Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jul. 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 | Jul. 2, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 86,572,316 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 172,904 | $ 147,274 | $ 307,846 | $ 243,479 |
Cost of revenue | 37,471 | 35,213 | 65,696 | 56,181 |
Gross margin | 135,433 | 112,061 | 242,150 | 187,298 |
Research, development, and engineering expenses | 23,377 | 19,671 | 46,147 | 40,226 |
Selling, general, and administrative expenses | 52,518 | 42,715 | 99,039 | 81,053 |
Operating income | 59,538 | 49,675 | 96,964 | 66,019 |
Foreign currency gain (loss) | (184) | 330 | (447) | 230 |
Investment income | 2,138 | 1,447 | 4,150 | 2,584 |
Other income (expense) | (169) | 222 | 101 | 429 |
Income from continuing operations before income tax expense | 61,323 | 51,674 | 100,768 | 69,262 |
Income tax expense (benefit) on continuing operations | 5,251 | 8,660 | (959) | 11,363 |
Net income from continuing operations | 56,072 | 43,014 | 101,727 | 57,899 |
Net income from discontinued operations | 0 | (255) | 0 | (255) |
Net Income | $ 56,072 | $ 42,759 | $ 101,727 | $ 57,644 |
Basic earnings per weighted-average common and common-equivalent share: | ||||
Net income from continuing operations | $ 0.65 | $ 0.51 | $ 1.18 | $ 0.68 |
Net income (loss) from discontinued operations | 0 | (0.01) | 0 | 0 |
Net income | 0.65 | 0.50 | 1.18 | 0.68 |
Diluted earnings per weighted-average common and common-equivalent share: | ||||
Net income from continuing operations | 0.63 | 0.50 | 1.14 | 0.67 |
Net income (loss) from discontinued operations | 0 | (0.01) | 0 | (0.01) |
Net income | $ 0.63 | $ 0.49 | $ 1.14 | $ 0.66 |
Weighted-average common and common-equivalent shares outstanding: | ||||
Basic | 86,639 | 85,107 | 86,480 | 85,024 |
Diluted | 89,614 | 86,806 | 89,452 | 86,713 |
Cash dividends per common share | $ 0.085 | $ 0.075 | $ 0.160 | $ 0.145 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 56,072 | $ 42,759 | $ 101,727 | $ 57,644 |
Cash flow hedges: | ||||
Net unrealized gain (loss), net of tax of $7 and ($15) in the three-month periods and net of tax of $3 and ($97) in the six-month periods, respectively | 59 | (302) | (12) | (879) |
Reclassification of net realized (gain) loss into current operations | (9) | 190 | 35 | 186 |
Net change related to cash flow hedges | 50 | (112) | 23 | (693) |
Available-for-sale investments: | ||||
Net unrealized gain (loss), net of tax of $58 and $243 in the three-month periods and net of tax of $150 and $510 in the six-month periods, respectively | 307 | 1,351 | 818 | 2,632 |
Reclassification of net realized (gain) loss into current operations | (42) | (141) | (107) | (128) |
Net change related to available-for-sale investments | 265 | 1,210 | 711 | 2,504 |
Foreign currency translation adjustments: | ||||
Foreign currency translation adjustments, net of tax of $0 and ($155) in the three-month periods and net of tax of $0 and $174 in the six-month periods, respectively | 10,263 | (2,546) | 12,744 | 2,614 |
Other comprehensive income (loss), net of tax | 10,578 | (1,448) | 13,478 | 4,425 |
Total comprehensive income | $ 66,650 | $ 41,311 | $ 115,205 | $ 62,069 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect on cash flow hedges | $ 7 | $ (15) | $ 3 | $ (97) |
Tax effect of unrealized gain (loss) on available-for-sale investments | 58 | 243 | 150 | 510 |
Tax effect of foreign currency translation adjustment | $ 0 | $ (155) | $ 0 | $ 174 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 02, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 68,266,000 | $ 79,641,000 |
Short-term investments | 342,402,000 | 341,194,000 |
Accounts receivable, less reserves of $1,061 and $873 in 2017 and 2016, respectively | 78,593,000 | 55,438,000 |
Unbilled revenue | 5,939,000 | 2,217,000 |
Inventories | 36,491,000 | 26,984,000 |
Prepaid expenses and other current assets | 50,157,000 | 20,870,000 |
Total current assets | 581,848,000 | 526,344,000 |
Long-term investments | 354,658,000 | 324,335,000 |
Property, plant, and equipment, net | 61,196,000 | 53,992,000 |
Goodwill | 115,089,000 | 95,280,000 |
Intangible assets, net | 15,226,000 | 8,312,000 |
Deferred income taxes | 29,681,000 | 28,022,000 |
Other assets | 3,300,000 | 2,319,000 |
Total assets | 1,160,998,000 | 1,038,604,000 |
Current liabilities: | ||
Accounts payable | 22,815,000 | 9,830,000 |
Accrued expenses | 42,621,000 | 42,539,000 |
Accrued income taxes | 4,957,000 | 5,193,000 |
Deferred revenue and customer deposits | 18,011,000 | 8,211,000 |
Total current liabilities | 88,404,000 | 65,773,000 |
Deferred income taxes | 5,215,000 | 0 |
Reserve for income taxes | 6,122,000 | 5,361,000 |
Other non-current liabilities | 9,281,000 | 4,871,000 |
Total liabilities | 109,022,000 | 76,005,000 |
Shareholders’ equity: | ||
Common stock, $.002 par value – Authorized: 200,000 shares in 2017 and 2016, respectively, issued and outstanding: 86,572 and 85,939 shares in 2017 and 2016, respectively | 173,000 | 172,000 |
Additional paid-in capital | 425,406,000 | 375,030,000 |
Retained earnings | 669,347,000 | 643,825,000 |
Accumulated other comprehensive loss, net of tax | (42,950,000) | (56,428,000) |
Total shareholders’ equity | 1,051,976,000 | 962,599,000 |
Total liabilities and shareholders' equity | $ 1,160,998,000 | $ 1,038,604,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Reserves for accounts receivable | $ 1,061 | $ 873 |
Common stock, par value | $ 0.002 | $ 0.002 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 86,572,000 | 85,939,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 101,727 | $ 57,644 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
(Gain) loss on sale of discontinued business | 0 | 255 |
Stock-based compensation expense | 15,329 | 11,261 |
Depreciation of property, plant, and equipment | 6,288 | 5,577 |
Amortization of intangible assets | 1,740 | 1,862 |
Amortization of discounts or premiums on investments | 171 | 204 |
Realized (gain) loss on sale of investments | (107) | (128) |
Revaluation of contingent consideration | (151) | (463) |
Change in deferred income taxes | 2,998 | (2,943) |
Accounts receivable | (18,841) | (17,737) |
Unbilled revenue | (3,315) | (25,507) |
Inventories | (7,711) | 11,964 |
Prepaid expenses and other current assets | (27,717) | (7,449) |
Accounts payable | 11,814 | 6,224 |
Accrued expenses | (157) | 1,762 |
Accrued income taxes | (566) | 2,245 |
Deferred revenue and customer deposits | 9,110 | 3,998 |
Other | 8 | 542 |
Net cash provided by operating activities | 90,620 | 49,311 |
Cash flows from investing activities: | ||
Purchases of investments | (304,611) | (455,915) |
Maturities and sales of investments | 279,654 | 427,196 |
Purchases of property, plant, and equipment | (12,172) | (5,347) |
Cash paid for acquisition of businesses, net of cash acquired | (25,519) | 0 |
Net cash provided by (used in) investing activities | (291) | (113) |
Net cash provided by (used in) investing activities | (62,939) | (34,179) |
Cash flows from financing activities: | ||
Issuance of common stock under stock plans | 35,050 | 8,700 |
Repurchase of common stock | (62,343) | (8,718) |
Payment of dividends | (13,864) | (12,335) |
Payment of contingent consideration | 0 | (337) |
Net cash provided by (used in) financing activities | (41,157) | (12,690) |
Effect of foreign exchange rate changes on cash and cash equivalents | 2,101 | 512 |
Net change in cash and cash equivalents | (11,375) | 2,954 |
Cash and cash equivalents at beginning of period | 79,641 | 51,975 |
Cash and cash equivalents at end of period | $ 68,266 | $ 54,929 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - 6 months ended Jul. 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 | 1,365,000 | ||||
Stockholders' Equity, Period Increase (Decrease) | $ 3 | ||||
Issuance of common stock under stock plans | 35,050 | 35,047 | |||
Stock Repurchased During Period, Shares | 732,000 | ||||
Stock repurchased during period, Value | 62,343 | $ 2 | 62,341 | ||
Stock-based compensation expense | 15,329 | 15,329 | |||
Payment of dividends | (13,864) | (13,864) | |||
Net income | 101,727 | 101,727 | |||
Net unrealized gain (loss) on cash flow hedges, net of tax of $3 | (12) | (12) | |||
Reclassification of net realized loss on cash flow hedges | 35 | 35 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax of $150 | 818 | 818 | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (107) | (107) | |||
Foreign currency translation adjustment, net of tax of $0 | $ 12,744 | 12,744 | |||
Ending Balance, Shares at Jul. 02, 2017 | 86,572,000 | 86,572,000 | |||
Ending Balance at Jul. 02, 2017 | $ 1,051,976 | $ 173 | $ 425,406 | $ 669,347 | $ (42,950) |
Consolidated Statement of Shar9
Consolidated Statement of Shareholders' Equity (Parenthetical) $ in Thousands | 6 Months Ended |
Jul. 02, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Tax effect on cash flow hedges | $ 3 |
Tax effect of unrealized gain (loss) on available-for-sale investments | 150 |
Foreign currency translation adjustment, tax | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 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 July 2, 2017 , and the results of its operations for the three-month and six-month periods ended July 2, 2017 and July 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 and six-month periods ended July 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 conceptual formulation of design alternatives, 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 configuration, 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 | 6 Months Ended |
Jul. 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. Furthermore, for arrangements that include customer-specified acceptance criteria, we expect to recognize revenue when we can objectively determine that control has been transferred to the customer in accordance with the agreed-upon specifications in the contract, which may occur before formal customer acceptance. This change will primarily impact revenue recognition for arrangements in the logistics industry where certain customer solutions include installed ID products and will likely result in earlier recognition of revenue. We do not expect these changes to have a material impact on total revenue. Management is currently in the process of updating the Company's revenue accounting policy, internal controls, and disclosures to finalize the implementation 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 does not expect ASU 2017-01 to have a material impact on the Company's financial statements and disclosures. 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 2017-04 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. Accounting Standards Update (ASU) 2017-08, "Receivables - Nonrefundable Fees and Other Costs - Premium Amortization on Purchased Callable Debt Securities " ASU 2017-08 applies to all reporting entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date (that is, at a premium). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. Under current GAAP, premiums and discounts on callable debt securities generally are amortized to the maturity date. If that callable debt security is subsequently called, the entity records a loss equal to the unamortized premium. The amendments in this Update more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. For public companies, the amendments in ASU 2017-08 are effective for annual periods beginning after December 15, 2019 and interim reporting periods within annual years beginning after December 15, 2020. 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, and, in the period of adoption, the entity is required to provide disclosures about a change in accounting principle. Early adoption is permitted, including adoption in an interim period. Management is in the process of evaluating the impact of this Update. Accounting Standards Update (ASU) 2017-09, "Compensation - Stock Compensation - Scope of Modification Accounting" ASU 2017-09 applies to all reporting entities that change the terms or conditions of a share-based payment award. Currently, the definition of the term modification is broad and its interpretation results in diversity in practice. The amendments in this Update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: 1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified, 2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified, and 3)the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. For public companies, the amendments in ASU 2017-09 are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual periods. Early adoption is permitted including adoption in an interim period, for reporting periods for which financial statements have not yet been issued. This ASU should be applied prospectively to an award modified on or after the adoption date. Management does not expect ASU 2017-09 to have a material impact on the Company's financial statements and disclosures. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 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 July 2, 2017 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 3,554 $ — $ — Corporate bonds — 325,159 — Treasury bills — 152,563 — Asset-backed securities — 87,260 — Euro liquidity fund — 79,256 — Sovereign bonds — 30,933 — Agency bonds — 13,412 — Municipal bonds — 8,477 — Cash flow hedge forward contracts — 71 — Economic hedge forward contracts — 45 — Liabilities: Economic hedge forward contracts — 4 — Contingent consideration liabilities — — 3,959 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 six -month period ended July 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, and the likelihood of completing certain tasks. 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 liability measured at fair value using Level 3 inputs for the six-month period ended July 2, 2017 (in thousands): Balance as of December 31, 2016 $ 4,173 Payment of EnShape contingent consideration (1,401 ) Fair value adjustment to Manatee contingent consideration (275 ) Fair value adjustment to Chiaro contingent consideration 124 Contingent consideration resulting from GVi acquisition 1,299 Foreign exchange rate changes 39 Balance as of July 2, 2017 $ 3,959 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 six -month period ended July 2, 2017 . |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 6 Months Ended |
Jul. 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): July 2, 2017 December 31, 2016 Cash $ 64,712 $ 77,307 Money market instruments 3,554 2,334 Cash and cash equivalents 68,266 79,641 Treasury bills 97,018 67,175 Corporate bonds 86,000 141,188 Euro liquidity fund 79,256 46,499 Asset-backed securities 42,449 69,614 Sovereign bonds 24,454 7,298 Agency bonds 7,610 2,903 Municipal bonds 5,615 6,517 Short-term investments 342,402 341,194 Corporate bonds 239,159 169,952 Treasury bills 55,545 92,280 Asset-backed securities 44,811 26,946 Sovereign bonds 6,479 23,585 Agency bonds 5,802 10,339 Municipal bonds 2,862 1,233 Long-term investments 354,658 324,335 $ 765,326 $ 745,170 Treasury bills consist of debt securities issued by the U.S. government; corporate bonds consist of debt securities issued by both domestic and foreign companies; 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 July 2, 2017 (in thousands): Amortized Gross Gross Fair Value Short-term: Treasury bills $ 97,218 $ — $ (200 ) $ 97,018 Corporate bonds 85,918 85 (3 ) 86,000 Euro liquidity fund 78,824 432 — 79,256 Asset-backed securities 42,467 2 (20 ) 42,449 Sovereign bonds 24,495 4 (45 ) 24,454 Agency bonds 7,600 10 — 7,610 Municipal bonds 5,615 — — 5,615 Long-term: Corporate bonds 238,417 929 (187 ) 239,159 Treasury bills 55,671 — (126 ) 55,545 Asset-backed securities 44,733 95 (17 ) 44,811 Sovereign bonds 6,519 1 (41 ) 6,479 Agency bonds 5,787 16 (1 ) 5,802 Municipal bonds 2,860 2 — 2,862 $ 696,124 $ 1,576 $ (640 ) $ 697,060 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 July 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 $ 143,666 $ (306 ) $ 8,897 $ (20 ) $ 152,563 $ (326 ) Corporate bonds 62,295 (190 ) — — 62,295 (190 ) Asset-backed securities 52,141 (37 ) — — 52,141 (37 ) Sovereign bonds 24,737 (84 ) 3,001 (2 ) 27,738 (86 ) Agency bonds 3,076 (1 ) — — 3,076 (1 ) $ 285,915 $ (618 ) $ 11,898 $ (22 ) $ 297,813 $ (640 ) As of July 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 $55,000 and $13,000 , respectively, during the three-month period ended July 2, 2017 and $141,000 and $0 , respectively, during the three-month period ended July 3, 2016 . The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $143,000 and $36,000 , respectively, during the six-month period ended July 2, 2017 and $225,000 and $97,000 , respectively, during the six-month period ended July 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 July 2, 2017 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Corporate bonds $ 86,000 $ 112,337 $ 86,773 $ 7,602 $ 32,447 $ — $ 325,159 Treasury bills 97,018 55,545 — — — — 152,563 Asset-backed securities 42,449 21,856 20,100 — — 2,855 87,260 Euro liquidity fund 79,256 — — — — — 79,256 Sovereign bonds 24,454 3,819 2,660 — — — 30,933 Agency bonds 7,610 2,726 3,076 — — — 13,412 Municipal bonds 5,615 2,862 — — — — 8,477 $ 342,402 $ 199,145 $ 112,609 $ 7,602 $ 32,447 $ 2,855 $ 697,060 |
Inventories
Inventories | 6 Months Ended |
Jul. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): July 2, 2017 December 31, 2016 Raw materials $ 23,197 $ 18,224 Work-in-process 6,970 2,760 Finished goods 6,324 6,000 $ 36,491 $ 26,984 |
Goodwill
Goodwill | 6 Months Ended |
Jul. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying value of goodwill were as follows (in thousands): Amount Balance as of December 31, 2016 $ 95,280 Acquisition of ViDi Systems S.A. 18,333 Acquisition of GVi Ventures, Inc. 1,476 Balance as of July 2, 2017 $ 115,089 Refer to Note 15 to the Consolidated Financial Statements for further information regarding acquisitions. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jul. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Amortized intangible assets consisted of the following (in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 13,687 2,961 10,726 Customer relationships 9,205 5,044 4,161 Non-compete agreements 370 31 339 Balance as of July 2, 2017 $ 61,322 $ 46,096 $ 15,226 Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 37,422 $ 638 Completed technologies 8,003 2,098 5,905 Customer relationships 6,605 4,836 1,769 Balance as of December 31, 2016 $ 52,668 $ 44,356 $ 8,312 As of July 2, 2017, estimated future amortization expense related to intangible assets is as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2017 $ 1,598 2018 3,196 2019 2,821 2020 2,305 2021 2,097 2022 1,691 Thereafter 1,518 $ 15,226 |
Warranty Obligations
Warranty Obligations | 6 Months Ended |
Jul. 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 1,456 Fulfillment of warranty obligations (1,249 ) Foreign exchange rate changes 395 Balance as of July 2, 2017 $ 4,937 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jul. 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): July 2, 2017 December 31, 2016 Currency Notional USD Notional USD Derivatives Designated as Hedging Instruments: Japanese Yen 62,500 $ 627 342,500 $ 2,960 Hungarian Forint — — 39,000 130 Singapore Dollar — — 150 97 Derivatives Not Designated as Hedging Instruments: Japanese Yen 665,000 $ 5,954 650,000 $ 5,554 British Pound 1,690 2,197 1,350 1,658 Korean Won 2,100,000 1,839 1,750,000 1,450 Hungarian Forint 445,000 1,648 425,000 1,448 Singapore Dollar 2,025 1,473 1,350 929 Taiwanese Dollar 29,100 959 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 July 2, 2017 December 31, 2016 Sheet July 2, 2017 December 31, 2016 Derivatives Designated as Hedging Instruments: Cash flow hedge forward contracts Prepaid expenses and other current assets $ 71 $ 43 Accrued expenses $ — $ — Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 45 $ 1 Accrued expenses $ 4 $ 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 July 2, 2017 December 31, 2016 July 2, 2017 December 31, 2016 Gross amounts of recognized assets $ 116 $ 117 Gross amounts of recognized liabilities $ 4 $ 11 Gross amounts offset — (73 ) Gross amounts offset — — Net amount of assets presented $ 116 $ 44 Net amount of liabilities presented $ 4 $ 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 Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ 60 $ (487 ) $ 60 $ (487 ) Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ 9 $ (200 ) $ (46 ) $ (203 ) Research, development, and engineering expenses — 2 3 4 Selling, general, and administrative expenses — 8 8 13 Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations $ 9 $ (190 ) $ (35 ) $ (186 ) Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) Foreign currency gain (loss) $ — $ — $ — $ — Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 177 $ (705 ) $ 96 $ (1,065 ) 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 (12 ) Reclassification of net realized loss on cash flow hedges into current operations 35 Balance as of July 2, 2017 $ 60 Net gains expected to be reclassified from accumulated other comprehensive income (loss), net of tax, into current operations within the next twelve months are $60,000 . |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 6 Months Ended |
Jul. 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 July 2, 2017 , the Company had 6,205,027 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 six -month period ended July 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 1,937 77.36 Exercised (1,365 ) 25.68 Forfeited or expired (64 ) 43.11 Outstanding as of July 2, 2017 6,941 $ 45.95 7.91 $ 270,790 Exercisable as of July 2, 2017 2,015 $ 27.39 5.85 $ 115,900 Options vested or expected to vest as of July 2, 2017 (1) 6,033 $ 44.28 7.74 $ 245,371 (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 Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Risk-free rate 2.4 % 1.7 % 2.4 % 1.7 % Expected dividend yield 0.39 % 0.84 % 0.39 % 0.84 % Expected volatility 41 % 41 % 41 % 41 % Expected term (in years) 5.2 5.4 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 rate in the first quarter of 2017, resulting in a decrease to compensation expense of $673,000 . The Company also revised its estimated forfeiture rate 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 July 2, 2017 and July 3, 2016 were $31.01 and $12.22 , respectively. The weighted-average grant-date fair values of stock options granted during the six-month periods ended July 2, 2017 and July 3, 2016 were $29.95 and $12.25 , respectively. The total intrinsic values of stock options exercised for the three-month periods ended July 2, 2017 and July 3, 2016 were $19,408,000 and $5,652,000 , respectively. The total intrinsic values of stock options exercised for the six-month periods ended July 2, 2017 and July 3, 2016 were $72,451,000 and $9,376,000 , respectively. The total fair values of stock options vested for the three-month periods ended July 2, 2017 and July 3, 2016 were $725,000 and $709,000 , respectively. The total fair values of stock options vested for the six-month periods ended July 2, 2017 and July 3, 2016 were $18,713,000 and $16,045,000 , respectively. As of July 2, 2017 , total unrecognized compensation expense related to non-vested stock options was $48,313,000 , which is expected to be recognized over a weighted-average period of 1.89 years. The following table summarizes the Company's restricted stock activity for the six-month period ended July 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 (10 ) 34.05 825 Forfeited or expired — — Nonvested as of July 2, 2017 10 $ 34.05 $ 849 (1) Fair market value as of April 22, 2017 for vested shares, and as of July 2, 2017 for nonvested shares. 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 July 2, 2017 were $7,846,000 and $2,583,000 , respectively, and for the three-month period ended July 3, 2016 were $4,457,000 and $1,462,000 , respectively. The total stock-based compensation expense and the related income tax benefit recognized for the six-month period ended July 2, 2017 were $15,329,000 and $5,022,000 , respectively, and for the six-month period ended July 3, 2016 were $11,261,000 and $3,690,000 , respectively. No compensation expense was capitalized as of July 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 Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Cost of revenue $ 454 $ 229 $ 884 $ 522 Research, development, and engineering 2,715 1,397 5,325 3,576 Selling, general, and administrative 4,677 2,831 9,120 7,163 $ 7,846 $ 4,457 $ 15,329 $ 11,261 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jul. 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 July 2, 2017, the Company has repurchased 1,271,000 shares at a cost of $93,428,000 under this program, including 732,000 shares at a cost of $62,343,000 for the six-month period ended July 2, 2017. In April 2017, the Company's Board of Directors authorized the repurchase of an additional $100,000,000 of the Company's common stock. Purchases under this April 2017 program will commence upon completion of the November 2015 program. The Company may repurchase shares under these programs 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 | 6 Months Ended |
Jul. 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 on continuing operations, or effective tax rate, was as follows: Three-months Ended Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Income tax provision at federal statutory corporate tax rate 35 % 35 % 35 % 35 % State income taxes, net of federal benefit 1 % 1 % 1 % 1 % Foreign tax rate differential (18 )% (18 )% (18 )% (18 )% Tax credit (1 )% (1 )% (1 )% (1 )% Discrete tax benefit related to stock option exercises (9 )% (1 )% (19 )% (2 )% Other 1 % 1 % 1 % 1 % Income tax provision on continuing operations 9 % 17 % (1 )% 16 % The majority of income earned outside of the United States is permanently reinvested to provide funds for international expansion. The Company is tax resident in numerous jurisdictions around the world and has identified its major jurisdictions as the United States, Ireland, and China. The statutory tax rate is 12.5% in Ireland and 25% in China, 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 percentage points for the three-month and six-month periods ended July 2, 2017 and July 3, 2016. 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 9 and 1 percentage points for the three-month periods ended July 2, 2017 and July 3, 2016, respectively, and a decrease of the effective tax rate by 19 and 2 percentage points for the six-month periods ended July 2, 2017 and July 3, 2016, respectively. During the six -month period ended July 2, 2017 , the Company recorded a $702,000 increase in reserves for income taxes, net of deferred tax benefit. Estimated interest and penalties included in these amounts totaled $86,000 for the six -month period ended July 2, 2017 . The Company’s reserve for income taxes, including gross interest and penalties, was $7,150,000 as of July 2, 2017 , which included $6,122,000 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 $798,000 . 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 | 6 Months Ended |
Jul. 02, 2017 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares | Weighted-Average Shares Weighted-average shares were calculated as follows (in thousands): Three-months Ended Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Basic weighted-average common shares outstanding 86,639 85,107 86,480 85,024 Effect of dilutive stock options 2,975 1,699 2,972 1,689 Weighted-average common and common-equivalent shares outstanding 89,614 86,806 89,452 86,713 Stock options to purchase 1,896,132 and 1,357,254 shares of common stock, on a weighted-average basis, were outstanding during the three-month and six-month periods ended July 2, 2017, respectively, and 3,904,396 and 4,502,777 for the same periods in 2016, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jul. 02, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On July 6, 2015, the Company completed the sale of its Surface Inspection Systems Division (SISD). A binding arbitration was concluded in the second quarter of 2016 with respect to certain product performance claims made by an SISD customer, for which the Company remained responsible under the indemnity provisions of the sale transaction. In that proceeding, the tribunal ordered the Company to pay the customer approximately $326,000 , primarily representing a refund of the product purchase price. The tribunal also ordered the customer to pay the Company approximately $45,000 , primarily representing reimbursement of legal fees. The net settlement of $281,000 was recorded in discontinued operations in the second quarter of 2016, along with $123,000 of legal fees. The tax benefit related to this expense was $149,000 , resulting in a net loss from discontinued operations of $255,000 . The losses included in discontinued operations were as follows (in thousands): Three-months Ended Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Operating income from discontinued operations $ — $ — $ — $ — Gain (loss) on sale of discontinued operations — (404 ) — (404 ) Income (loss) from discontinued operations before income tax expense (benefit) — (404 ) — (404 ) Income tax expense (benefit) on discontinued operations — (149 ) — (149 ) Net income (loss) from discontinued operations $ — $ (255 ) $ — $ (255 ) |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 02, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions ViDi Systems S.A. On April 4, 2017, the Company acquired all of the outstanding shares of ViDi Systems, S.A. (ViDi), a privately-held vision software company based in Switzerland. This transaction has been accounted for as a business combination. The total purchase price of $23,015,000 included cash payment of $ 20,019,000 , with the remaining $ 2,996,000 recorded as a holdback to secure potential claims under the agreement. The holdback limitation period is 18 months, and therefore, this amount has been recorded in "Other non-current liabilities" on the Consolidated Balance Sheet. In addition, the Company entered into a special incentive payment tied to employment, which is not material, that the Company will record as compensation expense. Under this transaction, in addition to completed technologies, the Company acquired a team of software engineers that are expected to help the Company broaden the scope of applications that can be addressed with Cognex vision. ViDi's deep learning software uses artificial intelligence techniques to improve image analysis in applications where it is difficult to predict the full range of image variations that might be encountered. Using feedback, ViDi's software trains the system to distinguish between acceptable variations and defects. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The purchase price was allocated as follows (in thousands): Cash $ 146 Accounts receivable 425 Prepaid expenses 129 Property, plant, and equipment 40 Accounts payable (98 ) Accrued expenses (716 ) Deferred income tax liability (388 ) Non-compete agreement 370 Completed technologies 4,774 Goodwill 18,333 Purchase price $ 23,015 The non-compete agreement and completed technology are included in "Intangible assets" on the Consolidated Balance Sheet. The non-compete agreement will be amortized to research, development and engineering expenses over three years, and the completed technology will be amortized to cost of revenue over six years, both on a straight-line basis. The portion of the acquired goodwill deductible for tax purposes is $5,112,000 . Transaction costs were immaterial and were expensed as incurred. GVi Ventures, Inc. 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 common automotive applications based in the United States. This transaction has been accounted for as a business combination. The total purchase price of $5,368,000 included cash payment of $4,069,000 and contingent consideration valued at $1,299,000 . In addition, the Company entered into special incentive payments tied to employment, none of which are material, that the Company will record as compensation expense. The undiscounted potential outcomes related to the contingent consideration range from $0 to $3,500,000 based upon certain milestone revenue levels over the next five years. As of July 2, 2017, the fair value of the contingent consideration was $1,299,000 , with $274,000 recorded in “Accrued expenses,” and $1,025,000 recorded in "Other non-current liabilities" on the Consolidated Balance Sheet. The contingent consideration will be remeasured each reporting period with changes in fair value recorded in "Other income (expense)" on the Consolidated Statements of Operations. Under this transaction, in addition to customer relationships and completed technologies, the Company acquired a team of software engineers that are expected to develop new products and increase the Company's ability to serve large customers in the automotive industry. Assets acquired and liabilities assumed have been recorded at their estimated fair values as of the acquisition date. The purchase price was allocated as follows (in thousands): Accounts receivable $ 423 Inventories 120 Prepaid expenses and other current assets 1 Accounts payable (152 ) Accrued expenses (10 ) Completed technologies 910 Customer relationships 2,600 Goodwill 1,476 Purchase price $ 5,368 The customer relationships and completed technologies are included in "Intangible assets" on the Consolidated Balance Sheet. The customer relationships are being amort ized to selling, general, and administrative e xpenses over eight years, and the completed technologies are being amortized to cost of revenue over five years, both on a straigh t-line basis. A portion of t he acquired goodwill is deductible for tax purposes. Transaction costs were immaterial and were expensed as incurred. Pro-forma information for these acquisitions has not been presented because they are not material, either individually or in the aggregate. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 02, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 31, 2017, the Company’s Board of Directors declared a cash dividend of $0.085 per share. The dividend is payable September 1, 2017 to all shareholders of record as of the close of business on August 18, 2017 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 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 July 2, 2017 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 3,554 $ — $ — Corporate bonds — 325,159 — Treasury bills — 152,563 — Asset-backed securities — 87,260 — Euro liquidity fund — 79,256 — Sovereign bonds — 30,933 — Agency bonds — 13,412 — Municipal bonds — 8,477 — Cash flow hedge forward contracts — 71 — Economic hedge forward contracts — 45 — Liabilities: Economic hedge forward contracts — 4 — Contingent consideration liabilities — — 3,959 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the activity for the Company's liability measured at fair value using Level 3 inputs for the six-month period ended July 2, 2017 (in thousands): Balance as of December 31, 2016 $ 4,173 Payment of EnShape contingent consideration (1,401 ) Fair value adjustment to Manatee contingent consideration (275 ) Fair value adjustment to Chiaro contingent consideration 124 Contingent consideration resulting from GVi acquisition 1,299 Foreign exchange rate changes 39 Balance as of July 2, 2017 $ 3,959 |
Cash, Cash Equivalents, and I27
Cash, Cash Equivalents, and Investments (Tables) | 6 Months Ended |
Jul. 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): July 2, 2017 December 31, 2016 Cash $ 64,712 $ 77,307 Money market instruments 3,554 2,334 Cash and cash equivalents 68,266 79,641 Treasury bills 97,018 67,175 Corporate bonds 86,000 141,188 Euro liquidity fund 79,256 46,499 Asset-backed securities 42,449 69,614 Sovereign bonds 24,454 7,298 Agency bonds 7,610 2,903 Municipal bonds 5,615 6,517 Short-term investments 342,402 341,194 Corporate bonds 239,159 169,952 Treasury bills 55,545 92,280 Asset-backed securities 44,811 26,946 Sovereign bonds 6,479 23,585 Agency bonds 5,802 10,339 Municipal bonds 2,862 1,233 Long-term investments 354,658 324,335 $ 765,326 $ 745,170 |
Summary of Available-for-Sale Investments | The following table summarizes the Company’s available-for-sale investments as of July 2, 2017 (in thousands): Amortized Gross Gross Fair Value Short-term: Treasury bills $ 97,218 $ — $ (200 ) $ 97,018 Corporate bonds 85,918 85 (3 ) 86,000 Euro liquidity fund 78,824 432 — 79,256 Asset-backed securities 42,467 2 (20 ) 42,449 Sovereign bonds 24,495 4 (45 ) 24,454 Agency bonds 7,600 10 — 7,610 Municipal bonds 5,615 — — 5,615 Long-term: Corporate bonds 238,417 929 (187 ) 239,159 Treasury bills 55,671 — (126 ) 55,545 Asset-backed securities 44,733 95 (17 ) 44,811 Sovereign bonds 6,519 1 (41 ) 6,479 Agency bonds 5,787 16 (1 ) 5,802 Municipal bonds 2,860 2 — 2,862 $ 696,124 $ 1,576 $ (640 ) $ 697,060 |
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 July 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 $ 143,666 $ (306 ) $ 8,897 $ (20 ) $ 152,563 $ (326 ) Corporate bonds 62,295 (190 ) — — 62,295 (190 ) Asset-backed securities 52,141 (37 ) — — 52,141 (37 ) Sovereign bonds 24,737 (84 ) 3,001 (2 ) 27,738 (86 ) Agency bonds 3,076 (1 ) — — 3,076 (1 ) $ 285,915 $ (618 ) $ 11,898 $ (22 ) $ 297,813 $ (640 ) |
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 July 2, 2017 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Corporate bonds $ 86,000 $ 112,337 $ 86,773 $ 7,602 $ 32,447 $ — $ 325,159 Treasury bills 97,018 55,545 — — — — 152,563 Asset-backed securities 42,449 21,856 20,100 — — 2,855 87,260 Euro liquidity fund 79,256 — — — — — 79,256 Sovereign bonds 24,454 3,819 2,660 — — — 30,933 Agency bonds 7,610 2,726 3,076 — — — 13,412 Municipal bonds 5,615 2,862 — — — — 8,477 $ 342,402 $ 199,145 $ 112,609 $ 7,602 $ 32,447 $ 2,855 $ 697,060 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): July 2, 2017 December 31, 2016 Raw materials $ 23,197 $ 18,224 Work-in-process 6,970 2,760 Finished goods 6,324 6,000 $ 36,491 $ 26,984 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying value of goodwill | The changes in the carrying value of goodwill were as follows (in thousands): Amount Balance as of December 31, 2016 $ 95,280 Acquisition of ViDi Systems S.A. 18,333 Acquisition of GVi Ventures, Inc. 1,476 Balance as of July 2, 2017 $ 115,089 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortized Intangible Assets | Amortized intangible assets consisted of the following (in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 13,687 2,961 10,726 Customer relationships 9,205 5,044 4,161 Non-compete agreements 370 31 339 Balance as of July 2, 2017 $ 61,322 $ 46,096 $ 15,226 Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 37,422 $ 638 Completed technologies 8,003 2,098 5,905 Customer relationships 6,605 4,836 1,769 Balance as of December 31, 2016 $ 52,668 $ 44,356 $ 8,312 |
Estimated Amortization Expense Succeeding Fiscal Years | As of July 2, 2017, estimated future amortization expense related to intangible assets is as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2017 $ 1,598 2018 3,196 2019 2,821 2020 2,305 2021 2,097 2022 1,691 Thereafter 1,518 $ 15,226 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 6 Months Ended |
Jul. 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 1,456 Fulfillment of warranty obligations (1,249 ) Foreign exchange rate changes 395 Balance as of July 2, 2017 $ 4,937 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Forward Contracts Table | The Company had the following outstanding forward contracts (in thousands): July 2, 2017 December 31, 2016 Currency Notional USD Notional USD Derivatives Designated as Hedging Instruments: Japanese Yen 62,500 $ 627 342,500 $ 2,960 Hungarian Forint — — 39,000 130 Singapore Dollar — — 150 97 Derivatives Not Designated as Hedging Instruments: Japanese Yen 665,000 $ 5,954 650,000 $ 5,554 British Pound 1,690 2,197 1,350 1,658 Korean Won 2,100,000 1,839 1,750,000 1,450 Hungarian Forint 445,000 1,648 425,000 1,448 Singapore Dollar 2,025 1,473 1,350 929 Taiwanese Dollar 29,100 959 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 July 2, 2017 December 31, 2016 Sheet July 2, 2017 December 31, 2016 Derivatives Designated as Hedging Instruments: Cash flow hedge forward contracts Prepaid expenses and other current assets $ 71 $ 43 Accrued expenses $ — $ — Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 45 $ 1 Accrued expenses $ 4 $ 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 July 2, 2017 December 31, 2016 July 2, 2017 December 31, 2016 Gross amounts of recognized assets $ 116 $ 117 Gross amounts of recognized liabilities $ 4 $ 11 Gross amounts offset — (73 ) Gross amounts offset — — Net amount of assets presented $ 116 $ 44 Net amount of liabilities presented $ 4 $ 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 Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ 60 $ (487 ) $ 60 $ (487 ) Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ 9 $ (200 ) $ (46 ) $ (203 ) Research, development, and engineering expenses — 2 3 4 Selling, general, and administrative expenses — 8 8 13 Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations $ 9 $ (190 ) $ (35 ) $ (186 ) Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives) Foreign currency gain (loss) $ — $ — $ — $ — Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 177 $ (705 ) $ 96 $ (1,065 ) |
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 (12 ) Reclassification of net realized loss on cash flow hedges into current operations 35 Balance as of July 2, 2017 $ 60 |
Stock-Based Compensation Expe33
Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jul. 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 six -month period ended July 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 1,937 77.36 Exercised (1,365 ) 25.68 Forfeited or expired (64 ) 43.11 Outstanding as of July 2, 2017 6,941 $ 45.95 7.91 $ 270,790 Exercisable as of July 2, 2017 2,015 $ 27.39 5.85 $ 115,900 Options vested or expected to vest as of July 2, 2017 (1) 6,033 $ 44.28 7.74 $ 245,371 (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 Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Risk-free rate 2.4 % 1.7 % 2.4 % 1.7 % Expected dividend yield 0.39 % 0.84 % 0.39 % 0.84 % Expected volatility 41 % 41 % 41 % 41 % Expected term (in years) 5.2 5.4 5.3 5.5 |
Nonvested Restricted Stock Shares Activity | The following table summarizes the Company's restricted stock activity for the six-month period ended July 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 (10 ) 34.05 825 Forfeited or expired — — Nonvested as of July 2, 2017 10 $ 34.05 $ 849 |
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 Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Cost of revenue $ 454 $ 229 $ 884 $ 522 Research, development, and engineering 2,715 1,397 5,325 3,576 Selling, general, and administrative 4,677 2,831 9,120 7,163 $ 7,846 $ 4,457 $ 15,329 $ 11,261 |
Taxes (Tables)
Taxes (Tables) | 6 Months Ended |
Jul. 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 on continuing operations, or effective tax rate, was as follows: Three-months Ended Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Income tax provision at federal statutory corporate tax rate 35 % 35 % 35 % 35 % State income taxes, net of federal benefit 1 % 1 % 1 % 1 % Foreign tax rate differential (18 )% (18 )% (18 )% (18 )% Tax credit (1 )% (1 )% (1 )% (1 )% Discrete tax benefit related to stock option exercises (9 )% (1 )% (19 )% (2 )% Other 1 % 1 % 1 % 1 % Income tax provision on continuing operations 9 % 17 % (1 )% 16 % |
Weighted-Average Shares (Tables
Weighted-Average Shares (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Weighted-Average Shares | Weighted-average shares were calculated as follows (in thousands): Three-months Ended Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Basic weighted-average common shares outstanding 86,639 85,107 86,480 85,024 Effect of dilutive stock options 2,975 1,699 2,972 1,689 Weighted-average common and common-equivalent shares outstanding 89,614 86,806 89,452 86,713 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The losses included in discontinued operations were as follows (in thousands): Three-months Ended Six-months Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Operating income from discontinued operations $ — $ — $ — $ — Gain (loss) on sale of discontinued operations — (404 ) — (404 ) Income (loss) from discontinued operations before income tax expense (benefit) — (404 ) — (404 ) Income tax expense (benefit) on discontinued operations — (149 ) — (149 ) Net income (loss) from discontinued operations $ — $ (255 ) $ — $ (255 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jul. 02, 2017 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The purchase price was allocated as follows (in thousands): Accounts receivable $ 423 Inventories 120 Prepaid expenses and other current assets 1 Accounts payable (152 ) Accrued expenses (10 ) Completed technologies 910 Customer relationships 2,600 Goodwill 1,476 Purchase price $ 5,368 The purchase price was allocated as follows (in thousands): Cash $ 146 Accounts receivable 425 Prepaid expenses 129 Property, plant, and equipment 40 Accounts payable (98 ) Accrued expenses (716 ) Deferred income tax liability (388 ) Non-compete agreement 370 Completed technologies 4,774 Goodwill 18,333 Purchase price $ 23,015 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 |
Assets: | ||
Money market instruments | $ 3,554 | $ 2,334 |
Financial assets at fair value | 697,060 | |
Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 325,159 | |
Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 152,563 | |
Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 87,260 | |
Euro Liquidity Fund | ||
Assets: | ||
Financial assets at fair value | 79,256 | |
Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 30,933 | |
Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 13,412 | |
Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 8,477 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 3,554 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 0 | |
Cash flow hedge forward contracts | 71 | |
Economic hedge forward contracts | 0 | |
Liabilities: | ||
Economic hedge forward contracts | 4 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 325,159 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 152,563 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 87,260 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Euro Liquidity Fund | ||
Assets: | ||
Financial assets at fair value | 79,256 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 30,933 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 13,412 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 8,477 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration liabilities | $ 3,959 |
Fair Value Measurements - Liabi
Fair Value Measurements - Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Payment of contingent consideration | $ 0 | $ (337) |
Foreign Currency Transaction Gain (Loss), Unrealized | 39 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 4,173 | |
Ending balance | 3,959 | |
EnShape | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Payment of contingent consideration | (1,401) | |
Manatee | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value adjustment to Manatee contingent consideration | (275) | |
Chiaro | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value adjustment to Manatee contingent consideration | 124 | |
GVi | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value adjustment to Chiaro contingent consideration | $ 1,299 |
Cash, Cash Equivalents, and I40
Cash, Cash Equivalents, and Investments (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Cash and Cash Equivalents [Abstract] | ||||
Gross realized gains on sale of investments | $ 55,000 | $ 141,000 | $ 143,000 | $ 225,000 |
Gross realized losses on sale of investments | $ 13,000 | $ 0 | $ 36,000 | $ 97,000 |
Cash, Cash Equivalents, and I41
Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Detail) - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 | Jul. 03, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | $ 64,712 | $ 77,307 | ||
Money market instruments | 3,554 | 2,334 | ||
Cash and cash equivalents | 68,266 | 79,641 | $ 54,929 | $ 51,975 |
Short-term investments | 342,402 | 341,194 | ||
Long-term investments | 354,658 | 324,335 | ||
Total | 765,326 | 745,170 | ||
Treasury Bills | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 97,018 | 67,175 | ||
Long-term investments | 55,545 | 92,280 | ||
Corporate Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 86,000 | 141,188 | ||
Long-term investments | 239,159 | 169,952 | ||
Euro Liquidity Fund | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 79,256 | 46,499 | ||
Asset-Backed Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 42,449 | 69,614 | ||
Long-term investments | 44,811 | 26,946 | ||
Sovereign Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 24,454 | 7,298 | ||
Long-term investments | 6,479 | 23,585 | ||
Agency Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 7,610 | 2,903 | ||
Long-term investments | 5,802 | 10,339 | ||
Municipal Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 5,615 | 6,517 | ||
Long-term investments | $ 2,862 | $ 1,233 |
Cash, Cash Equivalents, and I42
Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Detail) $ in Thousands | Jul. 02, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | $ 696,124 |
Gross unrealized gains | 1,576 |
Gross unrealized losses | (640) |
Fair value | 697,060 |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (326) |
Treasury Bills | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 97,218 |
Gross unrealized gains | 0 |
Gross unrealized losses | (200) |
Fair value | 97,018 |
Treasury Bills | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 55,671 |
Gross unrealized gains | 0 |
Gross unrealized losses | (126) |
Fair value | 55,545 |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (190) |
Corporate Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 85,918 |
Gross unrealized gains | 85 |
Gross unrealized losses | (3) |
Fair value | 86,000 |
Corporate Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 238,417 |
Gross unrealized gains | 929 |
Gross unrealized losses | (187) |
Fair value | 239,159 |
Euro Liquidity Fund | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 78,824 |
Gross unrealized gains | 432 |
Gross unrealized losses | 0 |
Fair value | 79,256 |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (37) |
Asset-Backed Securities | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 42,467 |
Gross unrealized gains | 2 |
Gross unrealized losses | (20) |
Fair value | 42,449 |
Asset-Backed Securities | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 44,733 |
Gross unrealized gains | 95 |
Gross unrealized losses | (17) |
Fair value | 44,811 |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (86) |
Sovereign Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 24,495 |
Gross unrealized gains | 4 |
Gross unrealized losses | (45) |
Fair value | 24,454 |
Sovereign Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 6,519 |
Gross unrealized gains | 1 |
Gross unrealized losses | (41) |
Fair value | 6,479 |
Agency Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (1) |
Agency Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 7,600 |
Gross unrealized gains | 10 |
Gross unrealized losses | 0 |
Fair value | 7,610 |
Agency Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 5,787 |
Gross unrealized gains | 16 |
Gross unrealized losses | (1) |
Fair value | 5,802 |
Municipal Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 5,615 |
Gross unrealized gains | 0 |
Gross unrealized losses | 0 |
Fair value | 5,615 |
Municipal Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 2,860 |
Gross unrealized gains | 2 |
Gross unrealized losses | 0 |
Fair value | $ 2,862 |
Cash, Cash Equivalents, and I43
Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Detail) $ in Thousands | Jul. 02, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | $ 285,915 |
Unrealized losses, less than 12 months | (618) |
Fair value, 12 months or greater | 11,898 |
Unrealized losses, 12 months or greater | (22) |
Total fair value | 297,813 |
Total unrealized losses | (640) |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 143,666 |
Unrealized losses, less than 12 months | (306) |
Fair value, 12 months or greater | 8,897 |
Unrealized losses, 12 months or greater | (20) |
Total fair value | 152,563 |
Total unrealized losses | (326) |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 62,295 |
Unrealized losses, less than 12 months | (190) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 62,295 |
Total unrealized losses | (190) |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 52,141 |
Unrealized losses, less than 12 months | (37) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 52,141 |
Total unrealized losses | (37) |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 24,737 |
Unrealized losses, less than 12 months | (84) |
Fair value, 12 months or greater | 3,001 |
Unrealized losses, 12 months or greater | (2) |
Total fair value | 27,738 |
Total unrealized losses | (86) |
Agency Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 3,076 |
Unrealized losses, less than 12 months | (1) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 3,076 |
Total unrealized losses | $ (1) |
Cash, Cash Equivalents, and I44
Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) $ in Thousands | Jul. 02, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | $ 342,402 |
1-2 years | 199,145 |
2-3 years | 112,609 |
3-4 years | 7,602 |
4-5 years | 32,447 |
5-7 years | 2,855 |
Fair value | 697,060 |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 86,000 |
1-2 years | 112,337 |
2-3 years | 86,773 |
3-4 years | 7,602 |
4-5 years | 32,447 |
5-7 years | 0 |
Fair value | 325,159 |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 97,018 |
1-2 years | 55,545 |
2-3 years | 0 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 152,563 |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 42,449 |
1-2 years | 21,856 |
2-3 years | 20,100 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 2,855 |
Fair value | 87,260 |
Euro Liquidity Fund | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 79,256 |
1-2 years | 0 |
2-3 years | 0 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 79,256 |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 24,454 |
1-2 years | 3,819 |
2-3 years | 2,660 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 30,933 |
Agency Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 7,610 |
1-2 years | 2,726 |
2-3 years | 3,076 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 13,412 |
Municipal Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 5,615 |
1-2 years | 2,862 |
2-3 years | 0 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | $ 8,477 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 23,197 | $ 18,224 |
Work-in-process | 6,970 | 2,760 |
Finished goods | 6,324 | 6,000 |
Inventories | $ 36,491 | $ 26,984 |
Goodwill - Changes in the Carry
Goodwill - Changes in the Carrying Value of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jul. 02, 2017USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 95,280 |
Goodwill, Ending Balance | 115,089 |
ViDi Systems S.A. | |
Goodwill [Line Items] | |
Acquisition of ViDi Systems S.A. | 18,333 |
Acquisition of GVi Ventures, Inc. | 18,333 |
GVi Ventures, Inc. | |
Goodwill [Line Items] | |
Acquisition of ViDi Systems S.A. | 1,476 |
Acquisition of GVi Ventures, Inc. | $ 1,476 |
Intangible Assets - Amortized I
Intangible Assets - Amortized Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 61,322 | $ 52,668 |
Accumulated Amortization | 46,096 | 44,356 |
Net Carrying Value | 15,226 | 8,312 |
Distribution networks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 38,060 | 38,060 |
Accumulated Amortization | 38,060 | 37,422 |
Net Carrying Value | 0 | 638 |
Completed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 13,687 | 8,003 |
Accumulated Amortization | 2,961 | 2,098 |
Net Carrying Value | 10,726 | 5,905 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 9,205 | 6,605 |
Accumulated Amortization | 5,044 | 4,836 |
Net Carrying Value | 4,161 | $ 1,769 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 370 | |
Accumulated Amortization | 31 | |
Net Carrying Value | $ 339 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense Succeeding Fiscal Years (Details) - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of fiscal 2017 | $ 1,598 | |
2,018 | 3,196 | |
2,019 | 2,821 | |
2,020 | 2,305 | |
2,021 | 2,097 | |
2,022 | 1,691 | |
Thereafter | 1,518 | |
Net Carrying Value | $ 15,226 | $ 8,312 |
Warranty Obligations - Changes
Warranty Obligations - Changes in Warranty Obligations (Detail) $ in Thousands | 6 Months Ended |
Jul. 02, 2017USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 4,335 |
Provisions for warranties issued during the period | 1,456 |
Fulfillment of warranty obligations | (1,249) |
Foreign exchange rate changes | 395 |
Ending balance | $ 4,937 |
Derivative Instruments (Detail)
Derivative Instruments (Detail) | 6 Months Ended |
Jul. 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 | Jul. 02, 2017HUF | Jul. 02, 2017GBP (£) | Jul. 02, 2017SGD | Jul. 02, 2017JPY (¥) | Jul. 02, 2017KRW (₩) | Jul. 02, 2017TWD | Jul. 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 | ¥ 62,500 | $ 627 | ¥ 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 | ¥ 665,000 | 5,954 | ¥ 650,000 | 5,554 | ||||||||||
Not Designated as Hedging Instrument | Hungarian Forint | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | HUF 445,000 | 1,648 | HUF 425,000 | 1,448 | ||||||||||
Not Designated as Hedging Instrument | Singapore Dollar | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | SGD 2,025 | 1,473 | SGD 1,350 | 929 | ||||||||||
Not Designated as Hedging Instrument | British Pound | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | £ 1,690 | 2,197 | £ 1,350 | 1,658 | ||||||||||
Not Designated as Hedging Instrument | Korean Won | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | ₩ 2,100,000 | 1,839 | ₩ 1,750,000 | 1,450 | ||||||||||
Not Designated as Hedging Instrument | Taiwanese Dollar | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | TWD 29,100 | $ 959 | TWD 26,000 | $ 802 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Detail) - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 116 | $ 44 |
Derivative liability | 4 | 11 |
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 71 | 43 |
Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | 0 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 45 | 1 |
Not Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 4 | $ 11 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Detail) - USD ($) $ in Thousands | Jul. 02, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized assets | $ 116 | $ 117 |
Gross amounts offset | 0 | (73) |
Net amount of assets presented | 116 | 44 |
Gross amounts of recognized liabilities | 4 | 11 |
Gross amounts offset | 0 | 0 |
Net amount of liabilities presented | $ 4 | $ 11 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations | $ 9 | $ (190) | $ (35) | $ (186) |
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) | 60 | (487) | 60 | (487) |
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) | 9 | (200) | (46) | (203) |
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) | 0 | 2 | 3 | 4 |
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) | 0 | 8 | 8 | 13 |
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 | 0 | 0 |
Not Designated as Hedging Instrument | Foreign Currency Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in current operations | $ 177 | $ (705) | $ 96 | $ (1,065) |
Derivative Instruments - Sche55
Derivative Instruments - Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Detail) | 6 Months Ended |
Jul. 02, 2017USD ($) | |
Accumulated Other Comprehensive Income [Roll Forward] | |
Beginning balance | $ (56,428,000) |
Ending balance | (42,950,000) |
Net gains expected to be reclassified from OCI into Net Income, net of tax, 12 months | (60,000) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |
Accumulated Other Comprehensive Income [Roll Forward] | |
Beginning balance | 37,000 |
Net unrealized loss on cash flow hedges | (12,000) |
Reclassification of net realized loss on cash flow hedges into current operations | 35,000 |
Ending balance | $ 60,000 |
Stock-Based Compensation Expe56
Stock-Based Compensation Expense (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2017USD ($)group$ / sharesshares | Apr. 02, 2017USD ($) | Jul. 03, 2016USD ($)$ / shares | Apr. 03, 2016USD ($) | Jul. 02, 2017USD ($)group$ / sharesshares | Jul. 03, 2016USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected dividend yield | 0.39% | 0.84% | 0.39% | 0.84% | ||
Groups within the employee population | group | 2 | 2 | ||||
Percentage of stock options granted to senior management expected to vest | 75.00% | 75.00% | ||||
Percentage of stock options granted to all other employees expected to vest | 72.00% | 72.00% | ||||
Estimated annual forfeiture rate for unvested options for senior management | 10.00% | 10.00% | ||||
Estimated annual forfeiture rate for unvested options for all other employees | 12.00% | 12.00% | ||||
Increase (decrease) to compensation expense | $ 673,000 | $ 334,000 | ||||
Weighted-average grant-date fair values, in dollars per share | $ / shares | $ 31.01 | $ 12.22 | $ 29.95 | $ 12.25 | ||
Total intrinsic value | $ 19,408,000 | $ 5,652,000 | $ 72,451,000 | $ 9,376,000 | ||
Total fair values of stock options vest | 725,000 | 709,000 | 18,713,000 | 16,045,000 | ||
Unrecognized compensation expense | 48,313,000 | $ 48,313,000 | ||||
Weighted average period to be recognized | 1 year 10 months 21 days | |||||
Stock-based compensation expense | 7,846,000 | 4,457,000 | $ 15,329,000 | 11,261,000 | ||
Tax benefit from compensation expense | 2,583,000 | $ 1,462,000 | 5,022,000 | $ 3,690,000 | ||
Recognized period costs capitalized | $ 0 | $ 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 | 6,205,027 | 6,205,027 | ||||
Expiration period from grant day | 10 years |
Stock-Based Compensation Expe57
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jul. 02, 2017 | Jul. 02, 2017 | |
Shares (in thousands) | ||
Outstanding, shares | 6,433 | |
Granted, shares | 1,937 | |
Exercised, shares | (1,365) | |
Forfeited or expired, shares | (64) | |
Outstanding, shares | 6,941 | |
Exercisable as of reporting date, shares | 2,015 | |
Options vested or expected to vest as of reporting date, shares | 6,033 | |
Weighted- Average Exercise Price | ||
Outstanding, shares | $ 32.16 | |
Granted, in dollars per share | 77.36 | |
Exercised, in dollars per share | 25.68 | |
Forfeited or expired, in dollars per share | 43.11 | |
Outstanding, shares | 45.95 | |
Outstanding | $ 32.16 | $ 45.95 |
Exercisable as of reporting date, Weighted-Average Exercise Price, in dollars per share | 27.39 | |
Weighted- Average Remaining Contractual Term (in years) | $ 44.28 | |
Weighted- Average Remaining Contractual Term (in years) | ||
Outstanding, in years | 7 years 10 months 28 days | |
Exercisable, in years | 5 years 10 months 6 days | |
Options vested or expected to vest, in years | 7 years 8 months 27 days | |
Aggregate Intrinsic Value (in thousands) | ||
Outstanding, in dollars | $ 270,790 | |
Exercisable, in dollars | 115,900 | |
Options vested or expected to vest, in dollars | $ 245,371 |
Stock-Based Compensation Expe58
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Detail) | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Risk-free rate | 2.40% | 1.70% | 2.40% | 1.70% |
Expected dividend yield | 0.39% | 0.84% | 0.39% | 0.84% |
Expected volatility | 41.00% | 41.00% | 41.00% | 41.00% |
Expected term (in years) | 5 years 2 months 12 days | 5 years 4 months 24 days | 5 years 3 months 18 days | 5 years 6 months |
Stock-Based Compensation Expe59
Stock-Based Compensation Expense - Nonvested Restricted Stock Shares Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jul. 02, 2017USD ($)$ / sharesshares | |
Shares (in thousands) | |
Nonvested, shares | shares | 20 |
Granted, shares | shares | 0 |
Vested, shares | shares | (10) |
Forfeited or expired, shares | shares | 0 |
Nonvested, shares | shares | 10 |
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 | 34.05 |
Forfeited or expired, in dollars per share | $ / shares | 0 |
Nonvested, in dollars per share | $ / shares | $ 34.05 |
Aggregate Intrinsic Value (in thousands)(1) | |
Vested | $ | $ 825 |
Nonvested as of July 2, 2017 | $ | $ 849 |
Stock-Based Compensation Expe60
Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 7,846,000 | $ 4,457,000 | $ 15,329,000 | $ 11,261,000 |
Cost of Revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 454,000 | 229,000 | 884,000 | 522,000 |
Research, Development, and Engineering Expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2,715,000 | 1,397,000 | 5,325,000 | 3,576,000 |
Selling, General, and Administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 4,677,000 | $ 2,831,000 | $ 9,120,000 | $ 7,163,000 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 02, 2017 | Apr. 28, 2017 | Aug. 03, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchased during period, Value | $ 62,343,000 | |||
Repurchase Program 2015 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized common stock to be repurchased | $ 100,000,000 | |||
Stock Repurchased During Period, Shares | 1,271,000 | 732,000 | ||
Stock repurchased during period, Value | $ 93,428,000 | $ 62,343,000 | ||
Repurchase Program November 2015 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized common stock to be repurchased | $ 100,000,000 |
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 | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision at federal statutory corporate tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.00% | 1.00% | 1.00% | 1.00% |
Foreign tax rate differential | (18.00%) | (18.00%) | (18.00%) | (18.00%) |
Tax credit | (1.00%) | (1.00%) | (1.00%) | (1.00%) |
Discrete tax benefit related to stock option exercises | (9.00%) | (1.00%) | (19.00%) | (2.00%) |
Other | 1.00% | 1.00% | 1.00% | 1.00% |
Income tax provision on continuing operations | 9.00% | 17.00% | (1.00%) | 16.00% |
Taxes (Detail)
Taxes (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||||
Income tax provision at federal statutory corporate tax rate | 35.00% | 35.00% | 35.00% | 35.00% | |
Decrease in effective tax rate | 18.00% | 18.00% | 18.00% | 18.00% | |
Decrease in effective tax rate for difference between deduction for tax purposes and compensation cost recognized from stock option exercises | 9.00% | 1.00% | 19.00% | 2.00% | |
Increase in reserves for income taxes, net of deferred tax benefit | $ 702,000 | $ 702,000 | |||
Interest and penalties included in reserve | 86,000 | ||||
Liability for uncertain tax positions | 7,150,000 | 7,150,000 | |||
Reserve for income taxes classified as a noncurrent iability | 6,122,000 | 6,122,000 | $ 5,361,000 | ||
Reserve for income taxes classified an noncurrent deferred tax assets | 1,028,000 | 1,028,000 | |||
Interest and penalties, gross | $ 798,000 | 798,000 | |||
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 | ||||
Foreign Tax Authority | Revenue Commissioners, Ireland | |||||
Income Tax Contingency [Line Items] | |||||
Income tax provision at federal statutory corporate tax rate | 12.50% | ||||
Foreign Tax Authority | State Administration of Taxation, China | |||||
Income Tax Contingency [Line Items] | |||||
Income tax provision at federal statutory corporate tax rate | 25.00% | ||||
Domestic Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Income tax provision at federal statutory corporate tax rate | 35.00% |
Weighted-Average Shares (Detail
Weighted-Average Shares (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Earnings Per Share [Abstract] | ||||
Stock options to purchase anti-dilutive common stock | 1,896,132 | 3,904,396 | 1,357,254 | 4,502,777 |
Weighted-Average Shares - Calcu
Weighted-Average Shares - Calculation of Weighted-Average Shares (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average common shares outstanding | 86,639 | 85,107 | 86,480 | 85,024 |
Effect of dilutive stock options | 2,975 | 1,699 | 2,972 | 1,689 |
Weighted-average common and common-equivalent shares outstanding | 89,614 | 86,806 | 89,452 | 86,713 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Revenue and Expenses | ||||
Income (loss) from discontinued operations before income tax expense (benefit) | $ 0 | $ (255) | $ 0 | $ (255) |
SISD | Discontinued Operations, Disposed of by Sale | ||||
Revenue and Expenses | ||||
Operating income from discontinued operations | 0 | 0 | 0 | 0 |
Gain (loss) on sale of discontinued operations | 0 | (404) | 0 | (404) |
Income (loss) from discontinued operations before income tax expense (benefit) | 0 | (404) | 0 | (404) |
Income tax expense (benefit) on discontinued operations | 0 | (149) | 0 | (149) |
Net income (loss) from discontinued operations | $ 0 | $ (255) | $ 0 | $ (255) |
Discontinued Operations (Detail
Discontinued Operations (Details) - SISD - Discontinued Operations, Disposed of by Sale - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jul. 02, 2017 | Jul. 03, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense (benefit) on discontinued operations | $ 0 | $ (149,000) | $ 0 | $ (149,000) |
Net income (loss) from discontinued operations | 0 | $ (255,000) | $ 0 | $ (255,000) |
AMETEK Matter | Guarantee Obligations | Settled Litigation | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Damages awarded, refund of product purchase price | 326,000 | |||
Damages awarded, reimbursement of legal fees | 45,000 | |||
Net settlement | 281,000 | |||
Legal fees | 123,000 | |||
Income tax expense (benefit) on discontinued operations | (149,000) | |||
Net income (loss) from discontinued operations | $ (255,000) |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | Apr. 12, 2017 | Apr. 04, 2017 | Jul. 02, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Equity | $ 1,051,976,000 | $ 962,599,000 | ||
ViDi Systems S.A. | ||||
Business Acquisition [Line Items] | ||||
Total purchase price | $ 23,015,000 | |||
Cash payment | 20,019,000 | |||
Holdback to secure potential claims under agreement | $ 2,996,000 | |||
Holdback limitation period | 18 months | |||
tax deductible goodwill | $ 5,112,000 | |||
ViDi Systems S.A. | Completed technologies | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 6 years | |||
ViDi Systems S.A. | Non-compete agreement | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 3 years | |||
GVi Ventures, Inc. | ||||
Business Acquisition [Line Items] | ||||
Total purchase price | $ 5,368,000 | |||
Cash payment | 4,069,000 | |||
Contingent consideration liabilities | 1,299,000 | 1,299,000 | ||
Contingent consideration, low range | 0 | |||
Contingent consideration, high range | $ 3,500,000 | |||
Contingent consideration, period of recognition (in years) | 5 years | |||
Contingent consideration, current | 274,000 | |||
Contingent consideration, noncurrent | $ 1,025,000 | |||
GVi Ventures, Inc. | Completed technologies | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 5 years | |||
GVi Ventures, Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 8 years |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jul. 02, 2017 | Apr. 12, 2017 | Apr. 04, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 115,089 | $ 95,280 | ||
ViDi Systems S.A. | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 146 | |||
Accounts receivable | 425 | |||
Prepaid expenses and other current assets | 129 | |||
Property, plant, and equipment | 40 | |||
Accounts payable | (98) | |||
Accrued expenses | (716) | |||
Deferred income tax liability | 388 | |||
Goodwill | 18,333 | |||
Purchase price | 23,015 | |||
ViDi Systems S.A. | Non-compete agreement | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 370 | |||
ViDi Systems S.A. | Completed technologies | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 4,774 | |||
GVi Ventures, Inc. | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 423 | |||
Inventories | 120 | |||
Prepaid expenses and other current assets | 1 | |||
Accounts payable | (152) | |||
Accrued expenses | (10) | |||
Goodwill | 1,476 | |||
Purchase price | 5,368 | |||
GVi Ventures, Inc. | Completed technologies | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 910 | |||
GVi Ventures, Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 2,600 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Jul. 31, 2017USD ($) |
Subsequent Event [Line Items] | |
Dividends (in dollars per share) | $ 0.085 |
Dividends payable, date payable | Sep. 1, 2017 |
Dividends payable, date of record | Aug. 18, 2017 |