Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Apr. 28, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | FLIR SYSTEMS INC | ||
Entity Central Index Key | 354,908 | ||
Trading Symbol | FLIR | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 136,455,705 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4,212,638,793 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 406,814 | $ 379,472 |
Cost of goods sold | 215,493 | 201,782 |
Gross profit | 191,321 | 177,690 |
Operating expenses: | ||
Research and development | 41,983 | 37,280 |
Selling, general and administrative | 90,252 | 83,033 |
Total operating expenses | 132,235 | 120,313 |
Earnings from operations | 59,086 | 57,377 |
Interest expense | 4,453 | 3,447 |
Interest income | (271) | (260) |
Other income, net | (660) | (1,430) |
Earnings before income taxes | 55,564 | 55,620 |
Income tax provision | 12,993 | 54,495 |
Net earnings | $ 42,571 | $ 1,125 |
Net earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 0.31 | $ 0.01 |
Diluted earnings per share (in dollars per share) | $ 0.31 | $ 0.01 |
Weighted Average Number of Shares Outstanding, Basic | 136,359 | 137,496 |
Weighted Average Number of Shares Outstanding, Diluted | 138,239 | 138,779 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 42,571 | $ 1,125 |
Other comprehensive income (loss), net of tax: | ||
Fair value adjustment on interest rate swap contracts | 187 | (669) |
Unealized gain on available-for-sale investments | (1) | 0 |
Foreign currency translation adjustments | 13,202 | 23,361 |
Total other comprehensive income | 13,388 | 22,692 |
Comprehensive income | $ 55,959 | $ 23,817 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 397,436 | $ 361,349 |
Accounts receivable, net | 308,740 | 352,020 |
Inventories | 386,058 | 371,371 |
Prepaid expenses and other current assets | 83,926 | 79,917 |
Total current assets | 1,176,160 | 1,164,657 |
Property and equipment, net | 272,857 | 271,785 |
Deferred income taxes, net | 45,321 | 45,243 |
Goodwill | 896,436 | 801,406 |
Intangible assets, net | 193,099 | 168,460 |
Other assets | 46,522 | 168,155 |
Total assets | 2,630,395 | 2,619,706 |
Current liabilities: | ||
Accounts payable | 110,013 | 114,225 |
Deferred revenue | 33,989 | 34,420 |
Accrued payroll and related liabilities | 51,140 | 52,874 |
Accrued product warranties | 16,642 | 17,476 |
Advance payments from customers | 26,830 | 26,019 |
Accrued expenses | 28,886 | 34,022 |
Accrued income taxes | 48,497 | 51,017 |
Other current liabilities | 10,178 | 16,659 |
Current portion, long-term debt | 15,000 | 15,000 |
Total current liabilities | 341,175 | 361,712 |
Long-term debt | 494,737 | 501,921 |
Deferred income taxes | 2,479 | 2,331 |
Accrued income taxes | 9,654 | 9,643 |
Pension and other long-term liabilities | 62,781 | 65,773 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at March 31, 2017, and December 31, 2016 | 0 | 0 |
Common stock, $0.01 par value, 500,000 shares authorized, 136,438 and 136,334 shares issued at March 31, 2017, and December 31, 2016, respectively, and additional paid-in capital | 17,879 | 12,139 |
Retained earnings | 1,854,253 | 1,832,138 |
Accumulated other comprehensive loss | (152,563) | (165,951) |
Total shareholders’ equity | 1,719,569 | 1,678,326 |
Total liabilities and shareholders' equity | $ 2,630,395 | $ 2,619,706 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
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 | 136,438 | 137,629 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH PROVIDED BY OPERATING ACTIVITIES: | ||
Net earnings | $ 42,571 | $ 1,125 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 17,031 | 13,939 |
Deferred income taxes | 192 | (227) |
Stock-based compensation arrangements | 6,246 | 6,088 |
Other, net | (3,742) | 5,807 |
Increase (decrease) in cash, net of acquisitions, resulting from changes in: | ||
Accounts receivable | 44,845 | 28,845 |
Inventories | (12,789) | (2,090) |
Prepaid expenses | (2,437) | (3,675) |
Other assets | 9,633 | (4,542) |
Accounts payable | (4,463) | (33,669) |
Deferred revenue | (501) | 1,354 |
Accrued payroll and other liabilities | (14,236) | (22,877) |
Accrued income taxes | (4,115) | 57,188 |
Pension & other long term liabilities | (3,108) | (1,320) |
Net cash provided by operating activities | 75,127 | 45,946 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property and equipment | (13,621) | (9,992) |
Proceeds from sale of assets | 27 | 4,875 |
Net cash used by investing activities | (13,594) | (5,117) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of long-term debt | (7,500) | (3,750) |
Dividends paid | (20,456) | (16,507) |
Proceeds from shares issued pursuant to stock-based compensation plans | 1,002 | 3,989 |
Tax paid for net share exercises and issuance of vested restricted stock units | (1,843) | (28) |
Other financing activities | (1) | 3 |
Net cash used by financing activities | (28,798) | (16,293) |
Effect of exchange rate changes on cash | 3,352 | 13,292 |
Net increase in cash and cash equivalents | 36,087 | 37,828 |
Cash and cash equivalents, beginning of year | 361,349 | 472,785 |
Cash and cash equivalents, end of year | $ 397,436 | $ 510,613 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | The accompanying consolidated financial statements of FLIR Systems, Inc. and its consolidated subsidiaries (the “Company”) are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, these statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s consolidated financial position and results of operations for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . The accompanying consolidated financial statements include the accounts of FLIR Systems, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the year ending December 31, 2017 . Recently Adopted Accounting Pronouncements Effective January 1, 2017, the Company adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). The standard update simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory withholding requirements, as well as classification in the Consolidated Statements of Cash Flows. As a result of the adoption, on a prospective basis, the Company recognized $0.8 million of excess tax benefits from stock-based compensation as a discrete item in income tax provision for the three months ended March 31, 2017. Historically, these amounts were recorded as additional paid-in capital. Upon adoption, the Company elected to apply the change retrospectively to the Consolidated Statement of Cash Flows which resulted in a reclassification of excess tax benefits from stock-based compensation of $1.0 million from cash flows from financing activities to cash flows from operating activities for the three months ended March 31, 2016. Additionally, less than $0.1 million cash paid to satisfy withholding requirements for net settlement of restricted stock unit shares vested and stock options exercised has been reclassified from cash flows from operating activities to cash flows from financing activities to conform to the presentation required by the new standard in the Consolidated Statement of Cash Flows for the three months ended March 31, 2016. ASU 2016-09 also requires excess tax benefits and deficiencies to be excluded from the assumed future proceeds in the calculation of diluted shares. This change resulted in an increase in diluted weighted average shares outstanding of 229,000 shares for the three months ended March 31, 2017. The Company elected not to change its policy on accounting for forfeitures and will continue to estimate a requisite forfeiture rate. Additional amendments to the accounting for income taxes and minimum statutory withholding requirements had no impact on the Company's results of operations. Reclassifications The Company made certain reclassifications to the prior years' financial statements and notes to the consolidated financial statements to conform them to the presentation as of and for the three months ended March 31, 2017 . These reclassifications had no effect on consolidated financial position, net earnings, shareholders' equity, or net cash flows for any of the periods presented. |
Stock-based compensation
Stock-based compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [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 non-vested stock awards (referred to as restricted stock unit awards) granted under two plans: 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 2002 Plan but previously granted awards under the 2002 Plan remain outstanding. The Company has granted time-based options, time-based restricted stock unit awards, market-based restricted stock unit awards and performance-based restricted stock unit awards. 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 component company at the 60th percentile level in the S&P 500 Index over a three-year period. Performance-based restricted stock unit awards may be earned based upon the Company's return on invested capital over a three-year period. Shares vested under the performance-based restricted stock unit awards and the market-based restricted stock unit awards must be held by the participant for a period of one year from the vest date. 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 ESPP provides for six-month offerings commencing on May 1 and November 1 of each year with purchases on April 30 and October 31 of each year. Shares purchased under the ESPP must be held by employees for a period of at least 18 months after the date of purchase. The following table sets forth the stock-based compensation expense recognized in the Consolidated Statements of Income (in thousands): Three Months Ended March 31, 2017 2016 Cost of goods sold $ 400 $ 615 Research and development 1,177 1,181 Selling, general and administrative 4,669 4,292 Stock-based compensation expense before income taxes $ 6,246 $ 6,088 Stock-based compensation expense capitalized in the Consolidated Balance Sheets is as follows (in thousands): March 31, 2017 2016 Capitalized in inventory $ 902 $ 790 As of March 31, 2017 , the Company had approximately $35.9 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of 1.80 years. |
Net Earnings Per Share Net Earn
Net Earnings Per Share Net Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Net 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): Three Months Ended March 31, 2017 2016 Numerator for earnings per share: Net earnings for basic and diluted earnings per share $ 42,571 $ 1,125 Denominator for earnings per share: Weighted average number of common shares outstanding 136,359 137,496 Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method 1,880 1,283 Diluted shares outstanding 138,239 138,779 The effect of stock-based compensation awards for the three months ended March 31, 2017 and 2016 that aggregated 18,000 and 271,000 shares, respectively, have been excluded for purposes of diluted earnings per share since the effect of their inclusion would have been anti-dilutive. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories in accordance with FASB ASC Topic 820, “Fair Value Measurements”: Level 1 – quoted prices in active markets for identical securities as of the reporting date; Level 2 – other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and observable market prices for identical instruments that are traded in less active markets; and Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value. The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The Company had $70.8 million and $8.3 million of cash equivalents at March 31, 2017 and December 31, 2016 , 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. 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 March 31, 2017 and 2016 are disclosed in Note 5, "Derivative Financial Instruments," and based on Level 2 inputs. The fair value of the Company’s senior unsecured notes as described in Note 13, "Long-Term Debt," is approximately $428.0 million based upon Level 2 inputs at March 31, 2017 . The fair value of the Company's credit agreements and borrowings, also described in Note 13, 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Foreign Currency Exchange Rate Risk In general, these gains and losses are offset in the Consolidated Statements of Income by the reciprocal gains and losses from cash settlement of the underlying assets or liabilities which originally gave rise to the exposure. The net amount of the gains and losses related to derivative instruments recorded in other income, net for the three months ended March 31, 2017 and 2016 were a loss of $4.3 million and gain of $7.0 million , respectively. The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands): March 31, December 31, 2017 2016 European euro $ 179,979 $ 156,352 Swedish kroner 80,790 48,555 Canadian dollar 55,044 15,645 British pound sterling 21,255 33,862 Brazilian real 8,102 2,747 Japanese yen 2,896 3,251 Australian dollar 2,034 1,653 Other 271 — $ 350,371 $ 262,065 At March 31, 2017 , the Company’s foreign currency forward contracts, in general, had maturities of three months or less. The carrying amount of the foreign exchange contracts included in the Consolidated Balance Sheets are as follows (in thousands): March 31, 2017 December 31, 2016 Prepaid Expenses and Other Current Assets Other Current Liabilities Prepaid Expenses and Other Current Assets Other Current Liabilities Foreign exchange contracts $ 636 $ 1,585 $ 2,369 $ 75 Interest Rate Swap Contracts At March 31, 2017 , the effective interest rate on the borrowings made from the Company's revolving credit facility was 2.37 percent . As of March 31, 2017 , the following interest rate swaps were outstanding: Contract Date Notional Amount (in millions) Fixed Rate Effective Date Maturity Date March 15, 2013 $ 45.0 1.02 % April 5, 2013 March 31, 2019 March 29, 2013 $ 45.0 0.97 % April 5, 2013 March 31, 2019 The net fair value carrying amount of the Company's interest rate swaps was $0.7 million , of which $0.2 million has been recorded to prepaid expenses and other current assets and $0.5 million has been recorded to other assets in the Consolidated Balance Sheet as of March 31, 2017 . |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable are net of an allowance for doubtful accounts of $ 6.3 million and $ 6.5 million at March 31, 2017 and December 31, 2016 , respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): March 31, December 31, 2017 2016 Raw material and subassemblies $ 204,730 $ 200,640 Work-in-progress 54,934 43,430 Finished goods 126,394 127,301 $ 386,058 $ 371,371 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are net of accumulated depreciation of $ 284.9 million and $ 275.1 million at March 31, 2017 and December 31, 2016 , respectively. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The carrying value of goodwill and the activity for the three months ended March 31, 2017 are as follows (in thousands): Balance, December 31, 2016 $ 801,406 Goodwill from acquisitions 91,945 Currency translation adjustments and other 3,085 Balance, March 31, 2017 $ 896,436 See Note 17, "Operating Segments and Related Information - Operating Segments, " of the Notes to the Consolidated Financial Statements for additional information on the carrying value of goodwill by operating segment at March 31, 2017 . See Note 18, "Business Acquisitions," of the Notes to the Consolidated Financial Statements for additional information on the addition of goodwill from acquisitions. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets are net of accumulated amortization of $ 85.2 million and $ 77.8 million at March 31, 2017 and December 31, 2016 , respectively. |
Credit Agreement
Credit Agreement | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Credit Agreements | Credit Agreement On February 8, 2011, the Company entered into a credit agreement with Bank of America, N.A., U.S. Bank National Association, JPMorgan Chase Bank N.A. and other lenders, as amended on April 5, 2013, October 27, 2015 and May 31, 2016 (the "Credit Agreement") which provides for a $500 million revolving line of credit. At March 31, 2017 , the Company had $90 million outstanding under its revolving credit facility pursuant to the Credit Agreement and had $16.5 million of letters of credit outstanding, which reduces the total available revolving credit under the Credit Agreement to $ 393.5 million . |
Accrued Product Warranties
Accrued Product Warranties | 3 Months Ended |
Mar. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Accrued Product Warranties | Accrued Product Warranties The following table summarizes the Company’s warranty liability and activity (in thousands): Three Months Ended March 31, 2017 2016 Accrued product warranties, beginning of period $ 20,845 $ 16,514 Amounts paid for warranty services (4,629 ) (4,139 ) Warranty provisions for products sold 3,709 4,734 Business acquisition — 40 Currency translation adjustments and other 46 78 Accrued product warranties, end of period $ 19,971 $ 17,227 Current accrued product warranties, end of period $ 16,642 $ 14,676 Long-term accrued product warranties, end of period $ 3,329 $ 2,551 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in thousands): March 31, December 31, 2017 2016 Unsecured notes $ 425,000 $ 425,000 Credit Agreement 90,000 97,500 Unamortized discounts and issuance costs of unsecured notes (5,263 ) (5,579 ) $ 509,737 $ 516,921 Current portion, long-term debt $ 15,000 $ 15,000 Long-term debt $ 494,737 $ 501,921 In June 2016, the Company issued $425 million aggregate principal amount of its 3.125 percent senior unsecured notes due June 15, 2021 (the “2016 Notes”). The net proceeds from the issuance of the 2016 Notes were approximately $421.0 million , after deducting underwriting discounts and offering expenses, which are being amortized over a period of five years . Interest on the 2016 Notes is payable semiannually in arrears on December 15 and June 15. The proceeds from the 2016 Notes were used to repay the principal amount of the notes issued in August 2011 and outstanding in July 2016 and are being used for other general corporate purposes, including working capital and capital expenditure needs, business acquisitions and repurchases of the Company’s common stock. On May 31, 2016, the Company repaid its term loan and drew down $105.0 million under the revolving credit facility. Interest on amounts outstanding under the revolving credit facility accrues at the one-month LIBOR rate plus the applicable margin for the amount outstanding and is paid monthly in arrears. See Note 5, "Derivative Financial Instruments - Interest Rate Swap Contracts ," of the Notes to the Consolidated Financial Statements for additional information on the effective interest rate on the revolving credit facility at March 31, 2017 . |
Shareholders' Equity (Notes)
Shareholders' Equity (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |
Stockholders' Equity | Shareholders’ Equity The following table summarizes the common stock and additional paid-in capital activity during the three months ended March 31, 2017 (in thousands): Common stock and additional paid-in capital, December 31, 2016 $ 12,139 Common stock issued pursuant to stock-based compensation plans, net (841 ) Stock-based compensation 6,581 Common stock and additional paid-in capital, March 31, 2017 $ 17,879 On March 10, 2017 , the Company paid a dividend of $0.15 per share on its outstanding common stock to the shareholders of record as of the close of business on February 24, 2017 . The total cash payments for dividends during the three months ended March 31, 2017 were $20.5 million . |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies FLIR Systems, Inc. and its subsidiary, FLIR Commercial Systems, Inc. (formerly known as Indigo Systems Corporation) (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 October 27, 2010, the FLIR Parties and Raytheon entered into a settlement agreement that resolved the patent infringement claims (the "Patent Claims") pursuant to which the FLIR Parties paid $3 million to Raytheon and entitles the FLIR Parties to certain license rights in the patents that were the subject of the Patent Claims. On October 28, 2014, a four-week trial began with respect to Raytheon's remaining claims of misappropriations of trade secrets and claims related to 31 alleged trade secrets. On November 24, 2014, a jury in the United States District Court for the Eastern District of Texas rejected Raytheon’s claims and determined that 27 of the alleged trade secrets were not in fact trade secrets and that neither of the FLIR Parties infringed any of the trade secrets claimed and awarded Raytheon no damages. On March 31, 2016 the United States District Court for the Eastern District of Texas issued a Final Judgment denying Raytheon’s claims and awarding FLIR court costs and denying each of Raytheon’s and FLIR’s Renewed Motions for Judgment as a Matter of Law and denying FLIR’s Amended Rule 54(d) Motion for Attorneys’ Fees and Costs Under the Texas Theft Liability Act. On April 29, 2016, Raytheon filed a Notice of Appeal to the United States Court of Appeals for the Federal Circuit of the denial by the United States District Court for the Eastern District of Texas of Raytheon’s Renewed Motion for Judgment as a Matter of Law, or in the Alternative, Motion for New Trial. On May 11, 2016, the FLIR Parties filed a Notice of Appeal to the United States Court of Appeals for the Federal Circuit of the Order of the United States District Court for the Eastern District of Texas Denying the FLIR Parties’ Amended Rule 54(d) Motion for Attorneys’ Fees and Costs under the Texas Theft Liability Act, the Order Denying the FLIR Parties’ Renewed Motion For Judgment as a Matter Of Law, and the Final Judgment to the extent it denied the FLIR Parties Attorneys’ Fees and Costs under the Texas Theft Liability Act. The matter remains ongoing and is subject to appeal and the Company is unable to estimate the amount or range of potential loss or recovery, if any, which might result if the final determination of this matter is favorable or unfavorable, but an adverse ruling on the merits of the original claims against the FLIR Parties, while remote, could be material. Note 15. Contingencies - (Continued) On October 22, 2014, the Company initially contacted the United States Department of State Office of Defense Trade Controls Compliance (“DDTC”), pursuant to International Traffic in Arms Regulation (“ITAR”) § 127.12(c), regarding the unauthorized export of technical data and defense services to dual and third country nationals in at least four facilities of the Company. On April 27, 2015, the Company submitted its initial report to DDTC regarding the details of the issues raised in the October 22, 2014 submission. DDTC subsequently notified the Company that it was considering administrative proceedings under Part 128 of ITAR and requested a tolling agreement, which the Company executed on June 16, 2015. On June 6, 2016, the Company executed a subsequent tolling agreement extending the tolling period for matters to be potentially included in an administrative proceeding for an additional 18 months until December 2017. DDTC continues its review and the Company is unable to reasonably estimate the time it may take to resolve the matter or the amount or range of potential loss, penalty or other government action, if any, that may be incurred in connection with this matter. However, an unfavorable outcome could result in fines and penalties, or loss, or modification of exporting privileges that could potentially be material to the financial condition, results of operations, and cash flows of the Company in and following the period in which such an outcome becomes estimable or known. In March 2016, the Company learned of potential quality concerns with respect to as many as 312 Level III and Level IV SkyWatch Surveillance Towers sold by FLIR and companies acquired by FLIR from 2002 through 2014. During the quarter ended September 30, 2016, the Company identified the cause of these quality issues and tested certain remedial solutions which may be required to repair the affected SkyWatch Towers. Testing of the remedial solution is ongoing. The Company has notified customers who purchased the affected SkyWatch Towers of the potential concerns and, as a precautionary measure, has also temporarily suspended production of all Level III and Level IV SkyWatch Towers pending the completion of its review and the implementation of any necessary remedial measures. While there still remains uncertainty related to estimating the costs associated with a potential remedy and number of units which may require such remedy, the Company currently estimates the range of potential loss to be between $2.5 million and $15 million . As no single amount within the range is a better estimate than any other amount within the range, the Company has recorded a liability of $2.5 million as of December 31, 2016. Factors underlying this estimated range of loss may change from time to time, and actual results may vary significantly from this estimate The Company is also subject to other legal and administrative proceedings, investigations, claims and litigation arising in the ordinary course of business not specifically identified above. In these identified matters and others not specifically identified, the Company makes a provision for a liability with respect to a matter when it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated for such matter. The Company believes it has recorded adequate provisions for any probable and estimable losses for matters in existence on the date hereof. While the outcome of each of these matters is currently not determinable, the Company does not expect that the ultimate resolution of any such matter will individually have a material adverse effect on the Company’s financial position, results of operations or cash flows. The costs to resolve all such matters may in the aggregate have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The provision for income taxes was as follows: Three Months Ended March 31, 2017 2016 Income tax provision $ 12,993 $ 54,495 Effective tax rate 23.4 % 98.0 % The effective tax rate for the three months ended March 31, 2017 is lower than the US Federal tax rate of 35 percent mainly due to the mix of lower foreign jurisdiction tax rates, the effect of federal, foreign and state tax credits and discrete adjustments. As of March 31, 2017 , the Company had approximately $53.5 million of unrecognized tax benefits, all of which would affect the Company’s effective tax rate if recognized. The Company anticipates approximately $40.2 million of its net unrecognized tax benefits will be recognized within 12 months as the result of settlements or effective settlements with various tax authorities, the closure of certain audits and the lapse of the applicable statute of limitations. Note 16. Income Taxes - (Continued) The Company classifies interest and penalties related to unrecognized tax benefits in the income tax provision. As of March 31, 2017 , the Company had $2.3 million of accrued interest and penalties related to unrecognized tax benefits that are recorded as current and non-current accrued income taxes on the Consolidated Balance Sheet. The Company currently has the following tax years open to examination by major taxing jurisdictions: Tax Years: United States Federal 2013 - 2015 State of California 2013 - 2015 State of Massachusetts 2013 - 2015 State of Oregon 2013 - 2015 Sweden 2012 - 2015 United Kingdom 2012 - 2015 Belgium 2011 - 2015 |
Operating Segments and Related
Operating Segments and Related Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments and Related Information | Operating Segments and Related Information Operating Segments The Company has six reportable operating segments as follows: Surveillance The Surveillance segment develops and manufactures enhanced imaging and recognition solutions for 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. Offerings include airborne, land, maritime, and man-portable multi-spectrum imaging systems, radars, lasers, imaging components, integrated multi-sensor system platforms, and services related to these systems. Instruments The Instruments segment develops and manufactures devices that image, measure, and assess thermal energy, gases, and other environmental elements for industrial, commercial, and scientific applications. Products include thermal imaging cameras, gas detection cameras, firefighting cameras, process automation cameras, and environmental test and measurement devices. Security The Security segment develops and manufactures cameras and video recording systems for use in commercial, critical infrastructure, and home security applications. Products include thermal and visible-spectrum cameras, digital and networked video recorders, and related software and accessories that enable the efficient and effective safeguarding of assets at all hours of the day and through adverse weather conditions. OEM & Emerging Markets The OEM & Emerging Markets segment develops and manufactures thermal and visible-spectrum imaging camera cores and components that are utilized by third parties to create thermal, industrial, and other types of imaging systems. The segment also develops and manufactures intelligent traffic monitoring and signal control systems as well as thermal imaging solutions for use by consumers in the smartphone and mobile devices markets. Maritime The Maritime segment develops and manufactures electronics and imaging instruments for the recreational and commercial maritime market. The segment provides a full suite of networked electronic systems including multi-function helm displays, navigational instruments, autopilots, radars, sonar systems, thermal and visible imaging systems, and communications equipment for boats of all sizes. Note 17. Operating Segments and Related Information—(Continued) Operating Segments - (Continued) Detection The Detection segment develops and manufactures sensor instruments and integrated platform solutions for the detection, identification, and suppression of chemical, biological, radiological, nuclear, and explosives threats for military force protection, homeland security, and commercial applications. The Company’s chief operating decision maker ("CODM"), its Chief Executive Officer, evaluates each of its segment’s performance and allocates resources based on revenue and segment operating income. Intersegment revenues are recorded at cost and are eliminated in consolidation. The Company and each of its segments employ consistent accounting policies. The following tables present revenue, operating income, and assets for the six segments. Operating income as reviewed by the CODM is revenue less cost of goods sold and operating expense, excluding general corporate expenses, acquisition costs, amortization of purchased intangible assets, amortization of acquisition-related inventory step-up, restructuring charges and executive transition costs. 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): Three Months Ended March 31, 2017 2016 Revenue—External Customers: Surveillance $ 118,729 $ 124,151 Instruments 77,855 79,418 Security 45,078 47,061 OEM & Emerging Markets 84,765 47,845 Maritime 48,550 51,720 Detection 31,837 29,277 $ 406,814 $ 379,472 Revenue—Intersegments: Surveillance $ 4,756 $ 4,224 Instruments 5,790 1,575 Security 3,126 2,473 OEM & Emerging Markets 9,170 8,176 Maritime 677 615 Detection — — Eliminations (23,519 ) (17,063 ) $ — $ — Segment operating income: Surveillance $ 26,365 $ 35,865 Instruments 21,146 19,981 Security 315 (2,169 ) OEM & Emerging Markets 24,357 10,686 Maritime 5,205 5,806 Detection 8,737 8,237 $ 86,125 $ 78,406 Note 17. Operating Segments and Related Information—(Continued) Operating Segments - (Continued) A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands): Three Months Ended March 31, 2017 2016 Consolidated segment operating income $ 86,125 $ 78,406 Unallocated corporate expenses (18,223 ) (16,624 ) Amortization of purchased intangible assets (6,736 ) (4,207 ) Amortization of acquisition-related inventory step-up (1,992 ) — Restructuring charges (88 ) (198 ) Consolidated earnings from operations $ 59,086 $ 57,377 Interest and non-operating expense, net (3,522 ) (1,757 ) Consolidated earnings before income taxes $ 55,564 $ 55,620 Unallocated corporate expenses include general corporate expenses, acquisition related costs and executive transition costs. March 31, December 31, 2017 2016 Segment assets (accounts receivable, net and inventories): Surveillance $ 269,646 $ 283,324 Instruments 111,800 114,681 Security 76,976 93,174 OEM & Emerging Markets 139,791 144,862 Maritime 73,619 61,494 Detection 22,966 25,856 $ 694,798 $ 723,391 March 31, December 31, 2017 2016 Segment goodwill: Surveillance $ 244,433 $ 152,383 Instruments 148,538 147,595 Security 103,844 102,983 OEM & Emerging Markets 253,074 252,647 Maritime 98,596 97,860 Detection 47,951 47,938 $ 896,436 $ 801,406 Note 17. Operating Segments and Related Information—(Continued) 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): Three Months Ended March 31, 2017 2016 United States $ 221,832 $ 194,283 Europe 83,271 84,410 Asia 53,924 43,825 Middle East/Africa 25,142 27,712 Canada/Latin America 22,645 29,242 $ 406,814 $ 379,472 Long-lived assets by significant geographic locations are as follows (in thousands): March 31, December 31, 2017 2016 (as reclassified) United States $ 686,546 $ 676,007 Europe 480,653 490,089 Other foreign 241,715 243,710 $ 1,408,914 $ 1,409,806 Major Customers Revenue derived from major customers is as follows (in thousands): Three Months Ended March 31, 2017 2016 United States government $ 116,235 $ 85,636 |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisitions Point Grey Research, Inc. On November 4, 2016, the Company closed a transaction to acquire the assets of Point Grey Research Inc. (“Point Grey”), a global leader in the development of advanced visible imaging cameras and solutions that are used in industrial automation systems, medical diagnostic equipment, people counting systems, intelligent traffic systems, military and defense products, and advanced mapping systems, for approximately $259.2 million in cash, subject to customary post-closing adjustments. The Company has performed a preliminary purchase price allocation which resulted in an allocation of $39.8 million to identifiable intangible assets and $183.7 million to goodwill which has been recorded in the Company’s OEM & Emerging Markets segment. The preliminary allocation of the purchase price for Point Grey is as follows (in thousands): Cash acquired $ 2,994 Other tangible assets and liabilities, net 35,127 Net deferred taxes (2,438 ) Identifiable intangible assets 39,800 Goodwill 183,678 Total purchase price $ 259,161 The allocation of the purchase price related to this acquisition is preliminary and is based on management’s judgments after evaluating several factors, including preliminary valuation assessments of tangible and intangible assets, and preliminary estimates of the fair value of liabilities assumed. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the valuation of the identifiable intangible assets, property and equipment, and certain other tangible assets and liabilities. The preliminary goodwill of $183.7 million represents future economic benefits expected to arise from synergies from combining operations and the ability of Point Grey to provide the Company domain knowledge and distribution channels in adjacent markets. In connection with the preliminary allocation of purchase price to the assets acquired and liabilities assumed, the Company identified certain intangible assets. The following table presents the acquired intangible assets, their preliminary estimated fair values, and preliminary estimated useful lives (in thousands, except years): Estimated Amount Developed technology 10 years $ 23,100 Customer relationships 7 years 13,200 Backlog 1 year 2,300 Non-Competition Agreements 5 years 1,000 Other n/a 200 $ 39,800 Acquisition-date identifiable intangible assets primarily consist of intangibles derived from developed technology, customer relationships, backlog, and non-competition agreements. Developed technology represents the economic advantage of having certain technologies in place that lower manufacturing and operating costs and drive higher margins. Customer relationships represents the relationships Point Grey has established in the OEM and people counting markets as of the date of the acquisition. Backlog represents “pre-sold” business at the date of acquisition, which provides positive earning streams post acquisition that exceed what is required to provide a return on the other assets employed. Non-competition agreements represent the economic benefit of having agreements with certain current and former employees and shareholders of Point Grey that restrict their ability to compete directly with the Company. The developed technology was valued using the income approach and relief from royalty method. Customer relationships and backlog were valued using the income approach and multi-period excess earnings method. Non-competition agreements were valued using the income approach and the with-and-without method. Note 18. Business Acquisitions - (Continued) Prox Dynamics, AS On November 30, 2016, the Company acquired 100% of the outstanding stock of Prox Dynamics AS (“Prox Dynamics”), a leading developer and manufacturer of nano-class unmanned aircraft systems ("UAS") for military and para-military intelligence, surveillance, and reconnaissance applications, for approximately $134.1 million in cash, subject to customary post-close adjustments. At December 31, 2016, the Company reported the net tangible assets of $11.3 million in the respective balance sheet accounts and the excess purchase price of $122.8 million in other long-term assets. During the three months ended March 31, 2017, the Company performed a preliminary purchase price allocation which resulted in an allocation of $31.4 million of identifiable intangible assets and $91.9 million of goodwill in conjunction with the Prox Dynamics acquisition, which has been recorded in the Company’s Surveillance business segment. The preliminary allocation of the purchase price for Prox Dynamics is as follows (in thousands): Cash acquired $ 11,706 Other tangible assets and liabilities, net (900 ) Identifiable intangible assets 31,400 Goodwill 91,882 Total purchase price $ 134,088 The allocation of the purchase price related to this acquisition is preliminary and is based on management’s judgments after evaluating several factors, including preliminary valuation assessments of tangible and intangible assets, and preliminary estimates of the fair value of liabilities assumed. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the valuation of the identifiable intangible assets, property and equipment, income taxes (including unrecognized tax benefits), and certain other tangible assets and liabilities. The preliminary goodwill of $91.9 million represents future economic benefits expected to arise from synergies from combining operations the ability of Prox Dynamics to provide the Company domain knowledge and distribution channels in adjacent markets. In connection with the preliminary allocation of purchase price to the assets acquired and liabilities assumed, the Company identified certain intangible assets. The following table presents the acquired intangible assets, their preliminary estimated fair values, and preliminary estimated useful lives (in thousands, except years): Estimated Amount Developed technology 8 years $ 23,400 Customer relationships 7 years 3,500 Patents 8 years 3,100 Trade name 8 years 1,400 $ 31,400 Acquisition-date identifiable intangible assets primarily consist of intangibles derived from developed technology, customer relationships, patents, and trade name. Developed technology and patents represent the economic advantage of having certain technologies in place that lower manufacturing and operating costs and drive higher margins. Customer relationships represents the relationships Prox Dynamics has established in the military and defense ministries of countries throughout the world. Trade name represents the "Black Hornet" name, which is well recognized within the industry and is known as a leading product within the nano-class UAS segment. The developed technology and customer relationships were valued using the income approach and multi-period excess earnings method. Patents and trade name were valued using the income approach and relief from royalty method. The acquisitions of Point Grey and Prox Dynamics are not significant as defined in Regulation S-X under the Securities Exchange Act of 1934, nor are they significant compared to the Company's overall results of operations. Consequently, no pro forma financial information is provided. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 20, 2017 , the Company’s Board of Directors declared a quarterly dividend of $0.15 per share on its common stock, payable on June 9, 2017 , to shareholders of record as of the close of business on May 26, 2017 . The total cash payment of this dividend will be approximately $20.5 million . |
Basis of Presentation and Sig26
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements Effective January 1, 2017, the Company adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). The standard update simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory withholding requirements, as well as classification in the Consolidated Statements of Cash Flows. As a result of the adoption, on a prospective basis, the Company recognized $0.8 million of excess tax benefits from stock-based compensation as a discrete item in income tax provision for the three months ended March 31, 2017. Historically, these amounts were recorded as additional paid-in capital. Upon adoption, the Company elected to apply the change retrospectively to the Consolidated Statement of Cash Flows which resulted in a reclassification of excess tax benefits from stock-based compensation of $1.0 million from cash flows from financing activities to cash flows from operating activities for the three months ended March 31, 2016. Additionally, less than $0.1 million cash paid to satisfy withholding requirements for net settlement of restricted stock unit shares vested and stock options exercised has been reclassified from cash flows from operating activities to cash flows from financing activities to conform to the presentation required by the new standard in the Consolidated Statement of Cash Flows for the three months ended March 31, 2016. ASU 2016-09 also requires excess tax benefits and deficiencies to be excluded from the assumed future proceeds in the calculation of diluted shares. This change resulted in an increase in diluted weighted average shares outstanding of 229,000 shares for the three months ended March 31, 2017. The Company elected not to change its policy on accounting for forfeitures and will continue to estimate a requisite forfeiture rate. Additional amendments to the accounting for income taxes and minimum statutory withholding requirements had no impact on the Company's results of operations. |
Reclassification | Reclassifications The Company made certain reclassifications to the prior years' financial statements and notes to the consolidated financial statements to conform them to the presentation as of and for the three months ended March 31, 2017 . These reclassifications had no effect on consolidated financial position, net earnings, shareholders' equity, or net cash flows for any of the periods presented. |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table sets forth the stock-based compensation expense recognized in the Consolidated Statements of Income (in thousands): Three Months Ended March 31, 2017 2016 Cost of goods sold $ 400 $ 615 Research and development 1,177 1,181 Selling, general and administrative 4,669 4,292 Stock-based compensation expense before income taxes $ 6,246 $ 6,088 Stock-based compensation expense capitalized in the Consolidated Balance Sheets is as follows (in thousands): March 31, 2017 2016 Capitalized in inventory $ 902 $ 790 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 6,246 | $ 6,088 |
Cost of Goods Sold [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expese | 400 | 615 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expese | 1,177 | 1,181 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expese | $ 4,669 | $ 4,292 |
Net Earnings Per Share Net Ea29
Net Earnings Per Share Net Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net 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): Three Months Ended March 31, 2017 2016 Numerator for earnings per share: Net earnings for basic and diluted earnings per share $ 42,571 $ 1,125 Denominator for earnings per share: Weighted average number of common shares outstanding 136,359 137,496 Assumed exercise of stock options and vesting of restricted stock awards, net of shares assumed reacquired under the treasury stock method 1,880 1,283 Diluted shares outstanding 138,239 138,779 |
Derivative Financial Instrume30
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional amounts of outstanding foreign currency forward contracts by currency | The table below presents the net notional amounts of the Company’s outstanding foreign currency forward contracts by currency (in thousands): March 31, December 31, 2017 2016 European euro $ 179,979 $ 156,352 Swedish kroner 80,790 48,555 Canadian dollar 55,044 15,645 British pound sterling 21,255 33,862 Brazilian real 8,102 2,747 Japanese yen 2,896 3,251 Australian dollar 2,034 1,653 Other 271 — $ 350,371 $ 262,065 The carrying amount of the foreign exchange contracts included in the Consolidated Balance Sheets are as follows (in thousands): March 31, 2017 December 31, 2016 Prepaid Expenses and Other Current Assets Other Current Liabilities Prepaid Expenses and Other Current Assets Other Current Liabilities Foreign exchange contracts $ 636 $ 1,585 $ 2,369 $ 75 As of March 31, 2017 , the following interest rate swaps were outstanding: Contract Date Notional Amount (in millions) Fixed Rate Effective Date Maturity Date March 15, 2013 $ 45.0 1.02 % April 5, 2013 March 31, 2019 March 29, 2013 $ 45.0 0.97 % April 5, 2013 March 31, 2019 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in thousands): March 31, December 31, 2017 2016 Raw material and subassemblies $ 204,730 $ 200,640 Work-in-progress 54,934 43,430 Finished goods 126,394 127,301 $ 386,058 $ 371,371 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying value of goodwill by reporting segment and the activity | The carrying value of goodwill and the activity for the three months ended March 31, 2017 are as follows (in thousands): Balance, December 31, 2016 $ 801,406 Goodwill from acquisitions 91,945 Currency translation adjustments and other 3,085 Balance, March 31, 2017 $ 896,436 |
Accrued Product Warranties (Tab
Accrued Product Warranties (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Summary of Warranty Liability and Activity | The following table summarizes the Company’s warranty liability and activity (in thousands): Three Months Ended March 31, 2017 2016 Accrued product warranties, beginning of period $ 20,845 $ 16,514 Amounts paid for warranty services (4,629 ) (4,139 ) Warranty provisions for products sold 3,709 4,734 Business acquisition — 40 Currency translation adjustments and other 46 78 Accrued product warranties, end of period $ 19,971 $ 17,227 Current accrued product warranties, end of period $ 16,642 $ 14,676 Long-term accrued product warranties, end of period $ 3,329 $ 2,551 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consists of the following (in thousands): March 31, December 31, 2017 2016 Unsecured notes $ 425,000 $ 425,000 Credit Agreement 90,000 97,500 Unamortized discounts and issuance costs of unsecured notes (5,263 ) (5,579 ) $ 509,737 $ 516,921 Current portion, long-term debt $ 15,000 $ 15,000 Long-term debt $ 494,737 $ 501,921 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |
Common stock and additional paid-in capital activity | The following table summarizes the common stock and additional paid-in capital activity during the three months ended March 31, 2017 (in thousands): Common stock and additional paid-in capital, December 31, 2016 $ 12,139 Common stock issued pursuant to stock-based compensation plans, net (841 ) Stock-based compensation 6,581 Common stock and additional paid-in capital, March 31, 2017 $ 17,879 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
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 2013 - 2015 State of California 2013 - 2015 State of Massachusetts 2013 - 2015 State of Oregon 2013 - 2015 Sweden 2012 - 2015 United Kingdom 2012 - 2015 Belgium 2011 - 2015 |
Income Taxes Income Taxes (tabl
Income Taxes Income Taxes (table 2) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes was as follows: Three Months Ended March 31, 2017 2016 Income tax provision $ 12,993 $ 54,495 Effective tax rate 23.4 % 98.0 % |
Operating Segments and Relate38
Operating Segments and Related Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Operating segment information is as follows (in thousands): Three Months Ended March 31, 2017 2016 Revenue—External Customers: Surveillance $ 118,729 $ 124,151 Instruments 77,855 79,418 Security 45,078 47,061 OEM & Emerging Markets 84,765 47,845 Maritime 48,550 51,720 Detection 31,837 29,277 $ 406,814 $ 379,472 Revenue—Intersegments: Surveillance $ 4,756 $ 4,224 Instruments 5,790 1,575 Security 3,126 2,473 OEM & Emerging Markets 9,170 8,176 Maritime 677 615 Detection — — Eliminations (23,519 ) (17,063 ) $ — $ — Segment operating income: Surveillance $ 26,365 $ 35,865 Instruments 21,146 19,981 Security 315 (2,169 ) OEM & Emerging Markets 24,357 10,686 Maritime 5,205 5,806 Detection 8,737 8,237 $ 86,125 $ 78,406 Note 17. Operating Segments and Related Information—(Continued) Operating Segments - (Continued) A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands): Three Months Ended March 31, 2017 2016 Consolidated segment operating income $ 86,125 $ 78,406 Unallocated corporate expenses (18,223 ) (16,624 ) Amortization of purchased intangible assets (6,736 ) (4,207 ) Amortization of acquisition-related inventory step-up (1,992 ) — Restructuring charges (88 ) (198 ) Consolidated earnings from operations $ 59,086 $ 57,377 Interest and non-operating expense, net (3,522 ) (1,757 ) Consolidated earnings before income taxes $ 55,564 $ 55,620 Unallocated corporate expenses include general corporate expenses, acquisition related costs and executive transition costs. March 31, December 31, 2017 2016 Segment assets (accounts receivable, net and inventories): Surveillance $ 269,646 $ 283,324 Instruments 111,800 114,681 Security 76,976 93,174 OEM & Emerging Markets 139,791 144,862 Maritime 73,619 61,494 Detection 22,966 25,856 $ 694,798 $ 723,391 March 31, December 31, 2017 2016 Segment goodwill: Surveillance $ 244,433 $ 152,383 Instruments 148,538 147,595 Security 103,844 102,983 OEM & Emerging Markets 253,074 252,647 Maritime 98,596 97,860 Detection 47,951 47,938 $ 896,436 $ 801,406 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in thousands): Three Months Ended March 31, 2017 2016 Consolidated segment operating income $ 86,125 $ 78,406 Unallocated corporate expenses (18,223 ) (16,624 ) Amortization of purchased intangible assets (6,736 ) (4,207 ) Amortization of acquisition-related inventory step-up (1,992 ) — Restructuring charges (88 ) (198 ) Consolidated earnings from operations $ 59,086 $ 57,377 Interest and non-operating expense, net (3,522 ) (1,757 ) Consolidated earnings before income taxes $ 55,564 $ 55,620 Unallocated corporate expenses include general corporate expenses, acquisition related costs and executive transition costs. |
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): Three Months Ended March 31, 2017 2016 United States $ 221,832 $ 194,283 Europe 83,271 84,410 Asia 53,924 43,825 Middle East/Africa 25,142 27,712 Canada/Latin America 22,645 29,242 $ 406,814 $ 379,472 Long-lived assets by significant geographic locations are as follows (in thousands): March 31, December 31, 2017 2016 (as reclassified) United States $ 686,546 $ 676,007 Europe 480,653 490,089 Other foreign 241,715 243,710 $ 1,408,914 $ 1,409,806 |
Revenue Derived from Major Customers | Major Customers Revenue derived from major customers is as follows (in thousands): Three Months Ended March 31, 2017 2016 United States government $ 116,235 $ 85,636 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Point Grey Research, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary allocation of the purchase price for Point Grey is as follows (in thousands): Cash acquired $ 2,994 Other tangible assets and liabilities, net 35,127 Net deferred taxes (2,438 ) Identifiable intangible assets 39,800 Goodwill 183,678 Total purchase price $ 259,161 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table presents the acquired intangible assets, their preliminary estimated fair values, and preliminary estimated useful lives (in thousands, except years): Estimated Amount Developed technology 10 years $ 23,100 Customer relationships 7 years 13,200 Backlog 1 year 2,300 Non-Competition Agreements 5 years 1,000 Other n/a 200 $ 39,800 |
Prox Dynamics, AS [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary allocation of the purchase price for Prox Dynamics is as follows (in thousands): Cash acquired $ 11,706 Other tangible assets and liabilities, net (900 ) Identifiable intangible assets 31,400 Goodwill 91,882 Total purchase price $ 134,088 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table presents the acquired intangible assets, their preliminary estimated fair values, and preliminary estimated useful lives (in thousands, except years): Estimated Amount Developed technology 8 years $ 23,400 Customer relationships 7 years 3,500 Patents 8 years 3,100 Trade name 8 years 1,400 $ 31,400 |
Basis of Presentation and Sig40
Basis of Presentation and Significant Accounting Policies (Details) shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)shares | |
Accounting Policies [Abstract] | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0.8 |
Tax paid for net share exercises and issuance of vested restricted stock units | 1 |
Payments Related to Tax Withholding for Share-based Compensation | $ 0.1 |
Weighted Average Number Diluted Shares Outstanding Adjustment | shares | 229 |
Stock-based compensation Stock-
Stock-based compensation Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Capitalized in inventory | $ 902 | $ 790 |
Stock-based compensation Stoc42
Stock-based compensation Stock-based Compensation (Detail textual) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Share-based Compensation [Abstract] | |
Unrecognized stock-based compensation costs, net of estimated forfeiture | $ 35.9 |
Weighted average period of unrecognized stock-based compensation costs, net of estimated forfeiture | 1 year 9 months 18 days |
Net Earnings Per Share Net Ea43
Net Earnings Per Share Net Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net Income (loss) Available to Common Stockholders, Basic | $ 42,571 | $ 1,125 |
Weighted Average Number of Shares Outstanding, Basic | 136,359 | 137,496 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 1,880 | 1,000 |
Weighted Average Number of Shares Outstanding, Diluted | 138,239 | 138,779 |
Net Earnings Per Share Net Ea44
Net Earnings Per Share Net Earnings Per Share (Detail textual) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 18,000 | 271,000 |
Fair Value of Financial Instr45
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents at fair value | $ 70.8 | $ 8.3 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of senior unsecured notes | $ 428 |
Derivative Financial Instrume46
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | $ 350,371 | $ 262,065 |
Swedish Kronor | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 80,790 | 48,555 |
Canadian Dollar | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 55,044 | 15,645 |
British Pound Sterling | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 21,255 | 33,862 |
Brazil, Brazil Real | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 8,102 | 2,747 |
Australian Dollar | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 2,034 | 1,653 |
Euro | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 179,979 | 156,352 |
Japanese Yen | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | 2,896 | 3,251 |
Other | ||
Derivative [Line Items] | ||
Notional amounts of foreign currency forward contracts | $ 271 | $ 0 |
Derivative Financial Instrume47
Derivative Financial Instruments (Details 2) - Foreign exchange contracts - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Current Assets | ||
Derivatives [Line Items] | ||
Carrying amount of derivative asset | $ 636 | $ 2,369 |
Other Current Liabilities | ||
Derivatives [Line Items] | ||
Carrying amount of derivative liability | $ 1,585 | $ 75 |
Derivative Financial Instrume48
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Notional Amount | $ 350,371 | $ 262,065 |
March 15, 2013 Interest Rate Swap | ||
Derivative [Line Items] | ||
Contract Date | Mar. 15, 2013 | |
Notional Amount | $ 45,000 | |
Fixed Rate | 1.02% | |
Effective Date | Apr. 5, 2013 | |
Maturity Date | Mar. 31, 2019 | |
March 29, 2013 Interest Rate Swap | ||
Derivative [Line Items] | ||
Contract Date | Mar. 29, 2013 | |
Notional Amount | $ 45,000 | |
Fixed Rate | 0.97% | |
Effective Date | Apr. 5, 2013 | |
Maturity Date | Mar. 31, 2019 |
Derivative Financial Instrume49
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative [Line Items] | ||
Net gain (loss) | $ (4.3) | $ 7 |
Term loan, effective interest rate | 2.37% | |
Derivative Asset, Current | $ 0.2 | |
Derivative Asset, Noncurrent | 0.5 | |
Level 2 | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 0.7 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Allowance for Doubtful Accounts [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $ 6,277 | $ 6,457 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw material and subassemblies | $ 204,730 | $ 200,640 |
Work-in-progress | 54,934 | 43,430 |
Finished goods | 126,394 | 127,301 |
Total inventories | $ 386,058 | $ 371,371 |
Property and Equipment (Details
Property and Equipment (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Accrumulated Depreciation | $ (284,882) | $ (275,063) |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 801,406 |
Goodwill, Acquired During Period | 91,945 |
Goodwill, Translation Adjustments | 3,085 |
Ending Balance | $ 896,436 |
Intangible Assets Intangible As
Intangible Assets Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Intangible Assets [Abstract] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 85.2 | $ 77.8 |
Credit Agreement (Details)
Credit Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Available revolving credit | 393,528 | |
Bank Of America February Two Thousand Eleven New Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 16,500 | |
Long-term Debt | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt, Gross | $ 90,000 | $ 97,500 |
Accrued Product Warranties (Det
Accrued Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Accrued product warranties, beginning of year | $ 20,845 | $ 16,514 | |
Amounts paid for warranty services | (4,629) | (4,139) | |
Warranty provisions for products sold | 3,709 | 4,734 | |
Business acquisitions and disposals | 0 | 40 | |
Currency translation adjustments and other | 46 | 78 | |
Accrued product warranties, end of year | 19,971 | 17,227 | |
Current accrued product warranties, end of year | 16,642 | 14,676 | $ 17,476 |
Long-term accrued product warranties, end of ear | $ 3,329 | $ 2,551 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 15, 2021 | Jun. 30, 2016 | Sep. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 5,263 | $ 5,579 | |||
Long-term Debt | 509,737 | 516,921 | |||
Current portion, long-term debt | 15,000 | 15,000 | |||
Long-term Debt, Excluding Current Maturities | 494,737 | 501,921 | |||
Senior unsecured notes, maturity date | Jun. 15, 2021 | ||||
Line of Credit Assumed | $ 105,000 | ||||
Unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 425,000 | 425,000 | |||
Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 90,000 | $ 97,500 | |||
Three Point One Two Five Percent Senior Unsecured Notes Due June Fifteenth Twenty Twenty Five [Domain] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, issued amount | $ 425,000 | ||||
Senior unsecured notes, interest rate | 3.125% | ||||
Senior unsecured notes, proceeds | $ 421,000 | ||||
Term of agreement | 5 years |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stocks, Including Additional Paid in Capital | $ 17,879 | $ 12,139 |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (841) | |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | $ 6,581 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.15 | |
Dividends, Common Stock, Cash | $ 20,500 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Mar. 31, 2017USD ($) |
Loss Contingencies [Line Items] | |
Loss contingency accrual | $ 2.5 |
Minimum | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | 2.5 |
Maximum | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 15 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Current tax expense (benefit): | ||
Income tax provision | $ 12,993 | $ 54,495 |
Current income tax expense (benefit) | 40,200 | |
Deferred tax expense (benefit): | ||
Deferred income taxes | 192 | $ (227) |
Deferred Income Tax Expense (Benefit), Excluding Discontinued Operations | $ 53,500 |
Income Taxes (Details 3)
Income Taxes (Details 3) $ in Millions | Mar. 31, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 2.3 |
Operating Segments and Relate62
Operating Segments and Related Information (Details) | 3 Months Ended |
Mar. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 6 |
Operating Segments and Relate63
Operating Segments and Related Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 406,814 | $ 379,472 |
Intersegment revenue | 0 | 0 |
Earnings from operations | 59,086 | 57,377 |
Surveillance | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 118,729 | 124,151 |
Intersegment revenue | 4,756 | 4,224 |
Earnings from operations | 26,365 | 35,865 |
Instruments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 77,855 | 79,418 |
Intersegment revenue | 5,790 | 1,575 |
Earnings from operations | 21,146 | 19,981 |
Security | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 45,078 | 47,061 |
Intersegment revenue | 3,126 | 2,473 |
Earnings from operations | 315 | (2,169) |
OEM & Emerging Markets | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 84,765 | 47,845 |
Intersegment revenue | 9,170 | 8,176 |
Earnings from operations | 24,357 | 10,686 |
Maritime | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 48,550 | 51,720 |
Intersegment revenue | 677 | 615 |
Earnings from operations | 5,205 | 5,806 |
Detection | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 31,837 | 29,277 |
Intersegment revenue | 0 | 0 |
Earnings from operations | 8,737 | 8,237 |
Eliminations | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Intersegment revenue | 23,519 | 17,063 |
Total Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Earnings from operations | $ 86,125 | $ 78,406 |
Operating Segments and Relate64
Operating Segments and Related Information Operating Segments and related information (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Unallocated corporate expense | $ (18,223) | $ (16,624) |
Amortization of purchased Intangible Assets | (6,736) | (4,207) |
Amortization of acquisition-related inventory step-up | (1,992) | 0 |
Restructuring Charges | (88) | (198) |
Consolidated earnings from operations | 59,086 | 57,377 |
Other Nonoperating Expense | (3,522) | (1,757) |
Consolidated earnings before income taxes | 55,564 | 55,620 |
Total Segments [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Consolidated segment operating income | 86,125 | 78,406 |
Consolidated earnings from operations | $ 86,125 | $ 78,406 |
Operating Segments and Relate65
Operating Segments and Related Information (Details 4) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | $ 694,798 | $ 723,391 |
Segment Reporting Information goodwill | 896,436 | 801,406 |
Surveillance | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 269,646 | 283,324 |
Segment Reporting Information goodwill | 244,433 | 152,383 |
Instruments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 111,800 | 114,681 |
Segment Reporting Information goodwill | 148,538 | 147,595 |
Security | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 76,976 | 93,174 |
Segment Reporting Information goodwill | 103,844 | 102,983 |
OEM & Emerging Markets [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 139,791 | 144,862 |
Segment Reporting Information goodwill | 253,074 | 252,647 |
Maritime [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 73,619 | 61,494 |
Segment Reporting Information goodwill | 98,596 | 97,860 |
Detection | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Segment assets (accounts receivable, net and inventories) | 22,966 | 25,856 |
Segment Reporting Information goodwill | $ 47,951 | $ 47,938 |
Operating Segments and Relate66
Operating Segments and Related Information (Details 5) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 406,814 | $ 379,472 |
United States | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 221,832 | 194,283 |
Europe [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 83,271 | 84,410 |
Asia [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 53,924 | 43,825 |
Mid_East/Africa [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 25,142 | 27,712 |
Canada/Latin_America [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 22,645 | $ 29,242 |
Operating Segments and Relate67
Operating Segments and Related Information (Details 6) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 1,408,914 | $ 1,409,806 |
United States | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 686,546 | 676,007 |
Europe [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | 480,653 | 490,089 |
Other Geographic Region [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long-lived assets | $ 241,715 | $ 243,710 |
Operating Segments and Relate68
Operating Segments and Related Information (Details 7) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue, Major Customer [Line Items] | ||
Revenue | $ 406,814 | $ 379,472 |
United States government | ||
Revenue, Major Customer [Line Items] | ||
Revenue | $ 116,235 | $ 85,636 |
Business Acquisitions (Detail)
Business Acquisitions (Detail) - USD ($) $ in Thousands | Nov. 30, 2016 | Nov. 04, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 896,436 | $ 801,406 | ||
Point Grey Research, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash acquired | $ 2,994 | |||
Other tangible assets and liabilities, net | 35,127 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 2,438 | |||
Identifiable intangible assets | 39,800 | |||
Goodwill | 183,678 | |||
Total purchase price | $ 259,161 | |||
Prox Dynamics, AS [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash acquired | $ 11,706 | |||
Other tangible assets and liabilities, net | (900) | |||
Identifiable intangible assets | 31,400 | |||
Goodwill | 91,900 | |||
Total purchase price | $ 134,088 |
Business Acquisitions (Details
Business Acquisitions (Details 1) - USD ($) $ in Thousands | Nov. 30, 2016 | Nov. 04, 2016 |
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 200 | |
Point Grey Research, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets acquired | $ 39,800 | |
Product Technology [Member] | Prox Dynamics, AS [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 8 years | |
Product Technology [Member] | Point Grey Research, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 10 years | |
Patented Technology [Member] | Prox Dynamics, AS [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 8 years | |
Finite-lived intangible assets acquired | $ 3,100 | |
Trade name | Prox Dynamics, AS [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 7 years | |
Finite-lived intangible assets acquired | $ 3,500 | |
Trade name | Point Grey Research, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 7 years | |
Finite-lived intangible assets acquired | $ 13,200 | |
Trade Names [Member] | Prox Dynamics, AS [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 8 years | |
Finite-lived intangible assets acquired | $ 1,400 | |
Backlog | Point Grey Research, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 1 year | |
Finite-lived intangible assets acquired | $ 2,300 | |
Non-Competition Agreements | Point Grey Research, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Life | 5 years | |
Finite-lived intangible assets acquired | $ 1,000 | |
Developed technology | Prox Dynamics, AS [Member] | ||
Business Acquisition [Line Items] | ||
Indefinite-lived intangible assets acquired | 23,400 | |
Developed technology | Point Grey Research, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Indefinite-lived intangible assets acquired | $ 23,100 |
Business Acquisitions (Detail71
Business Acquisitions (Details textual) - USD ($) $ in Thousands | Nov. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 896,436 | $ 801,406 | |
Goodwill, Acquired During Period | $ 91,945 | ||
Prox Dynamics, AS [Member] | |||
Business Acquisition [Line Items] | |||
Cash acquired | $ 11,706 | ||
Goodwill | 91,900 | ||
Total purchase price | 134,088 | ||
Identifiable intangible assets | $ 31,400 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ (88) | $ (198) |
Restructuring Costs (Details 2)
Restructuring Costs (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ (88) | $ (198) |
Restructuring Costs (Details 3)
Restructuring Costs (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ (88) | $ (198) |
Subsequent Events (Details)
Subsequent Events (Details) - Dividends [Domain] - USD ($) $ / shares in Units, $ in Millions | Mar. 10, 2017 | Feb. 24, 2017 | Feb. 09, 2017 |
Subsequent Event [Line Items] | |||
Dividends Payable, Date Declared | Apr. 20, 2017 | ||
Quarterly dividend, value per share | $ 0.15 | ||
Quarterly dividend, date to be paid | Jun. 9, 2017 | ||
Quarterly dividend, date of record | May 26, 2017 | ||
Quarterly dividend, amount declared | $ 20.5 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Restructuring expenses | $ (88) | $ (198) |
Revenue | 406,814 | 379,472 |
Gross profit | 191,321 | 177,690 |
Net earnings | $ 42,571 | $ 1,125 |
Basic earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 0.31 | $ 0.01 |
Diluted earnings per share: | ||
Diluted earnings per share (in dollars per share) | $ 0.31 | $ 0.01 |