENT INFORMATION | ' | |||||||||||||
BUSINESS SEGMENT INFORMATION | ' | |||||||||||||
NOTE 15 BUSINESS SEGMENT INFORMATION | ||||||||||||||
The operating segments reported below are the segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Chief Executive Officer, who is the chief operating decision maker, in deciding how to allocate resources and in assessing performance. The Company develops, manufactures and markets its products within three distinct business segments: its Photonics Group, its Lasers Group and its Optics Group. | ||||||||||||||
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, a gain on the sale of assets, interest and other expense, net, and income taxes. | ||||||||||||||
(In thousands) | Photonics | Lasers | Optics | Total | ||||||||||
Three months ended March 29, 2014: | ||||||||||||||
Sales to external customers | $ | 59,470 | $ | 46,474 | $ | 40,946 | $ | 146,890 | ||||||
Segment income | $ | 13,546 | $ | 5,580 | $ | 4,556 | $ | 23,682 | ||||||
Three months ended March 30, 2013: | ||||||||||||||
Sales to external customers | $ | 58,367 | $ | 38,885 | $ | 35,355 | $ | 132,607 | ||||||
Segment income | $ | 12,566 | $ | 3,133 | $ | 700 | $ | 16,399 | ||||||
The following table reconciles segment income to consolidated income before income taxes: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 29, | March 30, | |||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||
Segment income | $ | 23,682 | $ | 16,399 | ||||||||||
Unallocated operating expenses | -11,567 | -11,976 | ||||||||||||
Gain on sale of assets | 411 | - | ||||||||||||
Interest and other expense, net | -976 | -2,137 | ||||||||||||
$ | 11,550 | $ | 2,286 | |||||||||||
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 3 Months Ended | |||||||||
Mar. 29, 2014 | ||||||||||
MARKETABLE SECURITIES | ' | |||||||||
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 the aggregate amount of unrealized gains and losses in available for sale securities at March 29, 2014 were as follows: | ||||||||||
(In thousands) | Aggregate | Aggregate Amount of | ||||||||
Unrealized | ||||||||||
Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 7,997 | $ | 63 | $ | - | ||||
Certificates of deposit | 194 | - | - | |||||||
$ | 8,191 | $ | 63 | $ | - | |||||
The aggregate fair value of available for sale securities and the aggregate amount of unrealized gains and losses in available for sale securities at December 28, 2013 were as follows: | ||||||||||
(In thousands) | Aggregate | Aggregate Amount of | ||||||||
Unrealized | ||||||||||
Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 8,052 | $ | 91 | $ | - | ||||
Certificates of deposit | 167 | - | - | |||||||
$ | 8,219 | $ | 91 | $ | - |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||
Mar. 29, 2014 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
Summary of the Company's assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||
The Company’s assets and liabilities 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 March 29, 2014. | ||||||||||||||
(In thousands) | Fair Value Measurements at Reporting Date Using | |||||||||||||
Description | March 29, 2014 | Quoted Prices in | Significant Other | Significant | ||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||
Identical Assets | (Level 2) | Inputs | ||||||||||||
(Level 1) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||
Restricted Cash | $ | 2,397 | $ | 2,397 | $ | - | $ | - | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 7,997 | 7,997 | - | - | ||||||||||
Certificates of deposit | 194 | - | 194 | - | ||||||||||
8,191 | 7,997 | 194 | - | |||||||||||
Derivative assets: | ||||||||||||||
Option contracts | 137 | - | 137 | - | ||||||||||
Forward contracts | 2 | - | 2 | - | ||||||||||
139 | - | 139 | - | |||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 11,299 | - | 11,299 | - | ||||||||||
Group insurance contracts | 7,100 | - | 7,100 | - | ||||||||||
18,399 | - | 18,399 | - | |||||||||||
$ | 29,126 | $ | 10,394 | $ | 18,732 | $ | - | |||||||
Liabilities: | ||||||||||||||
Derivative liabilities: | ||||||||||||||
Option contracts | 29 | - | 29 | - | ||||||||||
The Company’s assets and liabilities 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. | ||||||||||||||
(In thousands) | Fair Value Measurements at Reporting Date Using | |||||||||||||
Description | December 28, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||
Identical Assets | (Level 2) | Inputs (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
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 | - | |||||||||||
Derivative assets: | ||||||||||||||
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: | ||||||||||||||
Derivative liabilities: | ||||||||||||||
Option contracts | 10 | - | 10 | - | ||||||||||
Summary of carrying amount and estimated fair values of financial instruments | ' | |||||||||||||
March 29, 2014 | December 28, 2013 | |||||||||||||
(In thousands) | Carrying | Carrying | ||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||
Short-term borrowings | $ | 4,991 | $ | 4,987 | $ | 4,861 | $ | 4,851 | ||||||
Long-term debt | $ | 70,988 | $ | 70,051 | $ | 83,646 | $ | 82,658 |
SUPPLEMENTAL_BALANCE_SHEET_INF1
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | |||||||
Schedule of inventories | ' | |||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Raw materials and purchased parts | $ | 61,733 | $ | 61,819 | ||||
Work in process | 19,914 | 19,577 | ||||||
Finished goods | 23,637 | 21,987 | ||||||
Short-term inventories | $ | 105,284 | $ | 103,383 | ||||
Schedule of long-term inventories | ' | |||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Raw materials and purchased parts | $ | 2,906 | $ | 1,850 | ||||
Finished goods | 3,101 | 4,489 | ||||||
Long-term inventories | $ | 6,007 | $ | 6,339 | ||||
Schedule of activity in accrued warranty obligations | ' | |||||||
Three Months Ended | ||||||||
(In thousands) | March 29, | March 30, | ||||||
2014 | 2013 | |||||||
Balance at beginning of year | $ | 3,285 | $ | 3,528 | ||||
Additions charged to cost of sales | 906 | 596 | ||||||
Warranty claims | -781 | -742 | ||||||
Balance at end of period | $ | 3,410 | $ | 3,382 | ||||
Schedule of accrued expenses and other current liabilities | ' | |||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Deferred revenue | $ | 14,252 | $ | 13,609 | ||||
Deferred lease liability | 5,365 | 5,448 | ||||||
Accrued and deferred taxes | 5,309 | 3,130 | ||||||
Short-term accrued warranty obligations | 3,229 | 3,093 | ||||||
Other | 9,367 | 10,061 | ||||||
$ | 37,522 | $ | 35,341 | |||||
Schedule of accumulated other comprehensive loss | ' | |||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Cumulative foreign currency translation losses | $ | -1,849 | $ | -2,296 | ||||
Unrecognized net pension losses, net of tax | -2,356 | -2,399 | ||||||
Unrealized gains on marketable securities, net of tax | 1,096 | 1,076 | ||||||
$ | -3,109 | $ | -3,619 |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
INTANGIBLE ASSETS | ' | |||||||
Schedule of intangible assets, excluding goodwill | ' | |||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Intangible assets subject to amortization: | ||||||||
Developed technology, net of accumulated amortization of $14,870 and $14,079 as of March 29, 2014 and December 28, 2013, respectively | $ | 26,016 | $ | 26,805 | ||||
Customer relationships, net of accumulated amortization of $34,011 and $32,614 as of March 29, 2014 and December 28, 2013, respectively | 12,398 | 13,795 | ||||||
In-process research and development, net of accumulated amortization of $941 and $759 as of March 29, 2014 and December 28, 2013, respectively | 6,981 | 7,162 | ||||||
Other, net of accumulated amortization of $6,404 and $6,324 as of March 29, 2013 and December 28, 2013, respectively | 1,197 | 1,275 | ||||||
46,592 | 49,037 | |||||||
Intangible assets not subject to amortization: | ||||||||
Trademarks and trade names | 18,305 | 18,305 | ||||||
Intangible assets, net | $ | 64,897 | $ | 67,342 | ||||
Schedule of estimated aggregate amortization expense for future fiscal years | ' | |||||||
(In thousands) | Estimated | |||||||
Aggregate | ||||||||
Amortization | ||||||||
Expense | ||||||||
2014 (remaining) | $ | 6,109 | ||||||
2015 | 6,925 | |||||||
2016 | 6,539 | |||||||
2017 | 5,553 | |||||||
2018 | 3,429 | |||||||
Thereafter | 17,399 | |||||||
$ | 45,954 |
INTEREST_AND_OTHER_EXPENSE_NET1
INTEREST AND OTHER EXPENSE, NET (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
INTEREST AND OTHER EXPENSE, NET | ' | |||||||
Interest and other expense, net | ' | |||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Interest expense | $ | -661 | $ | -1,789 | ||||
Interest and dividend income | 53 | 49 | ||||||
Derivative gain (loss) | -12 | 202 | ||||||
Bank and portfolio asset management fees | -260 | -192 | ||||||
Other expense, net | -96 | -407 | ||||||
$ | -976 | $ | -2,137 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
STOCK-BASED COMPENSATION | ' | |||||||
Schedule of total stock-based compensation expense included in the Company's consolidated statements of income and comprehensive income | ' | |||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Cost of sales | $ | 212 | $ | 209 | ||||
Selling, general and administrative expenses | 1,836 | 1,820 | ||||||
Research and development expense | 289 | 240 | ||||||
$ | 2,337 | $ | 2,269 |
DEBT_AND_LINES_OF_CREDIT_Table
DEBT AND LINES OF CREDIT (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
DEBT AND LINES OF CREDIT | ' | |||||||
Schedule of short-term debt | ' | |||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
Japanese revolving lines of credit | $ | 681 | $ | 666 | ||||
Japanese receivables financing facilities | 945 | 615 | ||||||
Current portion of long-term debt | 3,365 | 3,580 | ||||||
Total short-term borrowings | $ | 4,991 | $ | 4,861 | ||||
Schedule of long-term debt | ' | |||||||
(In thousands) | March 29, | December 28, | ||||||
2014 | 2013 | |||||||
U.S. revolving line of credit expiring July 2018 | $ | 70,500 | $ | 83,000 | ||||
Israeli loans due through October 2015 | 1,735 | 2,110 | ||||||
Japanese private placement bonds due June 2014 | 1,945 | 1,902 | ||||||
Japanese loans due through June 2016 | 173 | 214 | ||||||
Total long-term debt | 74,353 | 87,226 | ||||||
Current portion of long-term debt | 3,365 | 3,580 | ||||||
Total long-term debt, less current portion | $ | 70,988 | $ | 83,646 |
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
NET INCOME PER SHARE | ' | |||||||
Schedule of basic and diluted net income per share | ' | |||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
(In thousands, except per share data) | 2014 | 2013 | ||||||
Net income attributable to Newport Corporation | $ | 7,886 | $ | 2,746 | ||||
Shares: | ||||||||
Weighted average shares outstanding - basic | 39,525 | 38,601 | ||||||
Dilutive potential common shares, using treasury stock method | 974 | 659 | ||||||
Weighted average shares outstanding - diluted | 40,499 | 39,260 | ||||||
Net income per share attributable to Newport Corporation: | ||||||||
Basic | $ | 0.2 | $ | 0.07 | ||||
Diluted | $ | 0.19 | $ | 0.07 |
DEFINED_BENEFIT_PENSION_PLANS_
DEFINED BENEFIT PENSION PLANS (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
DEFINED BENEFIT PENSION PLANS | ' | |||||||
Aggregate net periodic benefit costs for the plans | ' | |||||||
Three Months Ended | ||||||||
March 29, | March 30, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Service cost | $ | 213 | $ | 721 | ||||
Interest cost on benefit obligations | 175 | 165 | ||||||
Expected return on plan assets | -70 | -52 | ||||||
Amortization of net loss | 45 | 63 | ||||||
$ | 363 | $ | 897 |
BUSINESS_SEGMENT_INFORMATION_T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||
Mar. 29, 2014 | ||||||||||||||
BUSINESS SEGMENT INFORMATION | ' | |||||||||||||
Schedule of selected segment financial information | ' | |||||||||||||
(In thousands) | Photonics | Lasers | Optics | Total | ||||||||||
Three months ended March 29, 2014: | ||||||||||||||
Sales to external customers | $ | 59,470 | $ | 46,474 | $ | 40,946 | $ | 146,890 | ||||||
Segment income | $ | 13,546 | $ | 5,580 | $ | 4,556 | $ | 23,682 | ||||||
Three months ended March 30, 2013: | ||||||||||||||
Sales to external customers | $ | 58,367 | $ | 38,885 | $ | 35,355 | $ | 132,607 | ||||||
Segment income | $ | 12,566 | $ | 3,133 | $ | 700 | $ | 16,399 | ||||||
Schedule of reconciliation of segment income to consolidated income before income taxes | ' | |||||||||||||
Three Months Ended | ||||||||||||||
March 29, | March 30, | |||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||
Segment income | $ | 23,682 | $ | 16,399 | ||||||||||
Unallocated operating expenses | -11,567 | -11,976 | ||||||||||||
Gain on sale of assets | 411 | - | ||||||||||||
Interest and other expense, net | -976 | -2,137 | ||||||||||||
$ | 11,550 | $ | 2,286 |
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (USD $) | 3 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2014 | 8-May-14 |
Optical Metrology Ltd., Israel | Ophir Japan, Ltd. | |
Subsequent event | ||
Non-Controlling Interests | ' | ' |
Purchase of non-controlling interest | $0.90 | $0.90 |
DIVESTITURE_Details
DIVESTITURE (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended |
Jan. 31, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | |
Divestiture | ' | ' | ' | ' |
Cash proceeds | ' | $5,030,000 | ' | ' |
(Loss) gain on sale of business | ' | 411,000 | ' | ' |
Advanced Packaging Systems Business | ' | ' | ' | ' |
Divestiture | ' | ' | ' | ' |
Sales price net of adjustments | 5,700,000 | ' | ' | ' |
Sale price | 6,000,000 | ' | ' | ' |
Adjustments to purchase price based on net assets | 300,000 | ' | ' | ' |
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 | ' | $400,000 | ($4,700,000) | ($4,300,000) |
MARKETABLE_SECURITIES_Details
MARKETABLE SECURITIES (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 |
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 | ||
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 fair value and aggregate amount of unrealized gains and losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable securities | $8,191 | $8,219 | $8,191 | $8,219 | ' | ' | $7,997 | $8,052 | ' | $194 | $167 |
Aggregate amount of unrealized gains | $63 | $91 | ' | ' | $63 | $91 | ' | ' | ' | ' | ' |
Maturity term | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
MARKETABLE_SECURITIES_Details_
MARKETABLE SECURITIES (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Gross realized gains and losses on sales of available for sale securities | ' | ' |
Realized gains and losses on sales of available for sale securities | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Restricted Cash | $2,397 | $2,305 |
Marketable securities: | 8,191 | 8,219 |
Aggregate Fair Value | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Restricted Cash | 2,397 | 2,305 |
Marketable securities: | 8,191 | 8,219 |
Derivative assets: | 139 | ' |
Funds in investments and other assets | 18,399 | 18,384 |
Total assets | 29,126 | 29,177 |
Aggregate Fair Value | Option contracts | Fair Value Measurements, Recurring basis | ' | ' |
Liabilities: | ' | ' |
Derivative liabilities | 29 | 10 |
Aggregate Fair Value | Money market funds | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 7,997 | 8,052 |
Aggregate Fair Value | Certificates of deposit | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 194 | 167 |
Aggregate Fair Value | Option contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Derivative assets: | 137 | 269 |
Aggregate Fair Value | Forward contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Derivative assets: | 2 | ' |
Aggregate Fair Value | Israeli pension funds | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Funds in investments and other assets | 11,299 | 11,489 |
Aggregate Fair Value | Group insurance contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Funds in investments and other assets | 7,100 | 6,895 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Restricted Cash | 2,397 | 2,305 |
Marketable securities: | 7,997 | 8,052 |
Total assets | 10,394 | 10,357 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 7,997 | 8,052 |
Significant Other Observable Inputs (Level 2) | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 194 | 167 |
Derivative assets: | 139 | ' |
Funds in investments and other assets | 18,399 | 18,384 |
Total assets | 18,732 | 18,820 |
Significant Other Observable Inputs (Level 2) | Option contracts | Fair Value Measurements, Recurring basis | ' | ' |
Liabilities: | ' | ' |
Derivative liabilities | 29 | 10 |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Marketable securities: | 194 | 167 |
Significant Other Observable Inputs (Level 2) | Option contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Derivative assets: | 137 | 269 |
Significant Other Observable Inputs (Level 2) | Forward contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Derivative assets: | 2 | ' |
Significant Other Observable Inputs (Level 2) | Israeli pension funds | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Funds in investments and other assets | 11,299 | 11,489 |
Significant Other Observable Inputs (Level 2) | Group insurance contracts | Fair Value Measurements, Recurring basis | ' | ' |
Assets: | ' | ' |
Funds in investments and other assets | $7,100 | $6,895 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ' | ' |
Carrying amount and estimated fair values of financial instruments | ' | ' |
Short-term borrowings | $4,991 | $4,861 |
Long-term debt | 70,988 | 83,646 |
Fair Value | ' | ' |
Carrying amount and estimated fair values of financial instruments | ' | ' |
Short-term borrowings | 4,987 | 4,851 |
Long-term debt | $70,051 | $82,658 |
SUPPLEMENTAL_BALANCE_SHEET_INF2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Short-term inventories | ' | ' |
Raw materials and purchased parts | $61,733 | $61,819 |
Work in process | 19,914 | 19,577 |
Finished goods | 23,637 | 21,987 |
Short-term inventories | 105,284 | 103,383 |
Long-term Inventories | ' | ' |
Raw materials and purchased parts | 2,906 | 1,850 |
Finished goods | 3,101 | 4,489 |
Long-term inventories | $6,007 | $6,339 |
SUPPLEMENTAL_BALANCE_SHEET_INF3
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 |
Accrued Warranty Obligations | ' | ' | ' |
Balance at beginning of year | $3,285 | $3,528 | ' |
Additions charged to cost of sales | 906 | 596 | ' |
Warranty claims | -781 | -742 | ' |
Balance at end of period | 3,410 | 3,382 | ' |
Accrued Expenses and Other Current Liabilities | ' | ' | ' |
Deferred revenue | 14,252 | ' | 13,609 |
Deferred lease liability | 5,365 | ' | 5,448 |
Accrued and deferred taxes | 5,309 | ' | 3,130 |
Short-term accrued warranty obligations | 3,229 | ' | 3,093 |
Other | 9,367 | ' | 10,061 |
Accrued expenses and other current liabilities, total | 37,522 | ' | 35,341 |
Accumulated Other Comprehensive Loss | ' | ' | ' |
Cumulative foreign currency translation losses | -1,849 | ' | -2,296 |
Unrecognized net pension losses, net of tax | -2,356 | ' | -2,399 |
Unrealized gains on marketable securities, net of tax | 1,096 | ' | 1,076 |
Accumulated other comprehensive loss | ($3,109) | ' | ($3,619) |
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 | Original equipment manufacturer | Minimum | ' | ' | ' |
Warranty | ' | ' | ' |
Product warranty period | '15 months | ' | ' |
Photonics and Optics | Original equipment manufacturer | Maximum | ' | ' | ' |
Warranty | ' | ' | ' |
Product warranty period | '19 months | ' | ' |
Optics | Filters and gratings products | ' | ' | ' |
Warranty | ' | ' | ' |
Product warranty period | '90 days | ' | ' |
Photonics | 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 | ' | ' |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | Developed technology | Developed technology | Developed technology | Developed technology | Customer relationships | Customer relationships | Customer relationships | In-process research and development | In-process research and development | Other intangible assets | Other intangible assets | Other intangible assets except product trademarks and trade names | Other intangible assets except product trademarks and trade names | Trademarks and trade names associated with products | Trademarks and trade names associated with products | ||
Minimum | Maximum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||||||
Intangible assets subject to amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | $46,592 | $49,037 | $26,016 | $26,805 | ' | ' | $12,398 | $13,795 | ' | $6,981 | $7,162 | $1,197 | $1,275 | ' | ' | ' | ' |
Accumulated amortization | ' | ' | 14,870 | 14,079 | ' | ' | 34,011 | 32,614 | ' | 941 | 759 | 6,404 | 6,324 | ' | ' | ' | ' |
Intangible asset amortized period | ' | ' | ' | ' | '10 years | '20 years | ' | ' | '10 years | ' | ' | ' | ' | '3 months | '10 years | '10 years | '20 years |
Intangible assets not subject to amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trademarks and trade names | 18,305 | 18,305 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, net | $64,897 | $67,342 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INTANGIBLE_ASSETS_Details_2
INTANGIBLE ASSETS (Details 2) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Intangible assets, excluding goodwill | ' | ' |
Amortization expense related to intangible assets | $2,500,000 | $2,600,000 |
Estimated aggregate amortization expense | ' | ' |
2014 (remaining) | 6,109,000 | ' |
2015 | 6,925,000 | ' |
2016 | 6,539,000 | ' |
2017 | 5,553,000 | ' |
2018 | 3,429,000 | ' |
Thereafter | 17,399,000 | ' |
Total estimated future amortization expense | 45,954,000 | ' |
Future IPR&D expense excluded from estimated future expense | $600,000 | ' |
INTEREST_AND_OTHER_EXPENSE_NET2
INTEREST AND OTHER EXPENSE, NET (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
INTEREST AND OTHER EXPENSE, NET | ' | ' |
Interest expense | ($661) | ($1,789) |
Interest and dividend income | 53 | 49 |
Derivative gain (loss) | -12 | 202 |
Bank and portfolio asset management fees | -260 | -192 |
Other expense, net | -96 | -407 |
Total | ($976) | ($2,137) |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Total stock-based compensation expense included in the Company's consolidated statements of operations | ' | ' |
Stock-based compensation expense | $2,337,000 | $2,269,000 |
Unrecognized total compensation cost | ' | ' |
Unrecognized stock-based compensation expense related to non-vested stock-based awards | 11,300,000 | ' |
Weighted-average period over which unrecognized stock-based compensation cost is expected to be recognized | '1 year 8 months 12 days | ' |
Cost of sales | ' | ' |
Total stock-based compensation expense included in the Company's consolidated statements of operations | ' | ' |
Stock-based compensation expense | 212,000 | 209,000 |
Selling, general and administrative expenses | ' | ' |
Total stock-based compensation expense included in the Company's consolidated statements of operations | ' | ' |
Stock-based compensation expense | 1,836,000 | 1,820,000 |
Research and development expense | ' | ' |
Total stock-based compensation expense included in the Company's consolidated statements of operations | ' | ' |
Stock-based compensation expense | $289,000 | $240,000 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 29, 2014 |
Stock Options | ' |
Stock-based compensation | ' |
Stock options exercisable and outstanding (in shares) | 0.3 |
Stock options exercisable and outstanding, weighted average exercise price (in dollars per share) | $13.48 |
Stock options exercisable and outstanding, intrinsic value | $1.80 |
Stock options exercisable and outstanding, remaining contractual term | '10 months 24 days |
Stock appreciation rights | ' |
Stock-based compensation | ' |
Stock appreciation rights outstanding (in shares) | 1.8 |
Stock appreciation rights outstanding, weighted average base value (in dollars per share) | $12.44 |
Stock appreciation rights outstanding, intrinsic value | 13.6 |
Stock appreciation rights outstanding, remaining contractual term | '4 years 4 months 24 days |
Stock appreciation rights exercisable (in shares) | 0.9 |
Stock appreciation rights exercisable, weighted-average base value (in dollars per share) | $9.83 |
Stock appreciation rights exercisable, intrinsic value | $8.80 |
Stock appreciation rights exercisable, remaining contractual term | '3 years |
DEBT_AND_LINES_OF_CREDIT_Detai
DEBT AND LINES OF CREDIT (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debts and Lines of credit | ' | ' |
Current portion of long-term debt | $3,365 | $3,580 |
Total short-term borrowings | 4,991 | 4,861 |
Japanese revolving lines of credit | ' | ' |
Debts and Lines of credit | ' | ' |
Total short-term borrowings | 681 | 666 |
Japanese receivables financing facilities | ' | ' |
Debts and Lines of credit | ' | ' |
Total short-term borrowings | $945 | $615 |
DEBT_AND_LINES_OF_CREDIT_Detai1
DEBT AND LINES OF CREDIT (Details 2) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debt and Lines of credit | ' | ' |
Total long-term debt | $74,353 | $87,226 |
Current portion of long-term debt | 3,365 | 3,580 |
Total long-term debt, less current portion | 70,988 | 83,646 |
U.S. revolving line of credit expiring July 2018 | ' | ' |
Debt and Lines of credit | ' | ' |
Total long-term debt | 70,500 | 83,000 |
Israeli loans due through October 2015 | ' | ' |
Debt and Lines of credit | ' | ' |
Total long-term debt | 1,735 | 2,110 |
Japanese private placement bonds due June 2014 | ' | ' |
Debt and Lines of credit | ' | ' |
Total long-term debt | 1,945 | 1,902 |
Japanese loans due through June 2016 | ' | ' |
Debt and Lines of credit | ' | ' |
Total long-term debt | $173 | $214 |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
NET INCOME PER SHARE | ' | ' |
Net income attributable to Newport Corporation | $7,886 | $2,746 |
Shares: | ' | ' |
Weighted average shares outstanding - basic | 39,525 | 38,601 |
Dilutive potential common shares, using treasury stock method | 974 | 659 |
Weighted average shares outstanding - diluted | 40,499 | 39,260 |
Net income per share attributable to Newport Corporation: | ' | ' |
Basic (in dollars per share) | $0.20 | $0.07 |
Diluted (in dollars per share) | $0.19 | $0.07 |
NET_INCOME_PER_SHARE_Details_2
NET INCOME PER SHARE (Details 2) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Stock options and stock appreciation rights | ' | ' |
Net income per share | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 0.1 | 0.9 |
Restricted stock units | ' | ' |
Net income per share | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | ' | 0.4 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | Mar. 29, 2014 |
In Millions, unless otherwise specified | |
Unrecognized tax benefits | ' |
Gross unrecognized tax benefits | $17.30 |
Net unrecognized tax benefits | 14.3 |
Domestic and foreign subsidiaries | ' |
Valuation allowance | ' |
Valuation allowance | $2.30 |
STOCKHOLDERS_EQUITY_TRANSACTIO1
STOCKHOLDERS' EQUITY TRANSACTIONS (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2014 | 31-May-08 |
STOCKHOLDERS' EQUITY TRANSACTIONS | ' | ' |
Shares of common stock authorized to be repurchased | ' | 4 |
Purchases made under the program | 0 | ' |
Remaining shares to be repurchased | 3.9 | ' |
DEFINED_BENEFIT_PENSION_PLANS_1
DEFINED BENEFIT PENSION PLANS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Net periodic benefit costs | ' | ' |
Service cost | $213 | $721 |
Interest cost on benefit obligations | 175 | 165 |
Expected return on plan assets | -70 | -52 |
Amortization of net loss | 45 | 63 |
Total | $363 | $897 |
BUSINESS_SEGMENT_INFORMATION_D
BUSINESS SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
item | ||
BUSINESS SEGMENT INFORMATION | ' | ' |
Number of operating segments | 3 | ' |
Segment Reporting Information, by Segment | ' | ' |
Sales to external customers | $146,890 | $132,607 |
Segment income | 12,526 | 4,423 |
Photonics | ' | ' |
Segment Reporting Information, by Segment | ' | ' |
Sales to external customers | 59,470 | 58,367 |
Lasers | ' | ' |
Segment Reporting Information, by Segment | ' | ' |
Sales to external customers | 46,474 | 38,885 |
Optics | ' | ' |
Segment Reporting Information, by Segment | ' | ' |
Sales to external customers | 40,946 | 35,355 |
Operating segments | ' | ' |
Segment Reporting Information, by Segment | ' | ' |
Segment income | 23,682 | 16,399 |
Operating segments | Photonics | ' | ' |
Segment Reporting Information, by Segment | ' | ' |
Segment income | 13,546 | 12,566 |
Operating segments | Lasers | ' | ' |
Segment Reporting Information, by Segment | ' | ' |
Segment income | 5,580 | 3,133 |
Operating segments | Optics | ' | ' |
Segment Reporting Information, by Segment | ' | ' |
Segment income | $4,556 | $700 |
BUSINESS_SEGMENT_INFORMATION_D1
BUSINESS SEGMENT INFORMATION (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Reconciliation of segment income to consolidated income before income taxes | ' | ' |
Segment income | $12,526 | $4,423 |
Gain on sale of assets | 411 | ' |
Interest and other expense, net | -976 | -2,137 |
Income before income taxes | 11,550 | 2,286 |
Operating segments | ' | ' |
Reconciliation of segment income to consolidated income before income taxes | ' | ' |
Segment income | 23,682 | 16,399 |
Unallocated amount to segment | ' | ' |
Reconciliation of segment income to consolidated income before income taxes | ' | ' |
Unallocated operating expenses | ($11,567) | ($11,976) |