Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 01, 2015 | Jun. 29, 2014 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CGNX | ||
Entity Registrant Name | COGNEX CORP | ||
Entity Central Index Key | 851205 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 86,544,015 | ||
Entity Public Float | $3,112,594,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Revenue | |||||
Product | $451,066 | $326,786 | $295,588 | ||
Service | 35,204 | 27,100 | 28,691 | ||
Total revenue | 486,270 | 353,886 | 324,279 | ||
Cost of revenue | |||||
Product | 101,448 | 71,893 | 65,432 | ||
Service | 19,572 | 12,187 | 14,063 | ||
Total cost of revenue | 121,020 | 84,080 | 79,495 | ||
Gross margin | |||||
Product | 349,618 | 254,893 | 230,156 | ||
Service | 15,632 | 14,913 | 14,628 | ||
Total gross margin | 365,250 | 269,806 | 244,784 | ||
Research, development, and engineering expenses | 59,920 | 48,087 | 41,549 | ||
Selling, general, and administrative expenses | 161,667 | 135,351 | 119,828 | ||
Operating income | 143,663 | 86,368 | 83,407 | ||
Foreign currency gain (loss) | 861 | -646 | -880 | ||
Investment income | 3,156 | 2,604 | 4,470 | ||
Other expense | -283 | -440 | -367 | ||
Income before income tax expense | 147,397 | 87,886 | 86,630 | ||
Income tax expense | 25,912 | 14,313 | 18,532 | ||
Net income | $121,485 | $73,573 | $68,098 | ||
Net income per common and common-equivalent share: | |||||
Basic (in dollars per share) | $1.40 | $0.85 | [1] | $0.79 | [1] |
Diluted (in dollars per share) | $1.36 | $0.83 | [1] | $0.78 | [1] |
Weighted-average common and common-equivalent shares outstanding: | |||||
Basic (in dollars per share) | 86,858 | 86,946 | [1] | 85,666 | [1] |
Diluted (in dollars per share) | 89,071 | 88,901 | [1] | 87,280 | [1] |
Cash dividends per common share (in dollars per share) | $0.77 | [1] | |||
[1] | Prior period results have been adjusted to reflect the two-for-one stock split effected in the form of a stock dividend which occurred in the third quarter of 2013. |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (Common Stock [Member]) | 0 Months Ended | 3 Months Ended |
Jul. 31, 2013 | Sep. 29, 2013 | |
Common Stock [Member] | ||
Stock split ratio | 2 | 2 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $121,485 | $73,573 | $68,098 |
Cash flows hedges [Abstract] | |||
Net unrealized gain (loss), net of tax of $0, $13, and $0 in 2014, 2013, and 2012, respectively | -118 | 104 | 0 |
Reclassification of net realized (gain) loss into current operations | 46 | 0 | 0 |
Net change related to cash flow hedges | -72 | 104 | 0 |
Net unrealized gain (loss), net of tax of $40, ($147), and $129 in 2014, 2013, and 2012, respectively | 579 | -190 | 2,079 |
Reclassification of net realized (gain) loss into current operations | -673 | -314 | -1,695 |
Net change related to available-for-sale investments | -94 | -504 | 384 |
Currency translation adjustments | |||
Foreign currency translation adjustments, net of tax of ($870), $22, and ($7) in 2014, 2013, and 2012, respectively | -9,400 | 82 | -12,546 |
Other comprehensive income (loss), net of tax | -9,566 | -318 | -12,162 |
Total comprehensive income | $111,919 | $73,255 | $55,936 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Partners' Capital [Abstract] | |||
Tax effect of unrealized gain on cash flow hedges | $0 | $13 | $0 |
Tax effect of unrealized gain (loss) on available-for-sale investments | 40 | -147 | 129 |
Tax effect of foreign currency translation adjustment | ($870) | $22 | ($7) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $55,694 | $40,644 |
Short-term investments | 90,456 | 184,822 |
Accounts receivable, less reserves of $1,095 and $1,354 in 2014 and 2013, respectively | 50,938 | 53,015 |
Inventories | 35,536 | 25,694 |
Deferred income taxes | 8,985 | 7,611 |
Prepaid expenses and other current assets | 22,997 | 20,265 |
Total current assets | 264,606 | 332,051 |
Long-term investments | 400,845 | 229,655 |
Property, plant, and equipment, net | 47,907 | 37,136 |
Deferred income taxes | 14,452 | 12,307 |
Intangible assets, net | 10,699 | 14,723 |
Goodwill | 81,689 | 81,689 |
Other assets | 1,536 | 2,138 |
Total assets | 821,734 | 709,699 |
Current liabilities: | ||
Accounts payable | 19,114 | 9,487 |
Accrued expenses | 39,949 | 34,331 |
Accrued income taxes | 1,048 | 1,263 |
Deferred revenue and customer deposits | 20,563 | 15,941 |
Total current liabilities | 80,674 | 61,022 |
Reserve for income taxes | 4,623 | 4,765 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity: | ||
Common stock, $.002 par value – Authorized: 140,000 shares, issued and outstanding: 86,542 and 86,831 shares in 2014 and 2013, respectively | 173 | 174 |
Additional paid-in capital | 251,717 | 211,440 |
Retained earnings | 523,946 | 462,131 |
Accumulated other comprehensive loss, net of tax | -39,399 | -29,833 |
Total shareholders’ equity | 736,437 | 643,912 |
Total liabilities and shareholders' equity | $821,734 | $709,699 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Common stock par value, in dollars per share | $0.00 | $0.00 |
Common stock, shares authorized | 140,000 | 140,000 |
Common stock, shares issued | 86,542 | 86,831 |
Common stock, shares outstanding | 86,542 | 86,831 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $121,485 | $73,573 | $68,098 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Stock-based compensation expense | 15,158 | 10,620 | 8,520 |
Depreciation of property, plant, and equipment | 8,443 | 7,305 | 6,721 |
Amortization of intangible assets | 4,024 | 3,797 | 4,137 |
Amortization of discounts or premiums on investments | 1,823 | 2,519 | 5,735 |
Realized (gain) loss on sale of investments | -673 | 403 | -1,625 |
Change in deferred income taxes | -2,364 | 2,234 | 429 |
Tax effect of stock option exercises | -7,871 | -7,658 | -3,594 |
Accounts receivable | -915 | -11,311 | 5,035 |
Inventories | -11,750 | 666 | 1,872 |
Accounts payable | 10,896 | 2,644 | -246 |
Accrued expenses | 7,812 | 5,593 | -1,974 |
Accrued income taxes | 7,700 | 7,968 | 3,363 |
Deferred revenue and customer deposits | 5,893 | 3,228 | -761 |
Other | -3,691 | -6,126 | 5,421 |
Net cash provided by operating activities | 155,970 | 95,455 | 101,131 |
Cash flows from investing activities: | |||
Purchases of investments | -422,633 | -370,781 | -460,486 |
Maturities and sales of investments | 339,470 | 296,091 | 431,510 |
Purchases of property, plant, and equipment | -20,934 | -9,630 | -9,878 |
Cash paid for purchased technology | -3,750 | 0 | |
Net cash used in investing activities | -104,097 | -88,070 | -38,854 |
Cash flows from financing activities: | |||
Issuance of common stock under stock option plans | 16,930 | 27,792 | 17,468 |
Payment of dividends | 0 | 0 | -66,213 |
Repurchase of common stock | -59,673 | -47,908 | 0 |
Tax effect of stock option exercises | 7,871 | 7,658 | 3,594 |
Net cash used in financing activities | -34,872 | -12,458 | -45,151 |
Effect of foreign exchange rate changes on cash and cash equivalents | -1,951 | 557 | -10,069 |
Net change in cash and cash equivalents | 15,050 | -4,516 | 7,057 |
Cash and cash equivalents at beginning of year | 40,644 | 45,160 | 38,103 |
Cash and cash equivalents at end of year | $55,694 | $40,644 | $45,160 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning Balance at Dec. 31, 2011 | $552,980 | $168 | $135,584 | $434,581 | ($17,353) |
Beginning Balance, Shares at Dec. 31, 2011 | 84,446,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock option plans | 17,468 | 4 | 17,464 | ||
Issuance of common stock under stock option plans, shares | 1,664,000 | ||||
Stock-based compensation expense | 8,520 | 8,520 | |||
Excess tax benefit from stock option exercises | 3,594 | 3,594 | |||
Payment of dividends | -66,213 | -66,213 | |||
Net income | 68,098 | 68,098 | |||
Net unrealized gain (loss) on cash flow hedges, net of tax | 0 | ||||
Reclassification of net realized (gain) loss into current operations | 0 | ||||
Net unrealized gain (loss) on available-for-sale investments, net of tax | 2,079 | 2,079 | |||
Reclassification of net realized gain on the sale of available-for-sale investments | -1,695 | -1,695 | |||
Foreign currency translation adjustments, net of tax | -12,546 | -12,546 | |||
Balance at Dec. 31, 2012 | 572,285 | 172 | 165,162 | 436,466 | -29,515 |
Balance, Shares at Dec. 31, 2012 | 86,110,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock option plans | 27,792 | 2 | 27,790 | ||
Issuance of common stock under stock option plans, shares | 2,440,000 | ||||
Repurchase of common stock | -47,908 | -47,908 | |||
Repurchase of common stock, shares | -1,719,000 | ||||
Stock-based compensation expense | 10,620 | 10,620 | |||
Excess tax benefit from stock option exercises | 7,658 | 7,658 | |||
Tax benefit for research and development credits as a result of stock options | 210 | 210 | |||
Net income | 73,573 | 73,573 | |||
Net unrealized gain (loss) on cash flow hedges, net of tax | 104 | 104 | |||
Reclassification of net realized (gain) loss into current operations | 0 | ||||
Net unrealized gain (loss) on available-for-sale investments, net of tax | -190 | -190 | |||
Reclassification of net realized gain on the sale of available-for-sale investments | -314 | -314 | |||
Foreign currency translation adjustments, net of tax | 82 | 82 | |||
Balance at Dec. 31, 2013 | 643,912 | 174 | 211,440 | 462,131 | -29,833 |
Balance, Shares at Dec. 31, 2013 | 86,831,000 | 86,831,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock option plans | 16,930 | 2 | 16,928 | ||
Issuance of common stock under stock option plans, shares | 1,232,000 | 1,245,000 | |||
Repurchase of common stock | -59,673 | -3 | -59,670 | ||
Repurchase of common stock, shares | -1,534,000 | ||||
Stock-based compensation expense | 15,158 | 15,158 | |||
Excess tax benefit from stock option exercises | 7,871 | 7,871 | |||
Tax benefit for research and development credits as a result of stock options | 320 | 320 | |||
Net income | 121,485 | 121,485 | |||
Net unrealized gain (loss) on cash flow hedges, net of tax | -118 | -118 | |||
Reclassification of net realized (gain) loss into current operations | 46 | 46 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | 579 | 579 | |||
Reclassification of net realized gain on the sale of available-for-sale investments | -673 | -673 | |||
Foreign currency translation adjustments, net of tax | -9,400 | -9,400 | |||
Balance at Dec. 31, 2014 | $736,437 | $173 | $251,717 | $523,946 | ($39,399) |
Balance, Shares at Dec. 31, 2014 | 86,542,000 | 86,542,000 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Tax effect of unrealized gain on derivative instruments | $0 | $13 | $0 |
Tax effect of unrealized gain on available-for-sale investments | 40 | -147 | 129 |
Tax benefit of foreign currency translation adjustment | ($870) | $22 | $7 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
The accompanying consolidated financial statements reflect the application of the significant accounting policies described below. | |
Nature of Operations | |
Cognex Corporation is a leading provider of machine vision products that capture and analyze visual information in order to automate tasks, primarily in manufacturing processes, where vision is required. | |
Use of Estimates in the Preparation of Financial Statements | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the balance sheet date, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. Significant estimates and judgments include those related to revenue recognition, investments, accounts receivable, inventories, long-lived assets, goodwill, warranty obligations, contingencies, stock-based compensation, income taxes, derivative instruments, and purchase accounting. | |
Basis of Consolidation | |
The consolidated financial statements include the accounts of Cognex Corporation and its subsidiaries, all of which are wholly-owned. All intercompany accounts and transactions have been eliminated. | |
Foreign Currency Translation | |
The financial statements of the Company’s foreign subsidiaries, where the local currency is the functional currency, are translated using exchange rates in effect at the end of the year for assets and liabilities and average exchange rates during the year for results of operations. The resulting foreign currency translation adjustment, net of tax, is recorded in shareholders’ equity as other comprehensive income (loss). | |
Fair Value Measurements | |
The Company applies a three-level valuation hierarchy for fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. Level 1 inputs to the valuation methodology utilize unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets and liabilities, quoted prices for identical and similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 inputs to the valuation methodology are unobservable inputs based upon management’s best estimate of the inputs that market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. A change to the level of an asset or liability within the fair value hierarchy is determined at the end of a reporting period. | |
Cash, Cash Equivalents, and Investments | |
Money market instruments purchased with original maturities of three months or less are classified as cash equivalents and are stated at amortized cost. Debt securities with original maturities greater than three months and remaining maturities of one year or less are classified as short-term investments, as well as equity securities that the Company intends to sell within one year. Debt securities with remaining maturities greater than one year, as well as a limited partnership interest, are classified as long-term investments. It is the Company’s policy to invest in debt securities with effective maturities that do not exceed ten years. | |
Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in shareholders’ equity as other comprehensive income (loss). Equity securities that are held for short periods of time with the intention of selling them in the near term are designated as trading and are reported at fair value, with unrealized gains and losses recorded in current operations. Realized gains and losses are included in current operations, along with the amortization of the discount or premium on debt securities arising at acquisition, and are calculated using the specific identification method. The Company’s limited partnership interest is accounted for using the cost method because the Company’s investment is less than 5% of the partnership and the Company has no influence over the partnership’s operating and financial policies. Furthermore, the investment does not have a readily determinable market value, and therefore, does not qualify for fair value accounting. | |
Management monitors the carrying value of its investments in debt securities and a limited partnership interest compared to their fair value to determine whether an other-than-temporary impairment has occurred. If the fair value of a debt security is less than its amortized cost, the Company assesses whether the impairment is other-than-temporary. In considering whether a decline in fair value is other-than-temporary, we consider many factors. In its evaluation of its debt securities, management considers the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. An impairment is considered other-than-temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security. If impairment is considered other-than-temporary based upon condition (i) or (ii) described above, the entire difference between the amortized cost and the fair value of the security is recognized in current operations. If an impairment is considered other-than-temporary based upon condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security) is recognized in current operations and the amount relating to all other factors is recognized in shareholders' equity as other comprehensive income (loss). In its evaluation of its limited partnership interest, management considers the duration and extent of the decline, the length of the Company’s commitment to the investment, general economic trends, and specific communications with the General Partner. | |
Accounts Receivable | |
The Company extends credit with various payment terms to customers based upon an evaluation of their financial condition. Accounts that are outstanding longer than the payment terms are considered to be past due. The Company establishes reserves against accounts receivable for potential credit losses and records bad debt expense in current operations when it determines receivables are at risk for collection based upon the length of time the receivable has been outstanding, the customer’s current ability to pay its obligations to the Company, general economic and industry conditions, as well as various other factors. Receivables are written off against these reserves in the period they are determined to be uncollectible and payments subsequently received on previously written-off receivables are recorded as a reversal of the bad debt expense. | |
Inventories | |
Inventories are stated at the lower of cost or market. Cost is determined using standard costs, which approximates actual costs under the first-in, first-out (FIFO) method. The Company’s inventory is subject to rapid technological change or obsolescence. The Company reviews inventory quantities on hand and estimates excess and obsolescence exposures based upon assumptions about future demand, product transitions, and market conditions, and records reserves to reduce the carrying value of inventories to their net realizable value. If actual future demand is less than estimated, additional inventory write-downs would be required. | |
The Company generally disposes of obsolete inventory upon determination of obsolescence. The Company does not dispose of excess inventory immediately, due to the possibility that some of this inventory could be sold to customers as a result of differences between actual and forecasted demand. When inventory has been written down below cost, such reduced amount is considered the new cost basis for subsequent accounting purposes. As a result, the Company would recognize a higher than normal gross margin if the reserved inventory were subsequently sold. | |
Property, Plant, and Equipment | |
Property, plant, and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Buildings’ useful lives are 39 years, building improvements’ useful lives are ten years, and the useful lives of computer hardware and software, manufacturing test equipment, and furniture and fixtures range from two to five years. Leasehold improvements are depreciated over the shorter of the estimated useful lives or the remaining terms of the leases. Maintenance and repairs are expensed when incurred; additions and improvements are capitalized. Upon retirement or disposition, the cost and related accumulated depreciation of the disposed assets are removed from the accounts, with any resulting gain or loss included in current operations. | |
Intangible Assets | |
Intangible assets are stated at cost and amortized over the assets’ estimated useful lives. Intangible assets are either amortized in relation to the relative cash flows anticipated from the intangible asset or using the straight-line method, depending upon facts and circumstances. The useful lives of distribution networks range from eleven to twelve years, of customer contracts and relationships from eight to twelve years, and of completed technologies and other intangible assets from three to eight years. The Company evaluates the possible impairment of long-lived assets, including intangible assets, whenever events or circumstances indicate the carrying value of the assets may not be recoverable. At the occurrence of a certain event or change in circumstances, the Company evaluates the potential impairment of an asset by estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the sum of the estimated future cash flows is less than the carrying value, the Company determines the amount of such impairment by comparing the fair value of the asset to its carrying value. The fair value is based upon the present value of the estimated future cash flows using a discount rate commensurate with the risks involved. | |
Goodwill | |
Goodwill is stated at cost. The Company evaluates the possible impairment of goodwill annually each fourth quarter and whenever events or circumstances indicate the carrying value of the goodwill may not be recoverable. For the past four years, the Company has performed a qualitative assessment of goodwill (commonly known as “step zero”) to determine whether further impairment testing is necessary. Factors that management considers in this assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management or strategy, and changes in the composition or carrying amount of net assets. In addition, management takes into consideration the goodwill valuation under the last quantitative analysis that was performed. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would proceed to a two-step process. Step one compares the fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount exceeds the fair value of the reporting unit, step two is required to measure the amount of impairment loss. Step two compares the implied fair value of the reporting unit goodwill to the carrying amount of the goodwill. | |
Warranty Obligations | |
The Company warrants its products to be free from defects in material and workmanship for periods primarily ranging from six months to three years from the time of sale based upon the product being purchased and the terms of the customer arrangement. Warranty obligations are evaluated and recorded at the time of sale since it is probable that customers will make claims under warranties related to products that have been sold and the amount of these claims can be reasonably estimated based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or circumstances impacting product quality become known that would not have been taken into account using historical data. | |
Contingencies | |
Loss contingencies are accrued if the loss is probable and the amount of the loss can be reasonably estimated. Legal costs associated with potential loss contingencies, such as patent infringement matters, are expensed as incurred. | |
Revenue Recognition | |
The Company’s product revenue is derived from the sale of machine vision systems, which can take the form of hardware with embedded software or software-only, and related accessories. The Company also generates revenue by providing maintenance and support, training, consulting, and installation services to its customers. Certain of the Company’s arrangements include multiple deliverables that provide the customer with a combination of products or services. In order to recognize revenue, the Company requires that a signed customer contract or purchase order is received, the fee from the arrangement is fixed or determinable, and collection of the resulting receivable is probable. Assuming that these criteria have been met, product revenue is generally recognized upon delivery, revenue from maintenance and support programs is recognized ratably over the program period, revenue from training and consulting services is recognized over the period that the services are provided, and revenue from installation services is recognized when the customer has signed off that the installation is complete. When customer-specified acceptance criteria exists that are substantive, product revenue is deferred until these criteria have been met, along with the associated incremental direct costs. | |
The majority of the Company’s product offerings consist of hardware with embedded software. Under the revenue recognition rules for tangible products, the fee from a multiple-deliverable arrangement is allocated to each of the deliverables based upon their relative selling prices as determined by a selling-price hierarchy. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. A delivered item that does not qualify as a separate unit of accounting is combined with the other undelivered items in the arrangement and revenue is recognized for those combined deliverables as a single unit of accounting. The selling price used for each deliverable is based upon vendor-specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, and management’s best estimate of selling price (BESP) if neither VSOE nor TPE are available. VSOE is the price charged for a deliverable when it is sold separately. TPE is the price of the Company’s or any competitor’s largely interchangeable products or services in stand-alone sales to similarly-situated customers. BESP is the price at which the Company would sell the deliverable if it were sold regularly on a stand-alone basis, considering market conditions and entity-specific factors. | |
The selling prices used in the relative selling price allocation method for (1) certain of the Company’s services are based upon VSOE, (2) third-party accessories available from other vendors are based upon TPE, and (3) hardware products with embedded software, custom accessories, and services for which VSOE does not exist are based upon BESP. The Company does not believe TPE exists for these products and services because they are differentiated from competing products and services in terms of functionality and performance and there are no competing products or services that are largely interchangeable. For the Company’s Modular Vision Systems Division (MVSD), BESP has been established for each product line within each region, and for the Company’s Surface Inspection Systems Division (SISD), BESP has been established for each industry within each region. Management establishes BESP with consideration for market conditions, such as the impact of competition and geographic considerations, and entity-specific factors, such as the cost of the product and the division’s profit objectives. Management believes that BESP is reflective of reasonable pricing of that deliverable as if priced on a stand-alone basis. | |
Under the revenue recognition rules for software-only products, the fee from a multiple-deliverable arrangement is allocated to each of the undelivered elements based upon VSOE, which is limited to the price charged when the same deliverable is sold separately, with the residual value from the arrangement allocated to the delivered element. The portion of the fee that is allocated to each deliverable is then recognized as revenue when the criteria for revenue recognition are met with respect to that deliverable. If VSOE does not exist for all of the undelivered elements, then all revenue from the arrangement is typically deferred until all elements have been delivered to the customer. | |
The Company’s products are sold directly to end users, as well as to resellers including original equipment manufacturers (OEMs), distributors, and integrators. Revenue is recognized upon delivery of the product to the reseller, assuming all other revenue recognition criteria have been met. The Company establishes reserves against revenue for potential product returns, since the amount of future returns can be reasonably estimated based upon experience. These reserves have historically been immaterial. | |
Amounts billed to customers related to shipping and handling, as well as reimbursements received from customers for out-of-pocket expenses, are classified as revenue, with the associated costs included in cost of revenue. | |
Research and Development | |
Research and development costs for internally-developed or acquired products are expensed when incurred until technological feasibility has been established for the product. Thereafter, all software costs are capitalized until the product is available for general release to customers. The Company determines technological feasibility at the time the product reaches beta in its stage of development. Historically, the time incurred between beta and general release to customers has been short, and therefore, the costs have been insignificant. As a result, the Company has not capitalized software costs associated with internally-developed products. | |
Advertising Costs | |
Advertising costs are expensed as incurred and totaled $1,289,000 in 2014, $1,656,000 in 2013, and $1,792,000 in 2012. | |
Stock-Based Compensation | |
The Company’s share-based payments that result in compensation expense consist of stock option grants and restricted stock awards. The Company has reserved a specific number of shares of its authorized but unissued shares for issuance upon the exercise of stock options or the granting of restricted stock. When a stock option is exercised or a restricted stock award is granted, the Company issues new shares from this pool. The fair values of stock options are estimated on the grant date using a binomial lattice model. Management is responsible for determining the appropriate valuation model and estimating these fair values, and in doing so, considers a number of factors, including information provided by an outside valuation advisor. | |
The Company recognizes compensation expense related to stock options using the graded attribution method, in which expense is recognized on a straight-line basis over the service period for each separately vesting portion of the stock option as if the option was, in substance, multiple awards. The amount of compensation expense recognized at the end of the vesting period is based upon the number of stock options for which the requisite service has been completed. No compensation expense is recognized for options that are forfeited for which the employee does not render the requisite service. The term “forfeitures” is distinct from “expirations” and represents only the unvested portion of the surrendered option. The Company applies estimated forfeiture rates to its unvested options to arrive at the amount of compensation expense that is expected to be recognized over the requisite service period. At the end of each separately vesting portion of an option, the expense that was recognized by applying the estimated forfeiture rate is compared to the expense that should be recognized based upon the employee’s service, and a credit to expense is recorded related to those employees that have not rendered the requisite service. | |
Taxes | |
The Company recognizes a tax position in its financial statements when that tax position, based solely upon its technical merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statutes of limitations. Derecognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. | |
Only the portion of the liability that is expected to be paid within one year is classified as a current liability. As a result, liabilities expected to be resolved without the payment of cash (e.g., resolution due to the expiration of the statutes of limitations) or are not expected to be paid within one year are not classified as current. It is the Company’s policy to record estimated interest and penalties as income tax expense and tax credits as a reduction in income tax expense. | |
Deferred tax assets and liabilities are determined based upon the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |
Sales tax in the United States and similar taxes in other jurisdictions that are collected from customers and remitted to government authorities are presented on a gross basis (i.e., a receivable from the customer with a corresponding payable to the government). Amounts collected from customers and retained by the Company during tax holidays are recognized as nonoperating income when earned. | |
Net Income Per Share | |
Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period plus potential dilutive common shares. Dilutive common equivalent shares consist of stock options and are calculated using the treasury stock method. Common equivalent shares do not qualify as participating securities. In periods where the Company records a net loss, potential common stock equivalents are not included in the calculation of diluted net loss per share. | |
Comprehensive Income | |
Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss, net of tax, as of December 31, 2014 and December 31, 2013, consists of foreign currency translation adjustments of $38,030,000 and $28,630,000, respectively; net unrealized losses on available-for-sale investments of $130,000 and $36,000, respectively; net unrealized gains on derivative instruments of $32,000 and $104,000, respectively; and losses on currency swaps, net of gains on long-term intercompany loans, of $1,271,000 and $1,271,000, respectively. | |
Amounts reclassified from accumulated other comprehensive income to investment income on the Consolidated Statements of Operations were net realized gains of $673,000, $314,000, and $1,695,000 for 2014, 2013, and 2012, respectively. | |
Concentrations of Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments, and trade receivables. The Company has certain domestic and foreign cash balances that exceed the insured limits set by the Federal Deposit Insurance Corporation (FDIC) in the United States and equivalent regulatory agencies in foreign countries. The Company primarily invests in investment-grade debt securities and has established guidelines relative to credit ratings, diversification, and maturities of its debt securities that maintain safety and liquidity. The Company has not experienced any significant realized losses on its debt securities. | |
The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. The Company has not experienced any significant losses related to the collection of its accounts receivable. | |
A significant portion of the Company’s MVSD product is manufactured by a third-party contractor located in Indonesia. This contractor has agreed to provide Cognex with termination notification periods and last-time-buy rights, if and when that may be applicable. We rely upon this contractor to provide quality product and meet delivery schedules. We engage in extensive product quality programs and processes, including actively monitoring the performance of our third-party manufacturers. Certain components are presently available only from a single source. Certain key electronic components that are purchased from strategic suppliers, such as processors or imagers, are fundamental to the design of Cognex products. A disruption in the supply of these key components, such as a last-time-buy announcement, natural disaster, financial bankruptcy, or other event, may require us to purchase a significant amount of inventory at unfavorable prices resulting in lower gross margins and higher risk of carrying excess or obsolete inventory. If we are unable to secure adequate supply from alternative sources, we may have to redesign our products, which may lead to a delay in manufacturing and a possible loss of sales. | |
Derivative Instruments | |
Derivative instruments are recorded on the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded each period in current operations or in shareholders' equity as other comprehensive income (loss), depending upon whether the derivative is designated as a hedge transaction and, if it is, the effectiveness of the hedge. At the inception of the contract, the Company designates foreign currency forward exchange contracts as either a cash flow hedge of certain forecasted foreign currency denominated sales and purchase transactions or as an economic hedge. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in shareholders' equity as other comprehensive income (loss), and reclassified into current operations in the same period during which the hedged transaction affects current operations and in the same financial statement line item as that of the forecasted transaction. Cash flow hedges are evaluated for effectiveness quarterly. Any hedge ineffectiveness (which represents the amount by which the changes in the fair value of the derivative exceed the variability in the cash flows of the forecasted transaction) is recorded in current operations in the period in which ineffectiveness is determined. Changes in the fair value of the Company’s economic hedges (not designated as a cash flow hedge) are reported in current operations. The cash flows from derivative instruments are presented in the same category on the Consolidated Statements of Cash Flows as the category for the cash flows from the hedged item. Generally, this accounting policy election results in cash flows related to derivative instruments being classified as an operating activity on the Consolidated Statements of Cash Flows. | |
The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific forecasted transactions. The Company also formally assesses (both at the hedge’s inception and on an ongoing basis) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value or cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. When it is determined that a derivative is not (or has ceased to be) highly effective as a hedge, the Company discontinues hedge accounting prospectively, as discussed below. | |
The Company discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (2) the derivative expires or is sold, terminated, or exercised; (3) it is no longer probable that the forecasted transaction will occur; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate or desired. When the Company discontinues hedge accounting because it is no longer probable that the forecasted transaction will occur in the originally expected period, the gain or loss on the derivative remains in accumulated other comprehensive income (loss) and is reclassified into current operations when the forecasted transaction affects current operations. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gain or loss that was accumulated in other comprehensive income (loss) is recognized immediately in current operations. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company carries the derivative at fair value on the Consolidated Balance Sheets, recognizing changes in the fair value in current operations, unless it is designated in a new hedging relationship. | |
The Company recognizes all derivative instruments as either current assets or current liabilities at fair value on the Consolidated Balance Sheets. When the Company is engaged in more than one outstanding derivative contract with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, the “net” mark-to-market exposure represents the netting of the positive and negative exposures with that counterparty. Accordingly, cash flow hedges are presented net on the Consolidated Balance Sheets. |
New_Pronouncements
New Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
New Pronouncements | New Pronouncements |
Accounting Standards Update (ASU) 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” | |
ASU 2014-08 defines a discontinued operation as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. A strategic shift could include a disposal of (1) a major geographical area of operations, (2) a major line of business, (3) a major equity method investment, or (4) other major parts of an entity. In addition, having significant continuing involvement with a component after a disposal or failing to eliminate the operations or cash flows of a disposed component from an entity’s ongoing operations will no longer preclude presentation as a discontinued operation. The ASU will require new disclosures related to discontinued operations and to disposals of individually significant components that do not qualify as discontinued operations. The guidance in ASU 2014-08 applies prospectively to new disposals of components and new classifications as held for sale beginning in 2015 for most entities, with early adoption allowed. Management is in the process of evaluating the impact of this update. | |
Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers” | |
The amendments in ASU 2014-09 will supersede and replace all currently existing U.S. GAAP, including industry-specific revenue recognition guidance, with a single, principle-based revenue recognition framework. The concept guiding this new model is that revenue recognition will depict transfer of control to the customer in an amount that reflects consideration to which an entity expects to be entitled. The core principles supporting this framework include (1) identifying the contract with a customer, (2) identifying separate performance obligations within the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations, and (5) recognizing revenue. This new framework will require entities to apply significantly more judgment. This increase in management judgment will require expanded disclosure on estimation methods, inputs, and assumptions for revenue recognition. The guidance in ASU 2014-09 is effective for public companies for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. Management is in the process of evaluating the impact of this update. | |
Accounting Standards Update (ASU) 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" | |
ASU 2014-15 requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. The entity must provide certain disclosures if "conditions or events raise substantial doubt about the entity's ability to continue as a going concern." The ASU will require management to disclose principal conditions or events contributing to the "doubt" to continue as a going concern, as well as management's evaluations and plans to try to alleviate these uncertainties. The guidance in ASU 2014-15 applies to all entities and is effective for annual periods beginning after December 15, 2015, and interim periods thereafter. Early adoption is permitted. Given the Company's financial condition, management does not expect ASU 2014-15 to have a significant impact on our disclosures. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Fair Value Measurements | Fair Value Measurements | |||||||
Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | ||||||||
The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 (in thousands): | ||||||||
Quoted Prices in | Significant Other | |||||||
Active Markets | Observable | |||||||
for Identical | Inputs (Level 2) | |||||||
Assets (Level 1) | ||||||||
Assets: | ||||||||
Money market instruments | $ | 777 | $ | — | ||||
Corporate bonds | — | 247,183 | ||||||
Treasury bills | — | 90,412 | ||||||
Asset-backed securities | — | 63,867 | ||||||
Euro liquidity fund | — | 48,235 | ||||||
Agency bonds | — | 16,449 | ||||||
Sovereign bonds | — | 13,461 | ||||||
Municipal bonds | — | 7,837 | ||||||
Supranational bonds | — | 1,901 | ||||||
Cash flow hedge forward contracts | — | 108 | ||||||
Economic hedge forward contracts | — | 6 | ||||||
Liabilities: | ||||||||
Cash flow hedge forward contracts | — | 84 | ||||||
Economic hedge forward contracts | — | 13 | ||||||
The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1. | ||||||||
The Company’s debt securities and forward contracts are reported at fair value based upon model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial assets and liabilities, and in doing so, considers valuations provided by a large, third-party pricing service. For debt securities, this service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks. | ||||||||
The Company did not record an other-than-temporary impairment of these financial assets or liabilities in 2014, 2013, or 2012. | ||||||||
Financial Assets that are Measured at Fair Value on a Non-recurring Basis | ||||||||
The Company has an interest in a limited partnership, which is accounted for using the cost method and is required to be measured at fair value on a non-recurring basis. Management is responsible for estimating the fair value of this investment, and in doing so, considers valuations of the partnership’s investments as determined by the General Partner. Publicly-traded investments in active markets are reported at the market closing price less a discount, as appropriate, to reflect restricted marketability. Fair value for private investments for which observable market prices in active markets do not exist is based upon the best information available including the value of a recent financing, reference to observable valuation measures for comparable companies (such as revenue multiples), public or private transactions (such as the sale of a comparable company), and valuations for publicly-traded comparable companies. The valuations also incorporate the General Partner’s own judgment and close familiarity with the business activities of each portfolio company. Significant increases or decreases in any of these inputs in isolation may result in a significantly lower or higher fair value measurement. The portfolio consists of securities of public and private companies, and consequently, inputs used in the fair value calculation are classified as Level 3. The Company did not record an other-than-temporary impairment of this investment in 2014, 2013, or 2012. | ||||||||
Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis | ||||||||
Non-financial assets such as property, plant, and equipment, intangible assets, and goodwill are required to be measured at fair value only when an impairment loss is recognized. The Company did not record an impairment charge related to these assets in 2014, 2013, or 2012. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents, and Investments | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments | |||||||||||||||||||||||||||
Cash, cash equivalents, and investments consisted of the following (in thousands): | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Cash | $ | 54,917 | $ | 40,124 | ||||||||||||||||||||||||
Money market instruments | 777 | 520 | ||||||||||||||||||||||||||
Cash and cash equivalents | 55,694 | 40,644 | ||||||||||||||||||||||||||
Euro liquidity fund | 48,235 | — | ||||||||||||||||||||||||||
Corporate bonds | 30,889 | 109,040 | ||||||||||||||||||||||||||
Agency bonds | 6,883 | 1,499 | ||||||||||||||||||||||||||
Supranational bonds | 1,901 | — | ||||||||||||||||||||||||||
Asset-backed securities | 1,311 | 53,559 | ||||||||||||||||||||||||||
Municipal bonds | 1,237 | 9,276 | ||||||||||||||||||||||||||
Sovereign bonds | — | 11,448 | ||||||||||||||||||||||||||
Short-term investments | 90,456 | 184,822 | ||||||||||||||||||||||||||
Corporate bonds | 216,294 | 109,909 | ||||||||||||||||||||||||||
Treasury bills | 90,412 | 73,666 | ||||||||||||||||||||||||||
Asset-backed securities | 62,556 | 21,820 | ||||||||||||||||||||||||||
Sovereign bonds | 13,461 | 16,385 | ||||||||||||||||||||||||||
Agency bonds | 9,566 | — | ||||||||||||||||||||||||||
Municipal bonds | 6,600 | 5,919 | ||||||||||||||||||||||||||
Limited partnership interest (accounted for using cost method) | 1,956 | 1,956 | ||||||||||||||||||||||||||
Long-term investments | 400,845 | 229,655 | ||||||||||||||||||||||||||
$ | 546,995 | $ | 455,121 | |||||||||||||||||||||||||
The Company’s cash balance included foreign bank balances totaling $43,732,000 and $32,096,000 as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
The Euro liquidity fund invests in a portfolio of investment-grade bonds; corporate bonds consist of debt securities issued by both domestic and foreign companies; agency bonds consist of domestic or foreign obligations of government agencies and government- sponsored enterprises that have government backing; supranational bonds consist of direct debt issued by two or more foreign central governments; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; municipal bonds consist of debt securities issued by state and local government entities; treasury bills consist of debt securities issued by both the U.S. and foreign governments; and sovereign bonds consist of direct debt issued by foreign governments. The Euro liquidity fund is denominated in Euros, and the remaining securities are denominated in U.S. Dollars. | ||||||||||||||||||||||||||||
The following tables summarize the Company’s available-for-sale investments as of December 31, 2014 (in thousands): | ||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||||
Euro liquidity fund | $ | 48,229 | $ | 6 | $ | — | $ | 48,235 | ||||||||||||||||||||
Corporate bonds | 30,842 | 50 | (3 | ) | 30,889 | |||||||||||||||||||||||
Agency bonds | 6,883 | — | — | 6,883 | ||||||||||||||||||||||||
Supranational bonds | 1,900 | 1 | — | 1,901 | ||||||||||||||||||||||||
Asset-backed securities | 1,311 | — | — | 1,311 | ||||||||||||||||||||||||
Municipal bonds | 1,232 | 5 | — | 1,237 | ||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||||
Corporate bonds | 216,404 | 442 | (552 | ) | 216,294 | |||||||||||||||||||||||
Treasury bills | 90,458 | 8 | (54 | ) | 90,412 | |||||||||||||||||||||||
Asset-backed securities | 62,590 | 18 | (52 | ) | 62,556 | |||||||||||||||||||||||
Sovereign bonds | 13,461 | 11 | (11 | ) | 13,461 | |||||||||||||||||||||||
Agency bonds | 9,570 | 4 | (8 | ) | 9,566 | |||||||||||||||||||||||
Municipal bonds | 6,567 | 33 | — | 6,600 | ||||||||||||||||||||||||
$ | 489,447 | $ | 578 | $ | (680 | ) | $ | 489,345 | ||||||||||||||||||||
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2014 (in thousands): | ||||||||||||||||||||||||||||
Unrealized Loss | Unrealized Loss | Total | ||||||||||||||||||||||||||
Position For Less than | Position For Greater than | |||||||||||||||||||||||||||
12 Months | 12 Months | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||
Corporate bonds | $ | 126,038 | $ | (555 | ) | $ | — | $ | — | $ | 126,038 | $ | (555 | ) | ||||||||||||||
Treasury bills | 70,901 | (54 | ) | — | — | 70,901 | (54 | ) | ||||||||||||||||||||
Asset-backed securities | 33,603 | (36 | ) | 3,487 | (16 | ) | 37,090 | (52 | ) | |||||||||||||||||||
Agency bonds | 7,135 | (8 | ) | — | — | 7,135 | (8 | ) | ||||||||||||||||||||
Sovereign bonds | 6,553 | (11 | ) | — | — | 6,553 | (11 | ) | ||||||||||||||||||||
$ | 244,230 | $ | (664 | ) | $ | 3,487 | $ | (16 | ) | $ | 247,717 | $ | (680 | ) | ||||||||||||||
As of December 31, 2014, the Company did not recognize an other-than-temporary impairment of these investments. In its evaluation, management considered the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. The Company does not intend to sell, and is unlikely to be required to sell, any of these available-for-sale investments before its effective maturity or market price recovery. | ||||||||||||||||||||||||||||
The Company recorded gross realized gains on the sale of debt securities totaling $843,000 in 2014, $508,000 in 2013, and $1,990,000 in 2012, and gross realized losses on the sale of debt securities totaling $170,000 in 2014, $194,000 in 2013, and $295,000 in 2012. These gains and losses are included in "Investment income" on the Consolidated Statement of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, are recorded in shareholders’ equity as other comprehensive income (loss). | ||||||||||||||||||||||||||||
The following table presents the effective maturity dates of the Company’s available-for-sale investments as of December 31, 2014 (in thousands): | ||||||||||||||||||||||||||||
<1 Year | 1-2 Years | 2-3 Years | 3-4 Years | 4-5 Years | 5-8 Years | Total | ||||||||||||||||||||||
Corporate bonds | $ | 30,889 | $ | 82,238 | $ | 97,921 | $ | 19,718 | $ | 16,417 | $ | — | $ | 247,183 | ||||||||||||||
Treasury bills | — | 85,629 | 4,783 | — | — | — | 90,412 | |||||||||||||||||||||
Asset-backed securities | 1,311 | 4,788 | 19,542 | 23,815 | 8,967 | 5,444 | 63,867 | |||||||||||||||||||||
Euro liquidity fund | 48,235 | — | — | — | — | — | 48,235 | |||||||||||||||||||||
Agency bonds | 6,883 | 4,506 | 5,060 | — | — | — | 16,449 | |||||||||||||||||||||
Sovereign bonds | — | 9,768 | 3,693 | — | — | — | 13,461 | |||||||||||||||||||||
Municipal bonds | 1,237 | 1,719 | 4,881 | — | — | — | 7,837 | |||||||||||||||||||||
Supranational bonds | 1,901 | — | — | — | — | — | 1,901 | |||||||||||||||||||||
$ | 90,456 | $ | 188,648 | $ | 135,880 | $ | 43,533 | $ | 25,384 | $ | 5,444 | $ | 489,345 | |||||||||||||||
The Company is a Limited Partner in Venrock Associates III, L.P. (Venrock), a venture capital fund. The Company has committed to a total investment in the limited partnership of up to $20,500,000, with the commitment period expiring December 31, 2015. As of December 31, 2014, the Company contributed $19,886,000 to the partnership. The remaining commitment of $614,000 can be called by Venrock at any time before December 31, 2015. Contributions and distributions are at the discretion of Venrock’s management. No contributions were made and no distributions were received in 2014. The Company received stock distributions totaling $362,000 in 2013 and $2,193,000 in 2012. The Company immediately liquidated these stocks for proceeds of $347,000 and $2,128,000, respectively, resulting in realized losses of $15,000 and $65,000 in 2013 and 2012, respectively. Cash distributions in the amount of $1,422,000 were also received in 2013. All distributions are accounted for as return of capital. As of December 31, 2014, the carrying value of this investment was $1,956,000 compared to an estimated fair value of $6,200,000. | ||||||||||||||||||||||||||||
In 2012, the Company purchased stock in a publicly-traded U.S. Company for $2,136,000, which was accounted for as a trading security. As of December 31, 2012, the Company recorded an unrealized loss of $5,000 on this investment. In 2013, the Company sold all shares of this security at an aggregate fair value of $1,429,000, resulting in a realized loss of $702,000. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 23,498 | $ | 13,101 | ||||
Work-in-process | 5,753 | 4,472 | ||||||
Finished goods | 6,285 | 8,121 | ||||||
$ | 35,536 | $ | 25,694 | |||||
Property_Plant_and_Equipment
Property, Plant, and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant, and Equipment | Property, Plant, and Equipment | |||||||
Property, plant, and equipment consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Land | $ | 3,951 | $ | 3,951 | ||||
Buildings | 23,815 | 18,371 | ||||||
Building improvements | 20,985 | 15,711 | ||||||
Leasehold improvements | 5,738 | 5,185 | ||||||
Computer hardware and software | 31,816 | 29,353 | ||||||
Manufacturing test equipment | 15,133 | 14,715 | ||||||
Furniture and fixtures | 4,130 | 3,917 | ||||||
105,568 | 91,203 | |||||||
Less: accumulated depreciation | (57,661 | ) | (54,067 | ) | ||||
$ | 47,907 | $ | 37,136 | |||||
On December 29, 2014, the Company purchased a building in Cork, Ireland for 4,500,000 Euros (approximately $5,444,000) where the Company had previously leased space for several years and that serves as the distribution center for MVSD customers outside of the Americas. 450,000 Euros of the purchase price was paid in December 2014. The remaining 4,050,000 Euros were paid in early February 2015 and is included in "Accounts payable" on the Consolidated Balance Sheet at December 31, 2014. | ||||||||
The cost of property, plant, and equipment totaling $2,620,000 and $1,616,000 was removed from both the asset and accumulated depreciation balances in 2014 and 2013, respectively. Losses on these disposals were immaterial in both periods. | ||||||||
Buildings include rental property with a cost basis of $5,750,000 as of December 31, 2014 and 2013, and accumulated depreciation of $2,627,000 and $2,480,000 as of December 31, 2014 and 2013, respectively. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Intangible Assets | Intangible Assets | |||||||||||
Amortized intangible assets consisted of the following (in thousands): | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Value | Value | |||||||||||
Distribution networks | $ | 38,060 | $ | 31,765 | $ | 6,295 | ||||||
Customer contracts and relationships | 6,690 | 5,877 | 813 | |||||||||
Completed technologies | 4,420 | 877 | 3,543 | |||||||||
Other | 370 | 322 | 48 | |||||||||
Balance as of December 31, 2014 | $ | 49,540 | $ | 38,841 | $ | 10,699 | ||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Value | Value | |||||||||||
Distribution networks | $ | 38,060 | $ | 28,479 | $ | 9,581 | ||||||
Customer contracts and relationships | 6,690 | 5,661 | 1,029 | |||||||||
Completed technologies | 4,420 | 407 | 4,013 | |||||||||
Other | 370 | 270 | 100 | |||||||||
Balance as of December 31, 2013 | $ | 49,540 | $ | 34,817 | $ | 14,723 | ||||||
Estimated amortization expense for each of the five succeeding fiscal years and thereafter is as follows (in thousands): | ||||||||||||
Year Ending December 31, | Amount | |||||||||||
2015 | $ | 4,366 | ||||||||||
2016 | 3,427 | |||||||||||
2017 | 1,618 | |||||||||||
2018 | 913 | |||||||||||
2019 | 375 | |||||||||||
Thereafter | — | |||||||||||
$ | 10,699 | |||||||||||
Goodwill
Goodwill | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill | Goodwill | |||||||||||
The Company has two reporting units with goodwill, the Modular Vision Systems Division (MVSD) and the Surface Inspection Systems Division (SISD), which are also reportable segments. | ||||||||||||
The changes in the carrying value of goodwill were as follows (in thousands): | ||||||||||||
MVSD | SISD | Consolidated | ||||||||||
Balance as of December 31, 2012 | $ | 77,388 | $ | 4,301 | $ | 81,689 | ||||||
Foreign currency exchange rate changes | — | — | — | |||||||||
Balance as of December 31, 2013 | 77,388 | 4,301 | 81,689 | |||||||||
Foreign currency exchange rate changes | — | — | — | |||||||||
Balance as of December 31, 2014 | $ | 77,388 | $ | 4,301 | $ | 81,689 | ||||||
For its 2014 analysis of goodwill, management elected to perform a qualitative assessment. Based upon this assessment, management does not believe that it is more likely than not that the carrying value of either reporting unit exceeds its fair value. Factors that management considered in this assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management or strategy, and changes in the composition or carrying amount of net assets. In addition, management took into consideration the goodwill valuation performed under the last quantitative analysis as of October 4, 2010. At that date, the fair value of the MVSD unit exceeded its carrying value by approximately 208%, while the fair value of the SISD unit exceeded its carrying value by approximately 119%. As of December 31, 2014, management does not believe any qualitative factors exist that would change the conclusion of their assessment. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Expenses | Accrued Expenses | |||||||
Accrued expenses consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Company bonuses | $ | 9,294 | $ | 6,880 | ||||
Salaries, commissions, and payroll taxes | 5,802 | 6,111 | ||||||
Vacation | 5,076 | 4,598 | ||||||
Warranty obligations | 4,494 | 3,016 | ||||||
Foreign retirement obligations | 3,626 | 3,726 | ||||||
Japanese consumption taxes | 2,286 | 1,372 | ||||||
Other | 9,371 | 8,628 | ||||||
$ | 39,949 | $ | 34,331 | |||||
The changes in the warranty obligation were as follows (in thousands): | ||||||||
Balance as of December 31, 2012 | $ | 2,256 | ||||||
Provisions for warranties issued during the period | 2,770 | |||||||
Fulfillment of warranty obligations | (2,114 | ) | ||||||
Foreign exchange rate changes | 104 | |||||||
Balance as of December 31, 2013 | 3,016 | |||||||
Provisions for warranties issued during the period | 5,250 | |||||||
Fulfillment of warranty obligations | (3,354 | ) | ||||||
Foreign exchange rate changes | (418 | ) | ||||||
Balance as of December 31, 2014 | $ | 4,494 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | Commitments and Contingencies | ||||
Commitments | |||||
As of December 31, 2014, the Company had outstanding purchase orders totaling $4,748,000 to purchase inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate to expected sales in 2015. | |||||
The Company conducts certain of its operations in leased facilities. These lease agreements expire at various dates through 2023 and are accounted for as operating leases. Certain of these leases contain renewal options, retirement obligations, escalation clauses, rent holidays, and leasehold improvement incentives. Annual rental expense totaled $6,021,000 in 2014, $5,772,000 in 2013, and $5,806,000 in 2012. Future minimum rental payments under these agreements are as follows (in thousands): | |||||
Year Ending December 31, | Amount | ||||
2015 | $ | 5,315 | |||
2016 | 3,309 | ||||
2017 | 2,050 | ||||
2018 | 1,490 | ||||
2019 | 1,416 | ||||
Thereafter | 2,217 | ||||
$ | 15,797 | ||||
The Company owns buildings adjacent to its corporate headquarters that are currently occupied with tenants who have lease agreements that expire at various dates through 2021. Annual rental income totaled $1,794,000 in 2014, $676,000 in 2013, and $854,000 in 2012. Rental income and related expenses are included in “Other income (expense)” on the Consolidated Statements of Operations. Future minimum rental receipts under non-cancelable lease agreements are as follows (in thousands): | |||||
Year Ending December 31, | Amount | ||||
2015 | $ | 1,678 | |||
2016 | 1,675 | ||||
2017 | 1,415 | ||||
2018 | 1,009 | ||||
2019 | 1,035 | ||||
Thereafter | 1,417 | ||||
$ | 8,229 | ||||
Contingencies | |||||
In May 2008, the Company filed a complaint against MvTec Software GmbH, MvTec LLC, and Fuji America Corporation in the United States District Court for the District of Massachusetts alleging infringement of certain patents owned by the Company. In May 2014, the parties mutually agreed to dismiss this action with prejudice. This matter is now closed. | |||||
In May 2009, the Company pre-filed a complaint with the United States International Trade Commission (ITC) pursuant to Section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. §1337, against MvTec Software GmbH, MvTec LLC, Fuji America, and several other respondents alleging unfair methods of competition and unfair acts in the unlawful importation into the United States, sale for importation, or sale within the United States after importation. By this filing, the Company requested the ITC to investigate the Company’s contention that certain machine vision software, machine vision systems, and products containing the same infringe, and respondents directly infringe and/or actively induce and/or contribute to the infringement in the United States, of one or more of the Company’s U.S. patents. In September 2009, the Company reached a settlement with two of the respondents, and in December 2009, the Company reached a settlement with five additional respondents. In March 2010, the Company reached a settlement with respondent Fuji Machine Manufacturing Co., Ltd. and its subsidiary Fuji America Corporation. These settlements did not have a material impact on the Company’s financial results. An ITC hearing was held in May 2010. In July 2010, the Administrative Law Judge issued an initial determination finding two of the Company’s patents invalid and that respondents did not infringe the patents-at-issue. In September 2010, the ITC issued a notice that it would review the initial determination of the Administrative Law Judge. The ITC issued its Final Determination in November 2010 in which it determined to modify-in-part and affirm-in-part the Administrative Law Judge’s determination, and terminate the investigation with a finding of no violation of Section 337 of the Tariff Act of 1930 (as amended 19 U.S.C. §1337). The Company filed an appeal of the decision with the United States Court of Appeals for the Federal Circuit. An oral hearing before the United States Court of Appeals occurred in February 2012. In December 2013, the Federal Circuit affirmed the ITC’s finding of non-infringement, and therefore did not also need to address the ITC’s finding regarding validity. This matter is now closed. | |||||
In March 2013, the Company filed a lawsuit against Microscan Systems, Inc. (“Microscan”) and Code Corporation in the United States District Court for the Southern District of New York alleging that Microscan’s Mobile Hawk handheld imager infringes U.S. Patent 7,874,487 owned by the Company (the “'487 patent”). The lawsuit sought to prohibit Code Corporation from manufacturing the product, and Microscan from selling and distributing the product. The Company also sought monetary damages resulting from the alleged infringement. Late in the day on April 30, 2014, the jury found that Microscan willfully infringed the ‘487 patent and awarded Cognex $2.6 million in damages. Following the verdict, Microscan filed motions requesting judgment as a matter of law on the issues of infringement, invalidity, and willfulness, as well as a motion to dismiss for lack of standing. The Company filed motions seeking treble damages (based on the finding of willfulness), attorneys’ fees as an exceptional case, and a permanent injunction against future infringement of the ‘487 patent and the import, manufacture and/or sale of Microscan’s Mobile Hawk product within the U.S. In June 2014, the court issued an order denying all of Microscan’s motions and the Company’s motion for treble damages, while granting the Company’s motion for permanent injunction (limited to enjoining future infringement of the ‘487 patent and the import, manufacture and/or sale of infringing versions of Microscan’s Mobile Hawk product within the U.S.) and the Company’s motion for attorneys’ fees, in part, pending a determination thereof following submission of supplemental briefs by both parties. In July 2014, Microscan filed a Notice of Appeal with the Federal Circuit appealing all orders, findings, and/or conclusions of the District Court that were adverse to Microscan. In August 2014, the Company filed a Notice of Appeal with the Federal Circuit appealing the order granting summary judgment that claims 23, 28, and 29 of the ’487 patent are invalid. Also in August 2014, the Federal Circuit consolidated Microscan’s appeal and the Company’s appeal. In November 2014, the Company filed an unopposed motion to dismiss the Company's appeal, and in December 2014, the Court of Appeals granted the Company's motion to dismiss the Company's appeal. In January 2015, Microscan submitted their appeal brief asserting that the damage award should be vacated, the infringement judgment should be reversed, and that the remaining '487 claims are invalid. | |||||
In August 2014, Microscan filed a lawsuit against the Company in the United States District Court for the Southern District of New York alleging that the Company’s DataMan® 8500 handheld imager infringes U.S. Patent 6,352,204 (the “'204 patent”). The lawsuit sought to prohibit the Company from manufacturing, selling, and distributing the DataMan® 8500 product. Microscan also sought monetary damages resulting from the alleged infringement. In September 2014, the Company filed an Answer to the Complaint denying all allegations and asserting in a counterclaim that the ’204 patent is invalid. In October 2014, the Company filed an Amended Answer further explaining its counterclaim of invalidity. Also in October 2014, Microscan filed an Amended Complaint alleging that the Company’s DataMan® 7500 and DataMan® 8600 also infringe the ’204 patent. The Company subsequently responded in October 2014 with its Answer to the Amended Complaint. In December 2014, a Markman hearing regarding the legal construction of the relevant patent claim terms was held. In January 2015, the Court issued an order construing such patent claim terms, as the case continues to proceed. In early February 2015, the Company submitted summary judgment motions. Trial is scheduled to begin in April 2015. This matter is ongoing. | |||||
The Company cannot predict the outcome of the above-referenced pending matter and an adverse resolution of this lawsuit could have a material adverse effect on the Company’s financial position, liquidity, results of operations, and/or indemnification obligations. In addition, various other claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these incidental matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations. |
Guarantees
Guarantees | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Guarantees [Abstract] | |||||
Guarantees | Guarantees | ||||
In the ordinary course of business, the Company enters into guarantee contracts with certain customers, generally in the Company’s Surface Inspection Systems Division (SISD) business. These guarantees are collateralized by standby letters of credit (LOC) which can be grouped into three categories: (1) bank guarantees which may require the Company to return a customer’s initial payment if the Company cannot deliver the order; (2) warranty bonds which may require the Company to resolve warranty issues within a specified time period; and (3) performance bonds which include a combination of the above two options. The type of LOC is generally determined based upon customer request and the guarantee amount represents the maximum potential amount of future payments. All of the Company’s LOCs are with the same counterparty and they do not contain any recourse provisions or collateral obligations. | |||||
The following table details the letters of credit outstanding as of December 31, 2014 (in thousands): | |||||
Type | Guarantee Amount | Guarantee due date | |||
Bank Guarantees | $ | 990 | Various from January 2015 to August 2016 | ||
Warranty Bonds | 713 | Various from January 2015 to October 2016 | |||
Performance Bonds | 424 | Various from January 2015 to December 2017 | |||
$ | 2,127 | ||||
The Company evaluates losses for guarantees under accounting for contingencies. The Company considers such factors as the degree of probability that the Company would be required to satisfy the liability and the ability to make a reasonable estimate of the loss. To date, the Company has not incurred any losses as a result of these obligations, and therefore, has not recorded any liability related to such obligation in its financial statements. The fair value of the Company’s outstanding guarantees is immaterial for all periods presented. |
Indemnification_Provisions
Indemnification Provisions | 12 Months Ended |
Dec. 31, 2014 | |
Guarantees [Abstract] | |
Indemnification Provisions | Indemnification Provisions |
Except as limited by Massachusetts law, the by-laws of the Company require it to indemnify certain current or former directors, officers, and employees of the Company against expenses incurred by them in connection with each proceeding in which he or she is involved as a result of serving or having served in certain capacities. Indemnification is not available with respect to a proceeding as to which it has been adjudicated that the person did not act in good faith in the reasonable belief that the action was in the best interests of the Company. The maximum potential amount of future payments the Company could be required to make under these provisions is unlimited. The Company has never incurred significant costs related to these indemnification provisions. As a result, the Company believes the estimated fair value of these provisions is minimal. | |
In the ordinary course of business, the Company may accept standard limited indemnification provisions in connection with the sale of its products, whereby it indemnifies its customers for certain direct damages incurred in connection with third-party patent or other intellectual property infringement claims with respect to the use of the Company’s products. The term of these indemnification provisions generally coincides with the customer’s use of the Company’s products. The maximum potential amount of future payments the Company could be required to make under these provisions is generally subject to fixed monetary limits. The Company has never incurred significant costs to defend lawsuits or settle claims related to these indemnification provisions. As a result, the Company believes the estimated fair value of these provisions is minimal. | |
In the ordinary course of business, the Company also accepts limited indemnification provisions from time to time, whereby it indemnifies customers for certain direct damages incurred in connection with bodily injury and property damage arising from the installation of the Company’s products. The term of these indemnification provisions generally coincides with the period of installation. The maximum potential amount of future payments the Company could be required to make under these provisions is generally limited and is likely recoverable under the Company’s insurance policies. As a result of this coverage, and the fact that the Company has never incurred significant costs to defend lawsuits or settle claims related to these indemnification provisions, the Company believes the estimated fair value of these provisions is minimal. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Derivative Instruments | Derivative Instruments | |||||||||||||||||||
The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. Currently, the Company enters into two types of hedges to manage this risk. The first are economic hedges which utilize foreign currency forward contracts with maturities of up to 45 days to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are intended to be offset by the changes in the fair value of the assets and liabilities being hedged. These economic hedges are not designated as hedging instruments for hedge accounting treatment. The second are cash flow hedges which utilize foreign currency forward contracts with maturities of up to 18 months to hedge specific forecasted transactions of the Company's foreign subsidiaries with the goal of protecting our budgeted revenues and expenses against foreign currency exchange rate changes compared to our budgeted rates. These cash flow hedges are designated as hedging instruments for hedge accounting treatment. | ||||||||||||||||||||
The Company had the following outstanding forward contracts (in thousands): | ||||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||
Currency | Notional Value | USD Equivalent | Notional Value | USD Equivalent | ||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Japanese Yen | 1,225,000 | $ | 10,211 | 625,000 | $ | 6,122 | ||||||||||||||
Hungarian Forint | 803,000 | 3,099 | 570,175 | 2,603 | ||||||||||||||||
Singapore Dollar | 3,515 | 2,564 | 2,867 | 2,346 | ||||||||||||||||
British Pound | 491 | 732 | 613 | 1,010 | ||||||||||||||||
Canadian Dollar | 758 | 688 | 985 | 932 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Japanese Yen | 535,000 | $ | 4,464 | 294,500 | $ | 2,797 | ||||||||||||||
British Pound | 1,400 | 2,183 | 1,100 | 1,820 | ||||||||||||||||
Hungarian Forint | 410,000 | 1,569 | 123,000 | 568 | ||||||||||||||||
Singapore Dollar | 1,225 | 922 | — | — | ||||||||||||||||
Taiwanese Dollar | 28,000 | 883 | 27,000 | 908 | ||||||||||||||||
Korean Won | 940,000 | 858 | 650,000 | 620 | ||||||||||||||||
Euro | — | — | 2,828 | 3,887 | ||||||||||||||||
Chinese Yuan | — | — | 9,000 | 1,467 | ||||||||||||||||
Brazilian Real | — | — | 250 | 106 | ||||||||||||||||
Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance | Fair Value | Balance | Fair Value | |||||||||||||||||
Sheet | Sheet | |||||||||||||||||||
Location | 31-Dec-14 | 31-Dec-13 | Location | 31-Dec-14 | 31-Dec-13 | |||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Cash flow hedge forward contracts | Prepaid | $ | 108 | $ | 204 | Accrued | $ | 84 | $ | 98 | ||||||||||
expenses and | expenses | |||||||||||||||||||
other current | ||||||||||||||||||||
assets | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Economic hedge forward contracts | Prepaid expenses and other current assets | $ | 6 | $ | 6 | Accrued expenses | $ | 13 | $ | 24 | ||||||||||
The table below details the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands): | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | 31-Dec-13 | |||||||||||||||||
Gross amounts of recognized assets | $ | 188 | $ | 210 | Gross amounts of recognized liabilities | $ | 149 | $ | 122 | |||||||||||
Gross amounts offset | (74 | ) | — | Gross amounts offset | (52 | ) | — | |||||||||||||
Net amount of assets presented | $ | 114 | $ | 210 | Net amount of liabilities presented | $ | 97 | $ | 122 | |||||||||||
Information regarding the effect of derivative instruments, net of the underlying exposure, on the consolidated financial statements was as follows (in thousands): | ||||||||||||||||||||
Location in Financial Statements | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Gains (losses) recorded in shareholders' equity (effective portion) | Accumulated other comprehensive income (loss), net of tax | $ | 32 | $ | 104 | $ | — | |||||||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | Product revenue | (14 | ) | — | — | |||||||||||||||
Research, development, and engineering expenses | (42 | ) | — | — | ||||||||||||||||
Selling, general, and administrative expenses | 10 | — | — | |||||||||||||||||
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations | $ | (46 | ) | $ | — | $ | — | |||||||||||||
Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) | Foreign currency gain (loss) | $ | — | $ | — | $ | — | |||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Gains (losses) recognized in current operations | Foreign currency gain (loss) | $ | 540 | $ | (193 | ) | $ | (722 | ) | |||||||||||
The following table provides the changes in accumulated other comprehensive income (loss), net of tax, related to derivative instruments (in thousands): | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 104 | ||||||||||||||||||
Reclassification of net realized loss on cash flow hedges into current operations | 46 | |||||||||||||||||||
Net unrealized loss on cash flow hedges | (118 | ) | ||||||||||||||||||
Balance as of December 31, 2014 | $ | 32 | ||||||||||||||||||
Net gains expected to be reclassified from accumulated other comprehensive income (loss), net of tax, into current operations within the next twelve months are $47,000. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Shareholders’ Equity | Shareholders’ Equity |
Preferred Stock | |
The Company has 400,000 shares of authorized but unissued $.01 par value preferred stock. | |
Common Stock | |
Each outstanding share of common stock entitles the record holder to one vote on all matters submitted to a vote of the Company’s shareholders. Common shareholders are also entitled to dividends when and if declared by the Company’s Board of Directors. | |
In July 2013, the Company’s Board of Directors declared a two-for-one stock split, effected in the form of a stock dividend, on the shares of the Company’s common stock. Each shareholder of record on August 26, 2013, received an additional share of common stock for each share of common stock then held. The stock was distributed on September 16, 2013. The Company retained the current par value of $0.002 per share for all shares of common stock. Shareholders’ equity reflects the stock split by reclassifying from “Additional paid-in capital” to “Common stock” an amount equal to the par value of the additional shares arising from the split. All references in the financial statements to the number of shares outstanding, number of shares repurchased, per-share amounts, and stock option data related to the Company’s common stock have been restated to reflect the effect of the stock split for all periods presented. | |
Shareholder Rights Plan | |
The Company has adopted a Shareholder Rights Plan, the purpose of which is, among other things, to enhance the Board of Directors’ ability to protect shareholder interests and to ensure that shareholders receive fair treatment in the event any coercive takeover attempt of the Company is made in the future. The Shareholder Rights Plan could make it more difficult for a third party to acquire, or could discourage a third party from acquiring, the Company or a large block of the Company’s common stock. The following summary description of the Shareholder Rights Plan does not purport to be complete and is qualified in its entirety by reference to the Company’s Shareholder Rights Plan, which has been previously filed by the Company with the Securities and Exchange Commission as an exhibit to a Registration Statement on Form 8-A filed on December 5, 2008. | |
In connection with the adoption of the Shareholder Rights Plan, the Board of Directors of the Company declared a dividend distribution of one purchase right (a “Right”) for each outstanding share of common stock to shareholders of record as of the close of business on December 5, 2008. The Rights currently are not exercisable and are attached to and trade with the outstanding shares of common stock. Under the Shareholder Rights Plan, the Rights become exercisable if a person becomes an “acquiring person” by acquiring 15% or more of the outstanding shares of common stock or if a person commences a tender offer that would result in that person owning 15% or more of the common stock. If a person becomes an “acquiring person,” each holder of a Right (other than the acquiring person) would be entitled to purchase, at the then-current exercise price, such number of shares of the Company’s preferred stock which are equivalent to shares of common stock having twice the exercise price of the Right. If the Company is acquired in a merger or other business combination transaction after any such event, each holder of a Right would then be entitled to purchase, at the then-current exercise price, shares of the acquiring company’s common stock having a value of twice the exercise price of the Right. | |
Stock Repurchase Program | |
In April 2008, the Company’s Board of Directors authorized the repurchase of up to $50,000,000 of the Company’s common stock, primarily as a means to reduce the dilutive effect of employee stock options. Stock repurchases under this program were completed in 2013. In November 2011, the Company’s Board of Directors authorized the repurchase of up to $80,000,000 of the Company’s common stock. Purchases under this 2011 program began in 2013 upon completion of the 2008 program. As of December 31, 2014, the Company had repurchased a total of 2,243,000 shares at a cost of $80,000,000 under the 2011 program, including 1,351,000 shares at a cost of $52,095,000 in 2014. Stock repurchases under this program are now complete. In April 2014, the Company's Board of Directors authorized the repurchase of an additional $50,000,000 of the Company's common stock. Purchases under this 2014 program began in the fourth quarter of 2014 upon completion of the 2011 program. In 2014, the Company repurchased a total of 183,000 shares at a cost of $7,578,000 under this 2014 program. The Company may repurchase shares under this program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock options, stock price, share availability, and cash requirements. | |
Dividends | |
In December 2012, the Company’s Board of Directors declared and paid a dividend of $0.055 per share that would typically have been declared in the first quarter of 2013 in conjunction with the 2012 earnings release. A special dividend of $0.50 per share was also declared and paid in December 2012 to replace expected quarterly dividend declarations for the next eight quarters, beginning in 2013. The additional $0.055 dividend and the $0.50 dividend were accelerated due to the anticipated increase in the federal tax on dividends paid after December 31, 2012. Due to the accelerated payments, no cash dividends were declared or paid in 2013 or 2014. Future dividends will be declared at the discretion of the Company's Board of Directors and will depend upon such factors as the Board deems relevant, including, among other things, the Company's ability to generate positive cash flow from operations. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||
Stock Option Plans | |||||||||||||
The Company’s share-based payments that result in compensation expense consist of stock option grants and restricted stock awards. As of December 31, 2014, the Company had 9,203,289 shares available for grant. Generally, stock options are granted with an exercise price equal to the market value of the Company’s common stock at the grant date, vest over four years based upon continuous service, and expire ten years from the grant date. Restricted stock awards are granted with an exercise price equal to the market value of the Company's common stock at the time of grant. Conditions of the award may be based upon continuing employment and/or achievement of pre-established performance goals and objectives. Vesting for performance-based restricted stock awards and time-based restricted stock awards must be greater than one year and three years, respectively. | |||||||||||||
The following table summarizes the Company’s stock option activity for the year ended December 31, 2014: | |||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||||
Exercise | Remaining | (in thousands) | |||||||||||
Price | Contractual | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding as of December 31, 2013 | 6,138 | $ | 15.65 | ||||||||||
Granted | 2,115 | 39.49 | |||||||||||
Exercised | (1,232 | ) | 13.74 | ||||||||||
Forfeited or expired | (209 | ) | 20.12 | ||||||||||
Outstanding as of December 31, 2014 | 6,812 | $ | 23.26 | 7.28 | $ | 123,252 | |||||||
Exercisable as of December 31, 2014 | 2,208 | $ | 13.38 | 5.23 | $ | 61,711 | |||||||
Options vested or expected to vest at | 6,098 | $ | 22.04 | 7.08 | $ | 117,733 | |||||||
December 31, 2014 (1) | |||||||||||||
(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. | |||||||||||||
The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free rate | 2.6 | % | 2 | % | 2 | % | |||||||
Expected dividend yield | — | % | — | % | 1.2 | % | |||||||
Expected volatility | 41 | % | 42 | % | 44 | % | |||||||
Expected term (in years) | 5.4 | 5.8 | 5.7 | ||||||||||
Risk-free rate | |||||||||||||
The risk-free rate was based upon a treasury instrument whose term was consistent with the contractual term of the option. | |||||||||||||
Expected dividend yield | |||||||||||||
Generally, the current dividend yield is calculated by annualizing the cash dividend declared by the Company’s Board of Directors and dividing that result by the closing stock price on the grant date. However, in the fourth quarter of 2012, the Company paid the full annual dividends for 2013 and 2014 in advance, and therefore, the dividend yield for those years has been adjusted to zero. A dividend yield of 0.56% was estimated for future periods from 2015 through the expected life of the option. | |||||||||||||
Expected volatility | |||||||||||||
The expected volatility was based upon a combination of historical volatility of the Company’s common stock over the contractual term of the option and implied volatility for traded options of the Company’s stock. | |||||||||||||
Expected term | |||||||||||||
The expected term was derived from the binomial lattice model from the impact of events that trigger exercises over time. | |||||||||||||
The Company stratifies its employee population into two groups: one consisting of senior management and another consisting of all other employees. The Company currently expects that approximately 72% of its stock options granted to senior management and 70% of its options granted to all other employees will actually vest. Therefore, the Company currently applies an estimated forfeiture rate of 11% to all unvested options for senior management and a rate of 12% for all other employees. The Company revised its estimated forfeiture rates in the first quarter of 2014, 2013 and 2012, resulting in an increase to compensation expense of $288,000, $300,000, and $200,000 in 2014, 2013, and 2012, respectively. | |||||||||||||
The weighted-average grant-date fair value of stock options granted was $15.97 in 2014, $8.21 in 2013, and $6.58 in 2012. | |||||||||||||
The total intrinsic value of stock options exercised was $31,884,000 in 2014, $32,096,000 in 2013, and $16,296,000 in 2012. The total fair value of stock options vested was $11,627,000 in 2014, $9,717,000 in 2013, and $9,362,000 in 2012. | |||||||||||||
As of December 31, 2014, total unrecognized compensation expense related to non-vested stock options was $19,389,000, which is expected to be recognized over a weighted-average period of 1.58 years. | |||||||||||||
The following table summarizes the Company's restricted stock activity for the year ended December 31, 2014: | |||||||||||||
Shares (in thousands) | Weighted-Average Exercise Price | Aggregate Intrinsic Value (in thousands) | |||||||||||
Nonvested as of December 31, 2013 | — | $ | — | ||||||||||
Granted | 20 | 34.05 | |||||||||||
Vested | — | — | |||||||||||
Forfeited or expired | — | — | |||||||||||
Nonvested as of December 31, 2014 | 20 | $ | 34.05 | $ | 146 | ||||||||
The fair values of restricted stock awards granted were determined based upon the market value of the Company's common stock at the time of grant. The initial cost is then amortized over the period of vesting until the restrictions lapse. These restricted shares will be fully vested in 2018. Participants are entitled to dividends on restricted stock awards, but only receive those amounts if the shares vest. The sale or transfer of these shares is restricted during the vesting period. | |||||||||||||
The total stock-based compensation expense and the related income tax benefit recognized was $15,158,000 and $4,977,000, respectively, in 2014, $10,620,000 and $3,482,000, respectively, in 2013, and $8,520,000 and $2,772,000, respectively, in 2012. No compensation expense was capitalized in 2014, 2013, or 2012. | |||||||||||||
The following table details the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Product cost of revenue | $ | 1,033 | $ | 747 | $ | 581 | |||||||
Service cost of revenue | 171 | 177 | 161 | ||||||||||
Research, development, and engineering | 3,832 | 2,585 | 2,149 | ||||||||||
Selling, general, and administrative | 10,122 | 7,111 | 5,629 | ||||||||||
$ | 15,158 | $ | 10,620 | $ | 8,520 | ||||||||
Employee_Savings_Plan
Employee Savings Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Savings Plan | Employee Savings Plan |
Under the Company’s Employee Savings Plan, a defined contribution plan, U.S. employees who have attained age 21 may contribute up to 25% of their salary on a pretax basis subject to the annual dollar limitations established by the Internal Revenue Service. The Company currently contributes fifty cents for each dollar an employee contributes, with a maximum contribution of 3% of an employee’s pretax salary. Company contributions vest 20%, 40%, 60%, and 100% after two, three, four, and five years of continuous employment with the Company, respectively. Company contributions totaled $1,555,000 in 2014, $1,423,000 in 2013, and $1,362,000 in 2012. Cognex stock is not an investment alternative and Company contributions are not made in the form of Cognex stock. |
Taxes
Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Taxes | Taxes | |||||||||||
Domestic income before taxes was $41,226,000 in 2014, $29,576,000 in 2013, and $36,754,000 in 2012. Foreign income before taxes was $106,171,000 in 2014, $58,310,000 in 2013, and $49,876,000 in 2012. | ||||||||||||
The provision for income taxes consisted of the following (in thousands): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 23,484 | $ | 8,720 | $ | 11,284 | ||||||
State | 973 | 721 | 789 | |||||||||
Foreign | 4,854 | 3,167 | 5,790 | |||||||||
29,311 | 12,608 | 17,863 | ||||||||||
Deferred: | ||||||||||||
Federal | (2,569 | ) | 1,580 | 428 | ||||||||
State | 7 | 119 | 36 | |||||||||
Foreign | (837 | ) | 6 | 205 | ||||||||
(3,399 | ) | 1,705 | 669 | |||||||||
$ | 25,912 | $ | 14,313 | $ | 18,532 | |||||||
A reconciliation of the United States federal statutory corporate tax rate to the Company’s effective tax rate was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income tax provision at federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 1 | 1 | 1 | |||||||||
Foreign tax rate differential | (17 | ) | (17 | ) | (14 | ) | ||||||
Tax credit | — | (1 | ) | — | ||||||||
Discrete tax events | (1 | ) | (3 | ) | — | |||||||
Other | — | 1 | (1 | ) | ||||||||
Income tax provision | 18 | % | 16 | % | 21 | % | ||||||
The effective tax rate for 2014 included the impact of the following discrete events: (1) a decrease in tax expense of $674,000 from the final true-up of the prior year's tax accrual upon filing the actual returns, (2) a decrease in tax expense of $217,000 from the expiration of statutes of limitations for certain reserves for income tax uncertainties, (3) a decrease in tax expense of $553,000, which includes $296,000 for the release of certain tax reserves, related to the closing of the Internal Revenue Service audit of the Company for tax years 2010 and 2011, and (4) a decrease in tax expense, net of reserves, of $757,000 from the retroactive application of the 2014 research and development tax credit. The Tax Increase Prevention Act of 2014 was passed by Congress in December 2014 and the provisions under this act are to be applied retroactively to January 1, 2014. Interest and penalties included in these amounts was a decrease to tax expense of $46,000. | ||||||||||||
The effective tax rate for 2013 included the impact of the following discrete events: (1) a decrease in tax expense of $1,790,000 from the expiration of the statutes of limitations for certain reserves for income tax uncertainties, (2) an increase in tax expense of $267,000 from the final true-up of the prior year’s tax accrual upon filing the actual tax returns, and (3) a decrease in tax expense of $555,000 from the retroactive application of the 2012 research and development credit. The American Taxpayer Relief Act of 2012 was passed by Congress and signed into law on January 1, 2013 and the provisions under this act are to be applied retroactively to January 1, 2012. As a result of the law being signed on January 1, 2013, the financial impact of the retroactive provision was recorded as a discrete event in the first quarter of 2013. Interest and penalties included in these amounts was a decrease to tax expense of $854,000. | ||||||||||||
The effective tax rate for 2012 included the impact of the following discrete events: (1) a decrease in tax expense of $441,000 from the expiration of the statutes of limitations for certain reserves for income tax uncertainties, (2) an increase in tax expense of $101,000 from the write-down of a noncurrent deferred tax asset based upon a change in the tax rate in Japan, and (3) an increase in tax expense of $84,000 from the final true-up of the prior year's tax accrual upon filing the actual tax returns. Interest and penalties included in these amounts was a decrease to tax expense of $58,000. | ||||||||||||
The changes in the reserve for income taxes, excluding gross interest and penalties, were as follows (in thousands): | ||||||||||||
Balance of reserve for income taxes as of December 31, 2012 | $ | 4,024 | ||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods | 438 | |||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,048 | |||||||||||
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | — | |||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | (1,102 | ) | ||||||||||
Balance of reserve for income taxes as of December 31, 2013 | 4,408 | |||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in prior periods | (226 | ) | ||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,095 | |||||||||||
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | (15 | ) | ||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | (135 | ) | ||||||||||
Balance of reserve for income taxes as of December 31, 2014 | $ | 5,127 | ||||||||||
In the first quarter of 2014, management adopted Accounting Standards Update (ASU) 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." This ASU requires companies to present an unrecognized tax benefit, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss (NOL) carryforward or a similar tax loss or tax credit carryforward. In the first quarter of 2014, the Company reclassified a reserve for income taxes of $1,028,000 as a reduction to noncurrent deferred tax assets in compliance with this new guidance. Retroactive application was not required under this ASU, and therefore, prior periods were not restated. | ||||||||||||
The Company’s reserve for income taxes, including gross interest and penalties, was $5,651,000 as of December 31, 2014, which included $4,623,000 classified as a noncurrent liability and $1,028,000 recorded as a reduction to noncurrent deferred tax assets. The reserve for income taxes, including gross interest and penalties, was $4,765,000, as of December 31, 2013, all of which was classified as a noncurrent liability. The amount of gross interest and penalties included in these balances was $524,000 and $357,000 as of December 31, 2014 and December 31, 2013, respectively. If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period. As a result of the expiration of certain statutes of limitations, there is a potential that a portion of these reserves could be released, which would decrease income tax expense by approximately $900,000 to $1,000,000 over the next twelve months. | ||||||||||||
The Company has defined its major tax jurisdictions as the United States, Ireland, China, and Japan, and within the United States, Massachusetts and California. Within the United States, the tax years 2012 through 2013 remain open to examination by the Internal Revenue Service, while the tax years 2011 through 2013 remain open to various state taxing authorities, and the tax years 2010 through 2013 remain open to examination by various taxing authorities in other jurisdictions in which the Company operates. | ||||||||||||
In 2010, the Company concluded its Competent Authority tax case with Japan. A settlement was finalized between Japan and Ireland as a transfer price adjustment and no finding of a permanent establishment against the Company in Japan was noted. This Competent Authority agreement closed the Company’s tax years 2002 through 2005 to future examination in Japan. In 2011, the Company finalized an Advanced Pricing Agreement (APA) with Japan that will cover tax years 2006 through 2011, with a requested extension to 2012. The Company is currently in negotiations for an APA between Japan and Ireland that will cover tax years 2014 through 2018 with retroactive application to 2013. The Company believes it is adequately reserved for these open years. | ||||||||||||
Deferred tax assets consisted of the following (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Current deferred tax assets: | ||||||||||||
Inventory and revenue related | $ | 4,911 | $ | 5,614 | ||||||||
Bonuses, commissions, and other compensation | 2,280 | 1,377 | ||||||||||
Other | 1,794 | 1,292 | ||||||||||
Gross current deferred tax assets | 8,985 | 8,283 | ||||||||||
Valuation allowance | — | (672 | ) | |||||||||
Net current deferred tax assets | $ | 8,985 | $ | 7,611 | ||||||||
Noncurrent deferred tax assets: | ||||||||||||
Stock-based compensation expense | $ | 10,290 | $ | 7,488 | ||||||||
Federal and state tax credit carryforwards | 4,547 | 5,418 | ||||||||||
Depreciation | 1,945 | 1,831 | ||||||||||
Acquired completed technologies and other intangible assets | 450 | 835 | ||||||||||
Unrealized investment gains and losses | 355 | 601 | ||||||||||
Correlative tax relief and deferred interest related to reserves | 342 | 252 | ||||||||||
Other | 1,436 | 1,178 | ||||||||||
Gross noncurrent deferred tax assets | 19,365 | 17,603 | ||||||||||
Noncurrent deferred tax liabilities: | ||||||||||||
Nondeductible intangible assets | (2,430 | ) | (3,662 | ) | ||||||||
Other | — | (548 | ) | |||||||||
Gross noncurrent deferred tax liabilities | (2,430 | ) | (4,210 | ) | ||||||||
Valuation allowance | (2,483 | ) | (1,086 | ) | ||||||||
Net noncurrent deferred tax assets | $ | 14,452 | $ | 12,307 | ||||||||
In 2014, the Company recorded a valuation allowance of $725,000 for state research and development tax credits that were not considered to be realizable. Should these credits be utilized in a future period, the reserve associated with these credits would be reversed in the period when it is determined that the credits can be utilized to offset future state income tax liabilities. In addition, the Company had $5,575,000 of state research and development tax credit carryforwards, net of federal tax, as of December 31, 2014, which will begin to expire in 2016. | ||||||||||||
If certain of the Company’s tax liabilities were paid, the Company would receive correlative tax relief in other jurisdictions. Accordingly, the Company has recognized a deferred tax asset in the amount of $342,000 as of December 31, 2014, which represents this correlative tax relief and deferred interest. | ||||||||||||
The Company recorded certain intangible assets as a result of the acquisition of DVT Corporation in 2005. The amortization of these intangible assets is not deductible for U.S. tax purposes. A deferred tax liability was established to reflect the federal and state liability associated with not deducting the acquisition-related amortization expenses. The balance of this liability was $2,430,000 as of December 31, 2014. | ||||||||||||
While the deferred tax assets, net of valuation allowance, are not assured of realization, management has evaluated the realizability of these deferred tax assets and has determined that it is more likely than not that these assets will be realized. In reaching this conclusion, we have evaluated certain relevant criteria including the Company’s historical profitability, current projections of future profitability, and the lives of tax credits, net operating losses, and other carryforwards. Should the Company fail to generate sufficient pretax profits in future periods, we may be required to establish valuation allowances against these deferred tax assets, resulting in a charge to income in the period of determination. | ||||||||||||
The Company does not provide U.S. income taxes on its foreign subsidiaries’ undistributed earnings, as they are deemed to be permanently reinvested outside the United States. Non-U.S. income taxes are, however, provided on those foreign subsidiaries’ undistributed earnings. Upon repatriation, the Company would provide the appropriate U.S. income taxes on these earnings, net of applicable foreign tax credits. It is not practicable to determine the income tax liability that might be incurred if the earnings were to be distributed. | ||||||||||||
The Company recorded $354,000 and $141,000 of other income in 2013 and 2012, respectively, upon the expiration of the statutes of limitations relating to tax holidays, during which time the Company collected value-added taxes from customers that were not required to be remitted to the government authority. | ||||||||||||
Cash paid for income taxes totaled $17,549,000 in 2014, $8,831,000 in 2013, and $13,551,000 in 2012. |
Weighted_Average_Shares
Weighted Average Shares | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Weighted Average Shares | Weighted Average Shares | ||||||||
In July 2013, the Company’s Board of Directors declared a two-for-one stock split of the Company’s common stock, which was effected through a stock dividend distributed on September 16, 2013. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures reflect this two-for-one stock split. | |||||||||
Weighted-average shares were calculated as follows (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Basic weighted-average common shares outstanding | 86,858 | 86,946 | 85,666 | ||||||
Effect of dilutive stock options | 2,213 | 1,955 | 1,614 | ||||||
Diluted weighted-average common and common-equivalent shares outstanding | 89,071 | 88,901 | 87,280 | ||||||
Stock options to purchase 1,286,403, 1,385,901, and 1,790,911 shares of common stock, on a weighted-average basis, were outstanding in 2014, 2013, and 2012, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment and Geographic Information | Segment and Geographic Information | |||||||||||||||||||
The Company has two reportable segments: the Modular Vision Systems Division (MVSD) and the Surface Inspection Systems Division (SISD). MVSD develops, manufactures, and markets modular vision systems and ID products that are used to automate the manufacture and tracking of discrete items by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process. SISD develops, manufactures, and markets surface inspection vision systems that are used to inspect surfaces of materials processed in a continuous fashion, such as metals, papers, nonwoven, plastics, and glass, to ensure there are no flaws or defects on the surfaces. Segments are determined based upon the way that management organizes its business for making operating decisions and assessing performance. The Company evaluates segment performance based upon income or loss from operations, excluding stock-based compensation expense. | ||||||||||||||||||||
The following table summarizes information about the Company’s segments (in thousands): | ||||||||||||||||||||
MVSD | SISD | Reconciling | Consolidated | |||||||||||||||||
Items | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Product revenue | $ | 409,017 | $ | 42,049 | $ | 451,066 | ||||||||||||||
Service revenue | 17,432 | 17,772 | 35,204 | |||||||||||||||||
Depreciation and amortization | 10,580 | 1,138 | $ | 749 | 12,467 | |||||||||||||||
Goodwill and intangibles | 87,059 | 5,329 | — | 92,388 | ||||||||||||||||
Operating income | 156,552 | 15,598 | (28,487 | ) | 143,663 | |||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Product revenue | $ | 298,186 | $ | 28,600 | $ | 326,786 | ||||||||||||||
Service revenue | 9,465 | 17,635 | 27,100 | |||||||||||||||||
Depreciation and amortization | 9,569 | 1,078 | $ | 455 | 11,102 | |||||||||||||||
Goodwill and intangibles | 90,718 | 5,694 | — | 96,412 | ||||||||||||||||
Operating income | 99,383 | 8,990 | (22,005 | ) | 86,368 | |||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Product revenue | $ | 263,308 | $ | 32,280 | $ | 295,588 | ||||||||||||||
Service revenue | 10,388 | 18,303 | 28,691 | |||||||||||||||||
Depreciation and amortization | 9,505 | 963 | $ | 390 | 10,858 | |||||||||||||||
Goodwill and intangibles | 90,390 | 6,069 | — | 96,459 | ||||||||||||||||
Operating income | 89,378 | 11,941 | (17,912 | ) | 83,407 | |||||||||||||||
Reconciling items consist of stock-based compensation expense and unallocated corporate expenses, which primarily include corporate headquarters costs, professional fees, and patent infringement litigation. Additional asset information by segment is not produced internally for use by the chief operating decision maker, and therefore, is not presented. Additional asset information is not provided because cash and investments are commingled and the segments share assets and resources in a number of locations around the world. | ||||||||||||||||||||
The following table summarizes information about geographic areas (in thousands): | ||||||||||||||||||||
United States | Europe | Japan | Other | Total | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Product revenue | $ | 132,298 | $ | 192,463 | $ | 38,952 | $ | 87,353 | $ | 451,066 | ||||||||||
Service revenue | 15,143 | 12,536 | 4,434 | 3,091 | 35,204 | |||||||||||||||
Long-lived assets | 118,991 | 11,385 | 1,551 | 9,904 | 141,831 | |||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Product revenue | $ | 103,610 | $ | 104,497 | $ | 33,763 | $ | 84,916 | $ | 326,786 | ||||||||||
Service revenue | 13,505 | 6,012 | 4,103 | 3,480 | 27,100 | |||||||||||||||
Long-lived assets | 118,619 | 5,059 | 1,732 | 10,276 | 135,686 | |||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Product revenue | $ | 87,877 | $ | 95,376 | $ | 38,151 | $ | 74,184 | $ | 295,588 | ||||||||||
Service revenue | 13,248 | 6,083 | 5,043 | 4,317 | 28,691 | |||||||||||||||
Long-lived assets | 120,596 | 4,939 | 2,229 | 6,342 | 134,106 | |||||||||||||||
Revenue is presented geographically based upon the customer’s country of domicile. | ||||||||||||||||||||
In 2014, revenue from a single MVSD customer accounted for 14% of total revenue. In 2013 and 2012, no customer accounted for greater than 10% of total revenue. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | COGNEX CORPORATION – SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||||
Additions | |||||||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Other | Balance at | |||||||||||||||||||
Beginning | Costs and | to Other | End of | ||||||||||||||||||||||
of Period | Expenses | Accounts | Period | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Reserve for Uncollectible Accounts Receivable: | |||||||||||||||||||||||||
2014 | $ | 1,354 | $ | (60 | ) | $ | — | $ | (141 | ) | (a) | $ | (58 | ) | (b) | $ | 1,095 | ||||||||
2013 | $ | 1,131 | $ | 286 | $ | — | $ | (77 | ) | (a) | $ | 14 | (b) | $ | 1,354 | ||||||||||
2012 | $ | 1,240 | $ | 63 | $ | — | $ | (184 | ) | (a) | $ | 12 | (b) | $ | 1,131 | ||||||||||
Reserve for Excess and Obsolete Inventory: | |||||||||||||||||||||||||
2014 | $ | 4,893 | $ | 3,535 | $ | — | $ | (1,989 | ) | (a) | $ | (469 | ) | (c) | $ | 5,970 | |||||||||
2013 | $ | 3,414 | $ | 2,368 | $ | — | $ | (1,009 | ) | (a) | $ | 120 | (c) | $ | 4,893 | ||||||||||
2012 | $ | 4,359 | $ | 949 | $ | — | $ | (1,924 | ) | (a) | $ | 30 | (c) | $ | 3,414 | ||||||||||
Deferred Tax Valuation Allowance: | |||||||||||||||||||||||||
2014 | $ | 1,758 | $ | 725 | $ | — | $ | — | — | $ | 2,483 | ||||||||||||||
2013 | $ | 1,489 | $ | 642 | $ | — | $ | (373 | ) | — | $ | 1,758 | |||||||||||||
2012 | $ | 3,400 | $ | 546 | $ | — | $ | (2,457 | ) | — | $ | 1,489 | |||||||||||||
(a) | Specific write-offs | ||||||||||||||||||||||||
(b) | Collections of previously written-off accounts and foreign currency exchange rate changes | ||||||||||||||||||||||||
(c) | Foreign currency exchange rate changes |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations |
Cognex Corporation is a leading provider of machine vision products that capture and analyze visual information in order to automate tasks, primarily in manufacturing processes, where vision is required. | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the balance sheet date, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. Significant estimates and judgments include those related to revenue recognition, investments, accounts receivable, inventories, long-lived assets, goodwill, warranty obligations, contingencies, stock-based compensation, income taxes, derivative instruments, and purchase accounting. | |
Basis of Consolidation | Basis of Consolidation |
The consolidated financial statements include the accounts of Cognex Corporation and its subsidiaries, all of which are wholly-owned. All intercompany accounts and transactions have been eliminated. | |
Foreign Currency | Foreign Currency Translation |
The financial statements of the Company’s foreign subsidiaries, where the local currency is the functional currency, are translated using exchange rates in effect at the end of the year for assets and liabilities and average exchange rates during the year for results of operations. The resulting foreign currency translation adjustment, net of tax, is recorded in shareholders’ equity as other comprehensive income (loss). | |
Fair Value Measurements | Fair Value Measurements |
The Company applies a three-level valuation hierarchy for fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. Level 1 inputs to the valuation methodology utilize unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets and liabilities, quoted prices for identical and similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 inputs to the valuation methodology are unobservable inputs based upon management’s best estimate of the inputs that market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. A change to the level of an asset or liability within the fair value hierarchy is determined at the end of a reporting period. | |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments |
Money market instruments purchased with original maturities of three months or less are classified as cash equivalents and are stated at amortized cost. Debt securities with original maturities greater than three months and remaining maturities of one year or less are classified as short-term investments, as well as equity securities that the Company intends to sell within one year. Debt securities with remaining maturities greater than one year, as well as a limited partnership interest, are classified as long-term investments. It is the Company’s policy to invest in debt securities with effective maturities that do not exceed ten years. | |
Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in shareholders’ equity as other comprehensive income (loss). Equity securities that are held for short periods of time with the intention of selling them in the near term are designated as trading and are reported at fair value, with unrealized gains and losses recorded in current operations. Realized gains and losses are included in current operations, along with the amortization of the discount or premium on debt securities arising at acquisition, and are calculated using the specific identification method. The Company’s limited partnership interest is accounted for using the cost method because the Company’s investment is less than 5% of the partnership and the Company has no influence over the partnership’s operating and financial policies. Furthermore, the investment does not have a readily determinable market value, and therefore, does not qualify for fair value accounting. | |
Management monitors the carrying value of its investments in debt securities and a limited partnership interest compared to their fair value to determine whether an other-than-temporary impairment has occurred. If the fair value of a debt security is less than its amortized cost, the Company assesses whether the impairment is other-than-temporary. In considering whether a decline in fair value is other-than-temporary, we consider many factors. In its evaluation of its debt securities, management considers the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. An impairment is considered other-than-temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security. If impairment is considered other-than-temporary based upon condition (i) or (ii) described above, the entire difference between the amortized cost and the fair value of the security is recognized in current operations. If an impairment is considered other-than-temporary based upon condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security) is recognized in current operations and the amount relating to all other factors is recognized in shareholders' equity as other comprehensive income (loss). In its evaluation of its limited partnership interest, management considers the duration and extent of the decline, the length of the Company’s commitment to the investment, general economic trends, and specific communications with the General Partner. | |
Accounts Receivable | Accounts Receivable |
The Company extends credit with various payment terms to customers based upon an evaluation of their financial condition. Accounts that are outstanding longer than the payment terms are considered to be past due. The Company establishes reserves against accounts receivable for potential credit losses and records bad debt expense in current operations when it determines receivables are at risk for collection based upon the length of time the receivable has been outstanding, the customer’s current ability to pay its obligations to the Company, general economic and industry conditions, as well as various other factors. Receivables are written off against these reserves in the period they are determined to be uncollectible and payments subsequently received on previously written-off receivables are recorded as a reversal of the bad debt expense. | |
Inventories | Inventories |
Inventories are stated at the lower of cost or market. Cost is determined using standard costs, which approximates actual costs under the first-in, first-out (FIFO) method. The Company’s inventory is subject to rapid technological change or obsolescence. The Company reviews inventory quantities on hand and estimates excess and obsolescence exposures based upon assumptions about future demand, product transitions, and market conditions, and records reserves to reduce the carrying value of inventories to their net realizable value. If actual future demand is less than estimated, additional inventory write-downs would be required. | |
The Company generally disposes of obsolete inventory upon determination of obsolescence. The Company does not dispose of excess inventory immediately, due to the possibility that some of this inventory could be sold to customers as a result of differences between actual and forecasted demand. When inventory has been written down below cost, such reduced amount is considered the new cost basis for subsequent accounting purposes. As a result, the Company would recognize a higher than normal gross margin if the reserved inventory were subsequently sold. | |
Property, Plant, and Equipment | Property, Plant, and Equipment |
Property, plant, and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Buildings’ useful lives are 39 years, building improvements’ useful lives are ten years, and the useful lives of computer hardware and software, manufacturing test equipment, and furniture and fixtures range from two to five years. Leasehold improvements are depreciated over the shorter of the estimated useful lives or the remaining terms of the leases. Maintenance and repairs are expensed when incurred; additions and improvements are capitalized. Upon retirement or disposition, the cost and related accumulated depreciation of the disposed assets are removed from the accounts, with any resulting gain or loss included in current operations. | |
Intangible Assets | Intangible Assets |
Intangible assets are stated at cost and amortized over the assets’ estimated useful lives. Intangible assets are either amortized in relation to the relative cash flows anticipated from the intangible asset or using the straight-line method, depending upon facts and circumstances. The useful lives of distribution networks range from eleven to twelve years, of customer contracts and relationships from eight to twelve years, and of completed technologies and other intangible assets from three to eight years. The Company evaluates the possible impairment of long-lived assets, including intangible assets, whenever events or circumstances indicate the carrying value of the assets may not be recoverable. At the occurrence of a certain event or change in circumstances, the Company evaluates the potential impairment of an asset by estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the sum of the estimated future cash flows is less than the carrying value, the Company determines the amount of such impairment by comparing the fair value of the asset to its carrying value. The fair value is based upon the present value of the estimated future cash flows using a discount rate commensurate with the risks involved. | |
Goodwill | Goodwill |
Goodwill is stated at cost. The Company evaluates the possible impairment of goodwill annually each fourth quarter and whenever events or circumstances indicate the carrying value of the goodwill may not be recoverable. For the past four years, the Company has performed a qualitative assessment of goodwill (commonly known as “step zero”) to determine whether further impairment testing is necessary. Factors that management considers in this assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management or strategy, and changes in the composition or carrying amount of net assets. In addition, management takes into consideration the goodwill valuation under the last quantitative analysis that was performed. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would proceed to a two-step process. Step one compares the fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount exceeds the fair value of the reporting unit, step two is required to measure the amount of impairment loss. Step two compares the implied fair value of the reporting unit goodwill to the carrying amount of the goodwill. | |
Warranty Obligations | Warranty Obligations |
The Company warrants its products to be free from defects in material and workmanship for periods primarily ranging from six months to three years from the time of sale based upon the product being purchased and the terms of the customer arrangement. Warranty obligations are evaluated and recorded at the time of sale since it is probable that customers will make claims under warranties related to products that have been sold and the amount of these claims can be reasonably estimated based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or circumstances impacting product quality become known that would not have been taken into account using historical data. | |
Contingencies | Contingencies |
Loss contingencies are accrued if the loss is probable and the amount of the loss can be reasonably estimated. Legal costs associated with potential loss contingencies, such as patent infringement matters, are expensed as incurred. | |
Revenue Recognition | Revenue Recognition |
The Company’s product revenue is derived from the sale of machine vision systems, which can take the form of hardware with embedded software or software-only, and related accessories. The Company also generates revenue by providing maintenance and support, training, consulting, and installation services to its customers. Certain of the Company’s arrangements include multiple deliverables that provide the customer with a combination of products or services. In order to recognize revenue, the Company requires that a signed customer contract or purchase order is received, the fee from the arrangement is fixed or determinable, and collection of the resulting receivable is probable. Assuming that these criteria have been met, product revenue is generally recognized upon delivery, revenue from maintenance and support programs is recognized ratably over the program period, revenue from training and consulting services is recognized over the period that the services are provided, and revenue from installation services is recognized when the customer has signed off that the installation is complete. When customer-specified acceptance criteria exists that are substantive, product revenue is deferred until these criteria have been met, along with the associated incremental direct costs. | |
The majority of the Company’s product offerings consist of hardware with embedded software. Under the revenue recognition rules for tangible products, the fee from a multiple-deliverable arrangement is allocated to each of the deliverables based upon their relative selling prices as determined by a selling-price hierarchy. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. A delivered item that does not qualify as a separate unit of accounting is combined with the other undelivered items in the arrangement and revenue is recognized for those combined deliverables as a single unit of accounting. The selling price used for each deliverable is based upon vendor-specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, and management’s best estimate of selling price (BESP) if neither VSOE nor TPE are available. VSOE is the price charged for a deliverable when it is sold separately. TPE is the price of the Company’s or any competitor’s largely interchangeable products or services in stand-alone sales to similarly-situated customers. BESP is the price at which the Company would sell the deliverable if it were sold regularly on a stand-alone basis, considering market conditions and entity-specific factors. | |
The selling prices used in the relative selling price allocation method for (1) certain of the Company’s services are based upon VSOE, (2) third-party accessories available from other vendors are based upon TPE, and (3) hardware products with embedded software, custom accessories, and services for which VSOE does not exist are based upon BESP. The Company does not believe TPE exists for these products and services because they are differentiated from competing products and services in terms of functionality and performance and there are no competing products or services that are largely interchangeable. For the Company’s Modular Vision Systems Division (MVSD), BESP has been established for each product line within each region, and for the Company’s Surface Inspection Systems Division (SISD), BESP has been established for each industry within each region. Management establishes BESP with consideration for market conditions, such as the impact of competition and geographic considerations, and entity-specific factors, such as the cost of the product and the division’s profit objectives. Management believes that BESP is reflective of reasonable pricing of that deliverable as if priced on a stand-alone basis. | |
Under the revenue recognition rules for software-only products, the fee from a multiple-deliverable arrangement is allocated to each of the undelivered elements based upon VSOE, which is limited to the price charged when the same deliverable is sold separately, with the residual value from the arrangement allocated to the delivered element. The portion of the fee that is allocated to each deliverable is then recognized as revenue when the criteria for revenue recognition are met with respect to that deliverable. If VSOE does not exist for all of the undelivered elements, then all revenue from the arrangement is typically deferred until all elements have been delivered to the customer. | |
The Company’s products are sold directly to end users, as well as to resellers including original equipment manufacturers (OEMs), distributors, and integrators. Revenue is recognized upon delivery of the product to the reseller, assuming all other revenue recognition criteria have been met. The Company establishes reserves against revenue for potential product returns, since the amount of future returns can be reasonably estimated based upon experience. These reserves have historically been immaterial. | |
Amounts billed to customers related to shipping and handling, as well as reimbursements received from customers for out-of-pocket expenses, are classified as revenue, with the associated costs included in cost of revenue. | |
Research and Development | Research and Development |
Research and development costs for internally-developed or acquired products are expensed when incurred until technological feasibility has been established for the product. Thereafter, all software costs are capitalized until the product is available for general release to customers. The Company determines technological feasibility at the time the product reaches beta in its stage of development. Historically, the time incurred between beta and general release to customers has been short, and therefore, the costs have been insignificant. As a result, the Company has not capitalized software costs associated with internally-developed products. | |
Advertising Costs | Advertising Costs |
Advertising costs are expensed as incurred and totaled $1,289,000 in 2014, $1,656,000 in 2013, and $1,792,000 in 2012. | |
Stock-Based Compensation | Stock-Based Compensation |
The Company’s share-based payments that result in compensation expense consist of stock option grants and restricted stock awards. The Company has reserved a specific number of shares of its authorized but unissued shares for issuance upon the exercise of stock options or the granting of restricted stock. When a stock option is exercised or a restricted stock award is granted, the Company issues new shares from this pool. The fair values of stock options are estimated on the grant date using a binomial lattice model. Management is responsible for determining the appropriate valuation model and estimating these fair values, and in doing so, considers a number of factors, including information provided by an outside valuation advisor. | |
The Company recognizes compensation expense related to stock options using the graded attribution method, in which expense is recognized on a straight-line basis over the service period for each separately vesting portion of the stock option as if the option was, in substance, multiple awards. The amount of compensation expense recognized at the end of the vesting period is based upon the number of stock options for which the requisite service has been completed. No compensation expense is recognized for options that are forfeited for which the employee does not render the requisite service. The term “forfeitures” is distinct from “expirations” and represents only the unvested portion of the surrendered option. The Company applies estimated forfeiture rates to its unvested options to arrive at the amount of compensation expense that is expected to be recognized over the requisite service period. At the end of each separately vesting portion of an option, the expense that was recognized by applying the estimated forfeiture rate is compared to the expense that should be recognized based upon the employee’s service, and a credit to expense is recorded related to those employees that have not rendered the requisite service. | |
Taxes | Taxes |
The Company recognizes a tax position in its financial statements when that tax position, based solely upon its technical merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statutes of limitations. Derecognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. | |
Only the portion of the liability that is expected to be paid within one year is classified as a current liability. As a result, liabilities expected to be resolved without the payment of cash (e.g., resolution due to the expiration of the statutes of limitations) or are not expected to be paid within one year are not classified as current. It is the Company’s policy to record estimated interest and penalties as income tax expense and tax credits as a reduction in income tax expense. | |
Deferred tax assets and liabilities are determined based upon the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |
Sales tax in the United States and similar taxes in other jurisdictions that are collected from customers and remitted to government authorities are presented on a gross basis (i.e., a receivable from the customer with a corresponding payable to the government). Amounts collected from customers and retained by the Company during tax holidays are recognized as nonoperating income when earned. | |
Net Income Per Share | Net Income Per Share |
Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period plus potential dilutive common shares. Dilutive common equivalent shares consist of stock options and are calculated using the treasury stock method. Common equivalent shares do not qualify as participating securities. In periods where the Company records a net loss, potential common stock equivalents are not included in the calculation of diluted net loss per share. | |
Comprehensive Income | Comprehensive Income |
Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss, net of tax, as of December 31, 2014 and December 31, 2013, consists of foreign currency translation adjustments of $38,030,000 and $28,630,000, respectively; net unrealized losses on available-for-sale investments of $130,000 and $36,000, respectively; net unrealized gains on derivative instruments of $32,000 and $104,000, respectively; and losses on currency swaps, net of gains on long-term intercompany loans, of $1,271,000 and $1,271,000, respectively. | |
Amounts reclassified from accumulated other comprehensive income to investment income on the Consolidated Statements of Operations were net realized gains of $673,000, $314,000, and $1,695,000 for 2014, 2013, and 2012, respectively. | |
Concentrations of Risk | Concentrations of Risk |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments, and trade receivables. The Company has certain domestic and foreign cash balances that exceed the insured limits set by the Federal Deposit Insurance Corporation (FDIC) in the United States and equivalent regulatory agencies in foreign countries. The Company primarily invests in investment-grade debt securities and has established guidelines relative to credit ratings, diversification, and maturities of its debt securities that maintain safety and liquidity. The Company has not experienced any significant realized losses on its debt securities. | |
The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. The Company has not experienced any significant losses related to the collection of its accounts receivable. | |
A significant portion of the Company’s MVSD product is manufactured by a third-party contractor located in Indonesia. This contractor has agreed to provide Cognex with termination notification periods and last-time-buy rights, if and when that may be applicable. We rely upon this contractor to provide quality product and meet delivery schedules. We engage in extensive product quality programs and processes, including actively monitoring the performance of our third-party manufacturers. Certain components are presently available only from a single source. Certain key electronic components that are purchased from strategic suppliers, such as processors or imagers, are fundamental to the design of Cognex products. A disruption in the supply of these key components, such as a last-time-buy announcement, natural disaster, financial bankruptcy, or other event, may require us to purchase a significant amount of inventory at unfavorable prices resulting in lower gross margins and higher risk of carrying excess or obsolete inventory. If we are unable to secure adequate supply from alternative sources, we may have to redesign our products, which may lead to a delay in manufacturing and a possible loss of sales. | |
Derivative Instruments | Derivative Instruments |
Derivative instruments are recorded on the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded each period in current operations or in shareholders' equity as other comprehensive income (loss), depending upon whether the derivative is designated as a hedge transaction and, if it is, the effectiveness of the hedge. At the inception of the contract, the Company designates foreign currency forward exchange contracts as either a cash flow hedge of certain forecasted foreign currency denominated sales and purchase transactions or as an economic hedge. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in shareholders' equity as other comprehensive income (loss), and reclassified into current operations in the same period during which the hedged transaction affects current operations and in the same financial statement line item as that of the forecasted transaction. Cash flow hedges are evaluated for effectiveness quarterly. Any hedge ineffectiveness (which represents the amount by which the changes in the fair value of the derivative exceed the variability in the cash flows of the forecasted transaction) is recorded in current operations in the period in which ineffectiveness is determined. Changes in the fair value of the Company’s economic hedges (not designated as a cash flow hedge) are reported in current operations. The cash flows from derivative instruments are presented in the same category on the Consolidated Statements of Cash Flows as the category for the cash flows from the hedged item. Generally, this accounting policy election results in cash flows related to derivative instruments being classified as an operating activity on the Consolidated Statements of Cash Flows. | |
The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific forecasted transactions. The Company also formally assesses (both at the hedge’s inception and on an ongoing basis) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value or cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. When it is determined that a derivative is not (or has ceased to be) highly effective as a hedge, the Company discontinues hedge accounting prospectively, as discussed below. | |
The Company discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (2) the derivative expires or is sold, terminated, or exercised; (3) it is no longer probable that the forecasted transaction will occur; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate or desired. When the Company discontinues hedge accounting because it is no longer probable that the forecasted transaction will occur in the originally expected period, the gain or loss on the derivative remains in accumulated other comprehensive income (loss) and is reclassified into current operations when the forecasted transaction affects current operations. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gain or loss that was accumulated in other comprehensive income (loss) is recognized immediately in current operations. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company carries the derivative at fair value on the Consolidated Balance Sheets, recognizing changes in the fair value in current operations, unless it is designated in a new hedging relationship. | |
The Company recognizes all derivative instruments as either current assets or current liabilities at fair value on the Consolidated Balance Sheets. When the Company is engaged in more than one outstanding derivative contract with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, the “net” mark-to-market exposure represents the netting of the positive and negative exposures with that counterparty. Accordingly, cash flow hedges are presented net on the Consolidated Balance Sheets. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 (in thousands): | |||||||
Quoted Prices in | Significant Other | |||||||
Active Markets | Observable | |||||||
for Identical | Inputs (Level 2) | |||||||
Assets (Level 1) | ||||||||
Assets: | ||||||||
Money market instruments | $ | 777 | $ | — | ||||
Corporate bonds | — | 247,183 | ||||||
Treasury bills | — | 90,412 | ||||||
Asset-backed securities | — | 63,867 | ||||||
Euro liquidity fund | — | 48,235 | ||||||
Agency bonds | — | 16,449 | ||||||
Sovereign bonds | — | 13,461 | ||||||
Municipal bonds | — | 7,837 | ||||||
Supranational bonds | — | 1,901 | ||||||
Cash flow hedge forward contracts | — | 108 | ||||||
Economic hedge forward contracts | — | 6 | ||||||
Liabilities: | ||||||||
Cash flow hedge forward contracts | — | 84 | ||||||
Economic hedge forward contracts | — | 13 | ||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents, and Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||
Components of Cash, Cash Equivalents and Investments | Cash, cash equivalents, and investments consisted of the following (in thousands): | |||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Cash | $ | 54,917 | $ | 40,124 | ||||||||||||||||||||||||
Money market instruments | 777 | 520 | ||||||||||||||||||||||||||
Cash and cash equivalents | 55,694 | 40,644 | ||||||||||||||||||||||||||
Euro liquidity fund | 48,235 | — | ||||||||||||||||||||||||||
Corporate bonds | 30,889 | 109,040 | ||||||||||||||||||||||||||
Agency bonds | 6,883 | 1,499 | ||||||||||||||||||||||||||
Supranational bonds | 1,901 | — | ||||||||||||||||||||||||||
Asset-backed securities | 1,311 | 53,559 | ||||||||||||||||||||||||||
Municipal bonds | 1,237 | 9,276 | ||||||||||||||||||||||||||
Sovereign bonds | — | 11,448 | ||||||||||||||||||||||||||
Short-term investments | 90,456 | 184,822 | ||||||||||||||||||||||||||
Corporate bonds | 216,294 | 109,909 | ||||||||||||||||||||||||||
Treasury bills | 90,412 | 73,666 | ||||||||||||||||||||||||||
Asset-backed securities | 62,556 | 21,820 | ||||||||||||||||||||||||||
Sovereign bonds | 13,461 | 16,385 | ||||||||||||||||||||||||||
Agency bonds | 9,566 | — | ||||||||||||||||||||||||||
Municipal bonds | 6,600 | 5,919 | ||||||||||||||||||||||||||
Limited partnership interest (accounted for using cost method) | 1,956 | 1,956 | ||||||||||||||||||||||||||
Long-term investments | 400,845 | 229,655 | ||||||||||||||||||||||||||
$ | 546,995 | $ | 455,121 | |||||||||||||||||||||||||
Summary of Available-for-Sale Investments | The following tables summarize the Company’s available-for-sale investments as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||
Short-term: | ||||||||||||||||||||||||||||
Euro liquidity fund | $ | 48,229 | $ | 6 | $ | — | $ | 48,235 | ||||||||||||||||||||
Corporate bonds | 30,842 | 50 | (3 | ) | 30,889 | |||||||||||||||||||||||
Agency bonds | 6,883 | — | — | 6,883 | ||||||||||||||||||||||||
Supranational bonds | 1,900 | 1 | — | 1,901 | ||||||||||||||||||||||||
Asset-backed securities | 1,311 | — | — | 1,311 | ||||||||||||||||||||||||
Municipal bonds | 1,232 | 5 | — | 1,237 | ||||||||||||||||||||||||
Long-term: | ||||||||||||||||||||||||||||
Corporate bonds | 216,404 | 442 | (552 | ) | 216,294 | |||||||||||||||||||||||
Treasury bills | 90,458 | 8 | (54 | ) | 90,412 | |||||||||||||||||||||||
Asset-backed securities | 62,590 | 18 | (52 | ) | 62,556 | |||||||||||||||||||||||
Sovereign bonds | 13,461 | 11 | (11 | ) | 13,461 | |||||||||||||||||||||||
Agency bonds | 9,570 | 4 | (8 | ) | 9,566 | |||||||||||||||||||||||
Municipal bonds | 6,567 | 33 | — | 6,600 | ||||||||||||||||||||||||
$ | 489,447 | $ | 578 | $ | (680 | ) | $ | 489,345 | ||||||||||||||||||||
Gross Unrealized Losses and Fair Value for Available-for-Sale Investments | The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||||
Unrealized Loss | Unrealized Loss | Total | ||||||||||||||||||||||||||
Position For Less than | Position For Greater than | |||||||||||||||||||||||||||
12 Months | 12 Months | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||
Corporate bonds | $ | 126,038 | $ | (555 | ) | $ | — | $ | — | $ | 126,038 | $ | (555 | ) | ||||||||||||||
Treasury bills | 70,901 | (54 | ) | — | — | 70,901 | (54 | ) | ||||||||||||||||||||
Asset-backed securities | 33,603 | (36 | ) | 3,487 | (16 | ) | 37,090 | (52 | ) | |||||||||||||||||||
Agency bonds | 7,135 | (8 | ) | — | — | 7,135 | (8 | ) | ||||||||||||||||||||
Sovereign bonds | 6,553 | (11 | ) | — | — | 6,553 | (11 | ) | ||||||||||||||||||||
$ | 244,230 | $ | (664 | ) | $ | 3,487 | $ | (16 | ) | $ | 247,717 | $ | (680 | ) | ||||||||||||||
Effective Maturity Dates of Available-for-Sale Investments | The following table presents the effective maturity dates of the Company’s available-for-sale investments as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||||
<1 Year | 1-2 Years | 2-3 Years | 3-4 Years | 4-5 Years | 5-8 Years | Total | ||||||||||||||||||||||
Corporate bonds | $ | 30,889 | $ | 82,238 | $ | 97,921 | $ | 19,718 | $ | 16,417 | $ | — | $ | 247,183 | ||||||||||||||
Treasury bills | — | 85,629 | 4,783 | — | — | — | 90,412 | |||||||||||||||||||||
Asset-backed securities | 1,311 | 4,788 | 19,542 | 23,815 | 8,967 | 5,444 | 63,867 | |||||||||||||||||||||
Euro liquidity fund | 48,235 | — | — | — | — | — | 48,235 | |||||||||||||||||||||
Agency bonds | 6,883 | 4,506 | 5,060 | — | — | — | 16,449 | |||||||||||||||||||||
Sovereign bonds | — | 9,768 | 3,693 | — | — | — | 13,461 | |||||||||||||||||||||
Municipal bonds | 1,237 | 1,719 | 4,881 | — | — | — | 7,837 | |||||||||||||||||||||
Supranational bonds | 1,901 | — | — | — | — | — | 1,901 | |||||||||||||||||||||
$ | 90,456 | $ | 188,648 | $ | 135,880 | $ | 43,533 | $ | 25,384 | $ | 5,444 | $ | 489,345 | |||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 23,498 | $ | 13,101 | ||||
Work-in-process | 5,753 | 4,472 | ||||||
Finished goods | 6,285 | 8,121 | ||||||
$ | 35,536 | $ | 25,694 | |||||
Property_Plant_and_Equipment_T
Property, Plant, and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant, and Equipment | Property, plant, and equipment consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Land | $ | 3,951 | $ | 3,951 | ||||
Buildings | 23,815 | 18,371 | ||||||
Building improvements | 20,985 | 15,711 | ||||||
Leasehold improvements | 5,738 | 5,185 | ||||||
Computer hardware and software | 31,816 | 29,353 | ||||||
Manufacturing test equipment | 15,133 | 14,715 | ||||||
Furniture and fixtures | 4,130 | 3,917 | ||||||
105,568 | 91,203 | |||||||
Less: accumulated depreciation | (57,661 | ) | (54,067 | ) | ||||
$ | 47,907 | $ | 37,136 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Amortized Intangible Assets | Amortized intangible assets consisted of the following (in thousands): | |||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Value | Value | |||||||||||
Distribution networks | $ | 38,060 | $ | 31,765 | $ | 6,295 | ||||||
Customer contracts and relationships | 6,690 | 5,877 | 813 | |||||||||
Completed technologies | 4,420 | 877 | 3,543 | |||||||||
Other | 370 | 322 | 48 | |||||||||
Balance as of December 31, 2014 | $ | 49,540 | $ | 38,841 | $ | 10,699 | ||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Value | Value | |||||||||||
Distribution networks | $ | 38,060 | $ | 28,479 | $ | 9,581 | ||||||
Customer contracts and relationships | 6,690 | 5,661 | 1,029 | |||||||||
Completed technologies | 4,420 | 407 | 4,013 | |||||||||
Other | 370 | 270 | 100 | |||||||||
Balance as of December 31, 2013 | $ | 49,540 | $ | 34,817 | $ | 14,723 | ||||||
Estimated Amortization Expense Succeeding Fiscal Years | Estimated amortization expense for each of the five succeeding fiscal years and thereafter is as follows (in thousands): | |||||||||||
Year Ending December 31, | Amount | |||||||||||
2015 | $ | 4,366 | ||||||||||
2016 | 3,427 | |||||||||||
2017 | 1,618 | |||||||||||
2018 | 913 | |||||||||||
2019 | 375 | |||||||||||
Thereafter | — | |||||||||||
$ | 10,699 | |||||||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Changes in the Carrying Value of Goodwill | The changes in the carrying value of goodwill were as follows (in thousands): | |||||||||||
MVSD | SISD | Consolidated | ||||||||||
Balance as of December 31, 2012 | $ | 77,388 | $ | 4,301 | $ | 81,689 | ||||||
Foreign currency exchange rate changes | — | — | — | |||||||||
Balance as of December 31, 2013 | 77,388 | 4,301 | 81,689 | |||||||||
Foreign currency exchange rate changes | — | — | — | |||||||||
Balance as of December 31, 2014 | $ | 77,388 | $ | 4,301 | $ | 81,689 | ||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Constituents of Accrued Expenses | Accrued expenses consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Company bonuses | $ | 9,294 | $ | 6,880 | ||||
Salaries, commissions, and payroll taxes | 5,802 | 6,111 | ||||||
Vacation | 5,076 | 4,598 | ||||||
Warranty obligations | 4,494 | 3,016 | ||||||
Foreign retirement obligations | 3,626 | 3,726 | ||||||
Japanese consumption taxes | 2,286 | 1,372 | ||||||
Other | 9,371 | 8,628 | ||||||
$ | 39,949 | $ | 34,331 | |||||
Changes in Warranty Obligations | The changes in the warranty obligation were as follows (in thousands): | |||||||
Balance as of December 31, 2012 | $ | 2,256 | ||||||
Provisions for warranties issued during the period | 2,770 | |||||||
Fulfillment of warranty obligations | (2,114 | ) | ||||||
Foreign exchange rate changes | 104 | |||||||
Balance as of December 31, 2013 | 3,016 | |||||||
Provisions for warranties issued during the period | 5,250 | |||||||
Fulfillment of warranty obligations | (3,354 | ) | ||||||
Foreign exchange rate changes | (418 | ) | ||||||
Balance as of December 31, 2014 | $ | 4,494 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future Minimum Rental Payments Under Lease Agreements | Future minimum rental payments under these agreements are as follows (in thousands): | ||||
Year Ending December 31, | Amount | ||||
2015 | $ | 5,315 | |||
2016 | 3,309 | ||||
2017 | 2,050 | ||||
2018 | 1,490 | ||||
2019 | 1,416 | ||||
Thereafter | 2,217 | ||||
$ | 15,797 | ||||
Future Minimum Rental Receipts Under Non - Cancelable Lease Agreements | Rental income and related expenses are included in “Other income (expense)” on the Consolidated Statements of Operations. Future minimum rental receipts under non-cancelable lease agreements are as follows (in thousands): | ||||
Year Ending December 31, | Amount | ||||
2015 | $ | 1,678 | |||
2016 | 1,675 | ||||
2017 | 1,415 | ||||
2018 | 1,009 | ||||
2019 | 1,035 | ||||
Thereafter | 1,417 | ||||
$ | 8,229 | ||||
Guarantees_Tables
Guarantees (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Guarantees [Abstract] | |||||
Schedule of Guarantor Obligations | The following table details the letters of credit outstanding as of December 31, 2014 (in thousands): | ||||
Type | Guarantee Amount | Guarantee due date | |||
Bank Guarantees | $ | 990 | Various from January 2015 to August 2016 | ||
Warranty Bonds | 713 | Various from January 2015 to October 2016 | |||
Performance Bonds | 424 | Various from January 2015 to December 2017 | |||
$ | 2,127 | ||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | The Company had the following outstanding forward contracts (in thousands): | |||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||||||
Currency | Notional Value | USD Equivalent | Notional Value | USD Equivalent | ||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Japanese Yen | 1,225,000 | $ | 10,211 | 625,000 | $ | 6,122 | ||||||||||||||
Hungarian Forint | 803,000 | 3,099 | 570,175 | 2,603 | ||||||||||||||||
Singapore Dollar | 3,515 | 2,564 | 2,867 | 2,346 | ||||||||||||||||
British Pound | 491 | 732 | 613 | 1,010 | ||||||||||||||||
Canadian Dollar | 758 | 688 | 985 | 932 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Japanese Yen | 535,000 | $ | 4,464 | 294,500 | $ | 2,797 | ||||||||||||||
British Pound | 1,400 | 2,183 | 1,100 | 1,820 | ||||||||||||||||
Hungarian Forint | 410,000 | 1,569 | 123,000 | 568 | ||||||||||||||||
Singapore Dollar | 1,225 | 922 | — | — | ||||||||||||||||
Taiwanese Dollar | 28,000 | 883 | 27,000 | 908 | ||||||||||||||||
Korean Won | 940,000 | 858 | 650,000 | 620 | ||||||||||||||||
Euro | — | — | 2,828 | 3,887 | ||||||||||||||||
Chinese Yuan | — | — | 9,000 | 1,467 | ||||||||||||||||
Brazilian Real | — | — | 250 | 106 | ||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Balance | Fair Value | Balance | Fair Value | |||||||||||||||||
Sheet | Sheet | |||||||||||||||||||
Location | 31-Dec-14 | 31-Dec-13 | Location | 31-Dec-14 | 31-Dec-13 | |||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Cash flow hedge forward contracts | Prepaid | $ | 108 | $ | 204 | Accrued | $ | 84 | $ | 98 | ||||||||||
expenses and | expenses | |||||||||||||||||||
other current | ||||||||||||||||||||
assets | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Economic hedge forward contracts | Prepaid expenses and other current assets | $ | 6 | $ | 6 | Accrued expenses | $ | 13 | $ | 24 | ||||||||||
Offsetting Assets | The table below details the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands): | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | 31-Dec-13 | |||||||||||||||||
Gross amounts of recognized assets | $ | 188 | $ | 210 | Gross amounts of recognized liabilities | $ | 149 | $ | 122 | |||||||||||
Gross amounts offset | (74 | ) | — | Gross amounts offset | (52 | ) | — | |||||||||||||
Net amount of assets presented | $ | 114 | $ | 210 | Net amount of liabilities presented | $ | 97 | $ | 122 | |||||||||||
Derivative Instruments, Gain (Loss) | Information regarding the effect of derivative instruments, net of the underlying exposure, on the consolidated financial statements was as follows (in thousands): | |||||||||||||||||||
Location in Financial Statements | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||
Gains (losses) recorded in shareholders' equity (effective portion) | Accumulated other comprehensive income (loss), net of tax | $ | 32 | $ | 104 | $ | — | |||||||||||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | Product revenue | (14 | ) | — | — | |||||||||||||||
Research, development, and engineering expenses | (42 | ) | — | — | ||||||||||||||||
Selling, general, and administrative expenses | 10 | — | — | |||||||||||||||||
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations | $ | (46 | ) | $ | — | $ | — | |||||||||||||
Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) | Foreign currency gain (loss) | $ | — | $ | — | $ | — | |||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||
Gains (losses) recognized in current operations | Foreign currency gain (loss) | $ | 540 | $ | (193 | ) | $ | (722 | ) | |||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table provides the changes in accumulated other comprehensive income (loss), net of tax, related to derivative instruments (in thousands): | |||||||||||||||||||
Balance as of December 31, 2013 | $ | 104 | ||||||||||||||||||
Reclassification of net realized loss on cash flow hedges into current operations | 46 | |||||||||||||||||||
Net unrealized loss on cash flow hedges | (118 | ) | ||||||||||||||||||
Balance as of December 31, 2014 | $ | 32 | ||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the year ended December 31, 2014: | ||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||||
Exercise | Remaining | (in thousands) | |||||||||||
Price | Contractual | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding as of December 31, 2013 | 6,138 | $ | 15.65 | ||||||||||
Granted | 2,115 | 39.49 | |||||||||||
Exercised | (1,232 | ) | 13.74 | ||||||||||
Forfeited or expired | (209 | ) | 20.12 | ||||||||||
Outstanding as of December 31, 2014 | 6,812 | $ | 23.26 | 7.28 | $ | 123,252 | |||||||
Exercisable as of December 31, 2014 | 2,208 | $ | 13.38 | 5.23 | $ | 61,711 | |||||||
Options vested or expected to vest at | 6,098 | $ | 22.04 | 7.08 | $ | 117,733 | |||||||
December 31, 2014 (1) | |||||||||||||
(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. | |||||||||||||
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted | The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free rate | 2.6 | % | 2 | % | 2 | % | |||||||
Expected dividend yield | — | % | — | % | 1.2 | % | |||||||
Expected volatility | 41 | % | 42 | % | 44 | % | |||||||
Expected term (in years) | 5.4 | 5.8 | 5.7 | ||||||||||
Nonvested Restricted Stock Shares Activity [Table Text Block] | The following table summarizes the Company's restricted stock activity for the year ended December 31, 2014: | ||||||||||||
Shares (in thousands) | Weighted-Average Exercise Price | Aggregate Intrinsic Value (in thousands) | |||||||||||
Nonvested as of December 31, 2013 | — | $ | — | ||||||||||
Granted | 20 | 34.05 | |||||||||||
Vested | — | — | |||||||||||
Forfeited or expired | — | — | |||||||||||
Nonvested as of December 31, 2014 | 20 | $ | 34.05 | $ | 146 | ||||||||
Stock-Based Compensation Expense | The following table details the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Product cost of revenue | $ | 1,033 | $ | 747 | $ | 581 | |||||||
Service cost of revenue | 171 | 177 | 161 | ||||||||||
Research, development, and engineering | 3,832 | 2,585 | 2,149 | ||||||||||
Selling, general, and administrative | 10,122 | 7,111 | 5,629 | ||||||||||
$ | 15,158 | $ | 10,620 | $ | 8,520 | ||||||||
Taxes_Tables
Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Constituents of Provision for Income Taxes | The provision for income taxes consisted of the following (in thousands): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 23,484 | $ | 8,720 | $ | 11,284 | ||||||
State | 973 | 721 | 789 | |||||||||
Foreign | 4,854 | 3,167 | 5,790 | |||||||||
29,311 | 12,608 | 17,863 | ||||||||||
Deferred: | ||||||||||||
Federal | (2,569 | ) | 1,580 | 428 | ||||||||
State | 7 | 119 | 36 | |||||||||
Foreign | (837 | ) | 6 | 205 | ||||||||
(3,399 | ) | 1,705 | 669 | |||||||||
$ | 25,912 | $ | 14,313 | $ | 18,532 | |||||||
Reconciliation of the United States Federal Statutory Corporate Tax Rate to the Company's Effective Tax Rate or Income Tax Provision | A reconciliation of the United States federal statutory corporate tax rate to the Company’s effective tax rate was as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income tax provision at federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 1 | 1 | 1 | |||||||||
Foreign tax rate differential | (17 | ) | (17 | ) | (14 | ) | ||||||
Tax credit | — | (1 | ) | — | ||||||||
Discrete tax events | (1 | ) | (3 | ) | — | |||||||
Other | — | 1 | (1 | ) | ||||||||
Income tax provision | 18 | % | 16 | % | 21 | % | ||||||
Changes in the Reserve for Income Taxes, Excluding Interest and Penalties | The changes in the reserve for income taxes, excluding gross interest and penalties, were as follows (in thousands): | |||||||||||
Balance of reserve for income taxes as of December 31, 2012 | $ | 4,024 | ||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods | 438 | |||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,048 | |||||||||||
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | — | |||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | (1,102 | ) | ||||||||||
Balance of reserve for income taxes as of December 31, 2013 | 4,408 | |||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in prior periods | (226 | ) | ||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,095 | |||||||||||
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | (15 | ) | ||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | (135 | ) | ||||||||||
Balance of reserve for income taxes as of December 31, 2014 | $ | 5,127 | ||||||||||
Constituents of Deferred Tax Assets | Deferred tax assets consisted of the following (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Current deferred tax assets: | ||||||||||||
Inventory and revenue related | $ | 4,911 | $ | 5,614 | ||||||||
Bonuses, commissions, and other compensation | 2,280 | 1,377 | ||||||||||
Other | 1,794 | 1,292 | ||||||||||
Gross current deferred tax assets | 8,985 | 8,283 | ||||||||||
Valuation allowance | — | (672 | ) | |||||||||
Net current deferred tax assets | $ | 8,985 | $ | 7,611 | ||||||||
Noncurrent deferred tax assets: | ||||||||||||
Stock-based compensation expense | $ | 10,290 | $ | 7,488 | ||||||||
Federal and state tax credit carryforwards | 4,547 | 5,418 | ||||||||||
Depreciation | 1,945 | 1,831 | ||||||||||
Acquired completed technologies and other intangible assets | 450 | 835 | ||||||||||
Unrealized investment gains and losses | 355 | 601 | ||||||||||
Correlative tax relief and deferred interest related to reserves | 342 | 252 | ||||||||||
Other | 1,436 | 1,178 | ||||||||||
Gross noncurrent deferred tax assets | 19,365 | 17,603 | ||||||||||
Noncurrent deferred tax liabilities: | ||||||||||||
Nondeductible intangible assets | (2,430 | ) | (3,662 | ) | ||||||||
Other | — | (548 | ) | |||||||||
Gross noncurrent deferred tax liabilities | (2,430 | ) | (4,210 | ) | ||||||||
Valuation allowance | (2,483 | ) | (1,086 | ) | ||||||||
Net noncurrent deferred tax assets | $ | 14,452 | $ | 12,307 | ||||||||
Weighted_Average_Shares_Tables
Weighted Average Shares (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Calculation of Weighted Average Shares | Weighted-average shares were calculated as follows (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Basic weighted-average common shares outstanding | 86,858 | 86,946 | 85,666 | ||||||
Effect of dilutive stock options | 2,213 | 1,955 | 1,614 | ||||||
Diluted weighted-average common and common-equivalent shares outstanding | 89,071 | 88,901 | 87,280 | ||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Information About the Company's Segments | The following table summarizes information about the Company’s segments (in thousands): | |||||||||||||||||||
MVSD | SISD | Reconciling | Consolidated | |||||||||||||||||
Items | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Product revenue | $ | 409,017 | $ | 42,049 | $ | 451,066 | ||||||||||||||
Service revenue | 17,432 | 17,772 | 35,204 | |||||||||||||||||
Depreciation and amortization | 10,580 | 1,138 | $ | 749 | 12,467 | |||||||||||||||
Goodwill and intangibles | 87,059 | 5,329 | — | 92,388 | ||||||||||||||||
Operating income | 156,552 | 15,598 | (28,487 | ) | 143,663 | |||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Product revenue | $ | 298,186 | $ | 28,600 | $ | 326,786 | ||||||||||||||
Service revenue | 9,465 | 17,635 | 27,100 | |||||||||||||||||
Depreciation and amortization | 9,569 | 1,078 | $ | 455 | 11,102 | |||||||||||||||
Goodwill and intangibles | 90,718 | 5,694 | — | 96,412 | ||||||||||||||||
Operating income | 99,383 | 8,990 | (22,005 | ) | 86,368 | |||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Product revenue | $ | 263,308 | $ | 32,280 | $ | 295,588 | ||||||||||||||
Service revenue | 10,388 | 18,303 | 28,691 | |||||||||||||||||
Depreciation and amortization | 9,505 | 963 | $ | 390 | 10,858 | |||||||||||||||
Goodwill and intangibles | 90,390 | 6,069 | — | 96,459 | ||||||||||||||||
Operating income | 89,378 | 11,941 | (17,912 | ) | 83,407 | |||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table summarizes information about geographic areas (in thousands): | |||||||||||||||||||
United States | Europe | Japan | Other | Total | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Product revenue | $ | 132,298 | $ | 192,463 | $ | 38,952 | $ | 87,353 | $ | 451,066 | ||||||||||
Service revenue | 15,143 | 12,536 | 4,434 | 3,091 | 35,204 | |||||||||||||||
Long-lived assets | 118,991 | 11,385 | 1,551 | 9,904 | 141,831 | |||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Product revenue | $ | 103,610 | $ | 104,497 | $ | 33,763 | $ | 84,916 | $ | 326,786 | ||||||||||
Service revenue | 13,505 | 6,012 | 4,103 | 3,480 | 27,100 | |||||||||||||||
Long-lived assets | 118,619 | 5,059 | 1,732 | 10,276 | 135,686 | |||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Product revenue | $ | 87,877 | $ | 95,376 | $ | 38,151 | $ | 74,184 | $ | 295,588 | ||||||||||
Service revenue | 13,248 | 6,083 | 5,043 | 4,317 | 28,691 | |||||||||||||||
Long-lived assets | 120,596 | 4,939 | 2,229 | 6,342 | 134,106 | |||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Effective maturity of investments | 10 years |
Maximum investment of the company in partnership | 5.00% |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Computer Hardware and Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Computer Hardware and Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Manufacturing test equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Manufacturing test equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Distribution Rights [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 11 years |
Distribution Rights [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 12 years |
Customer Contracts And Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Customer Contracts And Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 12 years |
Completed Technologies And Other Intangible Assets [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Completed Technologies And Other Intangible Assets [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Summary of Significant Accounting Policies- Goodwill (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill [Line Items] | |
Qualitative Assessment, years | four |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Warranty (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
Product Liability Contingency [Line Items] | |
Product Warranty Period | 6 months |
Maximum [Member] | |
Product Liability Contingency [Line Items] | |
Product Warranty Period | 3 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Advertising Costs (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Advertising costs | $1,289 | $1,656 | $1,792 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss consists of foreign currency translation adjustments, net of tax | $38,030,000 | $28,630,000 | |
Net unrealized losses on available-for-sale investments, net of tax | 130,000 | 36,000 | |
Losses on currency swaps, net of gains on long-term intercompany loans | 1,271,000 | 1,271,000 | |
Net realized gains reclassified into current operations | 673,000 | 314,000 | 1,695,000 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net realized gains reclassified into current operations | 673,000 | 314,000 | 1,695,000 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net unrealized gains on derivative instruments | ($32,000) | ($104,000) | $0 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Liabilities: | |||
Other than temporary impairment loss | $0 | $0 | $0 |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net, non current | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets: | |||
Money market instruments | 777,000 | ||
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets: | |||
Corporate bonds | 247,183,000 | ||
Treasury bills | 90,412,000 | ||
Asset-backed securities | 63,867,000 | ||
Euro liquidity funds | 48,235,000 | ||
Agency bonds | 16,449,000 | ||
Sovereign bonds | 13,461,000 | ||
Municipal bonds | 7,837,000 | ||
Supranational bonds | 1,901,000 | ||
Cash flow hedge forward contracts | 108,000 | ||
Economic hedge forward contracts | 6,000 | ||
Liabilities: | |||
Cash flow hedge forward contracts | 84,000 | ||
Economic hedge forward contracts | $13,000 |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents and Investments - Components of Cash, Cash Equivalents and Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | $54,917 | $40,124 | ||
Money market instruments | 777 | 520 | ||
Cash and cash equivalents | 55,694 | 40,644 | 45,160 | 38,103 |
Short-term investments | 90,456 | 184,822 | ||
Limited partnership interest (accounted for using cost method) | 1,956 | 1,956 | ||
Long-term investments | 400,845 | 229,655 | ||
Total | 546,995 | 455,121 | ||
Euro liquidity fund [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 48,235 | |||
Corporate Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 30,889 | 109,040 | ||
Long-term investments | 216,294 | 109,909 | ||
Agency Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 6,883 | 1,499 | ||
Long-term investments | 9,566 | 0 | ||
Supranational bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 1,901 | |||
Asset-Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 1,311 | 53,559 | ||
Long-term investments | 62,556 | 21,820 | ||
Municipal Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 1,237 | 9,276 | ||
Long-term investments | 6,600 | 5,919 | ||
Sovereign Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 0 | 11,448 | ||
Long-term investments | 13,461 | 16,385 | ||
Treasury Bills [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Long-term investments | $90,412 | $73,666 |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents and Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Cash balance included foreign bank balance | $43,732,000 | $32,096,000 | |
Gross realized gains on sale of debt securities | 843,000 | 508,000 | 1,990,000 |
Gross realized losses on sale of debt securities | 170,000 | 194,000 | 295,000 |
Maximum amount committed to invest in limited partnership | 20,500,000 | ||
Contribution to limited partnership | 19,886,000 | ||
Remaining amount of commitment in limited partnership | 614,000 | ||
Received a stock distribution | 362,000 | 2,193,000 | |
Proceeds for liquidation of stock | 347,000 | 2,128,000 | |
Recorded a realized loss on stock distribution | 15,000 | 65,000 | |
Proceeds from Limited Partnership Investments | 1,422,000 | ||
Carrying value of investment | 1,956,000 | 1,956,000 | |
Cost Method Investments, Fair Value Disclosure | 6,200,000 | ||
Payments to Acquire Marketable Securities | 2,136,000 | ||
Trading Securities, Unrealized Holding Loss | 5,000 | ||
Trading Securities | 1,429,000 | ||
Trading Securities, Realized Loss | $702,000 |
Cash_Cash_Equivalents_and_Inve4
Cash, Cash Equivalents, and Investments - Amortized Cost to Fair Value (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $489,447 |
Gross Unrealized Gains | 578 |
Gross Unrealized Losses | -680 |
Fair Value, Total | 489,345 |
Euro liquidity fund [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 48,235 |
Euro liquidity fund [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 48,229 |
Gross Unrealized Gains | 6 |
Fair Value, Total | 48,235 |
Corporate Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 247,183 |
Corporate Bonds [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 30,842 |
Gross Unrealized Gains | 50 |
Gross Unrealized Losses | -3 |
Fair Value, Total | 30,889 |
Corporate Bonds [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 216,404 |
Gross Unrealized Gains | 442 |
Gross Unrealized Losses | -552 |
Fair Value, Total | 216,294 |
Agency Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 16,449 |
Agency Bonds [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 6,883 |
Fair Value, Total | 6,883 |
Agency Bonds [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 9,570 |
Gross Unrealized Gains | 4 |
Gross Unrealized Losses | -8 |
Fair Value, Total | 9,566 |
Supranational bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 1,901 |
Supranational bonds [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,900 |
Gross Unrealized Gains | 1 |
Fair Value, Total | 1,901 |
Asset-Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 63,867 |
Asset-Backed Securities [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,311 |
Fair Value, Total | 1,311 |
Asset-Backed Securities [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 62,590 |
Gross Unrealized Gains | 18 |
Gross Unrealized Losses | -52 |
Fair Value, Total | 62,556 |
Municipal Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 7,837 |
Municipal Bonds [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,232 |
Gross Unrealized Gains | 5 |
Fair Value, Total | 1,237 |
Municipal Bonds [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 6,567 |
Gross Unrealized Gains | 33 |
Fair Value, Total | 6,600 |
Treasury Bills [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 90,412 |
Treasury Bills [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 90,458 |
Gross Unrealized Gains | 8 |
Gross Unrealized Losses | -54 |
Fair Value, Total | 90,412 |
Sovereign Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 13,461 |
Sovereign Bonds [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 13,461 |
Gross Unrealized Gains | 11 |
Gross Unrealized Losses | -11 |
Fair Value, Total | $13,461 |
Cash_Cash_Equivalents_and_Inve5
Cash, Cash Equivalents and Investments - Gross Unrealized Losses and Fair Value for Available-for-Sale Investments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | $244,230 |
Unrealized Losses, Less than 12 months | -664 |
Fair Value, Greater than 12 Months | 3,487 |
Unrealized Losses, Greater than 12 Months | -16 |
Fair Value | 247,717 |
Unrealized Losses | -680 |
Corporate Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 126,038 |
Unrealized Losses, Less than 12 months | -555 |
Fair Value, Greater than 12 Months | 0 |
Unrealized Losses, Greater than 12 Months | 0 |
Fair Value | 126,038 |
Unrealized Losses | -555 |
Treasury Bills [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 70,901 |
Unrealized Losses, Less than 12 months | -54 |
Fair Value, Greater than 12 Months | 0 |
Unrealized Losses, Greater than 12 Months | 0 |
Fair Value | 70,901 |
Unrealized Losses | -54 |
Asset-Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 33,603 |
Unrealized Losses, Less than 12 months | -36 |
Fair Value, Greater than 12 Months | 3,487 |
Unrealized Losses, Greater than 12 Months | -16 |
Fair Value | 37,090 |
Unrealized Losses | -52 |
Agency Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 7,135 |
Unrealized Losses, Less than 12 months | -8 |
Fair Value, Greater than 12 Months | 0 |
Unrealized Losses, Greater than 12 Months | 0 |
Fair Value | 7,135 |
Unrealized Losses | -8 |
Sovereign Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 6,553 |
Unrealized Losses, Less than 12 months | -11 |
Fair Value, Greater than 12 Months | 0 |
Unrealized Losses, Greater than 12 Months | 0 |
Fair Value | 6,553 |
Unrealized Losses | ($11) |
Cash_Cash_Equivalents_and_Inve6
Cash, Cash Equivalents and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | $90,456 |
1-2 Years | 188,648 |
2-3 Years | 135,880 |
3-4 Years | 43,533 |
4-5 Years | 25,384 |
5-8 Years | 5,444 |
Fair Value, Total | 489,345 |
Corporate Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 30,889 |
1-2 Years | 82,238 |
2-3 Years | 97,921 |
3-4 Years | 19,718 |
4-5 Years | 16,417 |
5-8 Years | 0 |
Fair Value, Total | 247,183 |
Treasury Bills [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 0 |
1-2 Years | 85,629 |
2-3 Years | 4,783 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value, Total | 90,412 |
Asset-Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 1,311 |
1-2 Years | 4,788 |
2-3 Years | 19,542 |
3-4 Years | 23,815 |
4-5 Years | 8,967 |
5-8 Years | 5,444 |
Fair Value, Total | 63,867 |
Euro liquidity fund [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 48,235 |
1-2 Years | 0 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value, Total | 48,235 |
Agency Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 6,883 |
1-2 Years | 4,506 |
2-3 Years | 5,060 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value, Total | 16,449 |
Sovereign Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 0 |
1-2 Years | 9,768 |
2-3 Years | 3,693 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value, Total | 13,461 |
Municipal Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 1,237 |
1-2 Years | 1,719 |
2-3 Years | 4,881 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value, Total | 7,837 |
Supranational bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 1,901 |
1-2 Years | 0 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Fair Value, Total | $1,901 |
Inventories_Inventories_Detail
Inventories - Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $23,498 | $13,101 |
Work-in-process | 5,753 | 4,472 |
Finished goods | 6,285 | 8,121 |
Inventories | $35,536 | $25,694 |
Property_Plant_and_Equipment_P
Property, Plant, and Equipment - Property, Plant, and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | $105,568 | $91,203 |
Less: accumulated depreciation | -57,661 | -54,067 |
Property, Plant and Equipment, Net, Total | 47,907 | 37,136 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 3,951 | 3,951 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 23,815 | 18,371 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 20,985 | 15,711 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 5,738 | 5,185 |
Hardware And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 31,816 | 29,353 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 15,133 | 14,715 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | $4,130 | $3,917 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Mar. 01, 2015 |
USD ($) | USD ($) | EUR (€) | Building purchase, final payment [Member] | |
EUR (€) | ||||
Property, Plant and Equipment [Line Items] | ||||
Total purchase price of property | $5,444 | € 4,500 | ||
Building purchase down payment | 450 | |||
Building purchase, final payment | 4,050 | |||
Disposals in period | 2,620 | 1,616 | ||
Buildings include rental property | 5,750 | 5,750 | ||
Accumulated depreciation | $2,627 | $2,480 |
Intangible_Assets_Amortized_In
Intangible Assets - Amortized Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $49,540 | $49,540 |
Accumulated Amortization | 38,841 | 34,817 |
Net Carrying Value | 10,699 | 14,723 |
Distribution networks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 38,060 | 38,060 |
Accumulated Amortization | 31,765 | 28,479 |
Net Carrying Value | 6,295 | 9,581 |
Customer contracts and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 6,690 | 6,690 |
Accumulated Amortization | 5,877 | 5,661 |
Net Carrying Value | 813 | 1,029 |
Completed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,420 | 4,420 |
Accumulated Amortization | 877 | 407 |
Net Carrying Value | 3,543 | 4,013 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 370 | 370 |
Accumulated Amortization | 322 | 270 |
Net Carrying Value | $48 | $100 |
Intangible_Assets_Estimated_Am
Intangible Assets - Estimated Amortization Expense Succeeding Fiscal Years (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $4,366 | |
2016 | 3,427 | |
2017 | 1,618 | |
2018 | 913 | |
2019 | 375 | |
Thereafter | 0 | |
Net Carrying Value | $10,699 | $14,723 |
Goodwill_Changes_in_the_Carryi
Goodwill - Changes in the Carrying Value of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $81,689 | $81,689 |
Foreign currency exchange rate changes | 0 | 0 |
Goodwill, Ending Balance | 81,689 | 81,689 |
MVSD [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 77,388 | 77,388 |
Foreign currency exchange rate changes | 0 | 0 |
Goodwill, Ending Balance | 77,388 | 77,388 |
SISD [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 4,301 | 4,301 |
Foreign currency exchange rate changes | 0 | 0 |
Goodwill, Ending Balance | $4,301 | $4,301 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) | Oct. 04, 2010 |
MVSD [Member] | |
Goodwill [Line Items] | |
Fair value in excess to carrying value | 208.00% |
SISD [Member] | |
Goodwill [Line Items] | |
Fair value in excess to carrying value | 119.00% |
Accrued_Expenses_Constituents_
Accrued Expenses - Constituents of Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Constituents of accrued expenses | ||
Company bonuses | $9,294 | $6,880 |
Salaries, commissions, and payroll taxes | 5,802 | 6,111 |
Vacation | 5,076 | 4,598 |
Warranty obligations | 4,494 | 3,016 |
Foreign retirement obligations | 3,626 | 3,726 |
Japanese consumption taxes | 2,286 | 1,372 |
Other | 9,371 | 8,628 |
Accrued expenses | $39,949 | $34,331 |
Accrued_Expenses_Changes_in_Wa
Accrued Expenses - Changes in Warranty Obligations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning Balance | $3,016 | $2,256 |
Provisions for warranties issued during the period | 5,250 | 2,770 |
Fulfillment of warranty obligations | -3,354 | -2,114 |
Foreign exchange rate changes | -418 | 104 |
Ending Balance | $4,494 | $3,016 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2014 | Jul. 31, 2010 | Jul. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
patent | Patents | Respondent | Respondent | |||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Number of respondents with whom a settlement was reached | 5 | 2 | ||||||
Number of the Company's patents found invalid | 2 | |||||||
Number of the Company's patents found invalid | 2 | |||||||
Proceeds from Legal Settlements | $2,600,000 | |||||||
Purchase order outstanding | 4,748,000 | |||||||
Total annual rental expense | 6,021,000 | 5,772,000 | 5,806,000 | |||||
Total annual rental income | $1,794,000 | $676,000 | $854,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Rental Payments Under Lease Agreements (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future minimum rental payments under lease agreements | |
2015 | $5,315 |
2016 | 3,309 |
2017 | 2,050 |
2018 | 1,490 |
2019 | 1,416 |
Thereafter | 2,217 |
Total | $15,797 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Future Minimum Rental Receipts Under Non - Cancelable Lease Agreements (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future minimum rental receipts under non-cancelable lease agreements | |
2015 | $1,678 |
2016 | 1,675 |
2017 | 1,415 |
2018 | 1,009 |
2019 | 1,035 |
Thereafter | 1,417 |
Total | $8,229 |
Guarantees_Details
Guarantees (Details) (Standby Letters of Credit [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $2,127 |
Bank Guarantees | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 990 |
Warranty Bonds | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 713 |
Performance Bonds | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $424 |
Derivative_Instruments_Derivat
Derivative Instruments Derivative Instruments - Additional Details (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Derivative [Line Items] | |
Net gains expected to be reclassified from accumulated other comprehensive income (loss) | $47 |
Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Maturities of forward of contracts | 45 days |
Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Maturities of foreign currency forward contracts | 18 months |
Derivative_Instruments_Outstan
Derivative Instruments - Outstanding Forward Contracts (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] |
Japan, Yen | Japan, Yen | Japan, Yen | Japan, Yen | Hungary, Forint | Hungary, Forint | Hungary, Forint | Hungary, Forint | Singapore, Dollars | Singapore, Dollars | Singapore, Dollars | Singapore, Dollars | United Kingdom, Pounds | United Kingdom, Pounds | United Kingdom, Pounds | United Kingdom, Pounds | Canada, Dollars | Canada, Dollars | Canada, Dollars | Canada, Dollars | Japan, Yen | Japan, Yen | Japan, Yen | Japan, Yen | Hungary, Forint | Hungary, Forint | Hungary, Forint | Hungary, Forint | Singapore, Dollars | Singapore, Dollars | Singapore, Dollars | Singapore, Dollars | United Kingdom, Pounds | United Kingdom, Pounds | United Kingdom, Pounds | United Kingdom, Pounds | Taiwan, New Dollars | Taiwan, New Dollars | Taiwan, New Dollars | Taiwan, New Dollars | Korea (South), Won | Korea (South), Won | Korea (South), Won | Korea (South), Won | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | Brazil, Brazil Real | Brazil, Brazil Real | Brazil, Brazil Real | Brazil, Brazil Real | |
USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | HUF | USD ($) | HUF | USD ($) | SGD | USD ($) | SGD | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | CAD | USD ($) | CAD | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | HUF | USD ($) | HUF | USD ($) | BRL | USD ($) | BRL | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | TWD | USD ($) | TWD | USD ($) | KPW | USD ($) | KPW | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | CNY | USD ($) | CNY | USD ($) | BRL | USD ($) | BRL | |
Derivative [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Notional Amount | $10,211 | ¥ 1,225,000 | $6,122 | ¥ 625,000 | $3,099 | 803,000 | $2,603 | 570,175 | $2,564 | 3,515 | $2,346 | 2,867 | $732 | £ 491 | $1,010 | £ 613 | $688 | 758 | $932 | 985 | $4,464 | ¥ 535,000 | $2,797 | ¥ 294,500 | $1,569 | 410,000 | $568 | 123,000 | $922 | 1,225 | $0 | 0 | $2,183 | £ 1,400 | $1,820 | £ 1,100 | $883 | 28,000 | $908 | 27,000 | $858 | 940,000 | $620 | 650,000 | $0 | € 0 | $3,887 | € 2,828 | $0 | 0 | $1,467 | 9,000 | $0 | 0 | $106 | 250 |
Derivative_Instruments_Balance
Derivative Instruments - Balance Sheet Location (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Net amount of assets presented | $114 | $210 |
Net amount of liabilities presented | 97 | 122 |
Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net amount of assets presented | 108 | 204 |
Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net amount of liabilities presented | 84 | 98 |
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net amount of assets presented | 6 | 6 |
Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net amount of liabilities presented | $13 | $24 |
Derivative_Instruments_Derivat1
Derivative Instruments Derivative Instruments- Assets and liabilities presented on a net basis due to the right of setuoff (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | $188 | $210 |
Derivative Asset gross amount offset | -74 | 0 |
Net amount of assets presented | 114 | 210 |
Derivative Liability, Fair Value, Gross Liability | 149 | 122 |
Derivative liability gross amount offset | -52 | 0 |
Net amount of liabilities presented | $97 | $122 |
Derivative_Instruments_Gain_Lo
Derivative Instruments - Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into net income | ($46,000) | $0 | $0 |
Accumulated other comprehensive income (loss), net of tax | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) recorded in shareholders' equity (effective portion) | 32,000 | 104,000 | 0 |
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into net income | -46,000 | 0 | 0 |
Product Revenue | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into net income (effective portion) | -14,000 | 0 | 0 |
Research, development, and engineering expenses | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into net income (effective portion) | -42,000 | 0 | 0 |
Selling, general and administrative expenses | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into net income (effective portion) | 10,000 | 0 | 0 |
Foreign currency gain (loss) | Designated as Hedging Instrument [Member] | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Gains (losses) recognized in net income on derivatives (ineffective portion and discontinued derivatives) | 0 | 0 | 0 |
Foreign currency gain (loss) | Not Designated as Hedging Instrument [Member] | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Gains (losses) recognized in net income | $540,000 | ($193,000) | ($722,000) |
Derivative_Instruments_Changes
Derivative Instruments - Changes in AOCI (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | ($29,833) | |
Ending balance | -39,399 | -29,833 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 104 | |
Reclassification of net realized loss on cash flow hedges into current operations | 46 | |
Net unrealized loss on cash flow hedges | -118 | |
Ending balance | $32 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2013 | Sep. 29, 2013 | Sep. 30, 2013 | Dec. 05, 2008 | Apr. 27, 2008 | Nov. 27, 2011 | Apr. 29, 2014 | |
Vote | Vote | Right | |||||||||
Class of Stock [Line Items] | |||||||||||
Authorized shares | 400,000 | 400,000 | |||||||||
Preferred stock Par value (in dollars per share) | $0.01 | $0.01 | |||||||||
Vote entitled for each common share outstanding | 1 | 1 | |||||||||
Common stock par value, in dollars per share | $0.00 | $0.00 | $0.00 | $0.00 | |||||||
Number of preferred stock purchase right for dividend distribution | 1 | ||||||||||
Outstanding common share to be acquiring person | 15.00% | 15.00% | |||||||||
Stock Repurchased During Period, Value | $59,673,000 | $47,908,000 | |||||||||
Cash dividend declared per common share | $0 | $0.06 | |||||||||
Special dividend declared and paid | $0.50 | ||||||||||
Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock split ratio | 2 | 2 | |||||||||
Common Stock [Member] | Repurchase Program 2008 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Repurchase of authorized common stock | 50,000,000 | ||||||||||
Common Stock [Member] | Repurchase Program 2011 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Repurchase of authorized common stock | 80,000,000 | ||||||||||
Aggregate stock repurchased, shares | 2,243,000 | 2,243,000 | |||||||||
Aggregate stock repurchased, value | 80,000,000 | 80,000,000 | |||||||||
Stock Repurchased During Period, Shares | 1,351,000 | ||||||||||
Stock Repurchased During Period, Value | 52,095,000 | ||||||||||
Common Stock [Member] | Repurchase Program 2014 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Repurchase of authorized common stock | 50,000,000 | ||||||||||
Stock Repurchased During Period, Shares | 183,000 | ||||||||||
Stock Repurchased During Period, Value | $7,578,000 |
StockBased_Compensation_Expens
Stock-Based Compensation Expense - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of groups within the employee population | 2 | ||
Percentage of stock options granted to all other employees expected to vest | 70.00% | ||
Percentage of stock options granted to senior management expected to vest | 72.00% | ||
Estimated forfeiture rate for unvested options for senior management | 11.00% | ||
Estimated forfeiture rate for unvested options for all non-senior management | 12.00% | ||
Increase In Compensation Expense Due To Revised Estimated Forfeiture Rates | $288,000 | $300,000 | $200,000 |
Weighted-average grant-date fair values of stock options granted | $15.97 | $8.21 | $6.58 |
Total intrinsic values of stock options exercised | 31,884,000 | 32,096,000 | 16,296,000 |
Total fair values of stock options vested | 11,627,000 | 9,717,000 | 9,362,000 |
Total unrecognized compensation expense related to non-vested stock options | 19,389,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Period for Recognition | 1 year 6 months 30 days | ||
Stock-based compensation expense | 15,158,000 | 10,620,000 | 8,520,000 |
Income tax benefit recognized related to stock-based compensation expense | 4,977,000 | 3,482,000 | 2,772,000 |
Compensation expense capitalized | $0 | $0 | $0 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant under stock option plans | 9,203,289 | ||
Vesting period for stock option plans | 4 years | ||
Expiration period of stock option plan | 10 years | ||
Expected dividend yield, beginning in 2015 | 0.56% |
StockBased_Compensation_Expens1
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding, Shares | 6,138 | |
Granted | 2,115 | |
Exercised | -1,232 | |
Forfeited or expired | -209 | |
Outstanding, Shares | 6,812 | |
Exercisable, Shares | 2,208 | |
Options vested or expected to vest | 6,098 | [1] |
Outstanding, Weighted-Average Exercise Price | $15.65 | |
Granted, Weighted-Average Exercise Price | $39.49 | |
Exercised, Weighted-Average Exercise Price | $13.74 | |
Forfeited or expired, Weighted-Average Exercise Price | $20.12 | |
Outstanding, Weighted-Average Exercise Price | $23.26 | |
Exercisable, Weighted-Average Exercise Price | $13.38 | |
Options vested or expected to vest, Weighted-Average Exercise Price | $22.04 | [1] |
Outstanding, Weighted-Average Remaining Contractual Term (in years) | 7 years 3 months 12 days | |
Exercisable, Weighted-Average Remaining Contractual Term (in years) | 5 years 2 months 24 days | |
Options vested or expected to vest, Weighted-Average Remaining Contractual Term (in years) | 7 years 1 month 0 days | [1] |
Outstanding, Aggregate Intrinsic Value | $123,252 | |
Exercisable, Aggregate Intrinsic Value | 61,711 | |
Options vested or expected to vest, Aggregate Intrinsic Value | $117,733 | [1] |
[1] | (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. |
StockBased_Compensation_Expens2
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Detail) (Employee Stock Option [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free rate | 2.60% | 2.00% | 2.00% |
Expected dividend yield | 0.00% | 0.00% | 1.20% |
Expected volatility | 41.00% | 42.00% | 44.00% |
Expected term (in years) | 5 years 5 months 6 days | 5 years 10 months 6 days | 5 years 8 months 12 days |
Expected dividend yield, beginning in 2015 | 0.56% |
StockBased_Compensation_StockB
Stock-Based Compensation Stock-Based Compensation Expense- Summary of Restricted Stock Option Activity (Detail) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Stock [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options, Shares Nonvested | 20 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 20 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $34.05 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $0 | |
Options, Nonvested, Weighted-Average Exercise Price, in dollars per share | $34.05 | $0 |
Nonvested as of December 31, 2014, Aggregate Intrinsic Value | $146 |
StockBased_Compensation_Expens3
Stock-Based Compensation Expense - Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Period for Recognition | 1 year 6 months 30 days | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $15,158,000 | $10,620,000 | $8,520,000 |
Income tax benefit recognized related to stock-based compensation expense | 4,977,000 | 3,482,000 | 2,772,000 |
Compensation expense capitalized | 0 | 0 | 0 |
Product cost of revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,033,000 | 747,000 | 581,000 |
Service cost of revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 171,000 | 177,000 | 161,000 |
Research, development, and engineering expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,832,000 | 2,585,000 | 2,149,000 |
Selling, general, and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $10,122,000 | $7,111,000 | $5,629,000 |
Employee_Savings_Plan_Addition
Employee Savings Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Minimum age to be eligible to defined contribution plan | 21 years | ||
Maximum contribution by company expressed, per dollar of employee contributions | $0.50 | ||
Maximum contribution by company expressed as percentage of employee pre-tax salary | 25.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | ||
Company contributions vest at end of two years | 20.00% | ||
Company contributions vest at end of three years | 40.00% | ||
Company contributions vest at end of four years | 60.00% | ||
Company contributions vest at end of five years | 100.00% | ||
Company contributions to employee savings plan | $1,555,000 | $1,423,000 | $1,362,000 |
Taxes_Additional_Information_D
Taxes - Additional Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Tax Credit Carryforward [Line Items] | |||
Domestic income from continuing operations before taxes | $41,226,000 | $29,576,000 | $36,754,000 |
Foreign income from continuing operations before taxes | 106,171,000 | 58,310,000 | 49,876,000 |
Increase (decrease) in tax expense for the final true-up of the prior year's tax accrual upon filing the actual tax returns | -674,000 | 267,000 | 84,000 |
Increase (decrease) in tax expense upon the expiration of the statutes of limitation for certain reserves for income tax uncertainties | -217,000 | -1,790,000 | -441,000 |
Income Tax Examination, Increase (Decrease) in Liability from Prior Year | -553,000 | ||
Increase (decrease) in tax expense for release of tax reserves resulting from audit | -296,000 | ||
Increase (decrease) in interest and penalties | -46,000 | -854,000 | -58,000 |
Increase (decrease) in tax expense from write down of noncurrent deferred tax asset | 101,000 | ||
Unrecognized tax benefit shown as a reduction to noncurrent deferred tax assets | 1,028,000 | ||
Reserve for income taxes | 4,623,000 | 4,765,000 | |
Deferred Tax Liabilities, Gross, Noncurrent | 5,651,000 | ||
Interest and penalties, gross | 524,000 | 357,000 | |
Minimum decrease in income tax expense due to release in reserves | 900,000 | ||
Maximum decrease in income tax expense due to release in reserves | 1,000,000 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals | 342,000 | ||
Non deductible federal and state liabilities | 2,430,000 | 3,662,000 | |
Income from expiration of the statute of limitations relating to a tax | 354,000 | 141,000 | |
Income tax paid net | 17,549,000 | 8,831,000 | 13,551,000 |
Open Tax Year State Authorities | 2011 through 2013 | ||
Open tax year United States Internal Revenue Service | 2012 through 2013 | ||
Tax years open to examination, various authorities | 2010 through 2013 | ||
Tax years covered through Advanced Pricing Agreement | 2006 through 2011 | ||
Tax years in negotiation for APA agreement | Between 2014 and 2018 | ||
State research and experimentation tax carryforwards | 2014 through 2016 | ||
Research and Development tax credit [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Reduction in tax expense | 757,000 | 555,000 | |
Research Tax Credit Carryforward [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 725,000 | ||
State Research And Experimentation [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Deferred Tax Assets, Tax Credit Carryforwards, Research | $5,575,000 |
Taxes_Constituents_of_Provisio
Taxes - Constituents of Provision for Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $23,484 | $8,720 | $11,284 |
State | 973 | 721 | 789 |
Foreign | 4,854 | 3,167 | 5,790 |
Current income tax expense (benefit), Total | 29,311 | 12,608 | 17,863 |
Deferred: | |||
Federal | -2,569 | 1,580 | 428 |
State | 7 | 119 | 36 |
Foreign | -837 | 6 | 205 |
Deferred income tax expense (benefit), Total | -3,399 | 1,705 | 669 |
Income tax expense (benefit), continuing operations, Total | $25,912 | $14,313 | $18,532 |
Taxes_Reconciliation_of_the_Un
Taxes - Reconciliation of the United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate or Income Tax Provision (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision at federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.00% | 1.00% | 1.00% |
Foreign tax rate differential | -17.00% | -17.00% | -14.00% |
Tax credit | 0.00% | -1.00% | 0.00% |
Discrete tax events | -1.00% | -3.00% | 0.00% |
Other | 0.00% | 1.00% | -1.00% |
Income tax provision | 18.00% | 16.00% | 21.00% |
Taxes_Changes_in_the_Reserve_f
Taxes - Changes in the Reserve for Income Taxes, Excluding Interest and Penalties (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Balance of reserve for income taxes | $4,408 | $4,024 |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods | 438 | |
Unrecognized Tax Benefits, Period Increase (Decrease) | -226 | |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,095 | 1,048 |
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | -15 | 0 |
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | -135 | -1,102 |
Balance of reserve for income taxes | $5,127 | $4,408 |
Taxes_Constituents_of_Deferred
Taxes - Constituents of Deferred Tax Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets: | ||
Inventory and revenue related | $4,911 | $5,614 |
Bonuses, commissions, and other compensation | 2,280 | 1,377 |
Other | 1,794 | 1,292 |
Gross current deferred tax assets | 8,985 | 8,283 |
Valuation allowance | 0 | -672 |
Net current deferred tax assets | 8,985 | 7,611 |
Noncurrent deferred tax assets: | ||
Stock-based compensation expense | 10,290 | 7,488 |
Federal and state tax credit carryforwards | 4,547 | 5,418 |
Depreciation | 1,945 | 1,831 |
Acquired completed technologies and other intangible assets | 450 | 835 |
Unrealized investment gains and losses | 355 | 601 |
Correlative tax relief and deferred interest related to reserves | 342 | 252 |
Other | 1,436 | 1,178 |
Gross noncurrent deferred tax assets | 19,365 | 17,603 |
Noncurrent deferred tax liabilities: | ||
Nondeductible intangible assets | -2,430 | -3,662 |
Other | 0 | -548 |
Gross noncurrent deferred tax liabilities | -2,430 | -4,210 |
Valuation allowance | -2,483 | -1,086 |
Net noncurrent deferred tax assets | $14,452 | $12,307 |
Weighted_Average_Shares_Calcul
Weighted Average Shares - Calculation of Weighted Average Shares (Detail) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Earnings Per Share [Abstract] | |||||
Basic weighted-average common shares outstanding | 86,858 | 86,946 | [1] | 85,666 | [1] |
Effect of dilutive stock options | 2,213 | 1,955 | 1,614 | ||
Diluted weighted-average common and common-equivalent shares outstanding | 89,071 | 88,901 | [1] | 87,280 | [1] |
[1] | Prior period results have been adjusted to reflect the two-for-one stock split effected in the form of a stock dividend which occurred in the third quarter of 2013. |
Weighted_Average_Shares_Additi
Weighted Average Shares - Additional Information (Detail) | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Sep. 29, 2013 | |
Class of Stock [Line Items] | |||||
Stock options to purchase anti-dilutive common stock | 1,286,403 | 1,385,901 | 1,790,911 | ||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Stock split ratio | 2 | 2 |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Concentration Risk [Line Items] | |
Number of reportable segments | 2 |
Total Revenue | Revenue from a single customer, percentage | |
Concentration Risk [Line Items] | |
Maximum percentage of revenue accountability | 14.00% |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Information About the Company's Segments (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Product revenue | $451,066 | $326,786 | $295,588 |
Service revenue | 35,204 | 27,100 | 28,691 |
Depreciation and amortization | 12,467 | 11,102 | 10,858 |
Goodwill and intangibles | 92,388 | 96,412 | 96,459 |
Operating income | 143,663 | 86,368 | 83,407 |
MVSD [Member] | |||
Segment Reporting Information [Line Items] | |||
Product revenue | 409,017 | 298,186 | 263,308 |
Service revenue | 17,432 | 9,465 | 10,388 |
Depreciation and amortization | 10,580 | 9,569 | 9,505 |
Goodwill and intangibles | 87,059 | 90,718 | 90,390 |
Operating income | 156,552 | 99,383 | 89,378 |
SISD [Member] | |||
Segment Reporting Information [Line Items] | |||
Product revenue | 42,049 | 28,600 | 32,280 |
Service revenue | 17,772 | 17,635 | 18,303 |
Depreciation and amortization | 1,138 | 1,078 | 963 |
Goodwill and intangibles | 5,329 | 5,694 | 6,069 |
Operating income | 15,598 | 8,990 | 11,941 |
Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 749 | 455 | 390 |
Operating income | ($28,487) | ($22,005) | ($17,912) |
Segment_and_Geographic_Informa4
Segment and Geographic Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product revenue | $451,066 | $326,786 | $295,588 |
Service revenue | 35,204 | 27,100 | 28,691 |
Long-lived assets | 141,831 | 135,686 | 134,106 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product revenue | 132,298 | 103,610 | 87,877 |
Service revenue | 15,143 | 13,505 | 13,248 |
Long-lived assets | 118,991 | 118,619 | 120,596 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product revenue | 192,463 | 104,497 | 95,376 |
Service revenue | 12,536 | 6,012 | 6,083 |
Long-lived assets | 11,385 | 5,059 | 4,939 |
Japan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product revenue | 38,952 | 33,763 | 38,151 |
Service revenue | 4,434 | 4,103 | 5,043 |
Long-lived assets | 1,551 | 1,732 | 2,229 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product revenue | 87,353 | 84,916 | 74,184 |
Service revenue | 3,091 | 3,480 | 4,317 |
Long-lived assets | $9,904 | $10,276 | $6,342 |
Schedule_II_Valuation_and_Qual1
Schedule II -Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reserve for Uncollectible Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $1,354 | $1,131 | $1,240 |
Charged to Costs and Expenses | -60 | 286 | 63 |
Deductions | -141 | -77 | -184 |
Other | -58 | 14 | 12 |
Balance at End of Period | 1,095 | 1,354 | 1,131 |
Reserve for Inventory Obsolescence [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 4,893 | 3,414 | 4,359 |
Charged to Costs and Expenses | 3,535 | 2,368 | 949 |
Deductions | -1,989 | -1,009 | -1,924 |
Other | -469 | 120 | 30 |
Balance at End of Period | 5,970 | 4,893 | 3,414 |
Deferred Tax Valuation Allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 1,758 | 1,489 | 3,400 |
Charged to Costs and Expenses | 725 | 642 | 546 |
Deductions | 0 | -373 | -2,457 |
Balance at End of Period | $2,483 | $1,758 | $1,489 |