Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'FLIR SYSTEMS INC | ' | ' |
Entity Central Index Key | '0000354908 | ' | ' |
Trading Symbol | 'FLIR | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 140,878,393 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $3,793,399,921 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Revenue | $1,496,372 | $1,405,358 | $1,544,062 |
Cost of goods sold | 759,362 | 670,174 | 714,743 |
Gross profit | 737,010 | 735,184 | 829,319 |
Operating Expenses [Abstract] | ' | ' | ' |
Research and development | 147,696 | 137,354 | 147,177 |
Selling, general and administrative | 322,739 | 292,500 | 368,947 |
Restructuring expenses | 25,832 | 2,000 | 0 |
Total operating expenses | 496,267 | 431,854 | 516,124 |
Earnings from operations | 240,743 | 303,330 | 313,195 |
Interest expense | 14,091 | 11,659 | 5,487 |
Interest income | -1,058 | -1,582 | -1,273 |
Other expense (income), net | -1,276 | 1,341 | -2,098 |
Earnings from continuing operations before income taxes | 228,986 | 291,912 | 311,079 |
Income tax provision | 51,971 | 66,556 | 88,427 |
Earnings from continuing operations | 177,015 | 225,356 | 222,652 |
Loss from discontinued operations, net of tax | 0 | -2,958 | -1,178 |
Net earnings | $177,015 | $222,398 | $221,474 |
Basic earnings per share: | ' | ' | ' |
Continuing operations | $1.24 | $1.49 | $1.41 |
Discontinued operations | $0 | ($0.02) | ($0.01) |
Basic earnings per share | $1.24 | $1.47 | $1.40 |
Diluted earnings per share: | ' | ' | ' |
Continuing operations | $1.22 | $1.47 | $1.38 |
Discontinued operations | $0 | ($0.02) | ($0.01) |
Diluted earnings per share | $1.22 | $1.45 | $1.38 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net earnings | $177,015 | $222,398 | $221,474 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Pension plans | 2,961 | 745 | -1,113 |
Fair value adjustment on interest rate swap contracts | 1,660 | 0 | 0 |
Foreign currency translation adjustments | 11,838 | 20,790 | -12,533 |
Total other comprehensive income (loss) | 16,459 | 21,535 | -13,646 |
Comprehensive income | $193,474 | $243,933 | $207,828 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $1,682 | $558 | ($653) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $542,476 | $321,739 |
Accounts receivable, net | 286,573 | 335,163 |
Inventories | 344,719 | 379,080 |
Prepaid expenses and other current assets | 97,574 | 98,304 |
Deferred income taxes, net | 38,389 | 30,960 |
Total current assets | 1,309,731 | 1,165,246 |
Property and equipment, net | 234,041 | 211,615 |
Deferred income taxes, net | 17,883 | 32,223 |
Goodwill | 575,701 | 564,306 |
Intangible assets, net | 154,195 | 175,823 |
Other assets | 51,808 | 41,442 |
Assets, Total | 2,343,359 | 2,190,655 |
Current liabilities: | ' | ' |
Accounts payable | 85,730 | 94,156 |
Deferred revenue | 28,844 | 29,465 |
Accrued payroll and related liabilities | 62,069 | 41,506 |
Accrued product warranties | 14,665 | 13,169 |
Advance payments from customers | 25,414 | 12,150 |
Accrued expenses | 39,316 | 32,772 |
Accrued income taxes | 663 | 11,943 |
Other current liabilities | 4,814 | 6,406 |
Current portion, long-term debt | 15,000 | 0 |
Total current liabilities | 276,515 | 241,567 |
Long-term debt | 372,528 | 248,319 |
Deferred income taxes | 12,255 | 19,071 |
Accrued income taxes | 19,996 | 22,812 |
Pension and other long-term liabilities | 48,685 | 58,985 |
Commitments and contingencies (Notes 12 and 13) | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at December 31, 2013 or 2012 | 0 | 0 |
Common stock, $0.01 par value, 500,000 shares authorized, 140,782 and 145,814 shares issued at December 31, 2013 and 2012, respectively, and additional paid-in capital | 42,955 | 171,546 |
Retained earnings | 1,544,425 | 1,418,814 |
Accumulated other comprehensive earnings | 26,000 | 9,541 |
Total shareholders' equity | 1,613,380 | 1,599,901 |
Total liabilities and shareholders' equity | $2,343,359 | $2,190,655 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 500,000 | 500,000 |
Common stock, shares issued | 140,782 | 145,814 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings (Loss) |
In Thousands, unless otherwise specified | ||||
Balance at beginning of period at Dec. 31, 2010 | $1,522,548 | $465,467 | $1,055,429 | $1,652 |
Balance (in shares) at beginning of period at Dec. 31, 2010 | ' | 159,212 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Net earnings for the year | 221,474 | ' | 221,474 | ' |
Income tax benefit of common stock options exercised | 5,545 | 5,545 | ' | ' |
Repurchase of common stock (in shares) | ' | -6,135 | ' | ' |
Repurchase of common stock | -160,669 | -160,669 | ' | ' |
Common stock issued pursuant to stock-based compensation plans, net (in shares) | ' | 1,892 | ' | ' |
Common stock issued pursuant to stock-based compensation plans, net | 16,751 | 16,751 | ' | ' |
Stock-based compensation expense | 25,063 | 25,063 | ' | ' |
Dividends paid | -38,037 | ' | -38,037 | ' |
Other comprehensive income (loss) | -13,646 | ' | ' | -13,646 |
Balance at end of period at Dec. 31, 2011 | 1,579,029 | 352,157 | 1,238,866 | -11,994 |
Balance (in shares) at end of period at Dec. 31, 2011 | ' | 154,969 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Net earnings for the year | 222,398 | ' | 222,398 | ' |
Income tax benefit of common stock options exercised | 39 | 39 | ' | ' |
Repurchase of common stock (in shares) | ' | -10,466 | ' | ' |
Repurchase of common stock | -214,195 | -214,195 | ' | ' |
Common stock issued pursuant to stock-based compensation plans, net (in shares) | ' | 1,311 | ' | ' |
Common stock issued pursuant to stock-based compensation plans, net | 7,644 | 7,644 | ' | ' |
Stock-based compensation expense | 25,901 | 25,901 | ' | ' |
Dividends paid | -42,450 | ' | -42,450 | ' |
Other comprehensive income (loss) | 21,535 | ' | ' | 21,535 |
Balance at end of period at Dec. 31, 2012 | 1,599,901 | 171,546 | 1,418,814 | 9,541 |
Balance (in shares) at end of period at Dec. 31, 2012 | ' | 145,814 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Net earnings for the year | 177,015 | ' | 177,015 | ' |
Income tax benefit of common stock options exercised | 551 | 551 | ' | ' |
Repurchase of common stock (in shares) | ' | -5,988 | ' | ' |
Repurchase of common stock | -162,078 | -162,078 | ' | ' |
Common stock issued pursuant to stock-based compensation plans, net (in shares) | ' | 956 | ' | ' |
Common stock issued pursuant to stock-based compensation plans, net | 4,849 | 4,849 | ' | ' |
Stock-based compensation expense | 28,087 | 28,087 | ' | ' |
Dividends paid | -51,404 | ' | -51,404 | ' |
Other comprehensive income (loss) | 16,459 | ' | ' | 16,459 |
Balance at end of period at Dec. 31, 2013 | $1,613,380 | $42,955 | $1,544,425 | $26,000 |
Balance (in shares) at end of period at Dec. 31, 2013 | ' | 140,782 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH PROVIDED BY OPERATING ACTIVITIES: | ' | ' | ' |
Net earnings | $177,015 | $222,398 | $221,474 |
Income items not affecting cash: | ' | ' | ' |
Depreciation and amortization | 62,796 | 59,715 | 77,498 |
Deferred income taxes | -2,709 | -10,940 | -12,195 |
Stock-based compensation arrangements | 27,823 | 26,250 | 24,917 |
Other non-cash items | 4,564 | -1,810 | 12,654 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' | ' |
Decrease in accounts receivable | 48,640 | 10,693 | 17,992 |
Decrease (increase) in inventories | 35,181 | -23,733 | -48,361 |
Decrease (increase) in prepaid expenses and other current assets | 5,434 | -1,004 | -11,104 |
(Increase) decrease in other assets | -1,520 | 1,879 | -5,589 |
Decrease in accounts payable | -8,617 | -1,672 | -5,565 |
(Decrease) increase in deferred revenue | -659 | 1,153 | 5,426 |
Increase (decrease) in accrued payroll and other liabilities | 36,017 | -25,415 | -25,599 |
(Decrease) increase in accrued income taxes | -18,898 | 20,141 | -9,865 |
(Decrease) Increase in pension and other long-term liabilities | -10,102 | 7,890 | 2,208 |
Cash provided by operating activities | 354,965 | 285,545 | 243,891 |
CASH USED BY INVESTING ACTIVITIES: | ' | ' | ' |
Additions to property and equipment | -52,061 | -58,089 | -41,946 |
Business acquisitions, net of cash acquired | -20,073 | -105,909 | -27,182 |
Other investments | 0 | -3,002 | 1,991 |
Cash used by investing activities | -72,134 | -167,000 | -67,137 |
CASH (USED) PROVIDED BY FINANCING ACTIVITIES: | ' | ' | ' |
Net proceeds of long-term debt, including current portion | 150,000 | 0 | 247,708 |
Repayment of long-term debt | -11,250 | 0 | 0 |
Repurchase of common stock | -162,078 | -214,195 | -160,669 |
Dividends paid | -51,404 | -42,450 | -38,037 |
Proceeds from shares issued pursuant to stock-based compensation plans | 8,650 | 11,198 | 21,706 |
Excess tax benefit of stock options exercised | 1,069 | 1,284 | 5,195 |
Other financing activities | -1,100 | -166 | -458 |
Cash (used) provided by financing activities | -66,113 | -244,329 | 75,445 |
Effect of exchange rate changes on cash | 4,019 | 6,677 | -4,490 |
Net increase (decrease) in cash and cash equivalents | 220,737 | -119,107 | 247,709 |
Cash and cash equivalents, beginning of year | 321,739 | 440,846 | 193,137 |
Cash and cash equivalents, end of year | $542,476 | $321,739 | $440,846 |
Nature_of_Business_and_Signifi
Nature of Business and Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Nature of Business and Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Nature of Business and Significant Accounting Policies | ' | ||||||||||||||||
Nature of Business and Significant Accounting Policies | |||||||||||||||||
FLIR Systems, Inc. (the "Company") is a world leader in sensor systems that enhance perception and awareness. The Company was founded in 1978 and has since become a premier designer, manufacturer, and marketer of thermal imaging and other sensing products and systems. The Company’s advanced sensors and integrated sensor systems enable the gathering and analysis of critical information through a wide variety of applications in commercial, industrial, and government markets worldwide. | |||||||||||||||||
The Company’s goal is to both enable its customers to benefit from the valuable information produced by advanced sensing technologies and to deliver sustained superior financial performance for its shareholders. The Company creates value for its customers by providing advanced surveillance and tactical defense capabilities, improving personal and public safety and security, facilitating air, ground, and maritime navigation, enhancing enjoyment of the outdoors, providing infrastructure inefficiency information, conveying pre-emptive structural deficiency data, displaying process irregularities, and enabling commercial business opportunities through its continual support and development of new thermal imaging data and analytics applications. The Company’s business model meets the needs of a multitude of customers—it sells off-the-shelf products to a wide variety of markets in an efficient, timely, and affordable manner as well as offers a variety of system configurations to suit specific customer requirements. Centered on the design of products for low cost manufacturing and high volume distribution, the Company’s commercial operating model has been developed over time and provides it with a unique ability to adapt to market changes and meet its customers’ needs. | |||||||||||||||||
Principles of consolidation | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions were eliminated. | |||||||||||||||||
Reclassification | |||||||||||||||||
The Company made certain reclassifications to the prior years' financial statements to conform them to the presentation as of and for the year ended December 31, 2013. The reclassifications included certain severance expenses of $3.8 million and $0.7 million recognized during the years ended December 31, 2012 and 2011, respectively, that were originally reported in cost of goods sold and are now reported as operating expenses, and certain demonstration assets of $2.3 million that were originally reported as inventory at December 31, 2012 that are now reported in other current assets. In addition, the December 31, 2012 balance sheet has been adjusted for the purchase price accounting that was completed during 2013 associated with the acquisitions of Lorex Technology Inc. ("Lorex") and Traficon International NV ("Traficon"). See Note 7, "Goodwill," Note 8, "Intangible Assets," Note 14, "Income Taxes," and Note 18, "Business Acquisitions" for additional information. These reclassifications had no effect on consolidated financial position, shareholders' equity or net cash flows for any of the periods presented. | |||||||||||||||||
Foreign currency translation | |||||||||||||||||
The assets and liabilities of the Company’s subsidiaries outside the United States are translated into United States dollars at current exchange rates in effect at the balance sheet date. Revenues and expenses are translated at monthly average exchange rates. Resulting translation adjustments are reflected in accumulated other comprehensive earnings within shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in currencies other than the functional currency are reflected as other income, net, in the Consolidated Statements of Income as incurred. | |||||||||||||||||
The cumulative translation adjustment included in accumulated other comprehensive earnings is a gain of $26.5 million and a gain of $14.7 million at December 31, 2013 and 2012, respectively. Transaction gains and losses included in other income, net, are a net loss of $0.3 million, a net loss of $3.0 million, and a net gain of $1.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
Note 1. | Nature of Business and Significant Accounting Policies—(Continued) | ||||||||||||||||
Revenue recognition | |||||||||||||||||
Revenue is primarily recognized when persuasive evidence of an arrangement exists, upon delivery of the product to the customer at a fixed or determinable price with a reasonable assurance of collection, passage of title and risk of loss to the customer as indicated by the shipping terms and fulfillment of all significant obligations. | |||||||||||||||||
The Company designs, markets and sells products primarily as commercial, off-the-shelf products. Certain customers request different system configurations, based on standard options or accessories that the Company offers. In general, revenue arrangements do not involve acceptance provisions based upon customer specified acceptance criteria. In those limited circumstances when customer specified acceptance criteria exist, revenue is deferred until customer acceptance if the Company cannot demonstrate the system meets those specifications prior to shipment. For any contracts with multiple elements (i.e., training, installation, additional parts, etc.) the Company allocates revenue among the deliverables primarily based upon objective and reliable evidence of fair value of each element in the arrangement. If objective and reliable evidence of fair value of any element is not available, we use an estimated selling price for purposes of allocating the total arrangement consideration among the elements. Credit is not extended to customers and revenue is not recognized until the Company has determined that the risk of uncollectability is minimal. | |||||||||||||||||
The Company’s products are sold with warranty provisions that require it to remedy deficiencies in quality or performance of the Company’s products over a specified period of time, generally twelve to twenty-four months, at no cost to its customers. Warranty liabilities are established at the time that revenue is recognized at levels that represent the Company’s estimate of the costs that will be incurred to fulfill those warranty requirements. | |||||||||||||||||
Provisions for estimated losses on sales or related receivables are recorded when identified. Revenue includes certain shipping and handling costs and is stated net of representative commissions and sales taxes. Service revenue is deferred and recognized over the contract period, as is the case for extended warranty contracts, or recognized as services are provided. | |||||||||||||||||
Cost of goods sold | |||||||||||||||||
Cost of goods sold includes materials, labor and overhead costs incurred in the manufacturing of products and services sold in the period as well as warranty costs. Material costs include raw materials, purchased components and sub-assemblies, outside processing and inbound freight costs. Labor and overhead costs consist of direct and indirect manufacturing costs, including wages and fringe benefits, operating supplies, depreciation, occupancy costs, and purchasing, receiving and inspection costs. | |||||||||||||||||
Research and development | |||||||||||||||||
Expenditures for research and development activities are expensed as incurred. | |||||||||||||||||
Cash equivalents | |||||||||||||||||
The Company considers short-term investments that are highly liquid, readily convertible into cash and have maturities of less than three months when purchased to be cash equivalents. Cash equivalents at December 31, 2013 and 2012 were $28.5 million and $5.9 million, respectively, which were primarily investments in money market funds. | |||||||||||||||||
Accounts receivable and allowance for doubtful accounts | |||||||||||||||||
Accounts receivable are stated at the amounts the Company expects to collect. Credit limits are established through a process of reviewing the financial history and stability of each customer. The Company regularly evaluates the collectability of its trade receivables balances based on a combination of factors. If it is determined that a customer will be unable to fully meet its financial obligation, the Company records a specific allowance to reduce the related receivable to the amount expected to be recovered. In addition, the Company also records an allowance for all other customers based on certain other factors including the length of time the receivables are past due and historical collection experience with individual customers. | |||||||||||||||||
Note 1. | Nature of Business and Significant Accounting Policies—(Continued) | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories are generally stated at the lower of cost or market and include materials, labor, and manufacturing overhead. Cost is determined based on a currently adjusted standard cost basis that approximates actual manufacturing cost on a first-in, first-out basis. | |||||||||||||||||
Inventory write-downs are recorded when conditions exist to indicate that inventories are likely to be in excess of anticipated demand or are obsolete based upon the Company’s assumptions about future demand for its products and market conditions. The Company regularly evaluates its ability to realize the value of inventories based on a combination of factors including the following: historical usage rates, forecasted sales or usage, product end of life dates, estimated current and future market values and new product introductions. When recorded, write-downs reduce the carrying value of the Company’s inventories to their net realizable value and create a new cost-basis in the inventories. Write-downs are reflected in cost of goods sold in the Consolidated Statements of Income. | |||||||||||||||||
Demonstration units | |||||||||||||||||
The Company’s products which are being used as demonstration units are stated at the lower of cost or market and are included in prepaid expenses and other current assets in the Consolidated Balance Sheets. Demonstration units are available for sale and the Company periodically evaluates them as to marketability and realizable values. The carrying value of demonstration units was $42.7 million and $35.8 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||
Property and equipment | |||||||||||||||||
Property and equipment are stated at cost and are depreciated using a straight-line methodology over their estimated useful lives. Repairs and maintenance are charged to expense as incurred. | |||||||||||||||||
Goodwill | |||||||||||||||||
Goodwill is reviewed during the third quarter of each year, or more frequently if warranted, for impairment to determine if events or changes in business conditions indicate that the carrying value may not be recoverable. See Note 7, "Goodwill," for additional information. | |||||||||||||||||
Intangible assets | |||||||||||||||||
Intangible assets are amortized using a straight-line methodology over their estimated useful lives. Intangible assets with indefinite useful lives are evaluated annually for impairment, or more frequently if required. The Company did not recognize any impairment charges on intangible assets with indefinite lives during the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||
Long-lived asset groups are reviewed for impairment when circumstances indicate that the carrying amounts may not be recoverable. Impairment exists when the carrying value is greater than the expected undiscounted future cash flows expected to be provided by the asset group. If impairment exists, the asset group is written down to its fair value. The Company did not recognize any impairment charges on long-lived assets during the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
Advertising costs | |||||||||||||||||
Advertising costs, which are included in selling, general and administrative expenses, are expensed as incurred. Advertising costs for the years ended December 31, 2013, 2012 and 2011 were $10.7 million, $8.5 million and $11.1 million, respectively. | |||||||||||||||||
Cost-basis investments | |||||||||||||||||
The Company has private company investments, which consist of investments for which the Company does not have the ability to exercise significant influence, and are accounted for under the cost method. The investments are carried at cost and adjusted only when the Company believes that events have occurred that are likely to have a significant other-than-temporary adverse effect on the estimated fair value of the investments. If no such events have occurred, the fair value of the investments is not calculated as it is not practicable to do so. The carrying value of those investments was $13.5 million at December 31, 2013 and 2012. The investments are included in other assets in the Consolidated Balance Sheets. | |||||||||||||||||
Note 1. | Nature of Business and Significant Accounting Policies—(Continued) | ||||||||||||||||
Contingencies | |||||||||||||||||
The Company is subject to the possibility of loss contingencies arising in the normal course of business. An estimated loss is accrued when the Company determines that it is probable that an asset has been impaired or a liability has been incurred and the amount can be reasonably estimated. The Company regularly evaluates current available information to determine whether such accruals should be adjusted. | |||||||||||||||||
Earnings per share | |||||||||||||||||
Basic earnings per share is based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted shares outstanding are increased to include additional shares from the assumed exercise of stock options, if dilutive, assumed issuance of unvested restricted stock awards and from the assumed conversion of the convertible notes. | |||||||||||||||||
The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Numerator for earnings per share: | |||||||||||||||||
Earnings from continuing operations | $ | 177,015 | $ | 225,356 | $ | 222,652 | |||||||||||
Loss from discontinued operations | — | (2,958 | ) | (1,178 | ) | ||||||||||||
Net earnings for basic and diluted earnings per share | $ | 177,015 | $ | 222,398 | $ | 221,474 | |||||||||||
Denominator for earnings per share: | |||||||||||||||||
Weighted average number of common shares outstanding | 142,446 | 151,634 | 158,323 | ||||||||||||||
Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method | 2,149 | 1,960 | 2,528 | ||||||||||||||
Diluted shares outstanding | 144,595 | 153,594 | 160,851 | ||||||||||||||
The effect of stock-based compensation awards for the years ended December 31, 2013, 2012 and 2011 that aggregated 549,000, 1,198,000 and 352,000 shares have been excluded for purposes of diluted earnings per share since the effect would have been anti-dilutive. | |||||||||||||||||
Supplemental cash flow disclosure (in thousands) | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cash paid for: | |||||||||||||||||
Interest | $ | 12,922 | $ | 10,239 | $ | 1,119 | |||||||||||
Taxes | $ | 88,277 | $ | 74,333 | $ | 106,215 | |||||||||||
Note 1. | Nature of Business and Significant Accounting Policies—(Continued) | ||||||||||||||||
Stock-based compensation | |||||||||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards and shares expected to be issued under the Company's employee stock purchase plan. Nonvested stock awards (referred to as restricted stock unit awards) are valued at the fair market value of the Company's stock, discounted for dividends, on the date of grant, except for market-based restricted stock units for which the fair value is determined on the date of grant using a lattice-based option-pricing valuation model that incorporates a Monte-Carlo simulation. The Company recognizes the compensation expense for all stock-based compensation awards on a straight-line basis over the requisite service period of each award. | |||||||||||||||||
The following table sets forth the stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income for the years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of goods sold | $ | 2,591 | $ | 3,197 | $ | 3,306 | |||||||||||
Research and development | 4,938 | 5,001 | 5,195 | ||||||||||||||
Selling, general and administrative | 20,294 | 18,052 | 16,416 | ||||||||||||||
Stock-based compensation expense before income taxes | 27,823 | 26,250 | 24,917 | ||||||||||||||
Income tax benefit | (8,598 | ) | (7,737 | ) | (6,976 | ) | |||||||||||
Total stock-based compensation expense after income taxes | $ | 19,225 | $ | 18,513 | $ | 17,941 | |||||||||||
Stock-based compensation expense capitalized in the Consolidated Balance Sheets as of December 31, 2013, 2012 and 2011 is as follows (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Capitalized in inventory | $ | 734 | $ | 470 | $ | 819 | |||||||||||
As of December 31, 2013, the Company had approximately $42.7 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of 1.8 years. | |||||||||||||||||
The fair value of the stock-based awards granted in the years ended December 31, 2013, 2012 and 2011 was estimated with the following weighted-average assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock option awards: | |||||||||||||||||
Risk-free interest rate | 0.3 | % | 0.4 | % | 1 | % | |||||||||||
Expected dividend yield | 1.5 | % | 1.3 | % | 0.7 | % | |||||||||||
Expected term | 4.3 years | 4.2 years | 4.3 years | ||||||||||||||
Expected volatility | 33.7 | % | 39.7 | % | 42.3 | % | |||||||||||
Market-based restricted stock awards: | |||||||||||||||||
Risk-free interest rate | 0.3 | % | 0.4 | % | N/A | ||||||||||||
Expected dividend yield | 0 | % | 0 | % | N/A | ||||||||||||
Expected term | 2.2 years | 3.0 years | N/A | ||||||||||||||
Expected volatility | 28.8 | % | 30.7 | % | N/A | ||||||||||||
Expected volatility of S&P 500 | 18.1 | % | 19.6 | % | N/A | ||||||||||||
Employee stock purchase plan: | |||||||||||||||||
Risk-free interest rate | 0.1 | % | 0.2 | % | 0.1 | % | |||||||||||
Expected dividend yield | 1.4 | % | 1.3 | % | 0.8 | % | |||||||||||
Expected term | 6 months | 6 months | 6 months | ||||||||||||||
Expected volatility | 28.1 | % | 25.2 | % | 33.1 | % | |||||||||||
Note 1. | Nature of Business and Significant Accounting Policies—(Continued) | ||||||||||||||||
The Company uses the United States Treasury (constant maturity) interest rate on the date of grant as the risk-free interest rate and uses historical volatility as the expected volatility. The Company’s determination of expected term is based on an analysis of historical and expected exercise patterns. In 2013, 2012 and 2011, all stock options granted were time-based options. The Company uses an estimated forfeiture rate of 5 percent of the stock-compensation expense of non-executive employees based on an analysis of historical and expected forfeitures. | |||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company granted approximately 1,173,000, 985,000 and 534,000 time-vested restricted stock units, respectively. In addition, during the year ended December 31, 2011, the Company granted approximately 101,000 performance-based restricted stock units. The fair value of time-vested and performance-based restricted stock units is fixed and determined on the date of grant based upon the Company's stock price on the date of grant. The weighted average fair values of the time-vested and performance-based restricted stock units granted during the years ended December 31, 2013, 2012 and 2011 were $23.98, $21.66 and $34.35, respectively. | |||||||||||||||||
During the years ended December 31, 2013 and 2012, the Company also granted approximately 7,000 and 795,000 market-based restricted stock units, respectively. These units may be earned based upon the Company's total shareholder return compared to the total shareholder return of the S&P 500 Index over a three year period. The fair value of the market-based restricted stock units granted during the years ended December 31, 2013 and 2012 was $15.87 and $11.73, respectively. The total fair value of the restricted stock unit awards granted during the years ended December 31, 2013 and 2012 in the table below of $28.2 million and $30.7 million includes $0.1 million and $9.3 million, respectively, of grant date fair value associated with the market-based restricted stock units. | |||||||||||||||||
The weighted-average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock option awards: | |||||||||||||||||
Weighted average grant date fair value per share | $ | 5.92 | $ | 6.43 | $ | 11.61 | |||||||||||
Total fair value of awards granted | $ | 6,095 | $ | 4,104 | $ | 4,613 | |||||||||||
Total fair value of awards vested | $ | 5,059 | $ | 6,023 | $ | 8,492 | |||||||||||
Total intrinsic value of options exercised | $ | 4,642 | $ | 5,928 | $ | 21,234 | |||||||||||
Restricted stock unit awards: | |||||||||||||||||
Weighted average grant date fair value per share | $ | 23.94 | $ | 17.23 | $ | 34.35 | |||||||||||
Total fair value of awards granted | $ | 28,239 | $ | 30,660 | $ | 21,822 | |||||||||||
Total fair value of awards vested | $ | 13,846 | $ | 12,710 | $ | 19,865 | |||||||||||
Employee stock purchase plan: | |||||||||||||||||
Weighted average grant date fair value per share | $ | 5.94 | $ | 4.66 | $ | 6.99 | |||||||||||
Total fair value of shares estimated to be issued | $ | 1,169 | $ | 1,694 | $ | 2,359 | |||||||||||
The total amount of cash received from the exercise of stock options in the years ended December 31, 2013, 2012 and 2011 was $4.6 million, $3.6 million and $13.8 million, respectively, and the related tax benefit realized from the exercise of the stock options was $0.6 million, $0.1 million and $5.5 million, respectively. | |||||||||||||||||
The Company elected to adopt the “long-haul” method to calculate the historical pool of windfall tax benefits, which calculates on a grant by grant basis, the windfall or excess tax benefit that arose upon the exercise of each stock option, based on a comparison to the total tax deduction to the “as-if” deferred tax asset that would have been recorded had the Company followed the recognition provisions of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 718, “Compensation-Stock Compensation,” since its effective date of January 1, 2006. Additionally, the Company elected to adopt the “tax-law ordering” method of measuring the timing in which tax deductions on stock option exercises should be recognized in the consolidated financial statements. | |||||||||||||||||
Note 1. | Nature of Business and Significant Accounting Policies—(Continued) | ||||||||||||||||
Concentration of risk | |||||||||||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of trade receivables. Concentration of credit risk with respect to trade receivables is limited because a relatively large number of geographically diverse customers make up the Company’s customer base, thus diversifying the trade credit risk. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations for all new customers and requires letters of credit, bank guarantees and advanced payments, if deemed necessary. | |||||||||||||||||
A substantial portion of the Company’s revenue is derived from sales to United States and foreign government agencies (see Note 17, "Operating Segments and Related Information"). The Company also purchases certain key components from sole or limited source suppliers. | |||||||||||||||||
The Company maintains cash deposits with major banks that from time to time may exceed federally insured limits. The Company periodically assesses the financial condition of the institutions and instruments in which it invests, and adjusts its investment balances to mitigate the risk of principal loss. | |||||||||||||||||
Use of estimates | |||||||||||||||||
The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates and judgments made by management of the Company include matters such as collectability of accounts receivable, realizability of inventories, recoverability of deferred tax assets, impairment of goodwill and other long-lived assets, loss contingencies and adequacy of warranty accruals. Actual results could differ from those estimates. The Company believes that the estimates used are reasonable. | |||||||||||||||||
Accumulated other comprehensive earnings | |||||||||||||||||
Accumulated other comprehensive earnings includes cumulative translation adjustments, fair value adjustments on cash flow hedges and changes in minimum liability for pension plans. Foreign currency translation adjustments included in comprehensive income were not tax affected as investments in international affiliates are deemed to be indefinite in duration. | |||||||||||||||||
The following table sets forth the changes in the balances of each component of accumulated other comprehensive income for the year ended December 31. 2013: | |||||||||||||||||
Pension Plans | Cash Flow | Foreign | Total | ||||||||||||||
Items | Hedge Items | Currency | |||||||||||||||
Items | |||||||||||||||||
Balance, December 31, 2012 | $ | (5,127 | ) | $ | — | $ | 14,668 | $ | 9,541 | ||||||||
Other comprehensive income before reclassifications, net of tax | 184 | 1,105 | 11,838 | 13,127 | |||||||||||||
Amounts reclassified from accumulated other comprehensive earnings, net of tax | 2,777 | 555 | — | 3,332 | |||||||||||||
Net current period other comprehensive income, net of tax | 2,961 | 1,660 | 11,838 | 16,459 | |||||||||||||
Balance, December 31, 2013 | $ | (2,166 | ) | $ | 1,660 | $ | 26,506 | $ | 26,000 | ||||||||
The amounts reclassified from accumulated other comprehensive earnings for pension plan items have been recorded in selling, general and administrative expenses and amounts reclassified for cash flow hedge items have been recorded to interest expense in the Company's Consolidated Statement of Income for the year ended December 31, 2013. | |||||||||||||||||
Note 1. | Nature of Business and Significant Accounting Policies—(Continued) | ||||||||||||||||
Recent accounting pronouncements | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" ("ASU 2013-02") which establishes new requirements for disclosing reclassifications of items out of accumulated other comprehensive income and includes identification of the line items in net earnings affected by the reclassifications. ASU 2013-02 is effective for annual and interim periods for fiscal years beginning after December 15, 2012. Accordingly, the Company adopted ASU 2013-02 on January 1, 2013. | |||||||||||||||||
In March 2013, the FASB issued Accounting Standards Update No. 2013-05, "Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity" ("ASU 2013-05") which addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. ASU 2013-05 is effective for annual and interim periods beginning after December 15, 2014. Accordingly, the Company currently intends to adopt ASU 2013-05 on January 1, 2015 and does not expect the adoption of ASU 2013-05 to have a material impact on its consolidated financial statements. | |||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). ASU 2013-11 amends the guidance related to the presentation of unrecognized tax benefits and allows for the reduction of a deferred tax asset for a net operating loss ("NOL") carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. ASU 2013-11 is effective for annual and interim periods for fiscal years beginning after December 15, 2013, and early adoption is permitted. Since ASU 2013-11 relates only to the presentation of unrecognized tax benefits, we do not expect our adoption of ASU 2013-11 in January 2014 will have a material effect on our financial position, results of operations or cash flows. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The Company had $28.5 million and $5.9 million of cash equivalents at December 31, 2013 and 2012, respectively, which were primarily investments in money market funds. The Company has categorized its cash equivalents as a Level 1 financial asset, measured at fair value based on quoted prices in active markets of identical assets, in accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures.” All cash equivalents are in instruments that are convertible to cash daily. The fair value of the Company’s forward currency contracts and interest rate swap contracts as of December 31, 2013 and 2012 are disclosed in Note 3, "Derivative Financial Instruments," and based on Level 2 inputs. The fair value of the Company’s senior unsecured notes as described in Note 11, "Long-Term Debt," is approximately $259.5 million based upon Level 2 inputs at December 31, 2013. The fair value of the Company's term loan, also described in Note 11, approximates the carrying value due to the variable market rate used to calculate interest payments. The Company does not have any other significant financial assets or liabilities that are measured at fair value. | |
The carrying amount of accounts receivable, accounts payable and accrued payroll and related liabilities approximates the fair value of those instruments due to their short-term nature. |
Derivative_Financial_Instrumen
Derivative Financial Instruments (notes) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | ' | |||||||||||||||
Foreign Currency Exchange Rate Risk | ||||||||||||||||
The Company’s foreign businesses enter into contracts with customers and vendors that are denominated in currencies other than their functional currencies. To protect the functional currency equivalent cash flows associated with certain of these contracts, the Company enters into foreign currency forward contracts. The Company’s activities involving foreign currency forward contracts are designed to hedge the changes in the functional currency equivalent cash flows due to movements in foreign exchange rates compared to the functional currency. The foreign currencies hedged are primarily the euro and the Swedish kroner. The Company manages exposure to counterparty non-performance credit risk by entering into foreign currency forward contracts only with major financial institutions that are expected to fully perform under the terms of such contracts. Gains and losses on foreign currency forward contracts are recognized in income at the end of each reporting period based on the difference between the contract rate and the spot rate. The net amount of the gains and losses related to derivative instruments recorded in other expense for the year ended December 31, 2013, 2012 and 2011 were a loss of $4.6 million, a gain of $5.1 million and a loss of $2.3 million, respectively. | ||||||||||||||||
In general, these losses are offset in the Consolidated Statement of Income by the reciprocal gains from the underlying assets or liabilities which originally gave rise to the exposure. | ||||||||||||||||
Note 3. | Derivative Financial Instruments - (Continued) | |||||||||||||||
Notional amounts are used to measure the volume of foreign currency forward contracts and do not represent exposure to foreign currency gains or losses. The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency at December 31, 2013 and 2012 (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Swedish kronor | $ | 99,214 | $ | 98,385 | ||||||||||||
Euro | 265 | 2,232 | ||||||||||||||
British pound sterling | 5,641 | 15,619 | ||||||||||||||
Australian dollar | 5,986 | 7,022 | ||||||||||||||
Japanese yen | 4,462 | 5,157 | ||||||||||||||
Other | 6,362 | 622 | ||||||||||||||
$ | 121,930 | $ | 129,037 | |||||||||||||
At December 31, 2013, the Company’s foreign currency forward contracts, in general, had maturities of six months or less. | ||||||||||||||||
The carrying amount of our derivative instruments included in the Consolidated Balance Sheets are as follows (in thousands): | ||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||
Other Current Assets | Other Current Liabilities | Other Current Assets | Other Current Liabilities | |||||||||||||
Foreign exchange contracts | $ | 392 | $ | 613 | $ | 2,106 | $ | 229 | ||||||||
Interest Rates | ||||||||||||||||
The Company's outstanding long-term debt at December 31, 2013 consists of fixed rate notes and a floating rate term loan. The Company maintains its floating rate revolver for flexibility to fund working capital needs and for other uses of cash. Interest expense on the Company's floating rate debt is typically calculated based on a fixed spread over a reference rate, such as LIBOR (also known as the Eurocurrency rate). Therefore, fluctuations in market interest rates will cause interest expense increases or decreases on a given amount of floating rate debt. | ||||||||||||||||
The Company is managing its interest rate risk related to floating rate debt by entering into interest rate swaps in which the Company receives floating rate payments and makes fixed rate payments. The impact of the interest rate swaps is to fix the floating rate basis for the calculation of interest on the term loan at the levels indicated in the table below. The effective interest rate paid is equal to the fixed rates shown below plus the credit spread then in effect. At December 31, 2013, the effective interest rate on the term loan was 2.49 percent. As of December 31, 2013, the following interest rate swaps were outstanding: | ||||||||||||||||
Contract Date | Notional Amount | Fixed Rate | Effective Date | Maturity Date | ||||||||||||
(in millions) | ||||||||||||||||
15-Mar-13 | $ | 69.4 | 1.0165 | % | 5-Apr-13 | 31-Mar-19 | ||||||||||
29-Mar-13 | $ | 69.4 | 0.97 | % | 5-Apr-13 | 31-Mar-19 | ||||||||||
These interest rate swaps are cash flow hedges and are recorded as an asset or liability in the Company's Consolidated Balance Sheet at fair value. Fair value adjustments are recorded as an adjustment to accumulated other comprehensive (loss) earnings, except that any gains and losses on ineffectiveness of the interest rate swaps would be recorded as an adjustment to other expense (income). The net fair value carrying amount of the Company's interest rate swaps was $2.5 million, of which $3.5 million and $1.0 million have been recorded to other assets and other current liabilities, respectively, in the Consolidated Balance Sheet as of December 31, 2013. The amount recognized in other comprehensive income (loss) during the year ended December 31, 2013 was a gain of $1.7 million, which is net of tax effects. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | |||||||||||
Accounts Receivable | ' | |||||||||||
Accounts Receivable | ||||||||||||
Accounts receivable are net of an allowance for doubtful accounts. The following table summarizes the Company’s allowance for doubtful accounts and the activity for 2013, 2012 and 2011 (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Allowance for doubtful accounts, beginning of year | $ | 6,574 | $ | 5,556 | $ | 5,104 | ||||||
Charges to costs and expenses | 1,571 | 2,383 | 1,699 | |||||||||
Write-offs of uncollectible accounts, net of recoveries | (505 | ) | (1,055 | ) | (973 | ) | ||||||
Business acquisitions and disposals | — | (351 | ) | (148 | ) | |||||||
Currency translation adjustments | 34 | 41 | (126 | ) | ||||||||
Allowance for doubtful accounts, end of year | $ | 7,674 | $ | 6,574 | $ | 5,556 | ||||||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(as adjusted) | ||||||||
Raw material and subassemblies | $ | 204,542 | $ | 231,273 | ||||
Work-in-progress | 45,060 | 50,644 | ||||||
Finished goods | 95,117 | 97,163 | ||||||
$ | 344,719 | $ | 379,080 | |||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Property and Equipment | ' | |||||||||
Property and equipment are summarized as follows (in thousands): | ||||||||||
Estimated | December 31, | |||||||||
Useful Life | 2013 | 2012 | ||||||||
Land | — | $ | 25,254 | $ | 23,194 | |||||
Buildings | 30 years | 115,206 | 109,587 | |||||||
Machinery and equipment | 3 to 7 years | 237,179 | 186,303 | |||||||
Office equipment and other | 3 to 10 years | 91,666 | 83,001 | |||||||
469,305 | 402,085 | |||||||||
Less accumulated depreciation | (235,264 | ) | (190,470 | ) | ||||||
$ | 234,041 | $ | 211,615 | |||||||
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $35.9 million, $35.3 million and $43.8 million, respectively. |
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Disclosure - Goodwill - Additional Information [Abstract] | ' | |||||||||||||||||||||||
Goodwill | ' | |||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
During the year ended December 31, 2013, the Company completed the purchase price accounting associated with the 2012 acquisitions of Lorex and Traficon resulting in an increase of goodwill of $61.2 million which was retrospectively adjusted. Also during 2013, the Company recorded goodwill in connection with its acquisition of Marine and Remote Sensing Solutions, Ltd. ("MARSS") and the acquisition of certain tangible assets and intellectual property from DigitalOptics Corporation East ("DOC Charlotte"). See Note 18, "Business Acquisitions," for additional information. | ||||||||||||||||||||||||
The Company reviews its goodwill for impairment annually during the third quarter, or more frequently, if there is a triggering event. A two-step test is performed to assess goodwill for impairment. First, the fair value of the reporting unit is compared to its carrying value. If the fair value exceeds the carrying value, goodwill is not impaired and no further testing is required. The second step is performed if the carrying value exceeds the fair value. The implied fair value of the reporting unit’s goodwill must be determined and compared to the carrying value of the goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, an impairment loss equal to the difference will be recorded. In determining the fair value of the reporting units, the Company relied upon the Income Approach and the Market Approach. Under the Income Approach, the fair value of a business is based on the cash flows it can be expected to generate over its remaining life. The estimated cash flows are converted to their present value equivalent using an appropriate rate of return and are analyzed within the boundary of the overall market capitalization of the Company. Under the Market Approach, the fair value of the business is based on forecasted earnings multiplied by an average earnings multiplier of a group of the Company’s peers and compared to the net assets of each reporting unit. | ||||||||||||||||||||||||
During the third quarter of 2013, the Company completed its annual review of goodwill and determined that no impairment of its recorded goodwill was necessary. As of December 31, 2013, there had been no triggering events or indicators of impairment that would require an updated impairment review. | ||||||||||||||||||||||||
The carrying value of goodwill by reporting segment and the activity for the two year period ending December 31, 2013 is as follows (in thousands): | ||||||||||||||||||||||||
Thermal Vision and Measurement | Raymarine | Surveillance | Detection | Integrated Systems | Total | |||||||||||||||||||
Balance, December 31, 2011 | $ | 251,187 | $ | 98,364 | $ | 90,501 | $ | 38,162 | $ | 20,129 | $ | 498,343 | ||||||||||||
Currency translation adjustments | 2,039 | 2,380 | 316 | — | — | 4,735 | ||||||||||||||||||
Balance, December 31, 2012 | 253,226 | 100,744 | 90,817 | 38,162 | 20,129 | 503,078 | ||||||||||||||||||
(as originally reported) | ||||||||||||||||||||||||
Retrospective adjustments | 61,228 | — | — | — | — | 61,228 | ||||||||||||||||||
Balance, December 31, 2012 | 314,454 | 100,744 | 90,817 | 38,162 | 20,129 | 564,306 | ||||||||||||||||||
(as adjusted) | ||||||||||||||||||||||||
Goodwill from acquisitions | 2,401 | — | — | — | 2,463 | 4,864 | ||||||||||||||||||
Currency translation adjustments | 4,669 | 1,684 | 77 | — | 101 | 6,531 | ||||||||||||||||||
Balance, December 31, 2013 | $ | 321,524 | $ | 102,428 | $ | 90,894 | $ | 38,162 | $ | 22,693 | $ | 575,701 | ||||||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Intangible Assets [Abstract] | ' | |||||||||
Intangible Assets | ' | |||||||||
Intangible Assets | ||||||||||
Intangible assets are summarized as follows (in thousands): | ||||||||||
Weighted | December 31, | |||||||||
Average | ||||||||||
Estimated | ||||||||||
Useful Life | 2013 | 2012 | ||||||||
(as adjusted) | ||||||||||
Product technology | 11 years | $ | 69,919 | $ | 94,975 | |||||
Customer relationships | 11 years | 83,899 | 84,681 | |||||||
Trademarks and tradename portfolios | 15 years | 7,160 | 7,160 | |||||||
Tradename portfolio not subject to amortization | Indefinite | 39,166 | 38,875 | |||||||
Other | 5 years | 21,996 | 24,319 | |||||||
Acquired identifiable intangibles | 222,140 | 250,010 | ||||||||
Less accumulated amortization | (70,517 | ) | (78,328 | ) | ||||||
Net acquired identifiable intangibles | 151,623 | 171,682 | ||||||||
Patents | 17 years | 4,471 | 4,464 | |||||||
Less accumulated amortization | (3,989 | ) | (3,960 | ) | ||||||
Net patents | 482 | 504 | ||||||||
Acquired in-place leases and other | 6 years | 9,333 | 9,150 | |||||||
Less accumulated amortization | (7,243 | ) | (5,513 | ) | ||||||
Net acquired in-place leases and other | 2,090 | 3,637 | ||||||||
$ | 154,195 | $ | 175,823 | |||||||
During the year ended December 31, 2013, the Company acquired $0.4 million of identifiable intangible assets as part of the acquisition of MARSS and $2.5 million of identifiable intangible assets as part of the acquisition of certain tangible assets and intellectual property from DOC Charlotte. During the year ended December 31, 2012, the Company acquired $15.1 million of identifiable intangible assets as part of the acquisition of Lorex and $20.1 million as part of the acquisition of Traficon. Intangible assets at December 31, 2012 have been retrospectively adjusted for the purchase price accounting completed during 2013 associated with the Lorex and Traficon acquisitions. See Note 18, "Business Acquisitions." | ||||||||||
The aggregate amortization expense recorded in 2013, 2012 and 2011 was $24.7 million, $24.4 million and $33.2 million, respectively. For intangible assets recorded at December 31, 2013, the estimated future aggregate amortization expense for the years ending December 31, 2014 through 2018 is approximately (in thousands): | ||||||||||
2014 | $ | 21,450 | ||||||||
2015 | 16,510 | |||||||||
2016 | 12,025 | |||||||||
2017 | 11,544 | |||||||||
2018 | 9,391 | |||||||||
Credit_Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2013 | |
Line of Credit Facility [Abstract] | ' |
Credit Agreements | ' |
Credit Agreement | |
On February 8, 2011, the Company entered into a Credit Agreement (“Credit Agreement”) with Bank of America, N.A., U.S. Bank National Association, JPMorgan Chase Bank N.A. and other Lenders. The Credit Agreement provides for a $200 million, five-year revolving line of credit. On April 5, 2013, the Credit Agreement was amended to extend the maturity of the revolving credit facility from April 8, 2016 to April 5, 2018 in addition to incorporating a $150 million term loan facility maturing April 5, 2019. The amendment also incorporated a revised schedule of fees and interest rate spreads. The Company has the right, subject to certain conditions including approval of additional commitments by qualified lenders, to increase the revolving line of credit under the Credit Agreement by an additional $150 million at any time prior to April 5, 2018. The Credit Agreement allows the Company and certain designated subsidiaries to borrow in United States dollars, euros, Swedish kronor, pound sterling, Japanese yen, Canadian dollars, Australian dollars and other agreed upon currencies. Borrowing rates under the Credit Agreement are determined at the Company’s option at the time of each borrowing and are generally based on either the prime lending rate of Bank of America, N.A. or the rate of interest paid for deposits in the relevant currency, plus a specified spread based on an established consolidated total leverage ratio pricing grid, which specified margins ranging from 0.25 percent to 2.25 percent based on the type of loan and the total leverage ratio of the Company. Including the respective spreads, the one-month LIBOR interest rate was 1.669 percent and the prime lending rate was 3.75 percent at December 31, 2013. The Credit Agreement requires the Company to pay a commitment fee on the amount of unused revolving credit at a rate, based on the Company’s total leverage ratio, which commitment fee rate ranges from 0.25 percent to 0.40 percent of unused revolving commitments. At December 31, 2013, the commitment fee rate was 0.30 percent. The Credit Agreement contains two financial covenants that require the maintenance of a total leverage ratio and an interest coverage ratio, with which the Company was in compliance at December 31, 2013. The credit facilities available under the Credit Agreement are unsecured. At December 31, 2013, the Company had no revolving loans outstanding under the Credit Agreement and had $19.5 million of letters of credit outstanding, which reduces the total available revolving credit under the Credit Agreement. |
Accrued_Product_Warranties
Accrued Product Warranties | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||||||
Accrued Product Warranties | ' | |||||||||||
Accrued Product Warranties | ||||||||||||
The Company generally provides a twelve to twenty-four month warranty on its products. A provision for the estimated future costs of warranty, based upon historical cost and product performance experience, is recorded when revenue is recognized. The following table summarizes the Company’s warranty liability and activity for 2013, 2012 and 2011 (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Accrued product warranties, beginning of year | $ | 16,152 | $ | 16,046 | $ | 18,686 | ||||||
Amounts paid for warranty services | (10,372 | ) | (12,317 | ) | (11,849 | ) | ||||||
Warranty provisions for products sold | 10,917 | 10,477 | 9,519 | |||||||||
Business acquisitions and disposals | — | 839 | (20 | ) | ||||||||
Currency translation adjustments and other | 1,035 | 1,107 | (290 | ) | ||||||||
Accrued product warranties, end of year | $ | 17,732 | $ | 16,152 | $ | 16,046 | ||||||
Current accrued product warranties, end of year | $ | 14,665 | $ | 13,169 | $ | 13,370 | ||||||
Long-term accrued product warranties, end of year | $ | 3,067 | $ | 2,983 | $ | 2,676 | ||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ||||||||
Long-term debt consists of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Unsecured notes | $ | 250,000 | $ | 250,000 | ||||
Term loan | 138,750 | — | ||||||
Unamortized discounts and issuance costs of unsecured notes | (1,222 | ) | (1,681 | ) | ||||
$ | 387,528 | $ | 248,319 | |||||
Current portion, long-term debt | $ | 15,000 | $ | — | ||||
Long-term debt | $ | 372,528 | $ | 248,319 | ||||
In August 2011, the Company issued $250 million aggregate principal amount of its 3.75 percent senior unsecured notes due September 1, 2016 (the “Notes”). The net proceeds from the issuance of the Notes were approximately $247.7 million, after deducting underwriting fees and other offering expenses, which are being amortized over a period of five years. Interest is payable on the Notes semiannually in arrears on March 1 and September 1. The proceeds from the Notes are being used for general corporate purposes, which may include working capital and capital expenditure needs, business acquisitions and repurchases of the Company’s common stock. | ||||||||
On April 5, 2013, the Company borrowed $150 million under the term loan facility incorporated in the Credit Agreement. Principal payments of $3.75 million are made quarterly and commenced on June 30, 2013 and will continue through December 31, 2018 with final maturity payment, including any interest due, on April 5, 2019. Interest is accrued at a one-month LIBOR rate, plus the scheduled spread and paid monthly. See Note 3, "Derivative Financial Instruments - Interest rates," for additional information on the effective interest rate on the term loan at December 31, 2013. |
Commitments
Commitments | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments [Abstract] | ' | |||||||
Commitments | ' | |||||||
Commitments | ||||||||
The Company leases some of its primary facilities under various operating leases that expire in 2014 through 2023. The Company also leases certain operating machinery and equipment and office equipment under operating lease agreements. Total net rent expense for the years ended December 31, 2013, 2012 and 2011 amounted to $18.3 million, $13.6 million and $10.1 million, respectively. | ||||||||
The future minimum obligations under all non-cancelable leases, net of expected sublease income, and other contractual obligations are as follows (in thousands): | ||||||||
Net | Other | |||||||
Operating | Contractual | |||||||
Leases | Obligations | |||||||
2014 | $ | 11,680 | $ | 1,020 | ||||
2015 | 7,557 | 1,008 | ||||||
2016 | 2,435 | 550 | ||||||
2017 | 1,488 | 550 | ||||||
2018 | 1,428 | 550 | ||||||
Thereafter | 1,718 | — | ||||||
Total minimum payments | $ | 26,306 | $ | 3,678 | ||||
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure - Contingencies - Additional Information [Abstract] | ' |
Contingencies | ' |
Contingencies | |
The Company and its subsidiary, Indigo Systems Corporation (now known as FLIR Commercial Systems, Inc.) (together, the “FLIR Parties”), were named in a lawsuit filed by Raytheon Company (“Raytheon”) on March 2, 2007 in the United States District Court for the Eastern District of Texas. Raytheon's complaint, as amended, asserted claims for tortious interference, patent infringement, trade secret misappropriation, unfair competition, breach of contract and fraudulent concealment. The FLIR Parties filed an answer to the complaint on September 2, 2008, in which they denied all material allegations. On August 31, 2009, the court entered an order granting the FLIR Parties' motion for summary judgment on Raytheon's trade secret misappropriation claim based on the FLIR Parties' statute of limitations defense. Raytheon abandoned all of its other claims except its claims relating to four patents (the “Patent Claims”). On August 11, 2010, the FLIR Parties and Raytheon entered into an agreement in principle to resolve the remaining Patent Claims, which resulted in a payment of $3 million by the FLIR Parties to Raytheon and entitles the FLIR Parties to certain license rights in the patents that were the subject of the Patent Claims. The parties appealed certain rulings of the District Court to the United States Court of Appeals for the Federal Circuit which on August 1, 2012 reversed the judgment of the District Court and remanded the case for further proceedings consistent with the appellate court's opinion. The Company intends to vigorously defend itself in this matter and is unable to estimate the amount or range of potential loss, if any, which might result if the outcome in this matter is unfavorable. | |
On May 20, 2011, the Company made a cash settlement payment of $39.0 million to resolve all pending claims in an action filed against the Company. In the settlement agreement, the Company also received a non-exclusive license to certain infrared technology. | |
The Company is also subject to other legal proceedings, claims and litigation arising in the ordinary course of business. The Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company believes it has recorded adequate provisions for any probable and estimable losses. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve such matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events and basis differences that have been recognized in the Company’s financial statements and tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amount and the tax basis of assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. | ||||||||||||
Pre-tax earnings by significant geographical locations from continuing operations are as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 118,269 | $ | 180,022 | $ | 192,219 | ||||||
Foreign | 110,717 | 111,890 | 118,860 | |||||||||
$ | 228,986 | $ | 291,912 | $ | 311,079 | |||||||
The provisions for income taxes from continuing operations are as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current tax expense (benefit): | ||||||||||||
Federal | $ | 38,249 | $ | 53,187 | $ | 62,858 | ||||||
State | 4,413 | (3,075 | ) | 9,262 | ||||||||
Foreign | 13,483 | 21,138 | 24,452 | |||||||||
56,145 | 71,250 | 96,572 | ||||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | (252 | ) | 3,194 | (5,185 | ) | |||||||
State | (335 | ) | 1,887 | (993 | ) | |||||||
Foreign | (3,587 | ) | (9,775 | ) | (1,967 | ) | ||||||
(4,174 | ) | (4,694 | ) | (8,145 | ) | |||||||
Total provision | $ | 51,971 | $ | 66,556 | $ | 88,427 | ||||||
Note 14. | Income Taxes—(Continued) | |||||||||||
Deferred tax assets (liabilities) are composed of the following components (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(as adjusted) | ||||||||||||
Allowance for doubtful accounts | $ | 1,295 | $ | 1,123 | ||||||||
Accrued product warranties | 3,069 | 3,099 | ||||||||||
Inventory basis differences | 11,421 | 9,225 | ||||||||||
Accrued liabilities | 8,987 | 7,206 | ||||||||||
Deferred revenue | 1,775 | 2,205 | ||||||||||
Current net operating loss | 7,449 | 8,085 | ||||||||||
Other | (1,024 | ) | (1,025 | ) | ||||||||
Foreign accrued liabilities | 4,504 | — | ||||||||||
Foreign other | 913 | 1,042 | ||||||||||
Net current deferred tax assets | $ | 38,389 | $ | 30,960 | ||||||||
Net operating loss carry-forwards | $ | 6,143 | $ | 11,588 | ||||||||
Credit carry-forwards | 6,391 | 7,034 | ||||||||||
Domestic depreciation | (5,455 | ) | (7,222 | ) | ||||||||
Supplemental Executive Retirement Plan | 3,198 | 7,491 | ||||||||||
Stock-based compensation | 17,239 | 13,745 | ||||||||||
Intangibles | (14,450 | ) | (15,999 | ) | ||||||||
Accrued Liabilities | 7,624 | 6,033 | ||||||||||
Domestic other | 1,416 | 4,018 | ||||||||||
Foreign credit carry-forwards | — | 3,590 | ||||||||||
Foreign intangibles | — | (1,259 | ) | |||||||||
Foreign net operating loss carry-forwards | 760 | 8,119 | ||||||||||
Foreign other | 16 | (78 | ) | |||||||||
Valuation allowance | (4,999 | ) | (4,837 | ) | ||||||||
Net long-term deferred tax assets | $ | 17,883 | $ | 32,223 | ||||||||
Foreign credit carry-forwards | $ | 2,922 | $ | — | ||||||||
Foreign depreciation | 2,418 | 3,196 | ||||||||||
Foreign intangibles | (18,528 | ) | (23,597 | ) | ||||||||
Foreign net operating loss carry-forwards | 8,930 | 5,336 | ||||||||||
Foreign other | 461 | 504 | ||||||||||
Valuation allowance | (8,457 | ) | (4,510 | ) | ||||||||
Net long-term deferred tax liabilities | $ | (12,254 | ) | $ | (19,071 | ) | ||||||
The provision for income taxes differs from the amount of tax determined by applying the applicable United States statutory federal income tax rate to pretax income as a result of the following differences: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory federal tax rate | 35 | % | 35 | % | 35 | % | ||||||
Increase (decrease) in rates resulting from: | ||||||||||||
Foreign rate differential | (11.6 | ) | (10.4 | ) | (3.8 | ) | ||||||
Foreign, federal and state income tax credits | (2.2 | ) | (2.7 | ) | (2.9 | ) | ||||||
State taxes | 1 | 0.3 | 2.2 | |||||||||
Non-deductible expenses | 0.5 | 0.7 | (1.2 | ) | ||||||||
Other | — | (0.1 | ) | (0.9 | ) | |||||||
Effective tax rate | 22.7 | % | 22.8 | % | 28.4 | % | ||||||
Note 14. | Income Taxes—(Continued) | |||||||||||
The Company's foreign tax rate differential is primarily the result of a multi-year agreement, effective August 1, 2012, with a European jurisdiction as well as the impact of lower foreign statutory rates. | ||||||||||||
At December 31, 2013, the Company had United States tax net operating loss carry-forwards totaling approximately $39.8 million which expire between 2018 and 2031. In addition, the Company has various state net operating loss carry-forwards totaling approximately $75.1 million which expire between 2018 and 2033. The federal and state net operating losses were primarily generated by ICx Technologies, prior to the acquisition by the Company in 2010. Finally, the Company has various foreign net operating loss carry-forwards totaling approximately $101.5 million which expire between 2018 and 2033. | ||||||||||||
The tax benefits described above are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of the assets and liabilities. To the extent that management assesses the realization of such assets to not be more likely than not, a valuation allowance is required to be recorded. We believe that the net deferred tax assets of $44.0 million reflected on the December 31, 2013 Consolidated Balance Sheet are mostly realizable based on future forecasts of taxable income over a relatively short time horizon, but we have determined that a valuation allowance against our net deferred tax assets of $13.5 million is required, primarily related to certain acquired net operating losses. A valuation allowance is required when it is more-likely-than-not that all or a portion of deferred tax assets may not be realized. A review of all available positive and negative evidence is considered, including past and future performance, the market environment in which the Company operates, utilization of tax attributes in the past, length of carryback and carryforward periods, and evaluation of potential tax planning strategies when evaluating the realizability of deferred tax assets. The Company may be required to record additional valuation allowance against the deferred tax assets in future periods if its future forecasts of taxable income are not achieved. | ||||||||||||
United States income taxes have not been provided on accumulated undistributed earnings of certain subsidiaries outside the United States, as the Company intends to reinvest the earnings in operations outside the United States indefinitely. As of December 31, 2013, the cumulative amount of earnings upon which United States income taxes have not been provided is approximately $799 million. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. | ||||||||||||
The following table summarizes the activity related to unrecognized tax benefits, including amounts accrued for potential interest and penalties (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance, beginning of year | $ | 35,143 | $ | 29,200 | $ | 30,949 | ||||||
Increases related to current year tax positions | 979 | 7,220 | 1,225 | |||||||||
Increases related to prior year tax positions | 714 | 1,559 | 4,192 | |||||||||
Decreases related to prior year tax positions | (2,736 | ) | (343 | ) | (4,608 | ) | ||||||
Lapse of statute of limitations | (2,012 | ) | (1,887 | ) | (2,558 | ) | ||||||
Settlements | (2,555 | ) | (606 | ) | — | |||||||
Balance, end of year | $ | 29,533 | $ | 35,143 | $ | 29,200 | ||||||
The unrecognized tax benefits at December 31, 2013 relate to the United States, United Kingdom and various foreign jurisdictions. As of December 31, 2013, the Company had approximately $29.5 million of unrecognized tax benefits, $29.5 million of which would affect the Company’s effective tax rate if recognized. Over the next twelve months, the Company expects to have minimal changes to its unrecognized tax benefits. | ||||||||||||
The Company classifies interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2013, the Company had $2.6 million of accrued interest and penalties ($2.5 million net of federal and state benefits) related to uncertain tax positions that are recorded as current and non-current accrued income taxes on the Consolidated Balance Sheet. | ||||||||||||
Note 14. | Income Taxes—(Continued) | |||||||||||
The Company files United States, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company currently has the following tax years open to examination by major taxing jurisdictions: | ||||||||||||
Tax Years: | ||||||||||||
United States Federal | 2012 | |||||||||||
State of California | 2008 – 2012 | |||||||||||
State of Massachusetts | 2011 – 2012 | |||||||||||
State of Oregon | 2012 | |||||||||||
Sweden | 2008 – 2012 | |||||||||||
United Kingdom | 2007 – 2012 | |||||||||||
Belgium | 2011 - 2012 |
Stockbased_Compensation
Stock-based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Stock-based Compensation | ' | ||||||||||||
Stock-based Compensation | |||||||||||||
Stock Incentive Plans | |||||||||||||
The Company has a stock-based compensation program that provides equity incentives for employees, consultants and directors. This program includes incentive and non-statutory stock options and nonvested stock awards (referred to as restricted stock unit awards) granted under three plans: the FLIR Systems, Inc. 1993 Stock Option Plan for Non-Employee Directors (the “1993 Plan”), the FLIR Systems, Inc. 2002 Stock Incentive Plan (the “2002 Plan”) and the FLIR Systems, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The Company has discontinued issuing awards out of the 1993 Plan and the 2002 Plan but previously granted awards under the 1993 Plan and the 2002 Plan remain outstanding. | |||||||||||||
The Company has granted time-based options, performance-based options, time-based restricted stock unit awards, performance-based restricted stock unit awards and market-based restricted stock unit awards. The vesting of performance-based options and restricted stock unit awards are contingent upon meeting certain diluted earnings per share growth targets primarily in three independent tranches over a three year period. The vesting of each tranche is not dependent on the other tranches. Options generally expire ten years from the grant date. Time-based options and restricted stock unit awards generally vest over a three year period. Market-based restricted stock unit awards may be earned based upon the Company's total shareholder return compared to the total shareholder return of the S&P 500 Index over a three year period. | |||||||||||||
Shares issued as a result of stock option exercises and the distribution of vested restricted stock units are new shares. | |||||||||||||
The Company also has stock options that were issued as replacement options in connection with the acquisition of Indigo Systems Corporation in 2004 and stock options and restricted stock unit awards issued as replacement awards in connection with the acquisition of ICx in 2010. | |||||||||||||
Information with respect to stock option activity for 2013 is as follows: | |||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | (in thousands) | |||||||||||
Term | |||||||||||||
Outstanding at December 31, 2012 | 6,642 | $ | 21.64 | 4.7 | |||||||||
Granted | 1,029 | 24.58 | |||||||||||
Exercised | (325 | ) | 14.22 | ||||||||||
Forfeited | (8 | ) | 21.4 | ||||||||||
Outstanding at December 31, 2013 | 7,338 | $ | 22.38 | 4.6 | $ | 61,036 | |||||||
Exercisable at December 31, 2013 | 5,973 | $ | 21.82 | 3.6 | $ | 53,284 | |||||||
Vested and expected to vest at December 31, 2013 | 7,270 | $ | 22.36 | 4.6 | $ | 60,649 | |||||||
Note 15. | Stock-based Compensation - (Continued) | ||||||||||||
Information with respect to restricted stock unit activity for 2013 is as follows: | |||||||||||||
Shares | Weighted | ||||||||||||
(in thousands) | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Outstanding at December 31, 2012 | 2,372 | $ | 24.59 | ||||||||||
Granted | 1,180 | 23.93 | |||||||||||
Vested and distributed | (566 | ) | 26.71 | ||||||||||
Forfeited | (198 | ) | 24.03 | ||||||||||
Outstanding at December 31, 2013 | 2,788 | $ | 21.16 | ||||||||||
As of December 31, 2013, there are 12,080,000 shares of common stock reserved for future issuance under the 2011 Plan. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
The Company has an Employee Stock Purchase Plan (the “ESPP”) which allows employees to purchase shares of the Company’s common stock at 85 percent of the fair market value at the lower of either the date of enrollment or the purchase date. The Company has reserved 5,000,000 shares of common stock for issuance under the ESPP. | |||||||||||||
There were 223,000 shares issued during 2013 and 3,630,000 shares remain available under the ESPP at December 31, 2013 for future issuance. Shares issued for ESPP purchases are new shares. |
Other_Employee_Benefit_Plans
Other Employee Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Other Employee Benefit Plan | ' | |||||||||||
Other Employee Benefit Plans | ||||||||||||
Employee 401(k) Plans | ||||||||||||
The Company has a 401(k) Savings and Retirement Plan (the “Plan”) to provide for voluntary salary deferral contributions on a pre-tax basis for employees within the United States in accordance with Section 401(k) of the Internal Revenue Code of 1986, as amended. The Plan allows for contributions by the Company. The Company made and expensed matching contributions of $4.9 million, $5.8 million and $7.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Pension Plans | ||||||||||||
The Company previously offered most of the employees outside the United States participation in a defined benefit pension plan that has been curtailed. In addition, the Company provides a Supplemental Executive Retirement Plan (the “SERP”) for certain officers of the Company based in the United States. | ||||||||||||
The Company has recorded the minimum pension liability to accumulated other comprehensive earnings and the estimated benefit to be paid in 2014 has been reported in other current liabilities. The measurement date used for the pension plans is December 31. | ||||||||||||
Amounts recognized in other comprehensive earnings during the years ended December 31, 2013, 2012 and 2011, net of tax, are as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net earnings (loss) | $ | 2,665 | $ | 448 | $ | (1,410 | ) | |||||
Prior service cost | 296 | 297 | 297 | |||||||||
$ | 2,961 | $ | 745 | $ | (1,113 | ) | ||||||
Note 16. | Other Employee Benefit Plans - (Continued) | |||||||||||
Components of accumulated other comprehensive earnings related to the Company’s pension plans as of December 31, 2013 and 2012 are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Net loss | $ | (1,836 | ) | $ | (4,501 | ) | ||||||
Prior service cost | (330 | ) | (626 | ) | ||||||||
$ | (2,166 | ) | $ | (5,127 | ) | |||||||
A summary of the components of the net periodic pension expense for the benefit obligation and fund assets of the plans is as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation at January 1 | $ | 24,932 | $ | 23,979 | ||||||||
Service costs | 254 | 267 | ||||||||||
Interest costs | 883 | 936 | ||||||||||
Actuarial (gain) loss | (296 | ) | (158 | ) | ||||||||
Benefits paid | (13,292 | ) | (417 | ) | ||||||||
Foreign currency exchange changes | 70 | 325 | ||||||||||
Benefit obligation at December 31 | $ | 12,551 | $ | 24,932 | ||||||||
Fair value of plan assets at December 31 | $ | — | $ | — | ||||||||
Unfunded status at December 31 | $ | 12,551 | $ | 24,932 | ||||||||
Amounts recognized in the Consolidated Balance Sheets: | ||||||||||||
Current liabilities | $ | 383 | $ | 409 | ||||||||
Non-current liabilities | $ | 12,168 | $ | 24,523 | ||||||||
The weighted average assumptions used are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Net periodic benefit cost: | ||||||||||||
SERP: | ||||||||||||
Discount rate | 3.75 | % | 4 | % | ||||||||
Rate of increase in compensation levels | 3 | % | 5 | % | ||||||||
Defined benefit pension plan for employees outside the United States: | ||||||||||||
Discount rate | 3.5 | % | 2.75 | % | ||||||||
Funded status and projected benefit obligation: | ||||||||||||
SERP: | ||||||||||||
Discount rate | 4.75 | % | 3.75 | % | ||||||||
Rate of increase in compensation levels | 3 | % | 3 | % | ||||||||
Defined benefit pension plan for employees outside the United States: | ||||||||||||
Discount rate | 3.5 | % | 2.75 | % | ||||||||
The discount rates used are based upon publicly listed indices for instruments with average maturities estimated to be consistent with the respective obligations. | ||||||||||||
A pension liability of $3.4 million and $8.1 million as of December 31, 2013 and 2012, respectively, have been recognized for the pension plans representing the excess of the unfunded accumulated benefit obligation over the accrued pension costs. | ||||||||||||
Note 16. | Other Employee Benefit Plans - (Continued) | |||||||||||
Benefits expected to be paid under the plans are approximately (in thousands): | ||||||||||||
2014 | $ | 382 | ||||||||||
2015 | 397 | |||||||||||
2016 | 393 | |||||||||||
2017 | 391 | |||||||||||
2018 | 376 | |||||||||||
Five years thereafter | 13,881 | |||||||||||
$ | 15,820 | |||||||||||
Components of net periodic benefit cost are as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Service costs | $ | 254 | $ | 267 | $ | 205 | ||||||
Interest costs | 883 | 936 | 1,047 | |||||||||
Net amortization and deferral | 1,111 | 1,205 | 903 | |||||||||
Settlement loss | 3,305 | — | — | |||||||||
Net periodic pension costs | $ | 5,553 | $ | 2,408 | $ | 2,155 | ||||||
Components of net periodic benefit cost expected to be recognized from amounts in accumulated other comprehensive earnings during the year ending December 31, 2014 are as follows (in thousands): | ||||||||||||
Year Ending December 31, 2014 | ||||||||||||
Net loss | $ | 107 | ||||||||||
Net prior service cost | 160 | |||||||||||
$ | 267 | |||||||||||
Operating_Segments_and_Related
Operating Segments and Related Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Operating Segments and Related Information | ' | |||||||||||
Operating Segments and Related Information | ||||||||||||
Operating Segments | ||||||||||||
The Company has two business divisions: Commercial Systems and Government Systems. | ||||||||||||
Commercial Systems Division | ||||||||||||
The Commercial Systems division is focused on the design, manufacture, and marketing of instrument, sensor, and electronics solutions that facilitate improved situational awareness and environmental analytics for commercial customers. The division is comprised of two operating segments: Thermal Vision and Measurement and Raymarine. The Thermal Vision and Measurement segment provides advanced thermal imaging solutions where the customer need is to see at night or in adverse conditions or to image a scene gathering valuable temperature information. The Raymarine segment provides electronics for the maritime market and is a leading global provider of fully integrated “stem to stern” networked electronic systems for boats of all sizes. | ||||||||||||
Government Systems Division | ||||||||||||
The Government Systems division designs, manufactures, and markets advanced imaging and detection systems for government markets where high performance is required. The division is comprised of three operating segments: Surveillance, Detection, and Integrated Systems. The Surveillance segment provides enhanced imaging and recognition solutions to a wide variety of military, law enforcement, public safety, and other government customers around the world for the protection of borders, troops, and public welfare. The Detection segment produces sensor instruments that detect and identify chemical, biological, radiological, nuclear, and explosives (“CBRNE”) threats for military force protection, homeland security, and commercial applications. The Integrated Systems segment develops platform solutions for combating sophisticated security threats and incorporates multiple sensor systems in order to deliver actionable intelligence for wide area surveillance, intrusion detection, and facility security. | ||||||||||||
Note 17. | Operating Segments and Related Information—(Continued) | |||||||||||
The accounting policies of each of the segments are the same. The Company’s President and Chief Executive Officer evaluates the performance of each segment based upon its revenue and earnings from operations. On a consolidated basis, these amounts represent revenue and earnings from operations as represented in the Consolidated Statements of Income. Other consists of corporate expenses and certain other operating expenses not allocated to the operating segments for management reporting purposes. Intersegment revenues are recorded at an estimated arm's length basis and are eliminated in consolidation. | ||||||||||||
Accounts receivable and inventories for operating segments are regularly reviewed by management and are reported below as segment assets. All remaining assets, liabilities, capital expenditures and depreciation are managed on a Company-wide basis. | ||||||||||||
Operating segment information is as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue—External Customers: | ||||||||||||
Thermal Vision and Measurement | $ | 727,939 | $ | 628,019 | $ | 660,256 | ||||||
Raymarine | 163,200 | 158,183 | 171,489 | |||||||||
Surveillance | 456,490 | 486,355 | 577,552 | |||||||||
Detection | 53,191 | 63,312 | 79,918 | |||||||||
Integrated Systems | 95,552 | 69,489 | 54,847 | |||||||||
$ | 1,496,372 | $ | 1,405,358 | $ | 1,544,062 | |||||||
Revenue—Intersegments: | ||||||||||||
Thermal Vision and Measurement | $ | 16,449 | $ | 15,204 | $ | 18,553 | ||||||
Raymarine | 5 | 7 | 7 | |||||||||
Surveillance | 25,420 | 23,013 | 32,266 | |||||||||
Detection | 7,763 | 4,233 | 3,394 | |||||||||
Integrated Systems | 1,217 | 1,537 | 6,639 | |||||||||
Eliminations | (50,854 | ) | (43,994 | ) | (60,859 | ) | ||||||
$ | — | $ | — | $ | — | |||||||
Earnings (loss) from operations: | ||||||||||||
Thermal Vision and Measurement | $ | 161,307 | $ | 171,280 | $ | 194,674 | ||||||
Raymarine | 14,184 | 11,173 | 11,855 | |||||||||
Surveillance | 126,034 | 160,219 | 208,510 | |||||||||
Detection | (184 | ) | 1,089 | (5,568 | ) | |||||||
Integrated Systems | (1,907 | ) | 5,168 | 1,659 | ||||||||
Other | (58,691 | ) | (45,599 | ) | (97,935 | ) | ||||||
$ | 240,743 | $ | 303,330 | $ | 313,195 | |||||||
Note 17. | Operating Segments and Related Information—(Continued) | |||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(as adjusted) | ||||||||||||
Segment assets (accounts receivable, net and inventories): | ||||||||||||
Thermal Vision and Measurement | $ | 261,204 | $ | 265,132 | ||||||||
Raymarine | 63,628 | 73,564 | ||||||||||
Surveillance | 262,759 | 317,944 | ||||||||||
Detection | 21,754 | 31,861 | ||||||||||
Integrated Systems | 21,947 | 25,742 | ||||||||||
$ | 631,292 | $ | 714,243 | |||||||||
Revenue and Long-Lived Assets by Geographic Area | ||||||||||||
Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 755,640 | $ | 717,841 | $ | 803,423 | ||||||
Europe | 370,800 | 337,163 | 382,388 | |||||||||
Other foreign | 369,932 | 350,354 | 358,251 | |||||||||
$ | 1,496,372 | $ | 1,405,358 | $ | 1,544,062 | |||||||
Long-lived assets are comprised of net property and equipment, net identifiable intangible assets, goodwill and other long-term assets. Long-lived assets by significant geographic locations are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(as adjusted) | ||||||||||||
United States | $ | 600,261 | $ | 584,623 | ||||||||
Europe | 359,444 | 353,800 | ||||||||||
Other foreign | 56,040 | 54,763 | ||||||||||
$ | 1,015,745 | $ | 993,186 | |||||||||
Major Customers | ||||||||||||
Revenue derived from major customers is as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States government | $ | 354,902 | $ | 373,540 | $ | 444,882 | ||||||
Business_Acquisitions
Business Acquisitions | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Business Acquisitions [Abstract] | ' | |||||
Business Acquisition | ' | |||||
Business Acquisitions | ||||||
In December 2012, the Company acquired Lorex, a provider of consumer oriented and professional grade video surveillance systems, for approximately $61.2 million in cash. At December 31, 2012, the Company initially reported the net tangible assets of $19.1 million in the respective balance sheet accounts and the excess purchase price of $42.1 million in other assets. | ||||||
The Company has since performed a purchase price allocation which resulted in an allocation of $15.1 million of identifiable intangible assets and $31.1 million of goodwill in conjunction with the Lorex acquisition, which has been recorded in the Company’s Thermal Vision and Measurement segment. This goodwill consists largely of the ability of Lorex to provide the Company domain knowledge and distribution channels in adjacent security markets. These purchase price adjustments have been applied retrospectively to the December 31, 2012 balance sheet. | ||||||
The allocation of the purchase price is as follows (in thousands): | ||||||
Cash acquired | $ | 1,170 | ||||
Accounts receivable, net | 10,183 | |||||
Inventories | 13,967 | |||||
Property and equipment | 1,049 | |||||
Other assets | 3,004 | |||||
Liabilities | (10,252 | ) | ||||
Net tangible assets | 19,121 | |||||
Net deferred taxes | (4,171 | ) | ||||
Identifiable intangible assets | 15,100 | |||||
Goodwill | 31,121 | |||||
Purchase price | $ | 61,171 | ||||
None of the goodwill recognized is deductible for income tax purposes. | ||||||
The identifiable intangible assets and the estimated useful life of each are as follows (in thousands): | ||||||
Estimated | Amount | |||||
Useful Life | ||||||
Lorex Trade Name | indefinite | $ | 6,800 | |||
Customer Relationships | 7 years | 8,300 | ||||
$ | 15,100 | |||||
Also in December 2012, the Company acquired Traficon, a provider of video image processing software and hardware for traffic analysis applications, for approximately $46.3 million in cash. At December 31, 2012, the Company initially reported the net tangible assets of $5.1 million in the respective balance sheet accounts and the excess purchase price of $41.2 million in other assets. | ||||||
In April 2013, the Company made an additional payment of $2.1 million in cash as an adjustment to the purchase price for the purchase of Traficon. The Company has performed a purchase price allocation which resulted in an allocation of $20.1 million of identifiable intangible assets and $30.1 million of goodwill in conjunction with the Traficon acquisition, which has been recorded in the Company’s Thermal Vision and Measurement segment. This goodwill consists largely of the ability of Traficon to expand the Company's presence in the global traffic monitoring market through the provision of domain expertise and distribution channels. These purchase price adjustments have been applied retrospectively to the December 31, 2012 balance sheet. | ||||||
Note 18. | Business Acquisitions - (Continued) | |||||
The allocation of the purchase price is as follows (in thousands): | ||||||
Cash acquired | $ | 181 | ||||
Accounts receivable, net | 6,435 | |||||
Inventories | 2,853 | |||||
Property and equipment | 179 | |||||
Other assets | 657 | |||||
Liabilities | (5,248 | ) | ||||
Net tangible assets | 5,057 | |||||
Net deferred taxes | (6,903 | ) | ||||
Identifiable intangible assets | 20,102 | |||||
Goodwill | 30,107 | |||||
Purchase price | $ | 48,363 | ||||
None of the goodwill recognized is deductible for income tax purposes. | ||||||
The identifiable intangible assets and the estimated useful life of each are as follows (in thousands): | ||||||
Estimated | Amount | |||||
Useful Life | ||||||
Patented/Proprietary Technology | 10 years | $ | 5,951 | |||
Backlog | 1.5 years | 1,852 | ||||
Customer Relationships | 10 years | 12,299 | ||||
$ | 20,102 | |||||
In April 2013, the Company acquired MARSS, a developer of software and sensor control systems for use in maritime security applications, including above and below water port security and ship-based man overboard detection, for approximately $3.2 million in cash. The Company has recorded $0.4 million of identifiable intangible assets and $2.5 million of goodwill in the Company's Integrated Systems segment. | ||||||
In August 2013, the Company acquired certain tangible assets and intellectual property related to the design and manufacturing of wafer-level optics of DOC Charlotte for approximately $14.9 million in cash. The Company has performed a purchase price allocation which resulted in an allocation of $2.5 million of identifiable intangible assets and $2.4 million of goodwill which has been recorded in the Company’s Thermal Vision and Measurement segment. | ||||||
Note 18. | Business Acquisitions - (Continued) | |||||
The allocation of the purchase price for DOC Charlotte is as follows (in thousands): | ||||||
Inventories | $ | 741 | ||||
Property and equipment | 9,246 | |||||
Net tangible assets | 9,987 | |||||
Identifiable intangible assets | 2,520 | |||||
Goodwill | 2,401 | |||||
Purchase price | $ | 14,908 | ||||
None of the goodwill recognized is deductible for income tax purposes. | ||||||
The identifiable intangible assets and the estimated useful life of each are as follows (in thousands): | ||||||
Estimated | Amount | |||||
Useful Life | ||||||
Patented/Proprietary Technology | 12 years | $ | 2,000 | |||
Backlog | 2 years | 150 | ||||
Customer Relationships | 2.5 years | 370 | ||||
$ | 2,520 | |||||
The operating results of MARSS and DOC Charlotte are included in the Company’s results of operations since their respective dates of acquisition. The operating results of each of Lorex and Traficon are not included in the Company's 2012 results of operations, as such results were not significant. | ||||||
These acquisitions are not significant, either individually or in the aggregate, as defined in Regulation S-X of the Securities and Exchange Commission, compared to the Company’s overall financial position. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Discontinued Operations | ' |
Discontinued Operations | |
In 2010, in connection with the acquisition of ICx Technologies, Inc. ("ICx"), the Company began to pursue the sale of certain business units of ICx and the results of operations for such business units were reported as discontinued operations for that year. During the second quarter of 2012, the Company sold the remaining two business units reported as discontinued operations. The operating losses of those operations, including insignificant associated losses recognized subsequent to their disposal, and the net losses on the sales of the units, net of tax are reflected in the Consolidated Statements of Income for the year ended December 31, 2012. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Shareholders' Equity | ' |
Shareholders’ Equity | |
In February 2011, the Company’s Board of Directors authorized the repurchase of up to 20.0 million shares of the Company’s outstanding shares of common stock in the open market or through privately negotiated transactions. This authorization expired in February 2013. In February 2013, the Company’s Board of Directors authorized the repurchase of up to 25.0 million shares of the Company’s outstanding shares of common stock in the open market or through privately negotiated transactions. This authorization will expire on February 6, 2015. | |
Under these authorizations, the Company has repurchased 5,988,000 shares for a total of $162.1 million, 10,466,000 shares for a total of $214.2 million and 6,135,000 shares for a total of $160.7 million during the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, there were 19,012,000 shares remaining under the February 2013 authorization that may be repurchased. | |
On February 9, 2011, the Company’s Board of Directors adopted a dividend policy under which the Company intends to pay quarterly cash dividends on its common stock. During the year ended December 31, 2013, the Company paid dividends quarterly at the rate of $0.09 per share for a total of $51.4 million. During the year ended December 31, 2012, the Company paid dividends quarterly at the rate of $0.07 per share for a total of $42.5 million. During the year ended December 31, 2011, the Company paid dividends quarterly at the rate of $0.06 per share for a total of $38.0 million. |
Restructuring_Costs_Restructur
Restructuring Costs Restructuring Costs (Notes) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | |||||||||||||||
Restructuring Costs | ||||||||||||||||
During the years ended December 31, 2013 and 2012, the Company recorded net pre-tax restructuring expenses totaling $27.5 million and $2.0 million, respectively. In 2013, the Company initiated a realignment plan that includes closing six not-to-scale sites in the United States and Europe and a transfer of those operations to the Company's larger facilities. The Company is also consolidating its optics and laser manufacturing businesses to better realize the benefits of vertical integration in these areas. In 2012, the Company recorded restructuring expenses associated with the relocation of one of the Company's manufacturing facilities in Europe to an existing facility in the United States. | ||||||||||||||||
The Company recorded the restructuring expenses in the segments as follows (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Thermal Vision and Measurement | $ | 17,370 | $ | — | ||||||||||||
Raymarine | 361 | — | ||||||||||||||
Surveillance | 3,598 | — | ||||||||||||||
Detection | 4,222 | 2,000 | ||||||||||||||
Integrated Systems | 1,761 | — | ||||||||||||||
Other | 209 | — | ||||||||||||||
$ | 27,521 | $ | 2,000 | |||||||||||||
Restructuring expenses were recorded in the Consolidated Statements of Income as follows (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Cost of goods sold | $ | 1,689 | $ | — | ||||||||||||
Restructuring expenses | 25,832 | 2,000 | ||||||||||||||
$ | 27,521 | $ | 2,000 | |||||||||||||
The following table summarizes the activity by cost type (in thousands): | ||||||||||||||||
Severance | Inventory | Facilities Exit, Lease Terminations & Other | Total | |||||||||||||
write downs | ||||||||||||||||
2013 restructuring expenses | $ | 19,866 | $ | 1,689 | $ | 5,966 | $ | 27,521 | ||||||||
Utilization | (1,675 | ) | (1,689 | ) | (2,296 | ) | (5,660 | ) | ||||||||
Balance, December 31, 2013 | $ | 18,191 | $ | — | $ | 3,670 | $ | 21,861 | ||||||||
At December 31, 2012, the Company had restructuring accruals of $0.6 million related to 2012 activities that were utilized during the year ended December 31, 2013. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On February 7, 2014, the Company’s Board of Directors declared a quarterly dividend of $0.10 per share on its common stock, payable on March 7, 2014, to shareholders of record as of close of business on February 19, 2014. The total cash payment of this dividend will be approximately $14.1 million. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
FLIR SYSTEMS, INC. | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||
2013 | ||||||||||||||||
Revenue | $ | 348,583 | $ | 389,329 | $ | 358,141 | $ | 400,319 | ||||||||
Gross profit | 183,987 | 190,041 | 172,890 | 190,092 | ||||||||||||
Net earnings | 51,636 | 50,158 | 46,486 | 28,735 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share | $ | 0.36 | $ | 0.35 | $ | 0.33 | $ | 0.2 | ||||||||
Diluted earnings per share | $ | 0.35 | $ | 0.35 | $ | 0.32 | $ | 0.2 | ||||||||
2012 (as adjusted) | ||||||||||||||||
Revenue | $ | 348,452 | $ | 338,291 | $ | 332,230 | $ | 386,385 | ||||||||
Gross profit(1) | 182,727 | 173,417 | 173,665 | 205,375 | ||||||||||||
Earnings from continuing operations | 48,825 | 42,405 | 55,949 | 78,177 | ||||||||||||
Loss from discontinued operations | (686 | ) | (1,312 | ) | (44 | ) | (916 | ) | ||||||||
Net earnings | 48,139 | 41,093 | 55,905 | 77,261 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.32 | $ | 0.28 | $ | 0.37 | $ | 0.53 | ||||||||
Discontinued operations | (0.00 | ) | (0.01 | ) | (0.00 | ) | (0.01 | ) | ||||||||
Basic earnings per share | $ | 0.31 | $ | 0.27 | $ | 0.37 | $ | 0.52 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.31 | $ | 0.27 | $ | 0.37 | $ | 0.52 | ||||||||
Discontinued operations | (0.00 | ) | (0.01 | ) | (0.00 | ) | (0.01 | ) | ||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.27 | $ | 0.37 | $ | 0.52 | ||||||||
_______________ | ||||||||||||||||
(1) Certain expenses have been reclassified to conform to the presentation for the quarterly data of 2013. | ||||||||||||||||
The sum of the quarterly earnings per share does not always equal the annual earnings per share as a result of the computation of quarterly versus annual average shares outstanding. |
Nature_of_Business_and_Signifi1
Nature of Business and Significant Accounting Policies Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Nature of Business and Significant Accounting Policies [Abstract] | ' | |||||||||||
Principals of consolidation | ' | |||||||||||
Principles of consolidation | ||||||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions were eliminated. | ||||||||||||
Reclassification | ' | |||||||||||
Reclassification | ||||||||||||
The Company made certain reclassifications to the prior years' financial statements to conform them to the presentation as of and for the year ended December 31, 2013. The reclassifications included certain severance expenses of $3.8 million and $0.7 million recognized during the years ended December 31, 2012 and 2011, respectively, that were originally reported in cost of goods sold and are now reported as operating expenses, and certain demonstration assets of $2.3 million that were originally reported as inventory at December 31, 2012 that are now reported in other current assets. In addition, the December 31, 2012 balance sheet has been adjusted for the purchase price accounting that was completed during 2013 associated with the acquisitions of Lorex Technology Inc. ("Lorex") and Traficon International NV ("Traficon"). See Note 7, "Goodwill," Note 8, "Intangible Assets," Note 14, "Income Taxes," and Note 18, "Business Acquisitions" for additional information. These reclassifications had no effect on consolidated financial position, shareholders' equity or net cash flows for any of the periods presented. | ||||||||||||
Foreign currency translation | ' | |||||||||||
Foreign currency translation | ||||||||||||
The assets and liabilities of the Company’s subsidiaries outside the United States are translated into United States dollars at current exchange rates in effect at the balance sheet date. Revenues and expenses are translated at monthly average exchange rates. Resulting translation adjustments are reflected in accumulated other comprehensive earnings within shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in currencies other than the functional currency are reflected as other income, net, in the Consolidated Statements of Income as incurred. | ||||||||||||
The cumulative translation adjustment included in accumulated other comprehensive earnings is a gain of $26.5 million and a gain of $14.7 million at December 31, 2013 and 2012, respectively. Transaction gains and losses included in other income, net, are a net loss of $0.3 million, a net loss of $3.0 million, and a net gain of $1.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Revenue recognition | ' | |||||||||||
Revenue recognition | ||||||||||||
Revenue is primarily recognized when persuasive evidence of an arrangement exists, upon delivery of the product to the customer at a fixed or determinable price with a reasonable assurance of collection, passage of title and risk of loss to the customer as indicated by the shipping terms and fulfillment of all significant obligations. | ||||||||||||
The Company designs, markets and sells products primarily as commercial, off-the-shelf products. Certain customers request different system configurations, based on standard options or accessories that the Company offers. In general, revenue arrangements do not involve acceptance provisions based upon customer specified acceptance criteria. In those limited circumstances when customer specified acceptance criteria exist, revenue is deferred until customer acceptance if the Company cannot demonstrate the system meets those specifications prior to shipment. For any contracts with multiple elements (i.e., training, installation, additional parts, etc.) the Company allocates revenue among the deliverables primarily based upon objective and reliable evidence of fair value of each element in the arrangement. If objective and reliable evidence of fair value of any element is not available, we use an estimated selling price for purposes of allocating the total arrangement consideration among the elements. Credit is not extended to customers and revenue is not recognized until the Company has determined that the risk of uncollectability is minimal. | ||||||||||||
The Company’s products are sold with warranty provisions that require it to remedy deficiencies in quality or performance of the Company’s products over a specified period of time, generally twelve to twenty-four months, at no cost to its customers. Warranty liabilities are established at the time that revenue is recognized at levels that represent the Company’s estimate of the costs that will be incurred to fulfill those warranty requirements. | ||||||||||||
Provisions for estimated losses on sales or related receivables are recorded when identified. Revenue includes certain shipping and handling costs and is stated net of representative commissions and sales taxes. Service revenue is deferred and recognized over the contract period, as is the case for extended warranty contracts, or recognized as services are provided. | ||||||||||||
Cost of goods sold | ' | |||||||||||
Cost of goods sold | ||||||||||||
Cost of goods sold includes materials, labor and overhead costs incurred in the manufacturing of products and services sold in the period as well as warranty costs. Material costs include raw materials, purchased components and sub-assemblies, outside processing and inbound freight costs. Labor and overhead costs consist of direct and indirect manufacturing costs, including wages and fringe benefits, operating supplies, depreciation, occupancy costs, and purchasing, receiving and inspection costs. | ||||||||||||
Research and development | ' | |||||||||||
Research and development | ||||||||||||
Expenditures for research and development activities are expensed as incurred. | ||||||||||||
Cash equivalents | ' | |||||||||||
Cash equivalents | ||||||||||||
The Company considers short-term investments that are highly liquid, readily convertible into cash and have maturities of less than three months when purchased to be cash equivalents. Cash equivalents at December 31, 2013 and 2012 were $28.5 million and $5.9 million, respectively, which were primarily investments in money market funds. | ||||||||||||
Accounts receivable and allowance for doubtful accounts | ' | |||||||||||
Accounts receivable and allowance for doubtful accounts | ||||||||||||
Accounts receivable are stated at the amounts the Company expects to collect. Credit limits are established through a process of reviewing the financial history and stability of each customer. The Company regularly evaluates the collectability of its trade receivables balances based on a combination of factors. If it is determined that a customer will be unable to fully meet its financial obligation, the Company records a specific allowance to reduce the related receivable to the amount expected to be recovered. In addition, the Company also records an allowance for all other customers based on certain other factors including the length of time the receivables are past due and historical collection experience with individual customers. | ||||||||||||
Inventories | ' | |||||||||||
Inventories | ||||||||||||
Inventories are generally stated at the lower of cost or market and include materials, labor, and manufacturing overhead. Cost is determined based on a currently adjusted standard cost basis that approximates actual manufacturing cost on a first-in, first-out basis. | ||||||||||||
Inventory write-downs are recorded when conditions exist to indicate that inventories are likely to be in excess of anticipated demand or are obsolete based upon the Company’s assumptions about future demand for its products and market conditions. The Company regularly evaluates its ability to realize the value of inventories based on a combination of factors including the following: historical usage rates, forecasted sales or usage, product end of life dates, estimated current and future market values and new product introductions. When recorded, write-downs reduce the carrying value of the Company’s inventories to their net realizable value and create a new cost-basis in the inventories. Write-downs are reflected in cost of goods sold in the Consolidated Statements of Income. | ||||||||||||
Demonstration Units | ' | |||||||||||
Demonstration units | ||||||||||||
The Company’s products which are being used as demonstration units are stated at the lower of cost or market and are included in prepaid expenses and other current assets in the Consolidated Balance Sheets. Demonstration units are available for sale and the Company periodically evaluates them as to marketability and realizable values. The carrying value of demonstration units was $42.7 million and $35.8 million at December 31, 2013 and 2012, respectively. | ||||||||||||
Property and equipment | ' | |||||||||||
Property and equipment | ||||||||||||
Property and equipment are stated at cost and are depreciated using a straight-line methodology over their estimated useful lives. Repairs and maintenance are charged to expense as incurred. | ||||||||||||
Goodwill | ' | |||||||||||
Goodwill | ||||||||||||
Goodwill is reviewed during the third quarter of each year, or more frequently if warranted, for impairment to determine if events or changes in business conditions indicate that the carrying value may not be recoverable. See Note 7, "Goodwill," for additional information. | ||||||||||||
Intangible assets | ' | |||||||||||
Intangible assets | ||||||||||||
Intangible assets are amortized using a straight-line methodology over their estimated useful lives. Intangible assets with indefinite useful lives are evaluated annually for impairment, or more frequently if required. The Company did not recognize any impairment charges on intangible assets with indefinite lives during the years ended December 31, 2013, 2012 and 2011. | ||||||||||||
Impairment of long-lived assets | ' | |||||||||||
Impairment of long-lived assets | ||||||||||||
Long-lived asset groups are reviewed for impairment when circumstances indicate that the carrying amounts may not be recoverable. Impairment exists when the carrying value is greater than the expected undiscounted future cash flows expected to be provided by the asset group. If impairment exists, the asset group is written down to its fair value. The Company did not recognize any impairment charges on long-lived assets during the years ended December 31, 2013, 2012 and 2011. | ||||||||||||
Advertising costs | ' | |||||||||||
Advertising costs | ||||||||||||
Advertising costs, which are included in selling, general and administrative expenses, are expensed as incurred. Advertising costs for the years ended December 31, 2013, 2012 and 2011 were $10.7 million, $8.5 million and $11.1 million, respectively. | ||||||||||||
Cost-basis investments | ' | |||||||||||
Cost-basis investments | ||||||||||||
The Company has private company investments, which consist of investments for which the Company does not have the ability to exercise significant influence, and are accounted for under the cost method. The investments are carried at cost and adjusted only when the Company believes that events have occurred that are likely to have a significant other-than-temporary adverse effect on the estimated fair value of the investments. If no such events have occurred, the fair value of the investments is not calculated as it is not practicable to do so. The carrying value of those investments was $13.5 million at December 31, 2013 and 2012. The investments are included in other assets in the Consolidated Balance Sheets. | ||||||||||||
Contingencies | ' | |||||||||||
Contingencies | ||||||||||||
The Company is subject to the possibility of loss contingencies arising in the normal course of business. An estimated loss is accrued when the Company determines that it is probable that an asset has been impaired or a liability has been incurred and the amount can be reasonably estimated. The Company regularly evaluates current available information to determine whether such accruals should be adjusted. | ||||||||||||
Earnings per share | ' | |||||||||||
Earnings per share | ||||||||||||
Basic earnings per share is based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the weighted shares outstanding are increased to include additional shares from the assumed exercise of stock options, if dilutive, assumed issuance of unvested restricted stock awards and from the assumed conversion of the convertible notes. | ||||||||||||
The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator for earnings per share: | ||||||||||||
Earnings from continuing operations | $ | 177,015 | $ | 225,356 | $ | 222,652 | ||||||
Loss from discontinued operations | — | (2,958 | ) | (1,178 | ) | |||||||
Net earnings for basic and diluted earnings per share | $ | 177,015 | $ | 222,398 | $ | 221,474 | ||||||
Denominator for earnings per share: | ||||||||||||
Weighted average number of common shares outstanding | 142,446 | 151,634 | 158,323 | |||||||||
Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method | 2,149 | 1,960 | 2,528 | |||||||||
Diluted shares outstanding | 144,595 | 153,594 | 160,851 | |||||||||
The effect of stock-based compensation awards for the years ended December 31, 2013, 2012 and 2011 that aggregated 549,000, 1,198,000 and 352,000 shares have been excluded for purposes of diluted earnings per share since the effect would have been anti-dilutive. | ||||||||||||
Stock-based compensation | ' | |||||||||||
The Company elected to adopt the “long-haul” method to calculate the historical pool of windfall tax benefits, which calculates on a grant by grant basis, the windfall or excess tax benefit that arose upon the exercise of each stock option, based on a comparison to the total tax deduction to the “as-if” deferred tax asset that would have been recorded had the Company followed the recognition provisions of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 718, “Compensation-Stock Compensation,” since its effective date of January 1, 2006. Additionally, the Company elected to adopt the “tax-law ordering” method of measuring the timing in which tax deductions on stock option exercises should be recognized in the consolidated financial statements. | ||||||||||||
Concentration of risk | ' | |||||||||||
Concentration of risk | ||||||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of trade receivables. Concentration of credit risk with respect to trade receivables is limited because a relatively large number of geographically diverse customers make up the Company’s customer base, thus diversifying the trade credit risk. The Company controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations for all new customers and requires letters of credit, bank guarantees and advanced payments, if deemed necessary. | ||||||||||||
A substantial portion of the Company’s revenue is derived from sales to United States and foreign government agencies (see Note 17, "Operating Segments and Related Information"). The Company also purchases certain key components from sole or limited source suppliers. | ||||||||||||
The Company maintains cash deposits with major banks that from time to time may exceed federally insured limits. The Company periodically assesses the financial condition of the institutions and instruments in which it invests, and adjusts its investment balances to mitigate the risk of principal loss. | ||||||||||||
Use of estimates | ' | |||||||||||
Use of estimates | ||||||||||||
The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates and judgments made by management of the Company include matters such as collectability of accounts receivable, realizability of inventories, recoverability of deferred tax assets, impairment of goodwill and other long-lived assets, loss contingencies and adequacy of warranty accruals. Actual results could differ from those estimates. The Company believes that the estimates used are reasonable. | ||||||||||||
Accumulated other comprehensive earnings | ' | |||||||||||
Accumulated other comprehensive earnings | ||||||||||||
Accumulated other comprehensive earnings includes cumulative translation adjustments, fair value adjustments on cash flow hedges and changes in minimum liability for pension plans. Foreign currency translation adjustments included in comprehensive income were not tax affected as investments in international affiliates are deemed to be indefinite in duration. | ||||||||||||
Product warranties | ' | |||||||||||
The Company generally provides a twelve to twenty-four month warranty on its products. A provision for the estimated future costs of warranty, based upon historical cost and product performance experience, is recorded when revenue is recognized. | ||||||||||||
Segment reporting | ' | |||||||||||
The accounting policies of each of the segments are the same. The Company’s President and Chief Executive Officer evaluates the performance of each segment based upon its revenue and earnings from operations. On a consolidated basis, these amounts represent revenue and earnings from operations as represented in the Consolidated Statements of Income. Other consists of corporate expenses and certain other operating expenses not allocated to the operating segments for management reporting purposes. Intersegment revenues are recorded at an estimated arm's length basis and are eliminated in consolidation. | ||||||||||||
Accounts receivable and inventories for operating segments are regularly reviewed by management and are reported below as segment assets. All remaining assets, liabilities, capital expenditures and depreciation are managed on a Company-wide basis. |
Nature_of_Business_and_Signifi2
Nature of Business and Significant Accounting Policies Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Nature of Business and Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share | ' | ||||||||||||||||
The following table sets forth the reconciliation of the numerator and denominator utilized in the computation of basic and diluted earnings per share (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Numerator for earnings per share: | |||||||||||||||||
Earnings from continuing operations | $ | 177,015 | $ | 225,356 | $ | 222,652 | |||||||||||
Loss from discontinued operations | — | (2,958 | ) | (1,178 | ) | ||||||||||||
Net earnings for basic and diluted earnings per share | $ | 177,015 | $ | 222,398 | $ | 221,474 | |||||||||||
Denominator for earnings per share: | |||||||||||||||||
Weighted average number of common shares outstanding | 142,446 | 151,634 | 158,323 | ||||||||||||||
Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method | 2,149 | 1,960 | 2,528 | ||||||||||||||
Diluted shares outstanding | 144,595 | 153,594 | 160,851 | ||||||||||||||
Supplemental cash flow disclosure | ' | ||||||||||||||||
Supplemental cash flow disclosure (in thousands) | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cash paid for: | |||||||||||||||||
Interest | $ | 12,922 | $ | 10,239 | $ | 1,119 | |||||||||||
Taxes | $ | 88,277 | $ | 74,333 | $ | 106,215 | |||||||||||
Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income and capitalized in the Consolidated Balance Sheets | ' | ||||||||||||||||
The following table sets forth the stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income for the years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of goods sold | $ | 2,591 | $ | 3,197 | $ | 3,306 | |||||||||||
Research and development | 4,938 | 5,001 | 5,195 | ||||||||||||||
Selling, general and administrative | 20,294 | 18,052 | 16,416 | ||||||||||||||
Stock-based compensation expense before income taxes | 27,823 | 26,250 | 24,917 | ||||||||||||||
Income tax benefit | (8,598 | ) | (7,737 | ) | (6,976 | ) | |||||||||||
Total stock-based compensation expense after income taxes | $ | 19,225 | $ | 18,513 | $ | 17,941 | |||||||||||
Stock-based compensation expense capitalized in the Consolidated Balance Sheets as of December 31, 2013, 2012 and 2011 is as follows (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Capitalized in inventory | $ | 734 | $ | 470 | $ | 819 | |||||||||||
Fair value of the stock-based awards granted weighted-average assumptions | ' | ||||||||||||||||
The fair value of the stock-based awards granted in the years ended December 31, 2013, 2012 and 2011 was estimated with the following weighted-average assumptions: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock option awards: | |||||||||||||||||
Risk-free interest rate | 0.3 | % | 0.4 | % | 1 | % | |||||||||||
Expected dividend yield | 1.5 | % | 1.3 | % | 0.7 | % | |||||||||||
Expected term | 4.3 years | 4.2 years | 4.3 years | ||||||||||||||
Expected volatility | 33.7 | % | 39.7 | % | 42.3 | % | |||||||||||
Market-based restricted stock awards: | |||||||||||||||||
Risk-free interest rate | 0.3 | % | 0.4 | % | N/A | ||||||||||||
Expected dividend yield | 0 | % | 0 | % | N/A | ||||||||||||
Expected term | 2.2 years | 3.0 years | N/A | ||||||||||||||
Expected volatility | 28.8 | % | 30.7 | % | N/A | ||||||||||||
Expected volatility of S&P 500 | 18.1 | % | 19.6 | % | N/A | ||||||||||||
Employee stock purchase plan: | |||||||||||||||||
Risk-free interest rate | 0.1 | % | 0.2 | % | 0.1 | % | |||||||||||
Expected dividend yield | 1.4 | % | 1.3 | % | 0.8 | % | |||||||||||
Expected term | 6 months | 6 months | 6 months | ||||||||||||||
Expected volatility | 28.1 | % | 25.2 | % | 33.1 | % | |||||||||||
Weighted-average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised | ' | ||||||||||||||||
The weighted-average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock option awards: | |||||||||||||||||
Weighted average grant date fair value per share | $ | 5.92 | $ | 6.43 | $ | 11.61 | |||||||||||
Total fair value of awards granted | $ | 6,095 | $ | 4,104 | $ | 4,613 | |||||||||||
Total fair value of awards vested | $ | 5,059 | $ | 6,023 | $ | 8,492 | |||||||||||
Total intrinsic value of options exercised | $ | 4,642 | $ | 5,928 | $ | 21,234 | |||||||||||
Restricted stock unit awards: | |||||||||||||||||
Weighted average grant date fair value per share | $ | 23.94 | $ | 17.23 | $ | 34.35 | |||||||||||
Total fair value of awards granted | $ | 28,239 | $ | 30,660 | $ | 21,822 | |||||||||||
Total fair value of awards vested | $ | 13,846 | $ | 12,710 | $ | 19,865 | |||||||||||
Employee stock purchase plan: | |||||||||||||||||
Weighted average grant date fair value per share | $ | 5.94 | $ | 4.66 | $ | 6.99 | |||||||||||
Total fair value of shares estimated to be issued | $ | 1,169 | $ | 1,694 | $ | 2,359 | |||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The following table sets forth the changes in the balances of each component of accumulated other comprehensive income for the year ended December 31. 2013: | |||||||||||||||||
Pension Plans | Cash Flow | Foreign | Total | ||||||||||||||
Items | Hedge Items | Currency | |||||||||||||||
Items | |||||||||||||||||
Balance, December 31, 2012 | $ | (5,127 | ) | $ | — | $ | 14,668 | $ | 9,541 | ||||||||
Other comprehensive income before reclassifications, net of tax | 184 | 1,105 | 11,838 | 13,127 | |||||||||||||
Amounts reclassified from accumulated other comprehensive earnings, net of tax | 2,777 | 555 | — | 3,332 | |||||||||||||
Net current period other comprehensive income, net of tax | 2,961 | 1,660 | 11,838 | 16,459 | |||||||||||||
Balance, December 31, 2013 | $ | (2,166 | ) | $ | 1,660 | $ | 26,506 | $ | 26,000 | ||||||||
Components of accumulated other comprehensive earnings related to the Company’s pension plans as of December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Net loss | $ | (1,836 | ) | $ | (4,501 | ) | |||||||||||
Prior service cost | (330 | ) | (626 | ) | |||||||||||||
$ | (2,166 | ) | $ | (5,127 | ) |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Foreign Currency [Abstract] | ' | |||||||||||||||
Notional amounts of outstanding foreign currency forward contracts by currency | ' | |||||||||||||||
As of December 31, 2013, the following interest rate swaps were outstanding: | ||||||||||||||||
Contract Date | Notional Amount | Fixed Rate | Effective Date | Maturity Date | ||||||||||||
(in millions) | ||||||||||||||||
15-Mar-13 | $ | 69.4 | 1.0165 | % | 5-Apr-13 | 31-Mar-19 | ||||||||||
29-Mar-13 | $ | 69.4 | 0.97 | % | 5-Apr-13 | 31-Mar-19 | ||||||||||
The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency at December 31, 2013 and 2012 (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Swedish kronor | $ | 99,214 | $ | 98,385 | ||||||||||||
Euro | 265 | 2,232 | ||||||||||||||
British pound sterling | 5,641 | 15,619 | ||||||||||||||
Australian dollar | 5,986 | 7,022 | ||||||||||||||
Japanese yen | 4,462 | 5,157 | ||||||||||||||
Other | 6,362 | 622 | ||||||||||||||
$ | 121,930 | $ | 129,037 | |||||||||||||
The carrying amount of our derivative instruments included in the Consolidated Balance Sheets are as follows (in thousands): | ||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||
Other Current Assets | Other Current Liabilities | Other Current Assets | Other Current Liabilities | |||||||||||||
Foreign exchange contracts | $ | 392 | $ | 613 | $ | 2,106 | $ | 229 | ||||||||
Accounts_Receivable_Accounts_R
Accounts Receivable Accounts Receivable (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | |||||||||||
Allowance for doubtful accounts and the activity | ' | |||||||||||
The following table summarizes the Company’s allowance for doubtful accounts and the activity for 2013, 2012 and 2011 (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Allowance for doubtful accounts, beginning of year | $ | 6,574 | $ | 5,556 | $ | 5,104 | ||||||
Charges to costs and expenses | 1,571 | 2,383 | 1,699 | |||||||||
Write-offs of uncollectible accounts, net of recoveries | (505 | ) | (1,055 | ) | (973 | ) | ||||||
Business acquisitions and disposals | — | (351 | ) | (148 | ) | |||||||
Currency translation adjustments | 34 | 41 | (126 | ) | ||||||||
Allowance for doubtful accounts, end of year | $ | 7,674 | $ | 6,574 | $ | 5,556 | ||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(as adjusted) | ||||||||
Raw material and subassemblies | $ | 204,542 | $ | 231,273 | ||||
Work-in-progress | 45,060 | 50,644 | ||||||
Finished goods | 95,117 | 97,163 | ||||||
$ | 344,719 | $ | 379,080 | |||||
Property_and_Equipment_Propert
Property and Equipment Property and Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Property and equipment | ' | |||||||||
Property and equipment are summarized as follows (in thousands): | ||||||||||
Estimated | December 31, | |||||||||
Useful Life | 2013 | 2012 | ||||||||
Land | — | $ | 25,254 | $ | 23,194 | |||||
Buildings | 30 years | 115,206 | 109,587 | |||||||
Machinery and equipment | 3 to 7 years | 237,179 | 186,303 | |||||||
Office equipment and other | 3 to 10 years | 91,666 | 83,001 | |||||||
469,305 | 402,085 | |||||||||
Less accumulated depreciation | (235,264 | ) | (190,470 | ) | ||||||
$ | 234,041 | $ | 211,615 | |||||||
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $35.9 million, $35.3 million and $43.8 million, respectively. |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Disclosure - Goodwill - Additional Information [Abstract] | ' | |||||||||||||||||||||||
Carrying value of goodwill by reporting segment and the activity | ' | |||||||||||||||||||||||
The carrying value of goodwill by reporting segment and the activity for the two year period ending December 31, 2013 is as follows (in thousands): | ||||||||||||||||||||||||
Thermal Vision and Measurement | Raymarine | Surveillance | Detection | Integrated Systems | Total | |||||||||||||||||||
Balance, December 31, 2011 | $ | 251,187 | $ | 98,364 | $ | 90,501 | $ | 38,162 | $ | 20,129 | $ | 498,343 | ||||||||||||
Currency translation adjustments | 2,039 | 2,380 | 316 | — | — | 4,735 | ||||||||||||||||||
Balance, December 31, 2012 | 253,226 | 100,744 | 90,817 | 38,162 | 20,129 | 503,078 | ||||||||||||||||||
(as originally reported) | ||||||||||||||||||||||||
Retrospective adjustments | 61,228 | — | — | — | — | 61,228 | ||||||||||||||||||
Balance, December 31, 2012 | 314,454 | 100,744 | 90,817 | 38,162 | 20,129 | 564,306 | ||||||||||||||||||
(as adjusted) | ||||||||||||||||||||||||
Goodwill from acquisitions | 2,401 | — | — | — | 2,463 | 4,864 | ||||||||||||||||||
Currency translation adjustments | 4,669 | 1,684 | 77 | — | 101 | 6,531 | ||||||||||||||||||
Balance, December 31, 2013 | $ | 321,524 | $ | 102,428 | $ | 90,894 | $ | 38,162 | $ | 22,693 | $ | 575,701 | ||||||||||||
Intangible_Assets_Intangible_A
Intangible Assets Intangible Assets (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Intangible Assets [Abstract] | ' | |||||||||
Intangible assets | ' | |||||||||
Intangible assets are summarized as follows (in thousands): | ||||||||||
Weighted | December 31, | |||||||||
Average | ||||||||||
Estimated | ||||||||||
Useful Life | 2013 | 2012 | ||||||||
(as adjusted) | ||||||||||
Product technology | 11 years | $ | 69,919 | $ | 94,975 | |||||
Customer relationships | 11 years | 83,899 | 84,681 | |||||||
Trademarks and tradename portfolios | 15 years | 7,160 | 7,160 | |||||||
Tradename portfolio not subject to amortization | Indefinite | 39,166 | 38,875 | |||||||
Other | 5 years | 21,996 | 24,319 | |||||||
Acquired identifiable intangibles | 222,140 | 250,010 | ||||||||
Less accumulated amortization | (70,517 | ) | (78,328 | ) | ||||||
Net acquired identifiable intangibles | 151,623 | 171,682 | ||||||||
Patents | 17 years | 4,471 | 4,464 | |||||||
Less accumulated amortization | (3,989 | ) | (3,960 | ) | ||||||
Net patents | 482 | 504 | ||||||||
Acquired in-place leases and other | 6 years | 9,333 | 9,150 | |||||||
Less accumulated amortization | (7,243 | ) | (5,513 | ) | ||||||
Net acquired in-place leases and other | 2,090 | 3,637 | ||||||||
$ | 154,195 | $ | 175,823 | |||||||
Estimated future aggregate amortization expense | ' | |||||||||
For intangible assets recorded at December 31, 2013, the estimated future aggregate amortization expense for the years ending December 31, 2014 through 2018 is approximately (in thousands): | ||||||||||
2014 | $ | 21,450 | ||||||||
2015 | 16,510 | |||||||||
2016 | 12,025 | |||||||||
2017 | 11,544 | |||||||||
2018 | 9,391 | |||||||||
Accrued_Product_Warranties_Tab
Accrued Product Warranties (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||||||
Summary of Warranty Liability and Activity | ' | |||||||||||
The following table summarizes the Company’s warranty liability and activity for 2013, 2012 and 2011 (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Accrued product warranties, beginning of year | $ | 16,152 | $ | 16,046 | $ | 18,686 | ||||||
Amounts paid for warranty services | (10,372 | ) | (12,317 | ) | (11,849 | ) | ||||||
Warranty provisions for products sold | 10,917 | 10,477 | 9,519 | |||||||||
Business acquisitions and disposals | — | 839 | (20 | ) | ||||||||
Currency translation adjustments and other | 1,035 | 1,107 | (290 | ) | ||||||||
Accrued product warranties, end of year | $ | 17,732 | $ | 16,152 | $ | 16,046 | ||||||
Current accrued product warranties, end of year | $ | 14,665 | $ | 13,169 | $ | 13,370 | ||||||
Long-term accrued product warranties, end of year | $ | 3,067 | $ | 2,983 | $ | 2,676 | ||||||
LongTerm_Debt_LongTerm_Debt_Ta
Long-Term Debt Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term debt | ' | |||||||
Long-term debt consists of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Unsecured notes | $ | 250,000 | $ | 250,000 | ||||
Term loan | 138,750 | — | ||||||
Unamortized discounts and issuance costs of unsecured notes | (1,222 | ) | (1,681 | ) | ||||
$ | 387,528 | $ | 248,319 | |||||
Current portion, long-term debt | $ | 15,000 | $ | — | ||||
Long-term debt | $ | 372,528 | $ | 248,319 | ||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments [Abstract] | ' | |||||||
Future minimum obligations under all non-cancelable leases, net of expected sublease income, and other contractual obligations | ' | |||||||
The future minimum obligations under all non-cancelable leases, net of expected sublease income, and other contractual obligations are as follows (in thousands): | ||||||||
Net | Other | |||||||
Operating | Contractual | |||||||
Leases | Obligations | |||||||
2014 | $ | 11,680 | $ | 1,020 | ||||
2015 | 7,557 | 1,008 | ||||||
2016 | 2,435 | 550 | ||||||
2017 | 1,488 | 550 | ||||||
2018 | 1,428 | 550 | ||||||
Thereafter | 1,718 | — | ||||||
Total minimum payments | $ | 26,306 | $ | 3,678 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Pre-tax earnings by significant geographical locations | ' | |||||||||||
Pre-tax earnings by significant geographical locations from continuing operations are as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 118,269 | $ | 180,022 | $ | 192,219 | ||||||
Foreign | 110,717 | 111,890 | 118,860 | |||||||||
$ | 228,986 | $ | 291,912 | $ | 311,079 | |||||||
Provisions for income taxes | ' | |||||||||||
The provisions for income taxes from continuing operations are as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current tax expense (benefit): | ||||||||||||
Federal | $ | 38,249 | $ | 53,187 | $ | 62,858 | ||||||
State | 4,413 | (3,075 | ) | 9,262 | ||||||||
Foreign | 13,483 | 21,138 | 24,452 | |||||||||
56,145 | 71,250 | 96,572 | ||||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | (252 | ) | 3,194 | (5,185 | ) | |||||||
State | (335 | ) | 1,887 | (993 | ) | |||||||
Foreign | (3,587 | ) | (9,775 | ) | (1,967 | ) | ||||||
(4,174 | ) | (4,694 | ) | (8,145 | ) | |||||||
Total provision | $ | 51,971 | $ | 66,556 | $ | 88,427 | ||||||
Deferred tax assets (liabilities) | ' | |||||||||||
Deferred tax assets (liabilities) are composed of the following components (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(as adjusted) | ||||||||||||
Allowance for doubtful accounts | $ | 1,295 | $ | 1,123 | ||||||||
Accrued product warranties | 3,069 | 3,099 | ||||||||||
Inventory basis differences | 11,421 | 9,225 | ||||||||||
Accrued liabilities | 8,987 | 7,206 | ||||||||||
Deferred revenue | 1,775 | 2,205 | ||||||||||
Current net operating loss | 7,449 | 8,085 | ||||||||||
Other | (1,024 | ) | (1,025 | ) | ||||||||
Foreign accrued liabilities | 4,504 | — | ||||||||||
Foreign other | 913 | 1,042 | ||||||||||
Net current deferred tax assets | $ | 38,389 | $ | 30,960 | ||||||||
Net operating loss carry-forwards | $ | 6,143 | $ | 11,588 | ||||||||
Credit carry-forwards | 6,391 | 7,034 | ||||||||||
Domestic depreciation | (5,455 | ) | (7,222 | ) | ||||||||
Supplemental Executive Retirement Plan | 3,198 | 7,491 | ||||||||||
Stock-based compensation | 17,239 | 13,745 | ||||||||||
Intangibles | (14,450 | ) | (15,999 | ) | ||||||||
Accrued Liabilities | 7,624 | 6,033 | ||||||||||
Domestic other | 1,416 | 4,018 | ||||||||||
Foreign credit carry-forwards | — | 3,590 | ||||||||||
Foreign intangibles | — | (1,259 | ) | |||||||||
Foreign net operating loss carry-forwards | 760 | 8,119 | ||||||||||
Foreign other | 16 | (78 | ) | |||||||||
Valuation allowance | (4,999 | ) | (4,837 | ) | ||||||||
Net long-term deferred tax assets | $ | 17,883 | $ | 32,223 | ||||||||
Foreign credit carry-forwards | $ | 2,922 | $ | — | ||||||||
Foreign depreciation | 2,418 | 3,196 | ||||||||||
Foreign intangibles | (18,528 | ) | (23,597 | ) | ||||||||
Foreign net operating loss carry-forwards | 8,930 | 5,336 | ||||||||||
Foreign other | 461 | 504 | ||||||||||
Valuation allowance | (8,457 | ) | (4,510 | ) | ||||||||
Net long-term deferred tax liabilities | $ | (12,254 | ) | $ | (19,071 | ) | ||||||
Effective income tax rate reconciliation | ' | |||||||||||
The provision for income taxes differs from the amount of tax determined by applying the applicable United States statutory federal income tax rate to pretax income as a result of the following differences: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory federal tax rate | 35 | % | 35 | % | 35 | % | ||||||
Increase (decrease) in rates resulting from: | ||||||||||||
Foreign rate differential | (11.6 | ) | (10.4 | ) | (3.8 | ) | ||||||
Foreign, federal and state income tax credits | (2.2 | ) | (2.7 | ) | (2.9 | ) | ||||||
State taxes | 1 | 0.3 | 2.2 | |||||||||
Non-deductible expenses | 0.5 | 0.7 | (1.2 | ) | ||||||||
Other | — | (0.1 | ) | (0.9 | ) | |||||||
Effective tax rate | 22.7 | % | 22.8 | % | 28.4 | % | ||||||
Activity related to unrecognized tax benefits, including amounts accrued for potential interest and penalties | ' | |||||||||||
The following table summarizes the activity related to unrecognized tax benefits, including amounts accrued for potential interest and penalties (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance, beginning of year | $ | 35,143 | $ | 29,200 | $ | 30,949 | ||||||
Increases related to current year tax positions | 979 | 7,220 | 1,225 | |||||||||
Increases related to prior year tax positions | 714 | 1,559 | 4,192 | |||||||||
Decreases related to prior year tax positions | (2,736 | ) | (343 | ) | (4,608 | ) | ||||||
Lapse of statute of limitations | (2,012 | ) | (1,887 | ) | (2,558 | ) | ||||||
Settlements | (2,555 | ) | (606 | ) | — | |||||||
Balance, end of year | $ | 29,533 | $ | 35,143 | $ | 29,200 | ||||||
Tax years open to examination by major taxing jurisdictions | ' | |||||||||||
The Company currently has the following tax years open to examination by major taxing jurisdictions: | ||||||||||||
Tax Years: | ||||||||||||
United States Federal | 2012 | |||||||||||
State of California | 2008 – 2012 | |||||||||||
State of Massachusetts | 2011 – 2012 | |||||||||||
State of Oregon | 2012 | |||||||||||
Sweden | 2008 – 2012 | |||||||||||
United Kingdom | 2007 – 2012 | |||||||||||
Belgium | 2011 - 2012 |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Information with Respect to Stock Option Activity | ' | ||||||||||||
Information with respect to stock option activity for 2013 is as follows: | |||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | (in thousands) | |||||||||||
Term | |||||||||||||
Outstanding at December 31, 2012 | 6,642 | $ | 21.64 | 4.7 | |||||||||
Granted | 1,029 | 24.58 | |||||||||||
Exercised | (325 | ) | 14.22 | ||||||||||
Forfeited | (8 | ) | 21.4 | ||||||||||
Outstanding at December 31, 2013 | 7,338 | $ | 22.38 | 4.6 | $ | 61,036 | |||||||
Exercisable at December 31, 2013 | 5,973 | $ | 21.82 | 3.6 | $ | 53,284 | |||||||
Vested and expected to vest at December 31, 2013 | 7,270 | $ | 22.36 | 4.6 | $ | 60,649 | |||||||
Information with Respect to Restricted Stock Unit Activity | ' | ||||||||||||
Information with respect to restricted stock unit activity for 2013 is as follows: | |||||||||||||
Shares | Weighted | ||||||||||||
(in thousands) | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Outstanding at December 31, 2012 | 2,372 | $ | 24.59 | ||||||||||
Granted | 1,180 | 23.93 | |||||||||||
Vested and distributed | (566 | ) | 26.71 | ||||||||||
Forfeited | (198 | ) | 24.03 | ||||||||||
Outstanding at December 31, 2013 | 2,788 | $ | 21.16 | ||||||||||
Other_Employee_Benefit_Plans_T
Other Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Amounts recognized in other comprehensive earnings | ' | ||||||||||||||||
Amounts recognized in other comprehensive earnings during the years ended December 31, 2013, 2012 and 2011, net of tax, are as follows (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Net earnings (loss) | $ | 2,665 | $ | 448 | $ | (1,410 | ) | ||||||||||
Prior service cost | 296 | 297 | 297 | ||||||||||||||
$ | 2,961 | $ | 745 | $ | (1,113 | ) | |||||||||||
Components of accumulated other comprehensive earnings (loss) related to the Companybs pension plans | ' | ||||||||||||||||
The following table sets forth the changes in the balances of each component of accumulated other comprehensive income for the year ended December 31. 2013: | |||||||||||||||||
Pension Plans | Cash Flow | Foreign | Total | ||||||||||||||
Items | Hedge Items | Currency | |||||||||||||||
Items | |||||||||||||||||
Balance, December 31, 2012 | $ | (5,127 | ) | $ | — | $ | 14,668 | $ | 9,541 | ||||||||
Other comprehensive income before reclassifications, net of tax | 184 | 1,105 | 11,838 | 13,127 | |||||||||||||
Amounts reclassified from accumulated other comprehensive earnings, net of tax | 2,777 | 555 | — | 3,332 | |||||||||||||
Net current period other comprehensive income, net of tax | 2,961 | 1,660 | 11,838 | 16,459 | |||||||||||||
Balance, December 31, 2013 | $ | (2,166 | ) | $ | 1,660 | $ | 26,506 | $ | 26,000 | ||||||||
Components of accumulated other comprehensive earnings related to the Company’s pension plans as of December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Net loss | $ | (1,836 | ) | $ | (4,501 | ) | |||||||||||
Prior service cost | (330 | ) | (626 | ) | |||||||||||||
$ | (2,166 | ) | $ | (5,127 | ) | ||||||||||||
Summary of the components of the net periodic pension expense for the benefit obligation and fund assets of the plans | ' | ||||||||||||||||
A summary of the components of the net periodic pension expense for the benefit obligation and fund assets of the plans is as follows (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at January 1 | $ | 24,932 | $ | 23,979 | |||||||||||||
Service costs | 254 | 267 | |||||||||||||||
Interest costs | 883 | 936 | |||||||||||||||
Actuarial (gain) loss | (296 | ) | (158 | ) | |||||||||||||
Benefits paid | (13,292 | ) | (417 | ) | |||||||||||||
Foreign currency exchange changes | 70 | 325 | |||||||||||||||
Benefit obligation at December 31 | $ | 12,551 | $ | 24,932 | |||||||||||||
Fair value of plan assets at December 31 | $ | — | $ | — | |||||||||||||
Unfunded status at December 31 | $ | 12,551 | $ | 24,932 | |||||||||||||
Amounts recognized in the Consolidated Balance Sheets: | |||||||||||||||||
Current liabilities | $ | 383 | $ | 409 | |||||||||||||
Non-current liabilities | $ | 12,168 | $ | 24,523 | |||||||||||||
Weighted average assumptions used | ' | ||||||||||||||||
The weighted average assumptions used are as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||
SERP: | |||||||||||||||||
Discount rate | 3.75 | % | 4 | % | |||||||||||||
Rate of increase in compensation levels | 3 | % | 5 | % | |||||||||||||
Defined benefit pension plan for employees outside the United States: | |||||||||||||||||
Discount rate | 3.5 | % | 2.75 | % | |||||||||||||
Funded status and projected benefit obligation: | |||||||||||||||||
SERP: | |||||||||||||||||
Discount rate | 4.75 | % | 3.75 | % | |||||||||||||
Rate of increase in compensation levels | 3 | % | 3 | % | |||||||||||||
Defined benefit pension plan for employees outside the United States: | |||||||||||||||||
Discount rate | 3.5 | % | 2.75 | % | |||||||||||||
Benefits expected to be paid under the plans | ' | ||||||||||||||||
Benefits expected to be paid under the plans are approximately (in thousands): | |||||||||||||||||
2014 | $ | 382 | |||||||||||||||
2015 | 397 | ||||||||||||||||
2016 | 393 | ||||||||||||||||
2017 | 391 | ||||||||||||||||
2018 | 376 | ||||||||||||||||
Five years thereafter | 13,881 | ||||||||||||||||
$ | 15,820 | ||||||||||||||||
Components of net periodic benefit cost | ' | ||||||||||||||||
Components of net periodic benefit cost are as follows (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Service costs | $ | 254 | $ | 267 | $ | 205 | |||||||||||
Interest costs | 883 | 936 | 1,047 | ||||||||||||||
Net amortization and deferral | 1,111 | 1,205 | 903 | ||||||||||||||
Settlement loss | 3,305 | — | — | ||||||||||||||
Net periodic pension costs | $ | 5,553 | $ | 2,408 | $ | 2,155 | |||||||||||
Components of net periodic benefit cost expected to be recognized from amounts in accumulated other comprehensive earnings (loss) | ' | ||||||||||||||||
Components of net periodic benefit cost expected to be recognized from amounts in accumulated other comprehensive earnings during the year ending December 31, 2014 are as follows (in thousands): | |||||||||||||||||
Year Ending December 31, 2014 | |||||||||||||||||
Net loss | $ | 107 | |||||||||||||||
Net prior service cost | 160 | ||||||||||||||||
$ | 267 | ||||||||||||||||
Operating_Segments_and_Related1
Operating Segments and Related Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Operating Segment Information | ' | |||||||||||
Operating segment information is as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenue—External Customers: | ||||||||||||
Thermal Vision and Measurement | $ | 727,939 | $ | 628,019 | $ | 660,256 | ||||||
Raymarine | 163,200 | 158,183 | 171,489 | |||||||||
Surveillance | 456,490 | 486,355 | 577,552 | |||||||||
Detection | 53,191 | 63,312 | 79,918 | |||||||||
Integrated Systems | 95,552 | 69,489 | 54,847 | |||||||||
$ | 1,496,372 | $ | 1,405,358 | $ | 1,544,062 | |||||||
Revenue—Intersegments: | ||||||||||||
Thermal Vision and Measurement | $ | 16,449 | $ | 15,204 | $ | 18,553 | ||||||
Raymarine | 5 | 7 | 7 | |||||||||
Surveillance | 25,420 | 23,013 | 32,266 | |||||||||
Detection | 7,763 | 4,233 | 3,394 | |||||||||
Integrated Systems | 1,217 | 1,537 | 6,639 | |||||||||
Eliminations | (50,854 | ) | (43,994 | ) | (60,859 | ) | ||||||
$ | — | $ | — | $ | — | |||||||
Earnings (loss) from operations: | ||||||||||||
Thermal Vision and Measurement | $ | 161,307 | $ | 171,280 | $ | 194,674 | ||||||
Raymarine | 14,184 | 11,173 | 11,855 | |||||||||
Surveillance | 126,034 | 160,219 | 208,510 | |||||||||
Detection | (184 | ) | 1,089 | (5,568 | ) | |||||||
Integrated Systems | (1,907 | ) | 5,168 | 1,659 | ||||||||
Other | (58,691 | ) | (45,599 | ) | (97,935 | ) | ||||||
$ | 240,743 | $ | 303,330 | $ | 313,195 | |||||||
Segment Assets | ' | |||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(as adjusted) | ||||||||||||
Segment assets (accounts receivable, net and inventories): | ||||||||||||
Thermal Vision and Measurement | $ | 261,204 | $ | 265,132 | ||||||||
Raymarine | 63,628 | 73,564 | ||||||||||
Surveillance | 262,759 | 317,944 | ||||||||||
Detection | 21,754 | 31,861 | ||||||||||
Integrated Systems | 21,947 | 25,742 | ||||||||||
$ | 631,292 | $ | 714,243 | |||||||||
By Significant Geographical Location | ' | |||||||||||
Revenue and Long-Lived Assets by Geographic Area | ||||||||||||
Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 755,640 | $ | 717,841 | $ | 803,423 | ||||||
Europe | 370,800 | 337,163 | 382,388 | |||||||||
Other foreign | 369,932 | 350,354 | 358,251 | |||||||||
$ | 1,496,372 | $ | 1,405,358 | $ | 1,544,062 | |||||||
Long-lived assets are comprised of net property and equipment, net identifiable intangible assets, goodwill and other long-term assets. Long-lived assets by significant geographic locations are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(as adjusted) | ||||||||||||
United States | $ | 600,261 | $ | 584,623 | ||||||||
Europe | 359,444 | 353,800 | ||||||||||
Other foreign | 56,040 | 54,763 | ||||||||||
$ | 1,015,745 | $ | 993,186 | |||||||||
Revenue Derived from Major Customers | ' | |||||||||||
Major Customers | ||||||||||||
Revenue derived from major customers is as follows (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States government | $ | 354,902 | $ | 373,540 | $ | 444,882 | ||||||
Business_Acquisitions_Business
Business Acquisitions Business Acquisitions (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Lorex Technology Inc. [Member] | ' | |||||
Business Acquisition [Line Items] | ' | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||
The allocation of the purchase price is as follows (in thousands): | ||||||
Cash acquired | $ | 1,170 | ||||
Accounts receivable, net | 10,183 | |||||
Inventories | 13,967 | |||||
Property and equipment | 1,049 | |||||
Other assets | 3,004 | |||||
Liabilities | (10,252 | ) | ||||
Net tangible assets | 19,121 | |||||
Net deferred taxes | (4,171 | ) | ||||
Identifiable intangible assets | 15,100 | |||||
Goodwill | 31,121 | |||||
Purchase price | $ | 61,171 | ||||
None of the goodwill recognized is deductible for income tax purposes. | ||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | ' | |||||
The identifiable intangible assets and the estimated useful life of each are as follows (in thousands): | ||||||
Estimated | Amount | |||||
Useful Life | ||||||
Lorex Trade Name | indefinite | $ | 6,800 | |||
Customer Relationships | 7 years | 8,300 | ||||
$ | 15,100 | |||||
Traficon International NV | ' | |||||
Business Acquisition [Line Items] | ' | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||
The allocation of the purchase price is as follows (in thousands): | ||||||
Cash acquired | $ | 181 | ||||
Accounts receivable, net | 6,435 | |||||
Inventories | 2,853 | |||||
Property and equipment | 179 | |||||
Other assets | 657 | |||||
Liabilities | (5,248 | ) | ||||
Net tangible assets | 5,057 | |||||
Net deferred taxes | (6,903 | ) | ||||
Identifiable intangible assets | 20,102 | |||||
Goodwill | 30,107 | |||||
Purchase price | $ | 48,363 | ||||
None of the goodwill recognized is deductible for income tax purposes. | ||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | ' | |||||
The identifiable intangible assets and the estimated useful life of each are as follows (in thousands): | ||||||
Estimated | Amount | |||||
Useful Life | ||||||
Patented/Proprietary Technology | 10 years | $ | 5,951 | |||
Backlog | 1.5 years | 1,852 | ||||
Customer Relationships | 10 years | 12,299 | ||||
$ | 20,102 | |||||
DigitalOptics Charlotte [Member] | ' | |||||
Business Acquisition [Line Items] | ' | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||
The allocation of the purchase price for DOC Charlotte is as follows (in thousands): | ||||||
Inventories | $ | 741 | ||||
Property and equipment | 9,246 | |||||
Net tangible assets | 9,987 | |||||
Identifiable intangible assets | 2,520 | |||||
Goodwill | 2,401 | |||||
Purchase price | $ | 14,908 | ||||
None of the goodwill recognized is deductible for income tax purposes. | ||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | ' | |||||
The identifiable intangible assets and the estimated useful life of each are as follows (in thousands): | ||||||
Estimated | Amount | |||||
Useful Life | ||||||
Patented/Proprietary Technology | 12 years | $ | 2,000 | |||
Backlog | 2 years | 150 | ||||
Customer Relationships | 2.5 years | 370 | ||||
$ | 2,520 | |||||
Restructuring_Costs_Restructur1
Restructuring Costs Restructuring Costs (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Schedule of Restructuring and Related costs [Abstract] | ' | |||||||||||||||
Restructuring and Related Costs [Table Text Block] | ' | |||||||||||||||
The Company recorded the restructuring expenses in the segments as follows (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Thermal Vision and Measurement | $ | 17,370 | $ | — | ||||||||||||
Raymarine | 361 | — | ||||||||||||||
Surveillance | 3,598 | — | ||||||||||||||
Detection | 4,222 | 2,000 | ||||||||||||||
Integrated Systems | 1,761 | — | ||||||||||||||
Other | 209 | — | ||||||||||||||
$ | 27,521 | $ | 2,000 | |||||||||||||
Restructuring expenses were recorded in the Consolidated Statements of Income as follows (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Cost of goods sold | $ | 1,689 | $ | — | ||||||||||||
Restructuring expenses | 25,832 | 2,000 | ||||||||||||||
$ | 27,521 | $ | 2,000 | |||||||||||||
The following table summarizes the activity by cost type (in thousands): | ||||||||||||||||
Severance | Inventory | Facilities Exit, Lease Terminations & Other | Total | |||||||||||||
write downs | ||||||||||||||||
2013 restructuring expenses | $ | 19,866 | $ | 1,689 | $ | 5,966 | $ | 27,521 | ||||||||
Utilization | (1,675 | ) | (1,689 | ) | (2,296 | ) | (5,660 | ) | ||||||||
Balance, December 31, 2013 | $ | 18,191 | $ | — | $ | 3,670 | $ | 21,861 | ||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
FLIR SYSTEMS, INC. | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||
2013 | ||||||||||||||||
Revenue | $ | 348,583 | $ | 389,329 | $ | 358,141 | $ | 400,319 | ||||||||
Gross profit | 183,987 | 190,041 | 172,890 | 190,092 | ||||||||||||
Net earnings | 51,636 | 50,158 | 46,486 | 28,735 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share | $ | 0.36 | $ | 0.35 | $ | 0.33 | $ | 0.2 | ||||||||
Diluted earnings per share | $ | 0.35 | $ | 0.35 | $ | 0.32 | $ | 0.2 | ||||||||
2012 (as adjusted) | ||||||||||||||||
Revenue | $ | 348,452 | $ | 338,291 | $ | 332,230 | $ | 386,385 | ||||||||
Gross profit(1) | 182,727 | 173,417 | 173,665 | 205,375 | ||||||||||||
Earnings from continuing operations | 48,825 | 42,405 | 55,949 | 78,177 | ||||||||||||
Loss from discontinued operations | (686 | ) | (1,312 | ) | (44 | ) | (916 | ) | ||||||||
Net earnings | 48,139 | 41,093 | 55,905 | 77,261 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.32 | $ | 0.28 | $ | 0.37 | $ | 0.53 | ||||||||
Discontinued operations | (0.00 | ) | (0.01 | ) | (0.00 | ) | (0.01 | ) | ||||||||
Basic earnings per share | $ | 0.31 | $ | 0.27 | $ | 0.37 | $ | 0.52 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Continuing operations | $ | 0.31 | $ | 0.27 | $ | 0.37 | $ | 0.52 | ||||||||
Discontinued operations | (0.00 | ) | (0.01 | ) | (0.00 | ) | (0.01 | ) | ||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.27 | $ | 0.37 | $ | 0.52 | ||||||||
_______________ |
Nature_of_Business_and_Signifi3
Nature of Business and Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator for earnings per share: | ' | ' | ' | ' | ' | ' | ' |
Earnings from continuing operations | $78,177 | $55,949 | $42,405 | $48,825 | $177,015 | $225,356 | $222,652 |
Loss from discontinued operations, net of tax | -916 | -44 | -1,312 | -686 | 0 | -2,958 | -1,178 |
Net earnings for basic and diluted earnings per share | ' | ' | ' | ' | $177,015 | $222,398 | $221,474 |
Denominator for earnings per share: | ' | ' | ' | ' | ' | ' | ' |
Weighted average number of common shares outstanding | ' | ' | ' | ' | 142,446 | 151,634 | 158,323 |
Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method | ' | ' | ' | ' | 2,149 | 1,960 | 2,528 |
Diluted shares outstanding | ' | ' | ' | ' | 144,595 | 153,594 | 160,851 |
Nature_of_Business_and_Signifi4
Nature of Business and Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash paid for: | ' | ' | ' |
Interest | $12,922 | $10,239 | $1,119 |
Taxes | $88,277 | $74,333 | $106,215 |
Nature_of_Business_and_Signifi5
Nature of Business and Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense before income taxes | $27,823 | $26,250 | $24,917 |
Income tax benefit | -8,598 | -7,737 | -6,976 |
Total stock-based compensation expense after income taxes | 19,225 | 18,513 | 17,941 |
Cost of goods sold | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 2,591 | 3,197 | 3,306 |
Research and development | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 4,938 | 5,001 | 5,195 |
Selling, general and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $20,294 | $18,052 | $16,416 |
Nature_of_Business_and_Signifi6
Nature of Business and Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | ' | ' |
Capitalized in inventory | $734 | $470 | $819 |
Nature_of_Business_and_Signifi7
Nature of Business and Significant Accounting Policies (Details 5) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Option Awards | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.30% | 0.40% | 1.00% |
Expected dividend yield | 1.50% | 1.30% | 0.70% |
Expected term | '4 years 3 months 18 days | '4 years 2 months 12 days | '4 years 3 months 18 days |
Expected volatility | 33.70% | 39.70% | 42.30% |
Market-based restricted stock unit | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.30% | 0.40% | ' |
Expected dividend yield | 0.00% | 0.00% | ' |
Expected term | '2 years 2 months 12 days | '3 years | ' |
Market-based restricted stock unit | FLIR [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Expected volatility | 28.80% | 30.70% | ' |
Market-based restricted stock unit | S&P 500 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Expected volatility | 18.10% | 19.60% | ' |
Employee Stock Purchase Plan (ESPP) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.10% | 0.20% | 0.10% |
Expected dividend yield | 1.40% | 1.30% | 0.80% |
Expected term | '6 months | '6 months | '6 months |
Expected volatility | 28.10% | 25.20% | 33.10% |
Nature_of_Business_and_Signifi8
Nature of Business and Significant Accounting Policies (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Option Awards | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value per share | $5.92 | $6.43 | $11.61 |
Total fair value of awards granted | $6,095 | $4,104 | $4,613 |
Total fair value of awards vested | 5,059 | 6,023 | 8,492 |
Total intrinsic value of options exercised | 4,642 | 5,928 | 21,234 |
Restricted Stock Unit Awards | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value per share | $23.94 | $17.23 | $34.35 |
Total fair value of awards granted | 28,200 | 30,660 | 21,822 |
Total fair value of awards vested | 13,846 | 12,710 | 19,865 |
Employee Stock Purchase Plan (ESPP) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value per share | $5.94 | $4.66 | $6.99 |
Total fair value of shares estimated to be issued | $1,169 | $1,694 | $2,359 |
Nature_of_Business_and_Signifi9
Nature of Business and Significant Accounting Policies Nature of Business and Significant Accounting Policies (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes from Accumulated Other Comprehensive income [Abstract] | ' | ' | ' |
Pension plans, beginning balance | ($5,127) | ' | ' |
Pension plans adjustment, before reclassification | 184 | ' | ' |
Pension plans, reclassification | 2,777 | ' | ' |
Pension plans adjustment, after reclassification | 2,961 | 745 | -1,113 |
Pension plans, ending balalnce | -2,166 | -5,127 | ' |
Cash flow hedges, beginning balance | 0 | ' | ' |
Cash flow hedges adjustment, before reclassification | 1,105 | ' | ' |
Cash flow hedges, reclassification | 555 | ' | ' |
Cash flow hedges adjustment, after reclassification | 1,660 | 0 | 0 |
Cash flow hedges, ending balance | 1,660 | 0 | ' |
Foreign currency translation, beginning balance | 14,668 | ' | ' |
Foreign currency translation adjustment | 11,838 | 20,790 | -12,533 |
Foreign currency translation, ending balance | 26,506 | 14,668 | ' |
Accumulated other comprehensive earnings, beginning balance | 9,541 | ' | ' |
Other comprehensive earnings, before reclassifications | 13,127 | ' | ' |
Other comprehensive earnings, reclassification | 3,332 | ' | ' |
Other comprehensive earnings, after adjustment | 16,459 | 21,535 | -13,646 |
Accumulated other comprehensive earnings, ending balance | $26,000 | $9,541 | ' |
Recovered_Sheet1
Nature of Business and Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $26,506,000 | $14,668,000 | ' |
Gains and (losses) netted against other income, net | -300,000 | -3,000,000 | 1,100,000 |
Carrying value of demonstration units | 42,700,000 | 35,800,000 | ' |
Advertising costs | 10,700,000 | 8,500,000 | 11,100,000 |
Carrying value of cost-basis investments | 13,500,000 | 13,500,000 | ' |
Effect of stock-based compensation awards, shares excluded for purposes of diluted earnings per share | 549,000 | 1,198,000 | 352,000 |
Unrecognized stock-based compensation costs, net of estimated forfeitures | 42,700,000 | ' | ' |
Weighted average period of unrecognized stock-based compensation costs, net of estimated forfeitures | '1 year 9 months 18 days | ' | ' |
Estimated forfeiture rate | 5.00% | ' | ' |
Level 1 | ' | ' | ' |
Cash Equivalents, at Carrying Value | 28,500,000 | 5,900,000 | ' |
Time-vested restricted stock unit | ' | ' | ' |
Restricted stock units granted | 1,173,000 | 985,000 | 534,000 |
Performance-based restricted stock unit | ' | ' | ' |
Restricted stock units granted | ' | ' | 101,000 |
Time-vested and performance-based restricted stock unit | ' | ' | ' |
Weighted average grant date fair value per share | $23.98 | $21.66 | $34.35 |
Market-based restricted stock unit | ' | ' | ' |
Restricted stock units granted | 7,000 | 795,000 | ' |
Weighted average grant date fair value per share | $15.87 | $11.73 | ' |
Total fair value of awards granted | 100,000 | 9,300,000 | ' |
Restricted Stock Unit Awards | ' | ' | ' |
Total fair value of awards granted | 28,200,000 | 30,660,000 | 21,822,000 |
Stock Option Awards | ' | ' | ' |
Weighted average grant date fair value per share | $5.92 | $6.43 | $11.61 |
Cash received from the exercise of stock options | 4,600,000 | 3,600,000 | 13,800,000 |
Related tax benefit realized from the exercise of the stock options | 600,000 | 100,000 | 5,500,000 |
Employee Severance [Member] | ' | ' | ' |
Prior Period Reclassification Adjustment | ' | 3,800,000 | 700,000 |
Demonstration units [Member] | ' | ' | ' |
Prior Period Reclassification Adjustment | ' | $2,300,000 | ' |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Level 1 | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Cash Equivalents, at Carrying Value | $28.50 | $5.90 |
Level 2 | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Fair value of long-term debt | $259.50 | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Notional amounts of foreign currency forward contracts | $121,930 | $129,037 |
Swedish Kronor | ' | ' |
Notional amounts of foreign currency forward contracts | 99,214 | 98,385 |
Currency Euro [Member] | ' | ' |
Notional amounts of foreign currency forward contracts | 265 | 2,232 |
Currency British Pound Sterling [Member] | ' | ' |
Notional amounts of foreign currency forward contracts | 5,641 | 15,619 |
Australian Dollar | ' | ' |
Notional amounts of foreign currency forward contracts | 5,986 | 7,022 |
Japan, Yen | ' | ' |
Notional amounts of foreign currency forward contracts | 4,462 | 5,157 |
Other | ' | ' |
Notional amounts of foreign currency forward contracts | $6,362 | $622 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments Derivative Financial Instruments (Details 2) (Foreign exchange contracts, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Current Assets | ' | ' |
Derivatives [Line Items] | ' | ' |
Carrying amount of derivative asset | $392 | $2,106 |
Other Current Liabilities | ' | ' |
Derivatives [Line Items] | ' | ' |
Carrying amount of derivative liability | $613 | $229 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments Derivative Financial Instruments (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | March 15, 2013 Interest Rate Swap | March 29, 2013 Interest Rate Swap | ||
Derivative [Line Items] | ' | ' | ' | ' |
Contract Date | ' | ' | 15-Mar-13 | 29-Mar-13 |
Notional Amount | $121,930 | $129,037 | $69,400 | $69,400 |
Fixed Rate | ' | ' | 1.02% | 0.97% |
Effective Date | ' | ' | 5-Apr-13 | 5-Apr-13 |
Maturity Date | ' | ' | 31-Mar-19 | 31-Mar-19 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments Derivative Financial Instruments (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' |
Net gain (loss) | ($4,600,000) | $5,100,000 | ($2,300,000) |
Remaining maturities of foreign currency forward contracts | '6 months | ' | ' |
Term loan, effective interest rate | 2.49% | ' | ' |
Interest Rate Derivative Asset, at Fair Value, Net | 2,500,000 | ' | ' |
Interest Rate Derivative Assets, at Fair Value | 3,500,000 | ' | ' |
Interest Rate Derivative Liabilities, at Fair Value | 1,000,000 | ' | ' |
Fair value adjustment on interest rate swap contracts | $1,660,000 | $0 | $0 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Allowance for doubtful accounts, beginning of year | $6,574 | $5,556 | $5,104 |
Charges to costs and expenses | 1,571 | 2,383 | 1,699 |
Write-offs of uncollectible accounts, net of recoveries | -505 | -1,055 | -973 |
Business acquisitions and disposals | 0 | -351 | -148 |
Currency translation adjustments | 34 | 41 | -126 |
Allowance for doubtful accounts, end of year | $7,674 | $6,574 | $5,556 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw material and subassemblies | $204,542 | $231,273 |
Work-in-progress | 45,060 | 50,644 |
Finished goods | 95,117 | 97,163 |
Total inventories | $344,719 | $379,080 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Land | Land | Building | Building | Building | Machinery and equipment | Machinery and equipment | Machinery and equipment | Machinery and equipment | Office equipment and other | Office equipment and other | Office equipment and other | Office equipment and other | ||
Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, gross | $469,305 | $402,085 | $25,254 | $23,194 | $115,206 | $109,587 | ' | $237,179 | $186,303 | ' | ' | $91,666 | $83,001 | ' | ' |
Less accumulated depreciation | -235,264 | -190,470 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | $234,041 | $211,615 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment estimated useful life | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | '3 years | '7 years | ' | ' | '3 years | '10 years |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation | $35.90 | $35.30 | $43.80 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | $564,306 | $498,343 |
Currency translation adjustments | 6,531 | 4,735 |
Goodwill from Acquisitions | 4,864 | ' |
Ending Balance | 575,701 | 564,306 |
Goodwill, Purchase Accounting Adjustments | ' | 61,228 |
2012 goodwill balance, as originally reported | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Ending Balance | ' | 503,078 |
Thermal Vision and Measurement | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 314,454 | 251,187 |
Currency translation adjustments | 4,669 | 2,039 |
Goodwill from Acquisitions | 2,401 | ' |
Ending Balance | 321,524 | 314,454 |
Goodwill, Purchase Accounting Adjustments | ' | 61,228 |
Thermal Vision and Measurement | 2012 goodwill balance, as originally reported | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Ending Balance | ' | 253,226 |
Raymarine | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 100,744 | 98,364 |
Currency translation adjustments | 1,684 | 2,380 |
Goodwill from Acquisitions | 0 | ' |
Ending Balance | 102,428 | 100,744 |
Surveillance | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 90,817 | 90,501 |
Currency translation adjustments | 77 | 316 |
Goodwill from Acquisitions | 0 | ' |
Ending Balance | 90,894 | 90,817 |
Detection | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 38,162 | 38,162 |
Currency translation adjustments | 0 | 0 |
Goodwill from Acquisitions | 0 | ' |
Ending Balance | 38,162 | 38,162 |
Integrated Systems | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 20,129 | 20,129 |
Currency translation adjustments | 101 | 0 |
Goodwill from Acquisitions | 2,463 | ' |
Ending Balance | $22,693 | $20,129 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intangible Assets [Line Items] | ' | ' | ' |
Net carrying amount | $154,195,000 | $175,823,000 | ' |
Aggregate amortization expense | 24,700,000 | 24,400,000 | 33,200,000 |
2014 | 21,450,000 | ' | ' |
2015 | 16,510,000 | ' | ' |
2016 | 12,025,000 | ' | ' |
2017 | 11,544,000 | ' | ' |
2018 | 9,391,000 | ' | ' |
Acquired identifiable intangibles | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 222,140,000 | 250,010,000 | ' |
Less accumulated amortization | -70,517,000 | -78,328,000 | ' |
Net carrying amount | 151,623,000 | 171,682,000 | ' |
Product technology | Acquired identifiable intangibles | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 69,919,000 | 94,975,000 | ' |
Weighted average estimated useful life | '11 years | ' | ' |
Customer relationships | Acquired identifiable intangibles | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 83,899,000 | 84,681,000 | ' |
Weighted average estimated useful life | '11 years | ' | ' |
Trademarks and tradename portfolios | Acquired identifiable intangibles | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 7,160,000 | 7,160,000 | ' |
Weighted average estimated useful life | '15 years | ' | ' |
Other | Acquired identifiable intangibles | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 21,996,000 | 24,319,000 | ' |
Weighted average estimated useful life | '5 years | ' | ' |
Patents | Nonacquired intangibles | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 4,471,000 | 4,464,000 | ' |
Less accumulated amortization | -3,989,000 | -3,960,000 | ' |
Net carrying amount | 482,000 | 504,000 | ' |
Weighted average estimated useful life | '17 years | ' | ' |
Acquired in-place leases and other | Nonacquired intangibles | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 9,333,000 | 9,150,000 | ' |
Less accumulated amortization | -7,243,000 | -5,513,000 | ' |
Net carrying amount | 2,090,000 | 3,637,000 | ' |
Weighted average estimated useful life | '6 years | ' | ' |
Tradename not subject to amortization [Member] | Acquired identifiable intangibles | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | $39,166,000 | $38,875,000 | ' |
Intangible_Assets_Intangible_D
Intangible Assets Intangible (Details textual ) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Marine & Remote Sensing Solutions [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible asset | $375 |
DigitalOptics Charlotte [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible asset | 2,520 |
Lorex Technology Inc. [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible asset | 15,100 |
Traficon International NV | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible asset | $20,102 |
Credit_Agreement_Details
Credit Agreement (Details) (Bank Of America February Two Thousand Eleven New Credit Agreement, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Feb. 08, 2011 |
covenants | ||
Line of Credit Facility [Line Items] | ' | ' |
Maximum borrowing capacity | ' | $200 |
Option to increase maximum borrowing capacity | ' | 150 |
Term of agreement | ' | '5 years |
Eurodollar interest rate, variable interest rate lower limit | 1.67% | ' |
Prime lending rate, variable interest rate upper limit | 3.75% | ' |
Commitment fee rate | 0.30% | ' |
Covenant terms | 'The Credit Agreement contains two financial covenants that require the maintenance of a total leverage ratio and an interest coverage ratio | ' |
Letters of credit outstanding | 19.5 | ' |
Letter of Credit Facility, Number of Covenants | 2 | ' |
Minimum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Commitment fee rate | 0.25% | ' |
Maximum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Commitment fee rate | 0.40% | ' |
Long-term Debt [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Term loan | $150 | ' |
Accrued_Product_Warranties_Det
Accrued Product Warranties (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Accrued product warranties, beginning of year | $16,152 | $16,046 | $18,686 |
Amounts paid for warranty services | -10,372 | -12,317 | -11,849 |
Warranty provisions for products sold | 10,917 | 10,477 | 9,519 |
Business acquisitions and disposals | 0 | 839 | -20 |
Currency translation adjustments and other | 1,035 | 1,107 | -290 |
Accrued product warranties, end of year | 17,732 | 16,152 | 16,046 |
Current accrued product warranties, end of year | 14,665 | 13,169 | 13,370 |
Long-term accrued product warranties, end of ear | $3,067 | $2,983 | $2,676 |
Minimum [Member] | ' | ' | ' |
Schedule of Accrued Liabilities [Line Items] | ' | ' | ' |
Product warranty term | 12 | ' | ' |
Maximum [Member] | ' | ' | ' |
Schedule of Accrued Liabilities [Line Items] | ' | ' | ' |
Product warranty term | 24 | ' | ' |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2011 | Dec. 31, 2013 | |
3.75 % senior unsecured notes due September 1, 2016 | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' |
Unsecured notes | $250,000,000 | $250,000,000 | ' | ' |
Long-term Debt, Gross | 138,750,000 | 0 | ' | ' |
Unamortized issuance costs | -1,222,000 | -1,681,000 | ' | ' |
Long-term Debt | 387,528,000 | 248,319,000 | ' | ' |
Current portion, long-term debt | 15,000,000 | 0 | ' | ' |
Long-term Debt, Excluding Current Maturities | 372,528,000 | 248,319,000 | ' | ' |
Senior unsecured notes, issued amount | ' | ' | 250,000,000 | ' |
Senior unsecured notes, interest rate | ' | ' | 3.75% | ' |
Senior unsecured notes, maturity date | ' | ' | 1-Sep-16 | 5-Apr-19 |
Senior unsecured notes, proceeds | ' | ' | 247,700,000 | ' |
Senior unsecured notes, term | '5 years | ' | '5 years | ' |
Senior unsecured notes, interest payments | 'quarterly | ' | 'semiannually | ' |
Senior unsecured notes, interest payment dates | ' | ' | 'March 1 and September 1 | ' |
Debt Instrument, Periodic Payment, Principal | ' | ' | ' | $3,750,000 |
Debt Instrument, Description of Variable Rate Basis | ' | ' | ' | 'Interest is accrued at a one-month LIBOR rate |
Commitments_Details
Commitments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments [Abstract] | ' | ' | ' |
Total net rent expense | $18,300,000 | $13,600,000 | $10,100,000 |
Net Operating Leases | ' | ' | ' |
2014 | 11,680,000 | ' | ' |
2015 | 7,557,000 | ' | ' |
2016 | 2,435,000 | ' | ' |
2017 | 1,488,000 | ' | ' |
2018 | 1,428,000 | ' | ' |
Thereafter | 1,718,000 | ' | ' |
Total minimum payments | 26,306,000 | ' | ' |
Other Contractual Obligations | ' | ' | ' |
2014 | 1,020,000 | ' | ' |
2015 | 1,008,000 | ' | ' |
2016 | 550,000 | ' | ' |
2017 | 550,000 | ' | ' |
2018 | 550,000 | ' | ' |
Thereafter | 0 | ' | ' |
Total minimum payments | $3,678,000 | ' | ' |
Contingencies_Details
Contingencies (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | 20-May-11 | Oct. 27, 2010 |
Disclosure - Contingencies - Additional Information [Abstract] | ' | ' |
Litigation settlement payment | $39 | $3 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings from Continuing Operations before Income Taxes [Abstract] | ' | ' | ' |
United States | $118,269 | $180,022 | $192,219 |
Foreign | 110,717 | 111,890 | 118,860 |
Earnings from continuing operations before income taxes | 228,986 | 291,912 | 311,079 |
Current tax expense (benefit): | ' | ' | ' |
Federal | 38,249 | 53,187 | 62,858 |
State | 4,413 | -3,075 | 9,262 |
Foreign | 13,483 | 21,138 | 24,452 |
Current income tax expense (benefit) | 56,145 | 71,250 | 96,572 |
Deferred tax expense (benefit): | ' | ' | ' |
Federal | -252 | 3,194 | -5,185 |
State | -335 | 1,887 | -993 |
Foreign | -3,587 | -9,775 | -1,967 |
Deferred income tax expense (benefit) | -4,174 | -4,694 | -8,145 |
Total provision | $51,971 | $66,556 | $88,427 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
UNITED STATES FEDERAL | Foreign | State taxes | Current deferred tax assets | Current deferred tax assets | Current deferred tax assets | Current deferred tax assets | Current deferred tax assets | Current deferred tax assets | Noncurrent deferred tax assets | Noncurrent deferred tax assets | Noncurrent deferred tax assets | Noncurrent deferred tax assets | Noncurrent deferred tax liabilities | Noncurrent deferred tax liabilities | Noncurrent deferred tax liabilities | Noncurrent deferred tax liabilities | Noncurrent deferred tax liabilities | Noncurrent deferred tax liabilities | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||
UNITED STATES FEDERAL | UNITED STATES FEDERAL | Foreign | Foreign | UNITED STATES FEDERAL | UNITED STATES FEDERAL | Foreign | Foreign | UNITED STATES FEDERAL | UNITED STATES FEDERAL | Foreign | Foreign | UNITED STATES FEDERAL | Foreign | State taxes | UNITED STATES FEDERAL | Foreign | State taxes | ||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | ' | ' | ' | ' | ' | ' | ' | $1,295,000 | $1,123,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued product warranties | ' | ' | ' | ' | ' | ' | ' | 3,069,000 | 3,099,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory basis differences | ' | ' | ' | ' | ' | ' | ' | 11,421,000 | 9,225,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued liabilities | ' | ' | ' | ' | ' | ' | ' | 8,987,000 | 7,206,000 | 4,504,000 | 0 | 7,624,000 | 6,033,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue | ' | ' | ' | ' | ' | ' | ' | 1,775,000 | 2,205,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carry-forwards | ' | ' | ' | ' | ' | ' | ' | 7,449,000 | 8,085,000 | ' | ' | 6,143,000 | 11,588,000 | 760,000 | 8,119,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit carry-forwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,391,000 | 7,034,000 | 0 | 3,590,000 | ' | ' | ' | ' | 2,922,000 | ' | ' | ' | ' | ' | ' | ' |
Domestic depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,455,000 | -7,222,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplemental Executive Retirement Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,198,000 | 7,491,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,239,000 | 13,745,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -14,450,000 | -15,999,000 | 0 | -1,259,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | -1,024,000 | -1,025,000 | 913,000 | 1,042,000 | 1,416,000 | 4,018,000 | 16,000 | -78,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance | -13,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,999,000 | -4,837,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes, net | 38,389,000 | 30,960,000 | ' | ' | ' | 38,389,000 | 30,960,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes, net | 17,883,000 | 32,223,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,883,000 | 32,223,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,418,000 | 3,196,000 | ' | ' | ' | ' | ' | ' |
Foreign intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,528,000 | -23,597,000 | ' | ' | ' | ' | ' | ' |
Foreign net operating loss carry-forwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,930,000 | 5,336,000 | ' | ' | ' | ' | ' | ' |
Foreign other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 461,000 | 504,000 | ' | ' | ' | ' | ' | ' |
Valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,457,000 | -4,510,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes | 12,255,000 | 19,071,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12,254,000 | -19,071,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carry-forwards | ' | ' | 39,800,000 | 101,500,000 | 75,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards, Expiration Year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2018 | '2018 | '2018 | '2031 | '2033 | '2033 |
Net deferred tax assets | 44,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative amount of earnings upon which United States income taxes have not been provided | $799,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details_3
Income Taxes (Details 3) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure - Income Taxes - Additional Information [Abstract] | ' | ' | ' |
Statutory federal tax rate | 35.00% | 35.00% | 35.00% |
Foreign rate differential | -11.60% | -10.40% | -3.80% |
Foreign, federal and state income tax credits | -2.20% | -2.70% | -2.90% |
State taxes | 1.00% | 0.30% | 2.20% |
Non-deductible expenses | 0.50% | 0.70% | -1.20% |
Other | 0.00% | -0.10% | -0.90% |
Effective tax rate | 22.70% | 22.80% | 28.40% |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Balance, beginning of year | $35,143,000 | $29,200,000 | $30,949,000 |
Increases related to current year tax positions | 979,000 | 7,220,000 | 1,225,000 |
Increases related to prior year tax positions | 714,000 | 1,559,000 | 4,192,000 |
Decreases related to prior year tax positions | -2,736,000 | -343,000 | -4,608,000 |
Lapse of statute of limitations | -2,012,000 | -1,887,000 | -2,558,000 |
Settlements | -2,555,000 | -606,000 | 0 |
Balance, end of year | 29,533,000 | 35,143,000 | 29,200,000 |
Unrecognized tax benefits which would affect the effective tax rate if recognized | 29,500,000 | ' | ' |
Accrued interest and penalties | 2,600,000 | ' | ' |
Accrued interest and penalties net of federal and state benefits | $2,500,000 | ' | ' |
Income_Taxes_Details_5
Income Taxes (Details 5) | 12 Months Ended |
Dec. 31, 2013 | |
United States Federal | Maximum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2012 |
State of California | Minimum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2008 |
State of California | Maximum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2012 |
MASSACHUSETTS | Minimum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2011 |
MASSACHUSETTS | Maximum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2012 |
OREGON | Maximum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2012 |
SWEDEN | Minimum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2008 |
SWEDEN | Maximum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2012 |
UNITED KINGDOM | Minimum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2007 |
UNITED KINGDOM | Maximum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2012 |
BELGIUM | Minimum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2011 |
BELGIUM | Maximum | ' |
Income Tax Examination [Line Items] | ' |
Tax years open to examination by major taxing jurisdictions | '2012 |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Shares | ' | ' |
Outstanding at December 31, 2012 | 6,642 | ' |
Granted | 1,029 | ' |
Exercised | -325 | ' |
Forfeited | -8 | ' |
Outstanding at December 31, 2013 | 7,338 | 6,642 |
Exercisable at December 31, 2013 | 5,973 | ' |
Vested and expected to vest at December 31, 2013 | 7,270 | ' |
Weighted-Average Exercise Price | ' | ' |
Outstanding at December 31, 2012 | $21.64 | ' |
Granted | $24.58 | ' |
Exercised | $14.22 | ' |
Forfeited | $21.40 | ' |
Outstanding at December 31, 2013 | $22.38 | $21.64 |
Exercisable at December 31, 2013 | $21.82 | ' |
Vested and expected to vest at December 31, 2013 | $22.36 | ' |
Weighted-Average Remaining Contractual Term (in years) | ' | ' |
Outstanding at December 31, 2012 | '4 years 7 months 6 days | '4 years 8 months 12 days |
Outstanding at December 31, 2013 | '4 years 7 months 6 days | '4 years 8 months 12 days |
Exercisable at December 31, 2013 | '3 years 7 months 6 days | ' |
Vested and expected to vest at December 31, 2013 | '4 years 7 months 6 days | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding at December 31, 2013 | $61,036 | ' |
Exercisable at December 31, 2013 | 53,284 | ' |
Vested and expected to vest at December 31, 2013 | $60,649 | ' |
Stockbased_Compensation_Detail1
Stock-based Compensation (Details 2) (Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares of common stock reserved for future issuance under all of the stock incentive plans | 12,080,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' |
Outstanding at December 31, 2012 | 2,372,000 |
Granted | 1,180,000 |
Vested and distributed | -566,000 |
Forfeited | -198,000 |
Outstanding at December 31, 2013 | 2,788,000 |
Weighted Average Grant-Date Fair Value | ' |
Outstanding at December 31, 2012 | $24.59 |
Granted | $23.93 |
Vested and distributed | $26.71 |
Forfeited | $24.03 |
Outstanding at December 31, 2013 | $21.16 |
Stockbased_Compensation_Detail2
Stock-based Compensation (Details 3) (Employee Stock Purchase Plan (ESPP)) | 12 Months Ended |
Dec. 31, 2013 | |
Employee Stock Purchase Plan (ESPP) | ' |
Shares of common stock reserved for future issuance under all of the stock incentive plans | 3,630,000 |
Discount from fair market value of the stock | 85.00% |
Shares of common stock reserved for issuance under the ESPP | 5,000,000 |
Number of common stock shares issued | 223,000 |
Other_Employee_Benefit_Plans_O
Other Employee Benefit Plans Other Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
401(k) matching contributions | $4.90 | $5.80 | $7.50 |
Pension liability | $3.40 | $8.10 | ' |
Other_Employee_Benefit_Plans_O1
Other Employee Benefit Plans Other Employee Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' | ' |
Net earnings (loss) | $2,665 | $448 | ($1,410) |
Prior service cost | 296 | 297 | 297 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | 2,961 | 745 | -1,113 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ' | ' | ' |
Net loss | -1,836 | -4,501 | ' |
Prior service cost | -330 | -626 | ' |
Total recognized in AOCI | ($2,166) | ($5,127) | ' |
Other_Employee_Benefit_Plans_O2
Other Employee Benefit Plans Other Employee Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at January 1 | $24,932 | $23,979 | ' |
Service costs | 254 | 267 | 205 |
Interest costs | 883 | 936 | 1,047 |
Actuarial loss (gain) | -296 | -158 | ' |
Benefits paid | -13,292 | -417 | ' |
Foreign currency exchange changes | 70 | 325 | ' |
Benefit obligation at December 31 | 12,551 | 24,932 | 23,979 |
Fair value of plan assets at December 31 | 0 | 0 | ' |
Unfunded status at December 31 | 12,551 | 24,932 | ' |
Amounts recognized in the Consolidated Balance Sheets: | ' | ' | ' |
Current liabilities | 383 | 409 | ' |
Non-current liabilities | $12,168 | $24,523 | ' |
Supplemental Executive Retirement Plan (SERP) | ' | ' | ' |
Net periodic benefit cost: | ' | ' | ' |
Discount rate | 3.75% | 4.00% | ' |
Rate of increase in compensation levels | 3.00% | 5.00% | ' |
Funded status and projected benefit obligation: | ' | ' | ' |
Discount rate | 4.75% | 3.75% | ' |
Rate of increase in compensation levels | 3.00% | 3.00% | ' |
Defined benefit pension plan for employees outside the United States | ' | ' | ' |
Net periodic benefit cost: | ' | ' | ' |
Discount rate | 3.50% | 2.75% | ' |
Funded status and projected benefit obligation: | ' | ' | ' |
Discount rate | 3.50% | 2.75% | ' |
Other_Employee_Benefit_Plans_D
Other Employee Benefit Plans (Details 4) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | ' |
2014 | $382 |
2015 | 397 |
2016 | 393 |
2017 | 391 |
2018 | 376 |
Five years thereafter | 13,881 |
Total expected future benefit payments | $15,820 |
Other_Employee_Benefit_Plans_O3
Other Employee Benefit Plans Other Employee Benefit Plans (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Service costs | $254 | $267 | $205 |
Interest costs | 883 | 936 | 1,047 |
Net amortization and deferral | 1,111 | 1,205 | 903 |
Settlement loss | 3,305 | 0 | 0 |
Net periodic pension costs | 5,553 | 2,408 | 2,155 |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | ' | ' | ' |
Net loss | 107 | ' | ' |
Net prior service cost | 160 | ' | ' |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | $267 | ' | ' |
Operating_Segments_and_Related2
Operating Segments and Related Information Operating Segments and Related Information (Details) | 12 Months Ended |
Dec. 31, 2013 | |
operating_segments | |
Segment Reporting Information [Line Items] | ' |
Business divisions | 2 |
Commercial Systems division | ' |
Segment Reporting Information [Line Items] | ' |
Operating segments | 2 |
Government Systems division | ' |
Segment Reporting Information [Line Items] | ' |
Operating segments | 3 |
Operating_Segments_and_Related3
Operating Segments and Related Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $400,319 | $358,141 | $389,329 | $348,583 | $386,385 | $332,230 | $338,291 | $348,452 | $1,496,372 | $1,405,358 | $1,544,062 |
Intersegment revenue | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Earnings (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 240,743 | 303,330 | 313,195 |
Thermal Vision and Measurement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 727,939 | 628,019 | 660,256 |
Intersegment revenue | ' | ' | ' | ' | ' | ' | ' | ' | 16,449 | 15,204 | 18,553 |
Earnings (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 161,307 | 171,280 | 194,674 |
Raymarine | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 163,200 | 158,183 | 171,489 |
Intersegment revenue | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 7 | 7 |
Earnings (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 14,184 | 11,173 | 11,855 |
Surveillance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 456,490 | 486,355 | 577,552 |
Intersegment revenue | ' | ' | ' | ' | ' | ' | ' | ' | 25,420 | 23,013 | 32,266 |
Earnings (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 126,034 | 160,219 | 208,510 |
Detection | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 53,191 | 63,312 | 79,918 |
Intersegment revenue | ' | ' | ' | ' | ' | ' | ' | ' | 7,763 | 4,233 | 3,394 |
Earnings (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | -184 | 1,089 | -5,568 |
Integrated Systems | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 95,552 | 69,489 | 54,847 |
Intersegment revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,217 | 1,537 | 6,639 |
Earnings (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | -1,907 | 5,168 | 1,659 |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment revenue | ' | ' | ' | ' | ' | ' | ' | ' | 50,854 | 43,994 | 60,859 |
Other Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | ($58,691) | ($45,599) | ($97,935) |
Operating_Segments_and_Related4
Operating Segments and Related Information (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment assets (accounts receivable, net and inventories) | $631,292 | $714,243 |
Thermal Vision and Measurement | Continuing Operations | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment assets (accounts receivable, net and inventories) | 261,204 | 265,132 |
Raymarine | Continuing Operations | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment assets (accounts receivable, net and inventories) | 63,628 | 73,564 |
Surveillance | Continuing Operations | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment assets (accounts receivable, net and inventories) | 262,759 | 317,944 |
Detection | Continuing Operations | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment assets (accounts receivable, net and inventories) | 21,754 | 31,861 |
Integrated Systems | Continuing Operations | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Segment assets (accounts receivable, net and inventories) | $21,947 | $25,742 |
Operating_Segments_and_Related5
Operating Segments and Related Information (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $400,319 | $358,141 | $389,329 | $348,583 | $386,385 | $332,230 | $338,291 | $348,452 | $1,496,372 | $1,405,358 | $1,544,062 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 755,640 | 717,841 | 803,423 |
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 370,800 | 337,163 | 382,388 |
Other Geographic Region [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $369,932 | $350,354 | $358,251 |
Operating_Segments_and_Related6
Operating Segments and Related Information (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Long-lived assets | $1,015,745 | $993,186 |
United States | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Long-lived assets | 600,261 | 584,623 |
Europe [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Long-lived assets | 359,444 | 353,800 |
Other Geographic Region [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Long-lived assets | $56,040 | $54,763 |
Operating_Segments_and_Related7
Operating Segments and Related Information (Details 6) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue | $400,319 | $358,141 | $389,329 | $348,583 | $386,385 | $332,230 | $338,291 | $348,452 | $1,496,372 | $1,405,358 | $1,544,062 |
United States government | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $354,902 | $373,540 | $444,882 |
Business_Acquisitions_Business1
Business Acquisitions Business Acquisitions (Detail) (USD $) | Dec. 31, 2013 | Apr. 24, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | |||
Lorex Technology Inc. [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Cash acquired | $1,170 | ' | ' |
Accounts receivable, net | 10,183 | ' | ' |
Inventory | 13,967 | ' | ' |
Property and Equipment | 1,049 | ' | ' |
Other assets | 3,004 | ' | ' |
Liabilities | -10,252 | ' | ' |
Net tangible assets | 19,121 | ' | ' |
Net deferred taxes | -4,171 | ' | ' |
Identifiable intangible assets | 15,100 | ' | ' |
Goodwill | 31,121 | ' | ' |
Purchase price | 61,171 | ' | ' |
Traficon International NV | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Cash acquired | 181 | ' | ' |
Accounts receivable, net | 6,435 | ' | ' |
Inventory | 2,853 | ' | ' |
Property and Equipment | 179 | ' | ' |
Other assets | 657 | ' | ' |
Liabilities | -5,248 | ' | ' |
Net tangible assets | 5,057 | ' | ' |
Net deferred taxes | -6,903 | ' | ' |
Identifiable intangible assets | 20,102 | ' | ' |
Goodwill | 30,107 | ' | ' |
Purchase price | 48,363 | 2,100 | 46,300 |
DigitalOptics Charlotte [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Inventory | 741 | ' | ' |
Property and Equipment | 9,246 | ' | ' |
Net tangible assets | 9,987 | ' | ' |
Identifiable intangible assets | 2,520 | ' | ' |
Goodwill | 2,401 | ' | ' |
Purchase price | $14,908 | ' | ' |
Business_Acquisitions_Details_
Business Acquisitions (Details 1) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Lorex Technology Inc. [Member] | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | $15,100 |
Traficon International NV | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | 20,102 |
Marine & Remote Sensing Solutions [Member] | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | 375 |
DigitalOptics Charlotte [Member] | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | 2,520 |
Patented Technology [Member] | Traficon International NV | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | 5,951 |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Patented Technology [Member] | DigitalOptics Charlotte [Member] | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | 2,000 |
Finite-Lived Intangible Asset, Useful Life | '12 years |
Order or Production Backlog [Member] | Traficon International NV | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | 1,852 |
Finite-Lived Intangible Asset, Useful Life | '1 year 6 months |
Order or Production Backlog [Member] | DigitalOptics Charlotte [Member] | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | 150 |
Finite-Lived Intangible Asset, Useful Life | '2 years |
Trade Names [Member] | Lorex Technology Inc. [Member] | ' |
Business Acquisition [Line Items] | ' |
Indefinite-lived intangible asset | 6,800 |
Customer relationships | Lorex Technology Inc. [Member] | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | 8,300 |
Finite-Lived Intangible Asset, Useful Life | '7 years |
Customer relationships | Traficon International NV | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | 12,299 |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Customer relationships | DigitalOptics Charlotte [Member] | ' |
Business Acquisition [Line Items] | ' |
Finite-lived intangible asset | $370 |
Finite-Lived Intangible Asset, Useful Life | '2 years 6 months |
Business_Acquisitions_Business2
Business Acquisitions Business Acquisitions (Details textual) (USD $) | Dec. 31, 2013 | Apr. 24, 2013 | Dec. 28, 2012 |
Lorex Technology Inc. [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Purchase price | $61,171,000 | ' | ' |
Net tangible assets | 19,121,000 | ' | ' |
Excess purchase price | 42,000,000 | ' | ' |
Finite-lived intangible asset | 15,100,000 | ' | ' |
Goodwill | 31,121,000 | ' | ' |
Goodwill, Expected Tax Deductible Amount | 0 | ' | ' |
Traficon International NV | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Purchase price | 48,363,000 | 2,100,000 | 46,300,000 |
Net tangible assets | 5,057,000 | ' | ' |
Excess purchase price | 41,000,000 | ' | ' |
Finite-lived intangible asset | 20,102,000 | ' | ' |
Goodwill | 30,107,000 | ' | ' |
Goodwill, Expected Tax Deductible Amount | 0 | ' | ' |
Marine & Remote Sensing Solutions [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Purchase price | 3,200,000 | ' | ' |
Finite-lived intangible asset | 375,000 | ' | ' |
Goodwill | 2,500,000 | ' | ' |
DigitalOptics Charlotte [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Purchase price | 14,908,000 | ' | ' |
Net tangible assets | 9,987,000 | ' | ' |
Finite-lived intangible asset | 2,520,000 | ' | ' |
Goodwill | 2,401,000 | ' | ' |
Goodwill, Expected Tax Deductible Amount | $0 | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) | 3 Months Ended |
Jun. 30, 2012 | |
business_units | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Number of business units sold | 2 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 25, 2013 | Feb. 28, 2011 |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock authorized to be repurchased, number of shares | ' | ' | ' | ' | 25,000,000 | 20,000,000 |
Common stock repurchased, value | ' | $162,078 | $214,195 | $160,669 | ' | ' |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 19,012,000 | 19,012,000 | ' | ' | ' | ' |
Common stock dividends, paid per share | $0.09 | ' | $0.07 | $0.06 | ' | ' |
Common stock dividends, total cash paid | ' | 51,404 | 42,450 | 38,037 | ' | ' |
Payments of Ordinary Dividends, Common Stock | ' | 51,404 | 42,450 | 38,037 | ' | ' |
Common Stock and Additional Paid-in Capital | ' | ' | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock repurchased, shares | ' | 5,988,000 | 10,466,000 | 6,135,000 | ' | ' |
Common stock repurchased, value | ' | 162,078 | 214,195 | 160,669 | ' | ' |
Retained Earnings | ' | ' | ' | ' | ' | ' |
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock dividends, total cash paid | ' | $51,404 | $42,450 | $38,037 | ' | ' |
Restructuring_Costs_Restructur2
Restructuring Costs Restructuring Costs (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | $25,832 | $2,000 | $0 |
Total COGS and SGA | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 27,521 | 2,000 | ' |
Thermal Vision and Measurement | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 17,370 | 0 | ' |
Raymarine | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 361 | 0 | ' |
Surveillance | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 3,598 | 0 | ' |
Detection | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 4,222 | 2,000 | ' |
Integrated Systems | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 1,761 | 0 | ' |
Other Segments [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | $209 | $0 | ' |
Restructuring_Costs_Restructur3
Restructuring Costs Restructuring Costs (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | $25,832 | $2,000 | $0 |
Cost of Goods Sold | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 1,689 | 0 | ' |
Selling, general and administrative | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 25,832 | 2,000 | ' |
Total COGS and SGA | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | $27,521 | $2,000 | ' |
Restructuring_Costs_Restructur4
Restructuring Costs Restructuring Costs (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | $25,832 | $2,000 | $0 |
Total COGS and SGA | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 27,521 | 2,000 | ' |
Utilization | -5,660 | -600 | ' |
Restructuring Reserve | 21,861 | ' | ' |
Total COGS and SGA | Employee Severance [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 19,866 | ' | ' |
Utilization | -1,675 | ' | ' |
Restructuring Reserve | 18,191 | ' | ' |
Total COGS and SGA | Asset write-down [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 1,689 | ' | ' |
Utilization | -1,689 | ' | ' |
Restructuring Reserve | 0 | ' | ' |
Total COGS and SGA | Facility Exit [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring expenses | 5,966 | ' | ' |
Utilization | -2,296 | ' | ' |
Restructuring Reserve | $3,670 | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Dividend Declared [Member], USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 07, 2014 |
Dividend Declared [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Dividends Payable, Date Declared | 7-Feb-14 | ' |
Quarterly dividend, value per share | ' | $0.10 |
Quarterly dividend, date to be paid | 7-Mar-14 | ' |
Quarterly dividend, date of record | 19-Feb-14 | ' |
Quarterly dividend, amount declared | $14.10 | ' |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
20-May-11 | Oct. 27, 2010 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenue | ' | ' | $400,319,000 | $358,141,000 | $389,329,000 | $348,583,000 | $386,385,000 | $332,230,000 | $338,291,000 | $348,452,000 | $1,496,372,000 | $1,405,358,000 | $1,544,062,000 | ||||
Gross profit | ' | ' | 190,092,000 | 172,890,000 | 190,041,000 | 183,987,000 | 205,375,000 | [1] | 173,665,000 | [1] | 173,417,000 | [1] | 182,727,000 | [1] | 737,010,000 | 735,184,000 | 829,319,000 |
Earnings from continuing operations | ' | ' | ' | ' | ' | ' | 78,177,000 | 55,949,000 | 42,405,000 | 48,825,000 | 177,015,000 | 225,356,000 | 222,652,000 | ||||
(Loss) income from discontinued operations | ' | ' | ' | ' | ' | ' | -916,000 | -44,000 | -1,312,000 | -686,000 | 0 | -2,958,000 | -1,178,000 | ||||
Net earnings | ' | ' | 28,735,000 | 46,486,000 | 50,158,000 | 51,636,000 | 77,261,000 | 55,905,000 | 41,093,000 | 48,139,000 | 177,015,000 | 222,398,000 | 221,474,000 | ||||
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Continuing operations | ' | ' | ' | ' | ' | ' | $0.53 | $0.37 | $0.28 | $0.32 | $1.24 | $1.49 | $1.41 | ||||
Discontinued operations | ' | ' | ' | ' | ' | ' | ($0.01) | $0 | ($0.01) | $0 | $0 | ($0.02) | ($0.01) | ||||
Basic earnings per share | ' | ' | $0.20 | $0.33 | $0.35 | $0.36 | $0.52 | $0.37 | $0.27 | $0.31 | $1.24 | $1.47 | $1.40 | ||||
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Continuing operations | ' | ' | ' | ' | ' | ' | $0.52 | $0.37 | $0.27 | $0.31 | $1.22 | $1.47 | $1.38 | ||||
Discontinued operations | ' | ' | ' | ' | ' | ' | ($0.01) | $0 | ($0.01) | $0 | $0 | ($0.02) | ($0.01) | ||||
Diluted earnings per share | ' | ' | $0.20 | $0.32 | $0.35 | $0.35 | $0.52 | $0.37 | $0.27 | $0.31 | $1.22 | $1.45 | $1.38 | ||||
Litigation settlement payment | $39,000,000 | $3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Certain expenses have been reclassified to conform to the presentation for the quarterly data of 2013. |