Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 04, 2015 | Apr. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | NEWPORT CORP | |
Entity Central Index Key | 225263 | |
Document Type | 10-Q | |
Document Period End Date | 4-Apr-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -1 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,844,699 | |
Document Fiscal Year Focus | 2015 | |
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 | Apr. 04, 2015 | Mar. 29, 2014 |
Consolidated Statements of Income and Comprehensive Income | ||
Net sales | $156,655 | $146,890 |
Cost of sales | 86,374 | 81,431 |
Gross profit | 70,281 | 65,459 |
Selling, general and administrative expenses | 40,609 | 39,206 |
Research and development expense | 14,955 | 14,138 |
Loss (gain) on sale or other disposal of assets, net | 1,088 | -411 |
Operating income | 13,629 | 12,526 |
Interest and other expense, net | -903 | -976 |
Income before income taxes | 12,726 | 11,550 |
Income tax provision | 4,062 | 3,609 |
Net income | 8,664 | 7,941 |
Net income attributable to non-controlling interests | 55 | |
Net income attributable to Newport Corporation | 8,664 | 7,886 |
Net income | 8,664 | 7,941 |
Other comprehensive income (loss): | ||
Foreign currency translation (losses) gains | -6,211 | 461 |
Unrecognized net pension gains, net of tax | 470 | 43 |
Unrealized (losses) gains on investment and marketable securities, net of tax | -108 | 20 |
Other comprehensive income (loss) | -5,849 | 524 |
Comprehensive income | 2,815 | 8,465 |
Comprehensive income attributable to non-controlling interests | 69 | |
Comprehensive income attributable to Newport Corporation | 2,815 | 8,396 |
Comprehensive income | $2,815 | $8,465 |
Net income per share attributable to Newport Corporation: | ||
Basic (in dollars per share) | $0.22 | $0.20 |
Diluted (in dollars per share) | $0.21 | $0.19 |
Shares used in per share calculations: | ||
Basic (in shares) | 39,601 | 39,525 |
Diluted (in shares) | 40,560 | 40,499 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $31,192 | $46,883 |
Restricted cash | 1,524 | 1,704 |
Marketable securities | 6 | 57 |
Accounts receivable, net of allowance for doubtful accounts of $1,268 and $1,242 as of April 4, 2015 and January 3, 2015, respectively | 103,946 | 96,512 |
Inventories | 121,188 | 112,440 |
Current deferred tax assets | 20,885 | 20,734 |
Prepaid expenses and other current assets | 22,053 | 14,948 |
Total current assets | 300,794 | 293,278 |
Property and equipment, net | 82,914 | 82,793 |
Goodwill | 104,643 | 97,524 |
Long-term deferred tax assets | 5,204 | 5,005 |
Intangible assets, net | 72,093 | 70,811 |
Investments and other assets | 27,494 | 30,516 |
Total assets | 593,142 | 579,927 |
Current liabilities: | ||
Short-term borrowings | 3,567 | 3,772 |
Accounts payable | 35,990 | 31,448 |
Accrued payroll and related expenses | 35,967 | 34,607 |
Accrued expenses and other current liabilities | 34,227 | 31,797 |
Total current liabilities | 109,751 | 101,624 |
Long-term debt | 78,000 | 71,000 |
Pension liabilities | 27,724 | 28,554 |
Long-term deferred tax liabilities | 14,559 | 14,272 |
Other long-term liabilities | 7,616 | 7,773 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $0.1167 per share, 200,000,000 shares authorized; 39,817,899 and 39,603,662 shares issued and outstanding as of April 4, 2015 and January 3, 2015, respectively | 4,651 | 4,626 |
Capital in excess of par value | 464,523 | 468,575 |
Accumulated other comprehensive loss | -23,831 | -17,982 |
Accumulated deficit | -89,851 | -98,515 |
Total stockholders' equity | 355,492 | 356,704 |
Total Liabilities and Stockholders' equity | $593,142 | $579,927 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $1,268 | $1,242 |
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 | 39,817,899 | 39,603,662 |
Common stock, shares outstanding | 39,817,899 | 39,603,662 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $8,664 | $7,941 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,966 | 7,160 |
Gain on sale of assets | -411 | |
Provision for losses on inventories | 1,223 | 984 |
Stock-based compensation expense | 4,084 | 2,337 |
Provision for doubtful accounts | 87 | 159 |
Loss on disposal of property and equipment | 1,139 | 286 |
Deferred income taxes | -272 | -336 |
Excess tax benefits from stock-based compensation | -655 | |
Increase (decrease) in cash, net of acquisition and divestiture, due to changes in: | ||
Accounts receivable | -7,445 | -3,155 |
Inventories | -9,275 | -6,471 |
Prepaid expenses and other assets | -4,761 | -2,947 |
Accounts payable | 1,962 | 752 |
Accrued payroll and related expenses | 1,022 | 134 |
Accrued expenses and other liabilities | 2,205 | 3,856 |
Other long-term liabilities | 175 | -909 |
Net cash provided by operating activities | 5,119 | 9,380 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | -5,679 | -4,950 |
Restricted cash | 89 | -47 |
Proceeds from divestiture of business | 5,030 | |
Acquisition of businesses, net of cash acquired | -8,417 | |
Refundable amounts related to acquisition of business | -1,767 | |
Purchase of investments and marketable securities | -503 | -590 |
Proceeds from the sale or maturity of investments and marketable securities | 123 | 395 |
Net cash used in investing activities | -16,154 | -162 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 11,000 | |
Repayment of long-term debt and obligations under capital leases | -4,004 | -12,961 |
Proceeds from short-term borrowings | 344 | 1,016 |
Repayment of short-term borrowings | -4,599 | -701 |
Purchases of non-controlling interests | -931 | |
Proceeds from the issuance of common stock under employee plans | 705 | 2,789 |
Tax withholding payment related to net share settlement of equity awards | -3,419 | |
Purchases of the Company's common stock | -5,995 | |
Excess tax benefits from stock-based compensation | 655 | |
Net cash used in financing activities | -5,313 | -10,788 |
Impact of foreign exchange rate changes on cash balances | 657 | 462 |
Net decrease in cash and cash equivalents | -15,691 | -1,108 |
Cash and cash equivalents at beginning of period | 46,883 | 53,710 |
Cash and cash equivalents at end of period | 31,192 | 52,602 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 462 | 589 |
Cash paid during the period for income taxes, net | 2,546 | 2,007 |
Property and equipment accrued in accounts payable | $165 | $450 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Apr. 04, 2015 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | |
NOTE 1BASIS 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 January 3, 2015. The results for the interim periods are not necessarily indicative of the results the Company will have for the full year ending January 2, 2016. The January 3, 2015 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 January 3, 2015. | |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Apr. 04, 2015 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
NOTE 2RECENT ACCOUNTING PRONOUNCEMENTS | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which created Topic 606. ASU No. 2014-09 establishes a core principle that a company should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In order to achieve that core principle, companies are required to apply the following steps: (1) identify the contract with the customer; (2) identify performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the company satisfies a performance obligation. Upon adoption, ASU No. 2014-09 can be applied either (i) retrospectively to each prior reporting period or (ii) retrospectively with the cumulative effect of initial application recognized on the date of adoption. At the time of issuance, ASU No. 2014-09 was to become effective for interim and annual periods beginning after December 15, 2016, and early adoption was not permitted. However, in April 2015, the FASB proposed deferring the effective date by one year to annual reporting periods beginning after December 15, 2017. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of December 15, 2016. The FASB’s proposed deferral is not yet a final decision. The Company is currently evaluating the expected impact of ASU No. 2014-09 on its financial position and results of operations. | |
In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. ASU No. 2015-03 requires debt issuance costs to be presented as a reduction from the carrying amount of the related debt rather than as a deferred charge (an asset). ASU No. 2015-03 will be effective for fiscal years and interim periods beginning after December 15, 2015, and is required to be applied retrospectively. Early adoption is permitted but has not been elected for the first quarter of 2015. The Company’s adoption of ASU No. 2015-03 would have resulted in a decrease in both investments and other assets and long-term debt of $1.0 million as of April 4, 2015. | |
In April 2015, the FASB issued ASU No. 2015-04, Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets. ASU No. 2015-04 allows companies with a fiscal year-end that does not coincide with a month-end to measure defined benefit plan assets and obligations using the month-end date that is closest to the entity’s fiscal year-end. This practical expedient is required to be applied consistently year to year and for all plans. However, if a contribution or significant event occurs between the month-end date and the entity’s fiscal year-end, the defined benefit plan assets and obligations should be adjusted to capture such events. ASU No. 2015-04 will be effective for fiscal years and interim periods beginning after December 15, 2015. Early adoption is permitted but has not been elected. The adoption of ASU No. 2015-04 is not expected to have a material impact on the Company’s financial position or results of operations. | |
In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. ASU No. 2015-05 provides guidance for determining whether a cloud computing arrangement includes a software license. A cloud computing arrangement is considered to contain a license if the customer has a contractual right to take possession of the software without significant penalty and it is feasible for the customer to run the software on its own or with an unrelated vendor. If the arrangement includes a software license, the customer should account for the purchase of the license consistent with the purchase of other licenses. If the arrangement does not include a license, the customer should account for the arrangement as a service contract. ASU No. 2015-05 will be effective for fiscal years and interim periods beginning after December 15, 2015 and can be applied prospectively or retrospectively. Early adoption is permitted but has not been elected. The adoption of ASU No. 2015-05 is not expected to have a material impact on the Company’s financial position or results of operations. | |
ACQUISITION_OF_FEMTOLASERS
ACQUISITION OF FEMTOLASERS | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
ACQUISITION OF FEMTOLASERS | ||||||||
ACQUISITION OF FEMTOLASERS | ||||||||
NOTE 3ACQUISITION OF FEMTOLASERS | ||||||||
On February 11, 2015, the Company acquired all of the capital stock of FEMTOLASERS Produktions GmbH (FEMTOLASERS). The initial purchase price of €9.1 million was paid in cash at closing and is subject to a net asset adjustment. Based on the preliminary financial information provided by FEMTOLASERS, the Company has estimated an adjustment to the purchase price of approximately €1.6 million, which would result in a purchase price of €7.5 million (approximately $8.5 million). The amount of this adjustment will be finalized following completion of the audit of FEMTOLASERS’ balance sheet as of the closing date, which the Company expects will occur during the second quarter of 2015. Of the initial purchase price, €2.3 million was deposited at closing into escrow until thirty months after closing, to secure certain obligations of the FEMTOLASERS selling shareholders under the share purchase agreement, including the net asset adjustment. 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 income and comprehensive income. FEMTOLASERS expands the Company’s offering of ultrafast laser products and enhances its technology base in this area. The results of FEMTOLASERS have been included in the results of the Company’s Lasers Group as of the acquisition date. | ||||||||
Immediately following the closing of the transaction, the Company repaid €3.6 million (approximately $4.0 million) of FEMTOLASERS’ outstanding loans that were assumed as part of the acquisition. | ||||||||
The consideration paid by the Company for the acquisition of FEMTOLASERS 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 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. The Company has not yet finalized the purchase price or its final evaluation of the fair value of certain assets acquired. Any changes during the measurement period may have an impact on the allocation of the purchase price, including values assigned to assets, liabilities and the amount of estimated goodwill represented in the table below. | ||||||||
(In thousands) | ||||||||
Assets acquired and liabilities assumed: | ||||||||
Cash | $ | 78 | ||||||
Accounts receivable | 2,007 | |||||||
Inventories | 2,315 | |||||||
Deferred tax assets | 596 | |||||||
Other assets | 2,057 | |||||||
Goodwill | 7,841 | |||||||
Developed technology | 1,811 | |||||||
In-process research and development | 1,664 | |||||||
Other intangible assets | 543 | |||||||
Accounts payable | (3,417 | ) | ||||||
Debt | (4,021 | ) | ||||||
Deferred tax liabilities | (1,005 | ) | ||||||
Other liabilities | (1,974 | ) | ||||||
$ | 8,495 | |||||||
The goodwill related to the acquisition of FEMTOLASERS has been allocated to the Company’s Lasers Group and will not be deductible for tax purposes. | ||||||||
The actual net sales and net income of FEMTOLASERS from February 11, 2015, the closing date of the acquisition, that were included in the Company’s consolidated statements of income and comprehensive income for the three months ended April 4, 2015, are set forth in the table below. Also set forth in the table below are the pro forma net sales and net income of the Company during the three months ended April 4, 2015 and March 29, 2014, including the results of FEMTOLASERS as though the acquisition had occurred at the beginning of 2014. This supplemental pro forma financial information is presented for information purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had occurred as of the beginning of 2014. | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
(Unaudited, in thousands) | 2015 | 2014 | ||||||
Actual: | ||||||||
Net sales | $ | 350 | $ | — | ||||
Net loss attributable to Newport Corporation | $ | (460 | ) | $ | — | |||
Supplemental pro forma information: | ||||||||
Net sales | $ | 156,924 | $ | 149,328 | ||||
Net income attributable to Newport Corporation | $ | 8,999 | $ | 7,758 | ||||
For the purposes of determining pro forma net income, adjustments were made to actual net income of the Company for both periods presented in the table above. The pro forma net income assumes amortization of acquired intangible assets began at the beginning of 2014 rather than on February 11, 2015. The result is a net increase in amortization expense of $0.1 million for each of the three months ended April 4, 2015 and March 29, 2014. Transaction costs totaling $0.4 million, which were incurred prior to the closing of the acquisition, are excluded from pro forma net income. | ||||||||
MARKETABLE_SECURITIES
MARKETABLE SECURITIES | 3 Months Ended | ||||||||||
Apr. 04, 2015 | |||||||||||
MARKETABLE SECURITIES | |||||||||||
MARKETABLE SECURITIES | |||||||||||
NOTE 4MARKETABLE 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 April 4, 2015 were as follows: | |||||||||||
Aggregate | Aggregate Amount of | ||||||||||
Unrealized | |||||||||||
(In thousands) | Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 6 | $ | — | $ | — | |||||
Certificates of deposit | — | — | — | ||||||||
$ | 6 | $ | — | $ | — | ||||||
The aggregate fair value of available for sale securities and the aggregate amount of unrealized gains and losses in available for sale securities at January 3, 2015 were as follows: | |||||||||||
Aggregate | Aggregate Amount of | ||||||||||
Unrealized | |||||||||||
(In thousands) | Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 7 | $ | — | $ | — | |||||
Certificates of deposit | 50 | — | — | ||||||||
$ | 57 | $ | — | $ | — | ||||||
Money market funds do not have a maturity date. | |||||||||||
There were no gross realized gains and losses for the three months ended April 4, 2015 or March 29, 2014. | |||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||
NOTE 5FAIR VALUE MEASUREMENTS | ||||||||||||||
Accounting Standards Codification (ASC) 820-10, Fair Value Measurements, 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 April 4, 2015. | ||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||
(In thousands) | April 4, 2015 | 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 | $ | 1,524 | $ | 1,524 | $ | — | $ | — | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 6 | 6 | — | — | ||||||||||
Derivative assets: | ||||||||||||||
Option contracts | 159 | — | 159 | — | ||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 11,240 | — | 11,240 | — | ||||||||||
Group insurance contracts | 5,784 | — | 5,784 | — | ||||||||||
17,024 | — | 17,024 | — | |||||||||||
$ | 18,713 | $ | 1,530 | $ | 17,183 | $ | — | |||||||
Liabilities: | ||||||||||||||
Derivative liabilities: | ||||||||||||||
Option contracts | 642 | — | 642 | — | ||||||||||
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 January 3, 2015. | ||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||
(In thousands) | January 3, 2015 | 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 | $ | 1,704 | $ | 1,704 | $ | — | $ | — | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 7 | 7 | — | — | ||||||||||
Certificates of deposit | 50 | — | 50 | — | ||||||||||
57 | 7 | 50 | — | |||||||||||
Derivative assets: | ||||||||||||||
Option contracts | 103 | — | 103 | — | ||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 11,090 | — | 11,090 | |||||||||||
Group insurance contracts | 6,140 | — | 6,140 | — | ||||||||||
17,230 | — | 17,230 | — | |||||||||||
$ | 19,094 | $ | 1,711 | $ | 17,383 | $ | — | |||||||
Liabilities: | ||||||||||||||
Derivative liabilities: | ||||||||||||||
Option contracts | $ | 921 | $ | — | $ | 921 | $ | — | ||||||
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: | ||||||||||||||
April 4, 2015 | January 3, 2015 | |||||||||||||
Carrying | Carrying | |||||||||||||
(In thousands) | Amount | Fair Value | Amount | Fair Value | ||||||||||
Short-term borrowings | $ | 3,567 | $ | 3,567 | $ | 3,772 | $ | 3,772 | ||||||
Long-term debt | $ | 78,000 | $ | 77,298 | $ | 71,000 | $ | 69,761 | ||||||
SUPPLEMENTAL_BALANCE_SHEET_INF
SUPPLEMENTAL BALANCE SHEET INFORMATION | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ||||||||
NOTE 6SUPPLEMENTAL 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: | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Raw materials and purchased parts | $ | 73,320 | $ | 68,989 | ||||
Work in process | 19,660 | 16,564 | ||||||
Finished goods | 28,208 | 26,887 | ||||||
Short-term inventories | $ | 121,188 | $ | 112,440 | ||||
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: | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Raw materials and purchased parts | $ | 1,820 | $ | 3,208 | ||||
Finished goods | 2,858 | 3,856 | ||||||
Long-term inventories | $ | 4,678 | $ | 7,064 | ||||
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 other long-term liabilities in the accompanying consolidated balance sheets. | ||||||||
The activity in accrued warranty obligations was as follows: | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
(In thousands) | 2015 | 2014 | ||||||
Balance at beginning of year | $ | 3,556 | $ | 3,285 | ||||
Additions charged to cost of sales | 811 | 906 | ||||||
Warranty claims | (808 | ) | (781 | ) | ||||
Balance at end of period | $ | 3,559 | $ | 3,410 | ||||
Accrued Expenses and Other Current Liabilities | ||||||||
Accrued expenses and other current liabilities were as follows: | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Deferred revenue | $ | 12,454 | $ | 13,032 | ||||
Deferred lease liability | 4,981 | 5,094 | ||||||
Accrued income taxes | 3,631 | 2,219 | ||||||
Short-term accrued warranty obligations | 3,315 | 3,324 | ||||||
Other | 9,846 | 8,128 | ||||||
$ | 34,227 | $ | 31,797 | |||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated other comprehensive loss consisted of the following: | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Cumulative foreign currency translation losses | $ | (20,767 | ) | $ | (14,556 | ) | ||
Unrecognized net pension losses, net of tax | (4,385 | ) | (4,855 | ) | ||||
Unrealized gains on investments and marketable securities, net of tax | 1,321 | 1,429 | ||||||
$ | (23,831 | ) | $ | (17,982 | ) | |||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
NOTE 7GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
The changes in the carrying amounts of goodwill were as follows: | ||||||||||||||
Photonics | Lasers | Optics | ||||||||||||
(In thousands) | Group | Group | Group | Total | ||||||||||
Balance at January 3, 2015: | ||||||||||||||
Goodwill | 98,808 | 129,761 | 41,314 | 269,883 | ||||||||||
Accumulated impairment losses | (47,458 | ) | (104,562 | ) | (20,339 | ) | (172,359 | ) | ||||||
51,350 | 25,199 | 20,975 | 97,524 | |||||||||||
Goodwill allocated to acquisition | — | 7,841 | — | 7,841 | ||||||||||
Foreign currency impact | — | (722 | ) | — | (722 | ) | ||||||||
Balance at April 4, 2015: | ||||||||||||||
Goodwill | 98,808 | 136,880 | 41,314 | 277,002 | ||||||||||
Accumulated impairment losses | (47,458 | ) | (104,562 | ) | (20,339 | ) | (172,359 | ) | ||||||
$ | 51,350 | $ | 32,318 | $ | 20,975 | $ | 104,643 | |||||||
Acquisition related intangible assets were as follows: | ||||||||||||||
April 4, | January 3, | |||||||||||||
(In thousands) | 2015 | 2015 | ||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Developed technology, net of accumulated amortization of $10,170 and $16,782 as of April 4, 2015 and January 3, 2015, respectively | $ | 29,424 | $ | 28,864 | ||||||||||
Customer relationships, net of accumulated amortization of $18,748 and $37,312 as of April 4, 2015 and January 3, 2015, respectively | 9,898 | 10,515 | ||||||||||||
In-process research and development, net of accumulated amortization of $1,110 and $1,496 as of April 4, 2015 and January 3, 2015, respectively | 13,356 | 11,965 | ||||||||||||
Other, net of accumulated amortization of $1,071 and $6,299 as of April 4, 2015 and January 3, 2015, respectively | 1,110 | 1,162 | ||||||||||||
53,788 | 52,506 | |||||||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Trademarks and trade names | 18,305 | 18,305 | ||||||||||||
Intangible assets, net | $ | 72,093 | $ | 70,811 | ||||||||||
As of April 4, 2015, the amounts of accumulated amortization shown in the table above exclude amounts related to the Company’s acquisition of Spectra-Physics, Inc. (and certain related entities), as the purchased intangible assets related to that acquisition have been fully amortized. | ||||||||||||||
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 $2.1 million and $2.5 million for the three months ended April 4, 2015 and March 29, 2014, respectively. | ||||||||||||||
Estimated aggregate amortization expense for future fiscal years is as follows: | ||||||||||||||
(In thousands) | Estimated | |||||||||||||
Aggregate | ||||||||||||||
Amortization | ||||||||||||||
Expense | ||||||||||||||
2015 (remaining) | $ | 6,198 | ||||||||||||
2016 | 7,813 | |||||||||||||
2017 | 6,673 | |||||||||||||
2018 | 4,509 | |||||||||||||
2019 | 3,919 | |||||||||||||
Thereafter | 17,462 | |||||||||||||
$ | 46,574 | |||||||||||||
The Company has excluded $7.2 million of estimated amortization expense related to certain in-process research and development from the table above, as it was uncertain as of April 4, 2015 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 | |||||||
Apr. 04, 2015 | ||||||||
INTEREST AND OTHER EXPENSE, NET | ||||||||
INTEREST AND OTHER EXPENSE, NET | ||||||||
NOTE 8INTEREST AND OTHER EXPENSE, NET | ||||||||
Interest and other expense, net, was as follows: | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
(In thousands) | 2015 | 2014 | ||||||
Interest expense | $ | (565 | ) | $ | (661 | ) | ||
Interest and dividend income | 41 | 53 | ||||||
Derivative loss | (124 | ) | (12 | ) | ||||
Bank and portfolio asset management fees | (354 | ) | (260 | ) | ||||
Other income (expense), net | 99 | (96 | ) | |||||
$ | (903 | ) | $ | (976 | ) | |||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
STOCK-BASED COMPENSATION | ||||||||
STOCK-BASED COMPENSATION | ||||||||
NOTE 9STOCK-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 | ||||||||
April 4, | March 29, | |||||||
(In thousands) | 2015 | 2014 | ||||||
Cost of sales | $ | 396 | $ | 212 | ||||
Selling, general and administrative expenses | 3,196 | 1,836 | ||||||
Research and development expense | 492 | 289 | ||||||
$ | 4,084 | $ | 2,337 | |||||
At April 4, 2015, 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 $14.5 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 April 4, 2015 will be adjusted for actual forfeitures. | ||||||||
At April 4, 2015, 42 thousand stock options with a weighted-average exercise price of $13.79 per share, intrinsic value of $0.2 million and remaining contractual term of 0.7 years were outstanding and were exercisable. At April 4, 2015, 2.0 million stock-settled stock appreciation rights with a weighted-average base value of $14.72 per share, intrinsic value of $8.8 million and remaining contractual term of 4.4 years were outstanding, of which 1.4 million stock-settled stock appreciation rights with a weighted-average base value of $13.92 per share, intrinsic value of $7.4 million and remaining contractual term of 3.8 years were exercisable. | ||||||||
DEBT_AND_LINES_OF_CREDIT
DEBT AND LINES OF CREDIT | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
DEBT AND LINES OF CREDIT | ||||||||
DEBT AND LINES OF CREDIT | ||||||||
NOTE 10DEBT AND LINES OF CREDIT | ||||||||
Total short-term borrowings were as follows: | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Japanese revolving lines of credit | $ | 2,851 | $ | 3,163 | ||||
Japanese receivables financing facilities | 277 | 25 | ||||||
Israeli loans due October 2015 | 439 | 584 | ||||||
Total short-term borrowings | $ | 3,567 | $ | 3,772 | ||||
Total long-term debt was as follows: | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
U.S. revolving line of credit expiring July 2018 | $ | 78,000 | $ | 71,000 | ||||
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
NET INCOME PER SHARE | ||||||||
NET INCOME PER SHARE | ||||||||
NOTE 11NET INCOME PER SHARE | ||||||||
The following table sets forth the computation of basic and diluted net income per share: | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
(In thousands, except per share data) | 2015 | 2014 | ||||||
Net income attributable to Newport Corporation | $ | 8,664 | $ | 7,886 | ||||
Shares: | ||||||||
Weighted average shares outstanding - basic | 39,601 | 39,525 | ||||||
Dilutive potential common shares, using treasury stock method | 959 | 974 | ||||||
Weighted average shares outstanding - diluted | 40,560 | 40,499 | ||||||
Net income per share attributable to Newport Corporation: | ||||||||
Basic | $ | 0.22 | $ | 0.20 | ||||
Diluted | $ | 0.21 | $ | 0.19 | ||||
For the three months ended April 4, 2015, 0.6 million stock appreciation rights, and for the three months ended March 29, 2014, an aggregate of 0.1 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. | ||||||||
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Apr. 04, 2015 | |
INCOME TAXES | |
INCOME TAXES | |
NOTE 12INCOME TAXES | |
Income tax expense for the three months ended April 4, 2015 and March 29, 2014 consisted of a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to the Company, adjusted for items which are considered discrete to a particular period. The effective tax rates for the three months ended April 4, 2015 and March 29, 2014 were 31.9% and 31.2%, respectively. | |
The effective tax rates for the current year periods are lower than the U.S. statutory rate of 35% due primarily to the benefit of income recorded in foreign jurisdictions that have tax rates that are lower than U.S. tax rates. | |
STOCKHOLDERS_EQUITY_TRANSACTIO
STOCKHOLDERS' EQUITY TRANSACTIONS | 3 Months Ended |
Apr. 04, 2015 | |
STOCKHOLDERS' EQUITY TRANSACTIONS | |
STOCKHOLDERS' EQUITY TRANSACTIONS | |
NOTE 13STOCKHOLDERS’ 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. During the three months ended April 4, 2015, the Company repurchased 0.3 million shares for a total of $6.0 million under this program. As of April 4, 2015, 3.0 million shares remained available for purchase under the program. | |
During the three months ended April 4, 2015, the Company cancelled 0.2 million restricted stock units 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 restricted stock units totaled $3.4 million at the time they were cancelled. | |
DEFINED_BENEFIT_PENSION_PLANS
DEFINED BENEFIT PENSION PLANS | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
DEFINED BENEFIT PENSION PLANS | ||||||||
DEFINED BENEFIT PENSION PLANS | ||||||||
NOTE 14DEFINED 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 | ||||||||
April 4, | March 29, | |||||||
(In thousands) | 2015 | 2014 | ||||||
Service cost | $ | 523 | $ | 213 | ||||
Interest cost on benefit obligations | 121 | 175 | ||||||
Expected return on plan assets | (43 | ) | (70 | ) | ||||
Amortization of net loss | 92 | 45 | ||||||
$ | 693 | $ | 363 | |||||
BUSINESS_SEGMENT_INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
BUSINESS SEGMENT INFORMATION | ||||||||||||||
BUSINESS SEGMENT INFORMATION | ||||||||||||||
NOTE 15BUSINESS 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, certain gains and losses, interest and other expense, net, and income taxes. | ||||||||||||||
(In thousands) | Photonics | Lasers | Optics | Total | ||||||||||
Three months ended April 4, 2015: | ||||||||||||||
Sales to external customers | $ | 64,238 | $ | 49,859 | $ | 42,558 | $ | 156,655 | ||||||
Segment income | $ | 17,152 | $ | 5,624 | $ | 4,660 | $ | 27,436 | ||||||
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 | ||||||
The following table reconciles segment income to consolidated income before income taxes: | ||||||||||||||
Three Months Ended | ||||||||||||||
April 4, | March 29, | |||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||
Segment income | $ | 27,436 | $ | 23,682 | ||||||||||
Unallocated operating expenses | (12,719 | ) | (11,567 | ) | ||||||||||
(Loss) gain on disposal of assets | (1,088 | ) | 411 | |||||||||||
Interest and other expense, net | (903 | ) | (976 | ) | ||||||||||
$ | 12,726 | $ | 11,550 | |||||||||||
ACQUISITIONS_OF_FEMTOLASERS_Ta
ACQUISITIONS OF FEMTOLASERS (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
ACQUISITION OF FEMTOLASERS | ||||||||
Summary of the purchase price, assets acquired and liabilities assumed | ||||||||
(In thousands) | ||||||||
Assets acquired and liabilities assumed: | ||||||||
Cash | $ | 78 | ||||||
Accounts receivable | 2,007 | |||||||
Inventories | 2,315 | |||||||
Deferred tax assets | 596 | |||||||
Other assets | 2,057 | |||||||
Goodwill | 7,841 | |||||||
Developed technology | 1,811 | |||||||
In-process research and development | 1,664 | |||||||
Other intangible assets | 543 | |||||||
Accounts payable | (3,417 | ) | ||||||
Debt | (4,021 | ) | ||||||
Deferred tax liabilities | (1,005 | ) | ||||||
Other liabilities | (1,974 | ) | ||||||
$ | 8,495 | |||||||
Summary of actual net sales and net income of acquiree and pro forma net sales and net income | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
(Unaudited, in thousands) | 2015 | 2014 | ||||||
Actual: | ||||||||
Net sales | $ | 350 | $ | — | ||||
Net loss attributable to Newport Corporation | $ | (460 | ) | $ | — | |||
Supplemental pro forma information: | ||||||||
Net sales | $ | 156,924 | $ | 149,328 | ||||
Net income attributable to Newport Corporation | $ | 8,999 | $ | 7,758 | ||||
MARKETABLE_SECURITIES_Tables
MARKETABLE SECURITIES (Tables) | 3 Months Ended | ||||||||||
Apr. 04, 2015 | |||||||||||
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 April 4, 2015 were as follows: | ||||||||||
Aggregate | Aggregate Amount of | ||||||||||
Unrealized | |||||||||||
(In thousands) | Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 6 | $ | — | $ | — | |||||
Certificates of deposit | — | — | — | ||||||||
$ | 6 | $ | — | $ | — | ||||||
The aggregate fair value of available for sale securities and the aggregate amount of unrealized gains and losses in available for sale securities at January 3, 2015 were as follows: | |||||||||||
Aggregate | Aggregate Amount of | ||||||||||
Unrealized | |||||||||||
(In thousands) | Fair Value | Gains | Losses | ||||||||
Money market funds | $ | 7 | $ | — | $ | — | |||||
Certificates of deposit | 50 | — | — | ||||||||
$ | 57 | $ | — | $ | — | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
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) | April 4, 2015 | 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 | $ | 1,524 | $ | 1,524 | $ | — | $ | — | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 6 | 6 | — | — | ||||||||||
Derivative assets: | ||||||||||||||
Option contracts | 159 | — | 159 | — | ||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 11,240 | — | 11,240 | — | ||||||||||
Group insurance contracts | 5,784 | — | 5,784 | — | ||||||||||
17,024 | — | 17,024 | — | |||||||||||
$ | 18,713 | $ | 1,530 | $ | 17,183 | $ | — | |||||||
Liabilities: | ||||||||||||||
Derivative liabilities: | ||||||||||||||
Option contracts | 642 | — | 642 | — | ||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||
(In thousands) | January 3, 2015 | 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 | $ | 1,704 | $ | 1,704 | $ | — | $ | — | ||||||
Marketable securities: | ||||||||||||||
Money market funds | 7 | 7 | — | — | ||||||||||
Certificates of deposit | 50 | — | 50 | — | ||||||||||
57 | 7 | 50 | — | |||||||||||
Derivative assets: | ||||||||||||||
Option contracts | 103 | — | 103 | — | ||||||||||
Funds in investments and other assets: | ||||||||||||||
Israeli pension funds | 11,090 | — | 11,090 | |||||||||||
Group insurance contracts | 6,140 | — | 6,140 | — | ||||||||||
17,230 | — | 17,230 | — | |||||||||||
$ | 19,094 | $ | 1,711 | $ | 17,383 | $ | — | |||||||
Liabilities: | ||||||||||||||
Derivative liabilities: | ||||||||||||||
Option contracts | $ | 921 | $ | — | $ | 921 | $ | — | ||||||
Summary of carrying amount and estimated fair values of financial instruments | ||||||||||||||
April 4, 2015 | January 3, 2015 | |||||||||||||
Carrying | Carrying | |||||||||||||
(In thousands) | Amount | Fair Value | Amount | Fair Value | ||||||||||
Short-term borrowings | $ | 3,567 | $ | 3,567 | $ | 3,772 | $ | 3,772 | ||||||
Long-term debt | $ | 78,000 | $ | 77,298 | $ | 71,000 | $ | 69,761 | ||||||
SUPPLEMENTAL_BALANCE_SHEET_INF1
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ||||||||
Schedule of inventories | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Raw materials and purchased parts | $ | 73,320 | $ | 68,989 | ||||
Work in process | 19,660 | 16,564 | ||||||
Finished goods | 28,208 | 26,887 | ||||||
Short-term inventories | $ | 121,188 | $ | 112,440 | ||||
Schedule of long-term inventories | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Raw materials and purchased parts | $ | 1,820 | $ | 3,208 | ||||
Finished goods | 2,858 | 3,856 | ||||||
Long-term inventories | $ | 4,678 | $ | 7,064 | ||||
Schedule of activity in accrued warranty obligations | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
(In thousands) | 2015 | 2014 | ||||||
Balance at beginning of year | $ | 3,556 | $ | 3,285 | ||||
Additions charged to cost of sales | 811 | 906 | ||||||
Warranty claims | (808 | ) | (781 | ) | ||||
Balance at end of period | $ | 3,559 | $ | 3,410 | ||||
Schedule of accrued expenses and other current liabilities | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Deferred revenue | $ | 12,454 | $ | 13,032 | ||||
Deferred lease liability | 4,981 | 5,094 | ||||||
Accrued income taxes | 3,631 | 2,219 | ||||||
Short-term accrued warranty obligations | 3,315 | 3,324 | ||||||
Other | 9,846 | 8,128 | ||||||
$ | 34,227 | $ | 31,797 | |||||
Schedule of accumulated other comprehensive loss | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Cumulative foreign currency translation losses | $ | (20,767 | ) | $ | (14,556 | ) | ||
Unrecognized net pension losses, net of tax | (4,385 | ) | (4,855 | ) | ||||
Unrealized gains on investments and marketable securities, net of tax | 1,321 | 1,429 | ||||||
$ | (23,831 | ) | $ | (17,982 | ) | |||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
Schedule of changes in the carrying amount of goodwill | ||||||||||||||
Photonics | Lasers | Optics | ||||||||||||
(In thousands) | Group | Group | Group | Total | ||||||||||
Balance at January 3, 2015: | ||||||||||||||
Goodwill | 98,808 | 129,761 | 41,314 | 269,883 | ||||||||||
Accumulated impairment losses | (47,458 | ) | (104,562 | ) | (20,339 | ) | (172,359 | ) | ||||||
51,350 | 25,199 | 20,975 | 97,524 | |||||||||||
Goodwill allocated to acquisition | — | 7,841 | — | 7,841 | ||||||||||
Foreign currency impact | — | (722 | ) | — | (722 | ) | ||||||||
Balance at April 4, 2015: | ||||||||||||||
Goodwill | 98,808 | 136,880 | 41,314 | 277,002 | ||||||||||
Accumulated impairment losses | (47,458 | ) | (104,562 | ) | (20,339 | ) | (172,359 | ) | ||||||
$ | 51,350 | $ | 32,318 | $ | 20,975 | $ | 104,643 | |||||||
Schedule of intangible assets, excluding goodwill | ||||||||||||||
April 4, | January 3, | |||||||||||||
(In thousands) | 2015 | 2015 | ||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Developed technology, net of accumulated amortization of $10,170 and $16,782 as of April 4, 2015 and January 3, 2015, respectively | $ | 29,424 | $ | 28,864 | ||||||||||
Customer relationships, net of accumulated amortization of $18,748 and $37,312 as of April 4, 2015 and January 3, 2015, respectively | 9,898 | 10,515 | ||||||||||||
In-process research and development, net of accumulated amortization of $1,110 and $1,496 as of April 4, 2015 and January 3, 2015, respectively | 13,356 | 11,965 | ||||||||||||
Other, net of accumulated amortization of $1,071 and $6,299 as of April 4, 2015 and January 3, 2015, respectively | 1,110 | 1,162 | ||||||||||||
53,788 | 52,506 | |||||||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Trademarks and trade names | 18,305 | 18,305 | ||||||||||||
Intangible assets, net | $ | 72,093 | $ | 70,811 | ||||||||||
Schedule of estimated aggregate amortization expense for future fiscal years | ||||||||||||||
(In thousands) | Estimated | |||||||||||||
Aggregate | ||||||||||||||
Amortization | ||||||||||||||
Expense | ||||||||||||||
2015 (remaining) | $ | 6,198 | ||||||||||||
2016 | 7,813 | |||||||||||||
2017 | 6,673 | |||||||||||||
2018 | 4,509 | |||||||||||||
2019 | 3,919 | |||||||||||||
Thereafter | 17,462 | |||||||||||||
$ | 46,574 | |||||||||||||
INTEREST_AND_OTHER_EXPENSE_NET1
INTEREST AND OTHER EXPENSE, NET (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
INTEREST AND OTHER EXPENSE, NET | ||||||||
Interest and other expense, net | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
(In thousands) | 2015 | 2014 | ||||||
Interest expense | $ | (565 | ) | $ | (661 | ) | ||
Interest and dividend income | 41 | 53 | ||||||
Derivative loss | (124 | ) | (12 | ) | ||||
Bank and portfolio asset management fees | (354 | ) | (260 | ) | ||||
Other income (expense), net | 99 | (96 | ) | |||||
$ | (903 | ) | $ | (976 | ) | |||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
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 | ||||||||
April 4, | March 29, | |||||||
(In thousands) | 2015 | 2014 | ||||||
Cost of sales | $ | 396 | $ | 212 | ||||
Selling, general and administrative expenses | 3,196 | 1,836 | ||||||
Research and development expense | 492 | 289 | ||||||
$ | 4,084 | $ | 2,337 | |||||
DEBT_AND_LINES_OF_CREDIT_Table
DEBT AND LINES OF CREDIT (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
DEBT AND LINES OF CREDIT | ||||||||
Schedule of short-term borrowings | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
Japanese revolving lines of credit | $ | 2,851 | $ | 3,163 | ||||
Japanese receivables financing facilities | 277 | 25 | ||||||
Israeli loans due October 2015 | 439 | 584 | ||||||
Total short-term borrowings | $ | 3,567 | $ | 3,772 | ||||
Schedule of long-term debt | ||||||||
April 4, | January 3, | |||||||
(In thousands) | 2015 | 2015 | ||||||
U.S. revolving line of credit expiring July 2018 | $ | 78,000 | $ | 71,000 | ||||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
NET INCOME PER SHARE | ||||||||
Schedule of basic and diluted net income per share | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
(In thousands, except per share data) | 2015 | 2014 | ||||||
Net income attributable to Newport Corporation | $ | 8,664 | $ | 7,886 | ||||
Shares: | ||||||||
Weighted average shares outstanding - basic | 39,601 | 39,525 | ||||||
Dilutive potential common shares, using treasury stock method | 959 | 974 | ||||||
Weighted average shares outstanding - diluted | 40,560 | 40,499 | ||||||
Net income per share attributable to Newport Corporation: | ||||||||
Basic | $ | 0.22 | $ | 0.20 | ||||
Diluted | $ | 0.21 | $ | 0.19 | ||||
DEFINED_BENEFIT_PENSION_PLANS_
DEFINED BENEFIT PENSION PLANS (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
DEFINED BENEFIT PENSION PLANS | ||||||||
Aggregate net periodic benefit costs for the plans | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
(In thousands) | 2015 | 2014 | ||||||
Service cost | $ | 523 | $ | 213 | ||||
Interest cost on benefit obligations | 121 | 175 | ||||||
Expected return on plan assets | (43 | ) | (70 | ) | ||||
Amortization of net loss | 92 | 45 | ||||||
$ | 693 | $ | 363 | |||||
BUSINESS_SEGMENT_INFORMATION_T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
BUSINESS SEGMENT INFORMATION | ||||||||||||||
Schedule of selected segment financial information | ||||||||||||||
(In thousands) | Photonics | Lasers | Optics | Total | ||||||||||
Three months ended April 4, 2015: | ||||||||||||||
Sales to external customers | $ | 64,238 | $ | 49,859 | $ | 42,558 | $ | 156,655 | ||||||
Segment income | $ | 17,152 | $ | 5,624 | $ | 4,660 | $ | 27,436 | ||||||
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 | ||||||
Schedule of reconciliation of segment income to consolidated income before income taxes | ||||||||||||||
Three Months Ended | ||||||||||||||
April 4, | March 29, | |||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||
Segment income | $ | 27,436 | $ | 23,682 | ||||||||||
Unallocated operating expenses | (12,719 | ) | (11,567 | ) | ||||||||||
(Loss) gain on disposal of assets | (1,088 | ) | 411 | |||||||||||
Interest and other expense, net | (903 | ) | (976 | ) | ||||||||||
$ | 12,726 | $ | 11,550 | |||||||||||
RECENT_ACCOUNTING_PRONOUNCEMEN1
RECENT ACCOUNTING PRONOUNCEMENTS (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
RECENT ACCOUNTING PRONOUNCEMENTS | ||
Investments and other assets | $27,494 | $30,516 |
Long-term debt | 78,000 | 71,000 |
New accounting pronouncement early adoption, effect | ||
RECENT ACCOUNTING PRONOUNCEMENTS | ||
Investments and other assets | -1,000 | |
Long-term debt | ($1,000) |
ACQUISITION_OF_FEMTOLASERS_Det
ACQUISITION OF FEMTOLASERS (Details) (FEMTOLASERS) | 0 Months Ended | 3 Months Ended | ||||||||
Feb. 11, 2015 | Feb. 11, 2015 | Apr. 04, 2015 | Mar. 29, 2014 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | Feb. 11, 2015 | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | EUR (€) | Developed technology | In-process research and development | Other intangible assets | Selling, general and administrative expenses | |
USD ($) | USD ($) | USD ($) | USD ($) | |||||||
ACQUISITIONS AND FEMTOLASERS | ||||||||||
Initial purchase price | € 9,100,000 | |||||||||
Reduction in purchase price due to net asset adjustment | 1,600,000 | |||||||||
Adjusted purchase price | 8,500,000 | 7,500,000 | ||||||||
Purchase price deposited at closing into escrow account | 2,300,000 | |||||||||
Time period for depositing into escrow from the date of closing | 30 months | 30 months | ||||||||
Transaction costs incurred | 400,000 | |||||||||
Repayment of outstanding loan | 4,000,000 | 3,600,000 | ||||||||
Purchase price, assets acquired and liabilities assumed | ||||||||||
Cash | 78,000 | |||||||||
Accounts receivable | 2,007,000 | |||||||||
Inventories | 2,315,000 | |||||||||
Deferred tax assets | 596,000 | |||||||||
Other assets | 2,057,000 | |||||||||
Goodwill | 7,841,000 | |||||||||
Intangible assets | 1,811,000 | 1,664,000 | 543,000 | |||||||
Accounts payable | -3,417,000 | |||||||||
Debt | -4,021,000 | |||||||||
Deferred tax liabilities | -1,005,000 | |||||||||
Other liabilities | -1,974,000 | |||||||||
Assets acquired and liabilities assumed, total | 8,495,000 | |||||||||
Supplemental pro forma financial information, Actual | ||||||||||
Net sales | 350,000 | |||||||||
Net loss attributable to Newport Corporation | -460,000 | |||||||||
Supplemental pro forma information: | ||||||||||
Net sales | 156,924,000 | 149,328,000 | ||||||||
Net income attributable to Newport Corporation | 8,999,000 | 7,758,000 | ||||||||
Pro forma increase (decrease) in amortization expense | 100,000 | 100,000 | ||||||||
Transaction costs excluded from pro forma net income | $400,000 | $400,000 |
MARKETABLE_SECURITIES_Details
MARKETABLE SECURITIES (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Aggregate fair value and aggregate amount of unrealized gains and losses | ||
Available For Sale Securities, Current | $6 | $57 |
Fair Value | Fair Value Measurements, Recurring basis | ||
Aggregate fair value and aggregate amount of unrealized gains and losses | ||
Available For Sale Securities, Current | 6 | 57 |
Money market funds | Fair Value | Fair Value Measurements, Recurring basis | ||
Aggregate fair value and aggregate amount of unrealized gains and losses | ||
Available For Sale Securities, Current | 6 | 7 |
Certificates of deposit | Fair Value | Fair Value Measurements, Recurring basis | ||
Aggregate fair value and aggregate amount of unrealized gains and losses | ||
Available For Sale Securities, Current | $50 |
MARKETABLE_SECURITIES_Details_
MARKETABLE SECURITIES (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Gross realized gains and losses on sales of available for sale securities | ||
Gross realized gains and (losses) | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Restricted Cash | $1,524 | $1,704 |
Available For Sale Securities, Current | 6 | 57 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Restricted Cash | 1,524 | 1,704 |
Available For Sale Securities, Current | 7 | |
Total assets | 1,530 | 1,711 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Available For Sale Securities, Current | 6 | 7 |
Significant Other Observable Inputs (Level 2) | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Available For Sale Securities, Current | 50 | |
Funds in investments and other assets | 17,024 | 17,230 |
Total assets | 17,183 | 17,383 |
Significant Other Observable Inputs (Level 2) | Option contracts | Fair Value Measurements, Recurring basis | ||
Liabilities: | ||
Derivative liabilities | 642 | 921 |
Significant Other Observable Inputs (Level 2) | Certificates of deposit | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Available For Sale Securities, Current | 50 | |
Significant Other Observable Inputs (Level 2) | Option contracts | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Derivative assets: | 159 | 103 |
Significant Other Observable Inputs (Level 2) | Israeli pension funds | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Funds in investments and other assets | 11,240 | 11,090 |
Significant Other Observable Inputs (Level 2) | Group insurance contracts | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Funds in investments and other assets | 5,784 | 6,140 |
Fair Value | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Restricted Cash | 1,524 | 1,704 |
Available For Sale Securities, Current | 6 | 57 |
Funds in investments and other assets | 17,024 | 17,230 |
Total assets | 18,713 | 19,094 |
Fair Value | Option contracts | Fair Value Measurements, Recurring basis | ||
Liabilities: | ||
Derivative liabilities | 642 | 921 |
Fair Value | Money market funds | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Available For Sale Securities, Current | 6 | 7 |
Fair Value | Certificates of deposit | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Available For Sale Securities, Current | 50 | |
Fair Value | Option contracts | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Derivative assets: | 159 | 103 |
Fair Value | Israeli pension funds | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Funds in investments and other assets | 11,240 | 11,090 |
Fair Value | Group insurance contracts | Fair Value Measurements, Recurring basis | ||
Assets: | ||
Funds in investments and other assets | $5,784 | $6,140 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ||
Carrying amount and estimated fair values of financial instruments | ||
Short-term borrowings | $3,567 | $3,772 |
Long-term debt | 78,000 | 71,000 |
Fair Value | ||
Carrying amount and estimated fair values of financial instruments | ||
Short-term borrowings | 3,567 | 3,772 |
Long-term debt | $77,298 | $69,761 |
SUPPLEMENTAL_BALANCE_SHEET_INF2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Short-term inventories | ||
Raw materials and purchased parts | $73,320 | $68,989 |
Work in process | 19,660 | 16,564 |
Finished goods | 28,208 | 26,887 |
Short-term inventories | 121,188 | 112,440 |
Long-term Inventories | ||
Raw materials and purchased parts | 1,820 | 3,208 |
Finished goods | 2,858 | 3,856 |
Long-term inventories | $4,678 | $7,064 |
SUPPLEMENTAL_BALANCE_SHEET_INF3
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details 2) | 3 Months Ended |
Apr. 04, 2015 | |
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 | Minimum | |
Warranty | |
Product warranty period | 90 days |
Lasers | Maximum | |
Warranty | |
Product warranty period | 2 years |
SUPPLEMENTAL_BALANCE_SHEET_INF4
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details 3) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Jan. 03, 2015 |
Accrued Warranty Obligations | |||
Balance at beginning of year | $3,556 | $3,285 | |
Additions charged to cost of sales | 811 | 906 | |
Warranty claims | -808 | -781 | |
Balance at end of period | 3,559 | 3,410 | |
Accrued Expenses and Other Current Liabilities | |||
Deferred revenue | 12,454 | 13,032 | |
Deferred lease liability | 4,981 | 5,094 | |
Accrued income taxes | 3,631 | 2,219 | |
Short-term accrued warranty obligations | 3,315 | 3,324 | |
Other | 9,846 | 8,128 | |
Accrued expenses and other current liabilities, total | 34,227 | 31,797 | |
Accumulated Other Comprehensive Loss | |||
Cumulative foreign currency translation losses | -20,767 | -14,556 | |
Unrecognized net pension losses, net of tax | -4,385 | -4,855 | |
Unrealized gains on investment and marketable securities, net of tax | 1,321 | 1,429 | |
Accumulated other comprehensive loss | ($23,831) | ($17,982) |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Jan. 03, 2015 |
Changes in the carrying amount of goodwill | ||
Goodwill, gross at the beginning of the period | $269,883 | |
Accumulated impairment losses at the beginning of the period | -172,359 | |
Goodwill, Beginning Balance | 97,524 | |
Goodwill acquired | 7,841 | |
Foreign currency impact | -722 | |
Goodwill, gross at the end of the period | 277,002 | |
Accumulated impairment losses at the end of the period | -172,359 | |
Goodwill, Ending Balance | 104,643 | |
Photonics | ||
Changes in the carrying amount of goodwill | ||
Goodwill, gross at the beginning of the period | 98,808 | |
Accumulated impairment losses at the beginning of the period | -47,458 | |
Goodwill, Beginning Balance | 51,350 | |
Goodwill, gross at the end of the period | 98,808 | 98,808 |
Accumulated impairment losses at the end of the period | -47,458 | -47,458 |
Goodwill, Ending Balance | 51,350 | 51,350 |
Lasers | ||
Changes in the carrying amount of goodwill | ||
Goodwill, gross at the beginning of the period | 129,761 | |
Accumulated impairment losses at the beginning of the period | -104,562 | |
Goodwill, Beginning Balance | 25,199 | |
Goodwill acquired | 7,841 | |
Foreign currency impact | -722 | |
Goodwill, gross at the end of the period | 136,880 | |
Accumulated impairment losses at the end of the period | -104,562 | |
Goodwill, Ending Balance | 32,318 | |
Optics | ||
Changes in the carrying amount of goodwill | ||
Goodwill, gross at the beginning of the period | 41,314 | |
Accumulated impairment losses at the beginning of the period | -20,339 | |
Goodwill, Beginning Balance | 20,975 | |
Goodwill, gross at the end of the period | 41,314 | 41,314 |
Accumulated impairment losses at the end of the period | -20,339 | -20,339 |
Goodwill, Ending Balance | $20,975 | $20,975 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Intangible assets subject to amortization: | ||
Intangible assets | $53,788 | $52,506 |
Developed technology | ||
Intangible assets subject to amortization: | ||
Intangible assets | 29,424 | 28,864 |
Accumulated amortization | 10,170 | 16,782 |
Customer relationships | ||
Intangible assets subject to amortization: | ||
Intangible assets | 9,898 | 10,515 |
Accumulated amortization | 18,748 | 37,312 |
In-process research and development | ||
Intangible assets subject to amortization: | ||
Intangible assets | 13,356 | 11,965 |
Accumulated amortization | 1,110 | 1,496 |
Other intangible assets | ||
Intangible assets subject to amortization: | ||
Intangible assets | 1,110 | 1,162 |
Accumulated amortization | $1,071 | $6,299 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS (Details 3) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Intangible assets subject to amortization: | ||
Intangible assets | $53,788 | $52,506 |
Intangible assets not subject to amortization: | ||
Trademarks and trade names | 18,305 | 18,305 |
Intangible assets, net | $72,093 | $70,811 |
GOODWILL_AND_INTANGIBLE_ASSETS5
GOODWILL AND INTANGIBLE ASSETS (Details 4) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Intangible assets, excluding goodwill | ||
Amortization expense related to intangible assets | $2.10 | $2.50 |
Developed technology | Minimum | ||
Intangible assets, excluding goodwill | ||
Intangible asset amortization period | 10 years | |
Developed technology | Maximum | ||
Intangible assets, excluding goodwill | ||
Intangible asset amortization period | 20 years | |
Customer relationships | Maximum | ||
Intangible assets, excluding goodwill | ||
Intangible asset amortization period | 10 years | |
Other intangible assets except product trademarks and trade names | Minimum | ||
Intangible assets, excluding goodwill | ||
Intangible asset amortization period | 3 months | |
Other intangible assets except product trademarks and trade names | Maximum | ||
Intangible assets, excluding goodwill | ||
Intangible asset amortization period | 10 years | |
Trade names | Minimum | ||
Intangible assets, excluding goodwill | ||
Intangible asset amortization period | 10 years | |
Trade names | Maximum | ||
Intangible assets, excluding goodwill | ||
Intangible asset amortization period | 20 years |
GOODWILL_AND_INTANGIBLE_ASSETS6
GOODWILL AND INTANGIBLE ASSETS (Details 5) (USD $) | Apr. 04, 2015 |
Estimated aggregate amortization expense | |
2015 (remaining) | $6,198,000 |
2016 | 7,813,000 |
2017 | 6,673,000 |
2018 | 4,509,000 |
2019 | 3,919,000 |
Thereafter | 17,462,000 |
Total estimated future amortization expense | 46,574,000 |
Future IPR&D expense excluded from estimated future expense | $7,200,000 |
INTEREST_AND_OTHER_EXPENSE_NET2
INTEREST AND OTHER EXPENSE, NET (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
INTEREST AND OTHER EXPENSE, NET | ||
Interest expense | ($565) | ($661) |
Interest and dividend income | 41 | 53 |
Derivative loss | -124 | -12 |
Bank and portfolio asset management fees | -354 | -260 |
Other income (expense), net | 99 | -96 |
Total | ($903) | ($976) |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
Total stock-based compensation expense included in the Company's consolidated statements of operations | ||
Stock-based compensation expense | $4,084,000 | $2,337,000 |
Unrecognized total compensation cost | ||
Unrecognized stock-based compensation expense related to non-vested stock-based awards | 14,500,000 | |
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 | 396,000 | 212,000 |
Selling, general and administrative expenses | ||
Total stock-based compensation expense included in the Company's consolidated statements of operations | ||
Stock-based compensation expense | 3,196,000 | 1,836,000 |
Research and development expense. | ||
Total stock-based compensation expense included in the Company's consolidated statements of operations | ||
Stock-based compensation expense | $492,000 | $289,000 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Apr. 04, 2015 |
Stock Options | |
Stock-based compensation | |
Stock options outstanding (in shares) | 42,000 |
Stock options outstanding, weighted average exercise price (in dollars per share) | $13.79 |
Stock options outstanding, intrinsic value | $0.20 |
Stock options outstanding, remaining contractual term | 8 months 12 days |
Stock options exercisable (in shares) | 42,000 |
Stock options exercisable, weighted average exercise price (in dollars per share) | $13.79 |
Stock options exercisable, intrinsic value | 0.2 |
Stock options exercisable, remaining contractual term | 8 months 12 days |
Stock appreciation rights | |
Stock-based compensation | |
Stock appreciation rights outstanding (in shares) | 2,000,000 |
Stock appreciation rights outstanding, weighted average base value (in dollars per share) | $14.72 |
Stock appreciation rights outstanding, intrinsic value | 8.8 |
Stock appreciation rights outstanding, remaining contractual term | 4 years 4 months 24 days |
Stock appreciation rights exercisable (in shares) | 1,400,000 |
Stock appreciation rights exercisable, weighted-average base value (in dollars per share) | $13.92 |
Stock appreciation rights exercisable, intrinsic value | $7.40 |
Stock appreciation rights exercisable, remaining contractual term | 3 years 9 months 18 days |
DEBT_AND_LINES_OF_CREDIT_Detai
DEBT AND LINES OF CREDIT (Details) (USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Short-term borrowings | ||
Total short-term borrowings | $3,567 | $3,772 |
Foreign line of credit | Revolving line of credit | Japanese revolving lines of credit | ||
Short-term borrowings | ||
Total short-term borrowings | 2,851 | 3,163 |
Receivables financing | Japanese receivables financing facilities | ||
Short-term borrowings | ||
Total short-term borrowings | 277 | 25 |
Loans | Israeli loans due October 2015 | ||
Short-term borrowings | ||
Total short-term borrowings | $439 | $584 |
DEBT_AND_LINES_OF_CREDIT_Detai1
DEBT AND LINES OF CREDIT (Details 2) (Secured debt, Revolving line of credit, U.S. revolving line of credit expiring July 2018, USD $) | Apr. 04, 2015 | Jan. 03, 2015 |
In Thousands, unless otherwise specified | ||
Secured debt | Revolving line of credit | U.S. revolving line of credit expiring July 2018 | ||
Long-term debt | ||
Total long-term debt | $78,000 | $71,000 |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
NET INCOME PER SHARE | ||
Net income attributable to Newport Corporation | $8,664 | $7,886 |
Shares: | ||
Weighted average shares outstanding - basic | 39,601 | 39,525 |
Dilutive potential common shares, using treasury stock method | 959 | 974 |
Weighted average shares outstanding - diluted | 40,560 | 40,499 |
Net income per share attributable to Newport Corporation: | ||
Basic (in dollars per share) | $0.22 | $0.20 |
Diluted (in dollars per share) | $0.21 | $0.19 |
NET_INCOME_PER_SHARE_Details_2
NET INCOME PER SHARE (Details 2) (Stock options and stock appreciation rights) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Stock options and stock appreciation rights | ||
Net income per share | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0.6 | 0.1 |
INCOME_TAXES_Details
INCOME TAXES (Details) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
INCOME TAXES | ||
Effective rate | 31.90% | 31.20% |
U.S. statutory rate | 35.00% |
STOCKHOLDERS_EQUITY_TRANSACTIO1
STOCKHOLDERS' EQUITY TRANSACTIONS (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data in Millions, unless otherwise specified | Apr. 04, 2015 | 31-May-08 |
STOCKHOLDERS' EQUITY TRANSACTIONS | ||
Shares of common stock authorized to be repurchased | 4 | |
Purchases made under the program | 0.3 | |
Shares repurchased, value (in dollars) | $5,995 | |
Remaining shares to be repurchased | 3 |
STOCKHOLDERS_EQUITY_TRANSACTIO2
STOCKHOLDERS' EQUITY TRANSACTIONS (Details 2) (Restricted stock units, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Apr. 04, 2015 |
Restricted stock units | |
Stock-based compensation | |
Cancelled (in shares) | 0.2 |
Cancelled, value | $3.40 |
DEFINED_BENEFIT_PENSION_PLANS_1
DEFINED BENEFIT PENSION PLANS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Net periodic benefit costs | ||
Service cost | $523 | $213 |
Interest cost on benefit obligations | 121 | 175 |
Expected return on plan assets | -43 | -70 |
Amortization of net loss | 92 | 45 |
Total | $693 | $363 |
BUSINESS_SEGMENT_INFORMATION_D
BUSINESS SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
segment | ||
Segment Reporting Information, by Segment | ||
Number of operating segments | 3 | |
Sales to external customers | $156,655 | $146,890 |
Segment income | 13,629 | 12,526 |
Photonics | ||
Segment Reporting Information, by Segment | ||
Sales to external customers | 64,238 | 59,470 |
Lasers | ||
Segment Reporting Information, by Segment | ||
Sales to external customers | 49,859 | 46,474 |
Optics | ||
Segment Reporting Information, by Segment | ||
Sales to external customers | 42,558 | 40,946 |
Operating segments | ||
Segment Reporting Information, by Segment | ||
Segment income | 27,436 | 23,682 |
Operating segments | Photonics | ||
Segment Reporting Information, by Segment | ||
Segment income | 17,152 | 13,546 |
Operating segments | Lasers | ||
Segment Reporting Information, by Segment | ||
Segment income | 5,624 | 5,580 |
Operating segments | Optics | ||
Segment Reporting Information, by Segment | ||
Segment income | $4,660 | $4,556 |
BUSINESS_SEGMENT_INFORMATION_D1
BUSINESS SEGMENT INFORMATION (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Reconciliation of segment income to consolidated income before income taxes | ||
Segment income | $13,629 | $12,526 |
(Loss) gain on disposal of assets | -1,088 | 411 |
Interest and other expense, net | -903 | -976 |
Income before income taxes | 12,726 | 11,550 |
Operating segments | ||
Reconciliation of segment income to consolidated income before income taxes | ||
Segment income | 27,436 | 23,682 |
Unallocated amount to segment | ||
Reconciliation of segment income to consolidated income before income taxes | ||
Unallocated operating expenses | ($12,719) | ($11,567) |