Cognex (CGNX) 10-Q29 Apr 192019 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2019shares
Document And Entity Information [Abstract]
Entity Registrant Name	COGNEX CORP
Entity Central Index Key	0000851205
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	171,536,645

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Income Statement [Abstract]
Revenues	$ 173,484	$ 169,567
Cost of revenue	46,284	40,198
Gross margin	127,200	129,369
Research, development, and engineering expenses	30,242	31,076
Selling, general, and administrative expenses	66,811	63,697
Operating income	30,147	34,596
Foreign currency gain (loss)	(248)	(134)
Investment income	4,905	3,240
Other income (expense)	927	277
Income before income tax expense	35,731	37,979
Income tax expense (benefit)	2,627	762
Net income	$ 33,104	$ 37,217
Net income per weighted-average common and common-equivalent share:
Basic (in dollars per share)	$ 0.19	$ 0.21
Diluted (in dollars per share)	$ 0.19	$ 0.21
Weighted-average common and common-equivalent shares outstanding:
Basic (in shares)	171,098	173,280
Diluted (in shares)	175,607	179,641
Cash dividends per common share	$ 0.0500	$ 0.045

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 33,104	$ 37,217
Available-for-sale investments:
Net unrealized gain (loss), net of tax of $268 and ($114) in 2019 and 2018, respectively	2,251	(1,192)
Reclassification of net realized (gain) loss into current operations	(40)	(22)
Net change related to available-for-sale investments	2,211	(1,214)
Foreign currency translation adjustments:
Foreign currency translation adjustments	218	4,056
Other comprehensive income (loss), net of tax	2,429	2,842
Total comprehensive income	$ 35,533	$ 40,059

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Statement of Comprehensive Income [Abstract]
Tax effect of unrealized gain (loss) on available-for-sale investments	$ 268	$ (114)
Tax effect of foreign currency translation adjustment	$ 0	$ 0

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 105,296	$ 108,212
Current investments	441,337	427,348
Accounts receivable, less reserves of $1,567 and $1,646 in 2019 and 2018, respectively	106,424	119,172
Unbilled revenue	10,202	8,312
Inventories	79,208	83,282
Prepaid expenses and other current assets	30,778	34,000
Total current assets	773,245	780,326
Non-current investments	317,054	262,039
Property, plant, and equipment, net	91,273	91,396
Operating Lease, Right-of-Use Asset	17,354	0
Goodwill	113,208	113,208
Intangible assets, net	9,344	10,113
Deferred income taxes	28,596	28,660
Other assets	3,698	3,925
Total assets	1,353,772	1,289,667
Current liabilities:
Accounts payable	20,529	16,230
Accrued expenses	48,948	60,220
Accrued income taxes	1,560	5,062
Deferred revenue and customer deposits	16,625	9,845
Operating Lease, Liability, Current	5,383	0
Total current liabilities	93,045	91,357
Operating Lease, Liability, Noncurrent	11,953	0
Deferred income taxes	0	962
Reserve for income taxes	7,748	7,106
Non-current accrued income taxes	51,113	51,113
Other liabilities	1,054	3,866
Total liabilities	164,913	154,404
Preferred Stock, Value, Outstanding	0	0
Shareholders’ equity:
Common stock, $.002 par value – Authorized: 300,000 shares in 2019 and 2018, respectively, issued and outstanding: 171,537 and 170,820 shares in 2019 and 2018, respectively	343	342
Additional paid-in capital	555,834	529,208
Retained earnings	670,754	646,214
Accumulated other comprehensive loss, net of tax	(38,072)	(40,501)
Total shareholders’ equity	1,188,859	1,135,263
Total liabilities and shareholders' equity	$ 1,353,772	$ 1,289,667

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Reserves for accounts receivable	$ 1,567	$ 1,646
Common stock, par value	$ 0.002	$ 0.002
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	171,537,000	170,820,000
Common stock, shares outstanding	171,537,000	170,820,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Cash flows from operating activities:
Net income	$ 33,104	$ 37,217
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	12,281	13,194
Depreciation of property, plant, and equipment	5,175	4,430
Amortization of intangible assets	769	769
Amortization of discounts or premiums on investments	(1,461)	56
Realized (gain) loss on sale of investments	(40)	(22)
Revaluation of contingent consideration	(985)	(442)
Change in deferred income taxes	(1,140)	(1,469)
Change in operating assets and liabilities:
Accounts receivable	12,827	24,830
Unbilled revenue	(1,890)	3,389
Inventories	4,073	(27,321)
Prepaid expenses and other current assets	3,191	(866)
Operating Lease, Payments, Use		0
Accounts payable	4,245	5,309
Accrued expenses	(11,708)	(9,927)
Accrued income taxes	(3,501)	186
Deferred revenue and customer deposits	6,760	5,877
Other	(439)	(424)
Net cash provided by operating activities	61,261	54,786
Cash flows from investing activities:
Purchases of investments	(258,596)	(118,108)
Maturities and sales of investments	193,572	144,337
Purchases of property, plant, and equipment	(5,078)	(13,270)
Net cash provided by (used in) investing activities	(70,102)	12,959
Cash flows from financing activities:
Issuance of common stock under stock plans	14,346	11,123
Repurchase of common stock	0	(69,202)
Payment of dividends	(8,564)	(7,787)
Net cash provided by (used in) financing activities	5,782	(65,866)
Effect of foreign exchange rate changes on cash and cash equivalents	143	1,111
Net change in cash and cash equivalents	(2,916)	2,990
Cash and cash equivalents at beginning of period	108,212	106,582
Cash and cash equivalents at end of period	$ 105,296	$ 109,572

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
Cumulative Effect of New Accounting Principle in Period of Adoption	$ (5,961)			$ (5,961)
Beginning Balance, Shares at Dec. 31, 2017		173,507
Beginning Balance at Dec. 31, 2017	1,095,673	$ 347	$ 461,338	668,587	$ (34,599)
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under stock plans, shares		697
Issuance of common stock under stock plans	11,123	$ 1	11,122
Stock Repurchased During Period, Shares		(1,256)
Stock Repurchased During Period, Value	(69,202)	$ 2		(69,200)
Stock-based compensation expense	13,194		13,194
Payment of dividends	(7,787)			(7,787)
Net income	37,217			37,217
Net unrealized gain (loss) on available-for-sale investments, net of tax of $268	(1,192)				(1,192)
Reclassification of net realized (gain) loss on the sale of available-for-sale investments	(22)				(22)
Foreign currency translation adjustment	4,056				4,056
Ending Balance, Shares at Apr. 01, 2018		172,948
Ending Balance at Apr. 01, 2018	$ 1,077,099	$ 346	485,654	622,856	(31,757)
Beginning Balance, Shares at Dec. 31, 2018	170,820	170,820
Beginning Balance at Dec. 31, 2018	$ 1,135,263	$ 342	529,208	646,214	(40,501)
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under stock plans, shares		717
Issuance of common stock under stock plans	14,346	$ 1	14,345
Stock-based compensation expense	12,281		12,281
Payment of dividends	(8,564)			(8,564)
Net income	33,104			33,104
Net unrealized gain (loss) on available-for-sale investments, net of tax of $268	2,251				2,251
Reclassification of net realized (gain) loss on the sale of available-for-sale investments	(40)				(40)
Foreign currency translation adjustment	$ 218				218
Ending Balance, Shares at Mar. 31, 2019	171,537	171,537
Ending Balance at Mar. 31, 2019	$ 1,188,859	$ 343	$ 555,834	$ 670,754	$ (38,072)

Consolidated Statement of Sha_2

Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Statement of Stockholders' Equity [Abstract]
Tax effect of unrealized gain (loss) on available-for-sale investments	$ 268	$ (114)

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2019
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 842 "Leases," Cognex Corporation (the "Company") has provided new disclosures related to leases 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, 2018 for a full description of other significant accounting policies. In the opinion of the management of the Company, the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments, and financial statement reclassifications necessary to present fairly the Company’s financial position as of March 31, 2019 , and the results of its operations for the three-month periods ended March 31, 2019 and April 1, 2018 , and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented. The results disclosed in the Consolidated Statements of Operations for the three-month period ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year. Leases The Company accounts for leases in accordance with Accounting Standard Codification (ASC) 842, "Leases." The core principle of ASC 842 is that a lessee should recognize on the balance sheet the assets and liabilities that arise from leases. At inception of a contract, the Company determines whether that contract is or contains a lease. The Company determines whether a contract contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset for a period of time in exchange for consideration. The Company has control of the asset if it has the right to direct the use of the asset and obtains substantially all of the economic benefits from the use of the asset throughout the period of use. As a practical expedient, the Company does not recognize a lease asset or lease liability for leases with a lease term of 12 months or less. In the determination of the lease term, the Company considers the existence of extension or termination options and the probability of those options being exercised. Lease contracts may include lease components and non-lease components, such as common area maintenance and utilities for property leases. As a practical expedient, the Company accounts for the non-lease components together with the lease components as a single lease component for all of its leases. The Company classifies a lease as a finance lease when it meets any of the following criteria at the lease commencement date: a) the lease transfers ownership of the underlying asset to the Company by the end of the lease term; b) the lease grants the Company an option to purchase the underlying asset that the Company is reasonably certain to exercise; c) the lease term is for the major part of the remaining economic life of the underlying asset (the Company considers a major part to be 75% or more of the remaining economic life of the underlying asset); d) the present value of the sum of the lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset (the Company considers substantially all the fair value to be 90% or more of the fair value of the underlying asset amount); e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria above are met, the Company classifies the lease as an operating lease. On the lease commencement date, the Company records a lease asset and lease liability on the balance sheet. The lease asset consists of: 1) the amount of the initial lease liability; 2) any lease payments made to the lessor at or before the lease commencement date, minus any lease incentives received; and 3) any initial direct cost incurred by the Company. Initial direct costs are incremental costs of a lease that would not have been incurred if the lease had not been obtained and are capitalized as part of the lease asset. The lease liability equals the present value of the future cash payments discounted using the Company's incremental borrowing rate. The Company’s incremental borrowing rate is the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments over a similar term, which is the three-month London Interbank Offered Rate (LIBOR) plus a 2.5% credit risk spread. Operating lease expense equals the total cash payments recognized on a straight-line basis over the lease term. The amortization of the lease asset is calculated as the straight-line lease expense less the accretion of the interest on the lease liability each period. The lease liability is reduced by the cash payment less the interest each period.

New Pronouncements

New Pronouncements	3 Months Ended
New Pronouncements	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Pronouncements	New Pronouncements 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 ASU eliminate the probable initial recognition threshold to recognize a credit loss under current U.S. GAAP and, instead, reflect an entity’s current estimate of all expected credit losses. In addition, this Update broadens the information an entity must consider in developing the credit loss estimate, including the use of reasonable and supportable forecasted information. The amendments in this ASU 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 ASU 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 ASU 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) 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software" ASU 2018-15 applies to entities that are a customer in a hosting arrangement that is a service contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Accordingly, the amendments in this ASU require an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Further, it requires the entity to expense the capitalized implementation costs over the term of the hosting arrangement. In addition, it requires the presentation of the expenses related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element of the arrangement and the classification of the payments for the capitalized implementation costs in the statement of cash flows in the same manner as the payments made for the fees associated with the hosting element. The amendments in this ASU are effective for public entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. Management does not expect ASU 2018-15 to have a material impact on the Company's financial statements and disclosures.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 31, 2019
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 March 31, 2019 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 10,883 — $ — Treasury bills — 295,106 — Corporate bonds — 289,873 — Asset-backed securities — 140,370 — Sovereign bonds — 21,791 — Agency bonds — 5,913 — Municipal bonds — 5,338 — Economic hedge forward contracts — 34 — Liabilities: Economic hedge forward contracts — 31 — Contingent consideration liabilities — — 1,569 The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1. The Company’s debt securities and forward contracts are reported at fair value based upon model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. Management is responsible for estimating the fair value of these financial assets and liabilities, and in doing so, considers valuations provided by a large, third-party pricing service. For debt securities, this service maintains regular contact with market makers, brokers, dealers, and analysts to gather information on market movement, direction, trends, and other specific data. They use this information to structure yield curves for various types of debt securities and arrive at the daily valuations. The Company's forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks. The Company did not record an other-than-temporary impairment of these financial assets during the three -month period ended March 31, 2019 . The Company's contingent consideration liabilities are reported at fair value based upon probability-adjusted present values of the consideration expected to be paid, using significant inputs that are not observable in the market, and are therefore classified as Level 3. Key assumptions used in these estimates include probability assessments with respect to the likelihood of achieving certain revenue milestones. The fair values of these contingent consideration liabilities were calculated using discount rates consistent with the level of risk of achievement, and are remeasured each reporting period with changes in fair value recorded in "Other income (expense)" on the Consolidated Statements of Operations. The following table summarizes the activity for the Company's liabilities measured at fair value using Level 3 inputs for the three-month period ended March 31, 2019 (in thousands): Balance as of December 31, 2018 $ 2,554 Fair value adjustment to Chiaro contingent consideration 75 Fair value adjustment to GVi contingent consideration (1,060 ) Balance as of March 31, 2019 $ 1,569 Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis Non-financial assets such as property, plant and equipment, goodwill, and intangible assets are required to be measured at fair value only when an impairment loss is recognized. The Company did not record an impairment charge related to these assets during the three -month period ended March 31, 2019 .

Cash, Cash Equivalents, and Inv

Cash, Cash Equivalents, and Investments	3 Months Ended
Cash, Cash Equivalents, and Investments	Mar. 31, 2019
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): March 31, 2019 December 31, 2018 Cash $ 94,413 $ 104,655 Money market instruments 10,883 3,557 Cash and cash equivalents 105,296 108,212 Treasury bills 189,808 198,477 Corporate bonds 137,228 137,871 Asset-backed securities 98,910 78,407 Sovereign bonds 10,900 8,101 Municipal bonds 4,491 4,492 Current investments 441,337 427,348 Corporate bonds 152,645 162,566 Treasury bills 105,298 32,760 Asset-backed securities 41,460 53,631 Sovereign bonds 10,891 6,316 Agency bonds 5,913 5,921 Municipal bonds 847 845 Non-current investments 317,054 262,039 $ 863,687 $ 797,599 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; sovereign bonds consist of direct debt issued by foreign governments; municipal bonds consist of debt securities issued by state and local government entities; and agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing. All securities are denominated in U.S. Dollars. The following table summarizes the Company’s available-for-sale investments as of March 31, 2019 (in thousands): Amortized Gross Gross Fair Value Current: Treasury bills $ 189,599 $ 211 $ (2 ) $ 189,808 Corporate bonds 137,294 87 (153 ) 137,228 Asset-backed securities 98,902 135 (127 ) 98,910 Sovereign bonds 10,898 14 (12 ) 10,900 Municipal bonds 4,492 — (1 ) 4,491 Non-current: Corporate bonds 152,668 329 (352 ) 152,645 Treasury bills 104,987 332 (21 ) 105,298 Asset-backed securities 41,342 130 (12 ) 41,460 Sovereign bonds 10,876 15 — 10,891 Agency bonds 5,930 — (17 ) 5,913 Municipal bonds 855 — (8 ) 847 $ 757,843 $ 1,253 $ (705 ) $ 758,391 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 March 31, 2019 (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 $ 63,106 $ (253 ) $ 74,227 $ (252 ) $ 137,333 $ (505 ) Treasury bills 62,560 (23 ) — — 62,560 (23 ) Asset-backed securities 5,476 (4 ) 38,434 (135 ) 43,910 (139 ) Sovereign bonds 3,458 — 4,628 (12 ) 8,086 (12 ) Agency bonds 5,913 (17 ) — — 5,913 (17 ) Municipal bonds 1,301 (1 ) 847 (8 ) 2,148 (9 ) $ 141,814 $ (298 ) $ 118,136 $ (407 ) $ 259,950 $ (705 ) As of March 31, 2019 , 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 $64,000 and $24,000 , respectively, during the three-month period ended March 31, 2019 and $55,000 and $33,000 , respectively, during the three-month period ended April 1, 2018 . These gains and losses are included in "Investment income" on the Consolidated Statement of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, are recorded in shareholders’ equity as other comprehensive income (loss). The following table presents the effective maturity dates of the Company’s available-for-sale investments as of March 31, 2019 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Treasury bills $ 189,808 $ 105,298 $ — $ — $ — $ — $ 295,106 Corporate bonds 137,228 102,129 35,329 12,360 2,827 — 289,873 Asset-backed securities 98,910 19,283 8,119 7,767 3,425 2,866 140,370 Sovereign bonds 10,900 3,499 7,392 — — — 21,791 Agency bonds — — — 5,913 — — 5,913 Municipal bonds 4,491 847 — — — — 5,338 $ 441,337 $ 231,056 $ 50,840 $ 26,040 $ 6,252 $ 2,866 $ 758,391

Inventories

Inventories	3 Months Ended
Inventories	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following (in thousands): March 31, 2019 December 31, 2018 Raw materials $ 37,491 $ 42,738 Work-in-process 2,891 3,435 Finished goods 38,826 37,109 $ 79,208 $ 83,282

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2019
Leases [Abstract]
Leases	Leases On January 1, 2019, the Company adopted Accounting Standards Codification (ASC) 842, “Leases,” using the transition method of adoption, which allowed the Company to apply the standard on a prospective basis with a cumulative-effect adjustment to the opening balance sheet as of the adoption date. Accordingly, the Company recorded lease assets of $17,522,000 , current lease liabilities of $4,736,000 , and non-current lease liabilities of $12,669,000 on its Consolidated Balance Sheet as of January 1, 2019. As part of the adoption, the Company elected a practical expedient package to be applied to all of its leases upon transition, and as a result, the Company did not reassess: 1) whether any expired or existing contracts contain leases; 2) the lease classification for any expired or existing leases; and 3) the accounting for initial direct costs for any existing leases. The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its operations. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. There were no options to extend or terminate that were included in the determination of the lease term for the leases outstanding as of March 31, 2019. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for the leases outstanding as of March 31, 2019. The total operating lease expense for the three-month period ended March 31, 2019 was $1,485,000 . The total operating lease cash payments for the three-month period ended March 31, 2019 was $1,401,000 . The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability was $169,000 for the three-month period ended March 31, 2019. Future operating lease cash payments are as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2019 $ 4,527 2020 4,929 2021 3,788 2022 2,596 2023 2,027 2024 839 Thereafter 310 $ 19,016 The discounted present value of the future lease cash payments resulted in a lease liability of $17,336,000 as of March 31, 2019. The weighted-average discount rate was 4.8% for the leases outstanding as of March 31, 2019. The weighted-average remaining lease term was 4.1 years for the leases outstanding as of March 31, 2019. The Company did not have any leases that have not yet commenced but that create significant rights and obligations as of March 31, 2019. The Company owns a building adjacent to its corporate headquarters that is partially occupied with a tenant who has a lease agreement that will expire in 2022. Rental income was $77,000 and $76,000 for the three-month period ended March 31, 2019 and April 1, 2018, respectively. Future minimum rental receipts under non-cancelable lease agreements are as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2019 $ 230 2020 307 2021 307 2022 307 $ 1,151

Intangible Assets

Intangible Assets	3 Months Ended
Intangible Assets	Mar. 31, 2019
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 7,230 6,457 Customer relationships 8,607 5,844 2,763 Non-compete agreements 370 246 124 Balance as of March 31, 2019 $ 60,724 $ 51,380 $ 9,344 Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 13,687 6,619 7,068 Customer relationships 8,607 5,716 2,891 Non-compete agreements 370 216 154 Balance as of December 31, 2018 $ 60,724 $ 50,611 $ 10,113 As of March 31, 2019, estimated future amortization expense related to intangible assets is as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2019 $ 1,932 2020 2,185 2021 2,017 2022 1,691 2023 989 2024 422 Thereafter 108 $ 9,344

Warranty Obligations

Warranty Obligations	3 Months Ended
Warranty Obligations	Mar. 31, 2019
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, 2018 $ 4,743 Provisions for warranties issued during the period 1,195 Fulfillment of warranty obligations (935 ) Balance as of March 31, 2019 $ 5,003

Derivative Instruments

Derivative Instruments	3 Months Ended
Derivative Instruments	Mar. 31, 2019
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 economic hedges to manage this risk. The economic hedges 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 Company had the following outstanding forward contracts (in thousands): March 31, 2019 December 31, 2018 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Euro 20,000 $ 22,514 23,000 $ 26,330 Japanese Yen 500,000 4,526 380,000 3,459 Korean Won 3,350,000 2,954 3,125,000 2,808 Hungarian Forint 810,000 2,840 750,000 2,685 British Pound 2,100 2,747 2,500 3,204 Taiwanese Dollar 54,200 1,761 55,000 1,807 Canadian Dollar 930 697 990 726 Singapore Dollar 500 369 700 514 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 March 31, 2019 December 31, 2018 Sheet March 31, 2019 December 31, 2018 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 34 $ 1 Accrued expenses $ 31 $ 106 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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Gross amounts of recognized assets $ 34 $ 1 Gross amounts of recognized liabilities $ 31 $ 106 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 34 $ 1 Net amount of liabilities presented $ 31 $ 106 Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended March 31, 2019 April 1, 2018 Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 505 $ (310 )

Revenue Recognition

Revenue Recognition	3 Months Ended
Revenue Recognition	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands): Three-months Ended March 31, 2019 April 1, 2018 Americas $ 65,156 $ 59,217 Europe 59,657 56,203 Greater China 22,810 27,159 Other Asia 25,861 26,988 $ 173,484 $ 169,567 The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months Ended March 31, 2019 April 1, 2018 Standard products and services $ 161,052 $ 158,399 Application-specific customer solutions 12,432 11,168 $ 173,484 $ 169,567 Costs to Fulfill a Contract Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $4,960,000 and $3,514,000 as of March 31, 2019 and December 31, 2018, respectively. Accounts Receivable, Contract Assets, and Contract Liabilities Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains reserves against its accounts receivable for potential credit losses. Credit losses recognized on accounts receivable were immaterial for the three-month periods ended March 31, 2019 and April 1, 2018, respectively. Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing for certain application-specific customer solutions contracts. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition. The following table summarizes the deferred revenue and customer deposits activity for the three-month period ended March 31, 2019 (in thousands): Balance as of December 31, 2018 $ 9,845 Increases to deferred revenue and customer deposits 12,015 Recognition of revenue (5,292 ) Foreign exchange rate changes 57 Balance as of March 31, 2019 $ 16,625 As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations, as our contracts have an original expected duration of less than one year.

Stock-Based Compensation Expens

Stock-Based Compensation Expense	3 Months Ended
Stock-Based Compensation Expense	Mar. 31, 2019
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 March 31, 2019 , the Company had 16,956,452 shares available for grant. Stock options are granted with an exercise price equal to the market value of the Company’s common stock at the grant date and generally vest over four or five years based upon continuous service and expire ten years from the grant date. The following table summarizes the Company’s stock option activity for the three -month period ended March 31, 2019 : Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2018 13,789 $ 31.73 Granted 2,761 51.49 Exercised (717 ) 20.03 Forfeited or expired (139 ) 41.73 Outstanding as of March 31, 2019 15,694 $ 35.65 7.63 $ 255,322 Exercisable as of March 31, 2019 6,289 $ 24.86 6.17 $ 166,524 Options vested or expected to vest as of March 31, 2019 (1) 13,860 $ 34.21 7.46 $ 244,429 (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 March 31, 2019 April 1, 2018 Risk-free rate 2.7 % 2.9 % Expected dividend yield 0.39 % 0.32 % Expected volatility 37 % 39 % Expected term (in years) 5.3 5.3 Risk-free rate The risk-free rate was based upon a treasury instrument whose term was consistent with the contractual term of the option. Expected dividend yield Generally, the current dividend yield is calculated by annualizing the cash dividend declared by the Company’s Board of Directors and dividing that result by the closing stock price on the grant date. Expected volatility The expected volatility was based upon a combination of historical volatility of the Company’s common stock over the contractual term of the option and implied volatility for traded options of the Company’s stock. Expected term The expected term was derived from the binomial lattice model from the impact of events that trigger exercises over time. The Company stratifies its employee population into two groups: one consisting of senior management and another consisting of all other employees. The Company currently applies an estimated annual forfeiture rate of 9% to all unvested options for senior management and a rate of 12% for all other employees. The Company revised its estimated forfeiture rates in the three-month period ended March 31, 2019, resulting in a decrease to compensation expense of $499,000 . The Company also revised its estimated forfeiture rates in the three-month period ended April 1, 2018, resulting in an increase to compensation expense of $1,283,000 . The weighted-average grant-date fair values of stock options granted during the three-month periods ended March 31, 2019 and April 1, 2018 were $18.59 and $21.62 , respectively. The total intrinsic values of stock options exercised for the three-month periods ended March 31, 2019 and April 1, 2018 were $22,579,000 and $28,088,000 , respectively. The total fair values of stock options vested for the three-month periods ended March 31, 2019 and April 1, 2018 were $29,972,000 and $25,674,000 , respectively. As of March 31, 2019 , total unrecognized compensation expense related to non-vested stock options was $75,985,000 , which is expected to be recognized over a weighted-average period of 2.14 years. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended March 31, 2019 were $12,281,000 and $2,222,000 , respectively, and for the three-month period ended April 1, 2018 were $13,194,000 and $2,347,000 , respectively. No compensation expense was capitalized as of March 31, 2019 or December 31, 2018 . 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 March 31, 2019 April 1, 2018 Cost of revenue $ 451 $ 797 Research, development, and engineering 4,467 4,815 Selling, general, and administrative 7,363 7,582 $ 12,281 $ 13,194

Stock Repurchase Program

Stock Repurchase Program	3 Months Ended
Stock Repurchase Program	Mar. 31, 2019
Equity [Abstract]
Stock Repurchase Program	Stock Repurchase Program In October 2018, the Company's Board of Directors authorized the repurchase of $200,000,000 of the Company's common stock. As of March 31, 2019, the Company repurchased 203,000 shares at a cost of $8,622,000 under this program. There were no shares repurchased in the three-month period ended March 31, 2019. The Company may repurchase shares under this program in future periods depending upon a variety of factors, including, among other things, the impact of dilution from employee stock options, stock price, share availability, and cash requirements.

Taxes

Taxes	3 Months Ended
Taxes	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Taxes	Taxes A reconciliation of the U.S. federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows: Three-months Ended March 31, 2019 April 1, 2018 Income tax expense at U.S federal statutory corporate tax rate 21 % 21 % State income taxes, net of federal benefit 1 % 1 % Foreign tax rate differential (9 )% (7 )% Tax credit — % (1 )% Discrete tax benefit related to stock option exercises (8 )% (13 )% Other discrete tax events — % — % Other 2 % 1 % Income tax expense 7 % 2 % Management has determined that earnings from its legal entity in China will be indefinitely reinvested to provide sufficient local funding for growth, and that earnings from all other jurisdictions will not be indefinitely reinvested. The Company is tax resident in numerous jurisdictions around the world and has identified its major tax 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 of 9 and 7 percentage points for the three-month periods ended March 31, 2019 and April 1, 2018, respectively. The excess tax benefit arising from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes from stock option exercises resulted in a decrease in the effective tax rate of 8 and 13 percentage points for the three-month periods ended March 31, 2019 and April 1, 2018, respectively. During the three -month period ended March 31, 2019 , the Company recorded a $622,000 increase in reserves for income taxes, net of deferred tax benefit. Estimated interest and penalties included in these amounts totaled $86,000 for the three -month period ended March 31, 2019 . The Company’s reserve for income taxes, including gross interest and penalties, was $8,776,000 as of March 31, 2019 , which included $7,748,000 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 $940,000 . 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 $1,250,000 to $1,350,000 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 2015 through 2018 remain open to examination by the Internal Revenue Service and various state tax authorities. The tax years 2014 through 2018 remain open to examination by various taxing authorities in other jurisdictions in which the Company operates.

Weighted-Average Shares

Weighted-Average Shares	3 Months Ended
Weighted-Average Shares	Mar. 31, 2019
Earnings Per Share [Abstract]
Weighted-Average Shares	Weighted-Average Shares Weighted-average shares were calculated as follows (in thousands): Three-months Ended March 31, 2019 April 1, 2018 Basic weighted-average common shares outstanding 171,098 173,280 Effect of dilutive stock options 4,509 6,361 Weighted-average common and common-equivalent shares outstanding 175,607 179,641 Stock options to purchase 4,832,000 and 1,339,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month periods ended March 31, 2019 and April 1, 2018, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive.

Subsequent Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 29, 2019, the Company’s Board of Directors declared a cash dividend of $0.050 per share. The dividend is payable on May 31, 2019 to all shareholders of record as of the close of business on May 17, 2019 .

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2019
Accounting Policies [Abstract]
Revenue Recognition	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 842 "Leases," Cognex Corporation (the "Company") has provided new disclosures related to leases 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, 2018 for a full description of other significant accounting policies. In the opinion of the management of the Company, the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments, and financial statement reclassifications necessary to present fairly the Company’s financial position as of March 31, 2019 , and the results of its operations for the three-month periods ended March 31, 2019 and April 1, 2018 , and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented. The results disclosed in the Consolidated Statements of Operations for the three-month period ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year. Leases The Company accounts for leases in accordance with Accounting Standard Codification (ASC) 842, "Leases." The core principle of ASC 842 is that a lessee should recognize on the balance sheet the assets and liabilities that arise from leases. At inception of a contract, the Company determines whether that contract is or contains a lease. The Company determines whether a contract contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset for a period of time in exchange for consideration. The Company has control of the asset if it has the right to direct the use of the asset and obtains substantially all of the economic benefits from the use of the asset throughout the period of use. As a practical expedient, the Company does not recognize a lease asset or lease liability for leases with a lease term of 12 months or less. In the determination of the lease term, the Company considers the existence of extension or termination options and the probability of those options being exercised. Lease contracts may include lease components and non-lease components, such as common area maintenance and utilities for property leases. As a practical expedient, the Company accounts for the non-lease components together with the lease components as a single lease component for all of its leases. The Company classifies a lease as a finance lease when it meets any of the following criteria at the lease commencement date: a) the lease transfers ownership of the underlying asset to the Company by the end of the lease term; b) the lease grants the Company an option to purchase the underlying asset that the Company is reasonably certain to exercise; c) the lease term is for the major part of the remaining economic life of the underlying asset (the Company considers a major part to be 75% or more of the remaining economic life of the underlying asset); d) the present value of the sum of the lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset (the Company considers substantially all the fair value to be 90% or more of the fair value of the underlying asset amount); e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of the criteria above are met, the Company classifies the lease as an operating lease. On the lease commencement date, the Company records a lease asset and lease liability on the balance sheet. The lease asset consists of: 1) the amount of the initial lease liability; 2) any lease payments made to the lessor at or before the lease commencement date, minus any lease incentives received; and 3) any initial direct cost incurred by the Company. Initial direct costs are incremental costs of a lease that would not have been incurred if the lease had not been obtained and are capitalized as part of the lease asset. The lease liability equals the present value of the future cash payments discounted using the Company's incremental borrowing rate. The Company’s incremental borrowing rate is the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments over a similar term, which is the three-month London Interbank Offered Rate (LIBOR) plus a 2.5% credit risk spread. Operating lease expense equals the total cash payments recognized on a straight-line basis over the lease term. The amortization of the lease asset is calculated as the straight-line lease expense less the accretion of the interest on the lease liability each period. The lease liability is reduced by the cash payment less the interest each period.
New Pronouncements	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 ASU eliminate the probable initial recognition threshold to recognize a credit loss under current U.S. GAAP and, instead, reflect an entity’s current estimate of all expected credit losses. In addition, this Update broadens the information an entity must consider in developing the credit loss estimate, including the use of reasonable and supportable forecasted information. The amendments in this ASU 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 ASU 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 ASU 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) 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software" ASU 2018-15 applies to entities that are a customer in a hosting arrangement that is a service contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Accordingly, the amendments in this ASU require an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Further, it requires the entity to expense the capitalized implementation costs over the term of the hosting arrangement. In addition, it requires the presentation of the expenses related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element of the arrangement and the classification of the payments for the capitalized implementation costs in the statement of cash flows in the same manner as the payments made for the fees associated with the hosting element. The amendments in this ASU are effective for public entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. Management does not expect ASU 2018-15 to have a material impact on the Company's financial statements and disclosures.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Mar. 31, 2019
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 March 31, 2019 (in thousands): Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets: Money market instruments $ 10,883 — $ — Treasury bills — 295,106 — Corporate bonds — 289,873 — Asset-backed securities — 140,370 — Sovereign bonds — 21,791 — Agency bonds — 5,913 — Municipal bonds — 5,338 — Economic hedge forward contracts — 34 — Liabilities: Economic hedge forward contracts — 31 — Contingent consideration liabilities — — 1,569
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table summarizes the activity for the Company's liabilities measured at fair value using Level 3 inputs for the three-month period ended March 31, 2019 (in thousands): Balance as of December 31, 2018 $ 2,554 Fair value adjustment to Chiaro contingent consideration 75 Fair value adjustment to GVi contingent consideration (1,060 ) Balance as of March 31, 2019 $ 1,569

Cash, Cash Equivalents, and I_2

Cash, Cash Equivalents, and Investments (Tables)	3 Months Ended
Cash, Cash Equivalents, and Investments (Tables)	Mar. 31, 2019
Cash and Cash Equivalents [Abstract]
Components of Cash, Cash Equivalents, and Investments	Cash, cash equivalents, and investments consisted of the following (in thousands): March 31, 2019 December 31, 2018 Cash $ 94,413 $ 104,655 Money market instruments 10,883 3,557 Cash and cash equivalents 105,296 108,212 Treasury bills 189,808 198,477 Corporate bonds 137,228 137,871 Asset-backed securities 98,910 78,407 Sovereign bonds 10,900 8,101 Municipal bonds 4,491 4,492 Current investments 441,337 427,348 Corporate bonds 152,645 162,566 Treasury bills 105,298 32,760 Asset-backed securities 41,460 53,631 Sovereign bonds 10,891 6,316 Agency bonds 5,913 5,921 Municipal bonds 847 845 Non-current investments 317,054 262,039 $ 863,687 $ 797,599
Summary of Available-for-Sale Investments	The following table summarizes the Company’s available-for-sale investments as of March 31, 2019 (in thousands): Amortized Gross Gross Fair Value Current: Treasury bills $ 189,599 $ 211 $ (2 ) $ 189,808 Corporate bonds 137,294 87 (153 ) 137,228 Asset-backed securities 98,902 135 (127 ) 98,910 Sovereign bonds 10,898 14 (12 ) 10,900 Municipal bonds 4,492 — (1 ) 4,491 Non-current: Corporate bonds 152,668 329 (352 ) 152,645 Treasury bills 104,987 332 (21 ) 105,298 Asset-backed securities 41,342 130 (12 ) 41,460 Sovereign bonds 10,876 15 — 10,891 Agency bonds 5,930 — (17 ) 5,913 Municipal bonds 855 — (8 ) 847 $ 757,843 $ 1,253 $ (705 ) $ 758,391
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 March 31, 2019 (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 $ 63,106 $ (253 ) $ 74,227 $ (252 ) $ 137,333 $ (505 ) Treasury bills 62,560 (23 ) — — 62,560 (23 ) Asset-backed securities 5,476 (4 ) 38,434 (135 ) 43,910 (139 ) Sovereign bonds 3,458 — 4,628 (12 ) 8,086 (12 ) Agency bonds 5,913 (17 ) — — 5,913 (17 ) Municipal bonds 1,301 (1 ) 847 (8 ) 2,148 (9 ) $ 141,814 $ (298 ) $ 118,136 $ (407 ) $ 259,950 $ (705 )
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 March 31, 2019 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-7 Years Total Treasury bills $ 189,808 $ 105,298 $ — $ — $ — $ — $ 295,106 Corporate bonds 137,228 102,129 35,329 12,360 2,827 — 289,873 Asset-backed securities 98,910 19,283 8,119 7,767 3,425 2,866 140,370 Sovereign bonds 10,900 3,499 7,392 — — — 21,791 Agency bonds — — — 5,913 — — 5,913 Municipal bonds 4,491 847 — — — — 5,338 $ 441,337 $ 231,056 $ 50,840 $ 26,040 $ 6,252 $ 2,866 $ 758,391

Inventories (Tables)

Inventories (Tables)	3 Months Ended
Inventories (Tables)	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following (in thousands): March 31, 2019 December 31, 2018 Raw materials $ 37,491 $ 42,738 Work-in-process 2,891 3,435 Finished goods 38,826 37,109 $ 79,208 $ 83,282

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2019
Leases [Abstract]
Schedule of operating lease payments	Future operating lease cash payments are as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2019 $ 4,527 2020 4,929 2021 3,788 2022 2,596 2023 2,027 2024 839 Thereafter 310 $ 19,016
Schedule of operating lease receipts	Future minimum rental receipts under non-cancelable lease agreements are as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2019 $ 230 2020 307 2021 307 2022 307 $ 1,151

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
Intangible Assets (Tables)	Mar. 31, 2019
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 7,230 6,457 Customer relationships 8,607 5,844 2,763 Non-compete agreements 370 246 124 Balance as of March 31, 2019 $ 60,724 $ 51,380 $ 9,344 Gross Carrying Value Accumulated Amortization Net Carrying Value Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 13,687 6,619 7,068 Customer relationships 8,607 5,716 2,891 Non-compete agreements 370 216 154 Balance as of December 31, 2018 $ 60,724 $ 50,611 $ 10,113
Schedule of Intangible Assets, Future Amortization Expense	As of March 31, 2019, estimated future amortization expense related to intangible assets is as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2019 $ 1,932 2020 2,185 2021 2,017 2022 1,691 2023 989 2024 422 Thereafter 108 $ 9,344

Warranty Obligations (Tables)

Warranty Obligations (Tables)	3 Months Ended
Warranty Obligations (Tables)	Mar. 31, 2019
Product Warranties Disclosures [Abstract]
Changes in Warranty Obligations	The changes in the warranty obligation were as follows (in thousands): Balance as of December 31, 2018 $ 4,743 Provisions for warranties issued during the period 1,195 Fulfillment of warranty obligations (935 ) Balance as of March 31, 2019 $ 5,003

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
Derivative Instruments (Tables)	Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Outstanding Forward Contracts Table	The Company had the following outstanding forward contracts (in thousands): March 31, 2019 December 31, 2018 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Euro 20,000 $ 22,514 23,000 $ 26,330 Japanese Yen 500,000 4,526 380,000 3,459 Korean Won 3,350,000 2,954 3,125,000 2,808 Hungarian Forint 810,000 2,840 750,000 2,685 British Pound 2,100 2,747 2,500 3,204 Taiwanese Dollar 54,200 1,761 55,000 1,807 Canadian Dollar 930 697 990 726 Singapore Dollar 500 369 700 514
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 March 31, 2019 December 31, 2018 Sheet March 31, 2019 December 31, 2018 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 34 $ 1 Accrued expenses $ 31 $ 106
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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Gross amounts of recognized assets $ 34 $ 1 Gross amounts of recognized liabilities $ 31 $ 106 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 34 $ 1 Net amount of liabilities presented $ 31 $ 106
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 March 31, 2019 April 1, 2018 Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 505 $ (310 )

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
Revenue Recognition (Tables)	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Schedule of Adoption of New Accounting Principles
Disaggregation of Revenue	The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands): Three-months Ended March 31, 2019 April 1, 2018 Americas $ 65,156 $ 59,217 Europe 59,657 56,203 Greater China 22,810 27,159 Other Asia 25,861 26,988 $ 173,484 $ 169,567 The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months Ended March 31, 2019 April 1, 2018 Standard products and services $ 161,052 $ 158,399 Application-specific customer solutions 12,432 11,168 $ 173,484 $ 169,567
Summary of Deferred Revenue and Customer Deposits Activity	The following table summarizes the deferred revenue and customer deposits activity for the three-month period ended March 31, 2019 (in thousands): Balance as of December 31, 2018 $ 9,845 Increases to deferred revenue and customer deposits 12,015 Recognition of revenue (5,292 ) Foreign exchange rate changes 57 Balance as of March 31, 2019 $ 16,625

Stock-Based Compensation Expe_2

Stock-Based Compensation Expense (Tables)	3 Months Ended
Stock-Based Compensation Expense (Tables)	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity for the three -month period ended March 31, 2019 : Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2018 13,789 $ 31.73 Granted 2,761 51.49 Exercised (717 ) 20.03 Forfeited or expired (139 ) 41.73 Outstanding as of March 31, 2019 15,694 $ 35.65 7.63 $ 255,322 Exercisable as of March 31, 2019 6,289 $ 24.86 6.17 $ 166,524 Options vested or expected to vest as of March 31, 2019 (1) 13,860 $ 34.21 7.46 $ 244,429 (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 March 31, 2019 April 1, 2018 Risk-free rate 2.7 % 2.9 % Expected dividend yield 0.39 % 0.32 % Expected volatility 37 % 39 % Expected term (in years) 5.3 5.3
Nonvested Restricted Stock Shares Activity
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 March 31, 2019 April 1, 2018 Cost of revenue $ 451 $ 797 Research, development, and engineering 4,467 4,815 Selling, general, and administrative 7,363 7,582 $ 12,281 $ 13,194

Taxes (Tables)

Taxes (Tables)	3 Months Ended
Taxes (Tables)	Mar. 31, 2019
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 U.S. federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows: Three-months Ended March 31, 2019 April 1, 2018 Income tax expense at U.S federal statutory corporate tax rate 21 % 21 % State income taxes, net of federal benefit 1 % 1 % Foreign tax rate differential (9 )% (7 )% Tax credit — % (1 )% Discrete tax benefit related to stock option exercises (8 )% (13 )% Other discrete tax events — % — % Other 2 % 1 % Income tax expense 7 % 2 %

Weighted-Average Shares (Tables

Weighted-Average Shares (Tables)	3 Months Ended
Weighted-Average Shares (Tables)	Mar. 31, 2019
Earnings Per Share [Abstract]
Calculation of Weighted-Average Shares	Weighted-average shares were calculated as follows (in thousands): Three-months Ended March 31, 2019 April 1, 2018 Basic weighted-average common shares outstanding 171,098 173,280 Effect of dilutive stock options 4,509 6,361 Weighted-average common and common-equivalent shares outstanding 175,607 179,641

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets:
Money market instruments	$ 10,883	$ 3,557
Financial assets at fair value	758,391
Corporate bonds
Assets:
Financial assets at fair value	289,873
Treasury bills
Assets:
Financial assets at fair value	295,106
Asset-backed securities
Assets:
Financial assets at fair value	140,370
Sovereign bonds
Assets:
Financial assets at fair value	21,791
Municipal bonds
Assets:
Financial assets at fair value	5,338
Agency bonds
Assets:
Financial assets at fair value	5,913
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Money market instruments	10,883
Economic hedge forward contracts	0
Liabilities:
Economic hedge forward contracts	0
Contingent consideration liabilities	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Treasury bills
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Asset-backed securities
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Sovereign bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Municipal bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Agency bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets:
Money market instruments	0
Economic hedge forward contracts	34
Liabilities:
Economic hedge forward contracts	31
Contingent consideration liabilities	0
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate bonds
Assets:
Financial assets at fair value	289,873
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Treasury bills
Assets:
Financial assets at fair value	295,106
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Assets:
Financial assets at fair value	140,370
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Sovereign bonds
Assets:
Financial assets at fair value	21,791
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Municipal bonds
Assets:
Financial assets at fair value	5,338
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2) \| Agency bonds
Assets:
Financial assets at fair value	5,913
Fair Value, Measurements, Recurring \| Unobservable Inputs (Level 3)
Assets:
Money market instruments	0
Economic hedge forward contracts	0
Liabilities:
Economic hedge forward contracts	0
Contingent consideration liabilities	1,569
Fair Value, Measurements, Recurring \| Unobservable Inputs (Level 3) \| Corporate bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Unobservable Inputs (Level 3) \| Treasury bills
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Unobservable Inputs (Level 3) \| Asset-backed securities
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Unobservable Inputs (Level 3) \| Sovereign bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Unobservable Inputs (Level 3) \| Municipal bonds
Assets:
Financial assets at fair value	0
Fair Value, Measurements, Recurring \| Unobservable Inputs (Level 3) \| Agency bonds
Assets:
Financial assets at fair value	$ 0

Fair Value Measurements - Liabi

Fair Value Measurements - Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Unobservable Inputs (Level 3) - Fair Value, Measurements, Recurring $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 2,554
Ending balance	1,569
Fair value adjustment to Chiaro contingent consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value adjustment to contingent consideration	75
Fair value adjustment to GVi contingent consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value adjustment to contingent consideration	$ (1,060)

Cash, Cash Equivalents, and I_3

Cash, Cash Equivalents, and Investments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Cash and Cash Equivalents [Abstract]
Gross realized gains on sale of investments	$ 64	$ 55
Gross realized losses on sale of investments	$ 24	$ 33

Cash, Cash Equivalents, and I_4

Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Apr. 01, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Cash	$ 94,413	$ 104,655
Money market instruments	10,883	3,557
Cash and cash equivalents	105,296	108,212	$ 109,572	$ 106,582
Current investments	441,337	427,348
Non-current investments	317,054	262,039
Total	863,687	797,599
Treasury bills
Debt Securities, Available-for-sale [Line Items]
Current investments	189,808	198,477
Long-term investments	105,298	32,760
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Current investments	98,910	78,407
Long-term investments	41,460	53,631
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Current investments	137,228	137,871
Long-term investments	152,645	162,566
Agency bonds
Debt Securities, Available-for-sale [Line Items]
Long-term investments	5,913	5,921
Sovereign bonds
Debt Securities, Available-for-sale [Line Items]
Current investments	10,900	8,101
Long-term investments	10,891	6,316
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Current investments	4,491	4,492
Long-term investments	$ 847	$ 845

Cash, Cash Equivalents, and I_5

Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 757,843
Gross unrealized gains	1,253
Gross unrealized losses	(705)
Fair value	758,391
Treasury bills
Debt Securities, Available-for-sale [Line Items]
Gross unrealized losses	(23)
Treasury bills \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	189,599
Gross unrealized gains	211
Gross unrealized losses	(2)
Fair value	189,808
Treasury bills \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	104,987
Gross unrealized gains	332
Gross unrealized losses	(21)
Fair value	105,298
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Gross unrealized losses	(505)
Corporate bonds \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	137,294
Gross unrealized gains	87
Gross unrealized losses	(153)
Fair value	137,228
Corporate bonds \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	152,668
Gross unrealized gains	329
Gross unrealized losses	(352)
Fair value	152,645
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Gross unrealized losses	(139)
Asset-backed securities \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	98,902
Gross unrealized gains	135
Gross unrealized losses	(127)
Fair value	98,910
Asset-backed securities \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	41,342
Gross unrealized gains	130
Gross unrealized losses	(12)
Fair value	41,460
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Gross unrealized losses	(9)
Municipal bonds \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	4,492
Gross unrealized gains	0
Gross unrealized losses	(1)
Fair value	4,491
Municipal bonds \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	855
Gross unrealized gains	0
Gross unrealized losses	(8)
Fair value	847
Sovereign bonds
Debt Securities, Available-for-sale [Line Items]
Gross unrealized losses	(12)
Sovereign bonds \| Short-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	10,898
Gross unrealized gains	14
Gross unrealized losses	(12)
Fair value	10,900
Sovereign bonds \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	10,876
Gross unrealized gains	15
Gross unrealized losses	0
Fair value	10,891
Agency bonds
Debt Securities, Available-for-sale [Line Items]
Gross unrealized losses	(17)
Agency bonds \| Long-Term Investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	5,930
Gross unrealized gains	0
Gross unrealized losses	(17)
Fair value	$ 5,913

Cash, Cash Equivalents, and I_6

Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Debt Securities, Available-for-sale [Line Items]
Fair value, less than 12 months	$ 141,814
Unrealized losses, less than 12 months	(298)
Fair value, 12 months or greater	118,136
Unrealized losses, 12 months or greater	(407)
Total fair value	259,950
Total unrealized losses	(705)
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Fair value, less than 12 months	63,106
Unrealized losses, less than 12 months	(253)
Fair value, 12 months or greater	74,227
Unrealized losses, 12 months or greater	(252)
Total fair value	137,333
Total unrealized losses	(505)
Treasury bills
Debt Securities, Available-for-sale [Line Items]
Fair value, less than 12 months	62,560
Unrealized losses, less than 12 months	(23)
Fair value, 12 months or greater	0
Unrealized losses, 12 months or greater	0
Total fair value	62,560
Total unrealized losses	(23)
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Fair value, less than 12 months	5,476
Unrealized losses, less than 12 months	(4)
Fair value, 12 months or greater	38,434
Unrealized losses, 12 months or greater	(135)
Total fair value	43,910
Total unrealized losses	(139)
Sovereign bonds
Debt Securities, Available-for-sale [Line Items]
Fair value, less than 12 months	3,458
Unrealized losses, less than 12 months	0
Fair value, 12 months or greater	4,628
Unrealized losses, 12 months or greater	(12)
Total fair value	8,086
Total unrealized losses	(12)
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Fair value, less than 12 months	1,301
Unrealized losses, less than 12 months	(1)
Fair value, 12 months or greater	847
Unrealized losses, 12 months or greater	(8)
Total fair value	2,148
Total unrealized losses	(9)
Agency bonds
Debt Securities, Available-for-sale [Line Items]
Fair value, less than 12 months	5,913
Unrealized losses, less than 12 months	(17)
Fair value, 12 months or greater	0
Unrealized losses, 12 months or greater	0
Total fair value	5,913
Total unrealized losses	$ (17)

Cash, Cash Equivalents, and I_7

Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Debt Securities, Available-for-sale [Line Items]
1 year or less	$ 441,337
1-2 years	231,056
2-3 years	50,840
3-4 years	26,040
4-5 years	6,252
5-7 years	2,866
Fair value	758,391
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
1 year or less	137,228
1-2 years	102,129
2-3 years	35,329
3-4 years	12,360
4-5 years	2,827
5-7 years	0
Fair value	289,873
Treasury bills
Debt Securities, Available-for-sale [Line Items]
1 year or less	189,808
1-2 years	105,298
2-3 years	0
3-4 years	0
4-5 years	0
5-7 years	0
Fair value	295,106
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
1 year or less	98,910
1-2 years	19,283
2-3 years	8,119
3-4 years	7,767
4-5 years	3,425
5-7 years	2,866
Fair value	140,370
Sovereign bonds
Debt Securities, Available-for-sale [Line Items]
1 year or less	10,900
1-2 years	3,499
2-3 years	7,392
3-4 years	0
4-5 years	0
5-7 years	0
Fair value	21,791
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
1 year or less	4,491
1-2 years	847
2-3 years	0
3-4 years	0
4-5 years	0
5-7 years	0
Fair value	5,338
Agency bonds
Debt Securities, Available-for-sale [Line Items]
1 year or less	0
1-2 years	0
2-3 years	0
3-4 years	5,913
4-5 years	0
5-7 years	0
Fair value	$ 5,913

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 37,491	$ 42,738
Work-in-process	2,891	3,435
Finished goods	38,826	37,109
Inventories	$ 79,208	$ 83,282

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Apr. 01, 2018	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
Lease assets	$ 17,354		$ 17,522	$ 0
Lease liability, current	5,383		4,736	0
Lease liability, noncurrent	11,953		$ 12,669	$ 0
Operating lease expense	1,485
Operating lease, payments	1,401
Lease expense excluded from lease liability	169
Lease liability	$ 17,336
Operating lease, weighted average discount rate (as a percent)	4.80%
Operating lease, weighted average remaining lease term	4 years 1 month 6 days
Rental lease income	$ 77	$ 76

Leases - Schedule of Future Ope

Leases - Schedule of Future Operating Lease Payments (Details) $ in Thousands	Mar. 31, 2019USD ($)
Leases [Abstract]
Remainder of fiscal 2019	$ 4,527
2020	4,929
2021	3,788
2022	2,596
2023	2,027
2024	839
Thereafter	310
Total operating lease payments	$ 19,016

Leases - Schedule of Lease Rece

Leases - Schedule of Lease Receipts (Details) $ in Thousands	Mar. 31, 2019USD ($)
Leases [Abstract]
Remainder of fiscal 2019	$ 230
2020	307
2021	307
2022	307
Total lease receipts	$ 1,151

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 60,724	$ 60,724
Accumulated Amortization	51,380	50,611
Net Carrying Value	9,344	10,113
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2019	1,932
2019	2,185
2020	2,017
2021	1,691
2022	989
2023	422
Thereafter	108
Net Carrying Value	9,344	10,113
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	7,230	6,619
Net Carrying Value	6,457	7,068
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	6,457	7,068
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	8,607	8,607
Accumulated Amortization	5,844	5,716
Net Carrying Value	2,763	2,891
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	2,763	2,891
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	370	370
Accumulated Amortization	246	216
Net Carrying Value	124	154
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Value	$ 124	$ 154

Warranty Obligations - Changes

Warranty Obligations - Changes in Warranty Obligations (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 4,743
Provisions for warranties issued during the period	1,195
Fulfillment of warranty obligations	(935)
Ending balance	$ 5,003

Derivative Instruments (Detail)

Derivative Instruments (Detail)	3 Months Ended
Derivative Instruments (Detail)	Mar. 31, 2019
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, Ft in Thousands, $ in Thousands, $ in Thousands, $ in Thousands

Mar. 31, 2019HUF (Ft)

Mar. 31, 2019GBP (£)

Mar. 31, 2019SGD ($)

Mar. 31, 2019JPY (¥)

Mar. 31, 2019KRW (₩)

Mar. 31, 2019TWD ($)

Mar. 31, 2019USD ($)

Dec. 31, 2018HUF (Ft)

Dec. 31, 2018GBP (£)

Dec. 31, 2018SGD ($)

Dec. 31, 2018JPY (¥)

Dec. 31, 2018KRW (₩)

Dec. 31, 2018TWD ($)

Dec. 31, 2018USD ($)

Euro Member Countries, Euro

Derivative [Line Items]

Outstanding forward contracts

¥ 20,000

$ 22,514

¥ 23,000

$ 26,330

Japanese Yen

Derivative [Line Items]

Outstanding forward contracts

¥ 500,000

4,526

¥ 380,000

3,459

British Pound

Derivative [Line Items]

Outstanding forward contracts

£ 2,100

2,747

£ 2,500

3,204

Hungarian Forint

Derivative [Line Items]

Outstanding forward contracts

Ft 810,000

2,840

Ft 750,000

2,685

Taiwanese Dollar

Derivative [Line Items]

Outstanding forward contracts

$ 54,200

1,761

$ 55,000

1,807

Korean Won

Derivative [Line Items]

Outstanding forward contracts

₩ 3,350,000

2,954

₩ 3,125,000

2,808

Canada, Dollars

Derivative [Line Items]

Outstanding forward contracts

$ 930

697

$ 990

726

Singapore, Dollars

Derivative [Line Items]

Outstanding forward contracts

$ 500

$ 369

$ 700

$ 514

Derivative Instruments - Schedu

Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivative asset	$ 34	$ 1
Derivative liability	31	106
Not Designated as Hedging Instrument \| Prepaid Expenses and Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative asset	34	1
Not Designated as Hedging Instrument \| Accrued Expenses
Derivatives, Fair Value [Line Items]
Derivative liability	$ 31	$ 106

Derivative Instruments - Offset

Derivative Instruments - Offsetting Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross amounts of recognized assets	$ 34	$ 1
Gross amounts offset	0	0
Net amount of assets presented	34	1
Gross amounts of recognized liabilities	31	106
Gross amounts offset	0	0
Net amount of liabilities presented	$ 31	$ 106

Derivative Instruments - Deriva

Derivative Instruments - Derivative Instruments, Gain (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Not Designated as Hedging Instrument \| Foreign Currency Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in current operations	$ 505	$ (310)

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended
Revenue Recognition (Details) - USD ($)	Mar. 31, 2019	Apr. 01, 2018	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of revenue	$ 46,284,000	$ 40,198,000
Gross margin	127,200,000	129,369,000
Operating income	30,147,000	34,596,000
Income before income tax expense	35,731,000	37,979,000
Income tax expense (benefit)	2,627,000	762,000
Net income	$ 33,104,000	$ 37,217,000
Basic (in dollars per share)	$ 0.19	$ 0.21
Diluted (in dollars per share)	$ 0.19	$ 0.21
Prepaid expenses and other current assets	$ 30,778,000		$ 34,000,000
Accrued income taxes	1,560,000		5,062,000
Deferred revenue and customer deposits	16,625,000		9,845,000
Retained earnings	670,754,000		646,214,000
Revenues	173,484,000	$ 169,567,000
Costs to fulfill a contract	4,960,000		$ 3,514,000
Change in Contract with Customer, Asset [Abstract]
Balance as of December 31, 2018	9,845,000
Increases to deferred revenue and customer deposits	12,015,000
Recognition of revenue	(5,292,000)
Foreign exchange rate changes	57,000
Balance as of March 31, 2019	16,625,000
Standard products and services
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	161,052,000	158,399,000
Application-specific customer solutions
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	12,432,000	11,168,000
Americas
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	65,156,000	59,217,000
Europe
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	59,657,000	56,203,000
Greater China
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	22,810,000	27,159,000
Other Asia
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	$ 25,861,000	$ 26,988,000

Stock-Based Compensation Expe_3

Stock-Based Compensation Expense (Detail)	3 Months Ended
Stock-Based Compensation Expense (Detail)	Mar. 31, 2019USD ($)group$ / sharesshares	Apr. 01, 2018USD ($)$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period, performance-based restricted stock, years	1 year
Vesting period, time-based restricted stock, years	3 years
Groups within the employee population \| group	2
Estimated annual forfeiture rate for unvested options for senior management	9.00%
Estimated annual forfeiture rate for unvested options for all other employees	12.00%
Increase (decrease) to compensation expense	$ 499,000	$ 1,283,000
Weighted-average grant-date fair values, in dollars per share \| $ / shares	$ 18.59	$ 21.62
Total intrinsic value	$ 22,579,000	$ 28,088,000
Total fair values of stock options vest	29,972,000	25,674,000
Unrecognized compensation expense	$ 75,985,000
Weighted average period to be recognized	2 years 1 month 21 days
Stock-based compensation expense	$ 12,281,000	13,194,000
Tax benefit from compensation expense	2,222,000	$ 2,347,000
Recognized period costs capitalized	$ 0
General Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for stock option plans	4 years
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under stock option plans \| shares	16,956,452
Expiration period from grant day	10 years

Stock-Based Compensation Expe_4

Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares
Shares (in thousands)
Outstanding, shares \| shares	13,789
Granted, shares \| shares	2,761
Exercised, shares \| shares	(717)
Forfeited or expired, shares \| shares	(139)
Outstanding, shares \| shares	15,694
Exercisable as of reporting date, shares \| shares	6,289
Options vested or expected to vest as of reporting date, shares \| shares	13,860
Weighted- Average Exercise Price
Outstanding, in dollars per share \| $ / shares	$ 31.73
Granted, in dollars per share \| $ / shares	51.49
Exercised, in dollars per share \| $ / shares	20.03
Forfeited or expired, in dollars per share \| $ / shares	41.73
Outstanding, in dollars per share \| $ / shares	35.65
Exercisable as of reporting date, Weighted-Average Exercise Price, in dollars per share \| $ / shares	24.86
Options vested or expected to vest as of period end (in dollars per share) \| $ / shares	$ 34.21
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, in years	7 years 7 months 17 days
Exercisable, in years	6 years 2 months 1 day
Options vested or expected to vest, in years	7 years 5 months 16 days
Aggregate Intrinsic Value (in thousands)
Outstanding, in dollars \| $	$ 255,322
Exercisable, in dollars \| $	166,524
Options vested or expected to vest, in dollars \| $	$ 244,429

Stock-Based Compensation Expe_5

Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Detail)	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free rate	2.70%	2.90%
Expected dividend yield	0.39%	0.32%
Expected volatility	37.00%	39.00%
Expected term (in years)	5 years 3 months	5 years 3 months 18 days

Stock-Based Compensation Expe_6

Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 12,281	$ 13,194
Cost of Revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	451	797
Research, Development, and Engineering Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	4,467	4,815
Selling, General, and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 7,363	$ 7,582

Stock Repurchase Program (Detai

Stock Repurchase Program (Detail) - Repurchase Program April 2017 - USD ($) shares in Thousands	Mar. 31, 2019	Oct. 29, 2018
Equity, Class of Treasury Stock [Line Items]
Authorized common stock to be repurchased		$ 200,000,000
Number of shares repurchased	203
Value of shares repurchased	$ 8,622,000

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
	Mar. 31, 2019	Apr. 01, 2018
Income Tax Disclosure [Abstract]
Income tax expense at U.S federal statutory corporate tax rate	21.00%	21.00%
State income taxes, net of federal benefit	1.00%	1.00%
Foreign tax rate differential	(9.00%)	(7.00%)
Tax credit	(0.00%)	(1.00%)
Discrete tax benefit related to stock option exercises	8.00%	13.00%
Other discrete tax events	0.00%	0.00%
Other	2.00%	1.00%
Income tax expense	7.00%	2.00%

Taxes (Detail)

Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended
Taxes (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Apr. 01, 2018	Dec. 31, 2018
Income Tax [Line Items]
Income tax expense at U.S federal statutory corporate tax rate	21.00%	21.00%
Foreign tax rate differential	9.00%	7.00%
Discrete tax benefit related to stock option exercises	8.00%	13.00%
Increase in reserves for income taxes, net of deferred tax benefit	$ 622
Interest and penalties included in reserve	90
Liability for uncertain tax positions	8,776
Reserve for income taxes classified as a noncurrent iability	7,748		$ 7,106
Reserve for income taxes classified an noncurrent deferred tax assets	1,028
Interest and penalties, gross	940
Minimum decrease in income tax expense due to release in reserves	1,300
Maximum decrease in income tax expense due to release in reserves	$ 1,400
Tax years open to examination by Internal Revenue Service	2015 through 2018
Tax years open to examination by various taxing authorities for other entities	2014 through 2018
Foreign tax authority \| Ireland
Income Tax [Line Items]
Income tax expense at U.S federal statutory corporate tax rate	12.50%
Foreign tax authority \| China
Income Tax [Line Items]
Income tax expense at U.S federal statutory corporate tax rate	25.00%
Foreign tax authority \| Domestic Tax Authority [Member]
Income Tax [Line Items]
Income tax expense at U.S federal statutory corporate tax rate	21.00%

Weighted-Average Shares - Calcu

Weighted-Average Shares - Calculation of Weighted-Average Shares (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Earnings Per Share [Abstract]
Basic weighted-average common shares outstanding	171,098	173,280
Effect of dilutive stock options	4,509	6,361
Weighted-average common and common-equivalent shares outstanding	175,607	179,641

Weighted-Average Shares (Detail

Weighted-Average Shares (Detail) - shares	3 Months Ended
Weighted-Average Shares (Detail) - shares	Mar. 31, 2019	Apr. 01, 2018
Earnings Per Share [Abstract]
Stock options to purchase anti-dilutive common stock	4,832,000	1,339,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event	Apr. 29, 2019$ / shares
Subsequent Event [Line Items]
Dividends (in dollars per share)	$ 0.050
Dividends payable, date payable	May 31, 2019
Dividends payable, date of record	May 17, 2019