Cover Page
Cover Page | 9 Months Ended |
Oct. 02, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Oct. 02, 2022 |
Document Transition Report | false |
Entity File Number | 001-34218 |
Entity Registrant Name | COGNEX CORP |
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 |
Title of 12(b) Security | Common Stock, par value $.002 per share |
Trading Symbol | CGNX |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000851205 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 172,930,176 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 209,622 | $ 284,848 | $ 766,657 | $ 793,033 |
Cost of revenue | 57,383 | 85,712 | 214,316 | 208,189 |
Gross margin | 152,239 | 199,136 | 552,341 | 584,844 |
Research, development, and engineering expenses | 33,954 | 34,476 | 103,999 | 99,883 |
Selling, general, and administrative expenses | 75,371 | 77,113 | 236,156 | 226,380 |
Loss from fire (Note 17) | 2,891 | 0 | 20,294 | 0 |
Operating income | 40,023 | 87,547 | 191,892 | 258,581 |
Foreign currency gain (loss) | (1,880) | (586) | (4,367) | (2,233) |
Investment income | 1,416 | 1,748 | 4,389 | 5,025 |
Other income (expense) | (214) | (125) | (450) | (420) |
Income before income tax expense | 39,345 | 88,584 | 191,464 | 260,953 |
Income tax expense | 5,365 | 9,684 | 31,250 | 34,607 |
Net income | $ 33,980 | $ 78,900 | $ 160,214 | $ 226,346 |
Net income per weighted-average common and common-equivalent share: | ||||
Basic (usd per share) | $ 0.20 | $ 0.45 | $ 0.92 | $ 1.28 |
Diluted (usd per share) | $ 0.19 | $ 0.44 | $ 0.91 | $ 1.26 |
Weighted-average common and common-equivalent shares outstanding: | ||||
Basic (shares) | 173,256 | 176,812 | 173,640 | 176,572 |
Diluted (shares) | 174,327 | 180,342 | 175,233 | 180,109 |
Cash dividends per common share (usd per share) | $ 0.065 | $ 0.060 | $ 0.195 | $ 0.180 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 33,980 | $ 78,900 | $ 160,214 | $ 226,346 |
Available-for-sale investments: | ||||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (5,315) | (521) | (21,185) | (2,617) |
Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations | 79 | (19) | 103 | (87) |
Net change related to available-for-sale investments | (5,236) | (540) | (21,082) | (2,704) |
Foreign currency translation adjustments: | ||||
Foreign currency translation adjustments | (7,352) | (2,136) | (13,425) | (5,243) |
Net change related to foreign currency translation adjustments | (7,352) | (2,136) | (13,425) | (5,243) |
Other comprehensive income (loss), net of tax | (12,588) | (2,676) | (34,507) | (7,947) |
Total comprehensive income | $ 21,392 | $ 76,224 | $ 125,707 | $ 218,399 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect of unrealized gain (loss) on available-for-sale investments | $ (1,564) | $ (162) | $ (6,298) | $ (808) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 266,004 | $ 186,161 |
Current investments, amortized cost of $213,044 and $137,124 in 2022 and 2021, respectively, allowance for credit losses of $0 in 2022 and 2021 | 208,430 | 137,455 |
Accounts receivable, allowance for credit losses of $741 and $776 in 2022 and 2021, respectively | 96,292 | 130,348 |
Unbilled revenue | 2,142 | 3,990 |
Inventories | 108,553 | 113,102 |
Prepaid expenses and other current assets | 106,046 | 68,742 |
Total current assets | 787,467 | 639,798 |
Non-current investments, amortized cost of $369,868 and $587,981 in 2022 and 2021, respectively, allowance for credit losses of $0 in 2022 and 2021 | 343,198 | 583,748 |
Property, plant, and equipment, net | 79,425 | 77,546 |
Operating lease assets | 31,514 | 23,157 |
Goodwill | 237,509 | 241,713 |
Intangible assets, net | 9,420 | 11,888 |
Deferred income taxes | 405,136 | 418,570 |
Other assets | 6,567 | 7,242 |
Total assets | 1,900,236 | 2,003,662 |
Current liabilities: | ||
Accounts payable | 22,220 | 44,051 |
Accrued expenses | 64,115 | 92,432 |
Accrued income taxes | 12,055 | 8,577 |
Deferred revenue and customer deposits | 54,777 | 35,743 |
Operating lease liabilities | 8,111 | 7,786 |
Total current liabilities | 161,278 | 188,589 |
Non-current operating lease liabilities | 25,260 | 17,795 |
Deferred income taxes | 259,950 | 293,769 |
Reserve for income taxes | 12,204 | 14,780 |
Non-current accrued income taxes | 33,008 | 43,160 |
Other liabilities | 19,316 | 15,476 |
Total liabilities | 511,016 | 573,569 |
Shareholders’ equity: | ||
Preferred stock, $.01 par value – Authorized: 400 shares in 2022 and 2021, respectively; no shares issued and outstanding | 0 | 0 |
Common stock, $.002 par value – Authorized: 300,000 shares in 2022 and 2021, respectively; issued and outstanding: 172,930 and 175,481 shares in 2022 and 2021, respectively | 346 | 351 |
Additional paid-in capital | 960,446 | 914,802 |
Retained earnings | 510,877 | 562,882 |
Accumulated other comprehensive loss, net of tax | (82,449) | (47,942) |
Total shareholders’ equity | 1,389,220 | 1,430,093 |
Total liabilities and shareholders' equity | $ 1,900,236 | $ 2,003,662 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Amortized cost of current investments | $ 213,044 | $ 137,124 |
Allowance for credit losses | 0 | 0 |
Allowance for credit losses, current | 741 | 776 |
Amortized cost of non-current investments | 369,868 | 587,981 |
Allowance for credit losses, non-current | $ 0 | $ 0 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 400,000 | 400,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.002 | $ 0.002 |
Common stock shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 172,930,000 | 175,481,000 |
Common stock, shares outstanding (in shares) | 172,930,000 | 175,481,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 160,214 | $ 226,346 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 41,419 | 33,353 |
Depreciation of property, plant, and equipment | 12,176 | 12,641 |
Loss on disposal of property, plant, and equipment | 12 | 4 |
Amortization of intangible assets | 2,468 | 2,773 |
Excess and obsolete inventory charges | 2,728 | 2,120 |
Non-cash impact of write-offs related to fire (Note 17) | 45,827 | 0 |
Amortization of discounts or premiums on investments | 3,976 | 3,316 |
Realized loss (gain) on sale of investments | 103 | (87) |
Change in deferred income taxes | (14,799) | 1,411 |
Accounts receivable | 31,018 | (4,295) |
Unbilled revenue | 1,760 | (1,689) |
Inventories | (35,815) | (22,534) |
Prepaid expenses and other current assets | (46,817) | (24,607) |
Accounts payable | (21,577) | 10,576 |
Accrued expenses | (23,813) | 4,416 |
Accrued income taxes | (6,644) | (4,936) |
Deferred revenue and customer deposits | 20,882 | 16,751 |
Other | 4,031 | 3,297 |
Net cash provided by operating activities | 177,149 | 258,856 |
Cash flows from investing activities: | ||
Purchases of investments | (77,760) | (607,458) |
Maturities and sales of investments | 215,876 | 317,174 |
Purchases of property, plant, and equipment | (15,605) | (10,689) |
Net cash provided by (used in) investing activities | 122,511 | (300,973) |
Cash flows from financing activities: | ||
Net payments from issuance of common stock under stock plans | 4,225 | 59,101 |
Repurchase of common stock | (178,387) | (48,294) |
Payment of dividends | (33,837) | (31,800) |
Net cash provided by (used in) financing activities | (207,999) | (20,993) |
Effect of foreign exchange rate changes on cash and cash equivalents | (11,818) | (2,484) |
Net change in cash and cash equivalents | 79,843 | (65,594) |
Cash and cash equivalents at beginning of period | 186,161 | 269,073 |
Cash and cash equivalents at end of period | $ 266,004 | $ 203,479 |
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 at Dec. 31, 2020 | $ 1,262,202 | $ 352 | $ 807,739 | $ 487,912 | $ (33,801) |
Beginning Balance (in shares) at Dec. 31, 2020 | 175,790 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net issuance of common stock under stock plans | 59,101 | $ 3 | 59,098 | ||
Net issuance of common stock under stock plans (in shares) | 1,590 | ||||
Repurchase of common stock | (48,294) | $ (1) | (48,293) | ||
Repurchase of common stock (in shares) | (581) | ||||
Stock-based compensation expense | 33,353 | 33,353 | |||
Payment of dividends | (31,800) | (31,800) | |||
Net income | 226,346 | 226,346 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (2,617) | (2,617) | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (87) | (87) | |||
Foreign currency translation adjustment | (5,243) | (5,243) | |||
Ending Balance at Oct. 03, 2021 | 1,492,961 | $ 354 | 900,190 | 634,165 | (41,748) |
Ending Balance (in shares) at Oct. 03, 2021 | 176,799 | ||||
Beginning Balance at Jul. 04, 2021 | 1,429,454 | $ 353 | 874,883 | 593,290 | (39,072) |
Beginning Balance (in shares) at Jul. 04, 2021 | 176,707 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net issuance of common stock under stock plans | 14,694 | $ 1 | 14,693 | ||
Net issuance of common stock under stock plans (in shares) | 415 | ||||
Repurchase of common stock | (27,417) | $ 0 | (27,417) | ||
Repurchase of common stock (in shares) | (323) | ||||
Stock-based compensation expense | 10,614 | 10,614 | |||
Payment of dividends | (10,608) | (10,608) | |||
Net income | 78,900 | 78,900 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (521) | (521) | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (19) | (19) | |||
Foreign currency translation adjustment | (2,136) | (2,136) | |||
Ending Balance at Oct. 03, 2021 | 1,492,961 | $ 354 | 900,190 | 634,165 | (41,748) |
Ending Balance (in shares) at Oct. 03, 2021 | 176,799 | ||||
Beginning Balance at Dec. 31, 2021 | $ 1,430,093 | $ 351 | 914,802 | 562,882 | (47,942) |
Beginning Balance (in shares) at Dec. 31, 2021 | 175,481 | 175,481 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net issuance of common stock under stock plans | $ 4,225 | $ 0 | 4,225 | ||
Net issuance of common stock under stock plans (in shares) | 256 | ||||
Repurchase of common stock | (178,387) | $ (5) | (178,382) | ||
Repurchase of common stock (in shares) | (2,807) | ||||
Stock-based compensation expense | 41,419 | 41,419 | |||
Payment of dividends | (33,837) | (33,837) | |||
Net income | 160,214 | 160,214 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (21,185) | (21,185) | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | 103 | 103 | |||
Foreign currency translation adjustment | (13,425) | (13,425) | |||
Ending Balance at Oct. 02, 2022 | $ 1,389,220 | $ 346 | 960,446 | 510,877 | (82,449) |
Ending Balance (in shares) at Oct. 02, 2022 | 172,930 | 172,930 | |||
Beginning Balance at Jul. 03, 2022 | $ 1,389,985 | $ 347 | 947,269 | 512,230 | (69,861) |
Beginning Balance (in shares) at Jul. 03, 2022 | 173,397 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net issuance of common stock under stock plans | (189) | $ 0 | (189) | ||
Net issuance of common stock under stock plans (in shares) | 73 | ||||
Repurchase of common stock | (24,070) | $ (1) | (24,069) | ||
Repurchase of common stock (in shares) | (540) | ||||
Stock-based compensation expense | 13,366 | 13,366 | |||
Payment of dividends | (11,264) | (11,264) | |||
Net income | 33,980 | 33,980 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (5,315) | (5,315) | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | 79 | 79 | |||
Foreign currency translation adjustment | (7,352) | (7,352) | |||
Ending Balance at Oct. 02, 2022 | $ 1,389,220 | $ 346 | $ 960,446 | $ 510,877 | $ (82,449) |
Ending Balance (in shares) at Oct. 02, 2022 | 172,930 | 172,930 |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per common share (usd per share) | $ 0.065 | $ 0.060 | $ 0.195 | $ 0.180 |
Tax effect of unrealized gain (loss) on available-for-sale investments | $ (1,564) | $ (162) | $ (6,298) | $ (808) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 02, 2022 | |
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). 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, 2021 for a full description of other significant accounting policies. In the opinion of the management of Cognex Corporation (the "Company"), the accompanying consolidated unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments, adjustments related to the loss from fire (Note 17), and financial statement reclassifications necessary to present fairly the Company’s financial position as of October 2, 2022, and the results of its operations for the three-month and nine-month periods ended October 2, 2022 and October 3, 2021, 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 nine-month periods ended October 2, 2022 are not necessarily indicative of the results to be expected for the full year. |
New Pronouncements
New Pronouncements | 9 Months Ended |
Oct. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Pronouncements | New Pronouncements Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and (ASU) 2021-01, "Reference Rate Reform (Topic 848): Scope" The amendments in these ASUs 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. Together, the ASUs 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 these ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. Management does not expect ASU 2020-04 or ASU 2021-01 to have a material impact on the Company's consolidated financial statements and disclosures. Accounting Standards Update (ASU) 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" The amendments in this ASU primarily address the accounting for contract assets and contract liabilities related to revenue contracts with customers in a business combination. The ASU clarifies that an acquirer should account for the related revenue contracts in accordance with Accounting Standards Codification 606 as if the acquirer had originated the contracts. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, although early adoption is permitted. The amendments in the ASU should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The expected financial statement impact of this new accounting standard cannot be reasonably estimated at this time, as the impact in future periods will depend on the contract assets and contract liabilities acquired in future business combinations. Management does not expect this ASU to have a material impact on the Company's disclosures. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 (in thousands): Quoted Prices in Significant Other Unobservable Inputs (Level 3) Assets: Money market instruments $ 504 $ — $ — Corporate bonds — 455,220 — Asset-backed securities — 56,508 — Treasury bills — 21,591 — Agency bonds — 15,759 — Sovereign bonds — 1,930 — Municipal bonds — 620 — Economic hedge forward contracts — 835 — Liabilities: Economic hedge forward contracts — 442 — 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 on 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 fair value of the contingent consideration liability related to the Company's acquisition of GVi Ventures, Inc. in 2017 was written down to zero in 2019 resulting from a lower level of revenue in the Americas' automotive industry. The balance remained at zero through the remainder of the five-year assessment period which concluded during the second quarter of 2022. 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 did not record impairment charges related to non-financial assets during the three-month or nine-month periods ended October 2, 2022 or October 3, 2021. |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 9 Months Ended |
Oct. 02, 2022 | |
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): October 2, 2022 December 31, 2021 Cash $ 265,500 $ 185,624 Money market instruments 504 537 Cash and cash equivalents 266,004 186,161 Corporate bonds 151,014 73,088 Asset-backed securities 28,119 37,655 Agency bonds 15,759 2,802 Treasury bills 12,918 18,912 Municipal bonds 620 4,998 Current investments 208,430 137,455 Corporate bonds 304,206 481,218 Asset-backed securities 28,389 43,940 Treasury bills 8,673 39,753 Sovereign bonds 1,930 2,119 Agency bonds — 16,077 Municipal bonds — 641 Non-current investments 343,198 583,748 $ 817,632 $ 907,364 Corporate bonds consist of debt securities issued by both domestic and foreign companies; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; agency bonds consist of domestic or foreign obligations of government agencies and government-sponsored enterprises that have government backing; treasury bills consist of debt securities issued by the U.S. government; municipal bonds consist of debt securities issued by state and local government entities; and sovereign bonds consist of direct debt issued by foreign governments. All of the Company's securities as of October 2, 2022 and December 31, 2021 were denominated in U.S. Dollars. Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $3,011,000 and $3,037,000 as of October 2, 2022 and December 31, 2021, respectively. The following table summarizes the Company’s available-for-sale investments as of October 2, 2022 (in thousands): Amortized Gross Gross Fair Value Current: Corporate bonds $ 154,399 $ — $ (3,385) $ 151,014 Asset-backed securities 28,764 — (645) 28,119 Agency bonds 16,140 — (381) 15,759 Treasury bills 13,106 1 (189) 12,918 Municipal bonds 635 — (15) 620 Non-current: Corporate bonds 328,548 — (24,342) 304,206 Asset-backed securities 30,227 — (1,838) 28,389 Treasury bills 8,987 — (314) 8,673 Sovereign bonds 2,106 — (176) 1,930 $ 582,912 $ 1 $ (31,285) $ 551,628 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 October 2, 2022 (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 $ 390,656 $ (23,263) $ 64,564 $ (4,464) $ 455,220 $ (27,727) Asset-backed securities 56,125 (2,455) 383 (28) 56,508 (2,483) Treasury bills 19,427 (499) 101 (4) 19,528 (503) Agency bonds 15,759 (381) — — 15,759 (381) Sovereign bonds 1,930 (176) — — 1,930 (176) Municipal bonds 620 (15) — — 620 (15) $ 484,517 $ (26,789) $ 65,048 $ (4,496) $ 549,565 $ (31,285) Management monitors debt securities that are in an unrealized loss position to determine whether a loss exists related to the credit quality of the issuer. When developing an estimate of expected credit losses, management considers all relevant information including historical experience, current conditions, and reasonable forecasts of expected future cash flows. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of October 2, 2022 or December 31, 2021. There was no activity recorded in the allowance for credit losses during the three-month or nine-month periods ended October 2, 2022 or October 3, 2021. The Company recorded no gross realized gains on the sale of debt securities for the three-month period ended October 2, 2022 and gross realized gains on the sale of debt securities totaling $133,000 for the nine-month period ended October 2, 2022, and gross realized losses on the sale of debt securities totaling $79,000 and $236,000 for the three-month and nine-month periods ended October 2, 2022, respectively. The Company recorded gross realized gains on the sale of debt securities totaling $19,000 and $87,000 for the three-month and nine-month periods ended October 3, 2021, respectively, and no gross realized losses on the sale of debt securities for the three-month and nine-month periods ended October 3, 2021. Realized 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, were 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 October 2, 2022 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total Corporate bonds $ 151,014 $ 157,264 $ 104,838 $ 42,104 $ — $ 455,220 Asset-backed securities 28,119 16,384 3,202 8,803 — 56,508 Treasury bills 12,918 6,265 2,408 — — 21,591 Agency bonds 15,759 — — — — 15,759 Sovereign bonds — 970 — 960 — 1,930 Municipal bonds 620 — — — — 620 $ 208,430 $ 180,883 $ 110,448 $ 51,867 $ — $ 551,628 |
Inventories
Inventories | 9 Months Ended |
Oct. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): October 2, 2022 December 31, 2021 Raw materials $ 55,801 $ 50,452 Work-in-process 1,182 5,293 Finished goods 51,570 57,357 $ 108,553 $ 113,102 Refer to Note 17 for information regarding losses incurred from the fire at the Company's primary contract manufacturer's plant in Indonesia during the second quarter of 2022, including the impact on inventories. |
Leases
Leases | 9 Months Ended |
Oct. 02, 2022 | |
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. As of October 2, 2022, there were two options to terminate and six options to extend that were accounted for in the determination of the lease term for outstanding leases. 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 outstanding leases as of October 2, 2022. The total operating lease expense for the three-month and nine-month periods ended October 2, 2022 were $2,255,000 and $6,699,000, respectively. The total operating lease cash payments for the three-month and nine-month periods ended October 2, 2022 were $2,161,000 and $6,467,000, 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 for the three-month and nine-month periods ended October 2, 2022 was $35,000 and $110,000, respectively. The total operating lease expense for the three-month and nine-month periods ended October 3, 2021 were $2,068,000 and $6,091,000, respectively. The total operating lease cash payments for the three-month and nine-month periods ended October 3, 2021 were $2,079,000 and $6,154,000, 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 for the three-month and nine-month periods ended October 3, 2021 was $36,000 and $114,000, respectively. Future operating lease cash payments are as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2022 $ 2,245 2023 8,511 2024 5,794 2025 3,837 2026 2,656 2027 2,590 Thereafter 10,808 $ 36,441 The discounted present value of the future lease cash payments resulted in a lease liability of $33,371,000 and $25,581,000 as of October 2, 2022 and December 31, 2021, respectively. The Company did not have any leases that had not yet commenced but that created significant rights and obligations as of October 2, 2022. In December 2021, the Company entered into a lease for a 65,000 square-foot building in Southborough, Massachusetts for a term of ten years to serve as a new distribution center for customers in the Americas. The Company has the right and option to extend the term of this lease for an additional period of five years, commencing upon the expiration of the original ten-year term. This lease commenced during the first quarter of 2022, and therefore the Company recorded approximately $9,271,000 within "Operating lease assets" and "Operating lease liabilities" on the Consolidated Balance Sheets on the commencement date. |
Goodwill
Goodwill | 9 Months Ended |
Oct. 02, 2022 | |
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, 2021 $ 241,713 Foreign exchange rate changes (4,204) Balance as of October 2, 2022 $ 237,509 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 02, 2022 | |
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 24,217 17,132 7,085 Customer relationships 10,578 8,420 2,158 Non-compete agreements 710 533 177 Trademarks 110 110 — Balance as of October 2, 2022 $ 73,675 $ 64,255 $ 9,420 Gross Accumulated Net Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 24,217 15,234 8,983 Customer relationships 10,578 7,891 2,687 Non-compete agreements 710 492 218 Trademarks 110 110 — Balance as of December 31, 2021 $ 73,675 $ 61,787 $ 11,888 As of October 2, 2022, estimated future amortization expense related to intangible assets was as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2022 $ 807 2023 2,594 2024 2,080 2025 1,757 2026 1,452 2027 730 $ 9,420 |
Warranty Obligations
Warranty Obligations | 9 Months Ended |
Oct. 02, 2022 | |
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, 2021 $ 5,427 Provisions for warranties issued during the period 1,733 Fulfillment of warranty obligations (2,170) Balance as of October 2, 2022 $ 4,990 |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Oct. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of October 2, 2022, the Company had outstanding purchase orders totaling $81,565,000 to procure inventory from various vendors, due in part to higher inventory purchases in response to global supply chain constraints. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate primarily to expected sales in the next twelve months. The Company expects the level of outstanding purchase orders to increase for the remainder of the year as it continues to replenish inventories destroyed in the fire on June 7, 2022 at its primary contract manufacturer (refer to Note 17). A significant portion of the Company's outstanding inventory purchase orders as of October 2, 2022, as well as additional preauthorized commitments to procure strategic components based on the Company's expected customer demand, are placed with the Company's primary contract manufacturer for the Company's assembled products. The Company has the obligation to purchase any non-cancelable and non-returnable components that have been purchased by this contract manufacturer with the Company's preauthorization, when these components have not been consumed within the period defined in the terms of the Company's agreement with this contract manufacturer. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Oct. 02, 2022 | |
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. The Company enters into economic hedges utilizing foreign currency forward contracts with maturities that do not exceed approximately three months 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): October 2, 2022 December 31, 2021 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Euro 70,000 $ 68,290 65,000 $ 73,748 Chinese Renminbi 175,000 25,352 54,374 8,500 Mexican Peso 185,000 9,155 140,000 6,842 Japanese Yen 600,000 4,159 600,000 5,213 British Pound 3,135 3,481 3,370 4,552 Hungarian Forint 1,280,000 2,948 1,355,000 4,155 Canadian Dollar — — 1,480 1,167 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 October 2, 2022 December 31, 2021 Sheet October 2, 2022 December 31, 2021 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 835 $ 39 Accrued expenses $ 442 $ 230 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 October 2, 2022 December 31, 2021 October 2, 2022 December 31, 2021 Gross amounts of recognized assets $ 835 $ 39 Gross amounts of recognized liabilities $ 442 $ 230 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 835 $ 39 Net amount of liabilities presented $ 442 $ 230 Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 7,161 $ 1,529 $ 15,091 $ 3,676 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 02, 2022 | |
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 Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Americas $ 65,847 $ 113,758 $ 284,057 $ 330,012 Europe 48,930 65,146 173,561 182,161 Greater China 66,460 65,813 193,481 163,757 Other Asia 28,385 40,131 115,558 117,103 $ 209,622 $ 284,848 $ 766,657 $ 793,033 The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months Ended Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Standard products and services $ 158,244 $ 212,567 $ 637,598 $ 669,215 Application-specific customer solutions 51,378 72,281 129,059 123,818 $ 209,622 $ 284,848 $ 766,657 $ 793,033 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 $15,581,000 and $10,854,000 as of October 2, 2022 and December 31, 2021, 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 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. The following table summarizes the allowance for credit losses activity for the nine-month period ended October 2, 2022 (in thousands): Balance as of December 31, 2021 $ 776 Write-offs, net of recoveries (36) Foreign exchange rate changes 1 Balance as of October 2, 2022 $ 741 The following table summarizes the deferred revenue and customer deposits activity for the nine-month period ended October 2, 2022 (in thousands): Balance as of December 31, 2021 $ 35,743 Deferral of revenue billed in the current period, net of recognition 51,297 Recognition of revenue deferred in prior period (29,351) Foreign exchange rate changes (2,912) Balance as of October 2, 2022 $ 54,777 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 | 9 Months Ended |
Oct. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Shareholders' Equity and Share-based Payments | Stock-Based Compensation Expense Stock Plans The Company’s stock-based awards that result in compensation expense consist of stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs"). As of October 2, 2022, the Company had 13,748,000 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 three three Stock Options The following table summarizes the Company’s stock option activity for the nine-month period ended October 2, 2022: Shares Weighted- Weighted- Aggregate Outstanding as of December 31, 2021 7,610 $ 49.38 Granted 1,399 59.79 Exercised (158) 41.83 Forfeited or expired (170) 58.01 Outstanding as of October 2, 2022 8,681 $ 51.03 6.40 $ 22,376 Exercisable as of October 2, 2022 4,335 $ 43.54 5.08 $ 22,334 Options vested or expected to vest as of October 2, 2022 (1) 8,189 $ 50.48 6.27 $ 22,375 (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 Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Risk-free rate 2.7 % 1.4 % 2.1 % 1.3 % Expected dividend yield 0.54 % 0.28 % 0.44 % 0.27 % Expected volatility 37 % 39 % 37 % 39 % Expected term (in years) 6.4 7.1 5.5 6.0 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 and nine-month periods ended October 2, 2022 were $18.81 and $21.40, respectively, and during the three-month and nine-month periods ended October 3, 2021 were $35.64 and $33.78, respectively. The total intrinsic values of stock options exercised for the three-month and nine-month periods ended October 2, 2022 were $516,000 and $3,615,000, respectively, and for the three-month and nine-month periods ended October 3, 2021 were $21,415,000 and $75,363,000, respectively. The total fair values of stock options vested for the three-month and nine-month periods ended October 2, 2022 were $1,159,000 and $27,882,000, respectively, and for the three-month and nine-month periods ended October 3, 2021 were $1,498,000 and $38,928,000, respectively. Restricted Stock Units (RSUs) The following table summarizes the Company's RSUs activity for the nine-month period ended October 2, 2022: Shares Weighted-Average Nonvested as of December 31, 2021 823 $ 65.26 Granted 691 58.44 Vested (141) 65.33 Forfeited or expired (61) 65.18 Nonvested as of October 2, 2022 1,312 $ 61.67 The fair value of RSUs is determined based on the observable market price of the Company's stock on the grant date less the present value of expected future dividends. The weighted-average grant-date fair values of RSUs granted during the three-month and nine-month periods ended October 2, 2022 were $47.12 and $58.44, respectively, and during the three-month and nine-month periods ended October 3, 2021 were $86.34 and $87.38, respectively. There were 67,000 and 141,000 RSUs that vested during the three-month and nine-month periods ended October 2, 2022, respectively, and 0 and 15,000 that vested during the three-month and nine-month periods ended October 3, 2021, respectively. Performance Restricted Stock Units (PRSUs) The following table summarizes the Company's PRSUs activity for the nine-month period ended October 2, 2022: Shares Weighted-Average Nonvested as of December 31, 2021 — $ — Granted 33 62.49 Vested — — Forfeited or expired — — Nonvested as of October 2, 2022 33 $ 62.49 No PRSUs were granted or vested during the three-month period ended October 2, 2022. No PRSUs were granted or vested during the three-month and nine-month periods ended October 3, 2021. The fair value of PRSUs is calculated using the Monte Carlo simulation model to estimate the probability of satisfying the service and market conditions stipulated in the award grant. 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 based on updated estimates of employee turnover. This resulted in an increase to compensation expense of $1,536,000 in 2022 and a decrease to compensation expense of $255,000 in 2021. As of October 2, 2022, total unrecognized compensation expense related to non-vested equity awards, including stock options, RSUs, and PRSUs, was $68,089,000, which is expected to be recognized over a weighted-average period of 1.6 years. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended October 2, 2022 were $13,366,000 and $2,133,000, respectively, and for the nine-month period ended October 2, 2022 were $41,419,000 and $6,496,000, respectively. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended October 3, 2021 were $10,614,000 and $1,637,000, respectively, and for the nine-month period ended October 3, 2021 were $33,353,000 and $5,101,000, respectively. No compensation expense was capitalized as of October 2, 2022 or December 31, 2021. 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 Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Cost of revenue $ 468 $ 366 $ 1,513 $ 965 Research, development, and engineering 4,209 3,091 12,508 10,158 Selling, general, and administrative 8,689 7,157 27,398 22,230 $ 13,366 $ 10,614 $ 41,419 $ 33,353 |
Stock Repurchase Program
Stock Repurchase Program | 9 Months Ended |
Oct. 02, 2022 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase ProgramOn March 12, 2020, the Company's Board of Directors authorized the repurchase of $200,000,000 of the Company's common stock. As of October 2, 2022, the Company repurchased 2,737,000 shares at a cost of $200,000,000 under this program, including 1,677,000 shares at a cost of $117,000,000 during the first quarter of 2022, which completed purchases under this program. On March 3, 2022, the Company's Board of Directors authorized the repurchase of an additional $500,000,000 of the Company's common stock. During the nine-month period ended October 2, 2022, the Company repurchased 1,125,000 shares, and an additional 5,000 shares that were repurchased in 2021 and settled in 2022, at a total cost of $61,387,000 under this additional authorization, leaving a remaining balance of $438,613,000 as of October 2, 2022. The Company may repurchase shares under this program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate was 14% and 16% for the three-month and nine-month periods ended October 2, 2022, respectively, and 11% and 13% for the three-month and nine-month periods ended October 3, 2021, respectively. The Company recorded a net discrete tax benefit totaling $930,000 and a net discrete tax expense totaling $616,000 for the three-month and nine-month periods ended October 2, 2022, respectively, and net discrete tax benefits totaling $6,262,000 and $12,365,000 for the same periods in 2021. Discrete tax items for the three-month and nine-month periods ended October 2, 2022 included (1) a decrease in tax expense during the three-month and nine-month periods ended October 2, 2022 of $928,000 and $3,368,000, respectively, arising from the impact of the loss from fire recorded (refer to Note 17), (2) an increase in tax expense of $1,417,000 arising from an Internal Revenue Service (IRS) audit recorded during the three-month period ended April 3, 2022, which was offset by a decrease in tax expense of $2,519,000 related to releases of reserves for income taxes due to the closure of this Internal Revenue Service (IRS) audit during the three-month period ended July 3, 2022, (3) an increase in tax expense of $1,734,000 to establish a full valuation allowance against deferred tax assets related to foreign tax credits during the three-month period ended April 3, 2022, (4) an increase in tax expense of $883,000 and $4,236,000 during the three-month and nine-month periods ended October 2, 2022, respectively, primarily consisting of transfer pricing and return-to-provision adjustments, and (5) a decrease in tax expense of $884,000 during both the three-month and nine-month periods ended October 2, 2022 related to the release of tax reserves due to closed periods. Discrete tax items for the three-month and nine-month periods ended October 3, 2021 included a decrease in tax expense of $3,250,000 and $9,888,000, respectively, related to stock-based compensation, primarily from the excess tax benefit arising from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes from stock option exercises. This impact was not material for the three-month and nine-month periods ended October 2, 2022. The remaining discrete tax benefits for the three-month and nine-month periods ended October 3, 2021 of $3,012,000 and $2,477,000, respectively, consisted of primarily return-to-provision adjustments and the release of tax reserves. Excluding the impact of these discrete tax items, the Company’s effective tax rate was 16% for both the three-month and nine-month periods ended October 2, 2022, and 18% for both the three-month and nine-month periods ended October 3, 2021. The Company has defined its major tax jurisdictions as the United States, Ireland, China, and Korea, and within the United States, Massachusetts. The statutory tax rate is 12.5% in Ireland, 25% in China, and 22% in Korea compared to the U.S. federal statutory corporate tax rate of 21%. These differences resulted in a lower effective tax rate for the three-month and nine-month periods ended October 2, 2022 as compared to the same periods in 2021 due to more of the Company's profits being earned and taxed in lower tax jurisdictions. The remaining decrease in the effective tax rate for the three-month and nine-month periods was primarily attributable to lower state taxes. |
Weighted-Average Shares
Weighted-Average Shares | 9 Months Ended |
Oct. 02, 2022 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares | Weighted-Average Shares Weighted-average shares were calculated as follows (in thousands): Three-months Ended Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Basic weighted-average common shares outstanding 173,256 176,812 173,640 176,572 Effect of dilutive equity awards 1,071 3,530 1,593 3,537 Weighted-average common and common-equivalent shares outstanding 174,327 180,342 175,233 180,109 |
Loss from Fire
Loss from Fire | 9 Months Ended |
Oct. 02, 2022 | |
Catastrophe [Abstract] | |
Loss from Fire | Loss from Fire On June 7, 2022, the Company’s primary contract manufacturer experienced a fire at its plant in Indonesia. The fire destroyed a significant amount of Cognex-owned consigned inventories as well as component inventories owned by the contract manufacturer that were designated for Cognex products. There was no significant damage to the Company's production equipment. Since the date of the fire and through the date of financial statement issuance, the Company has worked with the contract manufacturer to assess the damage, resume production, and replenish inventories destroyed by the fire. Additionally, beginning last year, the Company has been working to ramp up an additional contract manufacturer to further mitigate risk, diversify supply chain, and expand production capacity. We expect this additional contract manufacturer to commence production later in the year. As a result of the fire, the Company recorded $47,794,000 in gross losses in 2022, including $44,903,000 during the three-month period ended July 3, 2022 and $2,891,000 during the three-month period ended October 2, 2022. Gross losses related to $37,643,000 of primarily Cognex-owned inventory that was destroyed or deemed to have a net realizable value of zero, $8,184,000 of primarily prepayments related to Cognex-designated components that were owned by the contract manufacturer, and $1,967,000 related to deleveraging of costs related to our distribution centers. Based on the provisions of the Company's insurance policies, the gross losses have been reduced by the estimated insurance proceeds expected to be received from the Company’s insurance carrier. The Company has determined that partial recovery of the incurred losses is probable and therefore recorded an insurance recovery of $27,500,000 during the three-month period ended July 3, 2022. The insurance receivable is included in “Prepaid expenses and other current assets” on the Consolidated Balance Sheets as of October 2, 2022. Gross losses, net of insurance recovery, total $2,891,000 and $20,294,000 for the three-month and nine-month periods ended October 2, 2022, respectively, and are presented in the caption “Loss from fire” on the Consolidated Statements of Operations. Subsequent to the October 2, 2022 balance sheet date, but prior to the date of financial statement issuance, the Company received insurance proceeds of $27,560,000 from the Company's insurance carrier. In the fourth quarter of 2022, the loss from fire will be reduced by the proceeds received in excess of the original estimated insurance recovery recorded of $27,500,000. As of October 2, 2022 and through the date of financial statement issuance, management cannot yet estimate additional recoveries that could be available from the contract manufacturer. Any future, additional recoveries in excess of recognized losses will be treated as gain contingencies and will be recognized when the gain is realized or realizable. There can be no assurance, however, that the insurance coverage and/or recoveries from the contract manufacturer will be available to cover the losses from the fire. After considering all the relevant events and circumstances resulting from the fire, management does not believe that the carrying value of the Company exceeds its fair value, or that the carrying amount of the Company’s intangible assets may not be recoverable. As such, no goodwill or intangible asset impairment charges were recorded during 2022 as a result of the fire. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 02, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn November 3, 2022, the Company’s Board of Directors declared a cash dividend of $0.07 per share. The dividend is payable on December 2, 2022 to all shareholders of record as of the close of business on November 18, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2022 | |
Accounting Policies [Abstract] | |
New Pronouncements | New Pronouncements Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and (ASU) 2021-01, "Reference Rate Reform (Topic 848): Scope" The amendments in these ASUs 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. Together, the ASUs 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 these ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. Management does not expect ASU 2020-04 or ASU 2021-01 to have a material impact on the Company's consolidated financial statements and disclosures. Accounting Standards Update (ASU) 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" The amendments in this ASU primarily address the accounting for contract assets and contract liabilities related to revenue contracts with customers in a business combination. The ASU clarifies that an acquirer should account for the related revenue contracts in accordance with Accounting Standards Codification 606 as if the acquirer had originated the contracts. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, although early adoption is permitted. The amendments in the ASU should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The expected financial statement impact of this new accounting standard cannot be reasonably estimated at this time, as the impact in future periods will depend on the contract assets and contract liabilities acquired in future business combinations. Management does not expect this ASU to have a material impact on the Company's disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 (in thousands): Quoted Prices in Significant Other Unobservable Inputs (Level 3) Assets: Money market instruments $ 504 $ — $ — Corporate bonds — 455,220 — Asset-backed securities — 56,508 — Treasury bills — 21,591 — Agency bonds — 15,759 — Sovereign bonds — 1,930 — Municipal bonds — 620 — Economic hedge forward contracts — 835 — Liabilities: Economic hedge forward contracts — 442 — |
Cash, Cash Equivalents, and I_2
Cash, Cash Equivalents, and Investments (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Components of Cash, Cash Equivalents, and Investments | Cash, cash equivalents, and investments consisted of the following (in thousands): October 2, 2022 December 31, 2021 Cash $ 265,500 $ 185,624 Money market instruments 504 537 Cash and cash equivalents 266,004 186,161 Corporate bonds 151,014 73,088 Asset-backed securities 28,119 37,655 Agency bonds 15,759 2,802 Treasury bills 12,918 18,912 Municipal bonds 620 4,998 Current investments 208,430 137,455 Corporate bonds 304,206 481,218 Asset-backed securities 28,389 43,940 Treasury bills 8,673 39,753 Sovereign bonds 1,930 2,119 Agency bonds — 16,077 Municipal bonds — 641 Non-current investments 343,198 583,748 $ 817,632 $ 907,364 |
Summary of Available-for-Sale Investments | The following table summarizes the Company’s available-for-sale investments as of October 2, 2022 (in thousands): Amortized Gross Gross Fair Value Current: Corporate bonds $ 154,399 $ — $ (3,385) $ 151,014 Asset-backed securities 28,764 — (645) 28,119 Agency bonds 16,140 — (381) 15,759 Treasury bills 13,106 1 (189) 12,918 Municipal bonds 635 — (15) 620 Non-current: Corporate bonds 328,548 — (24,342) 304,206 Asset-backed securities 30,227 — (1,838) 28,389 Treasury bills 8,987 — (314) 8,673 Sovereign bonds 2,106 — (176) 1,930 $ 582,912 $ 1 $ (31,285) $ 551,628 |
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 October 2, 2022 (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 $ 390,656 $ (23,263) $ 64,564 $ (4,464) $ 455,220 $ (27,727) Asset-backed securities 56,125 (2,455) 383 (28) 56,508 (2,483) Treasury bills 19,427 (499) 101 (4) 19,528 (503) Agency bonds 15,759 (381) — — 15,759 (381) Sovereign bonds 1,930 (176) — — 1,930 (176) Municipal bonds 620 (15) — — 620 (15) $ 484,517 $ (26,789) $ 65,048 $ (4,496) $ 549,565 $ (31,285) |
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 October 2, 2022 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total Corporate bonds $ 151,014 $ 157,264 $ 104,838 $ 42,104 $ — $ 455,220 Asset-backed securities 28,119 16,384 3,202 8,803 — 56,508 Treasury bills 12,918 6,265 2,408 — — 21,591 Agency bonds 15,759 — — — — 15,759 Sovereign bonds — 970 — 960 — 1,930 Municipal bonds 620 — — — — 620 $ 208,430 $ 180,883 $ 110,448 $ 51,867 $ — $ 551,628 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): October 2, 2022 December 31, 2021 Raw materials $ 55,801 $ 50,452 Work-in-process 1,182 5,293 Finished goods 51,570 57,357 $ 108,553 $ 113,102 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
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 2022 $ 2,245 2023 8,511 2024 5,794 2025 3,837 2026 2,656 2027 2,590 Thereafter 10,808 $ 36,441 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
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, 2021 $ 241,713 Foreign exchange rate changes (4,204) Balance as of October 2, 2022 $ 237,509 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
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 24,217 17,132 7,085 Customer relationships 10,578 8,420 2,158 Non-compete agreements 710 533 177 Trademarks 110 110 — Balance as of October 2, 2022 $ 73,675 $ 64,255 $ 9,420 Gross Accumulated Net Distribution networks $ 38,060 $ 38,060 $ — Completed technologies 24,217 15,234 8,983 Customer relationships 10,578 7,891 2,687 Non-compete agreements 710 492 218 Trademarks 110 110 — Balance as of December 31, 2021 $ 73,675 $ 61,787 $ 11,888 |
Schedule of Intangible Assets, Future Amortization Expense | As of October 2, 2022, estimated future amortization expense related to intangible assets was as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2022 $ 807 2023 2,594 2024 2,080 2025 1,757 2026 1,452 2027 730 $ 9,420 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Product Warranties Disclosures [Abstract] | |
Changes in Warranty Obligations | The changes in the warranty obligation were as follows (in thousands): Balance as of December 31, 2021 $ 5,427 Provisions for warranties issued during the period 1,733 Fulfillment of warranty obligations (2,170) Balance as of October 2, 2022 $ 4,990 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Forward Contracts Table | The Company had the following outstanding forward contracts (in thousands): October 2, 2022 December 31, 2021 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Euro 70,000 $ 68,290 65,000 $ 73,748 Chinese Renminbi 175,000 25,352 54,374 8,500 Mexican Peso 185,000 9,155 140,000 6,842 Japanese Yen 600,000 4,159 600,000 5,213 British Pound 3,135 3,481 3,370 4,552 Hungarian Forint 1,280,000 2,948 1,355,000 4,155 Canadian Dollar — — 1,480 1,167 |
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 October 2, 2022 December 31, 2021 Sheet October 2, 2022 December 31, 2021 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 835 $ 39 Accrued expenses $ 442 $ 230 |
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 October 2, 2022 December 31, 2021 October 2, 2022 December 31, 2021 Gross amounts of recognized assets $ 835 $ 39 Gross amounts of recognized liabilities $ 442 $ 230 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 835 $ 39 Net amount of liabilities presented $ 442 $ 230 |
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 Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 7,161 $ 1,529 $ 15,091 $ 3,676 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
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 Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Americas $ 65,847 $ 113,758 $ 284,057 $ 330,012 Europe 48,930 65,146 173,561 182,161 Greater China 66,460 65,813 193,481 163,757 Other Asia 28,385 40,131 115,558 117,103 $ 209,622 $ 284,848 $ 766,657 $ 793,033 |
Revenue from External Customers by Products and Services | The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months Ended Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Standard products and services $ 158,244 $ 212,567 $ 637,598 $ 669,215 Application-specific customer solutions 51,378 72,281 129,059 123,818 $ 209,622 $ 284,848 $ 766,657 $ 793,033 |
Schedule of Allowance for Credit Loss Activity | The following table summarizes the allowance for credit losses activity for the nine-month period ended October 2, 2022 (in thousands): Balance as of December 31, 2021 $ 776 Write-offs, net of recoveries (36) Foreign exchange rate changes 1 Balance as of October 2, 2022 $ 741 |
Deferred Revenue, by Arrangement, Disclosure | The following table summarizes the deferred revenue and customer deposits activity for the nine-month period ended October 2, 2022 (in thousands): Balance as of December 31, 2021 $ 35,743 Deferral of revenue billed in the current period, net of recognition 51,297 Recognition of revenue deferred in prior period (29,351) Foreign exchange rate changes (2,912) Balance as of October 2, 2022 $ 54,777 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the nine-month period ended October 2, 2022: Shares Weighted- Weighted- Aggregate Outstanding as of December 31, 2021 7,610 $ 49.38 Granted 1,399 59.79 Exercised (158) 41.83 Forfeited or expired (170) 58.01 Outstanding as of October 2, 2022 8,681 $ 51.03 6.40 $ 22,376 Exercisable as of October 2, 2022 4,335 $ 43.54 5.08 $ 22,334 Options vested or expected to vest as of October 2, 2022 (1) 8,189 $ 50.48 6.27 $ 22,375 (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 Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Risk-free rate 2.7 % 1.4 % 2.1 % 1.3 % Expected dividend yield 0.54 % 0.28 % 0.44 % 0.27 % Expected volatility 37 % 39 % 37 % 39 % Expected term (in years) 6.4 7.1 5.5 6.0 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the Company's RSUs activity for the nine-month period ended October 2, 2022: Shares Weighted-Average Nonvested as of December 31, 2021 823 $ 65.26 Granted 691 58.44 Vested (141) 65.33 Forfeited or expired (61) 65.18 Nonvested as of October 2, 2022 1,312 $ 61.67 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes the Company's PRSUs activity for the nine-month period ended October 2, 2022: Shares Weighted-Average Nonvested as of December 31, 2021 — $ — Granted 33 62.49 Vested — — Forfeited or expired — — Nonvested as of October 2, 2022 33 $ 62.49 |
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 Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Cost of revenue $ 468 $ 366 $ 1,513 $ 965 Research, development, and engineering 4,209 3,091 12,508 10,158 Selling, general, and administrative 8,689 7,157 27,398 22,230 $ 13,366 $ 10,614 $ 41,419 $ 33,353 |
Weighted-Average Shares (Tables
Weighted-Average Shares (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Weighted-Average Shares | Weighted-average shares were calculated as follows (in thousands): Three-months Ended Nine-months Ended October 2, 2022 October 3, 2021 October 2, 2022 October 3, 2021 Basic weighted-average common shares outstanding 173,256 176,812 173,640 176,572 Effect of dilutive equity awards 1,071 3,530 1,593 3,537 Weighted-average common and common-equivalent shares outstanding 174,327 180,342 175,233 180,109 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Assets: | ||
Money market instruments | $ 504 | $ 537 |
Financial assets at fair value | 551,628 | |
Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 455,220 | |
Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 56,508 | |
Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 21,591 | |
Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 15,759 | |
Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 1,930 | |
Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 620 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 504 | |
Economic hedge forward contracts | 0 | |
Liabilities: | ||
Economic hedge forward contracts | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 0 | |
Economic hedge forward contracts | 835 | |
Liabilities: | ||
Economic hedge forward contracts | 442 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 455,220 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 56,508 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 21,591 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 15,759 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 1,930 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | 620 | |
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market instruments | 0 | |
Economic hedge forward contracts | 0 | |
Liabilities: | ||
Economic hedge forward contracts | 0 | |
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate Bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Asset-Backed Securities | ||
Assets: | ||
Financial assets at fair value | 0 | |
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Treasury Bills | ||
Assets: | ||
Financial assets at fair value | 0 | |
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Agency Bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Sovereign Bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal Bonds | ||
Assets: | ||
Financial assets at fair value | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Oct. 02, 2022 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Contingent consideration liability | $ 0 | $ 0 |
Cash, Cash Equivalents, and I_3
Cash, Cash Equivalents, and Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Dec. 31, 2021 | |
Cash and Cash Equivalents [Line Items] | |||||
Debt securities, available-for-sale, allowance for credit loss | $ 0 | $ 0 | $ 0 | ||
Credit loss on investments | 0 | $ 0 | 0 | $ 0 | |
Gross realized gains on sale of investments | 0 | 19 | 133 | 87 | |
Gross realized losses on sale of investments | 79 | 236 | |||
Gross unrealized loss | $ 0 | $ 0 | |||
Other Current Assets | |||||
Cash and Cash Equivalents [Line Items] | |||||
Accrued interest receivable | $ 3,011 | $ 3,011 | $ 3,037 |
Cash, Cash Equivalents, and I_4
Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale | ||
Cash | $ 265,500 | $ 185,624 |
Money market instruments | 504 | 537 |
Cash and cash equivalents | 266,004 | 186,161 |
Current investments | 208,430 | 137,455 |
Non-current investments | 343,198 | 583,748 |
Total | 817,632 | 907,364 |
Corporate Bonds | ||
Debt Securities, Available-for-sale | ||
Current investments | 151,014 | 73,088 |
Long-term investments | 304,206 | 481,218 |
Asset-Backed Securities | ||
Debt Securities, Available-for-sale | ||
Current investments | 28,119 | 37,655 |
Long-term investments | 28,389 | 43,940 |
Treasury Bills | ||
Debt Securities, Available-for-sale | ||
Current investments | 12,918 | 18,912 |
Long-term investments | 8,673 | 39,753 |
Agency Bonds | ||
Debt Securities, Available-for-sale | ||
Current investments | 15,759 | 2,802 |
Long-term investments | 0 | 16,077 |
Municipal Bonds | ||
Debt Securities, Available-for-sale | ||
Current investments | 620 | 4,998 |
Long-term investments | 0 | 641 |
Sovereign Bonds | ||
Debt Securities, Available-for-sale | ||
Long-term investments | $ 1,930 | $ 2,119 |
Cash, Cash Equivalents, and I_5
Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Debt Securities, Available-for-sale | |
Amortized cost | $ 582,912 |
Gross unrealized gains | 1 |
Gross unrealized losses | (31,285) |
Fair value | 551,628 |
Corporate Bonds | |
Debt Securities, Available-for-sale | |
Fair value | 455,220 |
Corporate Bonds | Current Assets | |
Debt Securities, Available-for-sale | |
Amortized cost | 154,399 |
Gross unrealized gains | 0 |
Gross unrealized losses | (3,385) |
Fair value | 151,014 |
Corporate Bonds | Non-current Assets | |
Debt Securities, Available-for-sale | |
Amortized cost | 328,548 |
Gross unrealized gains | 0 |
Gross unrealized losses | (24,342) |
Fair value | 304,206 |
Asset-Backed Securities | |
Debt Securities, Available-for-sale | |
Fair value | 56,508 |
Asset-Backed Securities | Current Assets | |
Debt Securities, Available-for-sale | |
Amortized cost | 28,764 |
Gross unrealized gains | 0 |
Gross unrealized losses | (645) |
Fair value | 28,119 |
Asset-Backed Securities | Non-current Assets | |
Debt Securities, Available-for-sale | |
Amortized cost | 30,227 |
Gross unrealized gains | 0 |
Gross unrealized losses | (1,838) |
Fair value | 28,389 |
Treasury Bills | |
Debt Securities, Available-for-sale | |
Fair value | 21,591 |
Treasury Bills | Current Assets | |
Debt Securities, Available-for-sale | |
Amortized cost | 13,106 |
Gross unrealized gains | 1 |
Gross unrealized losses | (189) |
Fair value | 12,918 |
Treasury Bills | Non-current Assets | |
Debt Securities, Available-for-sale | |
Amortized cost | 8,987 |
Gross unrealized gains | 0 |
Gross unrealized losses | (314) |
Fair value | 8,673 |
Agency Bonds | |
Debt Securities, Available-for-sale | |
Fair value | 15,759 |
Agency Bonds | Current Assets | |
Debt Securities, Available-for-sale | |
Amortized cost | 16,140 |
Gross unrealized gains | 0 |
Gross unrealized losses | (381) |
Fair value | 15,759 |
Sovereign Bonds | |
Debt Securities, Available-for-sale | |
Fair value | 1,930 |
Sovereign Bonds | Non-current Assets | |
Debt Securities, Available-for-sale | |
Amortized cost | 2,106 |
Gross unrealized gains | 0 |
Gross unrealized losses | (176) |
Fair value | 1,930 |
Municipal Bonds | |
Debt Securities, Available-for-sale | |
Fair value | 620 |
Municipal Bonds | Current Assets | |
Debt Securities, Available-for-sale | |
Amortized cost | 635 |
Gross unrealized gains | 0 |
Gross unrealized losses | (15) |
Fair value | $ 620 |
Cash, Cash Equivalents, and I_6
Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | $ 484,517 |
Unrealized losses, less than 12 months | (26,789) |
Fair value, 12 months or greater | 65,048 |
Unrealized losses, 12 months or greater | (4,496) |
Total fair value | 549,565 |
Total Unrealized Losses | (31,285) |
Corporate Bonds | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 390,656 |
Unrealized losses, less than 12 months | (23,263) |
Fair value, 12 months or greater | 64,564 |
Unrealized losses, 12 months or greater | (4,464) |
Total fair value | 455,220 |
Total Unrealized Losses | (27,727) |
Asset-Backed Securities | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 56,125 |
Unrealized losses, less than 12 months | (2,455) |
Fair value, 12 months or greater | 383 |
Unrealized losses, 12 months or greater | (28) |
Total fair value | 56,508 |
Total Unrealized Losses | (2,483) |
Treasury Bills | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 19,427 |
Unrealized losses, less than 12 months | (499) |
Fair value, 12 months or greater | 101 |
Unrealized losses, 12 months or greater | (4) |
Total fair value | 19,528 |
Total Unrealized Losses | (503) |
Agency Bonds | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 15,759 |
Unrealized losses, less than 12 months | (381) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 15,759 |
Total Unrealized Losses | (381) |
Sovereign Bonds | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 1,930 |
Unrealized losses, less than 12 months | (176) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 1,930 |
Total Unrealized Losses | (176) |
Municipal Bonds | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 620 |
Unrealized losses, less than 12 months | (15) |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 620 |
Total Unrealized Losses | $ (15) |
Cash, Cash Equivalents, and I_7
Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Debt Securities, Available-for-sale | |
less than 1 year | $ 208,430 |
1-2 Years | 180,883 |
2-3 Years | 110,448 |
3-4 Years | 51,867 |
4-5 Years | 0 |
Fair value | 551,628 |
Corporate Bonds | |
Debt Securities, Available-for-sale | |
less than 1 year | 151,014 |
1-2 Years | 157,264 |
2-3 Years | 104,838 |
3-4 Years | 42,104 |
4-5 Years | 0 |
Fair value | 455,220 |
Asset-Backed Securities | |
Debt Securities, Available-for-sale | |
less than 1 year | 28,119 |
1-2 Years | 16,384 |
2-3 Years | 3,202 |
3-4 Years | 8,803 |
4-5 Years | 0 |
Fair value | 56,508 |
Treasury Bills | |
Debt Securities, Available-for-sale | |
less than 1 year | 12,918 |
1-2 Years | 6,265 |
2-3 Years | 2,408 |
3-4 Years | 0 |
4-5 Years | 0 |
Fair value | 21,591 |
Agency Bonds | |
Debt Securities, Available-for-sale | |
less than 1 year | 15,759 |
1-2 Years | 0 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
Fair value | 15,759 |
Sovereign Bonds | |
Debt Securities, Available-for-sale | |
less than 1 year | 0 |
1-2 Years | 970 |
2-3 Years | 0 |
3-4 Years | 960 |
4-5 Years | 0 |
Fair value | 1,930 |
Municipal Bonds | |
Debt Securities, Available-for-sale | |
less than 1 year | 620 |
1-2 Years | 0 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
Fair value | $ 620 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 55,801 | $ 50,452 |
Work-in-process | 1,182 | 5,293 |
Finished goods | 51,570 | 57,357 |
Inventories | $ 108,553 | $ 113,102 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 USD ($) ft² | Oct. 02, 2022 USD ($) | Oct. 03, 2021 USD ($) | Oct. 02, 2022 USD ($) | Oct. 03, 2021 USD ($) | |
Leases [Abstract] | |||||
Operating lease, cost | $ 2,255 | $ 2,068 | $ 6,699 | $ 6,091 | |
Operating lease, payments | 2,161 | 2,079 | 6,467 | 6,154 | |
Lease, cost | 35 | $ 36 | 110 | $ 114 | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease assets | $ 23,157 | 31,514 | 31,514 | ||
Operating lease liability | 25,581 | 33,371 | 33,371 | ||
Operating lease liability | $ 25,581 | $ 33,371 | $ 33,371 | ||
Weighted average discount rate | 3.40% | 2.90% | 2.90% | ||
Weighted average remaining lease term | 5 years 1 month 6 days | 6 years 8 months 12 days | 6 years 8 months 12 days | ||
Southborough, Massachusetts | |||||
Lessee, Lease, Description [Line Items] | |||||
Rentable area | ft² | 65 | ||||
Term of contract | 10 years | ||||
Option to renew, term of contract | 5 years | ||||
Operating lease assets | $ 9,271 | $ 9,271 | |||
Operating lease liability | 9,271 | 9,271 | |||
Operating lease liability | $ 9,271 | $ 9,271 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payment Obligations Under Operating Leases (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2022 | $ 2,245 |
2023 | 8,511 |
2024 | 5,794 |
2025 | 3,837 |
2026 | 2,656 |
2027 | 2,590 |
Thereafter | 10,808 |
Total | $ 36,441 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 9 Months Ended |
Oct. 02, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2021 | $ 241,713 |
Foreign exchange rate changes | (4,204) |
Balance as of October 2, 2022 | $ 237,509 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | $ 73,675 | $ 73,675 |
Accumulated Amortization | 64,255 | 61,787 |
Net Carrying Value | 9,420 | 11,888 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 9,420 | 11,888 |
Distribution networks | ||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | 38,060 | 38,060 |
Accumulated Amortization | 38,060 | 38,060 |
Net Carrying Value | 0 | 0 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 0 | 0 |
Completed technologies | ||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | 24,217 | 24,217 |
Accumulated Amortization | 17,132 | 15,234 |
Net Carrying Value | 7,085 | 8,983 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 7,085 | 8,983 |
Customer relationships | ||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | 10,578 | 10,578 |
Accumulated Amortization | 8,420 | 7,891 |
Net Carrying Value | 2,158 | 2,687 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 2,158 | 2,687 |
Non-compete agreements | ||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | 710 | 710 |
Accumulated Amortization | 533 | 492 |
Net Carrying Value | 177 | 218 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 177 | 218 |
Trademarks | ||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | 110 | 110 |
Accumulated Amortization | 110 | 110 |
Net Carrying Value | 0 | 0 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 0 | $ 0 |
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 | 9,420 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of fiscal 2022 | 807 | |
2023 | 2,594 | |
2024 | 2,080 | |
2025 | 1,757 | |
2026 | 1,452 | |
2027 | 730 | |
Net Carrying Value | $ 9,420 |
Warranty Obligations - Changes
Warranty Obligations - Changes in Warranty Obligations (Detail) $ in Thousands | 9 Months Ended |
Oct. 02, 2022 USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 5,427 |
Provisions for warranties issued during the period | 1,733 |
Fulfillment of warranty obligations | (2,170) |
Ending balance | $ 4,990 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding purchase orders | $ 81,565 |
Derivative Instruments (Details
Derivative Instruments (Details) | 9 Months Ended |
Oct. 02, 2022 | |
Not Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Remaining maturity of foreign currency derivatives (up to) | 3 months |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Forward Contracts Table (Details) - Not Designated as Hedging Instrument € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, Ft in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Oct. 02, 2022 EUR (€) | Oct. 02, 2022 USD ($) | Oct. 02, 2022 CNY (¥) | Oct. 02, 2022 MXN ($) | Oct. 02, 2022 JPY (¥) | Oct. 02, 2022 GBP (£) | Oct. 02, 2022 HUF (Ft) | Oct. 02, 2022 CAD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 MXN ($) | Dec. 31, 2021 JPY (¥) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 HUF (Ft) | Dec. 31, 2021 CAD ($) |
Euro Member Countries, Euro | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Outstanding forward contracts | € 70,000 | $ 68,290 | € 65,000 | $ 73,748 | ||||||||||||
China, Yuan Renminbi | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Outstanding forward contracts | 25,352 | ¥ 175,000 | 8,500 | ¥ 54,374 | ||||||||||||
Mexico, Pesos | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Outstanding forward contracts | 9,155 | $ 185,000 | 6,842 | $ 140,000 | ||||||||||||
Japanese Yen | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Outstanding forward contracts | 4,159 | ¥ 600,000 | 5,213 | ¥ 600,000 | ||||||||||||
United Kingdom, Pounds | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Outstanding forward contracts | 3,481 | £ 3,135 | 4,552 | £ 3,370 | ||||||||||||
Hungary, Forint | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Outstanding forward contracts | 2,948 | Ft 1,280,000 | 4,155 | Ft 1,355,000 | ||||||||||||
Canada, Dollars | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Outstanding forward contracts | $ 0 | $ 0 | $ 1,167 | $ 1,480 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 835 | $ 39 |
Derivative liability | 442 | 230 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 835 | 39 |
Derivative liability | $ 442 | $ 230 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized assets | $ 835 | $ 39 |
Gross amounts offset | 0 | 0 |
Net amount of assets presented | 835 | 39 |
Gross amounts of recognized liabilities | 442 | 230 |
Gross amounts offset | 0 | 0 |
Net amount of liabilities presented | $ 442 | $ 230 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in current operations | $ 7,161 | $ 1,529 | $ 15,091 | $ 3,676 |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 209,622 | $ 284,848 | $ 766,657 | $ 793,033 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 65,847 | 113,758 | 284,057 | 330,012 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 48,930 | 65,146 | 173,561 | 182,161 |
Greater China | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 66,460 | 65,813 | 193,481 | 163,757 |
Other Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 28,385 | $ 40,131 | $ 115,558 | $ 117,103 |
Revenue Recognition - Revenue_2
Revenue Recognition - Revenue Disaggregated by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 209,622 | $ 284,848 | $ 766,657 | $ 793,033 |
Standard products and services | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 158,244 | 212,567 | 637,598 | 669,215 |
Application-specific customer solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 51,378 | $ 72,281 | $ 129,059 | $ 123,818 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Costs to fulfill contract | $ 15,581 | $ 10,854 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Allowance for Credit Loss (Details) $ in Thousands | 9 Months Ended |
Oct. 02, 2022 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance as of December 31, 2021 | $ 776 |
Write-offs, net of recoveries | (36) |
Foreign exchange rate changes | 1 |
Balance as of October 2, 2022 | $ 741 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue Activity (Details) $ in Thousands | 9 Months Ended |
Oct. 02, 2022 USD ($) | |
Movement in Deferred Revenue [Roll Forward] | |
Balance as of December 31, 2021 | $ 35,743 |
Deferral of revenue billed in the current period, net of recognition | 51,297 |
Recognition of revenue deferred in prior period | (29,351) |
Foreign exchange rate changes | (2,912) |
Balance as of October 2, 2022 | $ 54,777 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense (Details) | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 USD ($) group $ / shares shares | Oct. 03, 2021 USD ($) $ / shares shares | Oct. 02, 2022 USD ($) group $ / shares shares | Oct. 03, 2021 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant-date fair values, in dollars per share | $ / shares | $ 18.81 | $ 35.64 | $ 21.40 | $ 33.78 | |
Total intrinsic value | $ 516,000 | $ 21,415,000 | $ 3,615,000 | $ 75,363,000 | |
Total fair values of stock options vest | $ 1,159,000 | 1,498,000 | $ 27,882,000 | 38,928,000 | |
Groups within the employee population | group | 2 | 2 | |||
Estimated annual forfeiture rate for unvested options for senior management | 7% | 7% | |||
Estimated annual forfeiture rate for unvested options for all other employees | 12% | 12% | |||
Increase (decrease) to compensation expense | $ 1,536,000 | 255,000 | |||
Unrecognized compensation expense | $ 68,089,000 | $ 68,089,000 | |||
Weighted average period to be recognized | 1 year 7 months 6 days | ||||
Stock-based compensation expense | 13,366,000 | 10,614,000 | $ 41,419,000 | 33,353,000 | |
Tax benefit from compensation expense | 2,133,000 | $ 1,637,000 | 6,496,000 | $ 5,101,000 | |
Recognized period costs capitalized | $ 0 | $ 0 | $ 0 | ||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant under stock option plans (in shares) | shares | 13,748,000 | 13,748,000 | |||
Expiration period from grant day | 10 years | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in dollars per share) | $ / shares | $ 47.12 | $ 86.34 | $ 58.44 | $ 87.38 | |
Granted (in shares) | shares | 691,000 | ||||
Vested (in shares) | shares | 67,000 | 0 | 141,000 | 15,000 | |
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period for stock option plans | 3 years | ||||
Granted (in dollars per share) | $ / shares | $ 62.49 | ||||
Granted (in shares) | shares | 0 | 0 | 33,000 | 0 | |
Vested (in shares) | shares | 0 | 0 | 0 | 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 | ||||
Minimum | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period for stock option plans | 3 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 | ||||
Maximum | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period for stock option plans | 4 years |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Oct. 02, 2022 USD ($) $ / shares shares | |
Shares (in thousands) | |
Outstanding, shares | shares | 7,610 |
Granted, shares | shares | 1,399 |
Exercised, shares | shares | (158) |
Forfeited or expired, shares | shares | (170) |
Outstanding, shares | shares | 8,681 |
Exercisable as of reporting date, shares | shares | 4,335 |
Options vested or expected to vest as of reporting date, shares | shares | 8,189 |
Weighted- Average Exercise Price | |
Outstanding, in dollars per share | $ / shares | $ 49.38 |
Granted, in dollars per share | $ / shares | 59.79 |
Exercised, in dollars per share | $ / shares | 41.83 |
Forfeited or expired, in dollars per share | $ / shares | 58.01 |
Outstanding, in dollars per share | $ / shares | 51.03 |
Exercisable as of reporting date, Weighted-Average Exercise Price, in dollars per share | $ / shares | 43.54 |
Vested and expected to vest, outstanding, in dollars per share | $ / shares | $ 50.48 |
Weighted- Average Remaining Contractual Term (in years) | |
Outstanding, in years | 6 years 4 months 24 days |
Exercisable, in years | 5 years 29 days |
Options vested or expected to vest, in years | 6 years 3 months 7 days |
Aggregate Intrinsic Value (in thousands) | |
Outstanding, in dollars | $ | $ 22,376 |
Exercisable, in dollars | $ | 22,334 |
Options vested or expected to vest, in dollars | $ | $ 22,375 |
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 | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||||
Risk-free rate | 2.70% | 1.40% | 2.10% | 1.30% |
Expected dividend yield | 0.54% | 0.28% | 0.44% | 0.27% |
Expected volatility | 37% | 39% | 37% | 39% |
Expected term (in years) | 6 years 4 months 24 days | 7 years 1 month 6 days | 5 years 6 months | 6 years |
Stock-Based Compensation Expe_6
Stock-Based Compensation Expense Stock-Based Compensation Expense - Schedule of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Shares (in thousands) | ||||
Nonvested as of Beginning of Period (in shares) | 823 | |||
Granted (in shares) | 691 | |||
Vested (in shares) | 67 | 0 | 141 | 15 |
Forfeited or expired (in shares) | (61) | |||
Nonvested as of End of Period (in shares) | 1,312 | 1,312 | ||
Weighted-Average Grant Date Fair Value | ||||
Nonvested as of Beginning of Period (in dollars per share) | $ 65.26 | |||
Granted (in dollars per share) | $ 47.12 | $ 86.34 | 58.44 | $ 87.38 |
Vested (in dollars per share) | 65.33 | |||
Forfeited or expired (in dollars per share) | 65.18 | |||
Nonvested as of End of Period (in dollars per share) | $ 61.67 | $ 61.67 |
Stock-Based Compensation Expe_7
Stock-Based Compensation Expense - Schedule of Performance Restricted Stock Units (Details) - Performance Shares - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Shares (in thousands) | ||||
Nonvested as of Beginning of Period (in shares) | 0 | |||
Granted (in shares) | 0 | 0 | 33 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | 0 | 0 | 0 |
Forfeited or expired (in shares) | 0 | |||
Nonvested as of End of Period (in shares) | 33 | 33 | ||
Weighted-Average Grant Date Fair Value | ||||
Nonvested as of Beginning of Period (in dollars per share) | $ 0 | |||
Granted (in dollars per share) | 62.49 | |||
Vested (in dollars per share) | 0 | |||
Forfeited or expired (in dollars per share) | 0 | |||
Nonvested as of End of Period (in dollars per share) | $ 62.49 | $ 62.49 |
Stock-Based Compensation Expe_8
Stock-Based Compensation Expense - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 13,366 | $ 10,614 | $ 41,419 | $ 33,353 |
Cost of Revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 468 | 366 | 1,513 | 965 |
Research, Development, and Engineering Expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 4,209 | 3,091 | 12,508 | 10,158 |
Selling, General, and Administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 8,689 | $ 7,157 | $ 27,398 | $ 22,230 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 03, 2022 | Oct. 02, 2022 | Jul. 03, 2022 | Mar. 03, 2022 | Mar. 12, 2020 | |
Repurchase Program March 2020 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized common stock to be repurchased | $ 200,000,000 | ||||
Shares repurchased at cost (in shares) | 1,677 | 2,737 | |||
Shares repurchased at cost | $ 117,000,000 | $ 200,000,000 | |||
Repurchase Program March 2022 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized common stock to be repurchased | $ 500,000,000 | ||||
Shares repurchased at cost (in shares) | 1,125 | ||||
Shares repurchased at cost | $ 61,387,000 | ||||
Remaining authorized repurchase amount | $ 438,613,000 | ||||
Stock settled in period (shares) | 5 | ||||
Stock settled in period (shares) | 5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||||||
Effective tax rate | 14% | 11% | 16% | 13% | |||
Discrete tax expense (benefit) | $ (930) | $ (6,262) | $ 616 | $ (12,365) | |||
Decrease in tax expense related to loss from fire | 928 | 3,368 | |||||
Increase in tax expense arising from tax settlement | $ 2,519 | $ 1,417 | |||||
Increase in tax expense related to valuation allowance | $ 1,734 | ||||||
Increase in tax expense related to transfer pricing and return-to-provision adjustments | $ 883 | 3,012 | $ 4,236 | 2,477 | |||
Decrease in tax expense related to stock-based compensation | $ 3,250 | $ 9,888 | |||||
Effective tax rate excluding discrete items (as a percent) | 16% | 18% | 16% | 18% | |||
Liability for uncertain tax positions | $ 12,772 | $ 12,772 | |||||
Reserve for income taxes classified as a noncurrent iability | 12,204 | 12,204 | $ 14,780 | ||||
Increase to non-current deferred tax liability | $ 568 | ||||||
Tax years open to examination by Internal Revenue Service | 2019 through 2020 | ||||||
Tax years open to examination by various taxing authorities for other entities | 2016 through 2021 | ||||||
Release of tax reserves | $ 884 | $ 884 | |||||
Foreign Tax Authority | Revenue Commissioners, Ireland | |||||||
Income Tax Contingency [Line Items] | |||||||
Statutory tax rate | 12.50% | ||||||
Foreign Tax Authority | State Administration of Taxation, China | |||||||
Income Tax Contingency [Line Items] | |||||||
Statutory tax rate | 25% | ||||||
Foreign Tax Authority | KOREA, DEMOCRATIC PEOPLE'S REPUBLIC OF | |||||||
Income Tax Contingency [Line Items] | |||||||
Statutory tax rate | 22% | ||||||
Domestic Tax Authority | |||||||
Income Tax Contingency [Line Items] | |||||||
Statutory tax rate | 21% |
Weighted-Average Shares - Calcu
Weighted-Average Shares - Calculation of Weighted-Average Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average common shares outstanding (in shares) | 173,256 | 176,812 | 173,640 | 176,572 |
Effect of dilutive equity awards (in shares) | 1,071 | 3,530 | 1,593 | 3,537 |
Weighted-average common and common-equivalent shares outstanding (in shares) | 174,327 | 180,342 | 175,233 | 180,109 |
Weighted-Average Shares (Detail
Weighted-Average Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
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) | 6,167,000 | 586,000 | 3,297,000 | 655,000 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (shares) | 607,000 | 1,000 | 26,000 | 1,000 |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (shares) | 33,000 | 0 | 0 | 0 |
Loss from Fire (Details)
Loss from Fire (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 07, 2022 | Nov. 03, 2022 | Oct. 02, 2022 | Jul. 03, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Catastrophe [Abstract] | |||||||
Gross loss from catastrophes | $ 2,891 | $ 44,903 | $ 47,794 | ||||
Inventory write-down | $ 37,643 | ||||||
Asset impairment charge | $ 8,184 | ||||||
Estimated insurance recoveries | 27,500 | 27,500 | |||||
Loss from fire | $ 2,891 | $ 0 | 20,294 | $ 0 | |||
Cost, Overhead | $ 1,967 | ||||||
Subsequent Event | |||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||
Proceeds from insurance settlements | $ 27,560 |
Subsequent Events (Details)
Subsequent Events (Details) | Nov. 03, 2022 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends (in dollars per share) | $ 0.07 |