Cover Page
Cover Page | 6 Months Ended |
Jul. 02, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
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 $.002 per share |
Trading Symbol | CGNX |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 172,293,115 |
Document Period End Date | Jul. 02, 2023 |
Entity Central Index Key | 0000851205 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 242,512 | $ 274,628 | $ 443,636 | $ 557,035 |
Cost of revenue | 62,829 | 78,143 | 120,213 | 156,933 |
Gross margin | 179,683 | 196,485 | 323,423 | 400,102 |
Research, development, and engineering expenses | 33,585 | 33,991 | 72,127 | 70,045 |
Selling, general, and administrative expenses | 83,423 | 79,950 | 166,460 | 160,785 |
Loss (recovery) from fire (Note 17) | (2,500) | 17,403 | (2,500) | 17,403 |
Operating income | 65,175 | 65,141 | 87,336 | 151,869 |
Foreign currency gain (loss) | (1,605) | (2,043) | (1,211) | (2,487) |
Investment income | 4,095 | 1,505 | 7,682 | 2,973 |
Other income (expense) | 112 | (188) | 185 | (236) |
Income before income tax expense | 67,777 | 64,415 | 93,992 | 152,119 |
Income tax expense | 10,303 | 5,514 | 10,903 | 25,885 |
Net income | $ 57,474 | $ 58,901 | $ 83,089 | $ 126,234 |
Net income per weighted-average common and common-equivalent share: | ||||
Basic (usd per share) | $ 0.33 | $ 0.34 | $ 0.48 | $ 0.73 |
Diluted (usd per share) | $ 0.33 | $ 0.34 | $ 0.48 | $ 0.72 |
Weighted-average common and common-equivalent shares outstanding: | ||||
Basic (shares) | 172,429 | 173,507 | 172,527 | 173,830 |
Diluted (shares) | 173,622 | 174,993 | 173,791 | 175,874 |
Cash dividends per common share (usd per share) | $ 0.070 | $ 0.065 | $ 0.140 | $ 0.130 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 57,474 | $ 58,901 | $ 83,089 | $ 126,234 |
Available-for-sale investments: | ||||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (1,706) | (2,322) | 3,720 | (15,870) |
Reclassification of net realized (gain) loss on the sale of available-for-sale investments into current operations | 0 | (12) | 0 | 24 |
Net change related to available-for-sale investments | (1,706) | (2,334) | 3,720 | (15,846) |
Foreign currency translation adjustments: | ||||
Foreign currency translation adjustments | (2,866) | (3,962) | (3,225) | (6,073) |
Net change related to foreign currency translation adjustments | (2,866) | (3,962) | (3,225) | (6,073) |
Other comprehensive income (loss), net of tax | (4,572) | (6,296) | 495 | (21,919) |
Total comprehensive income | $ 52,902 | $ 52,605 | $ 83,584 | $ 104,315 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect of unrealized gain (loss) on available-for-sale investments | $ (584) | $ (698) | $ 1,274 | $ (4,734) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 177,485 | $ 181,374 |
Current investments, amortized cost of $195,690 and $223,545 in 2023 and 2022, respectively, allowance for credit losses of $0 in 2023 and 2022 | 191,474 | 218,759 |
Accounts receivable, allowance for credit losses of $602 and $730 in 2023 and 2022, respectively | 147,864 | 125,417 |
Unbilled revenue | 2,243 | 2,179 |
Inventories | 126,226 | 122,480 |
Prepaid expenses and other current assets | 73,090 | 67,490 |
Total current assets | 718,382 | 717,699 |
Non-current investments, amortized cost of $481,101 and $476,148 in 2023 and 2022, respectively, allowance for credit losses of $0 in 2023 and 2022 | 463,494 | 454,117 |
Property, plant, and equipment, net | 81,638 | 79,714 |
Operating lease assets | 68,594 | 37,682 |
Goodwill | 241,582 | 242,630 |
Intangible assets, net | 10,729 | 12,414 |
Deferred income taxes | 407,257 | 407,241 |
Other assets | 6,438 | 6,643 |
Total assets | 1,998,114 | 1,958,140 |
Current liabilities: | ||
Accounts payable | 26,109 | 27,103 |
Accrued expenses | 83,605 | 93,235 |
Accrued income taxes | 19,121 | 18,129 |
Deferred revenue and customer deposits | 43,439 | 40,787 |
Operating lease liabilities | 8,188 | 8,454 |
Total current liabilities | 180,462 | 187,708 |
Non-current operating lease liabilities | 61,852 | 31,298 |
Deferred income taxes | 237,357 | 249,961 |
Reserve for income taxes | 19,239 | 15,866 |
Non-current accrued income taxes | 18,338 | 33,008 |
Other liabilities | 403 | 1,905 |
Total liabilities | 517,651 | 519,746 |
Commitments and Contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $.01 par value – Authorized: 400 shares in 2023 and 2022, respectively; no shares issued and outstanding | 0 | 0 |
Common stock, $.002 par value – Authorized: 300,000 shares in 2023 and 2022, respectively; issued and outstanding: 172,293 and 172,631 shares in 2023 and 2022, respectively | 345 | 345 |
Additional paid-in capital | 1,010,973 | 979,167 |
Retained earnings | 537,947 | 528,179 |
Accumulated other comprehensive loss, net of tax | (68,802) | (69,297) |
Total shareholders’ equity | 1,480,463 | 1,438,394 |
Total liabilities and shareholders' equity | $ 1,998,114 | $ 1,958,140 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Amortized cost of current investments | $ 195,690 | $ 223,545 |
Allowance for credit losses | 0 | 0 |
Allowance for credit losses, current | 602 | 730 |
Amortized cost of non-current investments | 481,101 | 476,148 |
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) | 172,293,000 | 172,631,000 |
Common stock, shares outstanding (in shares) | 172,293,000 | 172,631,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2023 | Jul. 03, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 83,089 | $ 126,234 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 29,153 | 28,053 |
Depreciation of property, plant, and equipment | 8,177 | 8,114 |
(Gain) loss on disposal of property, plant, and equipment | (8) | 12 |
Amortization of intangible assets | 1,685 | 1,662 |
Excess and obsolete inventory charges | 1,443 | 741 |
Non-cash impact of write-offs related to fire (Note 17) | 0 | 44,903 |
Amortization of discounts or premiums on investments | 1,200 | 2,714 |
Realized loss (gain) on sale of investments | 0 | 24 |
Change in deferred income taxes | (14,158) | (10,809) |
Accounts receivable | (24,420) | (44,118) |
Unbilled revenue | (104) | 1,704 |
Inventories | (4,981) | (20,122) |
Prepaid expenses and other current assets | (5,289) | (45,752) |
Accounts payable | (989) | (23,525) |
Accrued expenses | (9,219) | (20,024) |
Accrued income taxes | (13,684) | (372) |
Deferred revenue and customer deposits | 3,160 | 41,535 |
Other | 2,347 | 2,655 |
Net cash provided by (used in) operating activities | 57,402 | 93,629 |
Cash flows from investing activities: | ||
Purchases of investments | (94,060) | (77,760) |
Maturities and sales of investments | 115,761 | 164,610 |
Purchases of property, plant, and equipment | (10,207) | (11,253) |
Net cash provided by (used in) investing activities | 11,494 | 75,597 |
Cash flows from financing activities: | ||
Net payments from issuance of common stock under stock plans | 2,655 | 4,414 |
Repurchase of common stock | (49,163) | (154,317) |
Payment of dividends | (24,160) | (22,573) |
Net cash provided by (used in) financing activities | (70,668) | (172,476) |
Effect of foreign exchange rate changes on cash and cash equivalents | (2,117) | (5,865) |
Net change in cash and cash equivalents | (3,889) | (9,115) |
Cash and cash equivalents at beginning of period | 181,374 | 186,161 |
Cash and cash equivalents at end of period | $ 177,485 | $ 177,046 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2021 | 175,481 | ||||
Beginning Balance at Dec. 31, 2021 | $ 1,430,093 | $ 351 | $ 914,802 | $ 562,882 | $ (47,942) |
Increase (Decrease) in Stockholders' Equity | |||||
Net issuance of common stock under stock plans (in shares) | 183 | ||||
Net issuance of common stock under stock plans | 4,414 | 4,414 | |||
Repurchase of common stock (in shares) | (2,267) | ||||
Repurchase of common stock | (154,317) | $ (4) | (154,313) | ||
Stock-based compensation expense | 28,053 | 28,053 | |||
Payment of dividends | (22,573) | (22,573) | |||
Net income | 126,234 | 126,234 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (15,870) | (15,870) | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | 24 | 24 | |||
Foreign currency translation adjustment | (6,073) | (6,073) | |||
Ending Balance (in shares) at Jul. 03, 2022 | 173,397 | ||||
Ending Balance at Jul. 03, 2022 | 1,389,985 | $ 347 | 947,269 | 512,230 | (69,861) |
Beginning Balance (in shares) at Apr. 03, 2022 | 173,738 | ||||
Beginning Balance at Apr. 03, 2022 | 1,358,745 | $ 347 | 933,452 | 488,511 | (63,565) |
Increase (Decrease) in Stockholders' Equity | |||||
Net issuance of common stock under stock plans (in shares) | 47 | ||||
Net issuance of common stock under stock plans | 820 | 820 | |||
Repurchase of common stock (in shares) | (388) | ||||
Repurchase of common stock | (23,912) | (23,912) | |||
Stock-based compensation expense | 12,997 | 12,997 | |||
Payment of dividends | (11,270) | (11,270) | |||
Net income | 58,901 | 58,901 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (2,322) | (2,322) | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | (12) | (12) | |||
Foreign currency translation adjustment | (3,962) | (3,962) | |||
Ending Balance (in shares) at Jul. 03, 2022 | 173,397 | ||||
Ending Balance at Jul. 03, 2022 | $ 1,389,985 | $ 347 | 947,269 | 512,230 | (69,861) |
Beginning Balance (in shares) at Dec. 31, 2022 | 172,631 | 172,631 | |||
Beginning Balance at Dec. 31, 2022 | $ 1,438,394 | $ 345 | 979,167 | 528,179 | (69,297) |
Increase (Decrease) in Stockholders' Equity | |||||
Net issuance of common stock under stock plans (in shares) | 628 | ||||
Net issuance of common stock under stock plans | 2,655 | $ 2 | 2,653 | ||
Repurchase of common stock (in shares) | (966) | ||||
Repurchase of common stock | (49,163) | $ (2) | (49,161) | ||
Stock-based compensation expense | 29,153 | 29,153 | |||
Payment of dividends | (24,160) | (24,160) | |||
Net income | 83,089 | 83,089 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | 3,720 | 3,720 | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | 0 | ||||
Foreign currency translation adjustment | $ (3,225) | (3,225) | |||
Ending Balance (in shares) at Jul. 02, 2023 | 172,293 | 172,293 | |||
Ending Balance at Jul. 02, 2023 | $ 1,480,463 | $ 345 | 1,010,973 | 537,947 | (68,802) |
Beginning Balance (in shares) at Apr. 02, 2023 | 172,601 | ||||
Beginning Balance at Apr. 02, 2023 | 1,446,331 | $ 345 | 992,690 | 517,526 | (64,230) |
Increase (Decrease) in Stockholders' Equity | |||||
Net issuance of common stock under stock plans (in shares) | 179 | ||||
Net issuance of common stock under stock plans | 5,710 | $ 1 | 5,709 | ||
Repurchase of common stock (in shares) | (487) | ||||
Repurchase of common stock | (24,985) | $ (1) | (24,984) | ||
Stock-based compensation expense | 12,574 | 12,574 | |||
Payment of dividends | (12,069) | (12,069) | |||
Net income | 57,474 | 57,474 | |||
Net unrealized gain (loss) on available-for-sale investments, net of tax | (1,706) | (1,706) | |||
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | 0 | ||||
Foreign currency translation adjustment | $ (2,866) | (2,866) | |||
Ending Balance (in shares) at Jul. 02, 2023 | 172,293 | 172,293 | |||
Ending Balance at Jul. 02, 2023 | $ 1,480,463 | $ 345 | $ 1,010,973 | $ 537,947 | $ (68,802) |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per common share (usd per share) | $ 0.070 | $ 0.065 | $ 0.140 | $ 0.130 |
Tax effect of unrealized gain (loss) on available-for-sale investments | $ (584) | $ (698) | $ 1,274 | $ (4,734) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 02, 2023 | |
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, 2022 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 losses and recoveries from the fire (Note 17), and financial statement reclassifications necessary to present fairly the Company’s financial position as of July 2, 2023, and the results of its operations for the three-month and six-month periods ended July 2, 2023 and July 3, 2022, and changes in shareholders’ equity, comprehensive income, and cash flows for the periods presented. The results disclosed in the Consolidated Statements of Operations for the three-month and six-month periods ended July 2, 2023 are not necessarily indicative of the results to be expected for the full year. |
New Pronouncements
New Pronouncements | 6 Months Ended |
Jul. 02, 2023 | |
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", (ASU) 2021-01, "Reference Rate Reform (Topic 848): Scope", and Accounting Standards Update (ASU) 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" 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, 2024, except for hedging relationships existing as of December 31, 2024 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, 2024. Management adopted Topic 848 on January 1, 2023, and now uses the Secured Overnight Financing Rate (SOFR). The adoption did not have a material impact on the Company's financial statements and disclosures. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 02, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of July 2, 2023 (in thousands): Quoted Prices in Significant Other Unobservable Inputs (Level 3) Assets: Money market instruments $ 30,492 $ — $ — Corporate bonds — 527,352 — Treasury bills — 72,709 — Asset-backed securities — 52,340 — Sovereign bonds — 1,932 — Municipal bonds — 635 — Economic hedge forward contracts — 118 — Liabilities: Economic hedge forward contracts — 31 — 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. 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 six-month periods ended July 2, 2023 or July 3, 2022. |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | 6 Months Ended |
Jul. 02, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Investments | Cash, Cash Equivalents, and Investments Cash, cash equivalents, and investments consisted of the following (in thousands): July 2, 2023 December 31, 2022 Cash $ 146,993 $ 180,959 Money market instruments 30,492 415 Cash and cash equivalents 177,485 181,374 Corporate bonds 165,539 164,055 Asset-backed securities 15,339 26,890 Treasury bills 9,961 11,332 Municipal bonds 635 624 Agency bonds — 15,858 Current investments 191,474 218,759 Corporate bonds 361,813 374,440 Treasury bills 62,748 44,214 Asset-backed securities 37,001 33,539 Sovereign bonds 1,932 1,924 Non-current investments 463,494 454,117 $ 832,453 $ 854,250 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; 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; agency bonds consist of domestic or foreign obligations of government agencies and government-sponsored enterprises that have government backing; and sovereign bonds consist of direct debt issued by foreign governments. All of the Company's securities as of July 2, 2023 and December 31, 2022 were denominated in U.S. Dollars. Accrued interest receivable is recorded in "Prepaid expenses and other current assets" on the Consolidated Balance Sheets and amounted to $4,265,000 and $3,620,000 as of July 2, 2023 and December 31, 2022, respectively. The following table summarizes the Company’s available-for-sale investments as of July 2, 2023 (in thousands): Amortized Gross Gross Fair Value Current: Corporate bonds $ 169,464 $ — $ (3,925) $ 165,539 Asset-backed securities 15,492 — (153) 15,339 Treasury bills 10,099 — (138) 9,961 Municipal bonds 635 — — 635 Non-current: Corporate bonds 376,629 329 (15,145) 361,813 Treasury bills 63,664 2 (918) 62,748 Asset-backed securities 38,737 — (1,736) 37,001 Sovereign bonds 2,071 — (139) 1,932 $ 676,791 $ 331 $ (22,154) $ 654,968 The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of July 2, 2023 (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 $ 127,474 $ (1,767) $ 350,232 $ (17,303) $ 477,706 $ (19,070) Treasury bills 59,832 (838) 11,884 (218) 71,716 (1,056) Asset-backed securities 15,850 (199) 36,490 (1,690) 52,340 (1,889) Sovereign bonds — — 1,932 (139) 1,932 (139) Municipal bonds — — — — — — $ 203,156 $ (2,804) $ 400,538 $ (19,350) $ 603,694 $ (22,154) 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 July 2, 2023 or December 31, 2022. There was no activity recorded in the allowance for credit losses during the three-month or six-month periods ended July 2, 2023 or July 3, 2022. Management currently intends to hold debt securities that are in an unrealized loss position to full value recovery at maturity. The Company recorded no gross realized gains or losses on the sale of debt securities during the three-month and six-month periods ended July 2, 2023. The Company recorded gross realized gains on the sale of debt securities totaling $15,000 and $133,000 during the three-month and six-month periods ended July 3, 2022, respectively, and gross realized losses on the sale of debt securities totaling $3,000 and $157,000 during the three-month and six-month periods ended July 3, 2022, respectively. 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 income (loss). The following table presents the effective maturity dates of the Company’s available-for-sale investments as of July 2, 2023 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-8 Years Total Corporate bonds $ 165,539 $ 129,096 $ 95,060 $ 56,128 $ 81,073 $ 456 $ 527,352 Treasury bills 9,961 3,362 16,263 20,408 22,715 — 72,709 Asset-backed securities 15,339 11,622 11,093 7,227 — 7,059 52,340 Sovereign bonds — 974 958 — — — 1,932 Municipal bonds 635 — — — — — 635 $ 191,474 $ 145,054 $ 123,374 $ 83,763 $ 103,788 $ 7,515 $ 654,968 |
Inventories
Inventories | 6 Months Ended |
Jul. 02, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): July 2, 2023 December 31, 2022 Raw materials $ 72,327 $ 71,720 Work-in-process 1,339 906 Finished goods 52,560 49,854 $ 126,226 $ 122,480 |
Leases
Leases | 6 Months Ended |
Jul. 02, 2023 | |
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 July 2, 2023, there were no options to terminate and twenty 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 July 2, 2023. The total operating lease expense for the three-month and six-month periods ended July 2, 2023 was $2,639,000 and $5,031,000, respectively. The total operating lease cash payments for the three-month and six-month periods ended July 2, 2023 were $2,364,000 and $4,768,000, 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 six-month periods ended July 2, 2023 was $136,000 and $160,000, respectively. The total operating lease expense for the three-month and six-month periods ended July 3, 2022 was $2,215,000 and $4,444,000, respectively. The total operating lease cash payments for the three-month and six-month periods ended July 3, 2022 were $2,227,000 and $4,306,000, 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 six-month periods ended July 3, 2022 was $37,000 and $75,000, respectively. Future operating lease cash payments are as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2023 $ 4,863 2024 11,026 2025 9,237 2026 7,722 2027 7,144 2028 6,922 Thereafter 56,108 $ 103,022 The discounted present value of the future lease cash payments resulted in a total lease liability of $70,040,000 and $39,752,000 as of July 2, 2023 and December 31, 2022, respectively. The Company did not have any leases that had not yet commenced but that created significant rights and obligations as of July 2, 2023. In June 2023, the Company entered into a lease for a 115,000 square-foot building in Singapore to serve as a new distribution center for customers in Asia. The lease contains two components, including a 88,000 square-foot premises with a term of ten years, six months. The Company has the right and option to extend the term of this lease component for an additional period of five years, commencing upon the expiration of the original term. This lease component commenced during the second quarter of 2023, and therefore the Company recorded approximately $29,684,000, which reflects an estimated extension period of five years, within "Operating lease assets" and "Operating lease liabilities" on the Consolidated Balance Sheets on the commencement date. The second component of this Singapore lease is for a 27,000 square-foot premises with a term of eight years. The commencement date for this lease component is in the fourth quarter of 2025, and therefore it was not yet recorded on the Consolidated Balance Sheets, nor did it create any significant rights and obligations as of July 2, 2023. The Company has the right and option to extend the term of this lease component for an additional period of five years, commencing upon the expiration of the original term. Future payment obligations associated with this lease component total $13,231,000, none of which is payable in 2023 and which reflects an estimated extension period of five years. Future payment obligations related to this lease component are not included in the future operating lease cash payments table above. |
Goodwill
Goodwill | 6 Months Ended |
Jul. 02, 2023 | |
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, 2022 $ 242,630 Foreign exchange rate changes (1,048) Balance as of July 2, 2023 $ 241,582 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jul. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Amortized intangible assets consisted of the following (in thousands): Gross Accumulated Net Completed technologies $ 28,017 $ (19,041) $ 8,976 Customer relationships 5,838 (4,220) 1,618 Non-compete agreements 340 (205) 135 Balance as of July 2, 2023 $ 34,195 $ (23,466) $ 10,729 Gross Accumulated Net Completed technologies $ 28,017 $ (17,744) $ 10,273 Customer relationships 5,838 (3,860) 1,978 Non-compete agreements 340 (177) 163 Balance as of December 31, 2022 $ 34,195 $ (21,781) $ 12,414 As of July 2, 2023, estimated future amortization expense related to intangible assets was as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2023 $ 1,452 2024 2,623 2025 2,300 2026 1,995 2027 1,273 2028 543 Thereafter 543 $ 10,729 |
Warranty Obligations
Warranty Obligations | 6 Months Ended |
Jul. 02, 2023 | |
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, 2022 $ 4,375 Provisions for warranties issued during the period 1,163 Fulfillment of warranty obligations (1,537) Balance as of July 2, 2023 $ 4,001 |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jul. 02, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of July 2, 2023, the Company had outstanding purchase orders totaling $40,388,000 to procure inventory from various vendors. 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. A significant portion of the Company's outstanding inventory purchase orders as of July 2, 2023, 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 the 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. While the Company typically expects such purchased components to be used in future production of Cognex finished goods, these components are considered in the Company's reserve estimate for excess and obsolete inventory. Furthermore, the Company accrues for losses on commitments for the future purchase of non-cancelable and non-returnable components from this contract manufacturer at the time that circumstances, such as changes in demand, indicate that the value of the components may not be recoverable, the loss is probable, and management has the ability to reasonably estimate the amount of the loss. Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jul. 02, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative InstrumentsThe 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): July 2, 2023 December 31, 2022 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Euro 32,500 $ 35,371 60,000 $ 64,174 Chinese Renminbi 70,000 9,665 55,000 7,619 Mexican Peso 120,000 6,979 185,000 9,480 Hungarian Forint 1,950,000 5,671 1,590,000 4,238 British Pound 3,540 4,467 3,445 4,161 Japanese Yen 600,000 4,159 700,000 5,281 Canadian Dollar 1,750 1,321 1,730 1,278 Swiss Franc — — 1,120 1,218 Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): Asset Derivatives Liability Derivatives Balance Fair Value Balance Fair Value Sheet July 2, 2023 December 31, 2022 Sheet July 2, 2023 December 31, 2022 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 118 $ 27 Accrued expenses $ 31 $ 479 The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands): Asset Derivatives Liability Derivatives July 2, 2023 December 31, 2022 July 2, 2023 December 31, 2022 Gross amounts of recognized assets $ 118 $ 27 Gross amounts of recognized liabilities $ 31 $ 479 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 118 $ 27 Net amount of liabilities presented $ 31 $ 479 Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 859 $ 6,191 $ (612) $ 7,930 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jul. 02, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands): Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Americas $ 82,297 $ 91,551 $ 162,911 $ 218,210 Europe 56,860 61,840 116,702 124,631 Greater China 72,351 78,616 105,351 127,021 Other Asia 31,004 42,621 58,672 87,173 $ 242,512 $ 274,628 $ 443,636 $ 557,035 The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Standard products and services $ 194,944 $ 221,474 $ 385,727 $ 479,354 Application-specific customer solutions 47,568 53,154 57,909 77,681 $ 242,512 $ 274,628 $ 443,636 $ 557,035 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 $18,951,000 and $14,578,000 as of July 2, 2023 and December 31, 2022, 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 six-month period ended July 2, 2023 (in thousands): Balance as of December 31, 2022 $ 730 Increases to the allowance for credit losses 350 Write-offs, net of recoveries (477) Foreign exchange rate changes (1) Balance as of July 2, 2023 $ 602 The following table summarizes the deferred revenue and customer deposits activity for the six-month period ended July 2, 2023 (in thousands): Balance as of December 31, 2022 $ 40,787 Deferral of revenue billed in the current period, net of recognition 26,719 Recognition of revenue deferred in prior period (14,154) Returned customer deposit (9,205) Foreign exchange rate changes (708) Balance as of July 2, 2023 $ 43,439 As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations, as our contracts have an original expected duration of less than one year. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 6 Months Ended |
Jul. 02, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense Stock Plans The Company’s stock-based awards that result in compensation expense consist of stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs"). In May 2023, the shareholders of the Company approved the Cognex Corporation 2023 Stock Option and Incentive Plan (the “2023 Plan”). The 2023 Plan permits awards of stock options (both incentive and non-qualified options), stock appreciation rights, RSUs, and PRSUs. Up to 8,100,000 shares of common stock (subject to adjustment in the event of stock splits and other similar events) may be issued pursuant to awards granted under the 2023 Plan. In connection with the approval of the 2023 Plan, no further awards will be made under the Cognex Corporation 2001 General Stock Option Plan, as amended and restated (the “2001 Plan”), and the Cognex Corporation 2007 Stock Option and Incentive Plan, as amended and restated (the “2007 Plan”). With the approval of the 2023 Plan, the 10,610,800 shares of common stock subject to awards granted under the 2001 Plan and the 2007 Plan that were outstanding as of May 3, 2023 may become eligible for issuance under the 2023 Plan if such awards are forfeited, cancelled or otherwise terminated (other than by exercise) (the “Carryover Shares”). As of July 2, 2023, forfeits, cancellations, and other terminations from the 2001 Plan and the 2007 Plan have resulted in 147,585 Carryover Shares, raising the authorized total shares that may be issued under the 2023 Plan to 8,247,585 . As of July 2, 2023, the Company had 8,183,000 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 six-month period ended July 2, 2023: Shares Weighted- Weighted- Aggregate Outstanding as of December 31, 2022 8,467 $ 51.56 Granted 1,266 47.28 Exercised (299) 33.87 Forfeited or expired (515) 58.22 Outstanding as of July 2, 2023 8,919 $ 51.16 6.31 $ 70,411 Exercisable as of July 2, 2023 5,213 $ 47.62 4.90 $ 52,631 Options vested or expected to vest as of July 2, 2023 (1) 8,416 $ 50.95 6.17 $ 67,670 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Risk-free rate 3.5 % 1.9 % 3.9 % 1.9 % Expected dividend yield 0.56 % 0.53 % 0.59 % 0.40 % Expected volatility 39 % 37 % 39 % 37 % Expected term (in years) 5.9 6.1 4.9 5.2 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 six-month periods ended July 2, 2023 were $20.09 and $17.86, respectively, and during the three-month and six-month periods ended July 3, 2022 were $18.21 and $22.33, respectively. The total intrinsic values of stock options exercised for the three-month and six-month periods ended July 2, 2023 were $2,123,000 and $5,562,000, respectively, and for the three-month and six-month periods ended July 3, 2022 were $934,000 and $3,099,000, respectively. The total fair values of stock options vested for the three-month and six-month periods ended July 2, 2023 were $892,000 and $32,073,000, respectively, and for the three-month and six-month periods ended July 3, 2022 were $1,188,000 and $26,723,000, respectively. Restricted Stock Units (RSUs) The following table summarizes the Company's RSUs activity for the six-month period ended July 2, 2023: Shares Weighted-Average Nonvested as of December 31, 2022 1,269 $ 61.74 Granted 663 46.86 Vested (482) 59.40 Forfeited or expired (65) 61.52 Nonvested as of July 2, 2023 1,385 $ 55.44 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 six-month periods ended July 2, 2023 were $52.53 and $46.86, respectively, and during the three-month and six-month periods ended July 3, 2022 were $45.25 and $63.37, respectively. There were 29,000 and 482,000 RSUs that vested during the three-month and six-month periods ended July 2, 2023, respectively, and 20,000 and 74,000 that vested during the three-month and six-month periods ended July 3, 2022, respectively. Performance Restricted Stock Units (PRSUs) The following table summarizes the Company's PRSUs activity for the six-month period ended July 2, 2023: Shares Weighted-Average Nonvested as of December 31, 2022 33 $ 62.49 Granted 46 44.86 Vested — — Forfeited or expired — — Nonvested as of July 2, 2023 79 $ 52.23 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. There were 0 and 46,000 PRSUs granted during the three-month and six-month periods ended July 2, 2023, respectively, and 0 and 33,000 PRSUs granted during the three-month and six-month periods ended July 3, 2022, respectively. No PRSUs vested during the three-month and six-month periods ended July 2, 2023 and July 3, 2022. Stock-Based Compensation Expense The Company stratifies its employee population into three groups: one consisting of the CEO, one consisting of senior management, and another consisting of all other employees. The Company currently applies an estimated annual forfeiture rate of 0% to all stock-based awards for the CEO, 8% to all stock-based awards for senior management, and a rate of 13% 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 a decrease to compensation expense of $234,000 in 2023 and an increase to compensation expense of $1,536,000 in 2022. As of July 2, 2023, total unrecognized compensation expense, net of estimated forfeitures, related to non-vested equity awards, including stock options, RSUs, and PRSUs, was $76,162,000, which is expected to be recognized over a weighted-average period of 2.2 years. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended July 2, 2023 were $12,574,000 and $1,892,000, respectively, and for the six-month period ended July 2, 2023 were $29,153,000 and $4,200,000, respectively. The total stock-based compensation expense and the related income tax benefit recognized for the three-month period ended July 3, 2022 were $12,997,000 and $2,044,000, respectively, and for the six-month period ended July 3, 2022 were $28,053,000 and $4,363,000, respectively. No compensation expense was capitalized as of July 2, 2023 or December 31, 2022. The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Cost of revenue $ 441 $ 482 $ 1,062 $ 1,045 Research, development, and engineering 3,308 3,851 9,198 8,299 Selling, general, and administrative 8,825 8,664 18,893 18,709 $ 12,574 $ 12,997 $ 29,153 $ 28,053 |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jul. 02, 2023 | |
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. Under this March 2020 program, in addition to repurchases made in prior years, the Company repurchased 1,677,000 shares at a cost of $117,000,000 during the six-month period ended July 3, 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. Under this March 2022 program, the Company repurchased 590,000 shares at a cost of $37,317,000 during the six-month period ended July 3, 2022. Under this same March 2022 program, in addition to repurchases made in the prior year, the Company repurchased 966,000 shares at a total cost of $49,163,000 during the six-month period ended July 2, 2023 leaving a remaining balance of $363,523,000 as of July 2, 2023. 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 | 6 Months Ended |
Jul. 02, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate was 15% and 12% for the three-month and six-month periods ended July 2, 2023, respectively, and 9% and 17% for the three-month and six-month periods ended July 3, 2022, respectively. 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 foreign tax rate differences resulted in a net decrease to the effective tax rate for both the three-month and six-month periods ended July 2, 2023 and July 3, 2022. The Company recorded a net discrete tax expense totaling $399,000 and a net discrete tax benefit totaling $3,195,000 for the three-month and six-month periods ended July 2, 2023, and a net discrete tax benefit totaling $2,352,000 and a net discrete tax expense totaling $3,986,000 for the same periods in 2022. Discrete tax items for the six-month period ended July 2, 2023 included (1) an increase in tax expense of $1,766,000 related to stock-based compensation; (2) a net decrease in tax expense of $3,051,000 due primarily to the release of tax reserves on state tax credits and foreign audit settlements; (3) a decrease in tax expense of $2,198,000 for adjustments to certain deferred tax assets; and (4) a net increase in tax expense of $288,000 for return-to-provision adjustments. Discrete tax items for the six-month period ended July 3, 2022 included (1) an increase in tax expense of $176,000 related to stock-based compensation; (2) a decrease in tax expense of $1,577,000 arising from audit settlements; (3) an increase in tax expense of $2,316,000 to establish a reserve against certain deferred tax assets; and (4) an increase in tax expense of $3,071,000 consisting primarily of transfer pricing and return-to-provision adjustments. The Company’s reserve for income taxes, including gross interest and penalties, was $19,239,000 as of July 2, 2023, which was classified as a non-current liability. If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period. |
Weighted-Average Shares
Weighted-Average Shares | 6 Months Ended |
Jul. 02, 2023 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares | Weighted-Average Shares Weighted-average shares were calculated as follows (in thousands): Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Basic weighted-average common shares outstanding 172,429 173,507 172,527 173,830 Effect of dilutive equity awards 1,193 1,486 1,264 2,044 Weighted-average common and common-equivalent shares outstanding 173,622 174,993 173,791 175,874 |
Loss (Recovery) from Fire
Loss (Recovery) from Fire | 6 Months Ended |
Jul. 02, 2023 | |
Insurance [Abstract] | |
Loss (Recovery) from Fire | Loss (Recovery) 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, the Company has worked with the contract manufacturer to resume production, maintain standards of product quality, and replenish inventories destroyed by the fire. The Company has also been working to ramp up an additional contract manufacturer to further mitigate risk, diversify the supply chain, and expand production capacity. During the three-month period ended July 3, 2022, the Company recorded a net loss related to the fire of $17,403,000, consisting primarily of losses from inventories and other assets of $44,903,000, partially offset by an estimated insurance recovery of $27,500,000. The net loss is presented in the caption “Loss (recovery) from fire” on the Consolidated Statements of Operations. The Company received insurance proceeds of $27,560,000 from the Company's insurance carrier in the fourth quarter of 2022, and gross losses recorded during 2022 related to the fire were further reduced by the proceeds received in excess of the original estimated insurance recovery. During the three-month period ended July 2, 2023, the Company recorded a recovery related to the fire of $2,500,000 for proceeds received from the Company's insurance carrier in relation to a business interruption claim. This recovery amount is presented in the caption “Loss (recovery) from fire” on the Consolidated Statements of Operations. As of July 2, 2023 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. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jul. 02, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges On December 7, 2022, the Company acquired all of the outstanding shares of SAC Sirius Advanced Cybernetics GmbH ("SAC"), a leader in computational lighting technology based in Germany. Following its acquisition of SAC, the Company performed restructuring activities to align the cost and operating structure of the acquired business with the Company's business strategy. As of December 31, 2022, the majority of these restructuring actions were completed. No additional charges were recorded during the three-month and six-month periods ended July 2, 2023, or are expected to be incurred in future periods in relation to this restructuring plan. The following table summarizes the activity in the Company’s restructuring reserve related to these restructuring activities, which is included in “Accrued expenses” on the Consolidated Balance Sheets (in thousands): One-time Termination Benefits Contract Termination Costs Total Balance as of December 31, 2022 $ 964 $ 75 $ 1,039 Cash payments (703) (48) (751) Foreign exchange rate changes 9 1 10 Balance as of July 2, 2023 $ 270 $ 28 $ 298 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 02, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn August 3, 2023, the Company’s Board of Directors declared a cash dividend of $0.07 per share. The dividend is payable on September 1, 2023 to all shareholders of record as of the close of business on August 18, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 57,474 | $ 58,901 | $ 83,089 | $ 126,234 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 02, 2023 | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 02, 2023 | |
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", (ASU) 2021-01, "Reference Rate Reform (Topic 848): Scope", and Accounting Standards Update (ASU) 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" 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, 2024, except for hedging relationships existing as of December 31, 2024 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, 2024. Management adopted Topic 848 on January 1, 2023, and now uses the Secured Overnight Financing Rate (SOFR). The adoption did not have a material impact on the Company's financial statements and disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes the financial assets and liabilities required to be measured at fair value on a recurring basis as of July 2, 2023 (in thousands): Quoted Prices in Significant Other Unobservable Inputs (Level 3) Assets: Money market instruments $ 30,492 $ — $ — Corporate bonds — 527,352 — Treasury bills — 72,709 — Asset-backed securities — 52,340 — Sovereign bonds — 1,932 — Municipal bonds — 635 — Economic hedge forward contracts — 118 — Liabilities: Economic hedge forward contracts — 31 — |
Cash, Cash Equivalents, and I_2
Cash, Cash Equivalents, and Investments (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Components of Cash, Cash Equivalents, and Investments | Cash, cash equivalents, and investments consisted of the following (in thousands): July 2, 2023 December 31, 2022 Cash $ 146,993 $ 180,959 Money market instruments 30,492 415 Cash and cash equivalents 177,485 181,374 Corporate bonds 165,539 164,055 Asset-backed securities 15,339 26,890 Treasury bills 9,961 11,332 Municipal bonds 635 624 Agency bonds — 15,858 Current investments 191,474 218,759 Corporate bonds 361,813 374,440 Treasury bills 62,748 44,214 Asset-backed securities 37,001 33,539 Sovereign bonds 1,932 1,924 Non-current investments 463,494 454,117 $ 832,453 $ 854,250 |
Summary of Available-for-Sale Investments | The following table summarizes the Company’s available-for-sale investments as of July 2, 2023 (in thousands): Amortized Gross Gross Fair Value Current: Corporate bonds $ 169,464 $ — $ (3,925) $ 165,539 Asset-backed securities 15,492 — (153) 15,339 Treasury bills 10,099 — (138) 9,961 Municipal bonds 635 — — 635 Non-current: Corporate bonds 376,629 329 (15,145) 361,813 Treasury bills 63,664 2 (918) 62,748 Asset-backed securities 38,737 — (1,736) 37,001 Sovereign bonds 2,071 — (139) 1,932 $ 676,791 $ 331 $ (22,154) $ 654,968 |
Gross Unrealized Losses and Fair Values for Available-for-Sale Investments | The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of July 2, 2023 (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 $ 127,474 $ (1,767) $ 350,232 $ (17,303) $ 477,706 $ (19,070) Treasury bills 59,832 (838) 11,884 (218) 71,716 (1,056) Asset-backed securities 15,850 (199) 36,490 (1,690) 52,340 (1,889) Sovereign bonds — — 1,932 (139) 1,932 (139) Municipal bonds — — — — — — $ 203,156 $ (2,804) $ 400,538 $ (19,350) $ 603,694 $ (22,154) |
Effective Maturity Dates of Available-for-Sale Investments | The following table presents the effective maturity dates of the Company’s available-for-sale investments as of July 2, 2023 (in thousands): <1 year 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5-8 Years Total Corporate bonds $ 165,539 $ 129,096 $ 95,060 $ 56,128 $ 81,073 $ 456 $ 527,352 Treasury bills 9,961 3,362 16,263 20,408 22,715 — 72,709 Asset-backed securities 15,339 11,622 11,093 7,227 — 7,059 52,340 Sovereign bonds — 974 958 — — — 1,932 Municipal bonds 635 — — — — — 635 $ 191,474 $ 145,054 $ 123,374 $ 83,763 $ 103,788 $ 7,515 $ 654,968 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): July 2, 2023 December 31, 2022 Raw materials $ 72,327 $ 71,720 Work-in-process 1,339 906 Finished goods 52,560 49,854 $ 126,226 $ 122,480 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
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 2023 $ 4,863 2024 11,026 2025 9,237 2026 7,722 2027 7,144 2028 6,922 Thereafter 56,108 $ 103,022 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
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, 2022 $ 242,630 Foreign exchange rate changes (1,048) Balance as of July 2, 2023 $ 241,582 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Amortized intangible assets consisted of the following (in thousands): Gross Accumulated Net Completed technologies $ 28,017 $ (19,041) $ 8,976 Customer relationships 5,838 (4,220) 1,618 Non-compete agreements 340 (205) 135 Balance as of July 2, 2023 $ 34,195 $ (23,466) $ 10,729 Gross Accumulated Net Completed technologies $ 28,017 $ (17,744) $ 10,273 Customer relationships 5,838 (3,860) 1,978 Non-compete agreements 340 (177) 163 Balance as of December 31, 2022 $ 34,195 $ (21,781) $ 12,414 |
Schedule of Intangible Assets, Future Amortization Expense | As of July 2, 2023, estimated future amortization expense related to intangible assets was as follows (in thousands): Year Ended December 31, Amount Remainder of fiscal 2023 $ 1,452 2024 2,623 2025 2,300 2026 1,995 2027 1,273 2028 543 Thereafter 543 $ 10,729 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Product Warranties Disclosures [Abstract] | |
Changes in Warranty Obligations | The changes in the warranty obligation were as follows (in thousands): Balance as of December 31, 2022 $ 4,375 Provisions for warranties issued during the period 1,163 Fulfillment of warranty obligations (1,537) Balance as of July 2, 2023 $ 4,001 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Forward Contracts Table | The Company had the following outstanding forward contracts (in thousands): July 2, 2023 December 31, 2022 Currency Notional USD Notional USD Derivatives Not Designated as Hedging Instruments: Euro 32,500 $ 35,371 60,000 $ 64,174 Chinese Renminbi 70,000 9,665 55,000 7,619 Mexican Peso 120,000 6,979 185,000 9,480 Hungarian Forint 1,950,000 5,671 1,590,000 4,238 British Pound 3,540 4,467 3,445 4,161 Japanese Yen 600,000 4,159 700,000 5,281 Canadian Dollar 1,750 1,321 1,730 1,278 Swiss Franc — — 1,120 1,218 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Information regarding the fair value of the outstanding forward contracts was as follows (in thousands): Asset Derivatives Liability Derivatives Balance Fair Value Balance Fair Value Sheet July 2, 2023 December 31, 2022 Sheet July 2, 2023 December 31, 2022 Derivatives Not Designated as Hedging Instruments: Economic hedge forward contracts Prepaid expenses and other current assets $ 118 $ 27 Accrued expenses $ 31 $ 479 |
Offsetting Assets | The following table presents the gross activity for all derivative assets and liabilities which were presented on a net basis on the Consolidated Balance Sheets due to the right of offset with each counterparty (in thousands): Asset Derivatives Liability Derivatives July 2, 2023 December 31, 2022 July 2, 2023 December 31, 2022 Gross amounts of recognized assets $ 118 $ 27 Gross amounts of recognized liabilities $ 31 $ 479 Gross amounts offset — — Gross amounts offset — — Net amount of assets presented $ 118 $ 27 Net amount of liabilities presented $ 31 $ 479 |
Derivative Instruments, Gain (Loss) | Information regarding the effect of derivative instruments on the consolidated financial statements was as follows (in thousands): Location in Financial Statements Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Derivatives Not Designated as Hedging Instruments: Gains (losses) recognized in current operations Foreign currency gain (loss) $ 859 $ 6,191 $ (612) $ 7,930 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands): Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Americas $ 82,297 $ 91,551 $ 162,911 $ 218,210 Europe 56,860 61,840 116,702 124,631 Greater China 72,351 78,616 105,351 127,021 Other Asia 31,004 42,621 58,672 87,173 $ 242,512 $ 274,628 $ 443,636 $ 557,035 |
Revenue from External Customers by Products and Services | The following table summarizes disaggregated revenue information by revenue type (in thousands): Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Standard products and services $ 194,944 $ 221,474 $ 385,727 $ 479,354 Application-specific customer solutions 47,568 53,154 57,909 77,681 $ 242,512 $ 274,628 $ 443,636 $ 557,035 |
Schedule of Allowance for Credit Loss Activity | The following table summarizes the allowance for credit losses activity for the six-month period ended July 2, 2023 (in thousands): Balance as of December 31, 2022 $ 730 Increases to the allowance for credit losses 350 Write-offs, net of recoveries (477) Foreign exchange rate changes (1) Balance as of July 2, 2023 $ 602 |
Deferred Revenue, by Arrangement, Disclosure | The following table summarizes the deferred revenue and customer deposits activity for the six-month period ended July 2, 2023 (in thousands): Balance as of December 31, 2022 $ 40,787 Deferral of revenue billed in the current period, net of recognition 26,719 Recognition of revenue deferred in prior period (14,154) Returned customer deposit (9,205) Foreign exchange rate changes (708) Balance as of July 2, 2023 $ 43,439 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity for the six-month period ended July 2, 2023: Shares Weighted- Weighted- Aggregate Outstanding as of December 31, 2022 8,467 $ 51.56 Granted 1,266 47.28 Exercised (299) 33.87 Forfeited or expired (515) 58.22 Outstanding as of July 2, 2023 8,919 $ 51.16 6.31 $ 70,411 Exercisable as of July 2, 2023 5,213 $ 47.62 4.90 $ 52,631 Options vested or expected to vest as of July 2, 2023 (1) 8,416 $ 50.95 6.17 $ 67,670 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options. |
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted | The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions: Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Risk-free rate 3.5 % 1.9 % 3.9 % 1.9 % Expected dividend yield 0.56 % 0.53 % 0.59 % 0.40 % Expected volatility 39 % 37 % 39 % 37 % Expected term (in years) 5.9 6.1 4.9 5.2 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the Company's RSUs activity for the six-month period ended July 2, 2023: Shares Weighted-Average Nonvested as of December 31, 2022 1,269 $ 61.74 Granted 663 46.86 Vested (482) 59.40 Forfeited or expired (65) 61.52 Nonvested as of July 2, 2023 1,385 $ 55.44 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes the Company's PRSUs activity for the six-month period ended July 2, 2023: Shares Weighted-Average Nonvested as of December 31, 2022 33 $ 62.49 Granted 46 44.86 Vested — — Forfeited or expired — — Nonvested as of July 2, 2023 79 $ 52.23 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Cost of revenue $ 441 $ 482 $ 1,062 $ 1,045 Research, development, and engineering 3,308 3,851 9,198 8,299 Selling, general, and administrative 8,825 8,664 18,893 18,709 $ 12,574 $ 12,997 $ 29,153 $ 28,053 |
Weighted-Average Shares (Tables
Weighted-Average Shares (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Weighted-Average Shares | Weighted-average shares were calculated as follows (in thousands): Three-months Ended Six-months Ended July 2, 2023 July 3, 2022 July 2, 2023 July 3, 2022 Basic weighted-average common shares outstanding 172,429 173,507 172,527 173,830 Effect of dilutive equity awards 1,193 1,486 1,264 2,044 Weighted-average common and common-equivalent shares outstanding 173,622 174,993 173,791 175,874 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity in Restructuring Reserve | The following table summarizes the activity in the Company’s restructuring reserve related to these restructuring activities, which is included in “Accrued expenses” on the Consolidated Balance Sheets (in thousands): One-time Termination Benefits Contract Termination Costs Total Balance as of December 31, 2022 $ 964 $ 75 $ 1,039 Cash payments (703) (48) (751) Foreign exchange rate changes 9 1 10 Balance as of July 2, 2023 $ 270 $ 28 $ 298 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Assets: | ||
Money market instruments | $ 30,492 | $ 415 |
Financial assets at fair value | 654,968 | |
Corporate bonds | ||
Assets: | ||
Financial assets at fair value | 527,352 | |
Treasury bills | ||
Assets: | ||
Financial assets at fair value | 72,709 | |
Asset-backed securities | ||
Assets: | ||
Financial assets at fair value | 52,340 | |
Sovereign bonds | ||
Assets: | ||
Financial assets at fair value | 1,932 | |
Municipal bonds | ||
Assets: | ||
Financial assets at fair value | 635 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Assets: | ||
Money market instruments | 30,492 | |
Economic hedge forward contracts | 0 | |
Liabilities: | ||
Economic hedge forward contracts | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Corporate bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Treasury bills | ||
Assets: | ||
Financial assets at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Asset-backed securities | ||
Assets: | ||
Financial assets at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Sovereign bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Municipal bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Assets: | ||
Money market instruments | 0 | |
Economic hedge forward contracts | 118 | |
Liabilities: | ||
Economic hedge forward contracts | 31 | |
Significant Other Observable Inputs (Level 2) | Recurring | Corporate bonds | ||
Assets: | ||
Financial assets at fair value | 527,352 | |
Significant Other Observable Inputs (Level 2) | Recurring | Treasury bills | ||
Assets: | ||
Financial assets at fair value | 72,709 | |
Significant Other Observable Inputs (Level 2) | Recurring | Asset-backed securities | ||
Assets: | ||
Financial assets at fair value | 52,340 | |
Significant Other Observable Inputs (Level 2) | Recurring | Sovereign bonds | ||
Assets: | ||
Financial assets at fair value | 1,932 | |
Significant Other Observable Inputs (Level 2) | Recurring | Municipal bonds | ||
Assets: | ||
Financial assets at fair value | 635 | |
Unobservable Inputs (Level 3) | Recurring | ||
Assets: | ||
Money market instruments | 0 | |
Economic hedge forward contracts | 0 | |
Liabilities: | ||
Economic hedge forward contracts | 0 | |
Unobservable Inputs (Level 3) | Recurring | Corporate bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Unobservable Inputs (Level 3) | Recurring | Treasury bills | ||
Assets: | ||
Financial assets at fair value | 0 | |
Unobservable Inputs (Level 3) | Recurring | Asset-backed securities | ||
Assets: | ||
Financial assets at fair value | 0 | |
Unobservable Inputs (Level 3) | Recurring | Sovereign bonds | ||
Assets: | ||
Financial assets at fair value | 0 | |
Unobservable Inputs (Level 3) | Recurring | Municipal bonds | ||
Assets: | ||
Financial assets at fair value | $ 0 |
Cash, Cash Equivalents, and I_3
Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Details) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale | ||
Cash | $ 146,993 | $ 180,959 |
Money market instruments | 30,492 | 415 |
Cash and cash equivalents | 177,485 | 181,374 |
Current investments | 191,474 | 218,759 |
Non-current investments | 463,494 | 454,117 |
Total | 832,453 | 854,250 |
Corporate bonds | ||
Debt Securities, Available-for-sale | ||
Current investments | 165,539 | 164,055 |
Long-term investments | 361,813 | 374,440 |
Asset-backed securities | ||
Debt Securities, Available-for-sale | ||
Current investments | 15,339 | 26,890 |
Long-term investments | 37,001 | 33,539 |
Treasury bills | ||
Debt Securities, Available-for-sale | ||
Current investments | 9,961 | 11,332 |
Long-term investments | 62,748 | 44,214 |
Municipal bonds | ||
Debt Securities, Available-for-sale | ||
Current investments | 635 | 624 |
Agency bonds | ||
Debt Securities, Available-for-sale | ||
Current investments | 0 | 15,858 |
Sovereign bonds | ||
Debt Securities, Available-for-sale | ||
Long-term investments | $ 1,932 | $ 1,924 |
Cash, Cash Equivalents, and I_4
Cash, Cash Equivalents, and Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | Dec. 31, 2022 | |
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 | 15 | 0 | 133 | |
Gross realized losses on sale of investments | 0 | $ 3 | 0 | $ 157 | |
Other current assets | |||||
Cash and Cash Equivalents [Line Items] | |||||
Accrued interest receivable | $ 4,265 | $ 4,265 | $ 3,620 |
Cash, Cash Equivalents, and I_5
Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Details) $ in Thousands | Jul. 02, 2023 USD ($) |
Debt Securities, Available-for-sale | |
Amortized Cost | $ 676,791 |
Gross Unrealized Gains | 331 |
Gross Unrealized Losses | (22,154) |
Fair Value | 654,968 |
Corporate bonds | |
Debt Securities, Available-for-sale | |
Fair Value | 527,352 |
Corporate bonds | Current assets | |
Debt Securities, Available-for-sale | |
Amortized Cost | 169,464 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (3,925) |
Fair Value | 165,539 |
Corporate bonds | Non-current assets | |
Debt Securities, Available-for-sale | |
Amortized Cost | 376,629 |
Gross Unrealized Gains | 329 |
Gross Unrealized Losses | (15,145) |
Fair Value | 361,813 |
Asset-backed securities | |
Debt Securities, Available-for-sale | |
Fair Value | 52,340 |
Asset-backed securities | Current assets | |
Debt Securities, Available-for-sale | |
Amortized Cost | 15,492 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (153) |
Fair Value | 15,339 |
Asset-backed securities | Non-current assets | |
Debt Securities, Available-for-sale | |
Amortized Cost | 38,737 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (1,736) |
Fair Value | 37,001 |
Treasury bills | |
Debt Securities, Available-for-sale | |
Fair Value | 72,709 |
Treasury bills | Current assets | |
Debt Securities, Available-for-sale | |
Amortized Cost | 10,099 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (138) |
Fair Value | 9,961 |
Treasury bills | Non-current assets | |
Debt Securities, Available-for-sale | |
Amortized Cost | 63,664 |
Gross Unrealized Gains | 2 |
Gross Unrealized Losses | (918) |
Fair Value | 62,748 |
Municipal bonds | |
Debt Securities, Available-for-sale | |
Fair Value | 635 |
Municipal bonds | Current assets | |
Debt Securities, Available-for-sale | |
Amortized Cost | 635 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 0 |
Fair Value | 635 |
Sovereign bonds | |
Debt Securities, Available-for-sale | |
Fair Value | 1,932 |
Sovereign bonds | Non-current assets | |
Debt Securities, Available-for-sale | |
Amortized Cost | 2,071 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (139) |
Fair Value | $ 1,932 |
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 | Jul. 02, 2023 USD ($) |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | $ 203,156 |
Unrealized losses, less than 12 months | (2,804) |
Fair value, 12 months or greater | 400,538 |
Unrealized losses, 12 months or greater | (19,350) |
Total fair value | 603,694 |
Total unrealized Losses | (22,154) |
Corporate bonds | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 127,474 |
Unrealized losses, less than 12 months | (1,767) |
Fair value, 12 months or greater | 350,232 |
Unrealized losses, 12 months or greater | (17,303) |
Total fair value | 477,706 |
Total unrealized Losses | (19,070) |
Treasury bills | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 59,832 |
Unrealized losses, less than 12 months | (838) |
Fair value, 12 months or greater | 11,884 |
Unrealized losses, 12 months or greater | (218) |
Total fair value | 71,716 |
Total unrealized Losses | (1,056) |
Asset-backed securities | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 15,850 |
Unrealized losses, less than 12 months | (199) |
Fair value, 12 months or greater | 36,490 |
Unrealized losses, 12 months or greater | (1,690) |
Total fair value | 52,340 |
Total unrealized Losses | (1,889) |
Sovereign bonds | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 0 |
Unrealized losses, less than 12 months | 0 |
Fair value, 12 months or greater | 1,932 |
Unrealized losses, 12 months or greater | (139) |
Total fair value | 1,932 |
Total unrealized Losses | (139) |
Municipal bonds | |
Debt Securities, Available-for-sale | |
Fair value, less than 12 months | 0 |
Unrealized losses, less than 12 months | 0 |
Fair value, 12 months or greater | 0 |
Unrealized losses, 12 months or greater | 0 |
Total fair value | 0 |
Total unrealized Losses | $ 0 |
Cash, Cash Equivalents, and I_7
Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Details) $ in Thousands | Jul. 02, 2023 USD ($) |
Debt Securities, Available-for-sale | |
less than 1 year | $ 191,474 |
1-2 Years | 145,054 |
2-3 Years | 123,374 |
3-4 Years | 83,763 |
4-5 Years | 103,788 |
5-8 Years | 7,515 |
Total | 654,968 |
Corporate bonds | |
Debt Securities, Available-for-sale | |
less than 1 year | 165,539 |
1-2 Years | 129,096 |
2-3 Years | 95,060 |
3-4 Years | 56,128 |
4-5 Years | 81,073 |
5-8 Years | 456 |
Total | 527,352 |
Treasury bills | |
Debt Securities, Available-for-sale | |
less than 1 year | 9,961 |
1-2 Years | 3,362 |
2-3 Years | 16,263 |
3-4 Years | 20,408 |
4-5 Years | 22,715 |
5-8 Years | 0 |
Total | 72,709 |
Asset-backed securities | |
Debt Securities, Available-for-sale | |
less than 1 year | 15,339 |
1-2 Years | 11,622 |
2-3 Years | 11,093 |
3-4 Years | 7,227 |
4-5 Years | 0 |
5-8 Years | 7,059 |
Total | 52,340 |
Sovereign bonds | |
Debt Securities, Available-for-sale | |
less than 1 year | 0 |
1-2 Years | 974 |
2-3 Years | 958 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Total | 1,932 |
Municipal bonds | |
Debt Securities, Available-for-sale | |
less than 1 year | 635 |
1-2 Years | 0 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
5-8 Years | 0 |
Total | $ 635 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 72,327 | $ 71,720 |
Work-in-process | 1,339 | 906 |
Finished goods | 52,560 | 49,854 |
Inventories | $ 126,226 | $ 122,480 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 ft² lease_component | Dec. 31, 2021 ft² | Jul. 02, 2023 USD ($) | Jul. 03, 2022 USD ($) | Jul. 02, 2023 USD ($) | Jul. 03, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | |||||||
Operating lease, cost | $ 2,639 | $ 2,215 | $ 5,031 | $ 4,444 | |||
Operating lease, payments | 2,364 | 2,227 | 4,768 | 4,306 | |||
Lease, cost | 136 | 37 | 160 | 75 | |||
Operating lease liability | 70,040 | 70,040 | $ 39,752 | ||||
Operating lease assets | 68,594 | 68,594 | $ 37,682 | ||||
Future lease payments | 103,022 | 103,022 | |||||
Remainder of fiscal 2023 | $ 4,863 | $ 4,863 | |||||
Weighted average discount rate | 5.30% | 5.30% | 3.30% | ||||
Weighted average remaining lease term | 11 years | 11 years | 7 years 9 months 18 days | ||||
Singapore | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Rentable area | ft² | 115 | ||||||
Lease components | lease_component | 2 | ||||||
Singapore | 88,000 square-foot premises | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease liability | $ 29,684 | $ 29,684 | |||||
Rentable area | ft² | 88 | ||||||
Term of contract | 10 years 6 months | ||||||
Option to renew, term of contract | 5 years | ||||||
Operating lease assets | 29,684 | 29,684 | |||||
Singapore | 27,000 square-foot premises | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Rentable area | ft² | 27 | ||||||
Term of contract | 8 years | ||||||
Option to renew, term of contract | 5 years | ||||||
Future lease payments | 13,231 | 13,231 | |||||
Remainder of fiscal 2023 | $ 0 | $ 0 | |||||
Southborough, Massachusetts | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease liability | 9,271 | 9,271 | |||||
Rentable area | ft² | 65 | ||||||
Term of contract | 10 years | ||||||
Option to renew, term of contract | 5 years | ||||||
Operating lease assets | $ 9,271 | $ 9,271 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payment Obligations Under Operating Leases (Details) $ in Thousands | Jul. 02, 2023 USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2023 | $ 4,863 |
2024 | 11,026 |
2025 | 9,237 |
2026 | 7,722 |
2027 | 7,144 |
2028 | 6,922 |
Thereafter | 56,108 |
Total | $ 103,022 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 6 Months Ended |
Jul. 02, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2022 | $ 242,630 |
Foreign exchange rate changes | (1,048) |
Balance as of July 2, 2023 | $ 241,582 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | $ 34,195 | $ 34,195 |
Accumulated Amortization | (23,466) | (21,781) |
Net Carrying Value | 10,729 | 12,414 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 10,729 | 12,414 |
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 | 10,729 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of fiscal 2023 | 1,452 | |
2024 | 2,623 | |
2025 | 2,300 | |
2026 | 1,995 | |
2027 | 1,273 | |
2028 | 543 | |
Thereafter | 543 | |
Net Carrying Value | 10,729 | |
Completed technologies | ||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | 28,017 | 28,017 |
Accumulated Amortization | (19,041) | (17,744) |
Net Carrying Value | 8,976 | 10,273 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 8,976 | 10,273 |
Customer relationships | ||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | 5,838 | 5,838 |
Accumulated Amortization | (4,220) | (3,860) |
Net Carrying Value | 1,618 | 1,978 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | 1,618 | 1,978 |
Non-compete agreements | ||
Distribution Rights, Developed Technology Rights, Customer Contracts And Relationships, Other Intangible Assets, And Trademarks | ||
Gross Carrying Value | 340 | 340 |
Accumulated Amortization | (205) | (177) |
Net Carrying Value | 135 | 163 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Net Carrying Value | $ 135 | $ 163 |
Warranty Obligations (Detail)
Warranty Obligations (Detail) $ in Thousands | 6 Months Ended |
Jul. 02, 2023 USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 4,375 |
Provisions for warranties issued during the period | 1,163 |
Fulfillment of warranty obligations | (1,537) |
Ending balance | $ 4,001 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Thousands | Jul. 02, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding purchase orders | $ 40,388 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 6 Months Ended |
Jul. 02, 2023 | |
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, SFr in Thousands, Ft in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Jul. 02, 2023 EUR (€) | Jul. 02, 2023 USD ($) | Jul. 02, 2023 CNY (¥) | Jul. 02, 2023 MXN ($) | Jul. 02, 2023 HUF (Ft) | Jul. 02, 2023 GBP (£) | Jul. 02, 2023 JPY (¥) | Jul. 02, 2023 CAD ($) | Jul. 02, 2023 CHF (SFr) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 HUF (Ft) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 JPY (¥) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 CHF (SFr) |
Euro | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | € 32,500 | $ 35,371 | € 60,000 | $ 64,174 | ||||||||||||||
Chinese Renminbi | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 9,665 | ¥ 70,000 | 7,619 | ¥ 55,000 | ||||||||||||||
Mexican Peso | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 6,979 | $ 120,000 | 9,480 | $ 185,000 | ||||||||||||||
Hungarian Forint | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 5,671 | Ft 1,950,000 | 4,238 | Ft 1,590,000 | ||||||||||||||
British Pound | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 4,467 | £ 3,540 | 4,161 | £ 3,445 | ||||||||||||||
Japanese Yen | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 4,159 | ¥ 600,000 | 5,281 | ¥ 700,000 | ||||||||||||||
Canadian Dollar | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | 1,321 | $ 1,750 | 1,278 | $ 1,730 | ||||||||||||||
Swiss Franc | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Outstanding forward contracts | $ 0 | SFr 0 | $ 1,218 | SFr 1,120 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 118 | $ 27 |
Derivative liability | 31 | 479 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 118 | 27 |
Derivative liability | $ 31 | $ 479 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting Assets (Details) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of recognized assets | $ 118 | $ 27 |
Gross amounts offset | 0 | 0 |
Net amount of assets presented | 118 | 27 |
Gross amounts of recognized liabilities | 31 | 479 |
Gross amounts offset | 0 | 0 |
Net amount of liabilities presented | $ 31 | $ 479 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in current operations | $ 859 | $ 6,191 | $ (612) | $ 7,930 |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 242,512 | $ 274,628 | $ 443,636 | $ 557,035 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 82,297 | 91,551 | 162,911 | 218,210 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 56,860 | 61,840 | 116,702 | 124,631 |
Greater China | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 72,351 | 78,616 | 105,351 | 127,021 |
Other Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 31,004 | $ 42,621 | $ 58,672 | $ 87,173 |
Revenue Recognition - Revenue_2
Revenue Recognition - Revenue Disaggregated by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 242,512 | $ 274,628 | $ 443,636 | $ 557,035 |
Standard products and services | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 194,944 | 221,474 | 385,727 | 479,354 |
Application-specific customer solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 47,568 | $ 53,154 | $ 57,909 | $ 77,681 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | Jul. 02, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Costs to fulfill contract | $ 18,951 | $ 14,578 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Allowance for Credit Loss (Details) $ in Thousands | 6 Months Ended |
Jul. 02, 2023 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance as of December 31, 2022 | $ 730 |
Increases to the allowance for credit losses | 350 |
Write-offs, net of recoveries | (477) |
Foreign exchange rate changes | (1) |
Balance as of July 2, 2023 | $ 602 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue Activity (Details) $ in Thousands | 6 Months Ended |
Jul. 02, 2023 USD ($) | |
Movement in Deferred Revenue [Roll Forward] | |
Balance as of December 31, 2022 | $ 40,787 |
Deferral of revenue billed in the current period, net of recognition | 26,719 |
Recognition of revenue deferred in prior period | (14,154) |
Returned customer deposit | 9,205 |
Foreign exchange rate changes | (708) |
Balance as of July 2, 2023 | $ 43,439 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense - Narrative (Details) | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2023 USD ($) group shares | Jul. 02, 2023 USD ($) group $ / shares shares | Jul. 03, 2022 USD ($) $ / shares shares | Jul. 02, 2023 USD ($) group $ / shares shares | Jul. 03, 2022 USD ($) $ / shares shares | May 03, 2023 shares | Dec. 31, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average grant-date fair values (in dollars per share) | $ / shares | $ 20.09 | $ 18.21 | $ 17.86 | $ 22.33 | |||
Total intrinsic value | $ | $ 2,123,000 | $ 934,000 | $ 5,562,000 | $ 3,099,000 | |||
Total fair values of stock options vest | $ | $ 892,000 | 1,188,000 | $ 32,073,000 | 26,723,000 | |||
Groups within the employee population | group | 3 | 3 | 3 | ||||
Estimated forfeiture rate for unvested options for CEO | 0 | 0 | 0 | ||||
Estimated annual forfeiture rate for unvested options for senior management | 8% | 8% | 8% | ||||
Estimated annual forfeiture rate for unvested options for all other employees | 13% | 13% | 13% | ||||
Decrease in compensation expense due to revised estimated forfeiture rates | $ | $ 234,000 | ||||||
Increase in compensation expense due to revised estimated forfeiture rates | $ | 1,536,000 | ||||||
Unrecognized compensation expense | $ | $ 76,162,000 | $ 76,162,000 | $ 76,162,000 | ||||
Weighted average period to be recognized | 2 years 2 months 12 days | ||||||
Stock-based compensation expense | $ | 12,574,000 | 12,997,000 | $ 29,153,000 | 28,053,000 | |||
Tax benefit from compensation expense | $ | 1,892,000 | $ 2,044,000 | 4,200,000 | $ 4,363,000 | |||
Recognized period costs capitalized | $ | $ 0 | $ 0 | $ 0 | $ 0 | |||
2001 Plan and 2007 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant under stock option plans (in shares) | shares | 10,610,800 | ||||||
2023 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares auhtorised for grant under stock option plans (in shares) | shares | 8,247,585 | 8,247,585 | 8,247,585 | 8,100,000 | |||
Additional shares available for grant under stock option plans (in shares) | shares | 147,585 | ||||||
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 | 8,183,000 | 8,183,000 | 8,183,000 | ||||
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 | $ 52.53 | $ 45.25 | $ 46.86 | $ 63.37 | |||
Vested (in shares) | shares | 29,000 | 20,000 | 482,000 | 74,000 | |||
Granted (in shares) | shares | 663,000 | ||||||
Performance Shares (PRSUs) | |||||||
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 | $ 44.86 | ||||||
Vested (in shares) | shares | 0 | 0 | 0 | 0 | |||
Granted (in shares) | shares | 0 | 0 | 46,000 | 33,000 | |||
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 | 6 Months Ended |
Jul. 02, 2023 USD ($) $ / shares shares | |
Shares (in thousands) | |
Outstanding (in shares) | shares | 8,467 |
Granted (in shares) | shares | 1,266 |
Exercised (in shares) | shares | (299) |
Forfeited or expired (in shares) | shares | (515) |
Outstanding (in shares) | shares | 8,919 |
Exercisable as of reporting date (in shares) | shares | 5,213 |
Options vested or expected to vest as of reporting date (in shares) | shares | 8,416 |
Weighted- Average Exercise Price | |
Outstanding (in dollars per shares) | $ / shares | $ 51.56 |
Granted (in dollars per shares) | $ / shares | 47.28 |
Exercised (in dollars per shares) | $ / shares | 33.87 |
Forfeited or expired (in dollars per shares) | $ / shares | 58.22 |
Outstanding (in dollars per shares) | $ / shares | 51.16 |
Exercisable as of reporting date (in dollars per shares) | $ / shares | 47.62 |
Vested and expected to vest (in dollars per shares) | $ / shares | $ 50.95 |
Weighted- Average Remaining Contractual Term (in years) | |
Outstanding (in years) | 6 years 3 months 21 days |
Exercisable (in years) | 4 years 10 months 24 days |
Options vested or expected to vest (in years) | 6 years 2 months 1 day |
Aggregate Intrinsic Value (in thousands) | |
Outstanding | $ | $ 70,411 |
Exercisable | $ | 52,631 |
Options vested or expected to vest | $ | $ 67,670 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Risk-free rate | 3.50% | 1.90% | 3.90% | 1.90% |
Expected dividend yield | 0.56% | 0.53% | 0.59% | 0.40% |
Expected volatility | 39% | 37% | 39% | 37% |
Expected term (in years) | 5 years 10 months 24 days | 6 years 1 month 6 days | 4 years 10 months 24 days | 5 years 2 months 12 days |
Stock-Based Compensation Expe_6
Stock-Based Compensation Expense - Schedule of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Shares (in thousands) | ||||
Nonvested as of beginning of period (in shares) | 1,269 | |||
Granted (in shares) | 663 | |||
Vested (in shares) | 29 | 20 | 482 | 74 |
Forfeited or expired (in shares) | (65) | |||
Nonvested as of end of period (in shares) | 1,385 | 1,385 | ||
Weighted-Average Grant Date Fair Value | ||||
Nonvested as of beginning of period (in dollars per share) | $ 61.74 | |||
Granted (in dollars per share) | $ 52.53 | $ 45.25 | 46.86 | $ 63.37 |
Vested (in dollars per share) | 59.40 | |||
Forfeited or expired (in dollars per share) | 61.52 | |||
Nonvested as of end of period (in dollars per share) | $ 55.44 | $ 55.44 |
Stock-Based Compensation Expe_7
Stock-Based Compensation Expense - Schedule of Performance Restricted Stock Units (Details) - Performance Shares (PRSUs) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Shares (in thousands) | ||||
Nonvested as of beginning of period (in shares) | 33 | |||
Granted (in shares) | 0 | 0 | 46 | 33 |
Vested (in shares) | 0 | 0 | 0 | 0 |
Forfeited or expired (in shares) | 0 | |||
Nonvested as of end of period (in shares) | 79 | 79 | ||
Weighted-Average Grant Date Fair Value | ||||
Nonvested as of beginning of period (in dollars per share) | $ 62.49 | |||
Granted (in dollars per share) | 44.86 | |||
Vested (in dollars per share) | 0 | |||
Forfeited or expired (in dollars per share) | 0 | |||
Nonvested as of end of period (in dollars per share) | $ 52.23 | $ 52.23 |
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 | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 12,574 | $ 12,997 | $ 29,153 | $ 28,053 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 441 | 482 | 1,062 | 1,045 |
Research, development, and engineering | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 3,308 | 3,851 | 9,198 | 8,299 |
Selling, general, and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 8,825 | $ 8,664 | $ 18,893 | $ 18,709 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) shares in Thousands | 6 Months Ended | |||
Jul. 02, 2023 | 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 | |||
Shares repurchased at cost | $ 117,000,000 | |||
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) | 966 | 590 | ||
Shares repurchased at cost | $ 49,163,000 | $ 37,317,000 | ||
Remaining authorized repurchase amount | $ 363,523,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 15% | 9% | 12% | 17% |
Discrete tax expense (benefit) | $ 399 | $ (2,352) | $ (3,195) | $ 3,986 |
Increase in tax expense related to stock-based compensation | 1,766 | 176 | ||
Decrease in tax expense arising from tax settlement | 3,051 | 1,577 | ||
Change in tax expense related to valuation allowance | 2,198 | 2,316 | ||
Increase in tax expense related to transfer pricing and return-to-provision adjustments | 288 | $ 3,071 | ||
Liability for uncertain tax positions | $ 19,239 | $ 19,239 | ||
Tax years open to examination by Internal Revenue Service | 2019 through 2021 | |||
Tax years open to examination by various taxing authorities for other entities | 2017 through 2022 | |||
Foreign Tax Authority | Ireland | ||||
Income Tax Contingency [Line Items] | ||||
Statutory tax rate | 12.50% | |||
Foreign Tax Authority | China | ||||
Income Tax Contingency [Line Items] | ||||
Statutory tax rate | 25% | |||
Foreign Tax Authority | Korea | ||||
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 | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average common shares outstanding (in shares) | 172,429 | 173,507 | 172,527 | 173,830 |
Effect of dilutive equity awards (in shares) | 1,193 | 1,486 | 1,264 | 2,044 |
Weighted-average common and common-equivalent shares outstanding (in shares) | 173,622 | 174,993 | 173,791 | 175,874 |
Weighted-Average Shares - Narra
Weighted-Average Shares - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jul. 03, 2022 | Jul. 02, 2023 | Jul. 03, 2022 | |
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) | 6,890,000 | 4,048,000 | 6,713,000 | 1,818,000 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (shares) | 3,000 | 480,000 | 1,000 | 21,000 |
Performance Shares (PRSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (shares) | 0 | 33,000 | 0 | 0 |
Loss (Recovery) from Fire (Deta
Loss (Recovery) from Fire (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 02, 2023 | Dec. 31, 2022 | Jul. 03, 2022 | |
Insurance [Abstract] | |||
Loss from fire | $ 17,403 | ||
Gross loss from fire | $ 44,903 | ||
Estimated insurance recoveries | $ 27,500 | ||
Insurance recoveries | $ 27,560 | ||
Recovery from fire | $ 2,500 |
Restructuring Charges (Details)
Restructuring Charges (Details) - Accrued expenses - December 2022 $ in Thousands | 6 Months Ended |
Jul. 02, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | $ 1,039 |
Cash payments | (751) |
Foreign exchange rate changes | (10) |
Balance at end of period | 298 |
One-time Termination Benefits | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | 964 |
Cash payments | (703) |
Foreign exchange rate changes | (9) |
Balance at end of period | 270 |
Contract Termination Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at beginning of period | 75 |
Cash payments | (48) |
Foreign exchange rate changes | (1) |
Balance at end of period | $ 28 |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 01, 2023 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends (in dollars per share) | $ 0.07 |