Teledyne FLIR (FLIR) 10-Q 9 Nov 09 2009 Q3 Quarterly report Financial data

Statement Of Income

Statement Of Income (USD $)
In Thousands, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenue	$285,553	$276,740	$835,527	$774,624
Cost of goods sold	122,736	121,478	353,047	341,969
Gross profit	162,817	155,262	482,480	432,655
Operating expenses:
Research and development	21,294	21,639	66,935	68,296
Selling, general and administrative	52,204	56,973	158,199	167,946
Total operating expenses	73,498	78,612	225,134	236,242
Earnings from operations	89,319	76,650	257,346	196,413
Interest expense	1,238	3,473	5,743	10,900
Other expense (income), net	1,664	(4,956)	1,732	(8,627)
Earnings before income taxes	86,417	78,133	249,871	194,140
Income tax provision	26,382	23,354	79,912	58,224
Net earnings	$60,035	$54,779	$169,959	$135,916
Net earnings per share:
Basic	0.4	0.39	1.14	0.98
Diluted	0.38	0.35	1.07	0.87
Weighted average shares outstanding:
Basic	151,573	139,211	148,475	138,090
Diluted	160,287	163,124	161,477	162,393

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Dec. 31, 2008
Current assets:
Cash and cash equivalents	$403,320	$289,442
Accounts receivable, net	209,079	239,183
Inventories	221,694	207,487
Prepaid expenses and other current assets	77,059	59,824
Deferred income taxes, net	16,833	16,566
Total current assets	927,985	812,502
Property and equipment, net	138,219	122,304
Deferred income taxes, net	8,152	2,217
Goodwill	239,059	225,685
Intangible assets, net	51,112	56,174
Other assets	31,719	22,195
Assets, Total	1,396,246	1,241,077
Current liabilities:
Accounts payable	55,753	47,823
Deferred revenue	21,879	27,554
Accrued payroll and related liabilities	34,856	43,337
Accrued product warranties	8,435	7,826
Advance payments from customers	9,870	19,183
Accrued expenses	23,616	21,978
Accrued income taxes	2,942	0
Other current liabilities	2,588	4,574
Total current liabilities	159,939	172,275
Long-term debt	60,200	182,825
Deferred tax liability, net	6,311	5,983
Accrued income taxes	4,568	5,697
Pension and other long-term liabilities	36,281	29,572
Commitments and contingencies	-	-
Shareholders' equity:
Preferred stock, $0.01 par value, 10,000 shares authorized; no shares issued at September 30, 2009, and December 31, 2008	0	0
Common stock, $0.01 par value, 500,000 shares authorized, 151,666 and 141,387 shares issued at September 30, 2009, and December 31, 2008, respectively, and additional paid-in capital	367,226	282,848
Retained earnings	747,049	577,090
Accumulated other comprehensive earnings (loss)	14,672	(15,213)
Total shareholders' equity	1,128,947	844,725
Liabilities and Stockholders' Equity, Total	$1,396,246	$1,241,077

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
Share data in Thousands, except Per Share data	Sep. 30, 2009	Dec. 31, 2008
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	151,666	141,387

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities:
Net earnings	$169,959	$135,916
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	30,903	34,307
Deferred income taxes	(2,774)	(2,991)
Stock-based compensation plans	17,640	15,160
Cash inducement on exchange offer for convertible notes	1,997	0
Other non-cash items	(1,566)	(67)
Changes in operating assets and liabilities (net of acquisitions):
Decrease (increase) in accounts receivable	35,911	(36,741)
Increase in inventories	(8,339)	(33,623)
Increase in prepaid expenses and other current assets	(14,897)	(17,084)
(Increase) decrease in other assets	(12,098)	3,476
Increase in accounts payable	6,630	7,164
(Decrease) increase in deferred revenue	(5,933)	9,080
(Decrease) increase in accrued payroll and other liabilities	(25,975)	13,876
Increase (decrease) in accrued income taxes	1,505	(679)
Increase in pension and other long-term liabilities	6,449	1,982
Cash provided by operating activities	199,412	129,776
Cash flows from investing activities:
Additions to property and equipment	(34,523)	(21,086)
Proceeds from sale of property and equipment	2,891	0
Business acquisitions, net of cash acquired	(13,148)	(79,303)
Other investments	601	(8,320)
Cash used by investing activities	(44,179)	(108,709)
Cash flows from financing activities:
Repayments on credit agreement	0	(19,000)
Repayment of capital leases and other long-term debt	(23)	(2,401)
Cash inducement on exchange offer for convertible notes	(1,997)	0
Repurchase of common stock	(73,169)	(40,739)
Proceeds from shares issued pursuant to stock-based compensation plans	12,969	30,640
Excess tax benefit from stock-based compensation plans	6,005	19,098
Capital contribution	330	0
Cash used by financing activities	(55,885)	(12,402)
Effect of exchange rate changes on cash	14,530	(6,243)
Net increase in cash and cash equivalents	113,878	2,422
Cash and cash equivalents, beginning of period	289,442	203,681
Cash and cash equivalents, end of period	$403,320	$206,103

Note 1. Basis of Presentation

Note 1. Basis of Presentation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 1. Basis of Presentation	Note 1. Basis of Presentation The accompanying consolidated financial statements of FLIR Systems, Inc. and its consolidated subsidiaries (the Company) are unaudited and have been prepared by the Company 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 Companys 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 Companys audited consolidated financial statements and the notes thereto included in the Companys Annual Report on Form 10-K for the year ended December31, 2008. The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All 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 December31, 2009. The Company has performed a review for subsequent events through November6, 2009.

Note 2. Accounting for Converti

Note 2. Accounting for Convertible Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 2. Accounting for Convertible Debt	Note 2. Accounting for Convertible Debt On January1, 2009, the Company adopted the provisions of the Financial Accounting Standards Board Accounting Standards Codification Subtopic 470-20, Debt with Conversion and Other Options (ASC Subtopic 470-20). ASC Subtopic 470-20 requires that issuers of convertible debt instruments that may be settled in cash should separately account for the liability and equity components in a manner that reflects the entitys nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. ASC Subtopic 470-20 was effective for financial statements issued for fiscal years beginning after December15, 2008 with retrospective application required. In June 2003, the Company issued $210 million of 3.0 percent senior convertible notes due in 2023. The net proceeds from the issuance were approximately $203.9 million. The Company has determined that the expected life of the notes should be seven years since the notes are first redeemable in June 2010. The Company estimates that its nonconvertible borrowing rate for debt with a seven year maturity issued in June 2003 was 6.0 percent. Accordingly, the value of the liability component of the notes at the time of issuance was $174.4 million and the value of the equity component was $35.6 million. The Company has retrospectively applied the provisions of ASC Subtopic 470-20 to its financial statements beginning in 2003. The retrospective application includes the separation of the liability and equity components of the convertible notes, the reallocation of the $6.1 million of issuance costs between the liability and equity components, an increase in interest expense for periods subsequent to issuance to reflect the estimated nonconvertible borrowing rate, and the related tax effects. ASC Subtopic 470-20 also requires that when debt is extinguished, a gain or loss is recognized for the difference between the fair value of the liability component and its carrying value. The Companys retrospective application, therefore, also includes the impact of conversions of notes with an aggregate principal amount of $18.6 million prior to January1, 2009. The carrying amounts of the convertible notes are as follows (in thousands): September30, 2009 December31, 2008 Liability component: Principal amount $ 61,489 $ 191,419 Unamortized discount (1,185 ) (7,682 ) Unamortized issuance costs (142 ) (942 ) $ 60,162 $ 182,795 Equity component $ (115,100 ) $ 222 The unamortized discount and issuance costs will be amortized through June 2010. As of September30, 2009, 5.5million shares of the Companys common stock were issuable upon conversion of the remaining notes, valued at $155.0 million as of the closing market price on that day. The $155.0 million is in excess of the principal amount by $93.5 million. The effective interest rate of the convertible notes is 6%. Interest and amortization expense of the convertible notes recognized in the Consolidated Statements of Income are as follows (in thousands):

Note 3. Stock-based Compensatio

Note 3. Stock-based Compensation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 3. Stock-based Compensation	Note 3. Stock-based Compensation Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income are as follows (in thousands): Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 Cost of goods sold $ 824 $ 701 $ 2,425 $ 1,945 Research and development 1,298 1,325 3,641 3,530 Selling, general and administrative 4,001 3,343 11,574 9,685 Stock-based compensation expense before income taxes 6,123 5,369 17,640 15,160 Income tax benefit (1,866 ) (1,524 ) (5,287 ) (3,980 ) Total stock-based compensation expense after income taxes $ 4,257 $ 3,845 $ 12,353 $ 11,180 Stock-based compensation costs capitalized in inventory are as follows (in thousands): September30, 2009 2008 Stock-based compensation costs capitalized in inventory $ 879 $ 962 As of September30, 2009, the Company had $38.3 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of 2.0 years. The fair value of the stock-based awards, as determined under the Black-Scholes model, granted in the three months and nine months ended September30, 2009 and 2008 was estimated with the following weighted-average assumptions: ThreeMonthsEnded September30, Nine Months Ended September30, 2009 2008 2009 2008 Stock Option Awards: Risk-free interest rate 1.6 % 1.5 % 2.8 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected term 3.3years 4.3years 4.1years Expected volatility 48.1 % 46.9 % 40.8 % Employee Stock Purchase Plan: Risk-free interest rate 0.3 % 1.7 % Expected dividend yield 0.0 % 0.0 % Expected term 6months 6months Expected volatility 60.9 % 50.0 % The 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): ThreeMonthsEnded September30, Nine Months Ended September30, 2009 2008 2009 2008 Stock Option Awards: Weighted average grant date fair value per share $ 7.63 $ $ 9.96 $ 12.25 Total fair value of awards granted $ 140 $ $ 10,534 $ 7,175 Total fair value of awards vested $ 215 $ 177 $ 6,924 $ 8,243 Total intrinsic value of options exercised $ 6,655 $ 12,039 $ 17,825 $ 76,709 Restricted Stock Unit Awards: Weighted average grant date fair value per share $ 21.49 $ 39.37 $ 25.37 $ 34.31 Total fair value of awards granted $ 774 $ 83 $ 16,749 $ 18,981 Tota

Note 4. Net Earnings Per Share

Note 4. Net Earnings Per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 4. Net Earnings Per Share	Note 4. 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 September30, Nine Months Ended September30, 2009 2008 2009 2008 (AsAdjusted) (AsAdjusted) Numerator for earnings per share: Net earnings, as reported $ 60,035 $ 54,799 $ 169,959 $ 135,916 Interest associated with convertible notes, net of tax 404 1,961 3,200 5,815 Net earnings available to common shareholders diluted $ 60,439 $ 56,760 $ 173,159 $ 141,731 Denominator for earnings per share: Weighted average number of common shares outstanding 151,573 139,211 148,475 138,090 Assumed exercises of stock options and vesting of restricted shares, net of shares assumed reacquired under the treasury stock method 2,996 4,988 3,297 5,378 Assumed conversion of convertible notes 5,718 18,925 9,705 18,925 Diluted shares outstanding 160,287 163,124 161,477 162,393 The effect of stock options and restricted stock units for the three and nine months ended September30, 2009 that aggregated 830,000 shares and 663,000 shares, respectively, has been excluded for purposes of calculating diluted earnings per share since the effect would have been anti-dilutive. For the three and nine months ended September30, 2008, no shares of stock underlying outstanding stock options or restricted stock units were excluded from the calculations of diluted earnings per share.

Note 5. Fair Value of Financial

Note 5. Fair Value of Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 5. Fair Value of Financial Instruments	Note 5. Fair Value of Financial Instruments As of September30, 2009, the Company had $298.7 million of cash equivalents. The Company has categorized its cash and 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 Accounting Standards Codification Topic 820 Fair Value Measurements and Disclosures. The Company does not have any other financial assets or liabilities that are measured at fair value. As of September30, 2009, the Company had $60.2 million of convertible notes included in long-term debt. The fair value of the convertible notes, estimated based on quoted market prices of the convertible notes, as of September30, 2009 was $156.8 million.

Note 6. Accounts Receivable

Note 6. Accounts Receivable
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 6. Accounts Receivable	Note 6. Accounts Receivable Accounts receivable are net of an allowance for doubtful accounts of $2.5 million and $1.3 million at September30, 2009 and December31, 2008, respectively.

Note 7. Inventories

Note 7. Inventories
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 7. Inventories	Note 7. Inventories Inventories consist of the following (in thousands): September30, 2009 December31, 2008 Raw material and subassemblies $ 134,997 $ 129,108 Work-in-progress 47,121 40,325 Finished goods 39,576 38,054 $ 221,694 $ 207,487

Note 8. Property and Equipment

Note 8. Property and Equipment
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 8. Property and Equipment	Note 8. Property and Equipment Property and equipment are net of accumulated depreciation of $98.9 million and $86.5 million at September30, 2009 and December31, 2008, respectively.

Note 9. Goodwill

Note 9. Goodwill
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 9. Goodwill	Note 9. Goodwill The carrying value of goodwill by reporting segment and the activity for the nine months ended September30, 2009 is as follows (in thousands): Government Systems Thermography Commercial Vision Systems Total Balance, December31, 2008 $ 12,802 $ 102,313 $ 110,570 $ 225,685 Business acquisitions 1,323 8,585 9,908 Other (585 ) (8 ) (593 ) Currency translation adjustments 448 3,381 230 4,059 Balance, September30, 2009 $ 13,250 $ 106,432 $ 119,377 $ 239,059

Note 10. Intangible Assets

Note 10. Intangible Assets
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 10. Intangible Assets	Note 10. Intangible Assets Intangible assets are net of accumulated amortization of $49.9 million and $43.5 million at September30, 2009 and December31, 2008, respectively.

Note 11. Accrued Product Warran

Note 11. Accrued Product Warranties
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 11. Accrued Product Warranties	Note 11. Accrued Product Warranties The following table summarizes the Companys warranty liability and activity (in thousands): Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 Accrued product warranties, beginning of period $ 8,095 $ 7,961 $ 7,826 $ 6,594 Amounts paid for warranty services (2,444 ) (1,880 ) (6,996 ) (5,879 ) Warranty provisions for products sold 2,784 1,883 7,454 7,249 Other 151 Accrued product warranties, end of period $ 8,435 $ 7,964 $ 8,435 $ 7,964

Note 12. Credit Agreements

Note 12. Credit Agreements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 12. Credit Agreements	Note 12. Credit Agreements At September30, 2009, the Company had no borrowings outstanding under its Credit Agreement, dated October6, 2006, with Bank of America, N.A., Union Bank of California, N.A., U.S. Bank National Association and other Lenders, and $11.7 million of letters of credit outstanding, which reduces the total available credit.

Note 13. Long-Term Debt

Note 13. Long-Term Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 13. Long-Term Debt	Note 13. Long-Term Debt Long-term debt consists of the following (in thousands): September30, 2009 December31, 2008 (AsAdjusted) Convertible notes $ 61,489 $ 191,419 Issuance cost and discount of the convertible notes (1,327 ) (8,624 ) Other long-term debt 38 30 $ 60,200 $ 182,825 On February5, 2009, the Company commenced an exchange offer for any and all of its outstanding convertible notes. Holders who elected to exchange their notes in this offer and whose notes were accepted for exchange by the Company received 90.1224 shares of the Companys common stock and a cash payment of $20 per $1,000 principal amount of notes. The offer expired on March9, 2009. Notes with an aggregate principal amount of $99.9 million were exchanged pursuant to the exchange offer and were converted into 9.0million shares of the Companys common stock. The Company recognized a gain of $2.2 million from the extinguishment of the notes; the gain and the $2.0 million expense associated with the cash inducement are reported in other expense (income), net. In addition, in July 2009, convertible notes with an aggregate principal amount of $30.1 million were converted into 2.7million shares of the Companys common stock. The Company recognized a gain of $0.3 million from the extinguishment of the notes, which is reported in other expense (income), net.

Note 14. Shareholders' Equity

Note 14. Shareholders' Equity
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 14. Shareholders' Equity	Note 14. Shareholders Equity The following table summarizes the common stock and additional paid-in capital activity during the nine months ended September30, 2009 (in thousands): Common stock and additional paid-in capital, December31, 2008 (as adjusted) $ 282,848 Income tax benefit of common stock options exercised 6,113 Common stock issued pursuant to stock-based compensation plans, net 8,260 Stock-based compensation expense 17,556 Repurchase of common stock (73,169 ) Conversion of convertible debt 125,288 Capital contribution 330 Common stock and additional paid in capital, September30, 2009 $ 367,226 During the nine months ended September30, 2009, the Company repurchased 3,231,700 shares of the Companys common stock under the February 2009 repurchase authorization by the Companys Board of Directors pursuant to which the Company is authorized to repurchase up to 20.0million shares of the Companys outstanding common stock through open market purchases, privately negotiated transactions including accelerated stock repurchase agreements, or in such other manner as will comply with the provisions of the Securities Exchange Act of 1934. The February 2009 repurchase authorization will expire in February 2011.

Note 15. Comprehensive Earnings

Note 15. Comprehensive Earnings
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 15. Comprehensive Earnings	Note 15. Comprehensive Earnings The following table sets forth the calculation of comprehensive earnings for the periods indicated (in thousands): Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 (AsAdjusted) (AsAdjusted) Net earnings $ 60,035 $ 54,779 $ 169,959 $ 135,916 Translation adjustment 22,745 (43,803 ) 29,885 (17,592 ) Total comprehensive earnings $ 82,780 $ 10,976 $ 199,844 $ 118,324

Note 16. Contingencies

Note 16. Contingencies
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 16. Contingencies	Note 16. Contingencies In June 2007, the Company was named as a nominal defendant in a shareholder derivative action filed in the United States District Court for the District of Oregon:Kathleen Edith Sommers v. Earl R. Lewis, et al.The Sommers complaint alleged that certain stock options granted by the Company were improperly dated, purported to assert claims under various common law theories and under the federal securities laws and alleged the Company is entitled to damages from various individual defendants on a variety of legal theories.Following orders of dismissal entered on June16, 2008 and February12, 2009, the court entered a judgment dismissing the amended complaint with prejudice on February19, 2009.This ruling was appealed to the United States Court of Appeals for the Ninth Circuit.On September9, 2009, plaintiff stipulated to a dismissal of her appeal with prejudice.On September10, 2009, an Order to this effect was entered by the Court of Appeals.This case is now concluded. The Company and its subsidiary, Indigo Systems Corporation, (together, the FLIR Parties) were named in a lawsuit filed by Raytheon Company on March2, 2007 in the United States District Court for the Eastern District of Texas.On August11, 2008, Raytheon Company was granted leave to file a second amended complaint.The complaint, as amended, asserts 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 second amended complaint and counterclaims on September2, 2008, in which they denied all material allegations.On August31, 2009, the court entered an order granting the FLIR Parties motion for summary judgment on Raytheons trade secret misappropriation claim based on the FLIR Parties statute of limitations defense.Raytheon has abandoned all of its other claims except its patent claims which are currently set for trial to commence on April19, 2010.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.

Note 17. Income Taxes

Note 17. Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 17. Income Taxes	Note 17. Income Taxes As of September30, 2009, the Company had approximately $5.4 million of net unrecognized tax benefits of which all $5.4 million would affect the Companys effective tax rate if recognized. The Company anticipates a portion 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 statute of limitations. The Company classifies interest and penalties related to uncertain tax positions as income tax expense. As of September30, 2009, the Company had approximately $0.5 million of accrued interest related to uncertain tax positions. The Company currently has the following tax years open to examination by major taxing jurisdictions: TaxYears: US Federal 19992008 State of Oregon 1999 2008 State of Massachusetts 2002 2008 State of California 2003 2008 Sweden 2002 2008 United Kingdom 2006 2008 Germany 2003 2008 France 2006 2008

Note 18. Operating Segments and

Note 18. Operating Segments and Related Information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 18. Operating Segments and Related Information	Note 18. Operating Segments and Related Information Operating Segments Operating segment information is as follows (in thousands): Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 Revenue External Customers: Government Systems $ 162,985 $ 151,743 $ 485,552 $ 397,004 Thermography 69,933 79,161 200,641 239,400 Commercial Vision Systems 52,635 45,836 149,334 138,220 $ 285,553 $ 276,740 $ 835,527 $ 774,624 Revenue Intersegments: Government Systems $ 5,001 $ 4,918 $ 16,169 $ 25,420 Thermography 2,975 2,416 8,331 6,096 Commercial Vision Systems 4,314 6,279 14,198 17,467 Eliminations (12,290 ) (13,613 ) (38,698 ) (48,983 ) $ $ $ $ Earnings from operations: Government Systems $ 71,802 $ 64,166 $ 217,597 $ 159,753 Thermography 18,265 16,702 49,591 47,886 Commercial Vision Systems 11,728 10,134 36,298 29,412 Other (12,476 ) (14,352 ) (46,140 ) (40,638 ) $ 89,319 $ 76,650 $ 257,346 $ 196,413 September30, 2009 December31, 2008 Segment assets (accounts receivable, net and inventories): Government Systems $ 266,440 $ 273,821 Thermography 101,439 112,728 Commercial Vision Systems 62,894 60,121 $ 430,773 $ 446,670 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 September30, Nine Months Ended September30, 2009 2008 2009 2008 United States $ 161,207 $ 190,556 $ 496,480 $ 495,459 Europe 59,516 51,521 167,242 172,295 Other foreign 64,830 34,663 171,805 106,870 $ 285,553 $ 276,740 $ 835,527 $ 774,624 Long-lived assets by significant geographic locations are as follows (in thousands): September30, 2009 December31, 2008 United States $ 339,714 $ 318,183 Europe 116,037 105,813 Other foreign 4,358 2,362 $ 460,109 $ 426,358 Major Customers Revenue derived from major customers is as follows (in thousands): Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 US Government $ 125,067 $ 118,455 $ 375,310 $ 308,818

Note 19. Business Acquisitions

Note 19. Business Acquisitions
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 19. Business Acquisitions	Note 19. Business Acquisitions In April 2009, the Company acquired certain assets from Infrared Korea, Ltd. (Korea), a distributor of infrared camera systems, for $2.0 million in cash. The portion of the $2.0 million purchase price in excess of the assets acquired is reported in intangible assets and goodwill of $0.6 million and $1.3 million, respectively, in the Thermography business segment. In June 2009, the Company acquired all of the outstanding stock of Salvador Imaging, Inc. (Salvador), a leading provider of high-performance visible and low light imaging systems, for approximately $13.1 million in cash. The Company has recorded $2.9 million of identifiable intangible assets and $8.6 million of goodwill in the Commercial Vision Systems business segment. The operating results of these acquisitions are included in the Companys results of operations since their respective dates of acquisition. The goodwill recognized on both of these acquisitions is not deductible for United States tax purposes. These acquisitions are not significant, as defined in Regulation S-X of the Securities and Exchange Commission, compared to the Companys overall financial position. Accordingly, pro forma financial statements of the combined entities are not presented.

Note 20. Subsequent Event

Note 20. Subsequent Event
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 20. Subsequent Event	Note 20. Subsequent Event On October19, 2009, the Company acquired all of the outstanding stock of OmniTech Partners, Inc., Optical Systems Technology, Inc. and Keystone Applied Technologies, Inc., operating together as a provider in the development and manufacturing of weapon-mounted image intensified and fused image intensified/thermal imagers, for approximately $42.0 million in cash.

Document Information

Document Information
	9 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 31, 2009
Entity [Text Block]
Trading Symbol	FLIR
Entity Registrant Name	FLIR SYSTEMS INC
Entity Central Index Key	0000354908
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		151,782,318