Document and Entity Information
Document and Entity Information | 3 Months Ended |
Apr. 02, 2017shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | COGNEX CORP |
Entity Central Index Key | 851,205 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Apr. 2, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 86,646,379 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 134,942 | $ 96,205 |
Cost of revenue | 28,225 | 20,968 |
Gross margin | 106,717 | 75,237 |
Research, development, and engineering expenses | 22,770 | 20,555 |
Selling, general, and administrative expenses | 46,521 | 38,338 |
Operating income | 37,426 | 16,344 |
Foreign currency gain (loss) | (263) | (100) |
Investment income | 2,012 | 1,137 |
Other income (expense) | 270 | 207 |
Income before income tax expense | 39,445 | 17,588 |
Income tax expense (benefit) | (6,210) | 2,703 |
Net Income | $ 45,655 | $ 14,885 |
Net income per weighted-average common and common-equivalent share: | ||
Basic (in dollars per share) | $ 0.53 | $ 0.18 |
Diluted (in dollars per share) | $ 0.51 | $ 0.17 |
Weighted-average common and common-equivalent shares outstanding: | ||
Basic (in shares) | 86,323 | 84,943 |
Diluted (in shares) | 89,177 | 86,541 |
Cash dividends per common share | $ 0.075 | $ 0.070 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 45,655 | $ 14,885 |
Cash flow hedges: | ||
Net unrealized gain (loss), net of tax of ($4) and ($82) in 2017 and 2016, respectively | (71) | (577) |
Reclassification of net realized (gain) loss into current operations | 44 | (4) |
Net change related to cash flow hedges | (27) | (581) |
Available-for-sale investments: | ||
Net unrealized gain (loss), net of tax of $92 and $267 in 2017 and 2016, respectively | 511 | 1,281 |
Reclassification of net realized (gain) loss into current operations | (65) | 13 |
Net change related to available-for-sale investments | 446 | 1,294 |
Foreign currency translation adjustments: | ||
Foreign currency translation adjustments, net of tax of $0 and $329 in 2017 and 2016, respectively | 2,481 | 5,160 |
Other comprehensive income (loss), net of tax | 2,900 | 5,873 |
Total comprehensive income | $ 48,555 | $ 20,758 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Tax effect on cash flow hedges | $ (4) | $ (82) |
Tax effect of unrealized gain (loss) on available-for-sale investments | 92 | 267 |
Tax effect of foreign currency translation adjustment | $ 0 | $ 329 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Apr. 02, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 92,428,000 | $ 79,641,000 |
Short-term investments | 376,027,000 | 341,194,000 |
Accounts receivable, less reserves of $941 and $873 in 2017 and 2016, respectively | 58,236,000 | 55,438,000 |
Unbilled revenue | 1,289,000 | 2,217,000 |
Inventories | 32,615,000 | 26,984,000 |
Prepaid expenses and other current assets | 33,349,000 | 20,870,000 |
Total current assets | 593,944,000 | 526,344,000 |
Long-term investments | 312,850,000 | 324,335,000 |
Property, plant, and equipment, net | 57,255,000 | 53,992,000 |
Goodwill | 95,280,000 | 95,280,000 |
Intangible assets, net | 7,440,000 | 8,312,000 |
Deferred income taxes | 27,096,000 | 28,022,000 |
Other assets | 2,379,000 | 2,319,000 |
Total assets | 1,096,244,000 | 1,038,604,000 |
Current liabilities: | ||
Accounts payable | 17,115,000 | 9,830,000 |
Accrued expenses | 38,904,000 | 42,539,000 |
Accrued income taxes | 5,696,000 | 5,193,000 |
Deferred revenue and customer deposits | 13,801,000 | 8,211,000 |
Total current liabilities | 75,516,000 | 65,773,000 |
Reserve for income taxes | 5,641,000 | 5,361,000 |
Other non-current liabilities | 3,875,000 | 4,871,000 |
Total liabilities | 85,032,000 | 76,005,000 |
Shareholders’ equity: | ||
Common stock, $.002 par value – Authorized: 200,000 shares in 2017 and 2016, respectively, issued and outstanding: 86,646 and 85,939 shares in 2017 and 2016, respectively | 173,000 | 172,000 |
Additional paid-in capital | 411,650,000 | 375,030,000 |
Retained earnings | 652,917,000 | 643,825,000 |
Accumulated other comprehensive loss, net of tax | (53,528,000) | (56,428,000) |
Total shareholders’ equity | 1,011,212,000 | 962,599,000 |
Total liabilities and shareholders' equity | $ 1,096,244,000 | $ 1,038,604,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 02, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Reserves for accounts receivable | $ 941 | $ 873 |
Common stock, par value | $ 0.002 | $ 0.002 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 86,646,000 | 85,939,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 45,655 | $ 14,885 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 7,483 | 6,804 |
Depreciation of property, plant, and equipment | 3,083 | 2,757 |
Amortization of intangible assets | 872 | 1,045 |
Amortization of discounts or premiums on investments | 86 | 125 |
Realized (gain) loss on sale of investments | (65) | 13 |
Revaluation of contingent consideration | (275) | (263) |
Change in deferred income taxes | 921 | (2,064) |
Accounts receivable | (2,238) | (1,025) |
Unbilled revenue | 953 | 4 |
Inventories | (5,386) | 2,646 |
Prepaid expenses and other current assets | (12,326) | 3,221 |
Accounts payable | 7,167 | 2,216 |
Accrued expenses | (3,398) | (3,353) |
Accrued income taxes | 423 | 467 |
Deferred revenue and customer deposits | 5,494 | (155) |
Other | (734) | 257 |
Net cash provided by operating activities | 47,715 | 27,580 |
Cash flows from investing activities: | ||
Purchases of investments | (193,612) | (219,616) |
Maturities and sales of investments | 171,667 | 223,334 |
Purchases of property, plant, and equipment | (6,095) | (2,237) |
Cash paid for acquisition of business | (176) | 0 |
Cash paid related to discontinued business | (291) | 0 |
Net cash provided by (used in) investing activities | (28,507) | 1,481 |
Cash flows from financing activities: | ||
Issuance of common stock under stock plans | 29,139 | 3,440 |
Repurchase of common stock | (30,067) | 0 |
Payment of dividends | (6,497) | (5,950) |
Net cash provided by (used in) financing activities | (7,425) | (2,510) |
Effect of foreign exchange rate changes on cash and cash equivalents | 1,004 | 1,388 |
Net change in cash and cash equivalents | 12,787 | 27,939 |
Cash and cash equivalents at beginning of period | 79,641 | 51,975 |
Cash and cash equivalents at end of period | $ 92,428 | $ 79,914 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - 3 months ended Apr. 02, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance, Shares at Dec. 31, 2016 | 85,939,000 | 85,939,000 | |||
Beginning Balance at Dec. 31, 2016 | $ 962,599 | $ 172 | $ 375,030 | $ 643,825 | $ (56,428) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock under stock plans, shares | 1,087,000 | ||||
Stockholders' Equity, Period Increase (Decrease) | $ 2 | ||||
Issuance of common stock under stock plans | 29,139 | 29,137 | |||
Stock Repurchased During Period, Shares | 380,000 | ||||
Stock repurchased during period, Value | 30,067 | $ 1 | 30,066 | ||
Stock-based compensation expense | 7,483 | 7,483 | |||
Payment of dividends | (6,497) | (6,497) | |||
Net income | 45,655 | 45,655 | |||
Net unrealized gain (loss) on cash flow hedges, net of tax of ($4) | (71) | (71) | |||
Reclassification of net realized loss on cash flow hedges | 44 | 44 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax of $92 | 511 | 511 | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (65) | (65) | |||
Foreign currency translation adjustment | $ 2,481 | 2,481 | |||
Ending Balance, Shares at Apr. 02, 2017 | 86,646,000 | 86,646,000 | |||
Ending Balance at Apr. 02, 2017 | $ 1,011,212 | $ 173 | $ 411,650 | $ 652,917 | $ (53,528) |
Consolidated Statement of Shar9
Consolidated Statement of Shareholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Apr. 02, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Tax effect on cash flow hedges | $ (4) |
Tax effect of unrealized gain (loss) on available-for-sale investments | 92 |
Foreign currency translation adjustment, tax | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 02, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles (GAAP). Cognex Corporation (the "Company") has provided new disclosures related to inventories and internal-use software in this quarterly report on Form 10-Q. Reference should be made to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 for a full description of significant accounting policies. In the opinion of the management of the Company, the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments and financial statement reclassifications, including those related to the disposition of a business, necessary to present fairly the Company’s financial position as of April 2, 2017 , and the results of its operations for the three-month periods ended April 2, 2017 and April 3, 2016 , and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented. The results disclosed in the Consolidated Statements of Operations for the three-month period ended April 2, 2017 are not necessarily indicative of the results to be expected for the full year. Inventories On January 1, 2017, the Company adopted Accounting Standards Update (ASU) 2015-11 "Inventory - Simplifying the Measurement of Inventory." This Update requires companies to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This adoption did not have an impact on the Company's inventory value. Internal-use Software The Company accounts for the costs of computer software developed or obtained for internal use under Accounting Standards Codification 350-40 "Intangibles - Goodwill and Other, Internal-use Software." Internal-use software is software acquired, internally developed, or modified solely to meet the entity's internal needs, and during the software's development, no substantive plan exists to sell the software. The preliminary project stage includes determination of system requirements, vendor demonstrations, and final selection of vendors, and during this stage costs are expensed as incurred. The application development stage includes software design, coding, hardware installation, and testing. During this stage, certain costs are capitalized, including external direct costs of materials and services, as well as payroll and payroll-related costs for employees who are directly associated with the project, while certain costs are expensed as incurred, including training and data conversion costs. The post-implementation stage includes training and maintenance, and during this stage costs are expensed as incurred. Capitalization begins when both the preliminary project stage is completed and management commits to funding the project. Capitalization ceases at the point the project is substantially complete and ready for its intended use, that is, after all substantial testing is completed. Costs of specified upgrades and enhancements to internal-use software are capitalized if it is probable that those expenditures result in additional functionality. Capitalized costs are amortized on a straight line basis over the estimated useful life. |
New Pronouncements
New Pronouncements | 3 Months Ended |
Apr. 02, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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 likely 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) 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) 2016-13, "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. Accounting Standards Update (ASU) 2017-01, "Business Combinations - Clarifying the Definition of a Business" ASU 2017-01 applies to all reporting entities that must determine whether they have acquired or sold a business. The amendments in this Update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. For public companies, the amendments in ASU 2017-01 are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual periods. This ASU should be applied prospectively on or after the effective date and no disclosures are required at transition. Early adoption is permitted for transactions for which the acquisition date occurs before the issuance date or the effective date of the amendments in this Update, only when the transaction has not been reported in financial statements that have been issued. Management is in the process of evaluating the impact of this Update. Accounting Standards Update (ASU) 2017-04, "Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment" ASU 2017-04 applies to all reporting entities that have goodwill reported in their financial statements. The amendments in this Update eliminate Step 2 from the goodwill impairment test reducing the cost and complexity of evaluating goodwill for impairment. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment date of its assets and liabilities as would be required in a business combination. Instead, under the amendments in this Update, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. For public companies, the amendments in ASU 2017-01 are effective for the annual or any interim goodwill impairment tests for reporting periods beginning after December 15, 2019. This ASU should be applied prospectively and an entity is required to disclose the nature of and reason for the change in accounting principle upon transition. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Management does not expect ASU 2017-04 to have a material impact on the Company's financial statements and disclosures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 02, 2017 | |
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 required to be measured at fair value on a recurring basis as of April 2, 2017 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 3,895 $ — $ — Corporate bonds — 323,635 — Treasury bills — 146,253 — Asset-backed securities — 101,696 — Euro liquidity fund — 73,868 — Sovereign bonds — 30,917 — Agency bonds — 10,348 — Municipal bonds — 2,160 — Cash flow hedge forward contracts — 25 — Economic hedge forward contracts — 7 — Liabilities: Cash flow hedge forward contracts — (13 ) — Economic hedge forward contracts — (41 ) — Contingent consideration liabilities — — (3,870 ) 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 during the three -month period ended April 2, 2017 . 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 for the three-month period ended April 2, 2017 (in thousands): Balance as of December 31, 2016 $ 4,173 Fair value adjustment to Manatee contingent consideration (275 ) Foreign exchange rate changes (28 ) Balance as of April 2, 2017 $ 3,870 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 during the three -month period ended April 2, 2017 . |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 3 Months Ended |
Apr. 02, 2017 | |
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): April 2, 2017 December 31, 2016 Cash $ 88,533 $ 77,307 Money market instruments 3,895 2,334 Cash and cash equivalents 92,428 79,641 Corporate bonds 128,507 141,188 Treasury bills 92,883 67,175 Euro liquidity fund 73,868 46,499 Asset-backed securities 58,649 69,614 Sovereign bonds 12,340 7,298 Agency bonds 7,620 2,903 Municipal bonds 2,160 6,517 Short-term investments 376,027 341,194 Corporate bonds 195,128 169,952 Treasury bills 53,370 92,280 Asset-backed securities 43,047 26,946 Sovereign bonds 18,577 23,585 Agency bonds 2,728 10,339 Municipal bonds — 1,233 Long-term investments 312,850 324,335 $ 781,305 $ 745,170 Corporate bonds consist of debt securities issued by both domestic and foreign companies; treasury bills consist of debt securities issued by the U.S. government; the Euro liquidity fund invests in a portfolio of investment-grade bonds; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; sovereign bonds consist of direct debt issued by foreign governments; agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing; and municipal bonds consist of debt securities issued by state and local government entities. 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 April 2, 2017 (in thousands): Amortized Gross Gross Fair Value Short-term: Corporate bonds $ 128,444 $ 81 $ (18 ) $ 128,507 Treasury bills 93,034 3 (154 ) 92,883 Euro liquidity fund 73,540 328 — 73,868 Asset-backed securities 58,657 15 (23 ) 58,649 Sovereign bonds 12,357 3 (20 ) 12,340 Agency bonds 7,600 20 — 7,620 Municipal bonds 2,160 — — 2,160 Long-term: Corporate bonds 194,660 737 (269 ) 195,128 Treasury bills 53,459 3 (92 ) 53,370 Asset-backed securities 42,990 72 (15 ) 43,047 Sovereign bonds 18,658 2 (83 ) 18,577 Agency bonds 2,710 18 — 2,728 $ 688,269 $ 1,282 $ (674 ) $ 688,877 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 April 2, 2017 (in thousands): Unrealized Loss Position For: Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Treasury bills $ 113,462 $ (246 ) $ — $ — $ 113,462 $ (246 ) Corporate bonds 90,190 (286 ) 1,049 (1 ) 91,239 (287 ) Asset-backed securities 45,185 (37 ) 2,961 (1 ) 48,146 (38 ) Sovereign bonds 27,722 (103 ) — — 27,722 (103 ) $ 276,559 $ (672 ) $ 4,010 $ (2 ) $ 280,569 $ (674 ) As of April 2, 2017 , 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, the Company's 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 their effective maturity or market price recovery. The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $88,000 and $23,000 , respectively, during the three-month period ended April 2, 2017 and $84,000 and $97,000 , respectively, during the three-month period ended April 3, 2016 . These gains and losses are included in "Investment income" on the Consolidated Statement of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, are recorded in shareholders’ equity as other comprehensive income (loss). The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 2, 2017 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Corporate bonds $ 128,507 $ 87,341 $ 82,646 $ 3,928 $ 21,213 $ — $ 323,635 Treasury bills 92,883 53,370 — — — — 146,253 Asset-backed securities 58,649 9,960 23,850 5,656 21 3,560 101,696 Euro liquidity fund 73,868 — — — — — 73,868 Sovereign bonds 12,340 13,988 4,589 — — — 30,917 Agency bonds 7,620 — 2,728 — — — 10,348 Municipal bonds 2,160 — — — — — 2,160 $ 376,027 $ 164,659 $ 113,813 $ 9,584 $ 21,234 $ 3,560 $ 688,877 |
Inventories
Inventories | 3 Months Ended |
Apr. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): April 2, 2017 December 31, 2016 Raw materials $ 22,476 $ 18,224 Work-in-process 3,281 2,760 Finished goods 6,858 6,000 $ 32,615 $ 26,984 |
Warranty Obligations
Warranty Obligations | 3 Months Ended |
Apr. 02, 2017 | |
Product Warranties Disclosures [Abstract] | |
Warranty Obligations | Warranty Obligations The Company records the estimated cost of fulfilling product warranties at the time of sale 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. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers and third-party contract manufacturers, the Company’s warranty obligation is affected by product failure rates, material usage, and service delivery costs incurred in correcting a product failure. An adverse change in any of these factors may result in the need for additional warranty provisions. Warranty obligations are included in “Accrued expenses” on the Consolidated Balance Sheets. The changes in the warranty obligation were as follows (in thousands): Balance as of December 31, 2016 $ 4,335 Provisions for warranties issued during the period 710 Fulfillment of warranty obligations (596 ) Foreign exchange rate changes 65 Balance as of April 2, 2017 $ 4,514 |
Contingencies
Contingencies | 3 Months Ended |
Apr. 02, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Various 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 | 3 Months Ended |
Apr. 02, 2017 | |
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 installation 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. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Apr. 02, 2017 | |
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): April 2, 2017 December 31, 2016 Currency Notional USD Notional USD Derivatives Designated as Hedging Instruments: Japanese Yen 187,500 $ 1,695 342,500 $ 2,960 Hungarian Forint — — 39,000 130 Singapore Dollar — — 150 97 Derivatives Not Designated as Hedging Instruments: Japanese Yen 712,500 $ 6,366 650,000 $ 5,554 British Pound 1,540 1,920 1,350 1,658 Korean Won 1,900,000 1,702 1,750,000 1,450 Hungarian Forint 445,000 1,541 425,000 1,448 Singapore Dollar 1,760 1,258 1,350 929 Taiwanese Dollar 26,150 863 26,000 802 Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): Asset Derivatives Liability Derivatives Balance Fair Value Balance Fair Value Sheet April 2, 2017 December 31, 2016 Sheet April 2, 2017 December 31, 2016 Derivatives Designated as Hedging Instruments: Cash flow hedge forward contracts Prepaid expenses and other current assets $ 25 $ 43 Accrued expenses $ 13 $ — Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 7 $ 1 Accrued expenses $ 41 $ 11 The following table presents 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 April 2, 2017 December 31, 2016 April 2, 2017 December 31, 2016 Gross amounts of recognized assets $ 32 $ 117 Gross amounts of recognized liabilities $ 78 $ 11 Gross amounts offset — (73 ) Gross amounts offset (24 ) — Net amount of assets presented $ 32 $ 44 Net amount of liabilities presented $ 54 $ 11 Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended April 2, 2017 April 3, 2016 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ 10 $ (375 ) Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ (55 ) $ (3 ) Research, development, and engineering expenses 3 2 Selling, general, and administrative expenses 8 5 Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations $ (44 ) $ 4 Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) Foreign currency gain (loss) $ — $ — Gains (losses) recognized in current operations Foreign currency gain (loss) $ (81 ) $ (360 ) The following table provides the changes in accumulated other comprehensive income (loss), net of tax, related to derivative instruments (in thousands): Balance as of December 31, 2016 $ 37 Net unrealized loss on cash flow hedges (71 ) Reclassification of net realized loss on cash flow hedges into current operations 44 Balance as of April 2, 2017 $ 10 Net gains expected to be reclassified from accumulated other comprehensive income (loss), net of tax, into current operations within the next twelve months are $10,000 . |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Apr. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company’s share-based payments that result in compensation expense consist of stock option grants and restricted stock awards. As of April 2, 2017 , the Company had 6,258,551 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. Restricted stock awards are granted with an exercise price equal to the market value of the Company's common stock at the time of grant. Conditions of the award may be based on continuing employment and/or achievement of pre-established performance goals and objectives. Vesting for performance-based restricted stock awards and time-based restricted stock awards must be greater than one year and three years, respectively. The following table summarizes the Company’s stock option activity for the three -month period ended April 2, 2017 : Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2016 6,433 $ 32.16 Granted 1,849 76.78 Exercised (1,087 ) 26.81 Forfeited or expired (29 ) 36.01 Outstanding as of April 2, 2017 7,166 $ 44.47 8.02 $ 282,876 Exercisable as of April 2, 2017 2,256 $ 26.49 5.95 $ 129,647 Options vested or expected to vest as of April 2, 2017 (1) 6,167 $ 42.66 7.82 $ 254,614 (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: Three-months Ended April 2, 2017 April 3, 2016 Risk-free rate 2.4 % 1.7 % Expected dividend yield 0.39 % 0.84 % Expected volatility 41 % 41 % Expected term (in years) 5.3 5.5 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 75% 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 annual forfeiture rate of 10% to all unvested options for senior management and a rate of 12% for all other employees. The Company revised its estimated forfeiture rates in the first quarter of 2017, resulting in a decrease to compensation expense of $673,000 . The Company also revised its estimated forfeiture rates in the first quarter of 2016, resulting in an increase to compensation expense of $334,000 . The weighted-average grant-date fair values of stock options granted during the three-month periods ended April 2, 2017 and April 3, 2016 were $29.90 and $12.25 , respectively. The total intrinsic values of stock options exercised for the three-month periods ended April 2, 2017 and April 3, 2016 were $53,043,000 and $3,724,000 , respectively. The total fair values of stock options vested for the three-month periods ended April 2, 2017 and April 3, 2016 were $17,987,000 and $15,337,000 , respectively. As of April 2, 2017 , total unrecognized compensation expense related to non-vested stock options was $54,233,000 , which is expected to be recognized over a weighted-average period of 2.10 years. The following table summarizes the Company's restricted stock activity for the three-month period ended April 2, 2017 : Shares (in thousands) Weighted-Average Grant Fair Value Aggregate Intrinsic Value (in thousands)(1) Nonvested as of December 31, 2016 20 $ 34.05 Granted — — Vested — — Forfeited or expired — — Nonvested as of April 2, 2017 20 $ 34.05 $ 1,679 (1) Fair market value as of April 2, 2017 . 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 for the three-month period ended April 2, 2017 were $7,483,000 and $2,439,000 , respectively, and for the three-month period ended April 3, 2016 were $6,804,000 and $2,228,000 , respectively. No compensation expense was capitalized as of April 2, 2017 or December 31, 2016 . The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Three-months Ended April 2, 2017 April 3, 2016 Cost of revenue $ 430 $ 293 Research, development, and engineering 2,610 2,179 Selling, general, and administrative 4,443 4,332 $ 7,483 $ 6,804 |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Apr. 02, 2017 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program In November 2015, the Company's Board of Directors authorized the repurchase of $100,000,000 of the Company's common stock. As of April 2, 2017, the Company repurchased 919,000 shares at a cost of $61,152,000 under this program, including 380,000 shares at a cost of $30,067,000 in the first quarter of 2017, leaving a remaining authorized balance of $38,848,000 . The Company may repurchase shares under the November 2015 program in future periods depending upon a variety of factors, including, among other things, the impact of dilution from employee stock options, stock price, share availability, and cash requirements. |
Taxes
Taxes | 3 Months Ended |
Apr. 02, 2017 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes A reconciliation of the United States federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows: Three-months Ended April 2, 2017 April 3, 2016 Income tax provision at federal statutory corporate tax rate 35 % 35 % State income taxes, net of federal benefit 1 % 1 % Foreign tax rate differential (18 )% (17 )% Tax credit (1 )% (1 )% Discrete tax benefit related to stock option exercises (33 )% (3 )% Other discrete tax events (1 )% — % Other 1 % — % Income tax provision (16 )% 15 % 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, compared to the U.S. federal statutory corporate tax rate of 35%. 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 that is lower than the above mentioned statutory rates. These differences resulted in a decrease in the effective tax rate by 18 and 17 percentage points in the first quarters of 2017 and 2016, respectively. The excess tax benefit arising from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes from stock option exercises resulted in a decrease of the effective tax rate by 33 and 3 percentage points for the first quarters of 2017 and 2016, respectively. During the three -month period ended April 2, 2017 , the Company recorded a $246,000 increase in reserves for income taxes, net of deferred tax benefit. Estimated interest and penalties included in these amounts totaled $36,000 for the three -month period ended April 2, 2017 . The Company’s reserve for income taxes, including gross interest and penalties, was $6,669,000 as of April 2, 2017 , which included $5,641,000 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 $730,000 . 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 $800,000 to $900,000 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 tax authorities. The tax years 2012 through 2016 remain open to examination by various taxing authorities in other jurisdictions in which the Company operates. |
Weighted-Average Shares
Weighted-Average Shares | 3 Months Ended |
Apr. 02, 2017 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares | Weighted-Average Shares Weighted-average shares were calculated as follows (in thousands): Three-months Ended April 2, 2017 April 3, 2016 Basic weighted-average common shares outstanding 86,323 84,943 Effect of dilutive stock options 2,854 1,598 Weighted-average common and common-equivalent shares outstanding 89,177 86,541 Stock options to purchase 824,000 and 4,248,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month periods ended April 2, 2017 and April 3, 2016, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 02, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 4, 2017, the Company acquired all of the outstanding shares of ViDi Systems SA, a privately-held maker of deep learning software for industrial machine vision based in Switzerland. On April 12, 2017, the Company acquired selected assets and assumed selected liabilities of GVi Ventures, Inc., a privately-held maker of pre-configured vision solutions for solving common automotive applications based in the United States. Neither of these acquisitions is material to the Company's financial position or operating results. Given the timing of these acquisitions, the Company is in the process of completing the purchase price allocation, which will be recorded in the second quarter of 2017. Transaction costs are immaterial and are being expensed as incurred. On April 28, 2017, the Company's Board of Directors authorized the repurchase of an additional $100,000,000 of the Company's common stock. This new authorization will commence once the Company completes the November 2015 program. In addition, on April 28, 2017, the Company’s Board of Directors declared a cash dividend of $0.085 per share. The dividend is payable June 16, 2017 to all shareholders of record as of the close of business on June 2, 2017 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of April 2, 2017 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 3,895 $ — $ — Corporate bonds — 323,635 — Treasury bills — 146,253 — Asset-backed securities — 101,696 — Euro liquidity fund — 73,868 — Sovereign bonds — 30,917 — Agency bonds — 10,348 — Municipal bonds — 2,160 — Cash flow hedge forward contracts — 25 — Economic hedge forward contracts — 7 — Liabilities: Cash flow hedge forward contracts — (13 ) — Economic hedge forward contracts — (41 ) — Contingent consideration liabilities — — (3,870 ) |
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 for the three-month period ended April 2, 2017 (in thousands): Balance as of December 31, 2016 $ 4,173 Fair value adjustment to Manatee contingent consideration (275 ) Foreign exchange rate changes (28 ) Balance as of April 2, 2017 $ 3,870 |
Cash, Cash Equivalents, and I25
Cash, Cash Equivalents, and Investments (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Components of Cash, Cash Equivalents, and Investments | Cash, cash equivalents, and investments consisted of the following (in thousands): April 2, 2017 December 31, 2016 Cash $ 88,533 $ 77,307 Money market instruments 3,895 2,334 Cash and cash equivalents 92,428 79,641 Corporate bonds 128,507 141,188 Treasury bills 92,883 67,175 Euro liquidity fund 73,868 46,499 Asset-backed securities 58,649 69,614 Sovereign bonds 12,340 7,298 Agency bonds 7,620 2,903 Municipal bonds 2,160 6,517 Short-term investments 376,027 341,194 Corporate bonds 195,128 169,952 Treasury bills 53,370 92,280 Asset-backed securities 43,047 26,946 Sovereign bonds 18,577 23,585 Agency bonds 2,728 10,339 Municipal bonds — 1,233 Long-term investments 312,850 324,335 $ 781,305 $ 745,170 |
Summary of Available-for-Sale Investments | The following table summarizes the Company’s available-for-sale investments as of April 2, 2017 (in thousands): Amortized Gross Gross Fair Value Short-term: Corporate bonds $ 128,444 $ 81 $ (18 ) $ 128,507 Treasury bills 93,034 3 (154 ) 92,883 Euro liquidity fund 73,540 328 — 73,868 Asset-backed securities 58,657 15 (23 ) 58,649 Sovereign bonds 12,357 3 (20 ) 12,340 Agency bonds 7,600 20 — 7,620 Municipal bonds 2,160 — — 2,160 Long-term: Corporate bonds 194,660 737 (269 ) 195,128 Treasury bills 53,459 3 (92 ) 53,370 Asset-backed securities 42,990 72 (15 ) 43,047 Sovereign bonds 18,658 2 (83 ) 18,577 Agency bonds 2,710 18 — 2,728 $ 688,269 $ 1,282 $ (674 ) $ 688,877 |
Gross Unrealized Losses and Fair Values 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 April 2, 2017 (in thousands): Unrealized Loss Position For: Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Treasury bills $ 113,462 $ (246 ) $ — $ — $ 113,462 $ (246 ) Corporate bonds 90,190 (286 ) 1,049 (1 ) 91,239 (287 ) Asset-backed securities 45,185 (37 ) 2,961 (1 ) 48,146 (38 ) Sovereign bonds 27,722 (103 ) — — 27,722 (103 ) $ 276,559 $ (672 ) $ 4,010 $ (2 ) $ 280,569 $ (674 ) |
Effective Maturity Dates of Available-for-Sale Investments | The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 2, 2017 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Corporate bonds $ 128,507 $ 87,341 $ 82,646 $ 3,928 $ 21,213 $ — $ 323,635 Treasury bills 92,883 53,370 — — — — 146,253 Asset-backed securities 58,649 9,960 23,850 5,656 21 3,560 101,696 Euro liquidity fund 73,868 — — — — — 73,868 Sovereign bonds 12,340 13,988 4,589 — — — 30,917 Agency bonds 7,620 — 2,728 — — — 10,348 Municipal bonds 2,160 — — — — — 2,160 $ 376,027 $ 164,659 $ 113,813 $ 9,584 $ 21,234 $ 3,560 $ 688,877 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): April 2, 2017 December 31, 2016 Raw materials $ 22,476 $ 18,224 Work-in-process 3,281 2,760 Finished goods 6,858 6,000 $ 32,615 $ 26,984 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Product Warranties Disclosures [Abstract] | |
Changes in Warranty Obligations | The changes in the warranty obligation were as follows (in thousands): Balance as of December 31, 2016 $ 4,335 Provisions for warranties issued during the period 710 Fulfillment of warranty obligations (596 ) Foreign exchange rate changes 65 Balance as of April 2, 2017 $ 4,514 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Forward Contracts Table | The Company had the following outstanding forward contracts (in thousands): April 2, 2017 December 31, 2016 Currency Notional USD Notional USD Derivatives Designated as Hedging Instruments: Japanese Yen 187,500 $ 1,695 342,500 $ 2,960 Hungarian Forint — — 39,000 130 Singapore Dollar — — 150 97 Derivatives Not Designated as Hedging Instruments: Japanese Yen 712,500 $ 6,366 650,000 $ 5,554 British Pound 1,540 1,920 1,350 1,658 Korean Won 1,900,000 1,702 1,750,000 1,450 Hungarian Forint 445,000 1,541 425,000 1,448 Singapore Dollar 1,760 1,258 1,350 929 Taiwanese Dollar 26,150 863 26,000 802 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): Asset Derivatives Liability Derivatives Balance Fair Value Balance Fair Value Sheet April 2, 2017 December 31, 2016 Sheet April 2, 2017 December 31, 2016 Derivatives Designated as Hedging Instruments: Cash flow hedge forward contracts Prepaid expenses and other current assets $ 25 $ 43 Accrued expenses $ 13 $ — Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 7 $ 1 Accrued expenses $ 41 $ 11 |
Offsetting Assets | The following table presents 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 April 2, 2017 December 31, 2016 April 2, 2017 December 31, 2016 Gross amounts of recognized assets $ 32 $ 117 Gross amounts of recognized liabilities $ 78 $ 11 Gross amounts offset — (73 ) Gross amounts offset (24 ) — Net amount of assets presented $ 32 $ 44 Net amount of liabilities presented $ 54 $ 11 |
Derivative Instruments, Gain (Loss) | Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended April 2, 2017 April 3, 2016 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ 10 $ (375 ) Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ (55 ) $ (3 ) Research, development, and engineering expenses 3 2 Selling, general, and administrative expenses 8 5 Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations $ (44 ) $ 4 Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) Foreign currency gain (loss) $ — $ — Gains (losses) recognized in current operations Foreign currency gain (loss) $ (81 ) $ (360 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table provides the changes in accumulated other comprehensive income (loss), net of tax, related to derivative instruments (in thousands): Balance as of December 31, 2016 $ 37 Net unrealized loss on cash flow hedges (71 ) Reclassification of net realized loss on cash flow hedges into current operations 44 Balance as of April 2, 2017 $ 10 |
Stock-Based Compensation Expe29
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the three -month period ended April 2, 2017 : Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2016 6,433 $ 32.16 Granted 1,849 76.78 Exercised (1,087 ) 26.81 Forfeited or expired (29 ) 36.01 Outstanding as of April 2, 2017 7,166 $ 44.47 8.02 $ 282,876 Exercisable as of April 2, 2017 2,256 $ 26.49 5.95 $ 129,647 Options vested or expected to vest as of April 2, 2017 (1) 6,167 $ 42.66 7.82 $ 254,614 (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: Three-months Ended April 2, 2017 April 3, 2016 Risk-free rate 2.4 % 1.7 % Expected dividend yield 0.39 % 0.84 % Expected volatility 41 % 41 % Expected term (in years) 5.3 5.5 |
Nonvested Restricted Stock Shares Activity | The following table summarizes the Company's restricted stock activity for the three-month period ended April 2, 2017 : Shares (in thousands) Weighted-Average Grant Fair Value Aggregate Intrinsic Value (in thousands)(1) Nonvested as of December 31, 2016 20 $ 34.05 Granted — — Vested — — Forfeited or expired — — Nonvested as of April 2, 2017 20 $ 34.05 $ 1,679 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Three-months Ended April 2, 2017 April 3, 2016 Cost of revenue $ 430 $ 293 Research, development, and engineering 2,610 2,179 Selling, general, and administrative 4,443 4,332 $ 7,483 $ 6,804 |
Taxes (Tables)
Taxes (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate, or Income Tax Provision | A reconciliation of the United States federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows: Three-months Ended April 2, 2017 April 3, 2016 Income tax provision at federal statutory corporate tax rate 35 % 35 % State income taxes, net of federal benefit 1 % 1 % Foreign tax rate differential (18 )% (17 )% Tax credit (1 )% (1 )% Discrete tax benefit related to stock option exercises (33 )% (3 )% Other discrete tax events (1 )% — % Other 1 % — % Income tax provision (16 )% 15 % |
Weighted-Average Shares (Tables
Weighted-Average Shares (Tables) | 3 Months Ended |
Apr. 02, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Weighted-Average Shares | Weighted-average shares were calculated as follows (in thousands): Three-months Ended April 2, 2017 April 3, 2016 Basic weighted-average common shares outstanding 86,323 84,943 Effect of dilutive stock options 2,854 1,598 Weighted-average common and common-equivalent shares outstanding 89,177 86,541 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Apr. 02, 2017 | Dec. 31, 2016 |
Assets: | ||
Money market instruments | $ 3,895 | $ 2,334 |
Financial assets at fair value | 688,877 | |
Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 323,635 | |
Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 146,253 | |
Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 101,696 | |
Euro Liquidity Fund | ||
Assets: | ||
Financial assets at fair value | 73,868 | |
Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 30,917 | |
Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 10,348 | |
Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 2,160 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 3,895 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 0 | |
Cash flow hedge forward contracts | 25 | |
Economic hedge forward contracts | 7 | |
Liabilities: | ||
Cash flow hedge forward contracts | (13) | |
Economic hedge forward contracts | (41) | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 323,635 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 146,253 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 101,696 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Euro Liquidity Fund | ||
Assets: | ||
Financial assets at fair value | 73,868 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 30,917 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 10,348 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 2,160 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration liabilities | $ (3,870) |
Fair Value Measurements - Liabi
Fair Value Measurements - Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring $ in Thousands | 3 Months Ended |
Apr. 02, 2017USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 4,173 |
Fair value adjustment to Manatee contingent consideration | (275) |
Foreign Currency Transaction Gain (Loss), Unrealized | (28) |
Ending balance | $ 3,870 |
Cash, Cash Equivalents, and I34
Cash, Cash Equivalents, and Investments (Detail) - USD ($) | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Cash and Cash Equivalents [Abstract] | ||
Gross realized gains on sale of investments | $ 88,000 | $ 84,000 |
Gross realized losses on sale of investments | $ 23,000 | $ 97,000 |
Cash, Cash Equivalents, and I35
Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Detail) - USD ($) $ in Thousands | Apr. 02, 2017 | Dec. 31, 2016 | Apr. 03, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | $ 88,533 | $ 77,307 | ||
Money market instruments | 3,895 | 2,334 | ||
Cash and cash equivalents | 92,428 | 79,641 | $ 79,914 | $ 51,975 |
Short-term investments | 376,027 | 341,194 | ||
Long-term investments | 312,850 | 324,335 | ||
Total | 781,305 | 745,170 | ||
Treasury Bills | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 92,883 | 67,175 | ||
Long-term investments | 53,370 | 92,280 | ||
Euro Liquidity Fund | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 73,868 | 46,499 | ||
Asset-Backed Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 58,649 | 69,614 | ||
Long-term investments | 43,047 | 26,946 | ||
Corporate Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 128,507 | 141,188 | ||
Long-term investments | 195,128 | 169,952 | ||
Agency Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 7,620 | 2,903 | ||
Long-term investments | 2,728 | 10,339 | ||
Sovereign Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 12,340 | 7,298 | ||
Long-term investments | 18,577 | 23,585 | ||
Municipal Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 2,160 | 6,517 | ||
Long-term investments | $ 0 | $ 1,233 |
Cash, Cash Equivalents, and I36
Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Detail) $ in Thousands | Apr. 02, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | $ 688,269 |
Gross unrealized gains | 1,282 |
Gross unrealized losses | (674) |
Fair value | 688,877 |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (246) |
Treasury Bills | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 93,034 |
Gross unrealized gains | 3 |
Gross unrealized losses | (154) |
Fair value | 92,883 |
Treasury Bills | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 53,459 |
Gross unrealized gains | 3 |
Gross unrealized losses | (92) |
Fair value | 53,370 |
Euro Liquidity Fund | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 73,540 |
Gross unrealized gains | 328 |
Gross unrealized losses | 0 |
Fair value | 73,868 |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (38) |
Asset-Backed Securities | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 58,657 |
Gross unrealized gains | 15 |
Gross unrealized losses | (23) |
Fair value | 58,649 |
Asset-Backed Securities | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 42,990 |
Gross unrealized gains | 72 |
Gross unrealized losses | (15) |
Fair value | 43,047 |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (287) |
Corporate Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 128,444 |
Gross unrealized gains | 81 |
Gross unrealized losses | (18) |
Fair value | 128,507 |
Corporate Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 194,660 |
Gross unrealized gains | 737 |
Gross unrealized losses | (269) |
Fair value | 195,128 |
Agency Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 7,600 |
Gross unrealized gains | 20 |
Gross unrealized losses | 0 |
Fair value | 7,620 |
Agency Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 2,710 |
Gross unrealized gains | 18 |
Gross unrealized losses | 0 |
Fair value | 2,728 |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (103) |
Sovereign Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 12,357 |
Gross unrealized gains | 3 |
Gross unrealized losses | (20) |
Fair value | 12,340 |
Sovereign Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 18,658 |
Gross unrealized gains | 2 |
Gross unrealized losses | (83) |
Fair value | 18,577 |
Municipal Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 2,160 |
Gross unrealized gains | 0 |
Gross unrealized losses | 0 |
Fair value | $ 2,160 |
Cash, Cash Equivalents, and I37
Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Detail) $ in Thousands | Apr. 02, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | $ 276,559 |
Unrealized losses, less than 12 months | (672) |
Fair value, 12 months or greater | 4,010 |
Unrealized losses, 12 months or greater | (2) |
Total fair value | 280,569 |
Total unrealized losses | (674) |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 113,462 |
Unrealized losses, less than 12 months | (246) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 113,462 |
Total unrealized losses | (246) |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 90,190 |
Unrealized losses, less than 12 months | (286) |
Fair value, 12 months or greater | 1,049 |
Unrealized losses, 12 months or greater | (1) |
Total fair value | 91,239 |
Total unrealized losses | (287) |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 45,185 |
Unrealized losses, less than 12 months | (37) |
Fair value, 12 months or greater | 2,961 |
Unrealized losses, 12 months or greater | (1) |
Total fair value | 48,146 |
Total unrealized losses | (38) |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 27,722 |
Unrealized losses, less than 12 months | (103) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 27,722 |
Total unrealized losses | $ (103) |
Cash, Cash Equivalents, and I38
Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) $ in Thousands | Apr. 02, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | $ 376,027 |
1-2 years | 164,659 |
2-3 years | 113,813 |
3-4 years | 9,584 |
4-5 years | 21,234 |
5-7 years | 3,560 |
Fair value | 688,877 |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 128,507 |
1-2 years | 87,341 |
2-3 years | 82,646 |
3-4 years | 3,928 |
4-5 years | 21,213 |
5-7 years | 0 |
Fair value | 323,635 |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 58,649 |
1-2 years | 9,960 |
2-3 years | 23,850 |
3-4 years | 5,656 |
4-5 years | 21 |
5-7 years | 3,560 |
Fair value | 101,696 |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 92,883 |
1-2 years | 53,370 |
2-3 years | 0 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 146,253 |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 12,340 |
1-2 years | 13,988 |
2-3 years | 4,589 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 30,917 |
Euro Liquidity Fund | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 73,868 |
1-2 years | 0 |
2-3 years | 0 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 73,868 |
Agency Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 7,620 |
1-2 years | 0 |
2-3 years | 2,728 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 10,348 |
Municipal Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 2,160 |
1-2 years | 0 |
2-3 years | 0 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | $ 2,160 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Apr. 02, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 22,476 | $ 18,224 |
Work-in-process | 3,281 | 2,760 |
Finished goods | 6,858 | 6,000 |
Inventories | $ 32,615 | $ 26,984 |
Warranty Obligations - Changes
Warranty Obligations - Changes in Warranty Obligations (Detail) $ in Thousands | 3 Months Ended |
Apr. 02, 2017USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 4,335 |
Provisions for warranties issued during the period | 710 |
Fulfillment of warranty obligations | (596) |
Foreign exchange rate changes | 65 |
Ending balance | $ 4,514 |
Derivative Instruments (Detail)
Derivative Instruments (Detail) | 3 Months Ended |
Apr. 02, 2017Category | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, Number of Instruments Held | 2 |
Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Maximum length of time hedged in cash flow hedge | 18 months |
Not Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Remaining maturity of foreign currency derivatives (up to) | 45 days |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Forward Contracts Table (Detail) ₩ in Thousands, ¥ in Thousands, £ in Thousands, TWD in Thousands, SGD in Thousands, HUF in Thousands, $ in Thousands | Apr. 02, 2017HUF | Apr. 02, 2017GBP (£) | Apr. 02, 2017SGD | Apr. 02, 2017JPY (¥) | Apr. 02, 2017KRW (₩) | Apr. 02, 2017TWD | Apr. 02, 2017USD ($) | Dec. 31, 2016HUF | Dec. 31, 2016GBP (£) | Dec. 31, 2016SGD | Dec. 31, 2016JPY (¥) | Dec. 31, 2016KRW (₩) | Dec. 31, 2016TWD | Dec. 31, 2016USD ($) |
Designated as Hedging Instrument | Japanese Yen | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | ¥ 187,500 | $ 1,695 | ¥ 342,500 | $ 2,960 | ||||||||||
Designated as Hedging Instrument | Hungarian Forint | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | HUF 0 | 0 | HUF 39,000 | 130 | ||||||||||
Designated as Hedging Instrument | Singapore Dollar | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | SGD 0 | 0 | SGD 150 | 97 | ||||||||||
Not Designated as Hedging Instrument | Japanese Yen | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | ¥ 712,500 | 6,366 | ¥ 650,000 | 5,554 | ||||||||||
Not Designated as Hedging Instrument | Hungarian Forint | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | HUF 445,000 | 1,541 | HUF 425,000 | 1,448 | ||||||||||
Not Designated as Hedging Instrument | Singapore Dollar | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | SGD 1,760 | 1,258 | SGD 1,350 | 929 | ||||||||||
Not Designated as Hedging Instrument | British Pound | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | £ 1,540 | 1,920 | £ 1,350 | 1,658 | ||||||||||
Not Designated as Hedging Instrument | Korean Won | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | ₩ 1,900,000 | 1,702 | ₩ 1,750,000 | 1,450 | ||||||||||
Not Designated as Hedging Instrument | Taiwanese Dollar | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | TWD 26,150 | $ 863 | TWD 26,000 | $ 802 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Detail) - USD ($) $ in Thousands | Apr. 02, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 32 | $ 44 |
Derivative liability | 54 | 11 |
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 25 | 43 |
Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 13 | 0 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 7 | 1 |
Not Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 41 | $ 11 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Detail) - USD ($) $ in Thousands | Apr. 02, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized assets | $ 32 | $ 117 |
Gross amounts offset | 0 | (73) |
Net amount of assets presented | 32 | 44 |
Gross amounts of recognized liabilities | 78 | 11 |
Gross amounts offset | (24) | 0 |
Net amount of liabilities presented | $ 54 | $ 11 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations | $ (44) | $ 4 |
Designated as Hedging Instrument | Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recorded in shareholders' equity (effective portion) | 10 | (375) |
Designated as Hedging Instrument | Product Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | (55) | (3) |
Designated as Hedging Instrument | Research, Development, and Engineering Expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | 3 | 2 |
Designated as Hedging Instrument | Selling, General, and Administrative Expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) | 8 | 5 |
Designated as Hedging Instrument | Foreign Currency Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) | 0 | 0 |
Not Designated as Hedging Instrument | Foreign Currency Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) recognized in current operations | $ (81) | $ (360) |
Derivative Instruments - Sche46
Derivative Instruments - Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Detail) | 3 Months Ended |
Apr. 02, 2017USD ($) | |
Accumulated Other Comprehensive Income [Roll Forward] | |
Beginning balance | $ (56,428,000) |
Ending balance | (53,528,000) |
Losses expected to be reclassified from OCI into Net Income, net of tax, 12 months | (10,000) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |
Accumulated Other Comprehensive Income [Roll Forward] | |
Beginning balance | 37,000 |
Reclassification of net realized loss on cash flow hedges into current operations | 44,000 |
Net unrealized loss on cash flow hedges | (71,000) |
Ending balance | $ 10,000 |
Stock-Based Compensation Expe47
Stock-Based Compensation Expense (Detail) | 3 Months Ended | |
Apr. 02, 2017USD ($)group$ / sharesshares | Apr. 03, 2016USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.39% | 0.84% |
Groups within the employee population | group | 2 | |
Percentage of stock options granted to senior management expected to vest | 75.00% | |
Percentage of stock options granted to all other employees expected to vest | 72.00% | |
Estimated annual forfeiture rate for unvested options for senior management | 10.00% | |
Estimated annual forfeiture rate for unvested options for all other employees | 12.00% | |
Increase (decrease) to compensation expense | $ 673,000 | $ 334,000 |
Weighted-average grant-date fair values, in dollars per share | $ / shares | $ 29.90 | $ 12.25 |
Total intrinsic value | $ 53,043,000 | $ 3,724,000 |
Total fair values of stock options vest | 17,987,000 | 15,337,000 |
Unrecognized compensation expense | $ 54,233,000 | |
Weighted average period to be recognized | 2 years 1 month 6 days | |
Stock-based compensation expense | $ 7,483,000 | 6,804,000 |
Tax benefit from compensation expense | 2,439,000 | $ 2,228,000 |
Recognized period costs capitalized | $ 0 | |
Vesting period, performance-based restricted stock, years | 1 year | |
Vesting period, time-based restricted stock, years | 3 years | |
General Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period for stock option plans | 4 years | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant under stock option plans | shares | 6,258,551 | |
Expiration period from grant day | 10 years |
Stock-Based Compensation Expe48
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 02, 2017 | |
Shares (in thousands) | ||
Outstanding, shares | 6,433 | |
Granted, shares | 1,849 | |
Exercised, shares | (1,087) | |
Forfeited or expired, shares | (29) | |
Outstanding, shares | 7,166 | |
Exercisable as of reporting date, shares | 2,256 | |
Options vested or expected to vest as of reporting date, shares | 6,167 | |
Weighted- Average Exercise Price | ||
Outstanding, in dollars per share | $ 32.16 | |
Granted, in dollars per share | 76.78 | |
Exercised, in dollars per share | 26.81 | |
Forfeited or expired, in dollars per share | 36.01 | |
Outstanding, in dollars per share | 44.47 | |
Outstanding | $ 32.16 | $ 44.47 |
Exercisable as of reporting date, Weighted-Average Exercise Price, in dollars per share | 26.49 | |
Weighted- Average Remaining Contractual Term (in years) | $ 42.66 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding, in years | 8 years 7 days | |
Exercisable, in years | 5 years 11 months 12 days | |
Options vested or expected to vest, in years | 7 years 9 months 26 days | |
Aggregate Intrinsic Value (in thousands) | ||
Outstanding, in dollars | $ 282,876 | |
Exercisable, in dollars | 129,647 | |
Options vested or expected to vest, in dollars | $ 254,614 |
Stock-Based Compensation Expe49
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Detail) | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk-free rate | 2.40% | 1.70% |
Expected dividend yield | 0.39% | 0.84% |
Expected volatility | 41.00% | 41.00% |
Expected term (in years) | 5 years 3 months 18 days | 5 years 6 months |
Stock-Based Compensation Expe50
Stock-Based Compensation Expense - Nonvested Restricted Stock Shares Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Apr. 02, 2017USD ($)$ / sharesshares | |
Shares (in thousands) | |
Nonvested, shares | shares | 20 |
Granted, shares | shares | 0 |
Vested, shares | shares | 0 |
Forfeited or expired, shares | shares | 0 |
Nonvested, shares | shares | 20 |
Weighted-Average Grant Fair Value | |
Nonvested, in dollars per share | $ / shares | $ 34.05 |
Granted, in dollars per share | $ / shares | 0 |
Vested, in dollars per share | $ / shares | 0 |
Forfeited or expired, in dollars per share | $ / shares | 0 |
Nonvested, in dollars per share | $ / shares | $ 34.05 |
Aggregate Intrinsic Value (in thousands)(1) | |
Nonvested as of April 2, 2017 | $ | $ 1,679 |
Stock-Based Compensation Expe51
Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Detail) - USD ($) | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 7,483,000 | $ 6,804,000 |
Cost of Revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 430,000 | 293,000 |
Research, Development, and Engineering Expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 2,610,000 | 2,179,000 |
Selling, General, and Administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 4,443,000 | $ 4,332,000 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Detail) - USD ($) | 3 Months Ended | |
Apr. 02, 2017 | Nov. 01, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchased during period, Value | $ 30,067,000 | |
Repurchase Program November 2015 | ||
Equity, Class of Treasury Stock [Line Items] | ||
Authorized common stock to be repurchased | $ 100,000,000 | |
Number of shares repurchased | 919,000 | |
Value of shares repurchased | $ 61,152,000 | |
Stock Repurchased During Period, Shares | 380,000 | |
Stock repurchased during period, Value | $ 30,067,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 38,848,000 |
Taxes (Detail)
Taxes (Detail) - USD ($) | 3 Months Ended | ||
Apr. 02, 2017 | Apr. 03, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, Percent | (16.00%) | 15.00% | |
Increase in reserves for income taxes, net of deferred tax benefit | $ 246,000 | ||
Interest and penalties included in reserve | 36,000 | ||
Liability for uncertain tax positions | 6,669,000 | ||
Reserve for income taxes classified as a noncurrent iability | 5,641,000 | $ 5,361,000 | |
Reserve for income taxes classified an noncurrent deferred tax assets | 1,028,000 | ||
Interest and penalties, gross | 730,000 | ||
Minimum decrease in income tax expense due to release in reserves | 800,000 | ||
Maximum decrease in income tax expense due to release in reserves | $ 900,000 | ||
Tax years open to examination by Internal Revenue Service | 2013 through 2016 | ||
Tax years open to examination by various taxing authorities for other entities | 2012 through 2016 |
Taxes - Reconciliation of Unite
Taxes - Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate, or Income Tax Provision (Detail) | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at federal statutory corporate tax rate | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.00% | 1.00% |
Foreign tax rate differential | (18.00%) | (17.00%) |
Tax credit | (1.00%) | (1.00%) |
Discrete tax benefit related to stock option exercises | (33.00%) | (3.00%) |
Other discrete tax events | (1.00%) | 0.00% |
Other | 1.00% | 0.00% |
Income tax provision | (16.00%) | 15.00% |
Weighted-Average Shares (Detail
Weighted-Average Shares (Detail) - shares | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Earnings Per Share [Abstract] | ||
Stock options to purchase anti-dilutive common stock | 824,000 | 4,248,000 |
Weighted-Average Shares - Calcu
Weighted-Average Shares - Calculation of Weighted-Average Shares (Detail) - shares shares in Thousands | 3 Months Ended | |
Apr. 02, 2017 | Apr. 03, 2016 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average common shares outstanding | 86,323 | 84,943 |
Effect of dilutive stock options | 2,854 | 1,598 |
Weighted-average common and common-equivalent shares outstanding | 89,177 | 86,541 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Apr. 28, 2017 | Apr. 02, 2017 |
Subsequent Event [Line Items] | ||
Dividends payable, date payable | Jun. 16, 2017 | |
Dividends payable, date of record | Jun. 2, 2017 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Authorized common stock to be repurchased | $ 100,000,000 | |
Dividends (in dollars per share) | $ 0.085 |