Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jul. 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 | Jul. 1, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 172,032,044 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 211,264 | $ 178,080 | $ 380,831 | $ 317,119 |
Cost of revenue | 54,169 | 42,164 | 94,367 | 74,696 |
Gross margin | 157,095 | 135,916 | 286,464 | 242,423 |
Research, development, and engineering expenses | 26,888 | 23,377 | 57,964 | 46,147 |
Selling, general, and administrative expenses | 66,752 | 52,518 | 130,449 | 99,039 |
Operating income | 63,455 | 60,021 | 98,051 | 97,237 |
Foreign currency gain (loss) | (195) | (184) | (329) | (447) |
Investment income | 3,559 | 2,138 | 6,799 | 4,150 |
Other income (expense) | (246) | (169) | 31 | 101 |
Income before income tax expense | 66,573 | 61,806 | 104,552 | 101,041 |
Income tax expense (benefit) | 10,377 | 5,311 | 11,139 | (925) |
Net Income | $ 56,196 | $ 56,495 | $ 93,413 | $ 101,966 |
Net income per weighted-average common and common-equivalent share: | ||||
Basic | $ 0.33 | $ 0.33 | $ 0.54 | $ 0.59 |
Diluted | $ 0.32 | $ 0.32 | $ 0.52 | $ 0.57 |
Weighted-average common and common-equivalent shares outstanding: | ||||
Basic | 172,370 | 173,278 | 172,825 | 172,960 |
Diluted | 177,149 | 179,228 | 178,418 | 178,904 |
Cash dividends per common share | $ 0.045 | $ 0.0425 | $ 0.09 | $ 0.080 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 56,196 | $ 56,495 | $ 93,413 | $ 101,966 |
Cash flow hedges: | ||||
Net unrealized gain (loss), net of tax of $0 and $7 in the three-month periods and net of tax of $0 and $3 in the six-month periods, respectively | 0 | 59 | 0 | (12) |
Reclassification of net realized (gain) loss into current operations | 0 | (9) | 0 | 35 |
Net change related to cash flow hedges | 0 | 50 | 0 | 23 |
Available-for-sale investments: | ||||
Net unrealized gain (loss), net of tax of $8 and $58 in the three-month periods and net of tax of $(106) and $150 in the six-month periods, respectively | 490 | 307 | (702) | 818 |
Reclassification of net realized (gain) loss into current operations | (247) | (42) | (269) | (107) |
Net change related to available-for-sale investments | 243 | 265 | (971) | 711 |
Foreign currency translation adjustments: | ||||
Foreign currency translation adjustments | (7,253) | 10,263 | (3,197) | 12,744 |
Other comprehensive income (loss), net of tax | (7,010) | 10,578 | (4,168) | 13,478 |
Total comprehensive income | $ 49,186 | $ 67,073 | $ 89,245 | $ 115,444 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect on cash flow hedges | $ 0 | $ 7 | $ 0 | $ 3 |
Tax effect of unrealized gain (loss) on available-for-sale investments | 8 | 58 | (106) | 150 |
Tax effect of foreign currency translation adjustment | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 129,202 | $ 106,582 |
Short-term investments | 353,740 | 297,961 |
Accounts receivable, less reserves of $1,501 and $1,568 in 2018 and 2017, respectively | 136,084 | 119,388 |
Unbilled revenue | 3,603 | 7,454 |
Inventories | 89,556 | 67,923 |
Prepaid expenses and other current assets | 47,362 | 30,683 |
Total current assets | 759,547 | 629,991 |
Long-term investments | 271,941 | 423,441 |
Property, plant, and equipment, net | 87,893 | 78,048 |
Goodwill | 113,208 | 113,208 |
Intangible assets, net | 11,651 | 13,189 |
Deferred income taxes | 29,892 | 27,385 |
Other assets | 2,178 | 2,491 |
Total assets | 1,276,310 | 1,287,753 |
Current liabilities: | ||
Accounts payable | 12,588 | 23,463 |
Accrued expenses | 58,654 | 68,249 |
Accrued income taxes | 12,477 | 11,503 |
Deferred revenue and customer deposits | 40,881 | 9,420 |
Total current liabilities | 124,600 | 112,635 |
Deferred Income Tax Liabilities, Net | 304 | 312 |
Reserve for income taxes | 7,399 | 6,488 |
Accrued Income Taxes | 60,241 | 66,741 |
Other non-current liabilities | 4,634 | 5,904 |
Total liabilities | 197,178 | 192,080 |
Shareholders’ equity: | ||
Common stock, $.002 par value – Authorized: 300,000 and 200,000 shares in 2018 and 2017, respectively, issued and outstanding: 172,032 and 173,507 shares in 2018 and 2017, respectively | 344 | 347 |
Additional paid-in capital | 498,343 | 461,338 |
Retained earnings | 619,212 | 668,587 |
Accumulated other comprehensive loss, net of tax | (38,767) | (34,599) |
Total shareholders’ equity | 1,079,132 | 1,095,673 |
Total liabilities and shareholders' equity | $ 1,276,310 | $ 1,287,753 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Reserves for accounts receivable | $ 1,501 | $ 1,568 |
Common stock, par value | $ 0.002 | $ 0.002 |
Common stock, shares authorized | 300,000,000 | 200,000,000 |
Common stock, shares issued | 172,032,000 | 173,507,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 93,413 | $ 101,966 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 22,196 | 15,329 |
Depreciation of property, plant, and equipment | 8,874 | 6,288 |
Amortization of intangible assets | 1,538 | 1,740 |
Amortization of discounts or premiums on investments | 94 | 171 |
Realized (gain) loss on sale of investments | (269) | (107) |
Revaluation of contingent consideration | (254) | (151) |
Change in deferred income taxes | (2,385) | (972) |
Accounts receivable | (18,779) | (18,841) |
Unbilled revenue | 3,803 | (3,315) |
Inventories | (23,220) | (7,711) |
Prepaid expenses and other current assets | (23,112) | (23,990) |
Accounts payable | (10,889) | 11,814 |
Accrued expenses | (5,666) | (157) |
Accrued income taxes | (5,360) | (532) |
Deferred revenue and customer deposits | 32,470 | 9,080 |
Other | 162 | 8 |
Net cash provided by operating activities | 72,616 | 90,620 |
Cash flows from investing activities: | ||
Purchases of investments | (336,189) | (304,611) |
Maturities and sales of investments | 431,008 | 279,654 |
Purchases of property, plant, and equipment | (21,675) | (12,172) |
Cash paid for acquisition of businesses, net of cash acquired | 0 | (25,519) |
Net cash provided by (used in) investing activities | 0 | (291) |
Net cash provided by (used in) investing activities | 73,144 | (62,939) |
Cash flows from financing activities: | ||
Issuance of common stock under stock plans | 14,811 | 35,050 |
Repurchase of common stock | (121,308) | (62,343) |
Payment of dividends | (15,524) | (13,864) |
Payment of contingent consideration | (1,000) | 0 |
Net cash provided by (used in) financing activities | (123,021) | (41,157) |
Effect of foreign exchange rate changes on cash and cash equivalents | (119) | 2,101 |
Net change in cash and cash equivalents | 22,620 | (11,375) |
Cash and cash equivalents at beginning of period | 106,582 | 79,641 |
Cash and cash equivalents at end of period | $ 129,202 | $ 68,266 |
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 2016-06 Income Taxes - Intra-Entity Transfers Other than Inventory (Note 12) | $ (5,961) | $ (5,961) | |||
Beginning Balance (in 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 (in shares) | 881 | ||||
Issuance of common stock under stock plans | 14,811 | $ 2 | 14,809 | ||
Repurchase of common stock (in shares) | (2,356) | ||||
Repurchase of common stock | (121,308) | $ (5) | (121,303) | ||
Stock-based compensation expense | 22,196 | 22,196 | |||
Payment of dividends | (15,524) | (15,524) | |||
Net income | 93,413 | 93,413 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax of $(106) | (702) | (702) | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (269) | (269) | |||
Foreign currency translation adjustment | $ (3,197) | (3,197) | |||
Ending Balance (in shares) at Jul. 01, 2018 | 172,032 | 172,032 | |||
Ending Balance at Jul. 01, 2018 | $ 1,079,132 | $ 344 | $ 498,343 | $ 619,212 | $ (38,767) |
Consolidated Statement of Shar9
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||
Tax effect of unrealized gain (loss) on available-for-sale investments | $ 8 | $ 58 | $ (106) | $ 150 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 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 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 July 1, 2018 , and the results of its operations for the three-month and six-month periods ended July 1, 2018 and July 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 and six-month periods ended July 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. On-site support services that are provided to the customer after the solution is deployed are accounted for as a separate performance obligation. 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 goods 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, is typically recognized over the time the service is 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 designated site, the significant risks and rewards of ownership transfer to the customer only upon validation. Revenue for on-site support services related to these solutions is recognized over the time the service is provided. 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 | 6 Months Ended |
Jul. 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 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 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 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. Although this ASU is required to be applied using a modified retrospective approach, the Financial Accounting Standards Board is reportedly in the final stages of issuing an optional transition method allowing entities to apply the amendments of this Update as a cumulative-effect adjustment to retained earnings. Management will continue to monitor the final implementation guidance to determine the adoption method. 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 reviewing all leases in scope, completing the implementation of the lease accounting software, and drafting the internal lease accounting policy and the related processes, internal controls, and disclosures. Accounting Standards Update (ASU) 2016-13, "Financial Instruments - Measurement of Credit Losses" ASU 2016-13 applies to all reporting entities holding financial assets that are not accounted for at fair value through net income (debt securities). The amendments in this Update eliminate the probable initial recognition threshold to recognize a credit loss under current 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) 2018-01, "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 does not expect ASU 2018-01 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2018-02, "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 2018-02 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2018-07, "Compensation - Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting" ASU 2018-07 applies to all entities that enter into share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this Update expand the scope of Topic 718, Compensation - Stock Compensation, to include share-based payments transactions to nonemployees. Changes to the accounting for nonemployee awards as a result of this Update include: 1) equity-classified nonemployee share-based payment awards are measured at the grant date, instead of the previous requirement to remeasure the awards through the performance completion date, 2) for awards with performance conditions, compensation cost is recognized when the achievement of the performance condition is probable, rather than upon achievement, and 3) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting is eliminated. This Update clarifies that Topic 718 does not apply to financing transactions or awards granted to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within that fiscal year. An entity should only remeasure liability-classified awards that have not been settled by the date of adoption and equity-classified awards for which the measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Management does not expect ASU 2018-07 to have a material impact on the Company's financial statements and disclosures. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 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 July 1, 2018 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 5,055 $ — $ — Corporate bonds — 324,801 — Treasury bills — 136,377 — Asset-backed securities — 102,980 — Agency bonds — 35,181 — Sovereign bonds — 16,346 — Municipal bonds — 9,996 — Economic hedge forward contracts — 88 — Liabilities: Economic hedge forward contracts — (86 ) — Contingent consideration liabilities — — 2,303 The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1. The Company’s debt securities and forward contracts are reported at fair value based upon model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial assets and liabilities, and in doing so, considers valuations provided by a large, third-party pricing service. For debt securities, this service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks. The Company did not record an other-than-temporary impairment of these financial assets during the six -month period ended July 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 liability measured at fair value using Level 3 inputs for the six-month period ended July 1, 2018 (in thousands): Balance as of December 31, 2017 $ 3,557 Fair value adjustment to Manatee contingent consideration (1,350 ) Fair value adjustment to GVi contingent consideration 988 Fair value adjustment to Chiaro contingent consideration 108 Payment of GVi contingent consideration (1,000 ) Balance as of July 1, 2018 $ 2,303 Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis Non-financial assets such as property, plant and equipment, goodwill, and intangible assets are required to be measured at fair value only when an impairment loss is recognized. The Company did not record an impairment charge related to these assets during the six -month periods ended July 1, 2018 and July 2, 2017. |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 6 Months Ended |
Jul. 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): July 1, 2018 December 31, 2017 Cash $ 124,147 $ 97,951 Money market instruments 5,055 8,631 Cash and cash equivalents 129,202 106,582 Treasury bills 136,377 150,371 Corporate bonds 116,347 47,395 Asset-backed securities 55,240 59,203 Agency bonds 29,247 10,608 Municipal bonds 9,154 8,805 Sovereign bonds 7,375 21,579 Short-term investments 353,740 297,961 Corporate bonds 208,454 296,014 Asset-backed securities 47,740 71,727 Sovereign bonds 8,971 13,147 Agency bonds 5,934 14,890 Municipal bonds 842 4,204 Treasury bills — 23,459 Long-term investments 271,941 423,441 $ 754,883 $ 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; agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing; municipal bonds consist of debt securities issued by state and local government entities; and sovereign bonds consist of direct debt issued by foreign governments. All securities are denominated in U.S. Dollars. The following table summarizes the Company’s available-for-sale investments as of July 1, 2018 (in thousands): Amortized Gross Gross Fair Value Short-term: Treasury bills $ 136,706 $ 3 $ (332 ) 136,377 Corporate bonds 116,659 59 (371 ) 116,347 Asset-backed securities 55,459 — (219 ) 55,240 Agency bonds 29,248 — (1 ) 29,247 Municipal bonds 9,165 — (11 ) 9,154 Sovereign bonds 7,400 1 (26 ) 7,375 Long-term: Corporate bonds 208,382 636 (564 ) 208,454 Asset-backed securities 48,033 12 (305 ) 47,740 Sovereign bonds 8,977 35 (41 ) 8,971 Agency bonds 5,930 4 — 5,934 Municipal bonds 855 — (13 ) 842 $ 626,814 $ 750 $ (1,883 ) $ 625,681 The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of July 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 $ 139,225 $ (713 ) $ 22,908 $ (222 ) $ 162,133 $ (935 ) Treasury bills 84,309 (149 ) 48,464 (183 ) 132,773 (332 ) Asset-backed securities 90,411 (496 ) 4,462 (28 ) 94,873 (524 ) Agency bonds 29,246 (1 ) — — 29,246 (1 ) Sovereign bonds 3,562 (9 ) 4,581 (58 ) 8,143 (67 ) Municipal bonds 3,692 (24 ) — — 3,692 (24 ) $ 350,445 $ (1,392 ) $ 80,415 $ (491 ) $ 430,860 $ (1,883 ) As of July 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 $308,000 and $61,000 , respectively, during the three-month period ended July 1, 2018 and $55,000 and $13,000 , respectively, during the three-month period ended July 2, 2017 . The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $363,000 and $94,000 , respectively, during the six-month period ended July 1, 2018 and $143,000 and $36,000 , respectively, during the six-month period ended July 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 accumulated other comprehensive income (loss). The following table presents the effective maturity dates of the Company’s available-for-sale investments as of July 1, 2018 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Corporate bonds $ 116,347 $ 96,004 $ 71,890 $ 29,491 $ 7,704 $ 3,365 $ 324,801 Treasury bills 136,377 — — — — — 136,377 Asset-backed securities 55,240 31,023 2,178 4,320 5,809 4,410 102,980 Agency bonds 29,247 — — — 5,934 — 35,181 Sovereign bonds 7,375 5,963 3,008 — — — 16,346 Municipal bonds 9,154 — 842 — — — 9,996 $ 353,740 $ 132,990 $ 77,918 $ 33,811 $ 19,447 $ 7,775 $ 625,681 |
Inventories
Inventories | 6 Months Ended |
Jul. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): July 1, 2018 December 31, 2017 Raw materials $ 46,020 $ 33,927 Work-in-process — 2,114 Finished goods 43,536 31,882 $ 89,556 $ 67,923 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jul. 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 5,400 8,287 Customer relationships 8,607 5,459 3,148 Non-compete agreements 370 154 216 Balance as of July 1, 2018 $ 60,724 $ 49,073 $ 11,651 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 July 1, 2018, estimated future amortization expense related to intangible assets is as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2018 $ 1,538 2019 2,701 2020 2,185 2021 2,017 2022 1,691 2023 989 Thereafter 530 $ 11,651 |
Warranty Obligations
Warranty Obligations | 6 Months Ended |
Jul. 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 2,222 Fulfillment of warranty obligations (1,559 ) Foreign exchange rate changes (117 ) Balance as of July 1, 2018 $ 5,247 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jul. 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): July 1, 2018 December 31, 2017 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Euro 17,000 $ 19,897 — $ — Japanese Yen 790,000 8,423 455,000 4,049 Swiss Franc 2,425 2,879 1,365 1,401 Hungarian Forint 655,000 2,756 545,000 2,110 British Pound 2,430 2,142 1,650 2,232 Korean Won 1,875,000 1,968 1,825,000 1,708 Taiwanese Dollar 47,600 1,837 37,725 1,278 Canadian Dollar 855 753 — — Singapore Dollar 700 602 — — Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): Asset Derivatives Liability Derivatives Balance Fair Value Balance Fair Value Sheet July 1, 2018 December 31, 2017 Sheet July 1, 2018 December 31, 2017 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 88 $ 16 Accrued expenses $ 86 $ 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 July 1, 2018 December 31, 2017 July 1, 2018 December 31, 2017 Gross amounts of recognized assets $ 88 $ 16 Gross amounts of recognized liabilities $ 86 $ 13 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 88 $ 16 Net amount of liabilities presented $ 86 $ 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 Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ — $ 60 $ — $ 60 Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ — $ 9 $ — $ (46 ) 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 $ — $ 9 $ — $ (35 ) 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) $ (354 ) $ 177 $ (665 ) $ 96 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 6 Months Ended |
Jul. 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 July 1, 2018 , the Company had 20,388,502 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 six -month period ended July 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 2,119 56.03 Exercised (881 ) 16.82 Forfeited or expired (373 ) 32.68 Outstanding as of July 1, 2018 13,591 $ 30.39 7.62 $ 223,515 Exercisable as of July 1, 2018 4,781 $ 19.98 6.17 $ 117,767 Options vested or expected to vest as of July 1, 2018 (1) 12,177 $ 29.20 7.49 $ 210,965 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: Three-months Ended Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Risk-free rate 2.9 % 2.4 % 2.9 % 2.4 % Expected dividend yield 0.32 % 0.39 % 0.32 % 0.39 % Expected volatility 39 % 41 % 39 % 41 % Expected term (in years) 5.4 5.2 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. Each year during the first quarter, the company revises its estimated forfeiture rate. This resulted in an increase to compensation expense of $1,283,000 in 2018 and a decrease to compensation expense of $673,000 in 2017. The weighted-average grant-date fair values of stock options granted during the three-month periods ended July 1, 2018 and July 2, 2017 were $21.63 and $15.51 , respectively. The weighted-average grant-date fair values of stock options granted during the six-month periods ended July 1, 2018 and July 2, 2017 were $21.62 and $14.98 , respectively. The total intrinsic values of stock options exercised for the three-month periods ended July 1, 2018 and July 2, 2017 were $4,902,000 and $19,408,000 , respectively. The total intrinsic values of stock options exercised for the six-month periods ended July 1, 2018 and July 2, 2017 were $32,991,000 and $72,451,000 , respectively. The total fair values of stock options vested for the three-month periods ended July 1, 2018 and July 2, 2017 were $887,000 and $725,000 , respectively. The total fair values of stock options vested for the six-month periods ended July 1, 2018 and July 2, 2017 were $26,560,000 and $18,713,000 , respectively. As of July 1, 2018 , total unrecognized compensation expense related to non-vested stock options was $56,124,000 , which is expected to be recognized over a weighted-average period of 1.80 years. The following table summarizes the Company's restricted stock activity for the six-month period ended July 1, 2018 : Shares (in thousands) Weighted-Average Grant Fair Value Aggregate Intrinsic Value (in thousands) Nonvested as of December 31, 2017 20 $ 17.03 Granted — — Vested (20 ) 17.03 993 Forfeited or expired — — Nonvested as of July 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 was then amortized over the period of vesting until the restrictions lapsed. These restricted shares became fully vested in 2018. Participants were entitled to dividends on restricted stock awards, but only receive those amounts if the shares vest. The sale or transfer of these shares was restricted during the vesting period. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended July 1, 2018 were $9,002,000 and $1,607,000 , respectively, and for the three-month period ended July 2, 2017 were $7,846,000 and $2,583,000 , respectively. The total stock-based compensation expense and the related income tax benefit recognized for the six-month period ended July 1, 2018 were $22,196,000 and $3,954,000 , respectively, and for the six-month period ended July 2, 2017 were $15,329,000 and $5,022,000 , respectively. No compensation expense was capitalized as of July 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 Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Cost of revenue $ 557 $ 454 $ 1,354 $ 884 Research, development, and engineering 3,154 2,715 7,969 5,325 Selling, general, and administrative 5,291 4,677 12,873 9,120 $ 9,002 $ 7,846 $ 22,196 $ 15,329 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jul. 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 July 1, 2018, the Company had 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 were completed in the three-month period ended April 1, 2018. 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 July 1, 2018, the Company had repurchased 1,553,000 shares at a cost of $76,108,000 under this program, leaving a remaining authorized balance of $73,892,000 . Total stock repurchases in the six-month period ended July 1, 2018 amounted to $121,308,000 . 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 | 6 Months Ended |
Jul. 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 Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Income tax provision at federal statutory corporate tax rate 21 % 35 % 21 % 35 % State income taxes, net of federal benefit 2 % 1 % 2 % 1 % Foreign tax rate differential (7 )% (18 )% (7 )% (18 )% Tax credit (1 )% (1 )% (1 )% (1 )% Discrete tax benefit related to stock option exercises (1 )% (9 )% (5 )% (19 )% Other 2 % 1 % 1 % 1 % Income tax provision 16 % 9 % 11 % (1 )% 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 and six-month periods ended July 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 permanently reinvested to provide funds for international expansion. The Company is tax resident in numerous jurisdictions around the world and has identified its major jurisdictions as the United States, Ireland, and China. The statutory tax rate is 12.5% in Ireland and 25% in China, compared to the U.S. federal statutory corporate tax rate of 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 percentage points for the three-month and six -month periods ended July 1, 2018 , and a decrease in the effective tax rate by 18 percentage points for the three-month and six-month periods ended July 2, 2017 . 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 1 and 9 percentage points for the three-month periods ended July 1, 2018 and July 2, 2017 , respectively, and a decrease of the effective tax rate by 5 and 19 percentage points for the six -month periods ended July 1, 2018 and July 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 six -month period ended July 1, 2018 , the Company recorded a $879,000 increase in reserves for income taxes, net of deferred tax benefit. Estimated interest and penalties included in these amounts totaled $136,000 for the six -month period ended July 1, 2018 . The Company’s reserve for income taxes, including gross interest and penalties, was $8,427,000 as of July 1, 2018 , which included $7,399,000 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 $924,000 . 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 | 6 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares | Weighted-Average Shares Weighted-average shares were calculated as follows (in thousands): Three-months Ended Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Basic weighted-average common shares outstanding 172,370 173,278 172,825 172,960 Effect of dilutive stock options 4,779 5,950 5,593 5,944 Weighted-average common and common-equivalent shares outstanding 177,149 179,228 178,418 178,904 Stock options to purchase 2,959,000 and 2,032,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month and six-month periods ended July 1, 2018, respectively, and 3,792,000 and 2,715,000 for the same periods in 2017, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 01, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 30, 2018, the Company’s Board of Directors declared a cash dividend of $0.045 per share. The dividend is payable August 31, 2018 to all shareholders of record as of the close of business on August 17, 2018 . |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 01, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | 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. On-site support services that are provided to the customer after the solution is deployed are accounted for as a separate performance obligation. 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 goods 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, is typically recognized over the time the service is 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 designated site, the significant risks and rewards of ownership transfer to the customer only upon validation. Revenue for on-site support services related to these solutions is recognized over the time the service is provided. 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 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 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 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. Although this ASU is required to be applied using a modified retrospective approach, the Financial Accounting Standards Board is reportedly in the final stages of issuing an optional transition method allowing entities to apply the amendments of this Update as a cumulative-effect adjustment to retained earnings. Management will continue to monitor the final implementation guidance to determine the adoption method. 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 reviewing all leases in scope, completing the implementation of the lease accounting software, and drafting the internal lease accounting policy and the related processes, internal controls, and disclosures. Accounting Standards Update (ASU) 2016-13, "Financial Instruments - Measurement of Credit Losses" ASU 2016-13 applies to all reporting entities holding financial assets that are not accounted for at fair value through net income (debt securities). The amendments in this Update eliminate the probable initial recognition threshold to recognize a credit loss under current 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) 2018-01, "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 does not expect ASU 2018-01 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2018-02, "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 2018-02 to have a material impact on the Company's financial statements and disclosures. Accounting Standards Update (ASU) 2018-07, "Compensation - Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting" ASU 2018-07 applies to all entities that enter into share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this Update expand the scope of Topic 718, Compensation - Stock Compensation, to include share-based payments transactions to nonemployees. Changes to the accounting for nonemployee awards as a result of this Update include: 1) equity-classified nonemployee share-based payment awards are measured at the grant date, instead of the previous requirement to remeasure the awards through the performance completion date, 2) for awards with performance conditions, compensation cost is recognized when the achievement of the performance condition is probable, rather than upon achievement, and 3) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting is eliminated. This Update clarifies that Topic 718 does not apply to financing transactions or awards granted to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within that fiscal year. An entity should only remeasure liability-classified awards that have not been settled by the date of adoption and equity-classified awards for which the measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Management does not expect ASU 2018-07 to have a material impact on the Company's financial statements and disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 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 July 1, 2018 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 5,055 $ — $ — Corporate bonds — 324,801 — Treasury bills — 136,377 — Asset-backed securities — 102,980 — Agency bonds — 35,181 — Sovereign bonds — 16,346 — Municipal bonds — 9,996 — Economic hedge forward contracts — 88 — Liabilities: Economic hedge forward contracts — (86 ) — Contingent consideration liabilities — — 2,303 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the activity for the Company's liability measured at fair value using Level 3 inputs for the six-month period ended July 1, 2018 (in thousands): Balance as of December 31, 2017 $ 3,557 Fair value adjustment to Manatee contingent consideration (1,350 ) Fair value adjustment to GVi contingent consideration 988 Fair value adjustment to Chiaro contingent consideration 108 Payment of GVi contingent consideration (1,000 ) Balance as of July 1, 2018 $ 2,303 |
Cash, Cash Equivalents, and I25
Cash, Cash Equivalents, and Investments (Tables) | 6 Months Ended |
Jul. 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): July 1, 2018 December 31, 2017 Cash $ 124,147 $ 97,951 Money market instruments 5,055 8,631 Cash and cash equivalents 129,202 106,582 Treasury bills 136,377 150,371 Corporate bonds 116,347 47,395 Asset-backed securities 55,240 59,203 Agency bonds 29,247 10,608 Municipal bonds 9,154 8,805 Sovereign bonds 7,375 21,579 Short-term investments 353,740 297,961 Corporate bonds 208,454 296,014 Asset-backed securities 47,740 71,727 Sovereign bonds 8,971 13,147 Agency bonds 5,934 14,890 Municipal bonds 842 4,204 Treasury bills — 23,459 Long-term investments 271,941 423,441 $ 754,883 $ 827,984 |
Summary of Available-for-Sale Investments | The following table summarizes the Company’s available-for-sale investments as of July 1, 2018 (in thousands): Amortized Gross Gross Fair Value Short-term: Treasury bills $ 136,706 $ 3 $ (332 ) 136,377 Corporate bonds 116,659 59 (371 ) 116,347 Asset-backed securities 55,459 — (219 ) 55,240 Agency bonds 29,248 — (1 ) 29,247 Municipal bonds 9,165 — (11 ) 9,154 Sovereign bonds 7,400 1 (26 ) 7,375 Long-term: Corporate bonds 208,382 636 (564 ) 208,454 Asset-backed securities 48,033 12 (305 ) 47,740 Sovereign bonds 8,977 35 (41 ) 8,971 Agency bonds 5,930 4 — 5,934 Municipal bonds 855 — (13 ) 842 $ 626,814 $ 750 $ (1,883 ) $ 625,681 |
Gross Unrealized Losses and Fair Values for Available-for-Sale Investments | The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of July 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 $ 139,225 $ (713 ) $ 22,908 $ (222 ) $ 162,133 $ (935 ) Treasury bills 84,309 (149 ) 48,464 (183 ) 132,773 (332 ) Asset-backed securities 90,411 (496 ) 4,462 (28 ) 94,873 (524 ) Agency bonds 29,246 (1 ) — — 29,246 (1 ) Sovereign bonds 3,562 (9 ) 4,581 (58 ) 8,143 (67 ) Municipal bonds 3,692 (24 ) — — 3,692 (24 ) $ 350,445 $ (1,392 ) $ 80,415 $ (491 ) $ 430,860 $ (1,883 ) |
Effective Maturity Dates of Available-for-Sale Investments | The following table presents the effective maturity dates of the Company’s available-for-sale investments as of July 1, 2018 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Corporate bonds $ 116,347 $ 96,004 $ 71,890 $ 29,491 $ 7,704 $ 3,365 $ 324,801 Treasury bills 136,377 — — — — — 136,377 Asset-backed securities 55,240 31,023 2,178 4,320 5,809 4,410 102,980 Agency bonds 29,247 — — — 5,934 — 35,181 Sovereign bonds 7,375 5,963 3,008 — — — 16,346 Municipal bonds 9,154 — 842 — — — 9,996 $ 353,740 $ 132,990 $ 77,918 $ 33,811 $ 19,447 $ 7,775 $ 625,681 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): July 1, 2018 December 31, 2017 Raw materials $ 46,020 $ 33,927 Work-in-process — 2,114 Finished goods 43,536 31,882 $ 89,556 $ 67,923 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jul. 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 5,400 8,287 Customer relationships 8,607 5,459 3,148 Non-compete agreements 370 154 216 Balance as of July 1, 2018 $ 60,724 $ 49,073 $ 11,651 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 July 1, 2018, estimated future amortization expense related to intangible assets is as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2018 $ 1,538 2019 2,701 2020 2,185 2021 2,017 2022 1,691 2023 989 Thereafter 530 $ 11,651 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 6 Months Ended |
Jul. 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 2,222 Fulfillment of warranty obligations (1,559 ) Foreign exchange rate changes (117 ) Balance as of July 1, 2018 $ 5,247 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Forward Contracts Table | The Company had the following outstanding forward contracts (in thousands): July 1, 2018 December 31, 2017 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Euro 17,000 $ 19,897 — $ — Japanese Yen 790,000 8,423 455,000 4,049 Swiss Franc 2,425 2,879 1,365 1,401 Hungarian Forint 655,000 2,756 545,000 2,110 British Pound 2,430 2,142 1,650 2,232 Korean Won 1,875,000 1,968 1,825,000 1,708 Taiwanese Dollar 47,600 1,837 37,725 1,278 Canadian Dollar 855 753 — — Singapore Dollar 700 602 — — |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): Asset Derivatives Liability Derivatives Balance Fair Value Balance Fair Value Sheet July 1, 2018 December 31, 2017 Sheet July 1, 2018 December 31, 2017 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 88 $ 16 Accrued expenses $ 86 $ 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 July 1, 2018 December 31, 2017 July 1, 2018 December 31, 2017 Gross amounts of recognized assets $ 88 $ 16 Gross amounts of recognized liabilities $ 86 $ 13 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 88 $ 16 Net amount of liabilities presented $ 86 $ 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 Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Derivatives Designated as Hedging Instruments: Gains (losses) recorded in shareholders' equity (effective portion) Accumulated other comprehensive income (loss), net of tax $ — $ 60 $ — $ 60 Gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations (effective portion) Revenue $ — $ 9 $ — $ (46 ) 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 $ — $ 9 $ — $ (35 ) 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) $ (354 ) $ 177 $ (665 ) $ 96 |
Stock-Based Compensation Expe30
Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jul. 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 six -month period ended July 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 2,119 56.03 Exercised (881 ) 16.82 Forfeited or expired (373 ) 32.68 Outstanding as of July 1, 2018 13,591 $ 30.39 7.62 $ 223,515 Exercisable as of July 1, 2018 4,781 $ 19.98 6.17 $ 117,767 Options vested or expected to vest as of July 1, 2018 (1) 12,177 $ 29.20 7.49 $ 210,965 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. |
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted | The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: Three-months Ended Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Risk-free rate 2.9 % 2.4 % 2.9 % 2.4 % Expected dividend yield 0.32 % 0.39 % 0.32 % 0.39 % Expected volatility 39 % 41 % 39 % 41 % Expected term (in years) 5.4 5.2 5.3 5.3 |
Nonvested Restricted Stock Shares Activity | The following table summarizes the Company's restricted stock activity for the six-month period ended July 1, 2018 : Shares (in thousands) Weighted-Average Grant Fair Value Aggregate Intrinsic Value (in thousands) Nonvested as of December 31, 2017 20 $ 17.03 Granted — — Vested (20 ) 17.03 993 Forfeited or expired — — Nonvested as of July 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 Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Cost of revenue $ 557 $ 454 $ 1,354 $ 884 Research, development, and engineering 3,154 2,715 7,969 5,325 Selling, general, and administrative 5,291 4,677 12,873 9,120 $ 9,002 $ 7,846 $ 22,196 $ 15,329 |
Taxes (Tables)
Taxes (Tables) | 6 Months Ended |
Jul. 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 Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Income tax provision at federal statutory corporate tax rate 21 % 35 % 21 % 35 % State income taxes, net of federal benefit 2 % 1 % 2 % 1 % Foreign tax rate differential (7 )% (18 )% (7 )% (18 )% Tax credit (1 )% (1 )% (1 )% (1 )% Discrete tax benefit related to stock option exercises (1 )% (9 )% (5 )% (19 )% Other 2 % 1 % 1 % 1 % Income tax provision 16 % 9 % 11 % (1 )% |
Weighted-Average Shares (Tables
Weighted-Average Shares (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Weighted-Average Shares | Weighted-average shares were calculated as follows (in thousands): Three-months Ended Six-months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 Basic weighted-average common shares outstanding 172,370 173,278 172,825 172,960 Effect of dilutive stock options 4,779 5,950 5,593 5,944 Weighted-average common and common-equivalent shares outstanding 177,149 179,228 178,418 178,904 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Assets: | ||
Money market instruments | $ 5,055 | $ 8,631 |
Financial assets at fair value | 625,681 | |
Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 324,801 | |
Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 136,377 | |
Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 102,980 | |
Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 16,346 | |
Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 35,181 | |
Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 9,996 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 5,055 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 0 | |
Economic hedge forward contracts | 0 | |
Liabilities: | ||
Economic hedge forward contracts | (86) | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 324,801 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 136,377 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 102,980 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 16,346 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 35,181 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 9,996 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration liabilities | $ 2,303 |
Fair Value Measurements - Liabi
Fair Value Measurements - Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Payment of contingent consideration | $ (1,000) | $ 0 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 3,557 | |
Ending balance | 2,303 | |
Manatee | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities, Fair Value Adjustment | (1,350) | |
GVi | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities, Fair Value Adjustment | 988 | |
Payment of contingent consideration | (1,000) | |
Chiaro Technologies LLC [Member] | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Liabilities, Fair Value Adjustment | $ 108 |
Cash, Cash Equivalents, and I35
Cash, Cash Equivalents, and Investments (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Cash and Cash Equivalents [Abstract] | ||||
Gross realized gains on sale of investments | $ 308,000 | $ 55,000 | $ 363,000 | $ 143,000 |
Gross realized losses on sale of investments | $ 61,000 | $ 13,000 | $ 94,000 | $ 36,000 |
Cash, Cash Equivalents, and I36
Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 | Jul. 02, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | $ 124,147 | $ 97,951 | ||
Money market instruments | 5,055 | 8,631 | ||
Cash and cash equivalents | 129,202 | 106,582 | $ 68,266 | $ 79,641 |
Short-term investments | 353,740 | 297,961 | ||
Long-term investments | 271,941 | 423,441 | ||
Total | 754,883 | 827,984 | ||
Treasury Bills | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 136,377 | 150,371 | ||
Long-term investments | 0 | 23,459 | ||
Corporate Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 116,347 | 47,395 | ||
Long-term investments | 208,454 | 296,014 | ||
Asset-Backed Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 55,240 | 59,203 | ||
Long-term investments | 47,740 | 71,727 | ||
Sovereign Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 7,375 | 21,579 | ||
Long-term investments | 8,971 | 13,147 | ||
Agency Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 29,247 | 10,608 | ||
Long-term investments | 5,934 | 14,890 | ||
Municipal Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments | 9,154 | 8,805 | ||
Long-term investments | $ 842 | $ 4,204 |
Cash, Cash Equivalents, and I37
Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Detail) $ in Thousands | Jul. 01, 2018USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | $ 626,814 |
Gross unrealized gains | 750 |
Gross unrealized losses | (1,883) |
Fair value | 625,681 |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (332) |
Treasury Bills | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 136,706 |
Gross unrealized gains | 3 |
Gross unrealized losses | (332) |
Fair value | 136,377 |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (935) |
Corporate Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 116,659 |
Gross unrealized gains | 59 |
Gross unrealized losses | (371) |
Fair value | 116,347 |
Corporate Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 208,382 |
Gross unrealized gains | 636 |
Gross unrealized losses | (564) |
Fair value | 208,454 |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (524) |
Asset-Backed Securities | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 55,459 |
Gross unrealized gains | 0 |
Gross unrealized losses | (219) |
Fair value | 55,240 |
Asset-Backed Securities | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 48,033 |
Gross unrealized gains | 12 |
Gross unrealized losses | (305) |
Fair value | 47,740 |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (67) |
Sovereign Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 7,400 |
Gross unrealized gains | 1 |
Gross unrealized losses | (26) |
Fair value | 7,375 |
Sovereign Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 8,977 |
Gross unrealized gains | 35 |
Gross unrealized losses | (41) |
Fair value | 8,971 |
Agency Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Gross unrealized losses | (1) |
Agency Bonds | Short-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 29,248 |
Gross unrealized gains | 0 |
Gross unrealized losses | (1) |
Fair value | 29,247 |
Agency Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 5,930 |
Gross unrealized gains | 4 |
Gross unrealized losses | 0 |
Fair value | 5,934 |
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 | (11) |
Fair value | 9,154 |
Municipal Bonds | Long-Term Investments | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost | 855 |
Gross unrealized gains | 0 |
Gross unrealized losses | (13) |
Fair value | $ 842 |
Cash, Cash Equivalents, and I38
Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Detail) $ in Thousands | Jul. 01, 2018USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | $ 350,445 |
Unrealized losses, less than 12 months | (1,392) |
Fair value, 12 months or greater | 80,415 |
Unrealized losses, 12 months or greater | (491) |
Total fair value | 430,860 |
Total unrealized losses | (1,883) |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 84,309 |
Unrealized losses, less than 12 months | (149) |
Fair value, 12 months or greater | 48,464 |
Unrealized losses, 12 months or greater | (183) |
Total fair value | 132,773 |
Total unrealized losses | (332) |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 90,411 |
Unrealized losses, less than 12 months | (496) |
Fair value, 12 months or greater | 4,462 |
Unrealized losses, 12 months or greater | (28) |
Total fair value | 94,873 |
Total unrealized losses | (524) |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 3,562 |
Unrealized losses, less than 12 months | (9) |
Fair value, 12 months or greater | 4,581 |
Unrealized losses, 12 months or greater | (58) |
Total fair value | 8,143 |
Total unrealized losses | (67) |
Municipal Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 3,692 |
Unrealized losses, less than 12 months | (24) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 3,692 |
Total unrealized losses | (24) |
Agency Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 29,246 |
Unrealized losses, less than 12 months | (1) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 29,246 |
Total unrealized losses | (1) |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair value, less than 12 months | 139,225 |
Unrealized losses, less than 12 months | (713) |
Fair value, 12 months or greater | 22,908 |
Unrealized losses, 12 months or greater | (222) |
Total fair value | 162,133 |
Total unrealized losses | $ (935) |
Cash, Cash Equivalents, and I39
Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) $ in Thousands | Jul. 01, 2018USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | $ 353,740 |
1-2 years | 132,990 |
2-3 years | 77,918 |
3-4 years | 33,811 |
4-5 years | 19,447 |
5-7 years | 7,775 |
Fair value | 625,681 |
Corporate Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 116,347 |
1-2 years | 96,004 |
2-3 years | 71,890 |
3-4 years | 29,491 |
4-5 years | 7,704 |
5-7 years | 3,365 |
Fair value | 324,801 |
Treasury Bills | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 136,377 |
1-2 years | 0 |
2-3 years | 0 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 136,377 |
Asset-Backed Securities | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 55,240 |
1-2 years | 31,023 |
2-3 years | 2,178 |
3-4 years | 4,320 |
4-5 years | 5,809 |
5-7 years | 4,410 |
Fair value | 102,980 |
Sovereign Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 7,375 |
1-2 years | 5,963 |
2-3 years | 3,008 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | 16,346 |
Agency Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 29,247 |
1-2 years | 0 |
2-3 years | 0 |
3-4 years | 0 |
4-5 years | 5,934 |
5-7 years | 0 |
Fair value | 35,181 |
Municipal Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
1 year or less | 9,154 |
1-2 years | 0 |
2-3 years | 842 |
3-4 years | 0 |
4-5 years | 0 |
5-7 years | 0 |
Fair value | $ 9,996 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 46,020 | $ 33,927 |
Work-in-process | 0 | 2,114 |
Finished goods | 43,536 | 31,882 |
Inventories | $ 89,556 | $ 67,923 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 60,724 | $ 60,724 |
Accumulated Amortization | 49,073 | 47,535 |
Net Carrying Value | 11,651 | 13,189 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of fiscal 2018 | 1,538 | |
2,019 | 2,701 | |
2,020 | 2,185 | |
2,021 | 2,017 | |
2,022 | 1,691 | |
2,023 | 989 | |
Thereafter | 530 | |
Net Carrying Value | 11,651 | 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 | 5,400 | 4,181 |
Net Carrying Value | 8,287 | 9,506 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 8,287 | 9,506 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 8,607 | 8,607 |
Accumulated Amortization | 5,459 | 5,202 |
Net Carrying Value | 3,148 | 3,405 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 3,148 | 3,405 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 370 | 370 |
Accumulated Amortization | 154 | 92 |
Net Carrying Value | 216 | 278 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | $ 216 | $ 278 |
Warranty Obligations - Changes
Warranty Obligations - Changes in Warranty Obligations (Detail) $ in Thousands | 6 Months Ended |
Jul. 01, 2018USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 4,701 |
Provisions for warranties issued during the period | 2,222 |
Fulfillment of warranty obligations | (1,559) |
Foreign exchange rate changes | (117) |
Ending balance | $ 5,247 |
Derivative Instruments (Detail)
Derivative Instruments (Detail) | 6 Months Ended |
Jul. 01, 2018Category | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, Number of Instruments Held | 2 |
Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Maximum length of time hedged in cash flow hedge | 18 months |
Not Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Remaining maturity of foreign currency derivatives (up to) | 45 days |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Forward Contracts Table (Detail) - Not Designated as Hedging Instrument € in Thousands, ₩ in Thousands, ¥ in Thousands, £ in Thousands, SFr in Thousands, Ft in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Jul. 01, 2018HUF (Ft) | Jul. 01, 2018GBP (£) | Jul. 01, 2018CHF (SFr) | Jul. 01, 2018CAD ($) | Jul. 01, 2018SGD ($) | Jul. 01, 2018JPY (¥) | Jul. 01, 2018KRW (₩) | Jul. 01, 2018TWD ($) | Jul. 01, 2018EUR (€) | Jul. 01, 2018USD ($) | Dec. 31, 2017HUF (Ft) | Dec. 31, 2017GBP (£) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2017CAD ($) | Dec. 31, 2017SGD ($) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017KRW (₩) | Dec. 31, 2017TWD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) |
Euro Member Countries, Euro | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Outstanding forward contracts | € 17,000 | $ 19,897 | € 0 | $ 0 | ||||||||||||||||
Japanese Yen | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Outstanding forward contracts | ¥ 790,000 | 8,423 | ¥ 455,000 | 4,049 | ||||||||||||||||
Switzerland, Francs | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Outstanding forward contracts | SFr 2,425 | 2,879 | SFr 1,365 | 1,401 | ||||||||||||||||
Hungarian Forint | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Outstanding forward contracts | Ft 655,000 | 2,756 | Ft 545,000 | 2,110 | ||||||||||||||||
British Pound | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Outstanding forward contracts | £ 2,430 | 2,142 | £ 1,650 | 2,232 | ||||||||||||||||
Korean Won | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Outstanding forward contracts | ₩ 1,875,000 | 1,968 | ₩ 1,825,000 | 1,708 | ||||||||||||||||
Taiwanese Dollar | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Outstanding forward contracts | $ 47,600 | 1,837 | $ 37,725 | 1,278 | ||||||||||||||||
Canada, Dollars | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Outstanding forward contracts | $ 855 | 753 | $ 0 | 0 | ||||||||||||||||
Singapore Dollar | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Outstanding forward contracts | $ 700 | $ 602 | $ 0 | $ 0 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 88 | $ 16 |
Derivative liability | 86 | 13 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 88 | 16 |
Not Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 86 | $ 13 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized assets | $ 88 | $ 16 |
Gross amounts offset | 0 | 0 |
Net amount of assets presented | 88 | 16 |
Gross amounts of recognized liabilities | 86 | 13 |
Gross amounts offset | 0 | 0 |
Net amount of liabilities presented | $ 86 | $ 13 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) reclassified from accumulated other comprehensive income (loss) into current operations | $ 0 | $ 9 | $ 0 | $ (35) |
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 | 60 | 0 | 60 |
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 | 9 | 0 | (46) |
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 | 0 | 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 | 0 | 0 | 8 |
Designated as Hedging Instrument | Foreign Currency Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 |
Not Designated as Hedging Instrument | Foreign Currency Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in current operations | $ (354) | $ 177 | $ (665) | $ 96 |
Stock-Based Compensation Expe48
Stock-Based Compensation Expense (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2018USD ($)group$ / sharesshares | Apr. 01, 2018USD ($) | Jul. 02, 2017USD ($)$ / shares | Apr. 02, 2017USD ($) | Jul. 01, 2018USD ($)group$ / sharesshares | Jul. 02, 2017USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected dividend yield | 0.32% | 0.39% | 0.32% | 0.39% | ||
Groups within the employee population | group | 2 | 2 | ||||
Estimated annual forfeiture rate for unvested options for senior management | 8.00% | 8.00% | ||||
Estimated annual forfeiture rate for unvested options for all other employees | 12.00% | 12.00% | ||||
Increase (decrease) to compensation expense | $ 1,283,000 | $ 673,000 | ||||
Weighted-average grant-date fair values, in dollars per share | $ / shares | $ 21.63 | $ 15.51 | $ 21.62 | $ 14.98 | ||
Total intrinsic value | $ 4,902,000 | $ 19,408,000 | $ 32,991,000 | $ 72,451,000 | ||
Total fair values of stock options vest | 887,000 | 725,000 | 26,560,000 | 18,713,000 | ||
Unrecognized compensation expense | 56,124,000 | $ 56,124,000 | ||||
Weighted average period to be recognized | 1 year 9 months 18 days | |||||
Stock-based compensation expense | 9,002,000 | 7,846,000 | $ 22,196,000 | 15,329,000 | ||
Tax benefit from compensation expense | 1,607,000 | $ 2,583,000 | 3,954,000 | $ 5,022,000 | ||
Recognized period costs capitalized | $ 0 | $ 0 | ||||
Vesting period, performance-based restricted stock, years | 1 year | |||||
Vesting period, time-based restricted stock, years | 3 years | |||||
General Stock Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for stock option plans | 4 years | |||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant under stock option plans | shares | 20,388,502 | 20,388,502 | ||||
Expiration period from grant day | 10 years |
Stock-Based Compensation Expe49
Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jul. 01, 2018USD ($)$ / sharesshares | |
Shares (in thousands) | |
Outstanding, shares | shares | 12,726 |
Granted, shares | shares | 2,119 |
Exercised, shares | shares | (881) |
Forfeited or expired, shares | shares | (373) |
Outstanding, shares | shares | 13,591 |
Exercisable as of reporting date, shares | shares | 4,781 |
Options vested or expected to vest as of reporting date, shares | shares | 12,177 |
Weighted- Average Exercise Price | |
Outstanding, shares | $ / shares | $ 25.24 |
Granted, in dollars per share | $ / shares | 56.03 |
Exercised, in dollars per share | $ / shares | 16.82 |
Forfeited or expired, in dollars per share | $ / shares | 32.68 |
Outstanding, shares | $ / shares | 30.39 |
Exercisable as of reporting date, Weighted-Average Exercise Price, in dollars per share | $ / shares | 19.98 |
Weighted- Average Remaining Contractual Term (in years) | $ / shares | $ 29.20 |
Weighted- Average Remaining Contractual Term (in years) | |
Outstanding, in years | 7 years 7 months 13 days |
Exercisable, in years | 6 years 2 months 1 day |
Options vested or expected to vest, in years | 7 years 5 months 27 days |
Aggregate Intrinsic Value (in thousands) | |
Outstanding, in dollars | $ | $ 223,515 |
Exercisable, in dollars | $ | 117,767 |
Options vested or expected to vest, in dollars | $ | $ 210,965 |
Stock-Based Compensation Expe50
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Detail) | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Risk-free rate | 2.90% | 2.40% | 2.90% | 2.40% |
Expected dividend yield | 0.32% | 0.39% | 0.32% | 0.39% |
Expected volatility | 39.00% | 41.00% | 39.00% | 41.00% |
Expected term (in years) | 5 years 4 months 24 days | 5 years 2 months 12 days | 5 years 3 months 18 days | 5 years 3 months 18 days |
Stock-Based Compensation Expe51
Stock-Based Compensation Expense - Nonvested Restricted Stock Shares Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jul. 01, 2018USD ($)$ / sharesshares | |
Shares (in thousands) | |
Nonvested, shares | shares | 20 |
Granted, shares | shares | 0 |
Vested, shares | shares | (20) |
Forfeited or expired, shares | shares | 0 |
Nonvested, shares | shares | 0 |
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 | 17.03 |
Forfeited or expired, in dollars per share | $ / shares | 0 |
Nonvested, in dollars per share | $ / shares | $ 0 |
Aggregate Intrinsic Value (in thousands) | |
Vested | $ | $ 993 |
Nonvested as of July 1, 2018 | $ | $ 0 |
Stock-Based Compensation Expe52
Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 9,002 | $ 7,846 | $ 22,196 | $ 15,329 |
Cost of Revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 557 | 454 | 1,354 | 884 |
Research, Development, and Engineering Expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 3,154 | 2,715 | 7,969 | 5,325 |
Selling, General, and Administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 5,291 | $ 4,677 | $ 12,873 | $ 9,120 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Detail) - USD ($) shares in Thousands | 6 Months Ended | ||
Jul. 01, 2018 | Feb. 28, 2018 | Nov. 01, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period, Value | $ 121,308,000 | ||
Repurchase Program April 2017 [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized common stock to be repurchased | $ 100,000,000 | ||
Stock Repurchase Program, Aggregate Number of Shares Repurchased | 1,744 | ||
Stock Repurchase Program, Value | $ 100,000,000 | ||
Stock Repurchased During Period, Shares | 803 | ||
Stock repurchased during period, Value | $ 45,200,000 | ||
Repurchase Program February 2018 [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized common stock to be repurchased | $ 150,000,000 | ||
Stock Repurchased During Period, Shares | 1,553 | ||
Stock repurchased during period, Value | $ 76,108,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 73,892,000 | ||
Repurchase Program April 2017 and February 2018 [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period, Value | $ 121,308,000 |
Taxes - Reconciliation of Unite
Taxes - Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate, or Income Tax Provision (Detail) | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision at federal statutory corporate tax rate | 21.00% | 35.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 2.00% | 1.00% | 2.00% | 1.00% |
Foreign tax rate differential | (7.00%) | (18.00%) | (7.00%) | (18.00%) |
Tax credit | (1.00%) | (1.00%) | (1.00%) | (1.00%) |
Discrete tax benefit related to stock option exercises | (1.00%) | (9.00%) | (5.00%) | (19.00%) |
Other | 2.00% | 1.00% | 1.00% | 1.00% |
Income tax provision on continuing operations | 16.00% | 9.00% | 11.00% | (1.00%) |
Taxes (Detail)
Taxes (Detail) - USD ($) $ in Thousands | Jan. 01, 2018 | Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 |
Income Tax Contingency [Line Items] | ||||||
Income tax provision at federal statutory corporate tax rate | 21.00% | 35.00% | 21.00% | 35.00% | ||
Decrease in effective tax rate | 7.00% | 18.00% | 7.00% | 18.00% | ||
Decrease in effective tax rate for difference between deduction for tax purposes and compensation cost recognized from stock option exercises | 1.00% | 9.00% | 5.00% | 19.00% | ||
Increase in reserves for income taxes, net of deferred tax benefit | $ 879 | $ 879 | ||||
Interest and penalties included in reserve | 136 | |||||
Liability for uncertain tax positions | 8,427 | 8,427 | ||||
Reserve for income taxes classified as a noncurrent iability | 7,399 | 7,399 | $ 6,488 | |||
Reserve for income taxes classified an noncurrent deferred tax assets | 1,028 | 1,028 | ||||
Interest and penalties, gross | $ 924 | 924 | ||||
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 | |||||
Foreign Tax Authority | Revenue Commissioners, Ireland | ||||||
Income Tax Contingency [Line Items] | ||||||
Income tax provision at federal statutory corporate tax rate | 12.50% | |||||
Foreign Tax Authority | State Administration of Taxation, China | ||||||
Income Tax Contingency [Line Items] | ||||||
Income tax provision at federal statutory corporate tax rate | 25.00% | |||||
Domestic Tax Authority | ||||||
Income Tax Contingency [Line Items] | ||||||
Income tax provision at federal statutory corporate tax rate | 21.00% | |||||
Accounting Standards Update 2016-16 [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 5,961 |
Weighted-Average Shares (Detail
Weighted-Average Shares (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Earnings Per Share [Abstract] | ||||
Stock options to purchase anti-dilutive common stock | 2,959,000 | 3,792,000 | 2,032,000 | 2,715,000 |
Weighted-Average Shares - Calcu
Weighted-Average Shares - Calculation of Weighted-Average Shares (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average common shares outstanding | 172,370 | 173,278 | 172,825 | 172,960 |
Effect of dilutive stock options | 4,779 | 5,950 | 5,593 | 5,944 |
Weighted-average common and common-equivalent shares outstanding | 177,149 | 179,228 | 178,418 | 178,904 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Jul. 30, 2018USD ($) |
Subsequent Event [Line Items] | |
Dividends (in dollars per share) | $ 0.045 |
Dividends payable, date payable | Aug. 31, 2018 |
Dividends payable, date of record | Aug. 17, 2018 |