Cover Page
Cover Page | 6 Months Ended |
Jun. 28, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 28, 2020 |
Document Transition Report | false |
Entity File Number | 001-34218 |
Entity Registrant Name | COGNEX CORP |
Entity Central Index Key | 0000851205 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | MA |
Entity Tax Identification Number | 04-2713778 |
Entity Address, Address Line One | One Vision Drive |
Entity Address, City or Town | Natick |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 01760 |
City Area Code | 508 |
Local Phone Number | 650-3000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Title of 12(b) Security | Common Stock, par value $.002 per share |
Trading Symbol | CGNX |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 173,047,292 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 169,097 | $ 199,047 | $ 336,332 | $ 372,531 |
Cost of revenue | 50,320 | 50,967 | 91,520 | 97,251 |
Gross margin | 118,777 | 148,080 | 244,812 | 275,280 |
Research, development, and engineering expenses | 30,397 | 28,079 | 66,343 | 58,321 |
Selling, general, and administrative expenses | 60,153 | 68,245 | 129,291 | 135,056 |
Restructuring charges (Note 16) | 14,798 | 0 | 14,798 | 0 |
Intangible asset impairment charges (Note 8) | 19,571 | 0 | 19,571 | 0 |
Operating income (loss) | (6,142) | 51,756 | 14,809 | 81,903 |
Foreign currency gain (loss) | 336 | 140 | (2,667) | (108) |
Investment income | 3,291 | 5,223 | 8,520 | 10,128 |
Other income (expense) | 203 | (144) | 20 | 783 |
Income (loss) before income tax expense (benefit) | (2,312) | 56,975 | 20,682 | 92,706 |
Income tax expense (benefit) | (1,170) | 8,226 | 1,347 | 10,853 |
Net Income | $ (1,142) | $ 48,749 | $ 19,335 | $ 81,853 |
Net income (loss) per weighted-average common and common-equivalent share: | ||||
Basic (usd per share) | $ (0.01) | $ 0.28 | $ 0.11 | $ 0.48 |
Diluted (usd per share) | $ (0.01) | $ 0.28 | $ 0.11 | $ 0.47 |
Weighted-average common and common-equivalent shares outstanding: | ||||
Basic (shares) | 172,283 | 171,318 | 172,345 | 171,209 |
Diluted (shares) | 172,283 | 175,448 | 175,499 | 175,528 |
Cash dividends per common share (usd per share) | $ 0.055 | $ 0.050 | $ 0.110 | $ 0.100 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ (1,142) | $ 48,749 | $ 19,335 | $ 81,853 |
Available-for-sale investments: | ||||
Net unrealized gain (loss), net of tax of ($836) and $239 in the three-month periods and net of tax of ($1,788) and $507 in the six-month periods, respectively | 12,451 | 2,311 | 8,590 | 4,562 |
Reclassification of credit loss on investments | (85) | 0 | 75 | 0 |
Reclassification of net realized (gain) loss into current operations | (955) | (382) | (2,805) | (422) |
Net change related to available-for-sale investments | 11,411 | 1,929 | 5,860 | 4,140 |
Foreign currency translation adjustments: | ||||
Foreign currency translation adjustments | 1,903 | (663) | (5,462) | (445) |
Other comprehensive income, net of tax | 13,314 | 1,266 | 398 | 3,695 |
Total comprehensive income | $ 12,172 | $ 50,015 | $ 19,733 | $ 85,548 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect on cash flow hedges | $ 0 | $ 0 | $ 0 | $ 0 |
Tax effect of unrealized gain (loss) on available-for-sale investments | (836) | 239 | (1,788) | 507 |
Tax effect of foreign currency translation adjustment | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 286,021 | $ 171,431 |
Current investments, amortized cost of $141,874 and $235,610 in 2020 and 2019, respectively, allowance for expected credit losses of $0 in 2020 and 2019 | 143,084 | 240,470 |
Accounts receivable, less reserves of $2,235 and $1,821 in 2020 and 2019, respectively | 111,671 | 103,447 |
Unbilled revenue | 978 | 4,782 |
Inventories | 52,953 | 60,261 |
Prepaid expenses and other current assets | 51,768 | 26,840 |
Total current assets | 646,475 | 607,231 |
Non-current investments, amortized cost of $461,948 and $431,633 in 2020 and 2019, respectively, allowance for expected credit losses of $75 and $0 in 2020 and 2019, respectively | 467,087 | 433,452 |
Property, plant, and equipment, net | 83,936 | 89,443 |
Operating lease assets | 25,819 | 17,522 |
Goodwill | 242,436 | 243,445 |
Intangible assets, net | 17,337 | 39,490 |
Deferred income taxes | 443,732 | 449,519 |
Other assets | 8,042 | 5,833 |
Total assets | 1,934,864 | 1,885,935 |
Current liabilities: | ||
Accounts payable | 17,999 | 17,866 |
Accrued expenses | 66,264 | 52,199 |
Accrued income taxes | 5,952 | 30,333 |
Deferred revenue and customer deposits | 46,738 | 14,432 |
Operating lease liabilities | 7,628 | 5,647 |
Total current liabilities | 144,581 | 120,477 |
Operating Lease, Liability, Noncurrent | 21,208 | 12,326 |
Deferred income taxes | 326,295 | 332,344 |
Reserve for income taxes | 12,302 | 11,563 |
Non-current accrued income taxes | 48,915 | 51,113 |
Other liabilities | 5,085 | 2,402 |
Total liabilities | 558,386 | 530,225 |
Preferred Stock, Value, Outstanding | 0 | 0 |
Shareholders’ equity: | ||
Common stock, $.002 par value – Authorized: 300,000 shares in 2020 and 2019, respectively, issued and outstanding: 173,047 and 172,440 shares in 2020 and 2019, respectively | 346 | 345 |
Additional paid-in capital | 710,412 | 639,372 |
Retained earnings | 702,597 | 753,268 |
Accumulated other comprehensive loss, net of tax | (36,877) | (37,275) |
Total shareholders’ equity | 1,376,478 | 1,355,710 |
Total liabilities and shareholders' equity | $ 1,934,864 | $ 1,885,935 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Reserves for accounts receivable | $ 2,235 | $ 1,821 |
Common stock, par value | $ 0.002 | $ 0.002 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 173,047,000 | 172,440,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 19,335 | $ 81,853 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 22,808 | 23,248 |
Depreciation of property, plant, and equipment | 11,162 | 10,537 |
Amortization of intangible assets | 2,582 | 1,538 |
Intangible asset impairment charges | 19,571 | 0 |
Excess and obsolete inventory charges | 8,783 | 1,713 |
Operating lease asset impairment charges | 2,534 | 0 |
Amortization of discounts or premiums on investments | 328 | (342) |
Realized gain on sale of investments | (2,805) | (422) |
Credit loss on investments | 75 | 0 |
Revaluation of contingent consideration | (114) | (863) |
Change in deferred income taxes | 1,395 | (1,311) |
Accounts receivable | (8,957) | 11,383 |
Unbilled revenue | 3,804 | (1,989) |
Inventories | (1,664) | 8,681 |
Prepaid expenses and other current assets | (25,461) | (463) |
Accounts payable | 143 | (4,528) |
Accrued expenses | 15,806 | (12,270) |
Accrued income taxes | (25,411) | (4,000) |
Deferred revenue and customer deposits | 32,586 | 8,575 |
Other | 2,520 | (1,190) |
Net cash provided by operating activities | 79,020 | 120,150 |
Cash flows from investing activities: | ||
Purchases of investments | (317,540) | (664,896) |
Maturities and sales of investments | 387,765 | 587,175 |
Purchases of property, plant, and equipment | (6,985) | (8,969) |
Net cash provided by (used in) investing activities | 63,240 | (86,690) |
Cash flows from financing activities: | ||
Issuance of common stock under stock plans | 48,235 | 26,417 |
Repurchase of common stock | (51,036) | (61,690) |
Payment of dividends | (18,972) | (17,146) |
Payment of contingent consideration | (1,039) | 0 |
Net cash provided by (used in) financing activities | (22,812) | (52,419) |
Effect of foreign exchange rate changes on cash and cash equivalents | (4,858) | (149) |
Net change in cash and cash equivalents | 114,590 | (19,108) |
Cash and cash equivalents at beginning of period | 171,431 | 108,212 |
Cash and cash equivalents at end of period | $ 286,021 | $ 89,104 |
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 |
Beginning Balance (in shares) at Dec. 31, 2018 | 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 (in shares) | 1,239 | ||||
Issuance of common stock under stock plans | 26,417 | $ 2 | 26,415 | ||
Repurchase of common stock (in shares) | (1,398) | ||||
Repurchase of common stock | (61,690) | $ (3) | (61,687) | ||
Stock-based compensation expense | 23,248 | 23,248 | |||
Payment of dividends | (17,146) | (17,146) | |||
Net income | 81,853 | 81,853 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax of ($82) | 4,562 | 4,562 | |||
Reclassification of credit (recovery) loss on investments | 0 | ||||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (422) | (422) | |||
Foreign currency translation adjustment | (445) | (445) | |||
Ending Balance (in shares) at Jun. 30, 2019 | 170,661 | ||||
Ending Balance at Jun. 30, 2019 | 1,191,640 | $ 341 | 578,871 | 649,234 | (36,806) |
Beginning Balance (in shares) at Mar. 31, 2019 | 171,537 | ||||
Beginning Balance at Mar. 31, 2019 | 1,188,859 | $ 343 | 555,834 | 670,754 | (38,072) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock under stock plans (in shares) | 522 | ||||
Issuance of common stock under stock plans | 12,071 | $ 1 | 12,070 | ||
Repurchase of common stock (in shares) | (1,398) | ||||
Repurchase of common stock | (61,690) | $ (3) | (61,687) | ||
Stock-based compensation expense | 10,967 | 10,967 | |||
Payment of dividends | (8,582) | (8,582) | |||
Net income | 48,749 | 48,749 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax of ($82) | 2,311 | 2,311 | |||
Reclassification of credit (recovery) loss on investments | 0 | ||||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (382) | (382) | |||
Foreign currency translation adjustment | (663) | (663) | |||
Ending Balance (in shares) at Jun. 30, 2019 | 170,661 | ||||
Ending Balance at Jun. 30, 2019 | $ 1,191,640 | $ 341 | 578,871 | 649,234 | (36,806) |
Beginning Balance (in shares) at Dec. 31, 2019 | 172,440 | 172,440 | |||
Beginning Balance at Dec. 31, 2019 | $ 1,355,710 | $ 345 | 639,372 | 753,268 | (37,275) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock under stock plans (in shares) | 1,822 | ||||
Issuance of common stock under stock plans | 48,235 | $ 3 | 48,232 | ||
Repurchase of common stock (in shares) | (1,215) | ||||
Repurchase of common stock | (51,036) | $ (2) | (51,034) | ||
Stock-based compensation expense | 22,808 | 22,808 | |||
Payment of dividends | (18,972) | (18,972) | |||
Net income | 19,335 | 19,335 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax of ($82) | 8,590 | 8,590 | |||
Reclassification of credit (recovery) loss on investments | 75 | 75 | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (2,805) | (2,805) | |||
Foreign currency translation adjustment | $ (5,462) | (5,462) | |||
Ending Balance (in shares) at Jun. 28, 2020 | 173,047 | 173,047 | |||
Ending Balance at Jun. 28, 2020 | $ 1,376,478 | $ 346 | 710,412 | 702,597 | (36,877) |
Beginning Balance (in shares) at Mar. 29, 2020 | 171,688 | ||||
Beginning Balance at Mar. 29, 2020 | 1,327,493 | $ 344 | 664,132 | 713,208 | (50,191) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock under stock plans (in shares) | 1,359 | ||||
Issuance of common stock under stock plans | 38,264 | $ 2 | 38,262 | ||
Repurchase of common stock (in shares) | 0 | ||||
Repurchase of common stock | 0 | $ 0 | 0 | ||
Stock-based compensation expense | 8,018 | 8,018 | |||
Payment of dividends | (9,469) | (9,469) | |||
Net income | (1,142) | (1,142) | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax of ($82) | 12,451 | 12,451 | |||
Reclassification of credit (recovery) loss on investments | (85) | (85) | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (955) | (955) | |||
Foreign currency translation adjustment | $ 1,903 | 1,903 | |||
Ending Balance (in shares) at Jun. 28, 2020 | 173,047 | 173,047 | |||
Ending Balance at Jun. 28, 2020 | $ 1,376,478 | $ 346 | $ 710,412 | $ 702,597 | $ (36,877) |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Tax effect of unrealized gain (loss) on available-for-sale investments | $ (836) | $ 239 | $ (1,788) | $ 507 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 28, 2020 | |
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 ASU 2016-13 "Measurement of Credit Losses on Financial Instruments," Cognex Corporation (the "Company") has provided new disclosures related to credit losses 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, 2019 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, excess and obsolete inventory charges (Note 5), intangible asset impairment charges (Note 8), restructuring charges (Note 16), and financial statement reclassifications necessary to present fairly the Company’s financial position as of June 28, 2020, and the results of its operations for the three-month and six-month periods ended June 28, 2020 and June 30, 2019, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented. The results disclosed in the Consolidated Statements of Operations for the three-month and six-month periods ended June 28, 2020 are not necessarily indicative of the results to be expected for the full year. Cash, Cash Equivalents, and Investments Money market instruments, as well as certificates of deposit and debt securities with original maturities of three months or less, are classified as cash equivalents and are stated at amortized cost. Certificates of deposit and debt securities with original maturities greater than three months and remaining maturities of one year or less are classified as current investments. Debt securities with remaining maturities greater than one year are classified as non-current investments. It is the Company’s policy to invest in debt securities with effective maturities that do not exceed ten years. Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax and credit losses, recorded in shareholders’ equity as other comprehensive income (loss). Realized gains and losses are included in current operations, along with the amortization of the discount or premium on debt securities arising at acquisition, and are calculated using the specific identification method. The Company’s limited partnership interest is accounted for using the cost method because the Company’s investment is less than 5% of the partnership and the Company has no influence over the partnership’s operating and financial policies. The carrying value of this investment has been reduced to zero, and therefore, distributions are recorded as investment income as they occur. Management monitors the carrying value of its investments in debt securities compared to their fair value to determine whether a credit loss or other type of impairment has occurred. If the fair value of a debt security is less than its amortized cost, the Company assesses whether the decline has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, then a credit loss exists and an allowance for credit losses is recorded. The allowance for credit losses is limited by the amount that the fair value is less than the amortized cost basis of the security. Credit losses on impaired securities continue to be measured in subsequent periods, using the present value of expected future cash flows, and changes in the expected credit losses are recorded in current operations. Credit losses and recoveries are included in "Other income (expense)" on the Consolidated Statement of Operations. When developing an estimate of the expected credit losses, the Company considers all available information relevant to assessing the collectability of cash flows. This information includes internal and external factors, historical and current events, reasonable and supportable forecasts including management's expectations of future economic conditions, the type of security, the credit rating of the security, the size of the loss position, as well as other relevant information. An impairment is recognized as a write-down if (i) the Company has the intent to sell the security or (ii) it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. If impairment is considered upon condition (i) or (ii) described above, the debt security's amortized cost basis is written-down to its fair value and the impairment is recognized in current operations. Subsequent increases in the fair value of the debt securities after the write-down are included in shareholders' equity as other comprehensive income. The differences between the new amortized cost basis and the cash flows expected to be collected are accreted as interest income. Unrealized losses, that have not been recorded through an allowance for credit losses or write-down of the debt security, are recorded in shareholders' equity as other comprehensive loss, net of the applicable taxes. Accounts Receivable The Company extends credit with various payment terms to customers based upon an evaluation of their financial condition. Accounts that are outstanding longer than the payment terms are considered to be past due. The Company establishes an allowance against accounts receivable for potential credit losses and records bad debt expense in current operations when it determines receivables are at risk for collection based upon the length of time the receivable has been outstanding, the customer’s current ability to pay its obligations to the Company, general economic and industry conditions, and reasonable forecasts about the future, as well as various other factors. Receivables are written off against this allowance in the period they are determined to be uncollectible and payments subsequently received on previously written-off receivables are recorded as a reversal of the bad debt expense. Credit losses are included in "Selling, general, and administrative expenses" on the Consolidated Statement of Operations. |
New Pronouncements
New Pronouncements | 6 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Pronouncements | New Pronouncements Accounting Standards Update (ASU) 2019-12, "Simplifying the Accounting for Income Taxes" ASU 2019-12 applies to all entities within the scope of Topic 740, Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the following exceptions: 1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in this ASU also simplify the accounting for income taxes by doing the following: 1) requiring that an entity recognize a franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that included the enacted date. The amendments in this ASU are effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2020. Early adoption is permitted; however, an entity that elects to early adopt the amendments must adopt all the amendments in the same period. The amendments in this ASU related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments should be applied on a prospective basis. Management does not expect ASU 2019-12 to have a material impact on the Company's consolidated financial statements and disclosures. Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (Topic 848)" The amendments in this ASU apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. Management does not expect ASU 2020-04 to have a material impact on the Company's consolidated financial statements and disclosures. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 28, 2020 | |
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 June 28, 2020 (in thousands): Quoted Prices in Significant Other Unobservable Inputs (Level 3) Assets: Money market instruments $ 50,222 $ — $ — Corporate bonds — 236,660 Treasury bills — 230,692 — Asset-backed securities — 91,610 — Sovereign bonds — 27,517 — Agency bonds — 22,054 — Municipal bonds — 1,638 Economic hedge forward contracts — 46 — Liabilities: Economic hedge forward contracts — 458 — Contingent consideration liabilities — — — 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 recorded gross credit losses and gross credit recoveries on debt securities totaling $0 and $85,000, respectively, for the three-month period ended June 28, 2020, and $160,000 and $85,000, respectively, for the six-month period ended June 28, 2020. No credit losses or recoveries on debt securities were recorded for the three-month or six-month periods ended June 30, 2019. Credit losses and recoveries are included in "Other income (expense)" on the Consolidated Statements of Operations. 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. The fair value of the contingent consideration liability related to the Company's acquisition of Chiaro Technologies, LLC was $1,153,000 as of December 31, 2019. During the three-month period ended June 28, 2020, the Company paid out $1,039,000 based upon the revenue levels achieved, with the remaining $114,000 recorded as a fair value adjustment in "Other income (expense)" on the Consolidated Statements of Operations. The fair value of the contingent consideration liability related to the Company's acquisition of GVi Ventures, Inc. was written down to zero as of December 31, 2019 resulting from a lower level of revenue in the Americas' automotive industry, and the balance remains at zero as of June 28, 2020. The undiscounted potential outcomes related to future contingent consideration range from $0 to $2,500,000 based upon certain revenue levels over the next two years. Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis Non-financial assets, such as property, plant and equipment, operating lease assets, goodwill, and intangible assets, are required to be measured at fair value only when an impairment loss is recognized. The Company evaluates these long-lived assets for impairment whenever events or changes in circumstances, referred to as "triggering events," indicate the carrying value may not be recoverable. Our business has been adversely and materially impacted by deteriorating global economic conditions resulting from the COVID-19 pandemic. The significant decline in business levels triggered a review of long-lived assets for potential impairment as of May 26, 2020, which resulted in operating lease asset impairment charges of $2,534,000 (refer to Notes 6 and 16) that are included in "Restructuring charges" on the Consolidated Statements of Operations, and intangible asset impairment charges of $19,571,000 (refer to Note 8). These fair value measurements are based upon the present values of future cash flows using significant inputs that are not observable in the market, and are therefore classified as Level 3. |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 6 Months Ended |
Jun. 28, 2020 | |
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): June 28, 2020 December 31, 2019 Cash $ 235,799 $ 155,498 Money market instruments 50,222 15,933 Cash and cash equivalents 286,021 171,431 Asset-backed securities 50,311 66,680 Corporate bonds 42,248 65,624 Treasury bills 34,018 92,914 Sovereign bonds 14,869 6,294 Municipal bonds 1,638 4,630 Certificate of deposit — 4,328 Current investments 143,084 240,470 Treasury bills 196,674 216,334 Corporate bonds 194,412 146,474 Asset-backed securities 41,299 46,403 Agency bonds 22,054 5,914 Sovereign bonds 12,648 16,005 Municipal bonds — 2,322 Non-current investments 467,087 433,452 $ 896,192 $ 845,353 Asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; corporate bonds consist of debt securities issued by both domestic and foreign companies; treasury bills consist of debt securities issued by the U.S. government; sovereign bonds consist of direct debt issued by foreign governments; municipal bonds consist of debt securities issued by state and local government entities; certificates of deposit are time deposits held by financial institutions with a fixed interest rate; 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, with the exception of the certificate of deposit held as of December 31, 2019 that was denominated in Korean Won. Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $1,958,000 and $2,874,000 as of June 28, 2020 and December 31, 2019, respectively. On January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, “Measurement of Credit Losses on Financial Instruments,” using the modified-retrospective approach, which requires the Company to apply the standard on a prospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the guidance is effective. The Company did not record an adjustment to retained earnings, as there were no debt securities with credit losses as of the adoption date. The following table summarizes the Company’s available-for-sale investments as of June 28, 2020 (in thousands): Amortized Gross Gross Fair Value Current: Asset-backed securities $ 49,899 $ 412 $ — $ 50,311 Corporate bonds 42,065 221 (38) 42,248 Treasury bills 33,480 538 — 34,018 Sovereign bonds 14,787 82 — 14,869 Municipal bonds 1,643 — (5) 1,638 Non-current: Treasury bills 194,330 2,345 (1) 196,674 Corporate bonds 192,233 2,513 (334) 194,412 Asset-backed securities 40,817 484 (2) 41,299 Agency bonds 22,035 37 (18) 22,054 Sovereign bonds 12,533 115 — 12,648 $ 603,822 $ 6,747 $ (398) $ 610,171 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 June 28, 2020 (in thousands): Unrealized Loss Position For: Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds $ 49,525 $ (363) $ 1,181 $ (9) $ 50,706 $ (372) Treasury bills 12,962 (1) — — 12,962 (1) Asset-backed securities 5,749 (1) 260 (1) 6,009 (2) Agency bonds 3,128 (2) 2,784 (16) 5,912 (18) Municipal bonds 1,293 (5) — — 1,293 (5) $ 72,657 $ (372) $ 4,225 $ (26) $ 76,882 $ (398) The Company recorded gross credit losses and gross credit recoveries on debt securities totaling $0 and $85,000, respectively, for the three-month period ended June 28, 2020, and $160,000 and $85,000, respectively, for the six-month period ended June 28, 2020. No credit losses or recoveries on debt securities were recorded for the three-month or six-month periods ended June 30, 2019. Credit losses and recoveries are included in "Other income (expense)" on the Consolidated Statements of Operations. The following table summarizes the allowance for credit losses activity for the six-month period ended June 28, 2020 (in thousands): Balance as of December 31, 2019 $ — Increases to the allowance for credit losses 160 Decreases to the allowance for credit losses (85) Write-offs — Balance as of June 28, 2020 $ 75 The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $962,000 and $7,000, respectively, for the three-month period ended June 28, 2020, and $394,000 and $12,000, respectively, for the three-month period ended June 30, 2019. The Company recorded gross realized gains and gross realized losses on the sale of debt securities totaling $2,826,000 and $21,000, respectively, for the six-month period ended June 28, 2020, and $458,000 and $36,000, respectively, for the six-month period ended June 30, 2019. These gains and losses are included in "Investment income" on the Consolidated Statements of Operations. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, are recorded in shareholders’ equity as accumulated other comprehensive loss. The following table presents the effective maturity dates of the Company’s available-for-sale investments as of June 28, 2020 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total Corporate bonds $ 42,248 $ 81,987 $ 102,034 $ 10,391 $ — $ 236,660 Treasury bills 34,018 138,612 58,062 — — 230,692 Asset-backed securities 50,311 13,750 23,308 — 4,241 91,610 Sovereign bonds 14,869 9,218 3,430 — — 27,517 Agency bonds — — 22,054 — — 22,054 Municipal bonds 1,638 — — — — 1,638 $ 143,084 $ 243,567 $ 208,888 $ 10,391 $ 4,241 $ 610,171 |
Inventories
Inventories | 6 Months Ended |
Jun. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): June 28, 2020 December 31, 2019 Raw materials $ 20,736 $ 27,285 Work-in-process 4,111 5,503 Finished goods 28,106 27,473 $ 52,953 $ 60,261 The Company recorded provisions for excess and obsolete inventories of $7,718,000 and $8,783,000 for the three-month and six-month periods ended June 28, 2020, respectively, which reduced the carrying value of the inventories to their net realizable value. The charges for the three-month period ended June 28, 2020 were due to lower projected sales of excess inventories as a result of deteriorating global economic conditions from the COVID-19 pandemic. |
Leases
Leases | 6 Months Ended |
Jun. 28, 2020 | |
Leases [Abstract] | |
Leases | 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 June 28, 2020. 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 June 28, 2020. The total operating lease expense for the three-month periods ended June 28, 2020 and June 30, 2019 was $2,147,000 and $1,742,000, respectively. The total operating lease cash payments for the three-month periods ended June 28, 2020 and June 30, 2019 were $2,091,000 and $1,669,000, respectively. 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 $23,000 and $64,000 for the three-month periods ended June 28, 2020 and June 30, 2019, respectively. The total operating lease expense for the six-month periods ended June 28, 2020 and June 30, 2019 was $4,053,000 and $3,227,000, respectively. The total operating lease cash payments for the six-month periods ended June 28, 2020 and June 30, 2019 were $3,954,000 and $3,070,000, respectively. 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 $62,000 and $233,000 for the six-month periods ended June 28, 2020 and June 30, 2019, respectively. Future operating lease cash payments are as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2020 $ 4,335 2021 8,340 2022 6,169 2023 4,973 2024 2,391 2025 1,322 Thereafter 4,462 $ 31,992 The discounted present value of the future lease cash payments resulted in a lease liability of $28,836,000 and $17,973,000 as of June 28, 2020 and December 31, 2019, respectively. The Company did not have any leases that had not yet commenced but that created significant rights and obligations as of June 28, 2020 or June 30, 2019. The weighted-average discount rate was 4.1% and 4.8% for the leases outstanding as of June 28, 2020 and June 30, 2019, respectively. The weighted-average remaining lease term was 5.3 and 3.6 years for the leases outstanding as of June 28, 2020 and June 30, 2019, respectively. As part of the Company's restructuring plan (refer to Note 16), management closed ten leased offices as of June 28, 2020 prior to the end of their lease terms. The carrying value of the lease assets associated with these ten offices has been reduced to zero as of June 28, 2020, resulting in operating lease asset impairment charges of $2,534,000 for the three-month period ended June 28, 2020 that are included in "Restructuring charges" on the Consolidated Statements of Operations. Management is currently negotiating early contract terminations for the remaining lease liability obligations associated with these abandoned offices. |
Goodwill (Notes)
Goodwill (Notes) | 6 Months Ended |
Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying value of goodwill were as follows (in thousands): Balance as of December 31, 2019 $ 243,445 Foreign exchange rate changes (1,009) Balance as of June 28, 2020 $ 242,436 The significant decline in business levels resulting from the COVID-19 pandemic triggered a review of long-lived assets, including goodwill, for potential impairment during the three-month period ended June 28, 2020. Based upon this assessment, management concluded that the reporting unit fair value was not less than its carrying value, and therefore no goodwill impairment charge was recognized for the three-month and six-month periods ended June 28, 2020. Factors that management considered in this assessment included macroeconomic conditions, industry and market conditions, overall financial performance (both current and projected), changes in management or strategy, changes in the composition or carrying value of net assets, and market capitalization. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Amortized intangible assets consisted of the following (in thousands): Gross Accumulated Net Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 21,917 11,035 10,882 Customer relationships 10,578 6,795 3,783 In-process technologies 2,300 — 2,300 Non-compete agreements 710 409 301 Trademarks 110 39 71 Balance as of June 28, 2020 $ 73,675 $ 56,338 $ 17,337 Gross Accumulated Net Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 31,987 9,160 22,827 Customer relationships 14,407 6,402 8,005 In-process technologies 8,200 — 8,200 Non-compete agreements 710 350 360 Trademarks 110 12 98 Balance as of December 31, 2019 $ 93,474 $ 53,984 $ 39,490 The significant decline in business levels resulting from the COVID-19 pandemic triggered a review of long-lived assets, including intangible assets, for potential impairment during the three-month period ended June 28, 2020. For finite-lived intangible assets that are subject to amortization, the Company follows a two-step process for impairment testing. In step one, known as the recoverability test, the carrying value of the asset is compared to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the sum of the undiscounted future cash flows is less than the carrying value, the asset is not recoverable and step two is performed. In step two, the impairment charge is measured as the amount by which the carrying value of the asset exceeds its fair value. For indefinite-lived intangible assets that are not subject to amortization, the fair value of the asset is measured and an impairment charge is recorded as the amount by which the carrying value of the asset exceeds its fair value. Based upon this assessment, management concluded that certain of the Company's finite-lived intangible assets failed the recoverability test, and recorded impairment charges for these assets equal to the amount by which their carrying value exceeded their fair value. The Company also measured the fair value and recorded an impairment charge for its indefinite-lived intangible asset related to in-process technologies. The fair values were established, with the assistance of an outside valuation advisor, using the income approach based upon a discounted cash flow model that estimated future revenue streams and expenses attributable to those revenue streams provided by management. This review resulted in intangible asset impairment charges totaling $19,571,000 for the three-month period ended June 28, 2020, primarily related to lower projected cash flows from the technologies and customer relationships acquired from Sualab Co. Ltd. ("Sualab") as a result of the deteriorating global economic conditions from the COVID-19 pandemic. Completed technologies, in-process technologies, and customer relationships acquired from Sualab were impaired in the amounts of $10,070,000, $5,900,000, and $3,382,000, respectively. In addition, customer relationships acquired from EnShape GmbH that had a gross carrying value of $447,000 and accumulated amortization of $228,000 on the measurement date were reduced to zero, resulting in an impairment charge of $219,000. As of June 28, 2020, estimated future amortization expense related to intangible assets was as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2020 $ 1,686 2021 3,272 2022 2,902 2023 2,211 2024 1,697 2025 1,374 Thereafter 1,895 $ 15,037 In-process technology is an indefinite-lived intangible asset until the technology is finalized, at which point it is amortized over its estimated useful life. |
Warranty Obligations
Warranty Obligations | 6 Months Ended |
Jun. 28, 2020 | |
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 changes in 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, 2019 $ 4,713 Provisions for warranties issued during the period 1,493 Fulfillment of warranty obligations (927) Balance as of June 28, 2020 $ 5,279 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 28, 2020 | |
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): June 28, 2020 December 31, 2019 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Korean Won 138,690,000 $ 115,604 161,951,500 $ 139,688 Euro 50,000 56,137 18,000 20,249 Mexican Peso 184,700 8,051 80,000 4,223 Japanese Yen 600,000 5,587 575,000 5,291 Hungarian Forint 1,085,000 3,443 870,000 2,962 British Pound 1,940 2,406 2,700 3,569 Taiwanese Dollar 42,765 1,455 37,450 1,256 Canadian Dollar 1,130 827 1,300 1,000 Singapore Dollar 1,090 784 845 628 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 June 28, 2020 December 31, 2019 Sheet June 28, 2020 December 31, 2019 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 46 $ 857 Accrued expenses $ 458 $ 23 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 June 28, 2020 December 31, 2019 June 28, 2020 December 31, 2019 Gross amounts of recognized assets $ 46 $ 857 Gross amounts of recognized liabilities $ 458 $ 23 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 46 $ 857 Net amount of liabilities presented $ 458 $ 23 Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 60 $ (439) $ (8,180) $ 66 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 28, 2020 | |
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 Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Americas $ 68,966 $ 77,408 $ 129,214 $ 142,178 Europe 35,987 59,620 84,569 119,158 Greater China 31,898 35,816 58,301 58,632 Other Asia 32,246 26,203 64,248 52,563 $ 169,097 $ 199,047 $ 336,332 $ 372,531 The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Standard products and services $ 158,807 $ 173,368 $ 311,662 $ 334,420 Application-specific customer solutions 10,290 25,679 24,670 38,111 $ 169,097 $ 199,047 $ 336,332 $ 372,531 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 $10,888,000 and $3,963,000 as of June 28, 2020 and December 31, 2019, 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 an allowance against its accounts receivable for potential credit losses. 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. On January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, “Measurement of Credit Losses on Financial Instruments,” using the modified-retrospective approach, which requires the Company to apply the standard on a prospective basis with a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the guidance is effective. The Company did not record an adjustment to retained earnings as this ASU did not have a material impact on the Company's consolidated allowance for credit losses. The Company recorded credit losses on accounts receivable of $300,000 and $600,000 for the three-month and six-month periods ended June 28, 2020, respectively. The Company recorded credit losses on accounts receivable of $90,000 for the three-month and six-month periods ended June 30, 2019. The Company's estimate of expected credit losses takes into account the deteriorating global economic conditions from the COVID-19 pandemic. The following table summarizes the allowance for credit losses activity for the six-month period ended June 28, 2020 (in thousands): Balance as of December 31, 2019 $ 530 Increases to the allowance for credit losses 600 Write-offs (186) Foreign exchange rate changes 1 Balance as of June 28, 2020 $ 945 The following table summarizes the deferred revenue and customer deposits activity for the six-month period ended June 28, 2020 (in thousands): Balance as of December 31, 2019 $ 14,432 Increases to deferred revenue and customer deposits 57,904 Recognition of revenue (25,493) Foreign exchange rate changes (105) Balance as of June 28, 2020 $ 46,738 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 | 6 Months Ended |
Jun. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense Stock Plans The Company’s stock-based awards that result in compensation expense consist of stock options and restricted stock units ("RSUs"). As of June 28, 2020, the Company had 16,335,000 shares available for grant under its stock plans. 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 Stock Options The following table summarizes the Company’s stock option activity for the six-month period ended June 28, 2020: Shares Weighted- Weighted- Aggregate Outstanding as of December 31, 2019 12,899 $ 37.95 Granted 975 51.58 Exercised (1,822) 26.47 Forfeited or expired (421) 50.28 Outstanding as of June 28, 2020 11,631 $ 40.45 6.98 $ 212,847 Exercisable as of June 28, 2020 5,331 $ 31.59 5.81 $ 144,694 Options vested or expected to vest as of June 28, 2020 (1) 10,683 $ 39.58 6.85 $ 204,795 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Risk-free rate 1.6 % 2.7 % 1.6 2.7 % Expected dividend yield 0.43 % 0.39 % 0.43 % 0.39 % Expected volatility 37 % 37 % 37 % 37 % Expected term (in years) 6.0 5.2 6.0 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 weighted-average grant-date fair values of stock options granted during the three-month periods ended June 28, 2020 and June 30, 2019 were $19.13 and $18.68, respectively. The weighted-average grant-date fair values of stock options granted during the six-month periods ended June 28, 2020 and June 30, 2019 were $18.52 and $18.59, respectively. The total intrinsic values of stock options exercised for the three-month periods ended June 28, 2020 and June 30, 2019 were $39,359,000 and $14,220,000, respectively. The total intrinsic values of stock options exercised for the six-month periods ended June 28, 2020 and June 30, 2019 were $53,814,000 and $36,799,000, respectively. The total fair values of stock options vested for the three-month periods ended June 28, 2020 and June 30, 2019 were $1,287,000 and $887,000, respectively. The total fair values of stock options vested for the six-month periods ended June 28, 2020 and June 30, 2019 were $37,951,000 and $30,859,000, respectively. Restricted Stock Units (RSUs) The following table summarizes the Company's RSUs activity for the six-month period ended June 28, 2020: Shares Weighted-Average Nonvested as of December 31, 2019 150 $ 48.63 Granted 432 51.53 Vested — — Forfeited or expired (21) 50.54 Nonvested as of June 28, 2020 561 $ 50.79 The weighted-average grant-date fair values of RSUs granted during the three-month and six-month periods ended June 28, 2020 were $56.97 and $51.53, respectively. There were no RSUs that vested during the three-month and six-month periods ended June 28, 2020. There were no RSUs granted or vested during the three-month and six-month periods ended June 30, 2019. Stock-Based Compensation Expense 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 7% to all stock-based awards for senior management and a rate of 12% for all other employees. Each year during the first quarter, the Company revises its forfeiture rate. This resulted in an increase to compensation expense of $1,787,000 in 2020 and a decrease to compensation expense of $499,000 in 2019. As of June 28, 2020, total unrecognized compensation expense related to non-vested equity awards, including stock options and RSUs, was $65,128,000, which is expected to be recognized over a weighted-average period of 2.0 years. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended June 28, 2020 were $8,018,000, which includes credits of $1,401,000 relating to grants cancelled as a result of the Company's workforce reduction, and $1,277,000, respectively, and for the three-month period ended June 30, 2019 were $10,967,000 and $1,813,000, respectively. The total stock-based compensation expense and the related income tax benefit recognized for the six-month period ended June 28, 2020 were $22,808,000 and $3,841,000, respectively, and for the six-month period ended June 30, 2019 were $23,248,000 and $4,035,000, respectively. No compensation expense was capitalized as of June 28, 2020 or December 31, 2019. The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Cost of revenue $ 363 $ 329 $ 717 $ 780 Research, development, and engineering 2,401 3,550 7,767 8,017 Selling, general, and administrative 5,254 7,088 14,324 14,451 $ 8,018 $ 10,967 $ 22,808 $ 23,248 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 28, 2020 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase ProgramIn October 2018, the Company's Board of Directors authorized the repurchase of $200,000,000 of the Company's common stock. As of June 28, 2020, the Company repurchased 2,816,000 shares at a cost of $121,348,000 under this program, including 1,215,000 shares at a cost of $51,036,000 during the three-month period ended March 29, 2020, leaving a remaining balance of $78,652,000. No shares were repurchased during the three-month period ended June 28, 2020. On March 12, 2020, the Company's Board of Directors authorized the repurchase of an additional $200,000,000 of the Company's common stock. Purchases under this March 2020 program will commence upon completion of the October 2018 program. The Company may repurchase shares under these programs in future periods depending upon a variety of factors, including, among other things, the impact of dilution from employee equity awards, stock price, share availability, and cash requirements. The Company is authorized to make repurchases of its common stock through open market purchases, pursuant to Rule 10b5-1 trading plans, or in privately negotiated transactions. |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Taxes A reconciliation of the United States federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows: Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Income tax expense (benefit) at U.S. federal statutory corporate tax rate (21) % 21 % 21 % 21 % State income taxes, net of federal benefit (1) % 1 % 1 % 1 % Foreign tax rate differential 5 % (7) % (5) % (7) % Tax credit 2 % (1) % (2) % (1) % Discrete tax benefit related to stock options (191) % (2) % (29) % (4) % Discrete tax expense related to tax return filings 141 % — % 17 % — % Tax rate adjustment 18 % — % — % — % Other (4) % 2 % 4 % 2 % Income tax expense (51) % 14 % 7 % 12 % 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%. These differences resulted in a favorable impact to the effective tax rate of 5 percentage points for both the three-month and six-month periods ended June 28, 2020, and 7 percentage points for the same periods in 2019. Management has determined that earnings from its legal entity in China will be indefinitely reinvested to provide local funding for growth, and that earnings from all other jurisdictions will not be indefinitely reinvested. The Company recorded discrete tax benefits arising from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes from stock exercises that resulted in a favorable impact to the effective tax rate of 191 and 29 percentage points for the three-month and six-month periods ended June 28, 2020, respectively, and 2 and 4 percentage points for the same periods in 2019. In addition, the Company recorded discrete tax expenses related to the final true-up of the prior year tax accrual upon filing the related tax return that resulted in an unfavorable impact to the effective tax rate of 141 and 17 percentage points for the three-month and six-month periods ended June 28, 2020, respectively. Excluding the impact of these discrete items, the Company’s effective tax rate was a benefit of 1% of pre-tax loss and an expense of 19% of pre-tax income for the three-month and six-month periods in 2020, respectively, compared to an expense of 17% and 16% of pre-tax income for the same periods in 2019. The increase in the effective tax rate, excluding the impact of discrete items, for the six-month period from 16% in 2019 to 19% in 2020 was due to more of the Company's profits being earned and taxed in higher tax jurisdictions. This adjustment to the effective tax rate resulted in an 18 percentage-point impact on the effective tax rate for the three-month period ended June 28, 2020. During the six-month period ended June 28, 2020, the Company recorded a $710,000 increase in reserves for income taxes, net of deferred tax benefit. Estimated interest and penalties included in these amounts totaled $283,000 for the six-month period ended June 28, 2020. The Company’s reserve for income taxes, including gross interest and penalties, was $13,330,000 as of June 28, 2020, which included $12,302,000 classified as a non-current liability and $1,028,000 recorded as an increase to a non-current deferred tax liability. The amount of gross interest and penalties included in these balances was $1,301,000. 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. |
Weighted-Average Shares
Weighted-Average Shares | 6 Months Ended |
Jun. 28, 2020 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares | Weighted-Average Shares Weighted-average shares were calculated as follows (in thousands): Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Basic weighted-average common shares outstanding 172,283 171,318 172,345 171,209 Effect of dilutive equity awards — 4,130 3,154 4,319 Weighted-average common and common-equivalent shares outstanding 172,283 175,448 175,499 175,528 Stock options to purchase 5,801,000 and 6,328,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month and six-month periods ended June 28, 2020, respectively, and 6,113,000 and 5,503,000 for the same periods in 2019, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. Restricted stock units totaling 27,000 and 14,000 shares of common stock, on a weighted-average basis, were outstanding during the three-month and six-month periods ended June 28, 2020. Additionally, because the Company recorded a cumulative net loss during the three-month period ended June 28, 2020, potential common stock equivalents of 3,120,000 were not included in the calculation of diluted net loss per share for this period. There were no anti-dilutive restricted stock units outstanding, on a weighted-average basis, during the three-month and six-month periods ended June 30, 2019, respectively. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges On May 26, 2020, the Company's Board of Directors approved a restructuring plan intended to reduce the Company's operating costs, optimize its business model, and address the impact of the COVID-19 pandemic. The restructuring plan included a global workforce reduction of approximately 8% and office closures. The Company estimates the total restructuring charges from these actions to be approximately $16,445,000, of which $14,798,000 has been recorded in the three-month period ended June 28, 2020 and included in “Restructuring charges” on the Consolidated Statements of Operations. The remaining charges are expected to be recognized during the second half of 2020. The following table summarizes the restructuring charges (in thousands): Total Amount Expected to be Incurred Incurred in the Three-months Ended June 28, 2020 One-time termination benefits $ 11,387 $ 10,386 Contract termination costs 3,995 3,995 Other associated costs 1,063 417 $ 16,445 $ 14,798 One-time termination benefits include severance, health insurance, and outplacement services for 181 employees who were either terminated or have been notified that they will be terminated at a future date. For employees not required to render service beyond a minimum retention period, the one-time termination benefits were recognized in the three-month period ended June 28, 2020. Otherwise, these benefits, including retention bonuses for selected employees, are being recognized over the service period, which is not expected to exceed the fourth quarter of 2020. Contract termination costs include remaining lease liability obligations and operating lease asset impairments for offices closed prior to the end of the contractual lease term. These costs also include the write-off of leasehold improvements and other equipment related to these abandoned offices that had no alternative use. These contract termination costs were recognized in the three-month period ended June 28, 2020 when the Company ceased using the property for economic benefit. Other associated costs primarily include legal fees related to the employee termination actions, which are being recognized when the services are performed. The following table summarizes the activity in the Company’s restructuring reserve, which is included in “Accrued expenses” on the Consolidated Balance Sheets (in thousands): One-time Termination Benefits Contract Termination Costs Other Associated Costs Total Balance as of December 31, 2019 $ — $ — $ — $ — Restructuring charges 10,386 3,995 417 14,798 Cash payments (4,654) (26) (9) (4,689) Non-cash restructuring charges — (3,145) — (3,145) Foreign exchange rate changes 60 5 7 72 Balance as of June 28, 2020 $ 5,792 $ 829 $ 415 $ 7,036 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 28, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn July 29, 2020, the Company’s Board of Directors declared a cash dividend of $0.055 per share. The dividend is payable on August 28, 2020 to all shareholders of record as of the close of business on August 14, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 28, 2020 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments Money market instruments, as well as certificates of deposit and debt securities with original maturities of three months or less, are classified as cash equivalents and are stated at amortized cost. Certificates of deposit and debt securities with original maturities greater than three months and remaining maturities of one year or less are classified as current investments. Debt securities with remaining maturities greater than one year are classified as non-current investments. It is the Company’s policy to invest in debt securities with effective maturities that do not exceed ten years. Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax and credit losses, recorded in shareholders’ equity as other comprehensive income (loss). Realized gains and losses are included in current operations, along with the amortization of the discount or premium on debt securities arising at acquisition, and are calculated using the specific identification method. The Company’s limited partnership interest is accounted for using the cost method because the Company’s investment is less than 5% of the partnership and the Company has no influence over the partnership’s operating and financial policies. The carrying value of this investment has been reduced to zero, and therefore, distributions are recorded as investment income as they occur. Management monitors the carrying value of its investments in debt securities compared to their fair value to determine whether a credit loss or other type of impairment has occurred. If the fair value of a debt security is less than its amortized cost, the Company assesses whether the decline has resulted from a credit loss or other factors. In assessing whether a credit loss exists, the Company compares the present value of the cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis of the security, then a credit loss exists and an allowance for credit losses is recorded. The allowance for credit losses is limited by the amount that the fair value is less than the amortized cost basis of the security. Credit losses on impaired securities continue to be measured in subsequent periods, using the present value of expected future cash flows, and changes in the expected credit losses are recorded in current operations. Credit losses and recoveries are included in "Other income (expense)" on the Consolidated Statement of Operations. When developing an estimate of the expected credit losses, the Company considers all available information relevant to assessing the collectability of cash flows. This information includes internal and external factors, historical and current events, reasonable and supportable forecasts including management's expectations of future economic conditions, the type of security, the credit rating of the security, the size of the loss position, as well as other relevant information. An impairment is recognized as a write-down if (i) the Company has the intent to sell the security or (ii) it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. If impairment is considered upon condition (i) or (ii) described above, the debt security's amortized cost basis is written-down to its fair value and the impairment is recognized in current operations. Subsequent increases in the fair value of the debt securities after the write-down are included in shareholders' equity as other comprehensive income. The differences between the new amortized cost basis and the cash flows expected to be collected are accreted as interest income. Unrealized losses, that have not been recorded through an allowance for credit losses or write-down of the debt security, are recorded in shareholders' equity as other comprehensive loss, net of the applicable taxes. |
Accounts Receivable | Accounts Receivable The Company extends credit with various payment terms to customers based upon an evaluation of their financial condition. Accounts that are outstanding longer than the payment terms are considered to be past due. The Company establishes an allowance against accounts receivable for potential credit losses and records bad debt expense in current operations when it determines receivables are at risk for collection based upon the length of time the receivable has been outstanding, the customer’s current ability to pay its obligations to the Company, general economic and industry conditions, and reasonable forecasts about the future, as well as various other factors. Receivables are written off against this allowance in the period they are determined to be uncollectible and payments subsequently received on previously written-off receivables are recorded as a reversal of the bad debt expense. Credit losses are included in "Selling, general, and administrative expenses" on the Consolidated Statement of Operations. |
New Pronouncements | New Pronouncements Accounting Standards Update (ASU) 2019-12, "Simplifying the Accounting for Income Taxes" ASU 2019-12 applies to all entities within the scope of Topic 740, Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the following exceptions: 1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in this ASU also simplify the accounting for income taxes by doing the following: 1) requiring that an entity recognize a franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that included the enacted date. The amendments in this ASU are effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2020. Early adoption is permitted; however, an entity that elects to early adopt the amendments must adopt all the amendments in the same period. The amendments in this ASU related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments should be applied on a prospective basis. Management does not expect ASU 2019-12 to have a material impact on the Company's consolidated financial statements and disclosures. Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (Topic 848)" The amendments in this ASU apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. Management does not expect ASU 2020-04 to have a material impact on the Company's consolidated financial statements and disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
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 June 28, 2020 (in thousands): Quoted Prices in Significant Other Unobservable Inputs (Level 3) Assets: Money market instruments $ 50,222 $ — $ — Corporate bonds — 236,660 Treasury bills — 230,692 — Asset-backed securities — 91,610 — Sovereign bonds — 27,517 — Agency bonds — 22,054 — Municipal bonds — 1,638 Economic hedge forward contracts — 46 — Liabilities: Economic hedge forward contracts — 458 — Contingent consideration liabilities — — — |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The fair value of the contingent consideration liability related to the Company's acquisition of GVi Ventures, Inc. was written down to zero as of December 31, 2019 resulting from a lower level of revenue in the Americas' automotive industry, and the balance remains at zero as of June 28, 2020. The undiscounted potential outcomes related to future contingent consideration range from $0 to $2,500,000 based upon certain revenue levels over the next two years. |
Cash, Cash Equivalents, and I_2
Cash, Cash Equivalents, and Investments (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Components of Cash, Cash Equivalents, and Investments | Cash, cash equivalents, and investments consisted of the following (in thousands): June 28, 2020 December 31, 2019 Cash $ 235,799 $ 155,498 Money market instruments 50,222 15,933 Cash and cash equivalents 286,021 171,431 Asset-backed securities 50,311 66,680 Corporate bonds 42,248 65,624 Treasury bills 34,018 92,914 Sovereign bonds 14,869 6,294 Municipal bonds 1,638 4,630 Certificate of deposit — 4,328 Current investments 143,084 240,470 Treasury bills 196,674 216,334 Corporate bonds 194,412 146,474 Asset-backed securities 41,299 46,403 Agency bonds 22,054 5,914 Sovereign bonds 12,648 16,005 Municipal bonds — 2,322 Non-current investments 467,087 433,452 $ 896,192 $ 845,353 |
Summary of Available-for-Sale Investments | The following table summarizes the Company’s available-for-sale investments as of June 28, 2020 (in thousands): Amortized Gross Gross Fair Value Current: Asset-backed securities $ 49,899 $ 412 $ — $ 50,311 Corporate bonds 42,065 221 (38) 42,248 Treasury bills 33,480 538 — 34,018 Sovereign bonds 14,787 82 — 14,869 Municipal bonds 1,643 — (5) 1,638 Non-current: Treasury bills 194,330 2,345 (1) 196,674 Corporate bonds 192,233 2,513 (334) 194,412 Asset-backed securities 40,817 484 (2) 41,299 Agency bonds 22,035 37 (18) 22,054 Sovereign bonds 12,533 115 — 12,648 $ 603,822 $ 6,747 $ (398) $ 610,171 |
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 June 28, 2020 (in thousands): Unrealized Loss Position For: Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Corporate bonds $ 49,525 $ (363) $ 1,181 $ (9) $ 50,706 $ (372) Treasury bills 12,962 (1) — — 12,962 (1) Asset-backed securities 5,749 (1) 260 (1) 6,009 (2) Agency bonds 3,128 (2) 2,784 (16) 5,912 (18) Municipal bonds 1,293 (5) — — 1,293 (5) $ 72,657 $ (372) $ 4,225 $ (26) $ 76,882 $ (398) |
Schedule of Allowance for Credit Loss Activity | The following table summarizes the allowance for credit losses activity for the six-month period ended June 28, 2020 (in thousands): Balance as of December 31, 2019 $ — Increases to the allowance for credit losses 160 Decreases to the allowance for credit losses (85) Write-offs — Balance as of June 28, 2020 $ 75 |
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 June 28, 2020 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total Corporate bonds $ 42,248 $ 81,987 $ 102,034 $ 10,391 $ — $ 236,660 Treasury bills 34,018 138,612 58,062 — — 230,692 Asset-backed securities 50,311 13,750 23,308 — 4,241 91,610 Sovereign bonds 14,869 9,218 3,430 — — 27,517 Agency bonds — — 22,054 — — 22,054 Municipal bonds 1,638 — — — — 1,638 $ 143,084 $ 243,567 $ 208,888 $ 10,391 $ 4,241 $ 610,171 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): June 28, 2020 December 31, 2019 Raw materials $ 20,736 $ 27,285 Work-in-process 4,111 5,503 Finished goods 28,106 27,473 $ 52,953 $ 60,261 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | Future operating lease cash payments are as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2020 $ 4,335 2021 8,340 2022 6,169 2023 4,973 2024 2,391 2025 1,322 Thereafter 4,462 $ 31,992 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying value of goodwill were as follows (in thousands): Balance as of December 31, 2019 $ 243,445 Foreign exchange rate changes (1,009) Balance as of June 28, 2020 $ 242,436 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Amortized intangible assets consisted of the following (in thousands): Gross Accumulated Net Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 21,917 11,035 10,882 Customer relationships 10,578 6,795 3,783 In-process technologies 2,300 — 2,300 Non-compete agreements 710 409 301 Trademarks 110 39 71 Balance as of June 28, 2020 $ 73,675 $ 56,338 $ 17,337 Gross Accumulated Net Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 31,987 9,160 22,827 Customer relationships 14,407 6,402 8,005 In-process technologies 8,200 — 8,200 Non-compete agreements 710 350 360 Trademarks 110 12 98 Balance as of December 31, 2019 $ 93,474 $ 53,984 $ 39,490 |
Schedule of Intangible Assets, Future Amortization Expense | As of June 28, 2020, estimated future amortization expense related to intangible assets was as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2020 $ 1,686 2021 3,272 2022 2,902 2023 2,211 2024 1,697 2025 1,374 Thereafter 1,895 $ 15,037 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Product Warranties Disclosures [Abstract] | |
Changes in Warranty Obligations | The changes in the warranty obligation were as follows (in thousands): Balance as of December 31, 2019 $ 4,713 Provisions for warranties issued during the period 1,493 Fulfillment of warranty obligations (927) Balance as of June 28, 2020 $ 5,279 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Forward Contracts Table | The Company had the following outstanding forward contracts (in thousands): June 28, 2020 December 31, 2019 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Korean Won 138,690,000 $ 115,604 161,951,500 $ 139,688 Euro 50,000 56,137 18,000 20,249 Mexican Peso 184,700 8,051 80,000 4,223 Japanese Yen 600,000 5,587 575,000 5,291 Hungarian Forint 1,085,000 3,443 870,000 2,962 British Pound 1,940 2,406 2,700 3,569 Taiwanese Dollar 42,765 1,455 37,450 1,256 Canadian Dollar 1,130 827 1,300 1,000 Singapore Dollar 1,090 784 845 628 |
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 June 28, 2020 December 31, 2019 Sheet June 28, 2020 December 31, 2019 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 46 $ 857 Accrued expenses $ 458 $ 23 |
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 June 28, 2020 December 31, 2019 June 28, 2020 December 31, 2019 Gross amounts of recognized assets $ 46 $ 857 Gross amounts of recognized liabilities $ 458 $ 23 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 46 $ 857 Net amount of liabilities presented $ 458 $ 23 |
Derivative Instruments, Gain (Loss) | Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 60 $ (439) $ (8,180) $ 66 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands): Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Americas $ 68,966 $ 77,408 $ 129,214 $ 142,178 Europe 35,987 59,620 84,569 119,158 Greater China 31,898 35,816 58,301 58,632 Other Asia 32,246 26,203 64,248 52,563 $ 169,097 $ 199,047 $ 336,332 $ 372,531 |
Revenue from External Customers by Products and Services | The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Standard products and services $ 158,807 $ 173,368 $ 311,662 $ 334,420 Application-specific customer solutions 10,290 25,679 24,670 38,111 $ 169,097 $ 199,047 $ 336,332 $ 372,531 |
Schedule of Allowance for Credit Loss Activity | The following table summarizes the allowance for credit losses activity for the six-month period ended June 28, 2020 (in thousands): Balance as of December 31, 2019 $ 530 Increases to the allowance for credit losses 600 Write-offs (186) Foreign exchange rate changes 1 Balance as of June 28, 2020 $ 945 |
Deferred Revenue, by Arrangement, Disclosure | The following table summarizes the deferred revenue and customer deposits activity for the six-month period ended June 28, 2020 (in thousands): Balance as of December 31, 2019 $ 14,432 Increases to deferred revenue and customer deposits 57,904 Recognition of revenue (25,493) Foreign exchange rate changes (105) Balance as of June 28, 2020 $ 46,738 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the six-month period ended June 28, 2020: Shares Weighted- Weighted- Aggregate Outstanding as of December 31, 2019 12,899 $ 37.95 Granted 975 51.58 Exercised (1,822) 26.47 Forfeited or expired (421) 50.28 Outstanding as of June 28, 2020 11,631 $ 40.45 6.98 $ 212,847 Exercisable as of June 28, 2020 5,331 $ 31.59 5.81 $ 144,694 Options vested or expected to vest as of June 28, 2020 (1) 10,683 $ 39.58 6.85 $ 204,795 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. |
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted | The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Risk-free rate 1.6 % 2.7 % 1.6 2.7 % Expected dividend yield 0.43 % 0.39 % 0.43 % 0.39 % Expected volatility 37 % 37 % 37 % 37 % Expected term (in years) 6.0 5.2 6.0 5.3 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Cost of revenue $ 363 $ 329 $ 717 $ 780 Research, development, and engineering 2,401 3,550 7,767 8,017 Selling, general, and administrative 5,254 7,088 14,324 14,451 $ 8,018 $ 10,967 $ 22,808 $ 23,248 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the Company's RSUs activity for the six-month period ended June 28, 2020: Shares Weighted-Average Nonvested as of December 31, 2019 150 $ 48.63 Granted 432 51.53 Vested — — Forfeited or expired (21) 50.54 Nonvested as of June 28, 2020 561 $ 50.79 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate, or Income Tax Provision | A reconciliation of the United States federal statutory corporate tax rate to the Company’s income tax expense, or effective tax rate, was as follows: Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Income tax expense (benefit) at U.S. federal statutory corporate tax rate (21) % 21 % 21 % 21 % State income taxes, net of federal benefit (1) % 1 % 1 % 1 % Foreign tax rate differential 5 % (7) % (5) % (7) % Tax credit 2 % (1) % (2) % (1) % Discrete tax benefit related to stock options (191) % (2) % (29) % (4) % Discrete tax expense related to tax return filings 141 % — % 17 % — % Tax rate adjustment 18 % — % — % — % Other (4) % 2 % 4 % 2 % Income tax expense (51) % 14 % 7 % 12 % |
Weighted-Average Shares (Tables
Weighted-Average Shares (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Weighted-Average Shares | Weighted-average shares were calculated as follows (in thousands): Three-months Ended Six-months Ended June 28, 2020 June 30, 2019 June 28, 2020 June 30, 2019 Basic weighted-average common shares outstanding 172,283 171,318 172,345 171,209 Effect of dilutive equity awards — 4,130 3,154 4,319 Weighted-average common and common-equivalent shares outstanding 172,283 175,448 175,499 175,528 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | The following table summarizes the restructuring charges (in thousands): Total Amount Expected to be Incurred Incurred in the Three-months Ended June 28, 2020 One-time termination benefits $ 11,387 $ 10,386 Contract termination costs 3,995 3,995 Other associated costs 1,063 417 $ 16,445 $ 14,798 |
Schedule of Activity in Restructuring Reserve | The following table summarizes the activity in the Company’s restructuring reserve, which is included in “Accrued expenses” on the Consolidated Balance Sheets (in thousands): One-time Termination Benefits Contract Termination Costs Other Associated Costs Total Balance as of December 31, 2019 $ — $ — $ — $ — Restructuring charges 10,386 3,995 417 14,798 Cash payments (4,654) (26) (9) (4,689) Non-cash restructuring charges — (3,145) — (3,145) Foreign exchange rate changes 60 5 7 72 Balance as of June 28, 2020 $ 5,792 $ 829 $ 415 $ 7,036 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 |
Assets: | ||
Money market instruments | $ 50,222 | $ 15,933 |
Financial assets at fair value | 610,171 | |
Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 236,660 | |
Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 230,692 | |
Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 91,610 | |
Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 27,517 | |
Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 22,054 | |
Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 1,638 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 50,222 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 0 | |
Economic hedge forward contracts | 46 | |
Liabilities: | ||
Economic hedge forward contracts | 458 | |
Contingent consideration liabilities | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 236,660 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 230,692 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 91,610 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 27,517 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 22,054 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 1,638 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Liabilities: | ||
Contingent consideration liabilities | $ 0 | $ 1,153 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Business Combination, Contingent Consideration, Liability | $ 0 | $ 0 | $ 0 | ||
Payment of contingent consideration | 1,039,000 | 1,039,000 | $ 0 | ||
Operating lease asset impairment charges | 2,534,000 | 2,534,000 | 0 | ||
Intangible asset impairment charges | 19,571,000 | $ 0 | 19,571,000 | 0 | |
Reclassification of credit loss on investments | 85,000 | 0 | (75,000) | 0 | |
Gross credit losses recorded | 0 | 0 | 160,000 | 0 | |
Gross recoveries | 85,000 | $ 0 | 85,000 | $ 0 | |
Other Income (Expense) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value adjustment | 114,000 | ||||
Restructuring Charges | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Operating lease asset impairment charges | 2,534,000 | ||||
Chiaro Technologies LLC [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Business Combination, Contingent Consideration, Liability | $ 1,153,000 | ||||
GVi Ventures, Inc. [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 2,500,000 | 2,500,000 | |||
Minimum | GVi Ventures, Inc. [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | $ 0 |
Cash, Cash Equivalents, and I_3
Cash, Cash Equivalents, and Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cash and Cash Equivalents [Line Items] | |||||
Reclassification of credit loss on investments | $ 85 | $ 0 | $ (75) | $ 0 | |
Gross realized gains on sale of investments | 962 | 394 | 2,826 | 458 | |
Gross realized losses on sale of investments | 7 | $ 12 | 21 | $ 36 | |
Other Current Assets | |||||
Cash and Cash Equivalents [Line Items] | |||||
Accrued interest receivable | $ 1,958 | $ 1,958 | $ 2,874 |
Cash, Cash Equivalents, and I_4
Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Cash | $ 235,799 | $ 155,498 |
Money market instruments | 50,222 | 15,933 |
Cash and cash equivalents | 286,021 | 171,431 |
Current investments, amortized cost of $141,874 and $235,610 in 2020 and 2019, respectively, allowance for expected credit losses of $0 in 2020 and 2019 | 143,084 | 240,470 |
Non-current investments, amortized cost of $461,948 and $431,633 in 2020 and 2019, respectively, allowance for expected credit losses of $75 and $0 in 2020 and 2019, respectively | 467,087 | 433,452 |
Total | 896,192 | 845,353 |
Treasury Bills | ||
Debt Securities, Available-for-sale [Line Items] | ||
Current investments, amortized cost of $141,874 and $235,610 in 2020 and 2019, respectively, allowance for expected credit losses of $0 in 2020 and 2019 | 34,018 | 92,914 |
Long-term investments | 196,674 | 216,334 |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Current investments, amortized cost of $141,874 and $235,610 in 2020 and 2019, respectively, allowance for expected credit losses of $0 in 2020 and 2019 | 42,248 | 65,624 |
Long-term investments | 194,412 | 146,474 |
Asset-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Current investments, amortized cost of $141,874 and $235,610 in 2020 and 2019, respectively, allowance for expected credit losses of $0 in 2020 and 2019 | 50,311 | 66,680 |
Long-term investments | 41,299 | 46,403 |
Certificate of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Current investments, amortized cost of $141,874 and $235,610 in 2020 and 2019, respectively, allowance for expected credit losses of $0 in 2020 and 2019 | 0 | 4,328 |
Sovereign Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Long-term investments | 12,648 | 16,005 |
Agency Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Long-term investments | 22,054 | 5,914 |
Municipal Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Current investments, amortized cost of $141,874 and $235,610 in 2020 and 2019, respectively, allowance for expected credit losses of $0 in 2020 and 2019 | 1,638 | 4,630 |
Long-term investments | 0 | 2,322 |
Sovereign bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Current investments, amortized cost of $141,874 and $235,610 in 2020 and 2019, respectively, allowance for expected credit losses of $0 in 2020 and 2019 | $ 14,869 | $ 6,294 |
Cash, Cash Equivalents, and I_5
Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | $ 603,822 |
Gross unrealized gains | 6,747 |
Gross unrealized losses | (398) |
Fair value | 610,171 |
Agency Bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Fair value | 22,054 |
Agency Bonds | Long-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 22,035 |
Gross unrealized gains | 37 |
Gross unrealized losses | (18) |
Fair value | 22,054 |
Treasury Bills | |
Debt Securities, Available-for-sale [Line Items] | |
Fair value | 230,692 |
Treasury Bills | Short-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 33,480 |
Gross unrealized gains | 538 |
Gross unrealized losses | 0 |
Fair value | 34,018 |
Treasury Bills | Long-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 194,330 |
Gross unrealized gains | 2,345 |
Gross unrealized losses | (1) |
Fair value | 196,674 |
Corporate Bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Fair value | 236,660 |
Corporate Bonds | Short-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 42,065 |
Gross unrealized gains | 221 |
Gross unrealized losses | (38) |
Fair value | 42,248 |
Corporate Bonds | Long-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 192,233 |
Gross unrealized gains | 2,513 |
Gross unrealized losses | (334) |
Fair value | 194,412 |
Asset-Backed Securities | |
Debt Securities, Available-for-sale [Line Items] | |
Fair value | 91,610 |
Asset-Backed Securities | Short-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 49,899 |
Gross unrealized gains | 412 |
Gross unrealized losses | 0 |
Fair value | 50,311 |
Asset-Backed Securities | Long-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 40,817 |
Gross unrealized gains | 484 |
Gross unrealized losses | (2) |
Fair value | 41,299 |
Sovereign Bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Fair value | 27,517 |
Sovereign Bonds | Short-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 14,787 |
Gross unrealized gains | 82 |
Gross unrealized losses | 0 |
Fair value | 14,869 |
Sovereign Bonds | Long-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 12,533 |
Gross unrealized gains | 115 |
Gross unrealized losses | 0 |
Fair value | 12,648 |
Municipal Bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Fair value | 1,638 |
Municipal Bonds | Short-Term Investments | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost | 1,643 |
Gross unrealized gains | 0 |
Gross unrealized losses | (5) |
Fair value | $ 1,638 |
Cash, Cash Equivalents, and I_6
Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Fair value, less than 12 months | $ 72,657,000 | $ 72,657,000 | ||
Unrealized losses, less than 12 months | (372,000) | (372,000) | ||
Fair value, 12 months or greater | 4,225,000 | 4,225,000 | ||
Unrealized losses, 12 months or greater | (26,000) | (26,000) | ||
Total fair value | 76,882,000 | 76,882,000 | ||
Total unrealized losses | 398,000 | 398,000 | ||
Gross credit losses recorded | 0 | $ 0 | 160,000 | $ 0 |
Gross recoveries | 85,000 | $ 0 | 85,000 | $ 0 |
Treasury Bills | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fair value, less than 12 months | 12,962,000 | 12,962,000 | ||
Unrealized losses, less than 12 months | (1,000) | (1,000) | ||
Fair value, 12 months or greater | 0 | 0 | ||
Unrealized losses, 12 months or greater | 0 | 0 | ||
Total fair value | 12,962,000 | 12,962,000 | ||
Total unrealized losses | 1,000 | 1,000 | ||
Agency Bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fair value, less than 12 months | 3,128,000 | 3,128,000 | ||
Unrealized losses, less than 12 months | (2,000) | (2,000) | ||
Fair value, 12 months or greater | 2,784,000 | 2,784,000 | ||
Unrealized losses, 12 months or greater | (16,000) | (16,000) | ||
Total fair value | 5,912,000 | 5,912,000 | ||
Total unrealized losses | 18,000 | 18,000 | ||
Corporate Bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fair value, less than 12 months | 49,525,000 | 49,525,000 | ||
Unrealized losses, less than 12 months | (363,000) | (363,000) | ||
Fair value, 12 months or greater | 1,181,000 | 1,181,000 | ||
Unrealized losses, 12 months or greater | (9,000) | (9,000) | ||
Total fair value | 50,706,000 | 50,706,000 | ||
Total unrealized losses | 372,000 | 372,000 | ||
Asset-Backed Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fair value, less than 12 months | 5,749,000 | 5,749,000 | ||
Unrealized losses, less than 12 months | (1,000) | (1,000) | ||
Fair value, 12 months or greater | 260,000 | 260,000 | ||
Unrealized losses, 12 months or greater | (1,000) | (1,000) | ||
Total fair value | 6,009,000 | 6,009,000 | ||
Total unrealized losses | 2,000 | 2,000 | ||
Municipal Bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fair value, less than 12 months | 1,293,000 | 1,293,000 | ||
Unrealized losses, less than 12 months | (5,000) | (5,000) | ||
Fair value, 12 months or greater | 0 | 0 | ||
Unrealized losses, 12 months or greater | 0 | 0 | ||
Total fair value | 1,293,000 | 1,293,000 | ||
Total unrealized losses | $ 5,000 | $ 5,000 |
Cash, Cash Equivalents, and I_7
Cash, Cash Equivalents, and Investments Cash, Cash Equivalents, and Investments - Schedule of Allowance for Credit Loss Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of December 31, 2019 | $ 0 | |||
Increases to the allowance for credit losses | $ 0 | $ 0 | 160,000 | $ 0 |
Decreases to the allowance for credit losses | (85,000) | 0 | (85,000) | 0 |
Write-offs | 0 | |||
Balance as of June 28, 2020 | 75,000 | 75,000 | ||
Reclassification of credit loss on investments | $ 85,000 | $ 0 | $ (75,000) | $ 0 |
Cash, Cash Equivalents, and I_8
Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
1 year or less | $ 143,084 |
1-2 years | 243,567 |
2-3 years | 208,888 |
3-4 years | 10,391 |
4-5 years | 4,241 |
Fair value | 610,171 |
Corporate Bonds | |
Debt Securities, Available-for-sale [Line Items] | |
1 year or less | 42,248 |
1-2 years | 81,987 |
2-3 years | 102,034 |
3-4 years | 10,391 |
4-5 years | 0 |
Fair value | 236,660 |
Treasury Bills | |
Debt Securities, Available-for-sale [Line Items] | |
1 year or less | 34,018 |
1-2 years | 138,612 |
2-3 years | 58,062 |
3-4 years | 0 |
4-5 years | 0 |
Fair value | 230,692 |
Asset-Backed Securities | |
Debt Securities, Available-for-sale [Line Items] | |
1 year or less | 50,311 |
1-2 years | 13,750 |
2-3 years | 23,308 |
3-4 years | 0 |
4-5 years | 4,241 |
Fair value | 91,610 |
Sovereign Bonds | |
Debt Securities, Available-for-sale [Line Items] | |
1 year or less | 14,869 |
1-2 years | 9,218 |
2-3 years | 3,430 |
3-4 years | 0 |
4-5 years | 0 |
Fair value | 27,517 |
Agency Bonds | |
Debt Securities, Available-for-sale [Line Items] | |
1 year or less | 0 |
1-2 years | 0 |
2-3 years | 22,054 |
3-4 years | 0 |
4-5 years | 0 |
Fair value | 22,054 |
Municipal Bonds | |
Debt Securities, Available-for-sale [Line Items] | |
1 year or less | 1,638 |
1-2 years | 0 |
2-3 years | 0 |
3-4 years | 0 |
4-5 years | 0 |
Fair value | $ 1,638 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 20,736 | $ 27,285 |
Work-in-process | 4,111 | 5,503 |
Finished goods | 28,106 | 27,473 |
Inventories | $ 52,953 | $ 60,261 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 28, 2020 | Jun. 28, 2020 | Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |||
Excess and obsolete inventory charges | $ 7,718 | $ 8,783 | $ 1,713 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating Lease, Liability | $ 28,836,000 | $ 28,836,000 | $ 17,973,000 | ||
Operating lease, right-of-use asset | 25,819,000 | 25,819,000 | 17,522,000 | ||
Operating lease, liability, current | 7,628,000 | 7,628,000 | 5,647,000 | ||
Operating lease, liability, noncurrent | 21,208,000 | 21,208,000 | $ 12,326,000 | ||
Operating lease, cost | 2,147,000 | $ 1,742,000 | 4,053,000 | $ 3,227,000 | |
Operating lease, payments | 2,091,000 | 1,669,000 | 3,954,000 | 3,070,000 | |
Lease, cost | $ 23,000 | $ 64,000 | $ 62,000 | $ 233,000 | |
Weighted average discount rate | 4.10% | 4.80% | 4.10% | 4.80% | |
Weighted average remaining lease term | 5 years 3 months 18 days | 3 years 7 months 6 days | 5 years 3 months 18 days | 3 years 7 months 6 days | |
Operating lease asset impairment charges | $ 2,534,000 | $ 2,534,000 | $ 0 | ||
Carrying value operating lease right-of-use assets impaired | 0 | 0 | |||
Rental income | $ 0 | $ 81,000 | $ 77,000 | $ 158,000 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payment Obligations Under Operating Leases (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2019 | $ 4,335 |
2021 | 8,340 |
2022 | 6,169 |
2023 | 4,973 |
2024 | 2,391 |
2025 | 1,322 |
Thereafter | 4,462 |
Total | $ 31,992 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 28, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2019 | $ 243,445 |
Foreign exchange rate changes | (1,009) |
Balance as of December 31, 2019 | $ 242,436 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | May 26, 2020 | Dec. 31, 2019 | |
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Gross Carrying Value | $ 73,675,000 | $ 73,675,000 | $ 93,474,000 | |||
Accumulated Amortization | 56,338,000 | 56,338,000 | 53,984,000 | |||
Net Carrying Value | 17,337,000 | 17,337,000 | 39,490,000 | |||
Intangible asset impairment charges | 19,571,000 | $ 0 | 19,571,000 | $ 0 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Net Carrying Value | 17,337,000 | 17,337,000 | 39,490,000 | |||
Distribution networks | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Gross Carrying Value | 38,060,000 | 38,060,000 | 38,060,000 | |||
Accumulated Amortization | 38,060,000 | 38,060,000 | 38,060,000 | |||
Net Carrying Value | 0 | 0 | 0 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Net Carrying Value | 0 | 0 | 0 | |||
Completed technologies | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Gross Carrying Value | 21,917,000 | 21,917,000 | 31,987,000 | |||
Accumulated Amortization | 11,035,000 | 11,035,000 | 9,160,000 | |||
Net Carrying Value | 10,882,000 | 10,882,000 | 22,827,000 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Net Carrying Value | 10,882,000 | 10,882,000 | 22,827,000 | |||
Completed technologies | Sualab [Member] | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Intangible asset impairment charges | 10,070,000 | |||||
Customer relationships | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Gross Carrying Value | 10,578,000 | 10,578,000 | 14,407,000 | |||
Accumulated Amortization | 6,795,000 | 6,795,000 | 6,402,000 | |||
Net Carrying Value | 3,783,000 | 3,783,000 | 8,005,000 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Net Carrying Value | 3,783,000 | 3,783,000 | 8,005,000 | |||
Customer relationships | Sualab [Member] | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Intangible asset impairment charges | 3,382,000 | |||||
Customer relationships | EnShape GmbH [Member] | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Accumulated Amortization | $ 228,000 | |||||
Intangible asset impairment charges | 219,000 | |||||
Intangible assets acquired | 0 | 0 | $ 447,000 | |||
In-process technologies | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Gross Carrying Value | 2,300,000 | 2,300,000 | 8,200,000 | |||
Accumulated Amortization | 0 | 0 | 0 | |||
Net Carrying Value | 2,300,000 | 2,300,000 | 8,200,000 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Net Carrying Value | 2,300,000 | 2,300,000 | 8,200,000 | |||
In-process technologies | Sualab [Member] | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Intangible asset impairment charges | 5,900,000 | |||||
Non-compete agreements | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Gross Carrying Value | 710,000 | 710,000 | 710,000 | |||
Accumulated Amortization | 409,000 | 409,000 | 350,000 | |||
Net Carrying Value | 301,000 | 301,000 | 360,000 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Net Carrying Value | 301,000 | 301,000 | 360,000 | |||
Trademarks | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Gross Carrying Value | 110,000 | 110,000 | 110,000 | |||
Accumulated Amortization | 39,000 | 39,000 | 12,000 | |||
Net Carrying Value | 71,000 | 71,000 | 98,000 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Net Carrying Value | 71,000 | 71,000 | $ 98,000 | |||
Indefinite-lived intangible asset excluding in-process technologies | ||||||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||||||
Net Carrying Value | 15,037,000 | 15,037,000 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Remainder of fiscal 2020 | 1,686,000 | 1,686,000 | ||||
2021 | 3,272,000 | 3,272,000 | ||||
2022 | 2,902,000 | 2,902,000 | ||||
2023 | 2,211,000 | 2,211,000 | ||||
2024 | 1,697,000 | 1,697,000 | ||||
2025 | 1,374,000 | 1,374,000 | ||||
Thereafter | 1,895,000 | 1,895,000 | ||||
Net Carrying Value | $ 15,037,000 | $ 15,037,000 |
Warranty Obligations - Changes
Warranty Obligations - Changes in Warranty Obligations (Detail) $ in Thousands | 6 Months Ended |
Jun. 28, 2020USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 4,713 |
Provisions for warranties issued during the period | 1,493 |
Fulfillment of warranty obligations | (927) |
Ending balance | $ 5,279 |
Derivative Instruments (Details
Derivative Instruments (Details) | 6 Months Ended |
Jun. 28, 2020 | |
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 (Details) - Not Designated as Hedging Instrument € in Thousands, ₩ in Thousands, ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Jun. 28, 2020KRW (₩) | Jun. 28, 2020USD ($) | Jun. 28, 2020EUR (€) | Jun. 28, 2020JPY (¥) | Jun. 28, 2020TWD ($) | Jun. 28, 2020CAD ($) | Jun. 28, 2020SGD ($) | Dec. 31, 2019KRW (₩) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019JPY (¥) | Dec. 31, 2019TWD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019SGD ($) |
Euro Member Countries, Euro | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | $ 56,137 | € 50,000 | $ 20,249 | € 18,000 | ||||||||||
Japanese Yen | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | 5,587 | ¥ 600,000 | 5,291 | ¥ 575,000 | ||||||||||
Mexico, Pesos | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | 8,051 | 184,700 | 4,223 | 80,000 | ||||||||||
United Kingdom, Pounds | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | 2,406 | 1,940 | 3,569 | 2,700 | ||||||||||
Hungary, Forint | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | 3,443 | ¥ 1,085,000 | 2,962 | ¥ 870,000 | ||||||||||
Korean Won | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | ₩ 138,690,000 | 115,604 | ₩ 161,951,500 | 139,688 | ||||||||||
Taiwanese Dollar | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | 1,455 | $ 42,765 | 1,256 | $ 37,450 | ||||||||||
Canada, Dollars | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | 827 | $ 1,130 | 1,000 | $ 1,300 | ||||||||||
Singapore, Dollars | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Outstanding forward contracts | $ 784 | $ 1,090 | $ 628 | $ 845 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 46 | $ 857 |
Derivative liability | 458 | 23 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 46 | 857 |
Not Designated as Hedging Instrument | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 458 | $ 23 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized assets | $ 46 | $ 857 |
Gross amounts offset | 0 | 0 |
Net amount of assets presented | 46 | 857 |
Gross amounts of recognized liabilities | 458 | 23 |
Gross amounts offset | 0 | 0 |
Net amount of liabilities presented | $ 458 | $ 23 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Not Designated as Hedging Instrument | Foreign Currency Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in current operations | $ 60 | $ (439) | $ (8,180) | $ 66 |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 169,097 | $ 199,047 | $ 336,332 | $ 372,531 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 68,966 | 77,408 | 129,214 | 142,178 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 35,987 | 59,620 | 84,569 | 119,158 |
Greater China | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,898 | 35,816 | 58,301 | 58,632 |
Other Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 32,246 | $ 26,203 | $ 64,248 | $ 52,563 |
Revenue Recognition - Revenue_2
Revenue Recognition - Revenue Disaggregated by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 169,097 | $ 199,047 | $ 336,332 | $ 372,531 |
Standard Products and Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 158,807 | 173,368 | 311,662 | 334,420 |
Application-Specific Customer Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 10,290 | $ 25,679 | $ 24,670 | $ 38,111 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Costs to fulfill contract | $ 10,888 | $ 10,888 | $ 3,963 | ||
Credit losses on accounts receivable | $ 300 | $ 90 | $ 600 | $ 90 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance as of December 31, 2019 | $ 530 | |||
Increases to the allowance for credit losses | $ 300 | $ 90 | 600 | $ 90 |
Write-offs | (186) | |||
Foreign exchange rate changes | 1 | |||
Balance as of June 28, 2020 | $ 945 | $ 945 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 28, 2020USD ($) | |
Movement in Deferred Revenue [Roll Forward] | |
Balance as of December 31, 2019 | $ 14,432 |
Increases to deferred revenue and customer deposits | 57,904 |
Recognition of revenue | (25,493) |
Foreign exchange rate changes | (105) |
Balance as of June 28, 2020 | $ 46,738 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020USD ($)group$ / sharesshares | Jun. 30, 2019USD ($)$ / shares | Jun. 28, 2020USD ($)group$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant-date fair values, in dollars per share | $ / shares | $ 19.13 | $ 18.68 | $ 18.52 | $ 18.59 |
Total intrinsic value | $ 39,359,000 | $ 14,220,000 | $ 53,814,000 | $ 36,799,000 |
Total fair values of stock options vest | $ 1,287,000 | 887,000 | $ 37,951,000 | $ 30,859,000 |
Vested (in shares) | shares | 0 | |||
Groups within the employee population | group | 2 | 2 | ||
Estimated annual forfeiture rate for unvested options for senior management | 7.00% | 7.00% | ||
Estimated annual forfeiture rate for unvested options for all other employees | 12.00% | 12.00% | ||
Increase (decrease) to compensation expense | $ 1,787,000 | $ 499,000 | ||
Unrecognized compensation expense | $ 65,128,000 | $ 65,128,000 | ||
Weighted average period to be recognized | 2 years | |||
Stock-based compensation expense | 8,018,000 | 10,967,000 | $ 22,808,000 | 23,248,000 |
Credits related to grants cancelled | 1,401,000 | 1,401,000 | ||
Tax benefit from compensation expense | 1,277,000 | $ 1,813,000 | 3,841,000 | $ 4,035,000 |
Recognized period costs capitalized | $ 0 | $ 0 | ||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant under stock option plans | shares | 16,335,000 | 16,335,000 | ||
Expiration period from grant day | 10 years | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock option plans | 3 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in dollars per share) | $ / shares | $ 56.97 | $ 51.53 | ||
Vested (in shares) | shares | 0 | |||
Granted (in shares) | shares | 432,000 | 0 | ||
Minimum | General Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock option plans | 4 years | |||
Maximum | General Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for stock option plans | 5 years |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 28, 2020USD ($)$ / sharesshares | |
Shares (in thousands) | |
Outstanding, shares | shares | 12,899 |
Granted, shares | shares | 975 |
Exercised, shares | shares | (1,822) |
Forfeited or expired, shares | shares | (421) |
Outstanding, shares | shares | 11,631 |
Exercisable as of reporting date, shares | shares | 5,331 |
Options vested or expected to vest as of reporting date, shares | shares | 10,683 |
Weighted- Average Exercise Price | |
Outstanding, shares | $ / shares | $ 37.95 |
Granted, in dollars per share | $ / shares | 51.58 |
Exercised, in dollars per share | $ / shares | 26.47 |
Forfeited or expired, in dollars per share | $ / shares | 50.28 |
Outstanding, shares | $ / shares | 40.45 |
Exercisable as of reporting date, Weighted-Average Exercise Price, in dollars per share | $ / shares | 31.59 |
Weighted- Average Remaining Contractual Term (in years) | $ / shares | $ 39.58 |
Weighted- Average Remaining Contractual Term (in years) | |
Outstanding, in years | 6 years 11 months 23 days |
Exercisable, in years | 5 years 9 months 21 days |
Options vested or expected to vest, in years | 6 years 10 months 6 days |
Aggregate Intrinsic Value (in thousands) | |
Outstanding, in dollars | $ | $ 212,847 |
Exercisable, in dollars | $ | 144,694 |
Options vested or expected to vest, in dollars | $ | $ 204,795 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Risk-free rate | 1.60% | 2.70% | 1.60% | 2.70% |
Expected dividend yield | 0.43% | 0.39% | 0.43% | 0.39% |
Expected volatility | 37.00% | 37.00% | 37.00% | 37.00% |
Expected term (in years) | 6 years | 5 years 2 months 12 days | 6 years | 5 years 3 months 18 days |
Stock-Based Compensation Expe_6
Stock-Based Compensation Expense Stock-Based Compensation Expense - Schedule of Restricted Stock Units (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 28, 2020 | Jun. 28, 2020 | Jun. 30, 2019 | |
Shares (in thousands) | |||
Vested (in shares) | 0 | ||
Restricted Stock Units (RSUs) | |||
Shares (in thousands) | |||
Nonvested as of December 31, 2019 (in shares) | 150,000 | ||
Granted (in shares) | 432,000 | 0 | |
Vested (in shares) | 0 | ||
Forfeited or expired (in shares) | (21,000) | ||
Nonvested as of March 29, 2020 (in shares) | 561,000 | 561,000 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested as of December 31, 2019 (in dollars per share) | $ 48.63 | ||
Granted (in dollars per share) | $ 56.97 | 51.53 | |
Vested (in dollars per share) | 0 | ||
Forfeited or expired (in dollars per share) | 50.54 | ||
Nonvested as of March 29, 2020 (in dollars per share) | $ 50.79 | $ 50.79 |
Stock-Based Compensation Expe_7
Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 8,018 | $ 10,967 | $ 22,808 | $ 23,248 |
Cost of Revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 363 | 329 | 717 | 780 |
Research, Development, and Engineering Expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 2,401 | 3,550 | 7,767 | 8,017 |
Selling, General, and Administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 5,254 | $ 7,088 | $ 14,324 | $ 14,451 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Mar. 29, 2020 | Mar. 12, 2020 | Oct. 29, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Remaining authorized repurchase amount | $ 78,652,000 | $ 78,652,000 | |||||
Stock repurchased during period, value | $ 0 | $ 61,690,000 | $ 51,036,000 | $ 61,690,000 | |||
Repurchase Program October 2018 | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized common stock to be repurchased | $ 200,000,000 | ||||||
Share repurchased (in shares) | 2,816 | 2,816 | 1,215 | ||||
Shares repurchased, value | $ 121,348,000 | $ 121,348,000 | $ 51,036,000 | ||||
Repurchase Program March 2020 | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized common stock to be repurchased | $ 200,000,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate, or Income Tax Provision (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) at U.S. federal statutory corporate tax rate | (21.00%) | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | (1.00%) | 1.00% | 1.00% | 1.00% |
Foreign tax rate differential | 5.00% | (7.00%) | (5.00%) | (7.00%) |
Tax credit | 2.00% | (1.00%) | (2.00%) | (1.00%) |
Discrete tax benefit related to stock options | (191.00%) | (2.00%) | (29.00%) | (4.00%) |
Discrete tax expense related to tax return filings | (141.00%) | 0.00% | (17.00%) | 0.00% |
Tax rate adjustment | 18.00% | 0.00% | 0.00% | 0.00% |
Other | (4.00%) | 2.00% | 4.00% | 2.00% |
Income tax expense | (51.00%) | 14.00% | 7.00% | 12.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense (benefit) at U.S. federal statutory corporate tax rate | (21.00%) | 21.00% | 21.00% | 21.00% | |
Decrease in effective tax rate | (5.00%) | 7.00% | 5.00% | 7.00% | |
Decrease in effective tax rate for difference between deduction for tax purposes and compensation cost recognized from stock option exercises | 191.00% | 2.00% | 29.00% | 4.00% | |
Discrete tax expense related to tax return filings (as a percent) | 141.00% | 0.00% | 17.00% | 0.00% | |
Tax rate adjustment (as a percent) | 18.00% | 0.00% | 0.00% | 0.00% | |
Increase in reserves for income taxes, net of deferred tax benefit | $ 710 | $ 710 | |||
Interest and penalties included in reserve | 283 | ||||
Liability for uncertain tax positions | 13,330 | 13,330 | |||
Reserve for income taxes classified as a noncurrent iability | 12,302 | 12,302 | $ 11,563 | ||
Reserve for income taxes classified an noncurrent deferred tax assets | 1,028 | 1,028 | |||
Interest and penalties, gross | $ 1,301 | $ 1,301 | |||
Tax years open to examination by Internal Revenue Service | 2016 through 2019 | ||||
Tax years open to examination by various taxing authorities for other entities | 2015 through 2019 | ||||
Effective tax rate excluding discrete items (as a percent) | (1.00%) | 17.00% | 19.00% | 16.00% | |
Foreign Tax Authority | Revenue Commissioners, Ireland | |||||
Income Tax Contingency [Line Items] | |||||
Income tax expense (benefit) at U.S. federal statutory corporate tax rate | 12.50% | ||||
Foreign Tax Authority | State Administration of Taxation, China | |||||
Income Tax Contingency [Line Items] | |||||
Income tax expense (benefit) at U.S. federal statutory corporate tax rate | 25.00% | ||||
Domestic Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Income tax expense (benefit) at U.S. federal statutory corporate tax rate | 21.00% |
Weighted-Average Shares (Detail
Weighted-Average Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effect of dilutive equity awards | 0 | 4,130,000 | 3,154,000 | 4,319,000 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (shares) | 5,801,000 | 6,113,000 | 6,328,000 | 5,503,000 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (shares) | 27,000 | 14,000 |
Weighted-Average Shares - Calcu
Weighted-Average Shares - Calculation of Weighted-Average Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average common shares outstanding | 172,283,000 | 171,318,000 | 172,345,000 | 171,209,000 |
Effect of dilutive equity awards | 0 | 4,130,000 | 3,154,000 | 4,319,000 |
Weighted-average common and common-equivalent shares outstanding | 172,283,000 | 175,448,000 | 175,499,000 | 175,528,000 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Number Basic Shares Outstanding Adjustment, Pro Forma | 3,120,000 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) $ in Thousands | May 26, 2020USD ($)Employees |
Restructuring and Related Activities [Abstract] | |
Workforce reduction (as a percent) | 8.00% |
Expected number of positions eliminated | Employees | 181 |
Total Amount Expected to be Incurred | $ | $ 16,445 |
Restructuring Charges - Summary
Restructuring Charges - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | May 26, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Total Amount Expected to be Incurred | $ 16,445 | ||||
Incurred in the Three-months Ended June 28, 2020 | $ 14,798 | $ 0 | $ 14,798 | $ 0 | |
One-time termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Amount Expected to be Incurred | 11,387 | ||||
Incurred in the Three-months Ended June 28, 2020 | 10,386 | 10,386 | |||
Contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Amount Expected to be Incurred | 3,995 | ||||
Incurred in the Three-months Ended June 28, 2020 | 3,995 | 3,995 | |||
Other associated costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total Amount Expected to be Incurred | $ 1,063 | ||||
Incurred in the Three-months Ended June 28, 2020 | $ 417 | $ 417 |
Restructuring Charges - Activit
Restructuring Charges - Activity in Restructuring Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 0 | |||
Restructuring charges | $ 14,798 | $ 0 | 14,798 | $ 0 |
Cash payments | (4,689) | |||
Non-cash restructuring charges | (3,145) | |||
Foreign exchange rate changes | 72 | |||
Balance at end of period | 7,036 | 7,036 | ||
One-time Termination Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Restructuring charges | 10,386 | 10,386 | ||
Cash payments | (4,654) | |||
Non-cash restructuring charges | 0 | |||
Foreign exchange rate changes | 60 | |||
Balance at end of period | 5,792 | 5,792 | ||
Contract Termination Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Restructuring charges | 3,995 | 3,995 | ||
Cash payments | (26) | |||
Non-cash restructuring charges | (3,145) | |||
Foreign exchange rate changes | 5 | |||
Balance at end of period | 829 | 829 | ||
Other Associated Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Restructuring charges | 417 | 417 | ||
Cash payments | (9) | |||
Non-cash restructuring charges | 0 | |||
Foreign exchange rate changes | 7 | |||
Balance at end of period | $ 415 | $ 415 |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 29, 2020USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends (in dollars per share) | $ 0.055 |