Cognex (CGNX) 10-Q 30 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Apr. 01, 2018shares
Document And Entity Information [Abstract]
Entity Registrant Name	COGNEX CORP
Entity Central Index Key	851,205
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 1, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	172,948,442

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Income Statement [Abstract]
Revenue	$ 169,567	$ 139,039
Cost of revenue	40,198	32,532
Gross margin	129,369	106,507
Research, development, and engineering expenses	31,076	22,770
Selling, general, and administrative expenses	63,697	46,521
Operating income	34,596	37,216
Foreign currency gain (loss)	(134)	(263)
Investment income	3,240	2,012
Other income (expense)	277	270
Income before income tax expense	37,979	39,235
Income tax expense (benefit)	762	(6,236)
Net income	$ 37,217	$ 45,471
Net income per weighted-average common and common-equivalent share:
Basic (in dollars per share)	$ 0.21	$ 0.26
Diluted (in dollars per share)	$ 0.21	$ 0.25
Weighted-average common and common-equivalent shares outstanding:
Basic (in shares)	173,280	172,646
Diluted (in shares)	179,641	178,354
Cash dividends per common share	$ 0.045	$ 0.0375

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 37,217	$ 45,471
Cash flow hedges:
Net unrealized gain (loss), net of tax of $0 and ($4) in 2018 and 2017, respectively	0	(71)
Reclassification of net realized (gain) loss into current operations	0	44
Net change related to cash flow hedges	0	(27)
Available-for-sale investments:
Net unrealized gain (loss), net of tax of ($114) and $92 in 2018 and 2017, respectively	(1,192)	511
Reclassification of net realized (gain) loss into current operations	(22)	(65)
Net change related to available-for-sale investments	(1,214)	446
Foreign currency translation adjustments:
Foreign currency translation adjustments	4,056	2,481
Other comprehensive income (loss), net of tax	2,842	2,900
Total comprehensive income	$ 40,059	$ 48,371

Consolidated Statements of Com4

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Statement of Comprehensive Income [Abstract]
Tax effect on cash flow hedges	$ 0	$ (4)
Tax effect of unrealized gain (loss) on available-for-sale investments	(114)	92
Tax effect of foreign currency translation adjustment	$ 0	$ 0

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 109,572	$ 106,582
Short-term investments	337,629	297,961
Accounts receivable, less reserves of $1,664 and $1,568 in 2018 and 2017, respectively	96,649	119,388
Unbilled revenue	4,232	7,454
Inventories	96,399	67,923
Prepaid expenses and other current assets	26,068	30,683
Total current assets	670,549	629,991
Long-term investments	356,181	423,441
Property, plant, and equipment, net	85,205	78,048
Goodwill	113,208	113,208
Intangible assets, net	12,420	13,189
Deferred income taxes	29,135	27,385
Other assets	2,217	2,491
Total assets	1,268,915	1,287,753
Current liabilities:
Accounts payable	29,136	23,463
Accrued expenses	56,463	68,249
Accrued income taxes	11,915	11,503
Deferred revenue and customer deposits	15,504	9,420
Total current liabilities	113,018	112,635
Deferred income taxes	319	312
Reserve for income taxes	6,958	6,488
Accrued income taxes	66,741	66,741
Other non-current liabilities	4,780	5,904
Total liabilities	191,816	192,080
Shareholders’ equity:
Common stock, $.002 par value – Authorized: 200,000 shares in 2018 and 2017, respectively, issued and outstanding: 172,948 and 173,507 shares in 2018 and 2017, respectively	346	347
Additional paid-in capital	485,654	461,338
Retained earnings	622,856	668,587
Accumulated other comprehensive loss, net of tax	(31,757)	(34,599)
Total shareholders’ equity	1,077,099	1,095,673
Total liabilities and shareholders' equity	$ 1,268,915	$ 1,287,753

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Reserves for accounts receivable	$ 1,664	$ 1,568
Common stock, par value	$ 0.002	$ 0.002
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	172,948,000	173,507,000
Common stock, shares outstanding	172,948,000	173,507,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Cash flows from operating activities:
Net income	$ 37,217	$ 45,471
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	13,194	7,483
Depreciation of property, plant, and equipment	4,430	3,083
Amortization of intangible assets	769	872
Amortization of discounts or premiums on investments	56	86
Realized (gain) loss on sale of investments	(22)	(65)
Revaluation of contingent consideration	(442)	(275)
Change in deferred income taxes	(1,469)	921
Change in operating assets and liabilities:
Accounts receivable	24,830	(2,238)
Unbilled revenue	3,389	953
Inventories	(27,321)	(5,386)
Prepaid expenses and other current assets	(866)	(12,461)
Accounts payable	5,309	7,167
Accrued expenses	(9,927)	(3,398)
Accrued income taxes	186	397
Deferred revenue and customer deposits	5,877	5,839
Other	(424)	(734)
Net cash provided by operating activities	54,786	47,715
Cash flows from investing activities:
Purchases of investments	(118,108)	(193,612)
Maturities and sales of investments	144,337	171,667
Purchases of property, plant, and equipment	(13,270)	(6,095)
Cash paid for acquisition of business	0	(176)
Cash paid related to discontinued business	0	(291)
Net cash provided by (used in) investing activities	12,959	(28,507)
Cash flows from financing activities:
Issuance of common stock under stock plans	11,123	29,139
Repurchase of common stock	(69,202)	(30,067)
Payment of dividends	(7,787)	(6,497)
Net cash provided by (used in) financing activities	(65,866)	(7,425)
Effect of foreign exchange rate changes on cash and cash equivalents	1,111	1,004
Net change in cash and cash equivalents	2,990	12,787
Cash and cash equivalents at beginning of period	106,582	79,641
Cash and cash equivalents at end of period	$ 109,572	$ 92,428

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Adjustment as a result of the adoption of ASU 2016-16 Income Taxes - Intra-Entity Transfers Other than Inventory (Note 12)	$ (5,961)			$ (5,961)
Beginning Balance, Shares at Dec. 31, 2017	173,507	173,507
Beginning Balance at Dec. 31, 2017	$ 1,095,673	$ 347	$ 461,338	668,587	$ (34,599)
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under stock plans, shares		697
Issuance of common stock under stock plans	11,123	$ 1	11,122
Repurchase of common stock (in shares)		(1,256)
Repurchase of common stock	(69,202)	$ (2)		(69,200)
Stock-based compensation expense	13,194		13,194
Payment of dividends	(7,787)			(7,787)
Net income	37,217			37,217
Net unrealized gain (loss) on available-for-sale investments, net of tax of ($114)	(1,192)				(1,192)
Reclassification of net realized (gain) loss on the sale of available-for-sale investments	(22)				(22)
Foreign currency translation adjustment	$ 4,056				4,056
Ending Balance, Shares at Apr. 01, 2018	172,948	172,948
Ending Balance at Apr. 01, 2018	$ 1,077,099	$ 346	$ 485,654	$ 622,856	$ (31,757)

Consolidated Statement of Shar9

Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Statement of Stockholders' Equity [Abstract]
Tax effect of unrealized gain (loss) on available-for-sale investments	$ (114)	$ 92

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Apr. 01, 2018
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). As a result of the adoption of ASC 606 "Revenue from Contracts with Customers," Cognex Corporation (the "Company") has provided new disclosures related to revenue recognition 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, 2017 for a full description of other 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, necessary to present fairly the Company’s financial position as of April 1, 2018 , and the results of its operations for the three-month periods ended April 1, 2018 and April 2, 2017 , and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented. The results disclosed in the Consolidated Statements of Operations for the three-month period ended April 1, 2018 are not necessarily indicative of the results to be expected for the full year. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers.” The core principle of ASC 606 is to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The framework in support of this core principle includes: (1) identifying the contract with the customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations; and (5) recognizing revenue when (or as) the performance obligations are satisfied. Identifying the Contract with the Customer The Company identifies contracts with customers as agreements that create enforceable rights and obligations, which typically take the form of customer contracts or purchase orders. Identifying the Performance Obligations in the Contract The Company identifies performance obligations as promises in contracts to transfer distinct goods or services. Standard products and services that the Company regularly sells separately are accounted for as distinct performance obligations. Application-specific customer solutions that are comprised of a combination of products and services are accounted for as one performance obligation to deliver a total solution to the customer. These solutions are provided to customers in a variety of industries, including the consumer electronics, logistics, and automotive industries. Shipping and handling activities for which the Company is responsible under the terms and conditions of the sale are not accounted for as performance obligations but as fulfillment costs. These activities are required to fulfill the Company’s promise to transfer the good and are expensed when revenue is recognized. The Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract. If revenue is recognized before immaterial promises have been completed, then the costs related to such immaterial promises are accrued at the time of sale. Determining the Transaction Price The Company determines the transaction price as the amount of consideration it expects to receive in exchange for transferring promised goods or services to the customer. Amounts collected from customers for sales taxes are excluded from the transaction price. If a contract includes a variable amount, such as a rebate, then the Company estimates the transaction price using either the expected value or the most likely amount of consideration to be received, depending upon the specific facts and circumstances. The Company includes estimated variable consideration in the transaction price only to the extent it is probable that a significant reversal of revenue will not occur when the uncertainty is resolved. The Company updates its estimate of variable consideration at the end of each reporting period to reflect changes in facts and circumstances. Allocating the Transaction Price to the Performance Obligations The Company allocates the transaction price to each performance obligation at contract inception based on a relative stand-alone selling price basis, or the price at which the Company would sell the good or service separately to similar customers in similar circumstances. Recognizing Revenue When (or As) the Performance Obligations are Satisfied The Company recognizes revenue when it transfers the promised goods or services to the customer. Revenue for standard products is recognized at the point in time when the customer obtains control of the goods, which is typically upon delivery when the customer has legal title, physical possession, the risks and rewards of ownership, and an enforceable obligation to pay for the products. Revenue for services, which are not material, are typically recognized over the time the services are provided. Revenue for application-specific customer solutions is recognized at the point in time when the solution is validated, which is the point in time when the Company can objectively determine that the agreed-upon specifications in the contract have been met and the customer will accept the performance obligations in the arrangement. Although the customer may have taken legal title and physical possession of the goods when they arrived at the customer’s designed site, the significant risks and rewards of ownership transfer to the customer only upon validation. In certain instances, an arrangement may include customer-specified acceptance provisions or performance guarantees that allow the customer to accept or reject delivered products that do not meet the customer’s specifications. If the Company can objectively determine that control of a good or service has been transferred to the customer in accordance with the agreed-upon specifications in the contract, then customer acceptance is a formality. If acceptance provisions are presumed to be substantive, then revenue is deferred until customer acceptance. For the Company’s standard products and services, revenue recognition and billing typically occur at the same time. For application-specific customer solutions, however, the agreement with the customer may provide for billing terms which differ from revenue recognition criteria, resulting in either deferred revenue or unbilled revenue. Credit assessments are performed to determine payment terms, which vary by region, industry, and customer. Prepayment terms result in contract liabilities for customer deposits. When credit is granted to customers, payment is typically due 30 to 90 days from billing. The Company's contracts have an original expected duration of less than one year, and therefore as a practical expedient, the Company has elected to ignore the impact of the time value of money on a contract and to expense sales commissions. The Company recognizes an asset for costs to fulfill a contract if the costs relate directly to the contract and to future performance, and the costs are expected to be recovered. Management exercises judgment when determining the amount of revenue to be recognized each period. Such judgments include, but are not limited to, assessing the customer’s ability and intention to pay substantially all of the contract consideration when due, determining when two or more contracts should be combined and accounted for as a single contract, determining whether a contract modification has occurred, assessing whether promises are immaterial in the context of the contract, determining whether material promises in a contract represent distinct performance obligations, estimating the transaction price for a contract that contains variable consideration, determining the stand-alone selling price of each performance obligation, determining whether control is transferred over time or at a point in time for performance obligations, and assessing whether formal customer acceptance provisions are substantive.

New Pronouncements

New Pronouncements	3 Months Ended
	Apr. 01, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Pronouncements	New Pronouncements 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 implementing this Update. As of the date of this report, management has determined the scope of leases subject to the new accounting requirements and has selected a software package to assist with compliance. Management is in the process of drafting the internal accounting lease policy and designing the related processes and internal controls. 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) 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 the change in accounting principle. Early adoption is permitted, including adoption in an interim period. Management does not expect ASU 2017-08 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2017-12, "Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities" ASU 2017-12 applies to all reporting entities that elect to apply hedge accounting. The hedge accounting requirements under current GAAP sometimes do not permit an entity to properly recognize the economic results of the hedging strategy in the financial statements, and they are difficult to understand and interpret. The amendments in this Update make certain targeted improvements to simplify the application of the hedge accounting guidance. Also, they better align the risk management activities and financial reporting for hedging relationships through changes to both 1) the designation and measurement guidance for qualifying hedging relationships and 2) the presentation of hedge results. For public companies, the amendments in ASU 2017-12 are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods. Early adoption is permitted including adoption in any interim period after issuance of the Update. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. Management does not expect ASU 2017-12 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2018-1, "Land Easement Practical Expedient for Transition to Topic 842" ASU 2018-01 applies to entities with land easements that exist or expired before an entity’s adoption of Topic 842, provided that the entity does not account for those land easements as leases under Topic 840. The amendments in this Update permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. The amendments in this Update affect the amendments in Update 2016-02, which are not yet effective but may be early adopted. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update 2016-02, which is for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Management is in the process of evaluating the impact of this Update. Accounting Standards Update (ASU) 2018-2, "Income Statement - Reporting Comprehensive Income" ASU 2018-02 applies to entities required to apply the provisions of Topic 220, Income Statement - Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires the effect of a change in tax laws or rates to be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Management does not expect ASU 2018-2 to have a material impact on the Company's financial statements and disclosures.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 01, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of April 1, 2018 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 7,958 — $ — Corporate bonds — 380,621 — Treasury bills — 142,299 — Asset-backed securities — 131,678 — Sovereign bonds — 22,780 — Municipal bonds — 10,501 — Agency bonds — 5,931 — Cash flow hedge forward contracts — — — Economic hedge forward contracts — 4 — Liabilities: Cash flow hedge forward contracts — — — Economic hedge forward contracts — 18 — Contingent consideration liabilities — — 3,115 The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1. The Company’s debt securities and forward contracts are reported at fair value based upon model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial assets and liabilities, and in doing so, considers valuations provided by a large, third-party pricing service. For debt securities, this service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks. The Company did not record an other-than-temporary impairment of these financial assets during the three -month period ended April 1, 2018 . 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. The fair values of these contingent consideration liabilities were calculated using discount rates consistent with the level of risk of achievement, and are remeasured each reporting period with changes in fair value recorded in "Other income (expense)" on the Consolidated Statements of Operations. The following table summarizes the activity for the Company's liabilities measured at fair value using Level 3 inputs for the three-month period ended April 1, 2018 (in thousands): Balance as of December 31, 2017 $ 3,557 Fair value adjustment to Manatee contingent consideration (675 ) Fair value adjustment to Chiaro contingent consideration 52 Fair value adjustment to GVi contingent consideration 181 Balance as of April 1, 2018 $ 3,115 Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis Non-financial assets such as property, plant and equipment, goodwill, and intangible assets are required to be measured at fair value only when an impairment loss is recognized. The Company did not record an impairment charge related to these assets during the three -month period ended April 1, 2018 .

Cash, Cash Equivalents, and Inv

Cash, Cash Equivalents, and Investments	3 Months Ended
	Apr. 01, 2018
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Investments	Cash, Cash Equivalents, and Investments Cash, cash equivalents, and investments consisted of the following (in thousands): April 1, 2018 December 31, 2017 Cash $ 101,614 $ 97,951 Money market instruments 7,958 8,631 Cash and cash equivalents 109,572 106,582 Treasury bills 138,695 150,371 Corporate bonds 108,313 47,395 Asset-backed securities 75,432 59,203 Municipal bonds 9,153 8,805 Sovereign bonds 6,036 21,579 Agency bonds — 10,608 Short-term investments 337,629 297,961 Corporate bonds 272,308 296,014 Asset-backed securities 56,246 71,727 Sovereign bonds 16,744 13,147 Agency bonds 5,931 14,890 Treasury bills 3,604 23,459 Municipal bonds 1,348 4,204 Long-term investments 356,181 423,441 $ 803,382 $ 827,984 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; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; municipal bonds consist of debt securities issued by state and local government entities; sovereign bonds consist of direct debt issued by foreign governments; and agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing. All securities are denominated in U.S. Dollars. The following table summarizes the Company’s available-for-sale investments as of April 1, 2018 (in thousands): Amortized Gross Gross Fair Value Short-term: Treasury bills $ 139,159 $ — $ (464 ) $ 138,695 Corporate bonds 108,533 50 (270 ) 108,313 Asset-backed securities 75,710 5 (283 ) 75,432 Municipal bonds 9,165 — (12 ) 9,153 Sovereign bonds 6,040 1 (5 ) 6,036 Long-term: Corporate bonds 272,345 797 (834 ) 272,308 Asset-backed securities 56,573 14 (341 ) 56,246 Sovereign bonds 16,779 38 (73 ) 16,744 Agency bonds 5,930 1 — 5,931 Treasury bills 3,601 3 — 3,604 Municipal bonds 1,360 — (12 ) 1,348 $ 695,195 $ 909 $ (2,294 ) $ 693,810 The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 1, 2018 (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 Corporate bonds $ 172,162 $ (812 ) $ 23,693 $ (292 ) $ 195,855 $ (1,104 ) Treasury bills 96,209 (277 ) 42,487 (187 ) 138,696 (464 ) Asset-backed securities 112,632 (614 ) 2,640 (10 ) 115,272 (624 ) Sovereign bonds 3,599 (9 ) 8,730 (69 ) 12,329 (78 ) Municipal bonds 4,196 (24 ) — — 4,196 (24 ) Agency bonds — — — — — — $ 388,798 $ (1,736 ) $ 77,550 $ (558 ) $ 466,348 $ (2,294 ) As of April 1, 2018 , 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 $33,000 , respectively, during the three-month period ended April 1, 2018 and $88,000 and $23,000 , respectively, during the three-month period ended April 2, 2017 . These gains and losses are included in "Investment income" on the Consolidated Statement of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, are recorded in shareholders’ equity as other comprehensive income (loss). The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 1, 2018 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Corporate bonds $ 108,313 $ 116,223 $ 97,412 $ 36,342 $ 18,961 $ 3,370 $ 380,621 Treasury bills 138,695 3,604 — — — — 142,299 Asset-backed securities 75,432 35,411 6,923 6,504 2,336 5,072 131,678 Sovereign bonds 6,036 10,995 5,749 — — — 22,780 Municipal bonds 9,153 — 1,348 — — — 10,501 Agency bonds — — — — 5,931 — 5,931 $ 337,629 $ 166,233 $ 111,432 $ 42,846 $ 27,228 $ 8,442 $ 693,810

Inventories

Inventories	3 Months Ended
	Apr. 01, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following (in thousands): April 1, 2018 December 31, 2017 Raw materials $ 42,759 $ 33,927 Work-in-process 2,192 2,114 Finished goods 51,448 31,882 $ 96,399 $ 67,923

Intangible Assets

Intangible Assets	3 Months Ended
	Apr. 01, 2018
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 4,791 8,896 Customer relationships 8,607 5,330 3,277 Non-compete agreements 370 123 247 Balance as of April 1, 2018 $ 60,724 $ 48,304 $ 12,420 Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 13,687 4,181 9,506 Customer relationships 8,607 5,202 3,405 Non-compete agreements 370 92 278 Balance as of December 31, 2017 $ 60,724 $ 47,535 $ 13,189 As of April 1, 2018, estimated future amortization expense related to intangible assets is as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2018 $ 2,307 2019 2,701 2020 2,185 2021 2,017 2022 1,691 2023 989 Thereafter 530 $ 12,420

Warranty Obligations

Warranty Obligations	3 Months Ended
	Apr. 01, 2018
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, 2017 $ 4,701 Provisions for warranties issued during the period 697 Fulfillment of warranty obligations (802 ) Foreign exchange rate changes 116 Balance as of April 1, 2018 $ 4,712

Derivative Instruments

Derivative Instruments	3 Months Ended
	Apr. 01, 2018
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 the Company's budgeted revenues and expenses against foreign currency exchange rate changes compared to its budgeted rates. These cash flow hedges are designated as hedging instruments for hedge accounting treatment. The Company had the following outstanding forward contracts (in thousands): April 1, 2018 December 31, 2017 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Japanese Yen 565,000 $ 5,299 455,000 $ 4,049 Swiss Franc 1,600 2,072 1,365 1,401 British Pound 1,300 1,824 1,650 2,232 Hungarian Forint 400,000 1,576 545,000 2,110 Taiwanese Dollar 43,000 1,480 37,725 1,278 Korean Won 655,000 616 1,825,000 1,708 Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): Asset Derivatives Liability Derivatives Balance Fair Value Balance Fair Value Sheet April 1, 2018 December 31, 2017 Sheet April 1, 2018 December 31, 2017 Derivatives Designated as Hedging Instruments: Cash flow hedge forward contracts Prepaid expenses and other current assets $ — $ — Accrued expenses $ — $ — Economic hedge forward contracts Prepaid expenses and other current assets $ 4 $ 16 Accrued expenses $ 18 $ 13 The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands): Asset Derivatives Liability Derivatives April 1, 2018 December 31, 2017 April 1, 2018 December 31, 2017 Gross amounts of recognized assets $ 4 $ 16 Gross amounts of recognized liabilities $ 18 $ 13 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 4 $ 16 Net amount of liabilities presented $ 18 $ 13 Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended April 1, 2018 April 2, 2017 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ — $ 10 Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ — $ (55 ) Research, development, and engineering expenses — 3 Selling, general, and administrative expenses — 8 Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations $ — $ (44 ) 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) $ (310 ) $ (81 )

Revenue Recognition

Revenue Recognition	3 Months Ended
	Apr. 01, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Codification (ASC) 606, "Revenue from Contracts with Customers," using the full retrospective method to present all periods reported on a consistent basis. Accordingly, prior-period results have been restated to apply the provisions of this ASC. As a result of this adoption, revenue for software-only products sold as part of multiple-deliverable arrangements are no longer deferred when vendor-specific objective evidence of fair value does not exist for the undelivered elements of the arrangement. This change results in earlier recognition of revenue. In addition, certain of the Company’s product accessory sales, which were reported on a net basis, are now 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 results 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 do not change. Furthermore, for arrangements that include customer-specified acceptance criteria, revenue is recognized when the Company 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 primarily impacts revenue recognition for arrangements in the logistics industry where certain customer solutions include installed ID products and results in earlier recognition of revenue. The adoption of the standard impacted our previously-reported results as follows (in thousands): Statement of Operations Three-months ended April 2, 2017 As previously reported Adjustment As restated Revenue $ 134,942 $ 4,097 $ 139,039 Cost of revenue 28,225 4,307 32,532 Gross margin 106,717 (210 ) 106,507 Operating income 37,426 (210 ) 37,216 Income before income tax expense 39,445 (210 ) 39,235 Income tax expense (benefit) (6,210 ) (26 ) (6,236 ) Net income $ 45,655 $ (184 ) $ 45,471 Net income per weighted-average common and common-equivalend share: Basic $ 0.26 $ — $ 0.26 Diluted $ 0.26 $ (0.01 ) $ 0.25 Balance Sheet December 31, 2017 As previously reported Adjustment As restated Prepaid expenses and other current assets $ 30,800 $ (117 ) $ 30,683 Accrued income taxes 11,391 112 11,503 Deferred revenue and customer deposits 9,969 (549 ) 9,420 Retained earnings 668,267 320 668,587 The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands): Three-months ended April 1, 2018 April 2, 2017 Americas $ 59,217 $ 42,540 Europe 56,203 43,107 Greater China 27,159 22,706 Other Asia 26,988 30,686 $ 169,567 $ 139,039 The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months ended April 1, 2018 April 2, 2017 Standard products and services $ 158,399 $ 133,017 Application-specific customer solutions 11,168 6,022 $ 169,567 $ 139,039 Costs to Fulfill a Contract Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $4,615,000 and $3,230,000 as of April 1, 2018 and December 31, 2017, respectively. Accounts Receivable, Contract Assets, and Contract Liabilities Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains reserves against its accounts receivable for potential credit losses. Credit losses recognized on accounts receivable were immaterial for the three-month periods ended April 1, 2018 and April 2, 2017, respectively. Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing for certain application-specific customer solutions contracts. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition. The following table summarizes the deferred revenue and customer deposits activity for the three-month period ended April 1, 2018 (in thousands): Amount Balance as of December 31, 2017 $ 9,420 Increases to deferred revenue and customer deposits 11,751 Recognition of revenue (5,875 ) Foreign exchange rate changes 208 Balance as of April 1, 2018 $ 15,504 As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations, as our contracts have an original expected duration of less than one year.

Stock-Based Compensation Expens

Stock-Based Compensation Expense	3 Months Ended
	Apr. 01, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Expense	Stock-Based Compensation Expense The Company’s share-based payments that result in compensation expense consist of stock option grants and restricted stock awards. As of April 1, 2018 , the Company had 10,160,452 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 or five 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 not be less than one year and three years, respectively; however, awards with time-based vesting may become vested incrementally over such three-year period. The following table summarizes the Company’s stock option activity for the three -month period ended April 1, 2018 : Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 12,726 $ 25.24 Granted 2,043 56.44 Exercised (697 ) 15.96 Forfeited or expired (68 ) 25.84 Outstanding as of April 1, 2018 14,004 $ 30.25 7.9 $ 317,169 Exercisable as of April 1, 2018 4,879 $ 19.88 6.5 $ 156,676 Options vested or expected to vest as of April 1, 2018 (1) 12,377 $ 28.99 7.8 $ 294,379 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: Three-months Ended April 1, 2018 April 2, 2017 Risk-free rate 2.9 % 2.4 % Expected dividend yield 0.32 % 0.39 % Expected volatility 39 % 41 % Expected term (in years) 5.3 5.3 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 applies an estimated annual forfeiture rate of 8% to all unvested options for senior management and a rate of 12% for all other employees. The Company revised its estimated forfeiture rates in the three-month period ended April 1, 2018, resulting in an increase to compensation expense of $1,283,000 . The Company also revised its estimated forfeiture rates in the three-month period ended April 2, 2017, resulting in an decrease to compensation expense of $673,000 . The weighted-average grant-date fair values of stock options granted during the three-month periods ended April 1, 2018 and April 2, 2017 were $21.62 and $14.95 , respectively. The total intrinsic values of stock options exercised for the three-month periods ended April 1, 2018 and April 2, 2017 were $28,088,000 and $53,043,000 , respectively. The total fair values of stock options vested for the three-month periods ended April 1, 2018 and April 2, 2017 were $25,674,000 and $17,987,000 , respectively. As of April 1, 2018 , total unrecognized compensation expense related to non-vested stock options was $63,749,000 , which is expected to be recognized over a weighted-average period of 2.02 years. The following table summarizes the Company's restricted stock activity for the three-month period ended April 1, 2018 : Shares (in thousands) Weighted-Average Grant Fair Value Aggregate Intrinsic Value (in thousands)(1) Nonvested as of December 31, 2017 20 $ 17.03 Granted — — Vested — — Forfeited or expired — — Nonvested as of April 1, 2018 20 $ 17.03 $ 1,040 (1) Fair market value as of April 1, 2018 . The fair values of restricted stock awards granted were determined based upon the market value of the Company's common stock at the time of grant. The initial cost is then amortized over the period of vesting until the restrictions lapse. These restricted shares will be fully vested in 2018. Participants are entitled to dividends on restricted stock awards, but only receive those amounts if the shares vest. The sale or transfer of these shares is restricted during the vesting period. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended April 1, 2018 were $13,194,000 and $2,347,000 , respectively, and for the three-month period ended April 2, 2017 were $7,483,000 and $2,439,000 , respectively. No compensation expense was capitalized as of April 1, 2018 or December 31, 2017 . The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Three-months Ended April 1, 2018 April 2, 2017 Cost of revenue $ 797 $ 430 Research, development, and engineering 4,815 2,610 Selling, general, and administrative 7,582 4,443 $ 13,194 $ 7,483

Stock Repurchase Program

Stock Repurchase Program	3 Months Ended
	Apr. 01, 2018
Equity [Abstract]
Stock Repurchase Program	Stock Repurchase Program In April 2017, the Company's Board of Directors authorized the repurchase of $100,000,000 of the Company's common stock. As of April 1, 2018, the Company repurchased 1,744,000 shares at a cost of $100,000,000 under this program, including 803,000 shares at a cost of $45,200,000 in the three-month period ended April 1, 2018. Stock repurchases under this April 2017 program are now complete. In February 2018, the Company's Board of Directors authorized the repurchase of an additional $150,000,000 of the Company's common stock. As of April 1, 2018, the Company repurchased 453,000 shares at a cost of $24,002,000 under this program, leaving a remaining authorized balance of $125,998,000 . Total stock repurchases for the three-month period ended April 1, 2018 amounted to $69,202,000 . The Company may repurchase shares under this program in future periods depending upon a variety of factors, including, among other things, the impact of dilution from employee stock options, stock price, share availability, and cash requirements.

Taxes

Taxes	3 Months Ended
	Apr. 01, 2018
Income Tax Disclosure [Abstract]
Taxes	Taxes A reconciliation of the United States federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows: Three-months Ended April 1, 2018 April 2, 2017 Income tax provision at federal statutory corporate tax rate 21 % 35 % State income taxes, net of federal benefit 1 % 1 % Foreign tax rate differential (7 )% (18 )% Tax credit (1 )% (1 )% Discrete tax benefit related to stock option exercises (13 )% (33 )% Other discrete tax events — % (1 )% Other 1 % 1 % Income tax provision 2 % (16 )% On December 22, 2017, the United States Congress passed and the President signed into law the Tax Act. The Tax Act included a decrease in the U.S. federal statutory corporate tax rate from 35% to 21% , a one-time transition tax on unrepatriated foreign earnings, and limits on certain deductions. The Company made what it considers to be a reasonable estimate of the impact of the Tax Act in its financial statements for the year ended December 31, 2017. The Company has not recorded any changes to this estimate for the three-month period ended April 1, 2018. The Securities and Exchange Commission (SEC) released Staff Accounting Bulletin (SAB) No. 118 to provide guidance to companies on how to implement the accounting and disclosure changes as a result of the Tax Act. The SEC staff guidance has recognized that, due to the complexity and timing of the release of the Tax Act, the accounting for this change in the law may be incomplete upon issuance of a company's financial statements. This significant estimate is highly judgmental and changes to this estimate could result in material charges or credits in future reporting periods. U.S. Treasury regulations and administrative guidance have not been finalized as of the date of these financial statements. The issuance of final regulations may require the Company to revise its estimates of earnings and profits, as well as certain deferred taxes as required. The Tax Act subjects the Company to current tax on Global Intangible Low-Taxed Income (GILTI) earned by certain foreign subsidiaries. The Company can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. As of the date of this report, the Company is still evaluating the guidance and has not made a policy election related to the treatment of the GILTI tax. The Company will continue to gather and analyze information on historical unrepatriated foreign earnings and to monitor state laws relating to this income to finalize both the federal and state tax impact. The majority of income earned outside of the United States is indefinitely 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 21% . 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, although the reduced taxes overseas have been partially offset by changes in U.S. tax law. These differences resulted in a decrease in the effective tax rate by 7 and 18 percentage points for the three-month periods ended April 1, 2018 and April 2, 2017, respectively. The excess tax benefit arising from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes from stock option exercises resulted in a decrease of the effective tax rate by 13 and 33 percentage points for the three-month periods ended April 1, 2018 and April 2, 2017, respectively. On January 1, 2018, the Company adopted Accounting Standard Update (ASU) 2016-16, "Income Taxes - Intra-Entity Transfers of Assets Other than Inventory." This Update requires the recognition of deferred income taxes for an intra-entity transfer of an asset other than inventory. As a result of this ASU, the Company recorded $5,961,000 through a cumulative-effect adjustment directly to retained earnings at the beginning of fiscal year 2018. During the three -month period ended April 1, 2018 , the Company recorded a $484,000 increase in reserves for income taxes, net of deferred tax benefit. Estimated interest and penalties included in these amounts totaled $70,000 for the three -month period ended April 1, 2018 . The Company’s reserve for income taxes, including gross interest and penalties, was $7,986,000 as of April 1, 2018 , which included $6,958,000 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 $847,000 . 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 $1,100,000 to $1,200,000 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. Within the United States, the tax years 2014 through 2017 remain open to examination by the Internal Revenue Service and various state tax authorities. The tax years 2013 through 2017 remain open to examination by various taxing authorities in other jurisdictions in which the Company operates.

Weighted-Average Shares

Weighted-Average Shares	3 Months Ended
	Apr. 01, 2018
Earnings Per Share [Abstract]
Weighted-Average Shares	Weighted-Average Shares Weighted-average shares were calculated as follows (in thousands): Three-months Ended April 1, 2018 April 2, 2017 Basic weighted-average common shares outstanding 173,280 172,646 Effect of dilutive stock options 6,361 5,708 Weighted-average common and common-equivalent shares outstanding 179,641 178,354 Stock options to purchase 1,339,000 and 1,648,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month periods ended April 1, 2018 and April 2, 2017, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive.

Subsequent Events

Subsequent Events	3 Months Ended
	Apr. 01, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 25, 2018, the Company's shareholders approved an amendment to the Company's Articles of Organization to increase the authorized number of shares of common stock from 200,000,000 to 300,000,000 . In addition, on April 25, 2018, the Company's shareholders approved an amendment and restatement of the Company's 2001 General Stock Option Plan which provides for an increase in the number of available shares by 10,000,000 . On April 30, 2018, the Company’s Board of Directors declared a cash dividend of $0.045 per share. The dividend is payable June 1, 2018 to all shareholders of record as of the close of business on May 18, 2018 .

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 01, 2018
Accounting Policies [Abstract]
Revenue Recognition	The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, “Revenue from Contracts with Customers.” The core principle of ASC 606 is to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The framework in support of this core principle includes: (1) identifying the contract with the customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations; and (5) recognizing revenue when (or as) the performance obligations are satisfied. Identifying the Contract with the Customer The Company identifies contracts with customers as agreements that create enforceable rights and obligations, which typically take the form of customer contracts or purchase orders. Identifying the Performance Obligations in the Contract The Company identifies performance obligations as promises in contracts to transfer distinct goods or services. Standard products and services that the Company regularly sells separately are accounted for as distinct performance obligations. Application-specific customer solutions that are comprised of a combination of products and services are accounted for as one performance obligation to deliver a total solution to the customer. These solutions are provided to customers in a variety of industries, including the consumer electronics, logistics, and automotive industries. Shipping and handling activities for which the Company is responsible under the terms and conditions of the sale are not accounted for as performance obligations but as fulfillment costs. These activities are required to fulfill the Company’s promise to transfer the good and are expensed when revenue is recognized. The Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract. If revenue is recognized before immaterial promises have been completed, then the costs related to such immaterial promises are accrued at the time of sale. Determining the Transaction Price The Company determines the transaction price as the amount of consideration it expects to receive in exchange for transferring promised goods or services to the customer. Amounts collected from customers for sales taxes are excluded from the transaction price. If a contract includes a variable amount, such as a rebate, then the Company estimates the transaction price using either the expected value or the most likely amount of consideration to be received, depending upon the specific facts and circumstances. The Company includes estimated variable consideration in the transaction price only to the extent it is probable that a significant reversal of revenue will not occur when the uncertainty is resolved. The Company updates its estimate of variable consideration at the end of each reporting period to reflect changes in facts and circumstances. Allocating the Transaction Price to the Performance Obligations The Company allocates the transaction price to each performance obligation at contract inception based on a relative stand-alone selling price basis, or the price at which the Company would sell the good or service separately to similar customers in similar circumstances. Recognizing Revenue When (or As) the Performance Obligations are Satisfied The Company recognizes revenue when it transfers the promised goods or services to the customer. Revenue for standard products is recognized at the point in time when the customer obtains control of the goods, which is typically upon delivery when the customer has legal title, physical possession, the risks and rewards of ownership, and an enforceable obligation to pay for the products. Revenue for services, which are not material, are typically recognized over the time the services are provided. Revenue for application-specific customer solutions is recognized at the point in time when the solution is validated, which is the point in time when the Company can objectively determine that the agreed-upon specifications in the contract have been met and the customer will accept the performance obligations in the arrangement. Although the customer may have taken legal title and physical possession of the goods when they arrived at the customer’s designed site, the significant risks and rewards of ownership transfer to the customer only upon validation. In certain instances, an arrangement may include customer-specified acceptance provisions or performance guarantees that allow the customer to accept or reject delivered products that do not meet the customer’s specifications. If the Company can objectively determine that control of a good or service has been transferred to the customer in accordance with the agreed-upon specifications in the contract, then customer acceptance is a formality. If acceptance provisions are presumed to be substantive, then revenue is deferred until customer acceptance. For the Company’s standard products and services, revenue recognition and billing typically occur at the same time. For application-specific customer solutions, however, the agreement with the customer may provide for billing terms which differ from revenue recognition criteria, resulting in either deferred revenue or unbilled revenue. Credit assessments are performed to determine payment terms, which vary by region, industry, and customer. Prepayment terms result in contract liabilities for customer deposits. When credit is granted to customers, payment is typically due 30 to 90 days from billing. The Company's contracts have an original expected duration of less than one year, and therefore as a practical expedient, the Company has elected to ignore the impact of the time value of money on a contract and to expense sales commissions. The Company recognizes an asset for costs to fulfill a contract if the costs relate directly to the contract and to future performance, and the costs are expected to be recovered. Management exercises judgment when determining the amount of revenue to be recognized each period. Such judgments include, but are not limited to, assessing the customer’s ability and intention to pay substantially all of the contract consideration when due, determining when two or more contracts should be combined and accounted for as a single contract, determining whether a contract modification has occurred, assessing whether promises are immaterial in the context of the contract, determining whether material promises in a contract represent distinct performance obligations, estimating the transaction price for a contract that contains variable consideration, determining the stand-alone selling price of each performance obligation, determining whether control is transferred over time or at a point in time for performance obligations, and assessing whether formal customer acceptance provisions are substantive.
New Pronouncements	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 implementing this Update. As of the date of this report, management has determined the scope of leases subject to the new accounting requirements and has selected a software package to assist with compliance. Management is in the process of drafting the internal accounting lease policy and designing the related processes and internal controls. 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) 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 the change in accounting principle. Early adoption is permitted, including adoption in an interim period. Management does not expect ASU 2017-08 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2017-12, "Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities" ASU 2017-12 applies to all reporting entities that elect to apply hedge accounting. The hedge accounting requirements under current GAAP sometimes do not permit an entity to properly recognize the economic results of the hedging strategy in the financial statements, and they are difficult to understand and interpret. The amendments in this Update make certain targeted improvements to simplify the application of the hedge accounting guidance. Also, they better align the risk management activities and financial reporting for hedging relationships through changes to both 1) the designation and measurement guidance for qualifying hedging relationships and 2) the presentation of hedge results. For public companies, the amendments in ASU 2017-12 are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those annual periods. Early adoption is permitted including adoption in any interim period after issuance of the Update. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. Management does not expect ASU 2017-12 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2018-1, "Land Easement Practical Expedient for Transition to Topic 842" ASU 2018-01 applies to entities with land easements that exist or expired before an entity’s adoption of Topic 842, provided that the entity does not account for those land easements as leases under Topic 840. The amendments in this Update permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. The amendments in this Update affect the amendments in Update 2016-02, which are not yet effective but may be early adopted. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update 2016-02, which is for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Management is in the process of evaluating the impact of this Update. Accounting Standards Update (ASU) 2018-2, "Income Statement - Reporting Comprehensive Income" ASU 2018-02 applies to entities required to apply the provisions of Topic 220, Income Statement - Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires the effect of a change in tax laws or rates to be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Management does not expect ASU 2018-2 to have a material impact on the Company's financial statements and disclosures.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 01, 2018
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of April 1, 2018 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 7,958 — $ — Corporate bonds — 380,621 — Treasury bills — 142,299 — Asset-backed securities — 131,678 — Sovereign bonds — 22,780 — Municipal bonds — 10,501 — Agency bonds — 5,931 — Cash flow hedge forward contracts — — — Economic hedge forward contracts — 4 — Liabilities: Cash flow hedge forward contracts — — — Economic hedge forward contracts — 18 — Contingent consideration liabilities — — 3,115
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table summarizes the activity for the Company's liabilities measured at fair value using Level 3 inputs for the three-month period ended April 1, 2018 (in thousands): Balance as of December 31, 2017 $ 3,557 Fair value adjustment to Manatee contingent consideration (675 ) Fair value adjustment to Chiaro contingent consideration 52 Fair value adjustment to GVi contingent consideration 181 Balance as of April 1, 2018 $ 3,115

Cash, Cash Equivalents, and I26

Cash, Cash Equivalents, and Investments (Tables)	3 Months Ended
	Apr. 01, 2018
Cash and Cash Equivalents [Abstract]
Components of Cash, Cash Equivalents, and Investments	Cash, cash equivalents, and investments consisted of the following (in thousands): April 1, 2018 December 31, 2017 Cash $ 101,614 $ 97,951 Money market instruments 7,958 8,631 Cash and cash equivalents 109,572 106,582 Treasury bills 138,695 150,371 Corporate bonds 108,313 47,395 Asset-backed securities 75,432 59,203 Municipal bonds 9,153 8,805 Sovereign bonds 6,036 21,579 Agency bonds — 10,608 Short-term investments 337,629 297,961 Corporate bonds 272,308 296,014 Asset-backed securities 56,246 71,727 Sovereign bonds 16,744 13,147 Agency bonds 5,931 14,890 Treasury bills 3,604 23,459 Municipal bonds 1,348 4,204 Long-term investments 356,181 423,441 $ 803,382 $ 827,984
Summary of Available-for-Sale Investments	The following table summarizes the Company’s available-for-sale investments as of April 1, 2018 (in thousands): Amortized Gross Gross Fair Value Short-term: Treasury bills $ 139,159 $ — $ (464 ) $ 138,695 Corporate bonds 108,533 50 (270 ) 108,313 Asset-backed securities 75,710 5 (283 ) 75,432 Municipal bonds 9,165 — (12 ) 9,153 Sovereign bonds 6,040 1 (5 ) 6,036 Long-term: Corporate bonds 272,345 797 (834 ) 272,308 Asset-backed securities 56,573 14 (341 ) 56,246 Sovereign bonds 16,779 38 (73 ) 16,744 Agency bonds 5,930 1 — 5,931 Treasury bills 3,601 3 — 3,604 Municipal bonds 1,360 — (12 ) 1,348 $ 695,195 $ 909 $ (2,294 ) $ 693,810
Gross Unrealized Losses and Fair Values for Available-for-Sale Investments	The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of April 1, 2018 (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 Corporate bonds $ 172,162 $ (812 ) $ 23,693 $ (292 ) $ 195,855 $ (1,104 ) Treasury bills 96,209 (277 ) 42,487 (187 ) 138,696 (464 ) Asset-backed securities 112,632 (614 ) 2,640 (10 ) 115,272 (624 ) Sovereign bonds 3,599 (9 ) 8,730 (69 ) 12,329 (78 ) Municipal bonds 4,196 (24 ) — — 4,196 (24 ) Agency bonds — — — — — — $ 388,798 $ (1,736 ) $ 77,550 $ (558 ) $ 466,348 $ (2,294 )
Effective Maturity Dates of Available-for-Sale Investments	The following table presents the effective maturity dates of the Company’s available-for-sale investments as of April 1, 2018 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Corporate bonds $ 108,313 $ 116,223 $ 97,412 $ 36,342 $ 18,961 $ 3,370 $ 380,621 Treasury bills 138,695 3,604 — — — — 142,299 Asset-backed securities 75,432 35,411 6,923 6,504 2,336 5,072 131,678 Sovereign bonds 6,036 10,995 5,749 — — — 22,780 Municipal bonds 9,153 — 1,348 — — — 10,501 Agency bonds — — — — 5,931 — 5,931 $ 337,629 $ 166,233 $ 111,432 $ 42,846 $ 27,228 $ 8,442 $ 693,810

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 01, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following (in thousands): April 1, 2018 December 31, 2017 Raw materials $ 42,759 $ 33,927 Work-in-process 2,192 2,114 Finished goods 51,448 31,882 $ 96,399 $ 67,923

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Apr. 01, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of 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 4,791 8,896 Customer relationships 8,607 5,330 3,277 Non-compete agreements 370 123 247 Balance as of April 1, 2018 $ 60,724 $ 48,304 $ 12,420 Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 13,687 4,181 9,506 Customer relationships 8,607 5,202 3,405 Non-compete agreements 370 92 278 Balance as of December 31, 2017 $ 60,724 $ 47,535 $ 13,189
Schedule of Intangible Assets, Future Amortization Expense	As of April 1, 2018, estimated future amortization expense related to intangible assets is as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2018 $ 2,307 2019 2,701 2020 2,185 2021 2,017 2022 1,691 2023 989 Thereafter 530 $ 12,420

Warranty Obligations (Tables)

Warranty Obligations (Tables)	3 Months Ended
	Apr. 01, 2018
Product Warranties Disclosures [Abstract]
Changes in Warranty Obligations	The changes in the warranty obligation were as follows (in thousands): Balance as of December 31, 2017 $ 4,701 Provisions for warranties issued during the period 697 Fulfillment of warranty obligations (802 ) Foreign exchange rate changes 116 Balance as of April 1, 2018 $ 4,712

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Apr. 01, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Outstanding Forward Contracts Table	The Company had the following outstanding forward contracts (in thousands): April 1, 2018 December 31, 2017 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Japanese Yen 565,000 $ 5,299 455,000 $ 4,049 Swiss Franc 1,600 2,072 1,365 1,401 British Pound 1,300 1,824 1,650 2,232 Hungarian Forint 400,000 1,576 545,000 2,110 Taiwanese Dollar 43,000 1,480 37,725 1,278 Korean Won 655,000 616 1,825,000 1,708
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): Asset Derivatives Liability Derivatives Balance Fair Value Balance Fair Value Sheet April 1, 2018 December 31, 2017 Sheet April 1, 2018 December 31, 2017 Derivatives Designated as Hedging Instruments: Cash flow hedge forward contracts Prepaid expenses and other current assets $ — $ — Accrued expenses $ — $ — Economic hedge forward contracts Prepaid expenses and other current assets $ 4 $ 16 Accrued expenses $ 18 $ 13
Offsetting Assets	The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands): Asset Derivatives Liability Derivatives April 1, 2018 December 31, 2017 April 1, 2018 December 31, 2017 Gross amounts of recognized assets $ 4 $ 16 Gross amounts of recognized liabilities $ 18 $ 13 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 4 $ 16 Net amount of liabilities presented $ 18 $ 13
Derivative Instruments, Gain (Loss)	Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended April 1, 2018 April 2, 2017 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ — $ 10 Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ — $ (55 ) Research, development, and engineering expenses — 3 Selling, general, and administrative expenses — 8 Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations $ — $ (44 ) 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) $ (310 ) $ (81 )

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Apr. 01, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Adoption of New Accounting Principles	The adoption of the standard impacted our previously-reported results as follows (in thousands): Statement of Operations Three-months ended April 2, 2017 As previously reported Adjustment As restated Revenue $ 134,942 $ 4,097 $ 139,039 Cost of revenue 28,225 4,307 32,532 Gross margin 106,717 (210 ) 106,507 Operating income 37,426 (210 ) 37,216 Income before income tax expense 39,445 (210 ) 39,235 Income tax expense (benefit) (6,210 ) (26 ) (6,236 ) Net income $ 45,655 $ (184 ) $ 45,471 Net income per weighted-average common and common-equivalend share: Basic $ 0.26 $ — $ 0.26 Diluted $ 0.26 $ (0.01 ) $ 0.25 Balance Sheet December 31, 2017 As previously reported Adjustment As restated Prepaid expenses and other current assets $ 30,800 $ (117 ) $ 30,683 Accrued income taxes 11,391 112 11,503 Deferred revenue and customer deposits 9,969 (549 ) 9,420 Retained earnings 668,267 320 668,587
Disaggregation of Revenue	The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands): Three-months ended April 1, 2018 April 2, 2017 Americas $ 59,217 $ 42,540 Europe 56,203 43,107 Greater China 27,159 22,706 Other Asia 26,988 30,686 $ 169,567 $ 139,039 The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months ended April 1, 2018 April 2, 2017 Standard products and services $ 158,399 $ 133,017 Application-specific customer solutions 11,168 6,022 $ 169,567 $ 139,039
Summary of Deferred Revenue and Customer Deposits Activity	The following table summarizes the deferred revenue and customer deposits activity for the three-month period ended April 1, 2018 (in thousands): Amount Balance as of December 31, 2017 $ 9,420 Increases to deferred revenue and customer deposits 11,751 Recognition of revenue (5,875 ) Foreign exchange rate changes 208 Balance as of April 1, 2018 $ 15,504

Stock-Based Compensation Expe32

Stock-Based Compensation Expense (Tables)	3 Months Ended
	Apr. 01, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity for the three -month period ended April 1, 2018 : Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 12,726 $ 25.24 Granted 2,043 56.44 Exercised (697 ) 15.96 Forfeited or expired (68 ) 25.84 Outstanding as of April 1, 2018 14,004 $ 30.25 7.9 $ 317,169 Exercisable as of April 1, 2018 4,879 $ 19.88 6.5 $ 156,676 Options vested or expected to vest as of April 1, 2018 (1) 12,377 $ 28.99 7.8 $ 294,379 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted	The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: Three-months Ended April 1, 2018 April 2, 2017 Risk-free rate 2.9 % 2.4 % Expected dividend yield 0.32 % 0.39 % Expected volatility 39 % 41 % Expected term (in years) 5.3 5.3
Nonvested Restricted Stock Shares Activity	The following table summarizes the Company's restricted stock activity for the three-month period ended April 1, 2018 : Shares (in thousands) Weighted-Average Grant Fair Value Aggregate Intrinsic Value (in thousands)(1) Nonvested as of December 31, 2017 20 $ 17.03 Granted — — Vested — — Forfeited or expired — — Nonvested as of April 1, 2018 20 $ 17.03 $ 1,040 (1) Fair market value as of April 1, 2018 .
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Three-months Ended April 1, 2018 April 2, 2017 Cost of revenue $ 797 $ 430 Research, development, and engineering 4,815 2,610 Selling, general, and administrative 7,582 4,443 $ 13,194 $ 7,483

Taxes (Tables)

Taxes (Tables)	3 Months Ended
	Apr. 01, 2018
Income Tax Disclosure [Abstract]
Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate, or Income Tax Provision	A reconciliation of the United States federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows: Three-months Ended April 1, 2018 April 2, 2017 Income tax provision at federal statutory corporate tax rate 21 % 35 % State income taxes, net of federal benefit 1 % 1 % Foreign tax rate differential (7 )% (18 )% Tax credit (1 )% (1 )% Discrete tax benefit related to stock option exercises (13 )% (33 )% Other discrete tax events — % (1 )% Other 1 % 1 % Income tax provision 2 % (16 )%

Weighted-Average Shares (Tables

Weighted-Average Shares (Tables)	3 Months Ended
	Apr. 01, 2018
Earnings Per Share [Abstract]
Calculation of Weighted-Average Shares	Weighted-average shares were calculated as follows (in thousands): Three-months Ended April 1, 2018 April 2, 2017 Basic weighted-average common shares outstanding 173,280 172,646 Effect of dilutive stock options 6,361 5,708 Weighted-average common and common-equivalent shares outstanding 179,641 178,354

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
Assets:
Money market instruments	$ 7,958	$ 8,631
Financial assets at fair value	693,810
Corporate bonds
Assets:
Financial assets at fair value	380,621
Treasury bills
Assets:
Financial assets at fair value	142,299
Asset-backed securities
Assets:
Financial assets at fair value	131,678
Sovereign bonds
Assets:
Financial assets at fair value	22,780
Municipal bonds
Assets:
Financial assets at fair value	10,501
Agency bonds
Assets:
Financial assets at fair value	5,931
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Money market instruments	7,958
Cash flow hedge forward contracts	0
Economic hedge forward contracts	0
Liabilities:
Cash flow hedge forward contracts	0
Economic hedge forward contracts	0
Contingent consideration liabilities	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Treasury bills
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Sovereign bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Assets:
Money market instruments	0
Cash flow hedge forward contracts	0
Economic hedge forward contracts	4
Liabilities:
Cash flow hedge forward contracts	0
Economic hedge forward contracts	18
Contingent consideration liabilities	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds
Assets:
Financial assets at fair value	380,621
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Treasury bills
Assets:
Financial assets at fair value	142,299
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities
Assets:
Financial assets at fair value	131,678
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Sovereign bonds
Assets:
Financial assets at fair value	22,780
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal bonds
Assets:
Financial assets at fair value	10,501
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Agency bonds
Assets:
Financial assets at fair value	5,931
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3)
Assets:
Money market instruments	0
Cash flow hedge forward contracts	0
Economic hedge forward contracts	0
Liabilities:
Cash flow hedge forward contracts	0
Economic hedge forward contracts	0
Contingent consideration liabilities	3,115
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Corporate bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Treasury bills
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Asset-backed securities
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Sovereign bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Municipal bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring | Unobservable Inputs (Level 3) | Agency bonds
Assets:
Financial assets at fair value	$ 0

Fair Value Measurements - Liabi

Fair Value Measurements - Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Unobservable Inputs (Level 3) - Fair Value, Measurements, Recurring $ in Thousands	3 Months Ended
	Apr. 01, 2018USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 3,557
Ending balance	3,115
Fair value adjustment to Manatee contingent consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value adjustment to contingent consideration	(675)
Fair value adjustment to Chiaro contingent consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value adjustment to contingent consideration	52
Fair value adjustment to GVi contingent consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value adjustment to contingent consideration	$ 181

Cash, Cash Equivalents, and I37

Cash, Cash Equivalents, and Investments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Cash and Cash Equivalents [Abstract]
Gross realized gains on sale of investments	$ 55	$ 88
Gross realized losses on sale of investments	$ 33	$ 23

Cash, Cash Equivalents, and I38

Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Detail) - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017	Apr. 02, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Cash	$ 101,614	$ 97,951
Money market instruments	7,958	8,631
Cash and cash equivalents	109,572	106,582	$ 92,428	$ 79,641
Short-term investments	337,629	297,961
Long-term investments	356,181	423,441
Total	803,382	827,984
Treasury bills
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	138,695	150,371
Long-term investments	3,604	23,459
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	75,432	59,203
Long-term investments	56,246	71,727
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	108,313	47,395
Long-term investments	272,308	296,014
Agency bonds
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	0	10,608
Long-term investments	5,931	14,890
Sovereign bonds
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	6,036	21,579
Long-term investments	16,744	13,147
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Short-term investments	9,153	8,805
Long-term investments	$ 1,348	$ 4,204

Cash, Cash Equivalents, and I39

Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Detail) $ in Thousands	Apr. 01, 2018USD ($)
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	$ 695,195
Gross unrealized gains	909
Gross unrealized losses	(2,294)
Fair value	693,810
Treasury bills
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses	(464)
Treasury bills | Short-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	139,159
Gross unrealized gains	0
Gross unrealized losses	(464)
Fair value	138,695
Treasury bills | Long-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	3,601
Gross unrealized gains	3
Gross unrealized losses	0
Fair value	3,604
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses	(1,104)
Corporate bonds | Short-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	108,533
Gross unrealized gains	50
Gross unrealized losses	(270)
Fair value	108,313
Corporate bonds | Long-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	272,345
Gross unrealized gains	797
Gross unrealized losses	(834)
Fair value	272,308
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses	(624)
Asset-backed securities | Short-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	75,710
Gross unrealized gains	5
Gross unrealized losses	(283)
Fair value	75,432
Asset-backed securities | Long-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	56,573
Gross unrealized gains	14
Gross unrealized losses	(341)
Fair value	56,246
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses	(24)
Municipal bonds | Short-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	9,165
Gross unrealized gains	0
Gross unrealized losses	(12)
Fair value	9,153
Municipal bonds | Long-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	1,360
Gross unrealized gains	0
Gross unrealized losses	(12)
Fair value	1,348
Sovereign bonds
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses	(78)
Sovereign bonds | Short-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	6,040
Gross unrealized gains	1
Gross unrealized losses	(5)
Fair value	6,036
Sovereign bonds | Long-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	16,779
Gross unrealized gains	38
Gross unrealized losses	(73)
Fair value	16,744
Agency bonds
Schedule of Available-for-sale Securities [Line Items]
Gross unrealized losses	0
Agency bonds | Long-Term Investments
Schedule of Available-for-sale Securities [Line Items]
Amortized cost	5,930
Gross unrealized gains	1
Gross unrealized losses	0
Fair value	$ 5,931

Cash, Cash Equivalents, and I40

Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Detail) $ in Thousands	Apr. 01, 2018USD ($)
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	$ 388,798
Unrealized losses, less than 12 months	(1,736)
Fair value, 12 months or greater	77,550
Unrealized losses, 12 months or greater	(558)
Total fair value	466,348
Total unrealized losses	(2,294)
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	172,162
Unrealized losses, less than 12 months	(812)
Fair value, 12 months or greater	23,693
Unrealized losses, 12 months or greater	(292)
Total fair value	195,855
Total unrealized losses	(1,104)
Treasury bills
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	96,209
Unrealized losses, less than 12 months	(277)
Fair value, 12 months or greater	42,487
Unrealized losses, 12 months or greater	(187)
Total fair value	138,696
Total unrealized losses	(464)
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	112,632
Unrealized losses, less than 12 months	(614)
Fair value, 12 months or greater	2,640
Unrealized losses, 12 months or greater	(10)
Total fair value	115,272
Total unrealized losses	(624)
Sovereign bonds
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	3,599
Unrealized losses, less than 12 months	(9)
Fair value, 12 months or greater	8,730
Unrealized losses, 12 months or greater	(69)
Total fair value	12,329
Total unrealized losses	(78)
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	4,196
Unrealized losses, less than 12 months	(24)
Fair value, 12 months or greater	0
Unrealized losses, 12 months or greater	0
Total fair value	4,196
Total unrealized losses	(24)
Agency bonds
Schedule of Available-for-sale Securities [Line Items]
Fair value, less than 12 months	0
Unrealized losses, less than 12 months	0
Fair value, 12 months or greater	0
Unrealized losses, 12 months or greater	0
Total fair value	0
Total unrealized losses	$ 0

Cash, Cash Equivalents, and I41

Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) $ in Thousands	Apr. 01, 2018USD ($)
Schedule of Available-for-sale Securities [Line Items]
1 year or less	$ 337,629
1-2 years	166,233
2-3 years	111,432
3-4 years	42,846
4-5 years	27,228
5-7 years	8,442
Fair value	693,810
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
1 year or less	108,313
1-2 years	116,223
2-3 years	97,412
3-4 years	36,342
4-5 years	18,961
5-7 years	3,370
Fair value	380,621
Treasury bills
Schedule of Available-for-sale Securities [Line Items]
1 year or less	138,695
1-2 years	3,604
2-3 years	0
3-4 years	0
4-5 years	0
5-7 years	0
Fair value	142,299
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
1 year or less	75,432
1-2 years	35,411
2-3 years	6,923
3-4 years	6,504
4-5 years	2,336
5-7 years	5,072
Fair value	131,678
Sovereign bonds
Schedule of Available-for-sale Securities [Line Items]
1 year or less	6,036
1-2 years	10,995
2-3 years	5,749
3-4 years	0
4-5 years	0
5-7 years	0
Fair value	22,780
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
1 year or less	9,153
1-2 years	0
2-3 years	1,348
3-4 years	0
4-5 years	0
5-7 years	0
Fair value	10,501
Agency bonds
Schedule of Available-for-sale Securities [Line Items]
1 year or less	0
1-2 years	0
2-3 years	0
3-4 years	0
4-5 years	5,931
5-7 years	0
Fair value	$ 5,931

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 42,759	$ 33,927
Work-in-process	2,192	2,114
Finished goods	51,448	31,882
Inventories	$ 96,399	$ 67,923

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 60,724	$ 60,724
Accumulated Amortization	48,304	47,535
Net Carrying Value	12,420	13,189
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2018	2,307
2,019	2,701
2,020	2,185
2,021	2,017
2,022	1,691
2,023	989
Thereafter	530
Net Carrying Value	12,420	13,189
Distribution networks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	38,060	38,060
Accumulated Amortization	38,060	38,060
Net Carrying Value	0	0
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	0	0
Completed technologies
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	13,687	13,687
Accumulated Amortization	4,791	4,181
Net Carrying Value	8,896	9,506
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	8,896	9,506
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	8,607	8,607
Accumulated Amortization	5,330	5,202
Net Carrying Value	3,277	3,405
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	3,277	3,405
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	370	370
Accumulated Amortization	123	92
Net Carrying Value	247	278
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	$ 247	$ 278

Warranty Obligations - Changes

Warranty Obligations - Changes in Warranty Obligations (Detail) $ in Thousands	3 Months Ended
	Apr. 01, 2018USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 4,701
Provisions for warranties issued during the period	697
Fulfillment of warranty obligations	(802)
Foreign exchange rate changes	116
Ending balance	$ 4,712

Derivative Instruments (Detail)

Derivative Instruments (Detail)	3 Months Ended
	Apr. 01, 2018Category
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Number of Instruments Held	2
Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Remaining maturity of foreign currency derivatives (up to)	45 days
Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Maximum length of time hedged in cash flow hedge	18 months

Derivative Instruments - Outsta

Derivative Instruments - Outstanding Forward Contracts Table (Detail) - Not Designated as Hedging Instrument ₩ in Thousands, ¥ in Thousands, £ in Thousands, SFr in Thousands, Ft in Thousands, $ in Thousands, $ in Thousands

Apr. 01, 2018HUF (Ft)

Apr. 01, 2018GBP (£)

Apr. 01, 2018CHF (SFr)

Apr. 01, 2018JPY (¥)

Apr. 01, 2018KRW (₩)

Apr. 01, 2018TWD ($)

Apr. 01, 2018USD ($)

Dec. 31, 2017HUF (Ft)

Dec. 31, 2017GBP (£)

Dec. 31, 2017CHF (SFr)

Dec. 31, 2017JPY (¥)

Dec. 31, 2017KRW (₩)

Dec. 31, 2017TWD ($)

Dec. 31, 2017USD ($)

Japanese Yen

Derivative [Line Items]

Outstanding forward contracts

¥ 565,000

$ 5,299

¥ 455,000

$ 4,049

Swiss Franc

Derivative [Line Items]

Outstanding forward contracts

SFr 1,600

2,072

SFr 1,365

1,401

British Pound

Derivative [Line Items]

Outstanding forward contracts

£ 1,300

1,824

£ 1,650

2,232

Hungarian Forint

Derivative [Line Items]

Outstanding forward contracts

Ft 400,000

1,576

Ft 545,000

2,110

Taiwanese Dollar

Derivative [Line Items]

Outstanding forward contracts

$ 43,000

1,480

$ 37,725

1,278

Korean Won

Derivative [Line Items]

Outstanding forward contracts

₩ 655,000

$ 616

₩ 1,825,000

$ 1,708

Derivative Instruments - Schedu

Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Detail) - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Derivative asset	$ 4	$ 16
Derivative liability	18	13
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative asset	0	0
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	4	16
Not Designated as Hedging Instrument | Accrued Expenses
Derivatives, Fair Value [Line Items]
Derivative liability	$ 18	$ 13

Derivative Instruments - Offset

Derivative Instruments - Offsetting Assets (Detail) - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross amounts of recognized assets	$ 4	$ 16
Gross amounts offset	0	0
Net amount of assets presented	4	16
Gross amounts of recognized liabilities	18	13
Gross amounts offset	0	0
Net amount of liabilities presented	$ 18	$ 13

Derivative Instruments - Deriva

Derivative Instruments - Derivative Instruments, Gain (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations	$ 0	$ (44)
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)	0	10
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)	0	(55)
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	3
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
Designated as Hedging Instrument | Foreign Currency Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in current operations (ineffective portion and discontinued derivatives)	0	0
Not Designated as Hedging Instrument | Foreign Currency Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in current operations	$ (310)	$ (81)

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 169,567,000	$ 139,039,000
Cost of revenue	40,198,000	32,532,000
Gross margin	129,369,000	106,507,000
Operating income	34,596,000	37,216,000
Income before income tax expense	37,979,000	39,235,000
Income tax expense (benefit)	762,000	(6,236,000)
Net income	$ 37,217,000	$ 45,471,000
Basic (in dollars per share)	$ 0.21	$ 0.26
Diluted (in dollars per share)	$ 0.21	$ 0.25
Prepaid expenses and other current assets	$ 26,068,000		$ 30,683,000
Accrued income taxes	11,915,000		11,503,000
Deferred revenue and customer deposits	15,504,000		9,420,000
Retained earnings	622,856,000		668,587,000
Revenues	169,567,000	$ 139,039,000
Costs to fulfill a contract	4,615,000		3,230,000
Change in Contract with Customer, Asset [Abstract]
Balance as of December 31, 2017	9,420,000
Increases to deferred revenue and customer deposits	11,751,000
Recognition of revenue	(5,875,000)
Foreign exchange rate changes	208,000
Balance as of April 1, 2018	15,504,000
Standard products and services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	158,399,000	133,017
Application-specific customer solutions
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	11,168,000	6,022
Americas
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	59,217,000	42,540,000
Europe
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	56,203,000	43,107,000
Greater China
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	27,159,000	22,706,000
Other Asia
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	$ 26,988,000	30,686,000
As previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		134,942,000
Cost of revenue		28,225,000
Gross margin		106,717,000
Operating income		37,426,000
Income before income tax expense		39,445,000
Income tax expense (benefit)		(6,210,000)
Net income		$ 45,655,000
Basic (in dollars per share)		$ 0.26
Diluted (in dollars per share)		$ 0.26
Prepaid expenses and other current assets			30,800,000
Accrued income taxes			11,391,000
Deferred revenue and customer deposits			9,969,000
Retained earnings			668,267,000
Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue		$ 4,097,000
Cost of revenue		4,307,000
Gross margin		(210,000)
Operating income		(210,000)
Income before income tax expense		(210,000)
Income tax expense (benefit)		(26,000)
Net income		$ (184,000)
Basic (in dollars per share)		$ 0
Diluted (in dollars per share)		$ (10)
Prepaid expenses and other current assets			(117,000)
Accrued income taxes			112,000
Deferred revenue and customer deposits			(549,000)
Retained earnings			$ 320,000

Stock-Based Compensation Expe51

Stock-Based Compensation Expense (Detail)	3 Months Ended
	Apr. 01, 2018USD ($)group$ / sharesshares	Apr. 02, 2017USD ($)$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, performance-based restricted stock, years	1 year
Vesting period, time-based restricted stock, years	3 years
Groups within the employee population | group	2
Estimated annual forfeiture rate for unvested options for senior management	8.00%
Estimated annual forfeiture rate for unvested options for all other employees	12.00%
Increase (decrease) to compensation expense	$ 1,283,000	$ 673,000
Weighted-average grant-date fair values, in dollars per share | $ / shares	$ 21.62	$ 14.95
Total intrinsic value	$ 28,088,000	$ 53,043,000
Total fair values of stock options vest	25,674,000	17,987,000
Unrecognized compensation expense	$ 63,749,000
Weighted average period to be recognized	2 years 7 days
Stock-based compensation expense	$ 13,194,000	7,483,000
Tax benefit from compensation expense	2,347,000	$ 2,439,000
Recognized period costs capitalized	$ 0
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	10,160,452
Expiration period from grant day	10 years

Stock-Based Compensation Expe52

Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2018USD ($)$ / sharesshares
Shares (in thousands)
Outstanding, shares | shares	12,726
Granted, shares | shares	2,043
Exercised, shares | shares	(697)
Forfeited or expired, shares | shares	(68)
Outstanding, shares | shares	14,004
Exercisable as of reporting date, shares | shares	4,879
Options vested or expected to vest as of reporting date, shares | shares	12,377
Weighted- Average Exercise Price
Outstanding, in dollars per share | $ / shares	$ 25.24
Granted, in dollars per share | $ / shares	56.44
Exercised, in dollars per share | $ / shares	15.96
Forfeited or expired, in dollars per share | $ / shares	25.84
Outstanding, in dollars per share | $ / shares	30.25
Exercisable as of reporting date, Weighted-Average Exercise Price, in dollars per share | $ / shares	19.88
Options vested or expected to vest as of period end (in dollars per share) | $ / shares	$ 28.99
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, in years	7 years 10 months 24 days
Exercisable, in years	6 years 6 months
Options vested or expected to vest, in years	7 years 9 months 18 days
Aggregate Intrinsic Value (in thousands)
Outstanding, in dollars | $	$ 317,169
Exercisable, in dollars | $	156,676
Options vested or expected to vest, in dollars | $	$ 294,379

Stock-Based Compensation Expe53

Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Detail)	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free rate	2.90%	2.40%
Expected dividend yield	0.32%	0.39%
Expected volatility	39.00%	41.00%
Expected term (in years)	5 years 3 months 18 days	5 years 3 months 18 days

Stock-Based Compensation Expe54

Stock-Based Compensation Expense - Nonvested Restricted Stock Shares Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2018USD ($)$ / sharesshares
Shares (in thousands)
Nonvested, shares | shares	20
Granted, shares | shares	0
Vested, shares | shares	0
Forfeited or expired, shares | shares	0
Nonvested, shares | shares	20
Weighted-Average Grant Fair Value
Nonvested, in dollars per share | $ / shares	$ 17.03
Granted, in dollars per share | $ / shares	0
Vested, in dollars per share | $ / shares	0
Forfeited or expired, in dollars per share | $ / shares	0
Nonvested, in dollars per share | $ / shares	$ 17.03
Aggregate Intrinsic Value (in thousands)(1)
Nonvested as of April 1, 2018 | $	$ 1,040

Stock-Based Compensation Expe55

Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 13,194	$ 7,483
Cost of Revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	797	430
Research, Development, and Engineering Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	4,815	2,610
Selling, General, and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 7,582	$ 4,443

Stock Repurchase Program (Detai

Stock Repurchase Program (Detail) - USD ($) shares in Thousands	3 Months Ended
	Apr. 01, 2018	Feb. 28, 2018	Nov. 01, 2015
Equity, Class of Treasury Stock [Line Items]
Authorized common stock to be repurchased	$ 200,000,000
Stock repurchased during period, Value	$ 69,202,000
Repurchase Program April 2017
Equity, Class of Treasury Stock [Line Items]
Authorized common stock to be repurchased			$ 100,000,000
Number of shares repurchased	1,744
Value of shares repurchased	$ 100,000,000
Repurchase of common stock (in shares)	803
Stock repurchased during period, Value	$ 45,200,000
Repurchase Program February 2018
Equity, Class of Treasury Stock [Line Items]
Authorized common stock to be repurchased		$ 150,000,000
Repurchase of common stock (in shares)	453
Stock repurchased during period, Value	$ 24,002,000
Remaining authorized purchase amount	125,998,000
Repurchase Program April 2017 and February 2018
Equity, Class of Treasury Stock [Line Items]
Stock repurchased during period, Value	$ 69,202,000

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
	Apr. 01, 2018	Apr. 02, 2017
Income Tax Disclosure [Abstract]
Income tax provision at federal statutory corporate tax rate	21.00%	35.00%
State income taxes, net of federal benefit	1.00%	1.00%
Foreign tax rate differential	(7.00%)	(18.00%)
Tax credit	(1.00%)	(1.00%)
Discrete tax benefit related to stock option exercises	13.00%	33.00%
Other discrete tax events	0.00%	(1.00%)
Other	1.00%	1.00%
Income tax provision	2.00%	(16.00%)

Taxes (Detail)

Taxes (Detail) - USD ($) $ in Thousands	Jan. 01, 2018	Apr. 01, 2018	Apr. 02, 2017	Dec. 31, 2017
Income Tax [Line Items]
Income tax provision at federal statutory corporate tax rate		21.00%	35.00%
Foreign tax rate differential		7.00%	18.00%
Discrete tax benefit related to stock option exercises		13.00%	33.00%
Increase in reserves for income taxes, net of deferred tax benefit		$ 484
Interest and penalties included in reserve		70
Liability for uncertain tax positions		7,986
Reserve for income taxes classified as a noncurrent iability		6,958		$ 6,488
Reserve for income taxes classified an noncurrent deferred tax assets		1,028
Interest and penalties, gross		847
Minimum decrease in income tax expense due to release in reserves		1,100
Maximum decrease in income tax expense due to release in reserves		$ 1,200
Tax years open to examination by Internal Revenue Service		2014 through 2017
Tax years open to examination by various taxing authorities for other entities		2013 through 2017
Accounting Standards Update 2016-16
Income Tax [Line Items]
Cumulative effect on retained earnings	$ 5,961
Foreign tax authority | Ireland
Income Tax [Line Items]
Income tax provision at federal statutory corporate tax rate		12.50%
Foreign tax authority | China
Income Tax [Line Items]
Income tax provision at federal statutory corporate tax rate		25.00%

Weighted-Average Shares - Calcu

Weighted-Average Shares - Calculation of Weighted-Average Shares (Detail) - shares shares in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Earnings Per Share [Abstract]
Basic weighted-average common shares outstanding	173,280	172,646
Effect of dilutive stock options	6,361	5,708
Weighted-average common and common-equivalent shares outstanding	179,641	178,354

Weighted-Average Shares (Detail

Weighted-Average Shares (Detail) - shares	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Earnings Per Share [Abstract]
Stock options to purchase anti-dilutive common stock	1,339,000	1,648,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Apr. 30, 2018	Apr. 25, 2018	Apr. 01, 2018
Subsequent Event [Line Items]
Authorized common stock to be repurchased			$ 200,000,000
Subsequent Event
Subsequent Event [Line Items]
Authorized common stock to be repurchased		$ 300,000,000
Dividends (in dollars per share)	$ 0.045
Dividends payable, date payable	Jun. 1, 2018
Dividends payable, date of record	May 18, 2018
General Stock Option Plan | Subsequent Event
Subsequent Event [Line Items]
Authorized common stock to be repurchased		$ 10,000,000