Cognex (CGNX) 10-Q 31 Jul 17 2017 Q2 Quarterly report Financial data

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