Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 29, 2017 | Jul. 03, 2016 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CGNX | ||
Entity Registrant Name | COGNEX CORP | ||
Entity Central Index Key | 851,205 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 86,053,044 | ||
Entity Public Float | $ 3,486,705,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 520,753 | $ 450,557 | $ 426,449 |
Cost of revenue | 115,590 | 102,571 | 94,067 |
Gross margin | 405,163 | 347,986 | 332,382 |
Research, development, and engineering expenses | 78,269 | 69,791 | 55,831 |
Selling, general, and administrative expenses | 166,110 | 156,674 | 148,699 |
Operating income | 160,784 | 121,521 | 127,852 |
Foreign currency gain (loss) | 101 | 1,122 | 1,031 |
Investment income | 7,039 | 3,674 | 3,156 |
Other income (expense) | 871 | 645 | (283) |
Income from continuing operations before income tax expense | 168,795 | 126,962 | 131,756 |
Income tax expense on continuing operations | 18,968 | 19,298 | 20,915 |
Net income from continuing operations | 149,827 | 107,664 | 110,841 |
Net income (loss) from discontinued operations (Note 19) | (255) | 79,410 | 10,644 |
Net income | $ 149,572 | $ 187,074 | $ 121,485 |
Basic earnings per weighted-average common and common-equivalent share: | |||
Net income from continuing operations (in dollars per share) | $ 1.76 | $ 1.25 | $ 1.28 |
Net income from discontinued operations (in dollars per share) | (0.01) | 0.92 | 0.12 |
Net income (in dollars per share) | 1.75 | 2.17 | 1.40 |
Diluted earnings per weighted-average common and common-equivalent share: | |||
Net income from continuing operations (in dollars per share) | 1.72 | 1.22 | 1.24 |
Net income from discontinued operations (in dollars per share) | 0 | 0.91 | 0.12 |
Net income (in dollars per share) | $ 1.72 | $ 2.13 | $ 1.36 |
Weighted-average common and common-equivalent shares outstanding: | |||
Basic (in shares) | 85,338 | 86,296 | 86,858 |
Diluted (in shares) | 87,072 | 87,991 | 89,071 |
Cash dividends per common share (in dollars per share) | $ 0.30 | $ 0.21 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 149,572 | $ 187,074 | $ 121,485 |
Cash flow hedges: | |||
Net unrealized gain (loss), net of tax of ($22), $22, and $0 in 2016, 2015, and 2014, respectively | (567) | (27) | (118) |
Reclassification of net realized (gain) loss into current operations | 398 | 201 | 46 |
Net change related to cash flow hedges | (169) | 174 | (72) |
Available-for-sale investments: | |||
Net unrealized gain (loss), net of tax of $248, ($279), and $40 in 2016, 2015, and 2014, respectively | 1,672 | (939) | 579 |
Reclassification of net realized (gain) loss into current operations | (191) | (344) | (673) |
Net change related to available-for-sale investments | 1,481 | (1,283) | (94) |
Foreign currency translation adjustments: | |||
Foreign currency translation adjustments, net of tax of ($228), ($711) and ($870) in 2016, 2015, and 2014, respectively | (5,616) | (11,616) | (9,400) |
Net change related to foreign currency translation adjustments | (5,616) | (11,616) | (9,400) |
Other comprehensive income (loss), net of tax | (4,304) | (12,725) | (9,566) |
Total comprehensive income | $ 145,268 | $ 174,349 | $ 111,919 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Tax effect of unrealized gain on cash flow hedges | $ (22) | $ 22 | $ 0 |
Tax effect of unrealized gain (loss) on available-for-sale investments | 248 | (279) | 40 |
Tax effect of foreign currency translation adjustment | $ (228) | $ (711) | $ (870) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 79,641,000 | $ 51,975,000 |
Short-term investments | 341,194,000 | 296,468,000 |
Accounts receivable, less reserves of $873 and $736 in 2016 and 2015, respectively | 55,438,000 | 42,846,000 |
Unbilled revenue | 2,217,000 | 24,000 |
Inventories | 26,984,000 | 37,334,000 |
Prepaid expenses and other current assets | 20,870,000 | 15,847,000 |
Total current assets | 526,344,000 | 444,494,000 |
Long-term investments | 324,335,000 | 273,088,000 |
Property, plant, and equipment, net | 53,992,000 | 53,285,000 |
Goodwill | 95,280,000 | 81,448,000 |
Intangible assets, net | 8,312,000 | 6,315,000 |
Deferred income taxes | 28,022,000 | 26,517,000 |
Other assets | 2,319,000 | 2,609,000 |
Total assets | 1,038,604,000 | 887,756,000 |
Current liabilities: | ||
Accounts payable | 9,830,000 | 7,860,000 |
Accrued expenses | 42,539,000 | 33,272,000 |
Accrued income taxes | 5,193,000 | 985,000 |
Deferred revenue and customer deposits | 8,211,000 | 11,571,000 |
Total current liabilities | 65,773,000 | 53,688,000 |
Deferred income taxes | 0 | 319,000 |
Reserve for income taxes | 5,361,000 | 4,830,000 |
Other non-current liabilities | 4,871,000 | 3,252,000 |
Total liabilities | 76,005,000 | 62,089,000 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity: | ||
Common stock, $.002 par value – Authorized: 200,000 and 140,000 shares in 2016 and 2015, respectively, issued and outstanding: 85,939 and 84,856 shares in 2016 and 2015, respectively | 172,000 | 170,000 |
Additional paid-in capital | 375,030,000 | 311,008,000 |
Retained earnings | 643,825,000 | 566,613,000 |
Accumulated other comprehensive loss, net of tax | (56,428,000) | (52,124,000) |
Total shareholders’ equity | 962,599,000 | 825,667,000 |
Total liabilities and shareholders' equity | $ 1,038,604,000 | $ 887,756,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Valuation Allowances and Reserves, Balance | $ 873 | $ 736 |
Common stock par value, in dollars per share | $ 0.002 | $ 0.002 |
Common stock, shares authorized | 200,000,000 | 140,000,000 |
Common stock, shares issued | 85,939,000 | 84,856,000 |
Common stock, shares outstanding | 85,939,000 | 84,856,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 149,572 | $ 187,074 | $ 121,485 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Gain) loss on sale of discontinued business | 255 | (78,182) | 0 |
Stock-based compensation expense | 20,558 | 20,168 | 15,158 |
Depreciation of property, plant, and equipment | 11,678 | 9,868 | 8,443 |
Amortization of intangible assets | 3,391 | 4,250 | 4,024 |
Amortization of discounts or premiums on investments | 383 | 690 | 1,823 |
Realized (gain) loss on sale of investments | (1,506) | (344) | (673) |
Revaluation of contingent consideration | (463) | (790) | 0 |
Change in deferred income taxes | (1,908) | (1,409) | (2,364) |
Accounts receivable | (13,251) | (3,950) | (915) |
Unbilled revenue | (2,308) | (242) | (563) |
Inventories | 10,409 | (9,457) | (11,750) |
Accounts payable | 2,087 | (8,872) | 10,896 |
Accrued expenses | 7,771 | (2,831) | 7,812 |
Accrued income taxes | 2,110 | 9,957 | 7,700 |
Deferred revenue and customer deposits | (3,188) | 1,527 | 5,893 |
Other | (3,509) | 870 | (3,128) |
Net cash provided by operating activities | 182,081 | 128,327 | 163,841 |
Cash flows from investing activities: | |||
Purchases of investments | (751,868) | (686,650) | (422,633) |
Maturities and sales of investments | 657,250 | 601,441 | 339,470 |
Purchases of property, plant, and equipment | (12,816) | (18,228) | (20,934) |
Cash paid for acquisition of business, net of cash acquired | (14,285) | (1,023) | 0 |
Cash paid for purchased technology | 0 | (10,475) | 0 |
Net cash received (paid) from sale of discontinued business | (113) | 104,388 | 0 |
Net cash used in investing activities | (121,832) | (10,547) | (104,097) |
Cash flows from financing activities: | |||
Issuance of common stock under stock plans | 43,468 | 27,582 | 16,930 |
Repurchase of common stock | (47,149) | (126,351) | (59,673) |
Payment of dividends | (25,213) | (18,062) | 0 |
Payment of contingent consideration | (337) | 0 | 0 |
Net cash used in financing activities | (29,231) | (116,831) | (42,743) |
Effect of foreign exchange rate changes on cash and cash equivalents | (3,352) | (4,668) | (1,951) |
Net change in cash and cash equivalents | 27,666 | (3,719) | 15,050 |
Cash and cash equivalents at beginning of year | 51,975 | 55,694 | 40,644 |
Cash and cash equivalents at end of year | 79,641 | 51,975 | 55,694 |
Stock-based compensation expense | 0 | 1,533 | 1,099 |
Depreciation and amortization expense | 0 | 566 | 1,141 |
Capital expenditures | $ 0 | $ 482 | $ 631 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY - USD ($) shares in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2013 | $ 643,912,000 | $ 174,000 | $ 211,440,000 | $ 462,131,000 | $ (29,833,000) |
Beginning Balance, Shares at Dec. 31, 2013 | 86,831 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock option plans | 16,930,000 | $ 2,000 | 16,928,000 | ||
Issuance of common stock under stock option plans, shares | 1,245 | ||||
Repurchase of common stock | (59,673,000) | $ 3,000 | (59,670,000) | ||
Repurchase of common stock, shares | (1,534) | ||||
Stock-based compensation expense | 15,158,000 | 15,158,000 | |||
Excess tax benefit from stock option exercises | 7,871,000 | 7,871,000 | |||
Tax benefit for research and development credits as a result of stock options | 320,000 | 320,000 | |||
Net income | 121,485,000 | 121,485,000 | |||
Net unrealized gain (loss) on cash flow hedges, net of tax | (118,000) | (118,000) | |||
Reclassification of net realized (gain) loss into current operations | 46,000 | 46,000 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | 579,000 | 579,000 | |||
Reclassification of net realized gain on the sale of available-for-sale investments | (673,000) | (673,000) | |||
Foreign currency translation adjustments, net of tax | (9,400,000) | (9,400,000) | |||
Balance at Dec. 31, 2014 | 736,437,000 | $ 173,000 | 251,717,000 | 523,946,000 | (39,399,000) |
Balance, Shares at Dec. 31, 2014 | 86,542 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock option plans | 27,582,000 | $ 3,000 | 27,579,000 | ||
Issuance of common stock under stock option plans, shares | 1,520 | ||||
Repurchase of common stock | (126,351,000) | $ (6,000) | (126,345,000) | ||
Repurchase of common stock, shares | (3,206) | ||||
Stock-based compensation expense | 21,274,000 | 21,274,000 | |||
Excess tax benefit from stock option exercises | 9,964,000 | 9,964,000 | |||
Tax benefit for research and development credits as a result of stock options | 474,000 | 474,000 | |||
Payment of dividends | (18,062,000) | (18,062,000) | |||
Net income | 187,074,000 | 187,074,000 | |||
Net unrealized gain (loss) on cash flow hedges, net of tax | (27,000) | (27,000) | |||
Reclassification of net realized (gain) loss into current operations | 201,000 | 201,000 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (939,000) | (939,000) | |||
Reclassification of net realized gain on the sale of available-for-sale investments | (344,000) | (344,000) | |||
Foreign currency translation adjustments, net of tax | (11,616,000) | (11,616,000) | |||
Balance at Dec. 31, 2015 | $ 825,667,000 | $ 170,000 | 311,008,000 | 566,613,000 | (52,124,000) |
Balance, Shares at Dec. 31, 2015 | 84,856 | 84,856 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock option plans | $ 43,468,000 | $ 4,000 | 43,464,000 | ||
Issuance of common stock under stock option plans, shares | 1,977 | 1,977 | |||
Repurchase of common stock | $ (47,149,000) | $ (2,000) | (47,147,000) | ||
Repurchase of common stock, shares | (894) | ||||
Stock-based compensation expense | 20,558,000 | 20,558,000 | |||
Payment of dividends | (25,213,000) | (25,213,000) | |||
Net income | 149,572,000 | 149,572,000 | |||
Net unrealized gain (loss) on cash flow hedges, net of tax | (567,000) | (567,000) | |||
Reclassification of net realized (gain) loss into current operations | 398,000 | 398,000 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | 1,672,000 | 1,672,000 | |||
Reclassification of net realized gain on the sale of available-for-sale investments | (191,000) | (191,000) | |||
Foreign currency translation adjustments, net of tax | (5,616,000) | (5,616,000) | |||
Balance at Dec. 31, 2016 | $ 962,599,000 | $ 172,000 | $ 375,030,000 | $ 643,825,000 | $ (56,428,000) |
Balance, Shares at Dec. 31, 2016 | 85,939 | 85,939 |
CONSOLIDATED STATEMENTS OF SHA9
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax effect of unrealized gain on derivative instruments | $ (22) | $ 22 | $ 0 |
Tax effect of unrealized gain on available-for-sale investments | 248 | (279) | 40 |
Tax benefit of foreign currency translation adjustment | $ (228) | $ (711) | $ (870) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 and derivative instruments. 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. 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. 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 six 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. 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 five to seven years, and of completed technologies and other intangible assets from five to seven 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. Warranty Obligations The Company warrants its products to be free from defects in material and workmanship for periods primarily ranging from one 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, consulting, and training 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, and revenue from consulting and training services is recognized when the services have been provided. When customer-specified acceptance criteria exists that are substantive, product revenue is deferred, along with associated incremental direct costs, until these criteria have been met and any remaining performance obligations are inconsequential or perfunctory. For the majority of the Company’s revenue transactions, revenue recognition and invoicing both occur upon delivery. In certain circumstances, however, the agreement with the customer provides for invoicing terms which differ from revenue recognition criteria, resulting in either deferred revenue or unbilled revenue. Invoicing that precedes revenue recognition is common for various customers in the logistics industry where milestone billings are prevalent, resulting in deferred revenue. Conversely, the Company records unbilled revenue in connection with a material customer in the consumer electronics industry. For this arrangement, the Company recognizes revenue for all delivered products when the first production line that incorporates these products is validated, because at that point the remaining performance obligations are inconsequential or perfunctory. Invoicing for all delivered products occurs as the production lines incorporating those products are installed over a period of several weeks. The Company also has a technical support obligation related to this arrangement for which revenue is deferred and recognized over the support period of approximately six months. 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. BESP has been established for each product line 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 pricing practices, gross margin objectives, customer size, and market share goals. 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. Certain customers are offered pricing discounts on current sales based upon purchasing volumes or preferred pricing arrangements, for which revenue is reported net of these discounts. The Company reports revenue for certain of its product accessory sales on a net basis, by reducing the gross sale amount by the related costs, when certain factors in the arrangement with the customer indicate that the Company is acting as an agent, rather than as a principal. 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 may be 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. Advertising Costs Advertising costs are expensed as incurred and totaled $1,674,000 in 2016 , $2,009,000 in 2015 , and $2,609,000 in 2014 . 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 non-operating 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, 2016 and December 31, 2015 , consists of foreign currency translation adjustments of $55,262,000 and $49,646,000 , respectively; net unrealized gains on available-for-sale investments of $68,000 and net unrealized losses on available-for-sale investments of $1,413,000 , respectively; net unrealized gains on derivative instruments of $ 37,000 and $ 206,000 , respectively; and losses on currency swaps, net of gains on long-term intercompany loans of $1,271,000 in each year. Amounts reclassified from accumulated other comprehensive income to investment income on the Consolidated Statements of Operations were net realized gains of $191,000 , $344,000 , and $673,000 for 2016 , 2015 , and 2014 , 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 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; however, we may not detect all product quality issues through these programs and processes. Certain components are presently sourced from a single vendor that is selected based on price and performance considerations. In the event of a supply disruption from a single-source vendor, these components may be purchased from an alternative vendor, which may result in manufacturing delays based on the lead time of the new vendor. Certain key electronic and mechanical 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 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 a |
New Pronouncements
New Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Pronouncements | New Pronouncements 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. In March 2016, ASU 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)," was issued, in April 2016, ASU 2016-10, "Identifying Performance Obligations and Licensing," was issued, in May 2016, ASU 2016-12, "Narrow-Scope Improvements and Practical Expedients" was issued, and in December 2016, ASU 2016-20. "Technical Corrections and Improvements," was issued. These Updates do not change the core principle of the guidance under ASU 2014-09, but rather provide implementation guidance. ASU 2015-14, "Deferral of the effective date," amended the effective date of ASU 2014-09 for public companies to annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but only beginning after December 15, 2016. The Financial Accounting Standards Board may release additional implementation guidance in future periods. We expect to adopt this standard using the full retrospective method to present all periods reported on a consistent basis. Upon adoption, revenue for software-only products sold as part of multiple-deliverable arrangements will no longer be deferred when vendor-specific objective evidence of fair value does not exist for undelivered elements of the arrangement. This change will result in earlier recognition of revenue. In addition, we expect certain of the Company’s product accessory sales, which are currently reported on a net basis, to be reported on a gross basis as a result of applying the expanded guidance in the new standard related to principal versus agent considerations. This change will result in the Company reporting higher revenue and higher cost of revenue when these sales are reported on a gross basis, although the gross margin dollars will not change. We do not expect either of these changes to have a material impact on total revenue. Management will continue to evaluate the impact of this standard . Accounting Standards Update (ASU) 2015-11, "Inventory - Simplifying the Measurement of Inventory" ASU 2015-11 requires companies to measure most inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which a company must measure inventory at the lower of cost or market. This ASU eliminates the need to determine replacement cost and evaluate whether said cost is within a quantitative range. This ASU also further aligns U.S. GAAP and international accounting standards. For public companies, the guidance in ASU 2015-11 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. Management does not expect ASU 2015-11 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2016-01, "Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities" ASU 2016-01 provides guidance related to certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this Update affect all entities that hold financial assets or owe financial liabilities. This ASU requires equity investments (except those accounted under the equity method) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment. This ASU also eliminates the requirement for public companies to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet, and it requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. For public companies, the guidance in ASU 2016-01 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is not permitted except for certain amendments in this Update. Management does not expect ASU 2016-01 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2016-02, "Leases" ASU 2016-02 creates Topic 842, Leases. The objective of this Update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet, and disclosing key information about leasing arrangements. This ASU applies to any entity that enters into a lease, although lessees will see the most significant changes. The main difference between current U.S. GAAP and Topic 842 is the recognition of lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under current U.S. GAAP. Topic 842 distinguishes between finance leases and operating leases, which are substantially similar to the classification criteria for distinguishing between capital leases and operating leases under current U.S. GAAP. For public companies, the guidance in ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. This ASU should be applied using a modified retrospective approach. Management is in the process of evaluating the impact of this Update. Accounting Standards Update (ASU) 2016-05, "Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships" ASU 2016-05 applies to all reporting entities for which there is a change in the counterparty to a derivative instrument that has been designated as the hedging instrument. The amendments in this Update clarify that a change in the counterparty does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public companies, the guidance in ASU 2016-05 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. This ASU should be applied on either a prospective basis or a modified retrospective basis. Management does not expect ASU 2016-05 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2016-13, "Financial Instruments - Measurement of Credit Losses" ASU 2016-13 applies to all reporting entities holding financial assets that are not accounted for at fair value through net income (debt securities). The amendments in this Update eliminate the probable initial recognition threshold to recognize a credit loss under current U.S. GAAP and, instead, reflect an entity’s current estimate of all expected credit losses. In addition, this Update broadens the information an entity must consider in developing the credit loss estimate, including the use of reasonable and supportable forecasted information. The amendments in this Update require that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down and an entity will be able to record reversals of credit losses in current period net income. For public companies, the guidance in ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. This ASU should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. Management does not expect ASU 2016-13 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2016-16, "Income Taxes - Intra-Entity Transfers of Assets Other than Inventory" ASU 2016-16 applies to all reporting entities with intra-entity transfers of assets other than inventory. The amendments in this Update allow the recognition of deferred income taxes for an intra-entity transfer of an asset other than inventory when the transfer occurs, as opposed to when the asset has been sold to an outside party under current U.S. GAAP. Two common examples of assets included in the scope of this Update are intellectual property and property, plant, and equipment. For public companies, the amendments in ASU 2016-16 are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. This ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Management is in the process of evaluating the impact of this Update. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Assets: Money market instruments $ 2,334 $ — $ — Corporate bonds — 311,140 — Treasury bills — 159,455 — Asset-backed securities — 96,560 — Euro liquidity fund — 46,499 — Sovereign bonds — 30,883 — Agency bonds — 13,242 — Municipal bonds — 7,750 — Cash flow hedge forward contracts — 43 — Economic hedge forward contracts — 1 — Liabilities: Economic hedge forward contracts — (11 ) — Contingent consideration liabilities — — (4,173 ) 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 in 2016 , 2015 , or 2014 . The Company's contingent consideration liabilities are reported at fair value based upon probability-adjusted present values of the consideration expected to be paid, using significant inputs that are not observable in the market, and are therefore classified as Level 3. Key assumptions used in these estimates include probability assessments with respect to the likelihood of achieving certain revenue milestones, for the Manatee Works, Inc. (Manatee) and Chiaro Technologies LLC (Chiaro) acquisitions, and the likelihood of completing certain tasks for the EnShape GmbH (EnShape) acquisition. The fair values of these contingent consideration liabilities were calculated using discount rates consistent with the level of risk of achievement, and are remeasured each reporting period with changes in fair value recorded in "Other income (expense)" on the Consolidated Statements of Operations. The following table summarizes the activity for the Company's liabilities measured at fair value using Level 3 inputs (in thousands): Balance as of December 31, 2014 $ — Contingent consideration resulting from Manatee acquisition 3,790 Fair value adjustment to Manatee contingent consideration (790 ) Balance as of December 31, 2015 3,000 Payment of Manatee contingent consideration (337 ) Fair value adjustment to Manatee contingent consideration (463 ) Contingent consideration resulting from EnShape acquisition 1,362 Contingent consideration resulting from Chiaro acquisition 611 Balance as of December 31, 2016 $ 4,173 Refer to Note 20 to the Consolidated Financial Statements for further information regarding acquisitions. 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. During 2016, the Company received a distribution from the Partnership that was accounted for as a return of capital and reduced the carrying value of this investment to zero . Accordingly, the Company is no longer required to measure this investment at fair value on a non-recurring basis. Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis Non-financial assets such as property, plant, and equipment, goodwill, and intangible assets 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 2016 , 2015 , or 2014 . |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 Cash $ 77,307 $ 45,951 Money market instruments 2,334 6,024 Cash and cash equivalents 79,641 51,975 Corporate bonds 141,188 54,376 Asset-backed securities 69,614 61,994 Treasury bills 67,175 109,360 Euro liquidity fund 46,499 47,730 Sovereign bonds 7,298 21,440 Municipal bonds 6,517 590 Agency bonds 2,903 978 Short-term investments 341,194 296,468 Corporate bonds 169,952 176,575 Treasury bills 92,280 44,437 Asset-backed securities 26,946 24,582 Sovereign bonds 23,585 13,503 Agency bonds 10,339 8,180 Municipal bonds 1,233 4,869 Limited partnership interest (accounted for using cost method) — 942 Long-term investments 324,335 273,088 $ 745,170 $ 621,531 The Company’s cash balance included foreign bank balances totaling $68,076,000 and $39,279,000 as of December 31, 2016 and 2015 , respectively. Corporate bonds consist of debt securities issued by both domestic and foreign companies; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; treasury bills consist of debt securities issued by the U.S. government; the Euro liquidity fund invests in a portfolio of investment-grade bonds; sovereign bonds consist of direct debt issued by foreign governments; municipal bonds consist of debt securities issued by state and local government entities; and agency bonds consist of domestic or foreign obligations of government agencies and government- sponsored enterprises that have government backing. The Euro liquidity fund is denominated in Euros, and the remaining securities are denominated in U.S. Dollars. The following table summarizes the Company’s available-for-sale investments as of December 31, 2016 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Corporate bonds $ 141,216 $ 37 $ (65 ) $ 141,188 Asset-backed securities 69,623 18 (27 ) 69,614 Treasury bills 67,201 21 (47 ) 67,175 Euro liquidity fund 46,173 326 — 46,499 Sovereign bonds 7,313 — (15 ) 7,298 Municipal bonds 6,517 2 (2 ) 6,517 Agency bonds 2,900 3 — 2,903 Long-term: Corporate bonds 169,911 406 (365 ) 169,952 Treasury bills 92,392 40 (152 ) 92,280 Asset-backed securities 26,968 25 (47 ) 26,946 Sovereign bonds 23,704 6 (125 ) 23,585 Agency bonds 10,310 29 — 10,339 Municipal bonds 1,236 — (3 ) 1,233 $ 665,464 $ 913 $ (848 ) $ 665,529 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, 2016 (in thousands): Unrealized Loss Position For Less than 12 Months Unrealized Loss Total Fair Value Unrealized Losses Fair Value Unrealized Fair Value Unrealized Corporate bonds $ 117,853 $ (400 ) $ 14,931 $ (30 ) $ 132,784 $ (430 ) Treasury bills 99,358 (199 ) — — 99,358 (199 ) Asset-backed securities 45,429 (70 ) 5,998 (4 ) 51,427 (74 ) Sovereign bonds 27,687 (140 ) — — 27,687 (140 ) Municipal bonds 4,028 (5 ) — — 4,028 (5 ) $ 294,355 $ (814 ) $ 20,929 $ (34 ) $ 315,284 $ (848 ) As of December 31, 2016 , the Company did not recognize any 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 $292,000 in 2016 , $549,000 in 2015 , and $843,000 in 2014, and gross realized losses on the sale of debt securities totaling $101,000 in 2016 , $205,000 in 2015 , and $170,000 in 2014. 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 summarizes the effective maturity dates of the Company’s available-for-sale investments as of December 31, 2016 (in thousands): <1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total Corporate bonds $ 141,188 $ 84,007 $ 77,975 $ 2,211 $ 5,759 $ 311,140 Treasury bills 67,175 92,280 — — — 159,455 Asset-backed securities 69,614 8,957 7,372 10,530 87 96,560 Euro liquidity fund 46,499 — — — — 46,499 Sovereign bonds 7,298 19,007 4,578 — — 30,883 Agency bonds 2,903 7,614 2,725 — — 13,242 Municipal bonds 6,517 1,233 — — — 7,750 $ 341,194 $ 213,098 $ 92,650 $ 12,741 $ 5,846 $ 665,529 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 an expiration date of December 31, 2017. The Company does not have the right to withdraw from the partnership prior to this date. As of December 31, 2016 , 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, 2017. Contributions and distributions are at the discretion of Venrock’s management. No contributions were made in 2016. The Company received cash distributions totaling $2,257,000 in 2016, of which $942,000 was accounted for as a return of capital, reducing the carrying value of this investment to zero, with the remaining $1,315,000 recorded as investment income. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): December 31, 2016 2015 Raw materials $ 18,224 $ 27,301 Work-in-process 2,760 3,136 Finished goods 6,000 6,897 $ 26,984 $ 37,334 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 Land $ 3,951 $ 3,951 Buildings 23,280 23,439 Building improvements 28,049 25,741 Leasehold improvements 5,237 4,999 Computer hardware and software 39,409 35,350 Manufacturing test equipment 18,726 16,201 Furniture and fixtures 4,843 4,401 123,495 114,082 Less: accumulated depreciation (69,503 ) (60,797 ) $ 53,992 $ 53,285 The cost of property, plant, and equipment totaling $3,191,000 and $2,285,000 was removed from both the asset and accumulated depreciation balances in 2016 and 2015 , respectively. Gains and 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, 2016 and 2015 , and accumulated depreciation of $2,922,000 and $2,775,000 as of December 31, 2016 and 2015 , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying value of goodwill were as follows (in thousands): Amount Balance as of December 31, 2014 $ 77,388 Acquisition of Manatee Works, Inc. 4,060 Balance as of December 31, 2015 81,448 Acquisition of AQSense, S.L. 1,383 Acquisition of EnShape GmbH 8,613 Acquisition of Chiaro Technologies LLC 2,911 Acquisition of Webscan, Inc. 925 Balance as of December 31, 2016 $ 95,280 Refer to Note 20 to the Consolidated Financial Statements for further information regarding acquisitions. On July 6, 2015, the Company completed the sale of its Surface Inspection Systems Division (SISD). Goodwill assigned to SISD was $4,301,000 and was included as part of the sale. The Company had previously identified SISD, along with its Modular Vision Systems Division (MVSD), as reporting units for purposes of its goodwill impairment test. Given the disposition of SISD, management reviewed its reporting units and concluded that the Company now has one reporting unit . For its 2016 analysis of goodwill, management elected to perform a qualitative assessment (commonly known as “step zero”). Based upon this assessment, management does not believe that it is more likely than not that the carrying value of the reporting unit exceeds its fair value. Factors that management considered in the qualitative 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 as of October 4, 2010, which was the last time it was performed under the two-step process. At that time, this analysis indicated that the fair value of the MVSD reporting unit exceeded its carrying value by approximately 208% . As of December 31, 2016 , management does not believe any qualitative factors exist that would change the conclusion of their assessment. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Amortized intangible assets consisted of the following (in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 37,422 $ 638 Customer relationships 6,605 4,836 $ 1,769 Completed technologies 8,003 2,098 5,905 Balance as of December 31, 2016 $ 52,668 $ 44,356 $ 8,312 Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 35,051 $ 3,009 Customer relationships 4,880 4,749 131 Completed technologies 4,340 1,165 3,175 Balance as of December 31, 2015 $ 47,280 $ 40,965 $ 6,315 Estimated amortization expense for each of the five succeeding fiscal years and thereafter is as follows (in thousands): Year Ended December 31, Amount 2017 $ 2,311 2018 1,770 2019 1,395 2020 971 2021 794 Thereafter 1,071 $ 8,312 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2016 2015 Company bonuses $ 11,462 $ 4,895 Salaries, commissions, and payroll taxes 7,193 4,859 Vacation 4,860 4,482 Warranty obligations 4,335 4,174 Foreign retirement obligations 3,388 3,249 Other 11,301 11,613 $ 42,539 $ 33,272 The changes in the warranty obligation were as follows (in thousands): Balance as of December 31, 2014 $ 4,086 Provisions for warranties issued during the period 4,383 Fulfillment of warranty obligations (3,873 ) Foreign exchange rate changes (422 ) Balance as of December 31, 2015 4,174 Provisions for warranties issued during the period 3,001 Fulfillment of warranty obligations (2,689 ) Foreign exchange rate changes (151 ) Balance as of December 31, 2016 $ 4,335 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As of December 31, 2016 , the Company had outstanding purchase orders totaling $3,352,000 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 2017. The Company conducts certain of its operations in leased facilities. These lease agreements expire at various dates through 2024 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 $6,090,000 in 2016 , $5,778,000 in 2015 , and $5,560,000 in 2014 . Future minimum rental payments under these agreements are as follows (in thousands): Year Ended December 31, Amount 2017 $ 5,054 2018 3,303 2019 2,164 2020 1,853 2021 1,735 Thereafter 1,498 $ 15,607 The Company owns buildings adjacent to its corporate headquarters that are partially occupied with tenants who have lease agreements that expire at various dates through 2021. Annual rental income totaled $1,911,000 in 2016 , $1,921,000 in 2015 , and $1,794,000 in 2014 . 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 Ended December 31, Amount 2017 $ 812 2018 530 2019 543 2020 557 2021 187 Thereafter — $ 2,629 Contingencies In March 2013, the Company filed a lawsuit against Microscan Systems, Inc. (“Microscan”) and Code Corporation ("Code") 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 from manufacturing the product, and Microscan from selling and distributing the product. 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 owned by Microscan (the “'204 patent”). The lawsuit sought to prohibit the Company from manufacturing, selling, and distributing the DataMan ® 7500, 8500, 8600, and 9500 products. In June 2015, the Company executed a settlement agreement with Microscan requiring a payment by the Company of $3,500,000 which settles all outstanding litigation between the parties. The settlement included a patent license agreement valued at $1,667,000 that allows the Company to continue producing current models of its handheld barcode readers, which was recorded as an asset and is being amortized to cost of revenue over the five year life of the patent. The remaining $1,833,000 of the settlement was recorded as expense. All cases were dismissed by the end of July 2015. In July 2015, the Company also executed an immaterial settlement agreement with Code. This matter is now closed. 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 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. |
Indemnification Provisions
Indemnification Provisions | 12 Months Ended |
Dec. 31, 2016 | |
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 not material. 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 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 not material. 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 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 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 not material. Under the terms of the Company’s sale of its Surface Inspection Systems Division (SISD) to AMETEK, Inc., the Company has agreed to retain certain liabilities in connection with its business dealings occurring prior to the transaction closing date of July 6, 2015, and to indemnify AMETEK, Inc. in connection with these retained liabilities and for any breach of the representations and warranties made by the Company to AMETEK, Inc. in connection with the sale agreement itself, as is usual and customary in such transactions. A binding arbitration was concluded in the second quarter of 2016 with respect to certain product performance claims made by an SISD customer, for which the Company remained responsible under the indemnity provisions of the sale transaction. In that proceeding, the tribunal ordered the Company to pay the customer approximately $326,000 , primarily representing a refund of the product purchase price. The tribunal also ordered the customer to pay the Company approximately $45,000 , primarily representing reimbursement of legal fees. The net settlement of $281,000 was recorded in discontinued operations in the second quarter of 2016. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
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): December 31, 2016 December 31, 2015 Currency Notional Value USD Equivalent Notional Value USD Equivalent Derivatives Designated as Hedging Instruments: United States Dollar — $ — 16,720 $ 16,720 Japanese Yen 342,500 2,960 942,500 7,605 Hungarian Forint 39,000 130 547,000 1,893 Singapore Dollar 150 97 2,063 1,425 Canadian Dollar — — 41 37 British Pound — — 25 34 Derivatives Not Designated as Hedging Instruments: Japanese Yen 650,000 $ 5,554 700,000 $ 5,800 British Pound 1,350 1,658 1,650 2,441 Korean Won 1,750,000 1,450 1,400,000 1,187 Hungarian Forint 425,000 1,448 250,000 857 Singapore Dollar 1,350 929 1,525 1,074 Taiwanese Dollar 26,000 802 26,425 800 Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Derivatives Designated as Hedging Instruments: Cash flow hedge forward contracts Prepaid expenses and other current assets $ 43 $ 441 Accrued expenses $ — $ 201 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 1 $ 9 Accrued expenses $ 11 $ 43 The following table summarizes 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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Gross amounts of recognized assets $ 117 $ 479 Gross amounts of recognized liabilities $ 11 $ 279 Gross amounts offset (73 ) (29 ) Gross amounts offset — (35 ) Net amount of assets presented $ 44 $ 450 Net amount of liabilities presented $ 11 $ 244 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 Year Ended December 31, 2016 2015 2014 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ 37 $ 206 $ 32 Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ (438 ) $ (387 ) $ (14 ) Research, development, and engineering expenses 13 14 (42 ) Selling, general, and administrative expenses 27 172 10 Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations $ (398 ) $ (201 ) $ (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) $ (515 ) $ (13 ) $ 247 The following table summarizes the changes in accumulated other comprehensive income (loss), net of tax, related to derivative instruments (in thousands): Balance as of December 31, 2014 $ 32 Net unrealized loss on cash flow hedges (27 ) Reclassification of net realized loss on cash flow hedges into current operations 201 Balance as of December 31, 2015 206 Net unrealized loss on cash flow hedges (567 ) Reclassification of net realized loss on cash flow hedges into current operations 398 Balance as of December 31, 2016 $ 37 Net gains expected to be reclassified from accumulated other comprehensive income (loss), net of tax, into current operations within the next twelve months are $37,000 . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
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 On April 28, 2016, the Company's shareholders approved an amendment to the Company's Articles of Organization to increase the authorized number of shares of common stock from 140,000,000 to 200,000,000 . 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. 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 Repurchases In August 2015, the Company's Board of Directors authorized the repurchase of $100,000,000 of the Company's common stock. As of December 31, 2016, the Company repurchased 2,666,000 shares at a cost of $100,000,000 under this program, including 355,000 shares at a cost of $16,064,000 in 2016. Stock repurchases under this August 2015 program are now complete. In November 2015, the Company's Board of Directors authorized the repurchase of an additional $100,000,000 of the Company's common stock. Purchases under this November 2015 program commenced in 2016 upon completion of the August 2015 program. As of December 31, 2016, the Company repurchased 539,000 shares at a cost of $31,085,000 under this program, leaving a remaining authorized balance of $68,915,000 . Total stock repurchases in 2016 amounted to $47,149,000 . 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 The Company’s Board of Directors declared and paid cash dividends of $0.07 per share in the second, third, and fourth quarters of 2015, as well as in the first quarter of 2016. The dividend was increased to $0.075 in the second, third, and fourth quarters of 2016. Total cash dividends paid in 2016 amounted to $25,213,000 . The cash dividend in the second quarter of 2015 was the first dividend declared and paid since the fourth quarter of 2012 when the Company’s Board of Directors accelerated dividends in advance of an increase in the federal tax on dividends paid after December 31, 2012. Due to these accelerated payments, no cash dividends were declared or paid in 2013, 2014, or the first quarter of 2015. 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. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , the Company had 8,078,751 shares available for grant. Stock options are granted with an exercise price equal to the market value of the Company’s common stock at the grant date and generally vest over four years based upon continuous service and expire ten years from the grant date. Conditions of restricted stock awards 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: Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2015 6,644 $ 28.27 Granted 1,930 35.58 Exercised (1,977 ) 21.99 Forfeited or expired (164 ) 37.45 Outstanding as of December 31, 2016 6,433 $ 32.16 7.4 $ 202,368 Exercisable as of December 31, 2016 2,037 $ 22.21 5.3 $ 84,359 Options vested or expected to vest as of 5,837 $ 31.52 7.2 $ 187,350 (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, 2016 2015 2014 Risk-free rate 1.7 % 2.1 % 2.6 % Expected dividend yield 0.83 % 1.25 % — % Expected volatility 41 % 40 % 41 % Expected term (in years) 5.6 5.4 5.4 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. 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 77% of its stock options granted to senior management and 72% of its options granted to all other employees will actually vest. Therefore, the Company currently applies an estimated forfeiture rate of 9% to all unvested options for senior management and a rate of 11% for all other employees. The Company revised its estimated forfeiture rates in the first quarter of 2016 , 2015 and 2014 , resulting in an increase to compensation expense of $334,000 , $461,000 , and $288,000 in 2016 , 2015 , and 2014 , respectively. The weighted-average grant-date fair value of stock options granted was $12.65 in 2016 , $14.35 in 2015 , and $15.97 in 2014 . The total intrinsic value of stock options exercised was $55,580,000 in 2016 , $43,987,000 in 2015 , and $31,884,000 in 2014 . The total fair value of stock options vested was $18,114,000 in 2016 , $16,227,000 in 2015 , and $11,627,000 in 2014 . As of December 31, 2016 , total unrecognized compensation expense related to non-vested stock options was $19,742,000 , which is expected to be recognized over a weighted-average period of 1.52 years. The following table summarizes the Company's restricted stock activity: Shares (in thousands) Weighted-Average Grant Fair Value Aggregate Intrinsic Value (in thousands) (1) Nonvested as of December 31, 2015 20 $ 34.05 Granted — — Vested — — Forfeited or expired — — Nonvested as of December 31, 2016 20 $ 34.05 $ 1,272 (1) Fair market value as of December 31, 2016. 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 $20,558,000 and $6,747,000 , respectively, in 2016 , $21,274,000 and $7,127,000 , respectively, in 2015 , and $15,158,000 and $4,977,000 , respectively, in 2014 . No compensation expense was capitalized in 2016 , 2015 , or 2014 . The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Year Ended December 31, 2016 2015 2014 Cost of revenue $ 1,052 $ 1,515 $ 1,116 Research, development, and engineering 6,271 5,194 3,709 Selling, general, and administrative 13,235 13,032 9,234 Discontinued operations — 1,533 1,099 $ 20,558 $ 21,274 $ 15,158 Upon the sale of the Company's Surface Inspection Systems Division, completed on July 6, 2015, the Company accelerated the vesting of stock options with respect to 190,000 underlying shares, resulting in an additional $1,106,000 of stock option expense recorded in the third quarter of 2015. |
Employee Savings Plan
Employee Savings Plan | 12 Months Ended |
Dec. 31, 2016 | |
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 pay on a pre-tax basis subject to the annual dollar limitations established by the Internal Revenue Service. The Company currently matches 50% of the first 6% of pay an employee contributes. 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 $1,712,000 in 2016 , $1,845,000 in 2015 , and $1,555,000 in 2014 . 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, 2016 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes Domestic income from continuing operations before taxes was $23,939,000 in 2016 , $11,637,000 in 2015 , and $25,585,000 in 2014 . Foreign income from continuing operations before taxes was $144,856,000 in 2016 , $115,325,000 in 2015 , and $106,171,000 in 2014 . Income tax expense on continuing operations consisted of the following (in thousands): Year Ended December 31, 2016 2015 2014 Current: Federal $ 14,459 $ 16,430 $ 18,852 State (617 ) 378 608 Foreign 8,149 4,946 4,854 21,991 21,754 24,314 Deferred: Federal (3,031 ) (2,541 ) (2,569 ) State 1,066 (165 ) 7 Foreign (1,058 ) 250 (837 ) (3,023 ) (2,456 ) (3,399 ) $ 18,968 $ 19,298 $ 20,915 The Company records income tax expense on undistributed earnings that the Company does not intend to be indefinitely reinvested outside of the U.S. Substantially all of the Company’s undistributed international earnings intended to be indefinitely reinvested outside of the U.S. were generated by subsidiaries organized in Ireland, which has a statutory tax rate of 12.5% . As of December 31, 2016, U.S. income tax expense had not been recorded on a cumulative total of $498,238,000 of such earnings. The amount of unrecognized deferred tax liability related to these temporary differences is estimated to be $151,966,000 . As of December 31, 2016 and December 31, 2015, respectively, $437,691,000 and $352,621,000 , of the Company’s cash, cash equivalents and investments were held by foreign subsidiaries and are generally denominated in U.S. dollars. Amounts held by foreign subsidiaries are generally subject to U.S. income taxation on repatriation to the U.S. A reconciliation of the U.S. federal statutory corporate tax rate to the Company’s income tax expense on continuing operations, or effective tax rate, was as follows: Year Ended December 31, 2016 2015 2014 Income tax provision at federal statutory corporate tax rate 35 % 35 % 35 % State income taxes, net of federal benefit 1 — — Foreign tax rate differential (17 ) (19 ) (19 ) Tax credit (1 ) — — Discrete tax benefit related to employee stock option exercises (7 ) — — Other discrete tax events — (2 ) (1 ) Other — 1 1 Income tax provision on continuing operations 11 % 15 % 16 % The majority of income earned outside of the United States is permanently reinvested to provide funds for international expansion. The Company is tax resident in numerous jurisdictions around the world and has identified its major jurisdictions as the United States, Ireland, and China. The statutory tax rate is 12.5% in Ireland and 25% in China. International rights to certain of the Company’s intellectual property are held by a subsidiary whose legal jurisdiction does not tax this income, resulting in a foreign effective tax rate lower than the above mentioned statutory rates. These differences result in a decrease in the effective tax rate by 17 , 19 , and 19 percentage points in 2016, 2015, and 2014, respectively. In 2016, the Company adopted Accounting Standards Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," which was issued by the Financial Accounting Standards Board in March 2016. This Update requires excess tax benefits to be recognized as an income tax benefit in the income statement. Previous guidance required excess tax benefits to be recognized as additional paid-in-capital in shareholders' equity on the balance sheet. This provision is required to be applied prospectively and therefore, prior periods were not restated. As a result of this change, income tax expense was reduced by $11,889,000 , resulting in a seven percentage point decrease in the effective tax rate. Additionally, this Update also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. In order to improve comparability, the Company applied this provision of the amendment retrospectively. In 2015 and 2014, the Company reclassified a tax benefit of $9,964,000 and $7,871,000 , respectively, from cash flows provided by financing activities to cash flows provided by operating activities on the consolidated statement of cash flows. Interest and penalties included in income tax expense was $92,000 and $34,000 in 2016 and 2015, respectively. 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, 2014 $ 5,127 Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in prior periods (56 ) Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period 1,291 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 (1,066 ) Balance of reserve for income taxes as of December 31, 2015 5,296 Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods 11 Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period 1,235 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 (823 ) Balance of reserve for income taxes as of December 31, 2016 $ 5,719 The Company’s reserve for income taxes, including gross interest and penalties, was $6,389,000 as of December 31, 2016, which included $5,361,000 classified as a non-current liability and $1,028,000 recorded as a reduction to non-current deferred tax assets. The Company's reserve for income taxes, including gross interest and penalties, was $5,858,000 as of December 31, 2015, which included $4,830,000 classified as a non-current liability and $1,028,000 recorded as a reduction to non-current deferred tax assets. The amount of gross interest and penalties included in these balances was $670,000 and $562,000 as of December 31, 2016 and December 31, 2015, 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 $950,000 to $1,050,000 over the next twelve months. The Company has defined its major tax jurisdictions as the United States, Ireland, and China, and within the United States, Massachusetts and California. Within the United States, the tax years 2013 through 2016 remain open to examination by the Internal Revenue Service and various state taxing authorities. The tax years 2012 through 2016 remain open to examination by various taxing authorities in other jurisdictions in which the Company operates. 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 has concluded 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 and liabilities consisted of the following (in thousands): December 31, 2016 2015 Non-current deferred tax assets: Stock-based compensation expense $ 15,365 $ 13,895 Federal and state tax credit carryforwards 5,154 5,091 Inventory and revenue related 2,919 2,985 Depreciation 2,882 2,328 Bonuses, commissions, and other compensation 2,483 2,500 Other 3,714 4,175 Gross non-current deferred tax assets 32,517 30,974 Non-current deferred tax liabilities: Nondeductible intangible assets (379 ) (1,198 ) Gross non-current deferred tax liabilities (379 ) (1,198 ) Valuation allowance (4,116 ) (3,259 ) Net non-current deferred tax assets $ 28,022 $ 26,517 Non-current deferred tax liabilities: Other $ — $ (319 ) Net non-current deferred tax liabilities $ — $ (319 ) In 2016, the Company adopted Accounting Standards Update 2015-17, "Income Taxes - Balance Sheet Classification of Deferred Taxes." This Update requires that deferred tax assets and liabilities be classified as non-current in a classified balance sheet. In order to improve comparability, the Company applied the amendments in this Update retrospectively to all periods presented. As of December 31, 2015, the Company reclassified current deferred income tax assets and liabilities of $7,104,000 and $319,000 , respectively, to non-current on the Consolidated Balance Sheets. 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 $379,000 as of December 31, 2016 . In 2016, the Company recorded a valuation allowance of $857,000 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 $6,181,000 of state research and development tax credit carryforwards, net of federal tax, as of December 31, 2016 , which will begin to expire in 2019. 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 pre-tax profits in future periods, we may be required to establish valuation allowances against these deferred tax assets, resulting in a charge to current operations in the period of determination. On July 6, 2015, the Company completed the sale of its Surface Inspection Systems Division (SISD). A pre-tax gain of $125,357,000 and associated income tax expense of $47,175,000 was recorded in 2015. Cash paid for income taxes totaled $20,748,000 in 2016 , $58,280,000 in 2015 , and $17,549,000 in 2014 . The 2015 income tax payments included remittances related to the sale of SISD. |
Weighted Average Shares
Weighted Average Shares | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares | Weighted Average Shares Weighted-average shares were calculated as follows (in thousands): Year Ended December 31, 2016 2015 2014 Basic weighted-average common shares outstanding 85,338 86,296 86,858 Effect of dilutive stock options 1,734 1,695 2,213 Diluted weighted-average common and common-equivalent shares outstanding 87,072 87,991 89,071 Stock options to purchase 2,195,799 , 3,035,078 , and 1,286,403 shares of common stock, on a weighted-average basis, were outstanding in 2016 , 2015 , and 2014 , respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information On July 6, 2015, the Company completed the sale of its Surface Inspection Systems Division (SISD). Prior to this date, the Company had reported SISD as one of its two segments. Given the disposition of the SISD segment, management reviewed its segment reporting and concluded that the Company now operates in one segment, machine vision technology. Operating segments were not aggregated in reaching this conclusion. The Company’s chief operating decision maker is the chief executive officer, who makes decisions to allocate resources and assesses performance at the corporate level. The Company offers a variety of machine vision products that have similar economic characteristics, have the same production processes, and are distributed by the same sales channels to the same types of customers. The following table summarizes information about geographic areas (in thousands): United States Europe Greater China Other Total Year Ended December 31, 2016 Revenue $ 136,611 $ 231,731 $ 63,471 $ 88,940 $ 520,753 Long-lived assets 40,404 12,981 994 1,932 $ 56,311 Year Ended December 31, 2015 Revenue $ 119,781 $ 199,127 $ 54,137 $ 77,512 $ 450,557 Long-lived assets 40,742 12,498 873 1,781 $ 55,894 Year Ended December 31, 2014 Revenue $ 120,523 $ 195,214 $ 38,184 $ 72,528 $ 426,449 Long-lived assets 33,750 10,941 858 1,919 $ 47,468 Revenue is presented geographically based upon the customer’s country of domicile. Revenue from a single customer accounted for 19% , 18% , and 16% of total revenue in 2016, 2015, and 2014, respectively. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On July 6, 2015, the Company completed the sale of its Surface Inspection Systems Division (SISD) to AMETEK, Inc. (AMETEK) for $155,655,000 in cash. Transaction costs totaled $5,198,000 and included $ 1,106,000 of stock option expense from the accelerated vesting of stock options in connection with the sale. The financial results of SISD are reported as a discontinued operation for all periods presented. In 2015, a pre-tax gain of $125,357,000 and associated income tax expense of $47,175,000 was recorded in "Net income (loss) from discontinued operations" on the Consolidated Statements of Operations. In 2016, a binding arbitration was concluded in the second quarter of 2016 with respect to certain product performance claims made by an SISD customer, for which the Company remained responsible under the indemnity provisions of the sale transaction. In that proceeding, the tribunal ordered the Company to pay the customer approximately $326,000 , primarily representing a refund of the product purchase price. The tribunal also ordered the customer to pay the Company approximately $45,000 , primarily representing reimbursement of legal fees. The net settlement of $281,000 was recorded in discontinued operations in the second quarter of 2016, along with $123,000 of legal fees. The tax benefit related to this expense was $149,000 , resulting in a net loss from discontinued operations of $255,000 . The major classes of revenue and expense included in discontinued operations were as follows (in thousands): Year Ended December 31, 2016 2015 2014 Revenue $ — $ 23,248 $ 59,821 Cost of revenue — (11,291 ) (26,953 ) Research, development, and engineering expenses — (2,126 ) (4,089 ) Selling, general, and administrative expenses — (7,800 ) (12,968 ) Foreign currency loss — (177 ) (170 ) Operating income from discontinued business — 1,854 15,641 Gain (loss) on sale of discontinued business (404 ) 125,357 — Income from discontinued operations before income tax expense (404 ) 127,211 15,641 Income tax expense (benefit) on discontinued operations (149 ) 47,801 4,997 Net income (loss) from discontinued operations $ (255 ) $ 79,410 $ 10,644 Significant non-cash items related to the discontinued business were as follows (in thousands): Year Ended December 31, 2016 2015 2014 Stock-based compensation expense $ — $ 1,533 $ 1,099 Depreciation expense — 401 777 Amortization expense — 165 364 Capital expenditures — 482 631 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Acquisitions | Acquisitions The Company completed four acquisitions during the year ended December 31, 2016 and one acquisition during the year ended December 31, 2015. All of these transactions have been accounted for as business combinations. Pro-forma information for these acquisitions has not been presented because they are not material, either individually or in the aggregate. Revenue and earnings since the dates of the acquisitions included in the Company's Consolidated Statements of Operations are also not presented because they are not material. Transaction costs were immaterial and were expensed as incurred during the year of the acquisition. Webscan, Inc. On December 9, 2016, the Company acquired selected assets and assumed selected liabilities of Webscan, Inc., a privately-held U.S.-based ID provider of barcode verifiers. The total purchase price of $3,176,000 included $3,000,000 in cash paid upon closing and $176,000 in cash paid in January 2017 as a working capital adjustment. There are no contingent payments. In addition, the Company entered into special incentive payments tied to employment, none of which are material, that the Company will record as compensation expense. Under this transaction, in addition to customer relationships and completed technologies, the Company acquired a team of individuals including software engineers that are expected to help the Company accelerate the development of future ID products. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The purchase price was allocated as follows (in thousands): Accounts receivable $ 504 Inventories 296 Prepaid expenses and other current assets 8 Customer relationships 680 Completed technologies 840 Goodwill 925 Accounts payable (77 ) Purchase price $ 3,176 The customer relationships and completed technologies are included in "Intangible assets" on the Consolidated Balance Sheet. The customer relationships are being amort ized to selling, general, and administrative e xpenses on a straigh t-line basis over seven years, and the completed technologies are being amortized to cost of revenue on a straigh t-line basis over five years. A portion of t he acquired goodwill is deductible for tax purposes. Chiaro Technologies LLC On November 30, 2016, the Company acquired selected assets and assumed selected liabilities of Chiaro Technologies LLC, a privately-held U.S.-based 3D vision company. The total purchase price of $4,149,000 included $3,538,000 in cash and contingent consideration valued at $611,000 . In addition, the Company entered into special incentive payments tied to employment, none of which are material, that the Company will record as compensation expense. The undiscounted potential outcomes related to the contingent consideration range from $0 to $1,250,000 based upon certain milestone revenue levels over the next two years. As of December 31, 2016, the fair value of the contingent consideration was $611,000 and was recorded in “Other non-current liabilities” on the Consolidated Balance Sheet. The contingent consideration will be remeasured each reporting period with changes in fair value recorded in "Other income (expense)" on the Consolidated Statements of Operations. Under this transaction, in addition to completed technologies, the Company acquired a team of software engineers that are expected to help the Company accelerate the development of future 3D vision products. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The purchase price was allocated as follows (in thousands): Prepaid expenses and other current assets $ 3 Completed technologies 1,350 Goodwill 2,911 Accrued expenses (115 ) Purchase price $ 4,149 The completed technologies are included in "Intangible assets" on the Consolidated Balance Sheet and are being amortized to cost of revenue on a straigh t-line basis over seven years. A portion of t he acquired goodwill is deductible for tax purposes. EnShape GmbH On October 27, 2016, the Company acquired all of the outstanding shares of EnShape GmbH, a privately-held 3D sensor provider based in Germany. The total purchase price of €7,250,000 ( $7,901,000 ) included €4,950,000 ( $5,395,000 ) in cash paid upon closing, €1,050,000 ( $1,144,000 ) of deferred cash payments as a holdback for potential indemnification claims payable in 2018, and €1,250,000 ( $1,362,000 ) of contingent cash payments based upon the completion of certain tasks by June 30, 2017. In addition, the Company entered into special incentive payments tied to employment, none of which are material, that the Company will record as compensation expense. The undiscounted potential outcomes related to the contingent consideration are €0 or €1,250,000 ( $1,362,000 ) based upon the completion of certain tasks by June 30, 2017. As of December 31, 2016, the fair value of the contingent consideration was €1,250,000 ( $1,362,000 ) due to the high probability and the short duration to payment, and was recorded in “Accrued expenses" on the Consolidated Balance Sheets. The contingent consideration will be remeasured each reporting period with changes in fair value recorded in "Other income (expense)" on the Consolidated Statements of Operations. Under this transaction, in addition to customer relationships and completed technologies, the Company acquired a team of software engineers that are expected to help the Company accelerate the development of future 3D vision products. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The purchase price was allocated as follows (in thousands): Cash $ 167 Accounts receivable 4 Inventories 79 Prepaid expenses and other current assets 15 Property, plant, and equipment 44 Customer relationships 447 Completed technologies 1,089 Goodwill 8,613 Accounts payable (6 ) Accrued expenses (209 ) Accrued income taxes (2,342 ) Purchase price $ 7,901 The customer relationships and completed technologies are included in "Intangible assets" on the Consolidated Balance Sheet. The customer relationships are being amort ized to selling, general, and administrative e xpenses, and the completed technologies are being amortized to cost of revenue, both on a straigh t-line basis over seven years. A portion of t he acquired goodwill is deductible for tax purposes. AQSense, S.L. On August 30, 2016, the Company acquired selected assets and assumed selected liabilities of AQSense, S.L., a privately-held 3D vision software provider based in Spain. The total purchase price of €2,232,000 ( $2,519,000 ) was paid in cash and there are no contingent payments. Under this transaction, in addition to customer relationships and completed technologies, the Company acquired a team of software engineers that are expected to help the Company accelerate the development of future 3D vision products. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The purchase price was allocated as follows (in thousands): Accounts receivable $ 168 Customer relationships 598 Completed technologies 384 Goodwill 1,383 Accrued expenses (14 ) Purchase price $ 2,519 The customer relationships and completed technologies are included in "Intangible assets" on the Consolidated Balance Sheet. The customer relationships are being amort ized to selling, general, and administrative e xpenses, and the completed technologies are being amortized to cost of revenue, both on a straigh t-line basis over five years. A portion of t he acquired goodwill is deductible for tax purposes. Manatee Works, Inc. On August 21, 2015, the Company acquired selected assets of Manatee Works, Inc. (Manatee), a privately-held U.S.-based developer of barcode scanning software development kits (SDKs). The Company plans to leverage Manatee's current developer network and business model of attracting new developers to drive leads for its ID products. Under this transaction, the Company also acquired technology for use in mobile devices. The total purchase price of $4,813,000 included $1,023,000 in cash paid upon closing and contingent consideration valued at $3,790,000 on the acquisition date. The undiscounted potential outcomes related to future contingent consideration ranges from $0 to approximately $1,700,000 in 2017 and $0 to approximately $2,200,000 in 2018 based upon reaching certain milestone revenue levels. The contingent consideration is remeasured each reporting period with changes in fair value recorded in "Other income (expense)" on the Consolidated Statements of Operations. In 2015, the Company recorded a $790,000 benefit in other income which reduced the liability amount to $3,000,000 . In 2016, the Company paid $337,000 and recorded a $463,000 benefit in other income reducing the liability to $2,200,000 . As of December 31, 2016, the current portion of the contingent consideration expected to be paid within the next year was $800,000 , and was recorded in “Accrued expenses,” and the non-current portion expected to be paid beyond one year was $1,400,000 , and was recorded in “Other non-current liabilities” on the Consolidated Balance Sheets. The purchase price was allocated as follows (in thousands): Prepaid expenses and other current assets $ 23 Customer relationships 140 Completed technologies 590 Goodwill 4,060 Purchase price $ 4,813 The customer relationships and completed technologies are included in "Intangible assets" on the Consolidated Balance Sheets. The customer relationships are being amortized to selling, general, and administrative expenses, and the completed technologies are being amortized to cost of revenue, both on a straight-line basis over five years. A portion of the acquired goodwill is deductible for tax purposes. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events - (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 15, 2017, the Company's Board of Directors declared a cash dividend of $0.075 per share. The dividend is payable March 17, 2017 to all shareholders of record as of the close of business on March 3, 2017 . |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | COGNEX CORPORATION – SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Other Balance at End of Period (In thousands) Reserve for Uncollectible Accounts Receivable: 2016 $ 736 $ 216 $ — $ (64 ) (a) $ (15 ) (b) $ 873 2015 $ 820 $ — $ — $ (44 ) (a) $ (40 ) (b) $ 736 2014 $ 909 $ — $ — $ (32 ) (a) $ (57 ) (b) $ 820 Reserve for Excess and Obsolete Inventory: 2016 $ 3,803 $ 3,641 $ — $ (4,075 ) (a) $ (52 ) (c) $ 3,317 2015 $ 5,058 $ 1,562 $ — $ (2,443 ) (a) $ (374 ) (c) $ 3,803 2014 $ 4,301 $ 3,204 $ — $ (1,978 ) (a) $ (469 ) (c) $ 5,058 Deferred Tax Valuation Allowance: 2016 $ 3,259 $ 857 $ — $ — $ — $ 4,116 2015 $ 2,483 $ 817 $ — $ — $ (41 ) $ 3,259 2014 $ 1,758 $ 725 $ — $ — $ — $ 2,483 (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 Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 and derivative instruments |
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. 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 five to seven years, and of completed technologies and other intangible assets from five to seven 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 six 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 one 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, consulting, and training 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, and revenue from consulting and training services is recognized when the services have been provided. When customer-specified acceptance criteria exists that are substantive, product revenue is deferred, along with associated incremental direct costs, until these criteria have been met and any remaining performance obligations are inconsequential or perfunctory. For the majority of the Company’s revenue transactions, revenue recognition and invoicing both occur upon delivery. In certain circumstances, however, the agreement with the customer provides for invoicing terms which differ from revenue recognition criteria, resulting in either deferred revenue or unbilled revenue. Invoicing that precedes revenue recognition is common for various customers in the logistics industry where milestone billings are prevalent, resulting in deferred revenue. Conversely, the Company records unbilled revenue in connection with a material customer in the consumer electronics industry. For this arrangement, the Company recognizes revenue for all delivered products when the first production line that incorporates these products is validated, because at that point the remaining performance obligations are inconsequential or perfunctory. Invoicing for all delivered products occurs as the production lines incorporating those products are installed over a period of several weeks. The Company also has a technical support obligation related to this arrangement for which revenue is deferred and recognized over the support period of approximately six months. 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. BESP has been established for each product line 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 pricing practices, gross margin objectives, customer size, and market share goals. 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. Certain customers are offered pricing discounts on current sales based upon purchasing volumes or preferred pricing arrangements, for which revenue is reported net of these discounts. The Company reports revenue for certain of its product accessory sales on a net basis, by reducing the gross sale amount by the related costs, when certain factors in the arrangement with the customer indicate that the Company is acting as an agent, rather than as a principal. 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 may be 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. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and totaled $1,674,000 in 2016 , $2,009,000 in 2015 , and $2,609,000 in 2014 . |
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 non-operating 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, 2016 and December 31, 2015 , consists of foreign currency translation adjustments of $55,262,000 and $49,646,000 , respectively; net unrealized gains on available-for-sale investments of $68,000 and net unrealized losses on available-for-sale investments of $1,413,000 , respectively; net unrealized gains on derivative instruments of $ 37,000 and $ 206,000 , respectively; and losses on currency swaps, net of gains on long-term intercompany loans of $1,271,000 in each year. Amounts reclassified from accumulated other comprehensive income to investment income on the Consolidated Statements of Operations were net realized gains of $191,000 , $344,000 , and $673,000 for 2016 , 2015 , and 2014 , 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 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; however, we may not detect all product quality issues through these programs and processes. Certain components are presently sourced from a single vendor that is selected based on price and performance considerations. In the event of a supply disruption from a single-source vendor, these components may be purchased from an alternative vendor, which may result in manufacturing delays based on the lead time of the new vendor. Certain key electronic and mechanical 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 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, 2016 | |
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, 2016 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Assets: Money market instruments $ 2,334 $ — $ — Corporate bonds — 311,140 — Treasury bills — 159,455 — Asset-backed securities — 96,560 — Euro liquidity fund — 46,499 — Sovereign bonds — 30,883 — Agency bonds — 13,242 — Municipal bonds — 7,750 — Cash flow hedge forward contracts — 43 — Economic hedge forward contracts — 1 — Liabilities: Economic hedge forward contracts — (11 ) — Contingent consideration liabilities — — (4,173 ) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the activity for the Company's liabilities measured at fair value using Level 3 inputs (in thousands): Balance as of December 31, 2014 $ — Contingent consideration resulting from Manatee acquisition 3,790 Fair value adjustment to Manatee contingent consideration (790 ) Balance as of December 31, 2015 3,000 Payment of Manatee contingent consideration (337 ) Fair value adjustment to Manatee contingent consideration (463 ) Contingent consideration resulting from EnShape acquisition 1,362 Contingent consideration resulting from Chiaro acquisition 611 Balance as of December 31, 2016 $ 4,173 |
Cash, Cash Equivalents, and I34
Cash, Cash Equivalents, and Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 Cash $ 77,307 $ 45,951 Money market instruments 2,334 6,024 Cash and cash equivalents 79,641 51,975 Corporate bonds 141,188 54,376 Asset-backed securities 69,614 61,994 Treasury bills 67,175 109,360 Euro liquidity fund 46,499 47,730 Sovereign bonds 7,298 21,440 Municipal bonds 6,517 590 Agency bonds 2,903 978 Short-term investments 341,194 296,468 Corporate bonds 169,952 176,575 Treasury bills 92,280 44,437 Asset-backed securities 26,946 24,582 Sovereign bonds 23,585 13,503 Agency bonds 10,339 8,180 Municipal bonds 1,233 4,869 Limited partnership interest (accounted for using cost method) — 942 Long-term investments 324,335 273,088 $ 745,170 $ 621,531 |
Summary of Available-for-Sale Investments | The following table summarizes the Company’s available-for-sale investments as of December 31, 2016 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Corporate bonds $ 141,216 $ 37 $ (65 ) $ 141,188 Asset-backed securities 69,623 18 (27 ) 69,614 Treasury bills 67,201 21 (47 ) 67,175 Euro liquidity fund 46,173 326 — 46,499 Sovereign bonds 7,313 — (15 ) 7,298 Municipal bonds 6,517 2 (2 ) 6,517 Agency bonds 2,900 3 — 2,903 Long-term: Corporate bonds 169,911 406 (365 ) 169,952 Treasury bills 92,392 40 (152 ) 92,280 Asset-backed securities 26,968 25 (47 ) 26,946 Sovereign bonds 23,704 6 (125 ) 23,585 Agency bonds 10,310 29 — 10,339 Municipal bonds 1,236 — (3 ) 1,233 $ 665,464 $ 913 $ (848 ) $ 665,529 |
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, 2016 (in thousands): Unrealized Loss Position For Less than 12 Months Unrealized Loss Total Fair Value Unrealized Losses Fair Value Unrealized Fair Value Unrealized Corporate bonds $ 117,853 $ (400 ) $ 14,931 $ (30 ) $ 132,784 $ (430 ) Treasury bills 99,358 (199 ) — — 99,358 (199 ) Asset-backed securities 45,429 (70 ) 5,998 (4 ) 51,427 (74 ) Sovereign bonds 27,687 (140 ) — — 27,687 (140 ) Municipal bonds 4,028 (5 ) — — 4,028 (5 ) $ 294,355 $ (814 ) $ 20,929 $ (34 ) $ 315,284 $ (848 ) |
Effective Maturity Dates of Available-for-Sale Investments | The following table summarizes the effective maturity dates of the Company’s available-for-sale investments as of December 31, 2016 (in thousands): <1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total Corporate bonds $ 141,188 $ 84,007 $ 77,975 $ 2,211 $ 5,759 $ 311,140 Treasury bills 67,175 92,280 — — — 159,455 Asset-backed securities 69,614 8,957 7,372 10,530 87 96,560 Euro liquidity fund 46,499 — — — — 46,499 Sovereign bonds 7,298 19,007 4,578 — — 30,883 Agency bonds 2,903 7,614 2,725 — — 13,242 Municipal bonds 6,517 1,233 — — — 7,750 $ 341,194 $ 213,098 $ 92,650 $ 12,741 $ 5,846 $ 665,529 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): December 31, 2016 2015 Raw materials $ 18,224 $ 27,301 Work-in-process 2,760 3,136 Finished goods 6,000 6,897 $ 26,984 $ 37,334 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | Property, plant, and equipment consisted of the following (in thousands): December 31, 2016 2015 Land $ 3,951 $ 3,951 Buildings 23,280 23,439 Building improvements 28,049 25,741 Leasehold improvements 5,237 4,999 Computer hardware and software 39,409 35,350 Manufacturing test equipment 18,726 16,201 Furniture and fixtures 4,843 4,401 123,495 114,082 Less: accumulated depreciation (69,503 ) (60,797 ) $ 53,992 $ 53,285 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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): Amount Balance as of December 31, 2014 $ 77,388 Acquisition of Manatee Works, Inc. 4,060 Balance as of December 31, 2015 81,448 Acquisition of AQSense, S.L. 1,383 Acquisition of EnShape GmbH 8,613 Acquisition of Chiaro Technologies LLC 2,911 Acquisition of Webscan, Inc. 925 Balance as of December 31, 2016 $ 95,280 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortized Intangible Assets | Amortized intangible assets consisted of the following (in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 37,422 $ 638 Customer relationships 6,605 4,836 $ 1,769 Completed technologies 8,003 2,098 5,905 Balance as of December 31, 2016 $ 52,668 $ 44,356 $ 8,312 Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 35,051 $ 3,009 Customer relationships 4,880 4,749 131 Completed technologies 4,340 1,165 3,175 Balance as of December 31, 2015 $ 47,280 $ 40,965 $ 6,315 |
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 Ended December 31, Amount 2017 $ 2,311 2018 1,770 2019 1,395 2020 971 2021 794 Thereafter 1,071 $ 8,312 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Constituents of Accrued Expenses | Accrued expenses consisted of the following (in thousands): December 31, 2016 2015 Company bonuses $ 11,462 $ 4,895 Salaries, commissions, and payroll taxes 7,193 4,859 Vacation 4,860 4,482 Warranty obligations 4,335 4,174 Foreign retirement obligations 3,388 3,249 Other 11,301 11,613 $ 42,539 $ 33,272 |
Changes in Warranty Obligations | The changes in the warranty obligation were as follows (in thousands): Balance as of December 31, 2014 $ 4,086 Provisions for warranties issued during the period 4,383 Fulfillment of warranty obligations (3,873 ) Foreign exchange rate changes (422 ) Balance as of December 31, 2015 4,174 Provisions for warranties issued during the period 3,001 Fulfillment of warranty obligations (2,689 ) Foreign exchange rate changes (151 ) Balance as of December 31, 2016 $ 4,335 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Ended December 31, Amount 2017 $ 5,054 2018 3,303 2019 2,164 2020 1,853 2021 1,735 Thereafter 1,498 $ 15,607 |
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 Ended December 31, Amount 2017 $ 812 2018 530 2019 543 2020 557 2021 187 Thereafter — $ 2,629 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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): December 31, 2016 December 31, 2015 Currency Notional Value USD Equivalent Notional Value USD Equivalent Derivatives Designated as Hedging Instruments: United States Dollar — $ — 16,720 $ 16,720 Japanese Yen 342,500 2,960 942,500 7,605 Hungarian Forint 39,000 130 547,000 1,893 Singapore Dollar 150 97 2,063 1,425 Canadian Dollar — — 41 37 British Pound — — 25 34 Derivatives Not Designated as Hedging Instruments: Japanese Yen 650,000 $ 5,554 700,000 $ 5,800 British Pound 1,350 1,658 1,650 2,441 Korean Won 1,750,000 1,450 1,400,000 1,187 Hungarian Forint 425,000 1,448 250,000 857 Singapore Dollar 1,350 929 1,525 1,074 Taiwanese Dollar 26,000 802 26,425 800 |
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 Sheet Location Fair Value Balance Sheet Location Fair Value December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Derivatives Designated as Hedging Instruments: Cash flow hedge forward contracts Prepaid expenses and other current assets $ 43 $ 441 Accrued expenses $ — $ 201 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 1 $ 9 Accrued expenses $ 11 $ 43 |
Offsetting Assets | The following table summarizes 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, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Gross amounts of recognized assets $ 117 $ 479 Gross amounts of recognized liabilities $ 11 $ 279 Gross amounts offset (73 ) (29 ) Gross amounts offset — (35 ) Net amount of assets presented $ 44 $ 450 Net amount of liabilities presented $ 11 $ 244 |
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 Year Ended December 31, 2016 2015 2014 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ 37 $ 206 $ 32 Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ (438 ) $ (387 ) $ (14 ) Research, development, and engineering expenses 13 14 (42 ) Selling, general, and administrative expenses 27 172 10 Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations $ (398 ) $ (201 ) $ (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) $ (515 ) $ (13 ) $ 247 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income (loss), net of tax, related to derivative instruments (in thousands): Balance as of December 31, 2014 $ 32 Net unrealized loss on cash flow hedges (27 ) Reclassification of net realized loss on cash flow hedges into current operations 201 Balance as of December 31, 2015 206 Net unrealized loss on cash flow hedges (567 ) Reclassification of net realized loss on cash flow hedges into current operations 398 Balance as of December 31, 2016 $ 37 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity: Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2015 6,644 $ 28.27 Granted 1,930 35.58 Exercised (1,977 ) 21.99 Forfeited or expired (164 ) 37.45 Outstanding as of December 31, 2016 6,433 $ 32.16 7.4 $ 202,368 Exercisable as of December 31, 2016 2,037 $ 22.21 5.3 $ 84,359 Options vested or expected to vest as of 5,837 $ 31.52 7.2 $ 187,350 (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, 2016 2015 2014 Risk-free rate 1.7 % 2.1 % 2.6 % Expected dividend yield 0.83 % 1.25 % — % Expected volatility 41 % 40 % 41 % Expected term (in years) 5.6 5.4 5.4 |
Nonvested Restricted Stock Shares Activity [Table Text Block] | The following table summarizes the Company's restricted stock activity: Shares (in thousands) Weighted-Average Grant Fair Value Aggregate Intrinsic Value (in thousands) (1) Nonvested as of December 31, 2015 20 $ 34.05 Granted — — Vested — — Forfeited or expired — — Nonvested as of December 31, 2016 20 $ 34.05 $ 1,272 (1) Fair market value as of December 31, 2016. |
Stock-Based Compensation Expense | The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Year Ended December 31, 2016 2015 2014 Cost of revenue $ 1,052 $ 1,515 $ 1,116 Research, development, and engineering 6,271 5,194 3,709 Selling, general, and administrative 13,235 13,032 9,234 Discontinued operations — 1,533 1,099 $ 20,558 $ 21,274 $ 15,158 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Constituents of Provision for Income Taxes | Income tax expense on continuing operations consisted of the following (in thousands): Year Ended December 31, 2016 2015 2014 Current: Federal $ 14,459 $ 16,430 $ 18,852 State (617 ) 378 608 Foreign 8,149 4,946 4,854 21,991 21,754 24,314 Deferred: Federal (3,031 ) (2,541 ) (2,569 ) State 1,066 (165 ) 7 Foreign (1,058 ) 250 (837 ) (3,023 ) (2,456 ) (3,399 ) $ 18,968 $ 19,298 $ 20,915 |
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 U.S. federal statutory corporate tax rate to the Company’s income tax expense on continuing operations, or effective tax rate, was as follows: Year Ended December 31, 2016 2015 2014 Income tax provision at federal statutory corporate tax rate 35 % 35 % 35 % State income taxes, net of federal benefit 1 — — Foreign tax rate differential (17 ) (19 ) (19 ) Tax credit (1 ) — — Discrete tax benefit related to employee stock option exercises (7 ) — — Other discrete tax events — (2 ) (1 ) Other — 1 1 Income tax provision on continuing operations 11 % 15 % 16 % |
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, 2014 $ 5,127 Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in prior periods (56 ) Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period 1,291 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 (1,066 ) Balance of reserve for income taxes as of December 31, 2015 5,296 Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods 11 Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period 1,235 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 (823 ) Balance of reserve for income taxes as of December 31, 2016 $ 5,719 |
Constituents of Deferred Tax Assets | Deferred tax assets and liabilities consisted of the following (in thousands): December 31, 2016 2015 Non-current deferred tax assets: Stock-based compensation expense $ 15,365 $ 13,895 Federal and state tax credit carryforwards 5,154 5,091 Inventory and revenue related 2,919 2,985 Depreciation 2,882 2,328 Bonuses, commissions, and other compensation 2,483 2,500 Other 3,714 4,175 Gross non-current deferred tax assets 32,517 30,974 Non-current deferred tax liabilities: Nondeductible intangible assets (379 ) (1,198 ) Gross non-current deferred tax liabilities (379 ) (1,198 ) Valuation allowance (4,116 ) (3,259 ) Net non-current deferred tax assets $ 28,022 $ 26,517 Non-current deferred tax liabilities: Other $ — $ (319 ) Net non-current deferred tax liabilities $ — $ (319 ) |
Weighted Average Shares (Tables
Weighted Average Shares (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Weighted Average Shares | Weighted-average shares were calculated as follows (in thousands): Year Ended December 31, 2016 2015 2014 Basic weighted-average common shares outstanding 85,338 86,296 86,858 Effect of dilutive stock options 1,734 1,695 2,213 Diluted weighted-average common and common-equivalent shares outstanding 87,072 87,991 89,071 |
Segment and Geographic Inform45
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
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 Greater China Other Total Year Ended December 31, 2016 Revenue $ 136,611 $ 231,731 $ 63,471 $ 88,940 $ 520,753 Long-lived assets 40,404 12,981 994 1,932 $ 56,311 Year Ended December 31, 2015 Revenue $ 119,781 $ 199,127 $ 54,137 $ 77,512 $ 450,557 Long-lived assets 40,742 12,498 873 1,781 $ 55,894 Year Ended December 31, 2014 Revenue $ 120,523 $ 195,214 $ 38,184 $ 72,528 $ 426,449 Long-lived assets 33,750 10,941 858 1,919 $ 47,468 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The financial results of SISD are reported as a discontinued operation for all periods presented. In 2015, a pre-tax gain of $125,357,000 and associated income tax expense of $47,175,000 was recorded in "Net income (loss) from discontinued operations" on the Consolidated Statements of Operations. In 2016, a binding arbitration was concluded in the second quarter of 2016 with respect to certain product performance claims made by an SISD customer, for which the Company remained responsible under the indemnity provisions of the sale transaction. In that proceeding, the tribunal ordered the Company to pay the customer approximately $326,000 , primarily representing a refund of the product purchase price. The tribunal also ordered the customer to pay the Company approximately $45,000 , primarily representing reimbursement of legal fees. The net settlement of $281,000 was recorded in discontinued operations in the second quarter of 2016, along with $123,000 of legal fees. The tax benefit related to this expense was $149,000 , resulting in a net loss from discontinued operations of $255,000 . The major classes of revenue and expense included in discontinued operations were as follows (in thousands): Year Ended December 31, 2016 2015 2014 Revenue $ — $ 23,248 $ 59,821 Cost of revenue — (11,291 ) (26,953 ) Research, development, and engineering expenses — (2,126 ) (4,089 ) Selling, general, and administrative expenses — (7,800 ) (12,968 ) Foreign currency loss — (177 ) (170 ) Operating income from discontinued business — 1,854 15,641 Gain (loss) on sale of discontinued business (404 ) 125,357 — Income from discontinued operations before income tax expense (404 ) 127,211 15,641 Income tax expense (benefit) on discontinued operations (149 ) 47,801 4,997 Net income (loss) from discontinued operations $ (255 ) $ 79,410 $ 10,644 Significant non-cash items related to the discontinued business were as follows (in thousands): Year Ended December 31, 2016 2015 2014 Stock-based compensation expense $ — $ 1,533 $ 1,099 Depreciation expense — 401 777 Amortization expense — 165 364 Capital expenditures — 482 631 |
Acquisitions Acquisitions - (Ta
Acquisitions Acquisitions - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination | The purchase price was allocated as follows (in thousands): Prepaid expenses and other current assets $ 23 Customer relationships 140 Completed technologies 590 Goodwill 4,060 Purchase price $ 4,813 The purchase price was allocated as follows (in thousands): Accounts receivable $ 504 Inventories 296 Prepaid expenses and other current assets 8 Customer relationships 680 Completed technologies 840 Goodwill 925 Accounts payable (77 ) Purchase price $ 3,176 The purchase price was allocated as follows (in thousands): Cash $ 167 Accounts receivable 4 Inventories 79 Prepaid expenses and other current assets 15 Property, plant, and equipment 44 Customer relationships 447 Completed technologies 1,089 Goodwill 8,613 Accounts payable (6 ) Accrued expenses (209 ) Accrued income taxes (2,342 ) Purchase price $ 7,901 The purchase price was allocated as follows (in thousands): Accounts receivable $ 168 Customer relationships 598 Completed technologies 384 Goodwill 1,383 Accrued expenses (14 ) Purchase price $ 2,519 The purchase price was allocated as follows (in thousands): Prepaid expenses and other current assets $ 3 Completed technologies 1,350 Goodwill 2,911 Accrued expenses (115 ) Purchase price $ 4,149 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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 Accoun49
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Goodwill (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Qualitative Assessment, years | 6 years |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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 | 5 years |
Customer Contracts And Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Completed Technologies And Other Intangible Assets [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Completed Technologies And Other Intangible Assets [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Warranty (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum [Member] | |
Product Liability Contingency [Line Items] | |
Product Warranty Period | 1 year |
Maximum [Member] | |
Product Liability Contingency [Line Items] | |
Product Warranty Period | 3 years |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 1,674,000 | $ 2,009,000 | $ 2,609,000 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss consists of foreign currency translation adjustments, net of tax | $ 55,262,000 | $ 49,646,000 | |
Net unrealized losses on available-for-sale investments, net of tax | 68,000 | 1,413,000 | |
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 | 191,000 | 344,000 | $ 673,000 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net realized gains reclassified into current operations | 191,000 | 344,000 | 673,000 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net unrealized gains on derivative instruments | $ (37,000) | $ (206,000) | $ (32,000) |
Fair Value Measurements - Asset
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liabilities: | |||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 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 | 2,334,000 | ||
Corporate bonds | 0 | ||
Treasury bills | 0 | ||
Asset-backed securities | 0 | ||
Agency bonds | 0 | ||
Municipal bonds | 0 | ||
Cash flow hedge forward contracts | 0 | ||
Economic hedge forward contracts | 0 | ||
Liabilities: | |||
Economic hedge forward contracts | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets: | |||
Money market instruments | 0 | ||
Corporate bonds | 311,140,000 | ||
Treasury bills | 159,455,000 | ||
Asset-backed securities | 96,560,000 | ||
Euro liquidity funds | 46,499,000 | ||
Sovereign bonds | 30,883,000 | ||
Agency bonds | 13,242,000 | ||
Municipal bonds | 7,750,000 | ||
Cash flow hedge forward contracts | 43,000 | ||
Economic hedge forward contracts | 1,000 | ||
Liabilities: | |||
Economic hedge forward contracts | (11,000) | ||
Fair Value, Inputs, Level 3 [Member] | |||
Liabilities: | |||
Contingent consideration liabilities | $ (4,173,000) |
Fair Value Measurements - Liabi
Fair Value Measurements - Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 3,000 | $ 0 |
Fair value adjustment | (463) | |
Ending balance | 4,173 | 3,000 |
Manatee Works, Inc. [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration resulting from acquisitions | 3,790 | |
Fair value adjustment | $ (790) | |
Payment of contingent consideration | (337) | |
EnShape GmbH [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration resulting from acquisitions | 1,362 | |
Chiaro Technologies LLC [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Contingent consideration resulting from acquisitions | $ 611 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Dec. 31, 2016USD ($) |
Fair Value, Measurements, Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of limited partnership | $ 0 |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments - Components of Cash, Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | $ 77,307 | $ 45,951 | ||
Money market instruments | 2,334 | 6,024 | ||
Cash and cash equivalents | 79,641 | 51,975 | $ 55,694 | $ 40,644 |
Short-term investments | 341,194 | 296,468 | ||
Limited partnership interest (accounted for using cost method) | 0 | 942 | ||
Long-term investments | 324,335 | 273,088 | ||
Total | 745,170 | 621,531 | ||
Treasury Bills [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 67,175 | 109,360 | ||
Long-term investments | 92,280 | 44,437 | ||
Asset-Backed Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 69,614 | 61,994 | ||
Long-term investments | 26,946 | 24,582 | ||
Corporate Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 141,188 | 54,376 | ||
Long-term investments | 169,952 | 176,575 | ||
Euro liquidity fund [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 46,499 | 47,730 | ||
Sovereign Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 7,298 | 21,440 | ||
Long-term investments | 23,585 | 13,503 | ||
Agency Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 2,903 | 978 | ||
Long-term investments | 10,339 | 8,180 | ||
Municipal Bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 6,517 | 590 | ||
Long-term investments | $ 1,233 | $ 4,869 |
Cash, Cash Equivalents and In58
Cash, Cash Equivalents and Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Cash balance included foreign bank balance | $ 68,076,000 | $ 39,279,000 | |
Gross realized gains on sale of debt securities | 292,000 | 549,000 | $ 843,000 |
Gross realized losses on sale of debt securities | 101,000 | 205,000 | $ 170,000 |
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 | ||
Contributions made during the year | 0 | ||
Proceeds from Limited Partnership Investments | 2,257,000 | ||
Carrying value of investment | 0 | $ 942,000 | |
Return of capital | 942,000 | ||
Cost method investment, investment income | $ 1,315,000 |
Cash, Cash Equivalents and In59
Cash, Cash Equivalents and Investments - Amortized Cost to Fair Value (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $ 665,464 |
Gross Unrealized Gains | 913 |
Gross Unrealized Losses | (848) |
Fair Value, Total | 665,529 |
Euro liquidity fund [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 46,499 |
Euro liquidity fund [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 46,173 |
Gross Unrealized Gains | 326 |
Gross Unrealized Losses | 0 |
Fair Value, Total | 46,499 |
Corporate Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 311,140 |
Corporate Bonds [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 141,216 |
Gross Unrealized Gains | 37 |
Gross Unrealized Losses | (65) |
Fair Value, Total | 141,188 |
Corporate Bonds [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 169,911 |
Gross Unrealized Gains | 406 |
Gross Unrealized Losses | (365) |
Fair Value, Total | 169,952 |
Agency Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 13,242 |
Agency Bonds [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 2,900 |
Gross Unrealized Gains | 3 |
Gross Unrealized Losses | 0 |
Fair Value, Total | 2,903 |
Agency Bonds [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 10,310 |
Gross Unrealized Gains | 29 |
Gross Unrealized Losses | 0 |
Fair Value, Total | 10,339 |
Asset-Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 96,560 |
Asset-Backed Securities [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 69,623 |
Gross Unrealized Gains | 18 |
Gross Unrealized Losses | (27) |
Fair Value, Total | 69,614 |
Asset-Backed Securities [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 26,968 |
Gross Unrealized Gains | 25 |
Gross Unrealized Losses | (47) |
Fair Value, Total | 26,946 |
Municipal Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 7,750 |
Municipal Bonds [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 6,517 |
Gross Unrealized Gains | 2 |
Gross Unrealized Losses | (2) |
Fair Value, Total | 6,517 |
Municipal Bonds [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 1,236 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (3) |
Fair Value, Total | 1,233 |
Treasury Bills [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 159,455 |
Treasury Bills [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 67,201 |
Gross Unrealized Gains | 21 |
Gross Unrealized Losses | (47) |
Fair Value, Total | 67,175 |
Treasury Bills [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 92,392 |
Gross Unrealized Gains | 40 |
Gross Unrealized Losses | (152) |
Fair Value, Total | 92,280 |
Sovereign Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Total | 30,883 |
Sovereign Bonds [Member] | Short-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 7,313 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (15) |
Fair Value, Total | 7,298 |
Sovereign Bonds [Member] | Long-term investments [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 23,704 |
Gross Unrealized Gains | 6 |
Gross Unrealized Losses | (125) |
Fair Value, Total | $ 23,585 |
Cash, Cash Equivalents and In60
Cash, Cash Equivalents and Investments - Gross Unrealized Losses and Fair Value for Available-for-Sale Investments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | $ 294,355 |
Unrealized Losses, Less than 12 months | (814) |
Fair Value, Greater than 12 Months | 20,929 |
Unrealized Losses, Greater than 12 Months | (34) |
Fair Value | 315,284 |
Unrealized Losses | (848) |
Corporate Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 117,853 |
Unrealized Losses, Less than 12 months | (400) |
Fair Value, Greater than 12 Months | 14,931 |
Unrealized Losses, Greater than 12 Months | (30) |
Fair Value | 132,784 |
Unrealized Losses | (430) |
Treasury Bills [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 99,358 |
Unrealized Losses, Less than 12 months | (199) |
Fair Value | 99,358 |
Unrealized Losses | (199) |
Asset-Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 45,429 |
Unrealized Losses, Less than 12 months | (70) |
Fair Value, Greater than 12 Months | 5,998 |
Unrealized Losses, Greater than 12 Months | (4) |
Fair Value | 51,427 |
Unrealized Losses | (74) |
Sovereign Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 27,687 |
Unrealized Losses, Less than 12 months | (140) |
Fair Value, Greater than 12 Months | 0 |
Unrealized Losses, Greater than 12 Months | 0 |
Fair Value | 27,687 |
Unrealized Losses | (140) |
Municipal Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value, Less than 12 months | 4,028 |
Unrealized Losses, Less than 12 months | (5) |
Unrealized Losses, Greater than 12 Months | 0 |
Fair Value | 4,028 |
Unrealized Losses | $ (5) |
Cash, Cash Equivalents and In61
Cash, Cash Equivalents and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | $ 341,194 |
1-2 Years | 213,098 |
2-3 Years | 92,650 |
3-4 Years | 12,741 |
4-5 Years | 5,846 |
Fair Value, Total | 665,529 |
Corporate Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 141,188 |
1-2 Years | 84,007 |
2-3 Years | 77,975 |
3-4 Years | 2,211 |
4-5 Years | 5,759 |
Fair Value, Total | 311,140 |
Treasury Bills [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 67,175 |
1-2 Years | 92,280 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
Fair Value, Total | 159,455 |
Asset-Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 69,614 |
1-2 Years | 8,957 |
2-3 Years | 7,372 |
3-4 Years | 10,530 |
4-5 Years | 87 |
Fair Value, Total | 96,560 |
Euro liquidity fund [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 46,499 |
1-2 Years | 0 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
Fair Value, Total | 46,499 |
Agency Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 2,903 |
1-2 Years | 7,614 |
2-3 Years | 2,725 |
3-4 Years | 0 |
4-5 Years | 0 |
Fair Value, Total | 13,242 |
Sovereign Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 7,298 |
1-2 Years | 19,007 |
2-3 Years | 4,578 |
3-4 Years | 0 |
4-5 Years | 0 |
Fair Value, Total | 30,883 |
Municipal Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less than 1 Year | 6,517 |
1-2 Years | 1,233 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
Fair Value, Total | $ 7,750 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 18,224 | $ 27,301 |
Work-in-process | 2,760 | 3,136 |
Finished goods | 6,000 | 6,897 |
Inventories | $ 26,984 | $ 37,334 |
Property, Plant, and Equipmen63
Property, Plant, and Equipment - Property, Plant, and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | $ 123,495 | $ 114,082 |
Less: accumulated depreciation | (69,503) | (60,797) |
Property, Plant and Equipment, Net, Total | 53,992 | 53,285 |
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 | 23,280 | 23,439 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 28,049 | 25,741 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 5,237 | 4,999 |
Hardware And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 39,409 | 35,350 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | 18,726 | 16,201 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and equipment, gross | $ 4,843 | $ 4,401 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Disposals in period | $ 3,191,000 | $ 2,285,000 |
Buildings include rental property | 5,750,000 | 5,750,000 |
Accumulated depreciation | $ 2,922,000 | $ 2,775,000 |
Goodwill - Changes in the Carry
Goodwill - Changes in the Carrying Value of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 81,448 | $ 77,388 |
Goodwill, Ending Balance | 95,280 | 81,448 |
Manatee Works, Inc. [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during the period | $ 4,060 | |
AQSense, S.L. [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during the period | 1,383 | |
EnShape GmbH [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during the period | 8,613 | |
Chiaro Technologies LLC [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during the period | 2,911 | |
Webscan, Inc. [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during the period | $ 925 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 06, 2015 | Dec. 31, 2014 | Oct. 04, 2010 |
Goodwill [Line Items] | |||||
Goodwill | $ 95,280,000 | $ 81,448,000 | $ 77,388,000 | ||
Sisd [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 4,301,000 | ||||
MVSD [Member] | |||||
Goodwill [Line Items] | |||||
Fair value in excess to carrying value | 208.00% |
Intangible Assets - Amortized I
Intangible Assets - Amortized Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 52,668 | $ 47,280 |
Accumulated Amortization | 44,356 | 40,965 |
Net Carrying Value | 8,312 | 6,315 |
Distribution networks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 38,060 | 38,060 |
Accumulated Amortization | 37,422 | 35,051 |
Net Carrying Value | 638 | 3,009 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 6,605 | 4,880 |
Accumulated Amortization | 4,836 | 4,749 |
Net Carrying Value | 1,769 | 131 |
Completed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,003 | 4,340 |
Accumulated Amortization | 2,098 | 1,165 |
Net Carrying Value | $ 5,905 | $ 3,175 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense Succeeding Fiscal Years (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 2,311 | |
2,017 | 1,770 | |
2,018 | 1,395 | |
2,019 | 971 | |
2,020 | 794 | |
Thereafter | 1,071 | |
Net Carrying Value | $ 8,312 | $ 6,315 |
Accrued Expenses - Constituents
Accrued Expenses - Constituents of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Constituents of accrued expenses | ||
Company bonuses | $ 11,462 | $ 4,895 |
Salaries, commissions, and payroll taxes | 7,193 | 4,859 |
Vacation | 4,860 | 4,482 |
Warranty obligations | 4,335 | 4,174 |
Foreign retirement obligations | 3,388 | 3,249 |
Other | 11,301 | 11,613 |
Accrued expenses | $ 42,539 | $ 33,272 |
Accrued Expenses - Changes in W
Accrued Expenses - Changes in Warranty Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning Balance | $ 4,174 | $ 4,086 |
Provisions for warranties issued during the period | 3,001 | 4,383 |
Fulfillment of warranty obligations | (2,689) | (3,873) |
Foreign exchange rate changes | (151) | (422) |
Ending Balance | $ 4,335 | $ 4,174 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Oct. 02, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Purchase order outstanding | $ 3,352,000 | |||
Total annual rental expense | 6,090,000 | $ 5,778,000 | $ 5,560,000 | |
Total annual rental income | 1,911,000 | $ 1,921,000 | $ 1,794,000 | |
Legal Settlement Total | 3,500,000 | |||
Legal Settlement Asset | $ 1,667,000 | |||
Life of patent, years | 5 years | |||
Legal Settlement Expense | $ 1,833,000 |
Commitments and Contingencies72
Commitments and Contingencies - Future Minimum Rental Payments Under Lease Agreements (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Future minimum rental payments under lease agreements | |
2,016 | $ 5,054 |
2,017 | 3,303 |
2,018 | 2,164 |
2,019 | 1,853 |
2,020 | 1,735 |
Thereafter | 1,498 |
Total | $ 15,607 |
Commitments and Contingencies73
Commitments and Contingencies - Future Minimum Rental Receipts Under Non - Cancelable Lease Agreements (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Future minimum rental receipts under non-cancelable lease agreements | |
2,016 | $ 812 |
2,017 | 530 |
2,018 | 543 |
2,019 | 557 |
2,020 | 187 |
Thereafter | 0 |
Total | $ 2,629 |
Indemnification Provisions - Na
Indemnification Provisions - Narrative (Details) - Discontinued Operations, Disposed of by Sale [Member] - Sisd [Member] - AMETEK Matter [Member] - Settled Litigation [Member] - Guarantee Obligations [Member] | 3 Months Ended |
Oct. 02, 2016USD ($) | |
Loss Contingencies [Line Items] | |
Loss contingency, damages awarded, refund of product purchase price, value | $ 326,000 |
Loss contingency, damages awarded, reimbursement of legal fees, value | 45,000 |
Litigation settlement, amount | $ (281,000) |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments - Additional Details (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Derivative [Line Items] | |
Net gains expected to be reclassified from accumulated other comprehensive income (loss) | $ 37,000 |
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 - Outsta
Derivative Instruments - Outstanding Forward Contracts (Details) ₩ in Thousands, ¥ in Thousands, £ in Thousands, TWD in Thousands, SGD in Thousands, HUF in Thousands, CAD in Thousands, $ in Thousands | Dec. 31, 2016USD ($) | Dec. 31, 2016HUF | Dec. 31, 2016GBP (£) | Dec. 31, 2016CAD | Dec. 31, 2016SGD | Dec. 31, 2016JPY (¥) | Dec. 31, 2016KRW (₩) | Dec. 31, 2016TWD | Dec. 31, 2015USD ($) | Dec. 31, 2015HUF | Dec. 31, 2015GBP (£) | Dec. 31, 2015CAD | Dec. 31, 2015SGD | Dec. 31, 2015JPY (¥) | Dec. 31, 2015KRW (₩) | Dec. 31, 2015TWD |
Designated as Hedging Instrument [Member] | United States of America, Dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | $ 0 | $ 16,720 | ||||||||||||||
Designated as Hedging Instrument [Member] | Japan, Yen | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 2,960 | ¥ 342,500 | 7,605 | ¥ 942,500 | ||||||||||||
Designated as Hedging Instrument [Member] | Hungary, Forint | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 130 | HUF 39,000 | 1,893 | HUF 547,000 | ||||||||||||
Designated as Hedging Instrument [Member] | Singapore, Dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 97 | SGD 150 | 1,425 | SGD 2,063 | ||||||||||||
Designated as Hedging Instrument [Member] | Canada, Dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 0 | CAD 0 | 37 | CAD 41 | ||||||||||||
Designated as Hedging Instrument [Member] | United Kingdom, Pounds | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 0 | £ 0 | 34 | £ 25 | ||||||||||||
Not Designated as Hedging Instrument [Member] | Japan, Yen | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 5,554 | ¥ 650,000 | 5,800 | ¥ 700,000 | ||||||||||||
Not Designated as Hedging Instrument [Member] | Korea (South), Won | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 1,450 | ₩ 1,750,000 | 1,187 | ₩ 1,400,000 | ||||||||||||
Not Designated as Hedging Instrument [Member] | Hungary, Forint | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 1,448 | HUF 425,000 | 857 | HUF 250,000 | ||||||||||||
Not Designated as Hedging Instrument [Member] | Singapore, Dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 929 | SGD 1,350 | 1,074 | SGD 1,525 | ||||||||||||
Not Designated as Hedging Instrument [Member] | United Kingdom, Pounds | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | 1,658 | £ 1,350 | 2,441 | £ 1,650 | ||||||||||||
Not Designated as Hedging Instrument [Member] | Taiwan, New Dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative Asset, Notional Amount | $ 802 | TWD 26,000 | $ 800 | TWD 26,425 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet Location (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Net amount of assets presented | $ 44 | $ 450 |
Net amount of liabilities presented | 11 | 244 |
Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net amount of assets presented | 43 | 441 |
Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net amount of liabilities presented | 0 | 201 |
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net amount of assets presented | 1 | 9 |
Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net amount of liabilities presented | $ 11 | $ 43 |
Derivative Instruments Deriva78
Derivative Instruments Derivative Instruments - Assets and liabilities presented on a net basis due to the right of offset (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | $ 117 | $ 479 |
Derivative Asset gross amount offset | (73) | (29) |
Net amount of assets presented | 44 | 450 |
Derivative Liability, Fair Value, Gross Liability | 11 | 279 |
Derivative liability gross amount offset | 0 | (35) |
Net amount of liabilities presented | $ 11 | $ 244 |
Derivative Instruments - Gain (
Derivative Instruments - Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into net income | $ (398,000) | $ (201,000) | $ (46,000) |
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) | 37,000 | 206,000 | 32,000 |
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into net income | (398,000) | (201,000) | (46) |
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) | (438,000) | (387,000) | (14) |
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) | 13,000 | 14,000 | (42) |
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) | 27,000 | 172,000 | 10 |
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 | $ (515,000) | $ (13,000) | $ 247,000 |
Derivative Instruments - Change
Derivative Instruments - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ (52,124) | |
Ending balance | (56,428) | $ (52,124) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 206 | 32 |
Net unrealized loss on cash flow hedges | (567) | (27) |
Reclassification of net realized loss on cash flow hedges into current operations | 398 | 201 |
Ending balance | $ 37 | $ 206 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016USD ($)Vote$ / sharesshares | Oct. 02, 2016$ / shares | Jul. 03, 2016$ / shares | Apr. 03, 2016$ / shares | Dec. 31, 2015$ / sharesshares | Oct. 04, 2015$ / shares | Jul. 05, 2015$ / shares | Dec. 31, 2016USD ($)Vote$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Apr. 28, 2016shares | Apr. 27, 2016shares | Nov. 01, 2015USD ($) | Aug. 03, 2015USD ($) | Dec. 05, 2008Right | |
Class of Stock [Line Items] | |||||||||||||||
Authorized shares | shares | 400,000 | 400,000 | |||||||||||||
Preferred stock Par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||||||
Common stock, shares authorized | shares | 200,000,000 | 140,000,000 | 200,000,000 | 140,000,000 | 200,000,000 | 140,000,000 | |||||||||
Vote entitled for each common share outstanding | Vote | 1 | 1 | |||||||||||||
Number of preferred stock purchase right for dividend distribution | Right | 1 | ||||||||||||||
Outstanding common share to be acquiring person | 15.00% | 15.00% | |||||||||||||
Stock Repurchased During Period, Value | $ 47,149,000 | $ 126,351,000 | $ 59,673,000 | ||||||||||||
Cash dividend declared per common share | $ / shares | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | ||||||||
Payments of Dividends | $ 25,213,000 | ||||||||||||||
Repurchase Program 2014 [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
total shares repurchased | shares | 2,666,000 | ||||||||||||||
Stock Repurchased During Period, Shares | shares | 355,000 | ||||||||||||||
Stock Repurchased During Period, Value | $ 16,064,000 | ||||||||||||||
Repurchase Program 2015 [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Repurchase of authorized common stock | $ 68,915,000 | $ 68,915,000 | $ 100,000,000 | ||||||||||||
Stock Repurchased During Period, Shares | shares | 539,000 | ||||||||||||||
Stock Repurchased During Period, Value | $ 31,085,000 | ||||||||||||||
Repurchase Program November 2015 [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Repurchase of authorized common stock | $ 100,000,000 | ||||||||||||||
Common Stock [Member] | Repurchase Program 2014 [Member] | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Repurchased shares, total cost | $ 100,000,000 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense - Additional Information (Detail) | Jul. 06, 2015USD ($)shares | Dec. 31, 2016USD ($)Employees$ / sharesshares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of groups within the employee population | Employees | 2 | |||
Percentage of stock options granted to all other employees expected to vest | 72.00% | |||
Percentage of stock options granted to senior management expected to vest | 77.00% | |||
Estimated forfeiture rate for unvested options for senior management | 9.00% | |||
Estimated forfeiture rate for unvested options for all non-senior management | 11.00% | |||
Increase In Compensation Expense Due To Revised Estimated Forfeiture Rates | $ 334,000 | $ 461,000 | $ 288,000 | |
Weighted-average grant-date fair values of stock options granted | $ / shares | $ 12.65 | $ 14.35 | $ 15.97 | |
Total intrinsic values of stock options exercised | $ 55,580,000 | $ 43,987,000 | $ 31,884,000 | |
Total fair values of stock options vested | 18,114,000 | 16,227,000 | 11,627,000 | |
Total unrecognized compensation expense related to non-vested stock options | $ 19,742,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Period for Recognition | 1 year 6 months 7 days | |||
Stock-based compensation expense | $ 20,558,000 | 21,274,000 | 15,158,000 | |
Income tax benefit recognized related to stock-based compensation expense | 6,747,000 | 7,127,000 | 4,977,000 | |
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 | shares | 8,078,751 | |||
Vesting period for stock option plans | 4 years | |||
Expiration period of stock option plan | 10 years | |||
Discontinued Operations, Disposed of by Sale [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,106,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 190,000 |
Stock-Based Compensation Expe83
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding, Shares | shares | 6,644 |
Granted | shares | 1,930 |
Exercised | shares | (1,977) |
Forfeited or expired | shares | (164) |
Outstanding, Shares | shares | 6,433 |
Exercisable, Shares | shares | 2,037 |
Options vested or expected to vest | shares | 5,837 |
Outstanding, Weighted-Average Exercise Price | $ / shares | $ 28.27 |
Granted, Weighted-Average Exercise Price | $ / shares | 35.58 |
Exercised, Weighted-Average Exercise Price | $ / shares | 21.99 |
Forfeited or expired, Weighted-Average Exercise Price | $ / shares | 37.45 |
Outstanding, Weighted-Average Exercise Price | $ / shares | 32.16 |
Exercisable, Weighted-Average Exercise Price | $ / shares | 22.21 |
Options vested or expected to vest, Weighted-Average Exercise Price | $ / shares | $ 31.52 |
Outstanding, Weighted-Average Remaining Contractual Term (in years) | 7 years 4 months 24 days |
Exercisable, Weighted-Average Remaining Contractual Term (in years) | 5 years 3 months 18 days |
Options vested or expected to vest, Weighted-Average Remaining Contractual Term (in years) | 7 years 2 months 12 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 202,368 |
Exercisable, Aggregate Intrinsic Value | $ | 84,359 |
Options vested or expected to vest, Aggregate Intrinsic Value | $ | $ 187,350 |
Stock-Based Compensation Expe84
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free rate | 1.70% | 2.10% | 2.60% |
Expected dividend yield | 0.83% | 1.25% | 0.00% |
Expected volatility | 41.00% | 40.00% | 41.00% |
Expected term (in years) | 5 years 7 months 6 days | 5 years 5 months 6 days | 5 years 4 months 24 days |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation Expense- Summary of Restricted Stock Option Activity (Detail) (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options, Shares Nonvested | 20 | 20 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | |
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 | $ 34.05 |
Nonvested as of December 31, 2014, Aggregate Intrinsic Value | $ 1,272 |
Stock-Based Compensation Expe86
Stock-Based Compensation Expense - Stock-Based Compensation Expense (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 7 days | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 20,558,000 | $ 21,274,000 | $ 15,158,000 |
Stock-based compensation expense | 0 | 1,533,000 | 1,099,000 |
Income tax benefit recognized related to stock-based compensation expense | 6,747,000 | 7,127,000 | 4,977,000 |
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 | 1,052,000 | 1,515,000 | 1,116,000 |
Research, development, and engineering expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 6,271,000 | 5,194,000 | 3,709,000 |
Selling, general, and administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 13,235,000 | $ 13,032,000 | $ 9,234,000 |
Employee Savings Plan - Additio
Employee Savings Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||
Minimum age to be eligible to defined contribution plan | 21 years | ||
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 | 6.00% | ||
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 | $ 1,712,000 | $ 1,845,000 | $ 1,555,000 |
Taxes - Additional Information
Taxes - Additional Information (Details) - USD ($) | Jul. 06, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Tax Credit Carryforward [Line Items] | ||||
Domestic income from continuing operations before taxes | $ 23,939,000 | $ 11,637,000 | $ 25,585,000 | |
Foreign income from continuing operations before taxes | $ 144,856,000 | $ 115,325,000 | $ 106,171,000 | |
Income tax rate | 35.00% | 35.00% | 35.00% | |
Foreign tax rate differential | 17.00% | 19.00% | 19.00% | |
Undistributed earnings of foreign subsidiaries | $ 498,238,000 | |||
Deferred tax liability not recognized, on undistributed earnings of foreign subsidiaries | 151,966,000 | |||
Reduction of income tax expense for adoption of ASU 2016-09 | $ 11,889,000 | |||
Discrete tax benefit related to employee stock option exercises | 7.00% | 0.00% | 0.00% | |
Net cash provided by operating activities | $ 182,081,000 | $ 128,327,000 | $ 163,841,000 | |
Net cash used in financing activities | 29,231,000 | 116,831,000 | 42,743,000 | |
Income tax penalties and interest expense | 92,000 | 34,000 | ||
Deferred tax liabilities, gross | 6,389,000 | 5,858,000 | ||
Reserve for income taxes | 5,361,000 | 4,830,000 | ||
Unrecognized tax benefit shown as a reduction to noncurrent deferred tax assets | 1,028,000 | 1,028,000 | ||
Interest and penalties, gross | 670,000 | 562,000 | ||
Minimum decrease in income tax expense due to release in reserves | 950,000 | |||
Maximum decrease in income tax expense due to release in reserves | 1,050,000 | |||
Net non-current deferred tax liabilities | 0 | (319,000) | ||
Non deductible federal and state liabilities | 379,000 | 1,198,000 | ||
Income tax paid net | $ 20,748,000 | $ 58,280,000 | 17,549,000 | |
Open Tax Year State Authorities | 2013 through 2016 | |||
Open tax year United States Internal Revenue Service | 2013 through 2016 | |||
Open tax year, various taxing authorities | 2012 through 2016 | |||
Tax Years Covered Through Advanced Pricing Agreement | 2006 through 2011 | |||
Tax years for APA agreement | Between 2014 and 2018 | |||
State research and experimentation tax carryforwards | 2014 through 2016 | |||
Research Tax Credit Carryforward [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets, valuation allowance | $ 857,000 | |||
State Research And Experimentation [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets, tax credit carryforwards, research | 6,181,000 | |||
Sisd [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Gain (loss) on sale of discontinued business | $ 125,357,000 | (404,000) | $ 125,357,000 | 0 |
Income tax expense (benefit) on discontinued operations | $ 47,175,000 | $ (149,000) | 47,801,000 | 4,997,000 |
Revenue Commissioners, Ireland [Member] | Foreign Tax Authority [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Income tax rate | 12.50% | |||
State Administration of Taxation, China [Member] | Foreign Tax Authority [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Income tax rate | 25.00% | |||
Non-US [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Cash, cash equivalents, and investments | $ 437,691,000 | 352,621,000 | ||
Accounting Standards Update 2016-09, Statutory Tax Withholding Component [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Net cash provided by operating activities | 9,964,000 | 7,871,000 | ||
Net cash used in financing activities | 9,964,000 | $ 7,871,000 | ||
Accounting Standards Update 2015-17 [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets, current | 7,104,000 | |||
Net non-current deferred tax liabilities | $ 319,000 |
Taxes - Constituents of Provisi
Taxes - Constituents of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 14,459 | $ 16,430 | $ 18,852 |
State | (617) | 378 | 608 |
Foreign | 8,149 | 4,946 | 4,854 |
Current income tax expense (benefit), Total | 21,991 | 21,754 | 24,314 |
Deferred: | |||
Federal | (3,031) | (2,541) | (2,569) |
State | 1,066 | (165) | 7 |
Foreign | (1,058) | 250 | (837) |
Deferred income tax expense (benefit), Total | (3,023) | (2,456) | (3,399) |
Income tax expense (benefit), continuing operations, Total | $ 18,968 | $ 19,298 | $ 20,915 |
Taxes - Reconciliation of the U
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision at federal statutory corporate tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.00% | 0.00% | 0.00% |
Foreign tax rate differential | (17.00%) | (19.00%) | (19.00%) |
Tax credit | (1.00%) | (0.00%) | (0.00%) |
Discrete tax benefit related to employee stock option exercises | (7.00%) | (0.00%) | (0.00%) |
Other discrete tax events | 0.00% | (2.00%) | (1.00%) |
Other | 0.00% | 1.00% | 1.00% |
Income tax provision on continuing operations | 11.00% | 15.00% | 16.00% |
Taxes - Changes in the Reserve
Taxes - Changes in the Reserve for Income Taxes, Excluding Interest and Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Balance of reserve for income taxes | $ 5,296 | $ 5,127 |
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in prior periods | (56) | |
Unrecognized Tax Benefits, Period Increase (Decrease) | 11 | |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,235 | 1,291 |
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | 0 | 0 |
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | (823) | (1,066) |
Balance of reserve for income taxes | $ 5,719 | $ 5,296 |
Taxes - Constituents of Deferre
Taxes - Constituents of Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Non-current deferred tax assets: | ||
Stock-based compensation expense | $ 15,365,000 | $ 13,895,000 |
Federal and state tax credit carryforwards | 5,154,000 | 5,091,000 |
Inventory and revenue related | 2,919,000 | 2,985,000 |
Depreciation | 2,882,000 | 2,328,000 |
Bonuses, commissions, and other compensation | 2,483,000 | 2,500,000 |
Other | 3,714,000 | 4,175,000 |
Gross non-current deferred tax assets | 32,517,000 | 30,974,000 |
Non-current deferred tax liabilities: | ||
Nondeductible intangible assets | (379,000) | (1,198,000) |
Gross non-current deferred tax liabilities | (379,000) | (1,198,000) |
Valuation allowance | (4,116,000) | (3,259,000) |
Net non-current deferred tax assets | 28,022,000 | 26,517,000 |
Non-current deferred tax liabilities: | ||
Other | 0 | (319,000) |
Net non-current deferred tax liabilities | $ 0 | $ (319,000) |
Weighted Average Shares - Calcu
Weighted Average Shares - Calculation of Weighted Average Shares (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Basic weighted-average common shares outstanding | 85,338 | 86,296 | 86,858 |
Effect of dilutive stock options | 1,734 | 1,695 | 2,213 |
Diluted weighted-average common and common-equivalent shares outstanding | 87,072 | 87,991 | 89,071 |
Weighted Average Shares - Addit
Weighted Average Shares - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||
Stock options to purchase anti-dilutive common stock | 2,195,799 | 3,035,078 | 1,286,403 |
Segment and Geographic Inform95
Segment and Geographic Information - Additional Information (Detail) - Segment | 6 Months Ended | 12 Months Ended | ||
Jul. 03, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | ||||
Number of Reportable Segments | 1 | 1 | ||
Total Revenue | Revenue from a single customer, percentage | ||||
Concentration Risk [Line Items] | ||||
Maximum percentage of revenue accountability | 19.00% | 18.00% | 16.00% | |
Previous Company Segments [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Reportable Segments | 2 |
Segment and Geographic Inform96
Segment and Geographic Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 520,753 | $ 450,557 | $ 426,449 |
Long-lived assets | 56,311 | 55,894 | 47,468 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 136,611 | 119,781 | 120,523 |
Long-lived assets | 40,404 | 40,742 | 33,750 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 231,731 | 199,127 | 195,214 |
Long-lived assets | 12,981 | 12,498 | 10,941 |
Greater China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 63,471 | 54,137 | 38,184 |
Long-lived assets | 994 | 873 | 858 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 88,940 | 77,512 | 72,528 |
Long-lived assets | $ 1,932 | $ 1,781 | $ 1,919 |
Discontinued Operations Disco97
Discontinued Operations Discontinued Operations - (Details) - USD ($) | Jul. 06, 2015 | Oct. 02, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Stock-based compensation expense | $ 20,558,000 | $ 21,274,000 | $ 15,158,000 | ||
Net income (loss) from discontinued operations (Note 19) | (255,000) | 79,410,000 | 10,644,000 | ||
Discontinued Operations, Disposed of by Sale [Member] | |||||
Stock-based compensation expense | $ 1,106,000 | ||||
Sisd [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||
Disposal group, including discontinued operation, consideration | 155,655,000 | ||||
Disposal group, including discontinued operations, transaction costs | 5,198,000 | ||||
Gain (loss) on sale of discontinued business | 125,357,000 | (404,000) | 125,357,000 | 0 | |
Income tax expense on discontinued operations | 47,175,000 | ||||
Income tax expense (benefit) on discontinued operations | $ 47,175,000 | (149,000) | 47,801,000 | 4,997,000 | |
Net income (loss) from discontinued operations (Note 19) | $ (255,000) | $ 79,410,000 | $ 10,644,000 | ||
Discontinued Operations, Disposed of by Sale [Member] | |||||
Stock-based compensation expense | $ 1,106,000 | ||||
Settled Litigation [Member] | AMETEK Matter [Member] | Guarantee Obligations [Member] | Sisd [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||
Loss contingency, damages awarded, refund of product purchase price, value | 326,000 | ||||
Loss contingency, damages awarded, reimbursement of legal fees, value | 45,000 | ||||
Litigation settlement, amount | (281,000) | ||||
Legal Fees | 123,000 | ||||
Income tax expense (benefit) on discontinued operations | (149,000) | ||||
Net income (loss) from discontinued operations (Note 19) | $ (255,000) |
Discontinued Operations Disco98
Discontinued Operations Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($) | Jul. 06, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Net income (loss) from discontinued operations | $ (255,000) | $ 79,410,000 | $ 10,644,000 | |
Stock-based compensation expense | 0 | 1,533,000 | 1,099,000 | |
Capital expenditures | 0 | 482,000 | 631,000 | |
Sisd [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||
Revenue | 0 | 23,248,000 | 59,821,000 | |
Cost of revenue | 0 | (11,291,000) | (26,953,000) | |
Research, development, and engineering expenses | 0 | (2,126,000) | (4,089,000) | |
Selling, general, and administrative expenses | 0 | (7,800,000) | (12,968,000) | |
Foreign currency loss | 0 | (177,000) | (170,000) | |
Operating income from discontinued business | 0 | 1,854,000 | 15,641,000 | |
Gain (loss) on sale of discontinued business | $ 125,357,000 | (404,000) | 125,357,000 | 0 |
Income from discontinued operations before income tax expense | (404,000) | 127,211,000 | 15,641,000 | |
Income tax expense (benefit) on discontinued operations | $ 47,175,000 | (149,000) | 47,801,000 | 4,997,000 |
Net income (loss) from discontinued operations | (255,000) | 79,410,000 | 10,644,000 | |
Stock-based compensation expense | 0 | 1,533,000 | 1,099,000 | |
Depreciation expense | 0 | 401,000 | 777,000 | |
Amortization expense | 0 | 165,000 | 364,000 | |
Capital expenditures | $ 0 | $ 482,000 | $ 631,000 |
Acquisitions Acquisitions - (De
Acquisitions Acquisitions - (Details) - acquisition | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Number of acquisitions | 4 | 1 |
Acquisitions - Webscan, Inc. Na
Acquisitions - Webscan, Inc. Narrative (Details) - USD ($) $ in Thousands | Dec. 09, 2016 | Jan. 31, 2017 |
Webscan, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 3,176 | |
Cash paid in purchase price | $ 3,000 | |
Subsequent Event [Member] | Webscan, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Cash paid in purchase price | $ 176 | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 7 years | |
Technology-Based Intangible Assets [Member] | Webscan, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 5 years |
Acquisitions - Webscan, Inc Pur
Acquisitions - Webscan, Inc Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 09, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 95,280 | $ 81,448 | $ 77,388 | |
Webscan, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 504 | |||
Inventories | 296 | |||
Prepaid expenses and other current assets | 8 | |||
Goodwill | 925 | |||
Accounts payable | (77) | |||
Purchase price | 3,176 | |||
Customer Relationships [Member] | Webscan, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 680 | |||
Technology-Based Intangible Assets [Member] | Webscan, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | $ 840 |
Acquisitions - Chiaro Technolog
Acquisitions - Chiaro Technologies LLC (Details) - Chiaro Technologies LLC [Member] - USD ($) $ in Thousands | Dec. 09, 2016 | Nov. 30, 2016 |
Business Acquisition [Line Items] | ||
Purchase price | $ 4,149 | |
Cash paid in purchase price | 3,538 | |
Contingent consideration, noncurrent | 611 | |
Contingent consideration, low range | 0 | |
Contingent consideration, high range | $ 1,250 | |
Technology-Based Intangible Assets [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 7 years |
Acquisitions - Chiaro Techno103
Acquisitions - Chiaro Technologies LLC Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Nov. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 95,280 | $ 81,448 | $ 77,388 | |
Chiaro Technologies LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Prepaid expenses and other current assets | $ 3 | |||
Goodwill | 2,911 | |||
Accrued expenses | (115) | |||
Purchase price | 4,149 | |||
Technology-Based Intangible Assets [Member] | Chiaro Technologies LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | $ 1,350 |
Acquisitions - EnShape GmbH Nar
Acquisitions - EnShape GmbH Narrative (Details) - EnShape GmbH [Member] € in Thousands, $ in Thousands | Nov. 30, 2016 | Oct. 27, 2016USD ($) | Oct. 27, 2016EUR (€) | Oct. 27, 2016EUR (€) |
Business Acquisition [Line Items] | ||||
Purchase price | $ 7,901 | € 7,250 | ||
Cash paid in purchase price | 5,395 | 4,950 | ||
Deferred cash payment on business acquisition | 1,144 | € 1,050 | ||
Contingent consideration, current | 1,362 | € 1,250 | ||
Contingent consideration, low range | 0 | |||
Contingent consideration, high range | $ 1,362 | € 1,250 | ||
Intangible assets, useful life | 7 years |
Acquisitions - EnShape GmbH Pur
Acquisitions - EnShape GmbH Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Oct. 27, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 95,280 | $ 81,448 | $ 77,388 | |
EnShape GmbH [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 167 | |||
Accounts receivable | 4 | |||
Inventories | 79 | |||
Prepaid expenses and other current assets | 15 | |||
Property, plant, and equipment | 44 | |||
Goodwill | 8,613 | |||
Accounts payable | (6) | |||
Accrued expenses | (209) | |||
Accrued income taxes | (2,342) | |||
Purchase price | 7,901 | |||
Customer Relationships [Member] | EnShape GmbH [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 447 | |||
Technology-Based Intangible Assets [Member] | EnShape GmbH [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | $ 1,089 |
Acquisitions - AQSense, S.L. Na
Acquisitions - AQSense, S.L. Narrative (Details) - AQSense, S.L. [Member] € in Thousands, $ in Thousands | Aug. 30, 2016USD ($) | Aug. 30, 2016EUR (€) |
Business Acquisition [Line Items] | ||
Cash paid in purchase price | $ 2,519 | € 2,232 |
Intangible assets, useful life | 5 years | 5 years |
Acquisitions - AQSense, S.L. Pu
Acquisitions - AQSense, S.L. Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Aug. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 95,280 | $ 81,448 | $ 77,388 | |
AQSense, S.L. [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 168 | |||
Goodwill | 1,383 | |||
Accrued expenses | (14) | |||
Purchase price | 2,519 | |||
Customer Relationships [Member] | AQSense, S.L. [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 598 | |||
Technology-Based Intangible Assets [Member] | AQSense, S.L. [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | $ 384 |
Acquisitions - Manatee Works In
Acquisitions - Manatee Works Inc. Narrative (Details) - USD ($) $ in Thousands | Aug. 21, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Revaluation of contingent consideration | $ (463) | $ (790) | $ 0 | |||
Payment of contingent consideration | 337 | 0 | $ 0 | |||
Manatee Works, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 4,813 | |||||
Cash paid in purchase price | 1,023 | |||||
Contingent consideration liability | $ 3,790 | 2,200 | 3,000 | |||
Revaluation of contingent consideration | 463 | $ 790 | ||||
Payment of contingent consideration | 337 | |||||
Contingent consideration, current | 800 | |||||
Contingent consideration, noncurrent | $ 1,400 | |||||
Intangible assets, useful life | 5 years | |||||
Scenario, Forecast [Member] | Manatee Works, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration, low range | $ 0 | $ 0 | ||||
Contingent consideration, high range | $ 2,200 | $ 1,700 |
Acquisitions - Manatee Works109
Acquisitions - Manatee Works Inc. Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 21, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 95,280 | $ 81,448 | $ 77,388 | |
Manatee Works, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Prepaid expenses and other current assets | $ 23 | |||
Goodwill | 4,060 | |||
Purchase price | 4,813 | |||
Customer Relationships [Member] | Manatee Works, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | 140 | |||
Technology-Based Intangible Assets [Member] | Manatee Works, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets | $ 590 |
Subsequent Events Subsequent110
Subsequent Events Subsequent Events - (Details) - Subsequent Event [Member] - $ / shares | Mar. 17, 2017 | Mar. 03, 2017 | Feb. 16, 2017 |
Subsequent Event [Line Items] | |||
Dividends Payable, Amount Per Share | $ 0.075 | ||
Dividends Payable, Date Declared | Mar. 17, 2017 | ||
Dividends Payable, Date of Record | Mar. 3, 2017 |
Schedule II -Valuation and Qual
Schedule II -Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 736 | ||
Balance at End of Period | 873 | $ 736 | |
Reserve for Uncollectible Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 736 | 820 | $ 909 |
Charged to Costs and Expenses | 216 | 0 | 0 |
Deductions | (64) | (44) | (32) |
Other | (15) | (40) | (57) |
Balance at End of Period | 873 | 736 | 820 |
Reserve for Inventory Obsolescence [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 3,803 | 5,058 | 4,301 |
Charged to Costs and Expenses | 3,641 | 1,562 | 3,204 |
Deductions | (4,075) | (2,443) | (1,978) |
Other | (52) | (374) | (469) |
Balance at End of Period | 3,317 | 3,803 | 5,058 |
Deferred Tax Valuation Allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 3,259 | 2,483 | 1,758 |
Charged to Costs and Expenses | 857 | 817 | 725 |
Deductions | 0 | 0 | 0 |
Other | 0 | (41) | 0 |
Balance at End of Period | $ 4,116 | $ 3,259 | $ 2,483 |