Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 26, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'COGNEX CORP | ' | ' |
Entity Central Index Key | '0000851205 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 86,848,722 | ' |
Entity Public Float | ' | ' | $1,863,936,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenue | ' | ' | ' | |||
Product | $326,786 | $295,588 | $297,310 | |||
Service | 27,100 | 28,691 | 24,604 | |||
Total revenue | 353,886 | 324,279 | 321,914 | |||
Cost of revenue | ' | ' | ' | |||
Product | 71,893 | 65,432 | 64,732 | |||
Service | 12,187 | 14,063 | 13,187 | |||
Total cost of revenue | 84,080 | 79,495 | 77,919 | |||
Gross margin | ' | ' | ' | |||
Product | 254,893 | 230,156 | 232,578 | |||
Service | 14,913 | 14,628 | 11,417 | |||
Total gross margin | 269,806 | 244,784 | 243,995 | |||
Research, development, and engineering expenses | 48,087 | 41,549 | 40,946 | |||
Selling, general, and administrative expenses | 135,351 | 119,828 | 117,694 | |||
Operating income | 86,368 | 83,407 | 85,355 | |||
Foreign currency loss | -646 | -880 | -504 | |||
Investment income | 2,604 | 4,470 | 2,902 | |||
Other expense | -440 | -367 | -636 | |||
Income before income tax expense | 87,886 | 86,630 | 87,117 | |||
Income tax expense | 14,313 | 18,532 | 17,248 | |||
Net income | $73,573 | $68,098 | $69,869 | |||
Net income per common and common-equivalent share: | ' | ' | ' | |||
Basic | $0.85 | [1] | $0.79 | [1] | $0.83 | [1] |
Diluted | $0.83 | [1] | $0.78 | [1] | $0.82 | [1] |
Weighted-average common and common-equivalent shares outstanding: | ' | ' | ' | |||
Basic | 86,946 | [1] | 85,666 | [1] | 83,718 | [1] |
Diluted | 88,901 | [1] | 87,280 | [1] | 85,524 | [1] |
Cash dividends per common share | ' | $0.77 | [1] | $0.18 | [1] | |
[1] | Prior period results have been adjusted to reflect the two-for-one stock split effected in the form of a stock dividend which occurred in the third quarter of 2013. |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) | 1 Months Ended | 12 Months Ended |
Jul. 28, 2013 | Dec. 31, 2013 | |
Income Statement [Abstract] | ' | ' |
Stock split conversion ratio | 2 | 2 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $73,573,000 | $68,098,000 | $69,869,000 |
Other comprehensive loss, net of tax: | ' | ' | ' |
Net unrealized gain on cash flow hedges, net of tax of $13 | 104,000 | 0 | ' |
Net unrealized gain (loss) on available-for-sale investments, net of tax of ($147), $129, and $123 in 2013, 2012, and 2011, respectively | -190,000 | 2,079,000 | 174,000 |
Foreign currency translation adjustments, net of tax of $22, $7, and $238 in 2013, 2012, and 2011, respectively | 82,000 | -12,546,000 | -8,491,000 |
Other comprehensive loss | -4,000 | -10,467,000 | -8,317,000 |
Comprehensive income | $73,569,000 | $57,631,000 | $61,552,000 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Tax effect of unrealized gain on cash flow hedges | $13 | ' | ' |
Tax effect of unrealized gain (loss) on available-for-sale investments | -147 | 129 | 123 |
Tax effect of foreign currency translation adjustment | $22 | $7 | $238 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $40,644 | $45,160 | ||
Short-term investments | 184,822 | 105,105 | ||
Accounts receivable, less reserves of $1,354 and $1,131 in 2013 and 2012, respectively | 53,015 | 42,387 | ||
Inventories | 25,694 | 26,182 | ||
Deferred income taxes | 7,611 | 6,369 | ||
Prepaid expenses and other current assets | 20,265 | 14,394 | ||
Total current assets | 332,051 | 239,597 | ||
Long-term investments | 229,655 | 238,255 | ||
Property, plant, and equipment, net | 37,136 | 34,820 | ||
Deferred income taxes | 12,307 | 15,647 | ||
Intangible assets, net | 14,723 | 14,770 | ||
Goodwill | 81,689 | 81,689 | ||
Other assets | 2,138 | 2,827 | ||
Total assets | 709,699 | 627,605 | ||
Current liabilities: | ' | ' | ||
Accounts payable | 9,487 | 6,815 | ||
Accrued expenses | 34,331 | 29,590 | ||
Accrued income taxes | 1,263 | 1,009 | ||
Deferred revenue and customer deposits | 15,941 | 12,690 | ||
Total current liabilities | 61,022 | 50,104 | ||
Reserve for income taxes | 4,765 | 5,216 | ||
Commitments and contingencies (Note 10) | ' | ' | ||
Shareholders' equity: | ' | ' | ||
Common stock, $.002 par value - Authorized: 140,000 shares, issued and outstanding: 86,831 and 86,110 shares in 2013 and 2012, respectively | 174 | [1] | 172 | [1] |
Additional paid-in capital | 211,440 | [1] | 165,162 | [1] |
Retained earnings | 462,131 | [1] | 436,466 | [1] |
Accumulated other comprehensive loss, net of tax | -29,833 | [1] | -29,515 | [1] |
Total shareholders' equity | 643,912 | [1] | 572,285 | [1] |
Total liabilities and shareholders' equity | $709,699 | $627,605 | ||
[1] | Prior period amounts have been adjusted to reflect the two-for-one stock split effected in the form of a stock dividend which occurred in the third quarter of 2013. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, except Per Share data, unless otherwise specified | ||||
Statement Of Financial Position [Abstract] | ' | ' | ||
Reserves for accounts receivable | $1,354 | $1,131 | ||
Common stock, par value | $0.00 | [1] | $0.00 | [1] |
Common stock, shares authorized | 140,000 | [1] | 140,000 | [1] |
Common stock, shares issued | 86,831 | [1] | 86,110 | [1] |
Common stock, shares outstanding | 86,831 | [1] | 86,110 | [1] |
[1] | Prior period amounts have been adjusted to reflect the two-for-one stock split effected in the form of a stock dividend which occurred in the third quarter of 2013. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash flows from operating activities: | ' | ' | ' |
Net income | $73,573,000 | $68,098,000 | $69,869,000 |
Adjustments to reconcile net income to net cash provided by operations: | ' | ' | ' |
Stock-based compensation expense | 10,620,000 | 8,520,000 | 8,068,000 |
Depreciation of property, plant, and equipment | 7,305,000 | 6,721,000 | 5,529,000 |
Amortization of intangible assets | 3,797,000 | 4,137,000 | 4,227,000 |
Amortization of discounts or premiums on investments | 2,519,000 | 5,735,000 | 6,383,000 |
Realized (gain) loss on sale of investments | 403,000 | -1,625,000 | 181,000 |
Change in deferred income taxes | 2,234,000 | 429,000 | -425,000 |
Tax effect of stock option exercises | -7,658,000 | -3,594,000 | -4,045,000 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -11,311,000 | 5,035,000 | -2,031,000 |
Inventories | 666,000 | 1,872,000 | -5,743,000 |
Accrued expenses | 5,593,000 | -1,974,000 | 2,747,000 |
Accrued income taxes | 7,968,000 | 3,363,000 | -2,865,000 |
Deferred revenue and customer deposits | 3,228,000 | -761,000 | 3,316,000 |
Other | -3,482,000 | 5,175,000 | 1,064,000 |
Net cash provided by operating activities | 95,455,000 | 101,131,000 | 86,275,000 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of investments | -370,781,000 | -460,486,000 | -323,946,000 |
Maturities and sales of investments | 296,091,000 | 431,510,000 | 241,557,000 |
Purchases of property, plant, and equipment | -9,630,000 | -9,878,000 | -7,820,000 |
Cash paid for purchased technology | -3,750,000 | ' | ' |
Net cash used in investing activities | -88,070,000 | -38,854,000 | -90,209,000 |
Cash flows from financing activities: | ' | ' | ' |
Issuance of common stock under stock option plans | 27,792,000 | 17,468,000 | 30,863,000 |
Payment of dividends | 0 | -66,213,000 | -15,114,000 |
Repurchase of common stock | -47,908,000 | ' | -10,000,000 |
Tax effect of stock option exercises | 7,658,000 | 3,594,000 | 4,045,000 |
Net cash provided by (used in) financing activities | -12,458,000 | -45,151,000 | 9,794,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 557,000 | -10,069,000 | -960,000 |
Net change in cash and cash equivalents | -4,516,000 | 7,057,000 | 4,900,000 |
Cash and cash equivalents at beginning of year | 45,160,000 | 38,103,000 | 33,203,000 |
Cash and cash equivalents at end of year | $40,644,000 | $45,160,000 | $38,103,000 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
Beginning Balance at Dec. 31, 2010 | $473,311,000 | $164,000 | $102,538,000 | $379,826,000 | ($9,217,000) | |
Beginning Balance, Shares at Dec. 31, 2010 | ' | 82,130,000 | ' | ' | ' | |
Issuance of common stock under stock option plans | 30,863,000 | 6,000 | 30,857,000 | ' | ' | |
Issuance of common stock under stock option plans, shares | ' | 2,990,000 | ' | ' | ' | |
Stock-based compensation expense | 8,068,000 | ' | 8,068,000 | ' | ' | |
Excess tax benefit from stock option exercises | 4,045,000 | ' | 4,045,000 | ' | ' | |
Tax benefit for research and development credits as a result of stock option accounting | 74,000 | ' | 74,000 | ' | ' | |
Repurchase of common stock | -10,000,000 | -2,000 | -9,998,000 | ' | ' | |
Repurchase of common stock, shares | ' | -674,000 | ' | ' | ' | |
Payment of dividends | -15,114,000 | ' | ' | -15,114,000 | ' | |
Net income | 69,869,000 | ' | ' | 69,869,000 | ' | |
Net unrealized gain (loss) on available-for-sale investments, net of tax | 174,000 | ' | ' | ' | 174,000 | |
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | 181,000 | ' | ' | ' | 181,000 | |
Foreign currency translation adjustment, net of tax | -8,491,000 | ' | ' | ' | -8,491,000 | |
Ending Balance at Dec. 31, 2011 | 552,980,000 | 168,000 | 135,584,000 | 434,581,000 | -17,353,000 | |
Ending Balance, Shares at Dec. 31, 2011 | ' | 84,446,000 | ' | ' | ' | |
Issuance of common stock under stock option plans | 17,468,000 | 4,000 | 17,464,000 | ' | ' | |
Issuance of common stock under stock option plans, shares | ' | 1,664,000 | ' | ' | ' | |
Stock-based compensation expense | 8,520,000 | ' | 8,520,000 | ' | ' | |
Excess tax benefit from stock option exercises | 3,594,000 | ' | 3,594,000 | ' | ' | |
Payment of dividends | -66,213,000 | ' | ' | -66,213,000 | ' | |
Net income | 68,098,000 | ' | ' | 68,098,000 | ' | |
Net unrealized gain on derivative instruments, net of tax | 0 | ' | ' | ' | ' | |
Net unrealized gain (loss) on available-for-sale investments, net of tax | 2,079,000 | ' | ' | ' | 2,079,000 | |
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | -1,695,000 | ' | ' | ' | -1,695,000 | |
Foreign currency translation adjustment, net of tax | -12,546,000 | ' | ' | ' | -12,546,000 | |
Ending Balance at Dec. 31, 2012 | 572,285,000 | [1] | 172,000 | 165,162,000 | 436,466,000 | -29,515,000 |
Ending Balance, Shares at Dec. 31, 2012 | 86,110,000 | [1] | 86,110,000 | ' | ' | ' |
Issuance of common stock under stock option plans | 27,792,000 | 2,000 | 27,790,000 | ' | ' | |
Issuance of common stock under stock option plans, shares | 2,445,000 | 2,440,000 | ' | ' | ' | |
Stock-based compensation expense | 10,620,000 | ' | 10,620,000 | ' | ' | |
Excess tax benefit from stock option exercises | 7,658,000 | ' | 7,658,000 | ' | ' | |
Tax benefit for research and development credits as a result of stock option accounting | 210,000 | ' | 210,000 | ' | ' | |
Repurchase of common stock | -47,908,000 | ' | ' | -47,908,000 | ' | |
Repurchase of common stock, shares | ' | -1,719,000 | ' | ' | ' | |
Net income | 73,573,000 | ' | ' | 73,573,000 | ' | |
Net unrealized gain on derivative instruments, net of tax | 104,000 | ' | ' | ' | 104,000 | |
Net unrealized gain (loss) on available-for-sale investments, net of tax | -190,000 | ' | ' | ' | -190,000 | |
Reclassification of net realized (gain) loss on the sale of available-for-sale investments | -314,000 | ' | ' | ' | -314,000 | |
Foreign currency translation adjustment, net of tax | 82,000 | ' | ' | ' | 82,000 | |
Ending Balance at Dec. 31, 2013 | $643,912,000 | [1] | $174,000 | $211,440,000 | $462,131,000 | ($29,833,000) |
Ending Balance, Shares at Dec. 31, 2013 | 86,831,000 | [1] | 86,831,000 | ' | ' | ' |
[1] | Prior period amounts have been adjusted to reflect the two-for-one stock split effected in the form of a stock dividend which occurred in the third quarter of 2013. |
Consolidated_Statement_of_Shar1
Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Tax effect of unrealized gain on derivative instruments | $13 | ' | ' |
Tax effect of unrealized gain (loss) on available-for-sale investments | -147 | 129 | 123 |
Tax effect of foreign currency translation adjustment | 22 | 7 | 238 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Tax effect of unrealized gain on derivative instruments | 13 | ' | ' |
Tax effect of unrealized gain (loss) on available-for-sale investments | -147 | 129 | 123 |
Tax effect of foreign currency translation adjustment | $22 | $7 | $238 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
NOTE 1: Summary of Significant Accounting Policies | |
The accompanying consolidated financial statements reflect the application of the significant accounting policies described below. | |
Nature of Operations | |
Cognex Corporation is a leading provider of machine vision products that capture and analyze visual information in order to automate tasks, primarily in manufacturing processes, where vision is required. | |
Use of Estimates in the Preparation of Financial Statements | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the balance sheet date, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. Significant estimates and judgments include those related to revenue recognition, investments, accounts receivable, inventories, long-lived assets, goodwill, warranty obligations, contingencies, stock-based compensation, income taxes, derivative instruments, and purchase accounting. | |
Basis of Consolidation | |
The consolidated financial statements include the accounts of Cognex Corporation and its subsidiaries, all of which are wholly-owned. All intercompany accounts and transactions have been eliminated. | |
Foreign Currency Translation | |
The financial statements of the Company’s foreign subsidiaries, where the local currency is the functional currency, are translated using exchange rates in effect at the end of the year for assets and liabilities and average exchange rates during the year for results of operations. The resulting foreign currency translation adjustment, net of tax, is recorded in shareholders’ equity as other comprehensive loss. | |
Fair Value Measurements | |
The Company applies a three-level valuation hierarchy for fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. Level 1 inputs to the valuation methodology utilize unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets and liabilities, quoted prices for identical and similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 inputs to the valuation methodology are unobservable inputs based upon management’s best estimate of the inputs that market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. A change to the level of an asset or liability within the fair value hierarchy is determined at the end of a reporting period. | |
Cash, Cash Equivalents, and Investments | |
Money market instruments purchased with original maturities of three months or less are classified as cash equivalents and are stated at amortized cost. Debt securities with original maturities greater than three months and remaining maturities of one year or less are classified as short-term investments, as well as equity securities that the Company intends to sell within one year. Debt securities with remaining maturities greater than one year, as well as a limited partnership interest, are classified as long-term investments. It is the Company’s policy to invest in debt securities with effective maturities that do not exceed ten years. | |
Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in shareholders’ equity as other comprehensive income (loss). Equity securities that are held for short periods of time with the intention of selling them in the near term are designated as trading and are reported at fair value, with unrealized gains and losses recorded in current operations. Realized gains and losses are included in current operations, along with the amortization of the discount or premium on debt securities arising at acquisition, and are calculated using the specific identification method. The Company’s limited partnership interest is accounted for using the cost method because the Company’s investment is less than 5% of the partnership and the Company has no influence over the partnership’s operating and financial policies. Furthermore, the investment does not have a readily determinable market value, and therefore, does not qualify for fair value accounting. | |
Management monitors the carrying value of its investments in debt securities and a limited partnership interest compared to their fair value to determine whether an other-than-temporary impairment has occurred. If the fair value of a debt security is less than its amortized cost, the Company assesses whether the impairment is other-than-temporary. In considering whether a decline in fair value is other-than-temporary, we consider many factors. In its evaluation of its debt securities, management considers the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. An impairment is considered other-than-temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security. If impairment is considered other-than-temporary based upon condition (i) or (ii) described above, the entire difference between the amortized cost and the fair value of the security is recognized in current operations. If an impairment is considered other-than-temporary based upon condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security) will be recognized in current operations and the amount relating to all other factors will be recognized in other comprehensive income (loss). In its evaluation of its limited partnership interest, management considers the duration and extent of the decline, the length of the Company’s commitment to the investment, general economic trends, and specific communications with the General Partner. | |
Accounts Receivable | |
The Company extends credit with various payment terms to customers based upon an evaluation of their financial condition. Accounts that are outstanding longer than the payment terms are considered to be past due. The Company establishes reserves against its accounts receivable for potential credit losses when it determines receivables are at risk for collection based upon the length of time the receivable has been outstanding, the customer’s current ability to pay its obligations to the Company, general economic and industry conditions, as well as various other factors. Receivables are written off against these reserves in the period they are determined to be uncollectible and payments subsequently received on previously written-off receivables are recorded as a reversal of the bad debt provision. | |
For certain customers in Japan, as part of its customary business practice, the Company accepts promissory notes of up to 180 days after the original credit terms expire. Promissory notes receivable totaled $1,372,000 and $1,211,000 as of December 31, 2013 and 2012, respectively, and are included in “Accounts receivable” on the Consolidated Balance Sheets. | |
Inventories | |
Inventories are stated at the lower of cost or market. Cost is determined using standard costs, which approximates actual costs under the first-in, first-out (FIFO) method. The Company’s inventory is subject to rapid technological change or obsolescence. The Company reviews inventory quantities on hand and estimates excess and obsolescence exposures based upon assumptions about future demand, product transitions, and market conditions, and records reserves to reduce the carrying value of inventories to their net realizable value. If actual future demand is less than estimated, additional inventory write-downs would be required. | |
The Company generally disposes of obsolete inventory upon determination of obsolescence. The Company does not dispose of excess inventory immediately, due to the possibility that some of this inventory could be sold to customers as a result of differences between actual and forecasted demand. When inventory has been written down below cost, such reduced amount is considered the new cost basis for subsequent accounting purposes. As a result, the Company would recognize a higher than normal gross margin if the reserved inventory were subsequently sold. | |
Property, Plant, and Equipment | |
Property, plant, and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Buildings’ useful lives are 39 years, building improvements’ useful lives are ten years, and the useful lives of computer hardware and software, manufacturing test equipment, and furniture and fixtures range from two to five years. Leasehold improvements are depreciated over the shorter of the estimated useful lives or the remaining terms of the leases. Maintenance and repairs are expensed when incurred; additions and improvements are capitalized. Upon retirement or disposition, the cost and related accumulated depreciation of the disposed assets are removed from the accounts, with any resulting gain or loss included in current operations. | |
Intangible Assets | |
Intangible assets are stated at cost and amortized over the assets’ estimated useful lives. Intangible assets are either amortized in relation to the relative cash flows anticipated from the intangible asset or using the straight-line method, depending upon facts and circumstances. The useful lives of distribution networks range from eleven to twelve years, of customer contracts and relationships from eight to twelve years, and of completed technologies and other intangible assets from three to eight years. The Company evaluates the possible impairment of long-lived assets, including intangible assets, whenever events or circumstances indicate the carrying value of the assets may not be recoverable. At the occurrence of a certain event or change in circumstances, the Company evaluates the potential impairment of an asset by estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the sum of the estimated future cash flows is less than the carrying value, the Company determines the amount of such impairment by comparing the fair value of the asset to its carrying value. The fair value is based upon the present value of the estimated future cash flows using a discount rate commensurate with the risks involved. | |
Goodwill | |
Goodwill is stated at cost. The Company evaluates the possible impairment of goodwill annually each fourth quarter and whenever events or circumstances indicate the carrying value of the goodwill may not be recoverable. For the past three years, the Company has performed a qualitative assessment of goodwill (commonly known as “step zero”) to determine whether further impairment testing is necessary. Factors that management considers in this assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management or strategy, and changes in the composition or carrying amount of net assets. In addition, management takes into consideration the goodwill valuation under the last quantitative analysis that was performed. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would proceed to a two-step process. Step one compares the fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount exceeds the fair value of the reporting unit, step two is required to measure the amount of impairment loss. Step two compares the implied fair value of the reporting unit goodwill to the carrying amount of the goodwill. | |
Warranty Obligations | |
The Company warrants its products to be free from defects in material and workmanship for periods primarily ranging from six months to two years from the time of sale based upon the product being purchased and the terms of the customer arrangement. Warranty obligations are evaluated and recorded at the time of sale since it is probable that customers will make claims under warranties related to products that have been sold and the amount of these claims can be reasonably estimated based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or circumstances impacting product quality become known that would not have been taken into account using historical data. | |
Contingencies | |
Loss contingencies are accrued if the loss is probable and the amount of the loss can be reasonably estimated. Legal costs associated with potential loss contingencies, such as patent infringement matters, are expensed as incurred. | |
Revenue Recognition | |
The Company’s product revenue is derived from the sale of machine vision systems, which can take the form of hardware with embedded software or software-only, and related accessories. The Company also generates revenue by providing maintenance and support, training, consulting, and installation services to its customers. Certain of the Company’s arrangements include multiple deliverables that provide the customer with a combination of products or services. In order to recognize revenue, the Company requires that a signed customer contract or purchase order is received, the fee from the arrangement is fixed or determinable, and collection of the resulting receivable is probable. Assuming that these criteria have been met, product revenue is generally recognized upon delivery, revenue from maintenance and support programs is recognized ratably over the program period, revenue from training and consulting services is recognized over the period that the services are provided, and revenue from installation services is recognized when the customer has signed off that the installation is complete. When customer-specified acceptance criteria exists that are substantive, product revenue is deferred until these criteria have been met. | |
The majority of the Company’s product offerings consist of hardware with embedded software. Under the revenue recognition rules for tangible products, the fee from a multiple-deliverable arrangement is allocated to each of the deliverables based upon their relative selling prices as determined by a selling-price hierarchy. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. A delivered item that does not qualify as a separate unit of accounting is combined with the other undelivered items in the arrangement and revenue is recognized for those combined deliverables as a single unit of accounting. The selling price used for each deliverable is based upon vendor-specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, and management’s best estimate of selling price (BESP) if neither VSOE nor TPE are available. VSOE is the price charged for a deliverable when it is sold separately. TPE is the price of the Company’s or any competitor’s largely interchangeable products or services in stand-alone sales to similarly-situated customers. BESP is the price at which the Company would sell the deliverable if it were sold regularly on a stand-alone basis, considering market conditions and entity-specific factors. | |
The selling prices used in the relative selling price allocation method for (1) certain of the Company’s services are based upon VSOE, (2) third-party accessories available from other vendors are based upon TPE, and (3) hardware products with embedded software, custom accessories, and services for which VSOE does not exist are based upon BESP. The Company does not believe TPE exists for these products and services because they are differentiated from competing products and services in terms of functionality and performance and there are no competing products or services that are largely interchangeable. For the Company’s Modular Vision Systems Division (MVSD), BESP has been established for each product line within each region, and for the Company’s Surface Inspection Systems Division (SISD), BESP has been established for each industry within each region. Management establishes BESP with consideration for market conditions, such as the impact of competition and geographic considerations, and entity-specific factors, such as the cost of the product and the division’s profit objectives. Management believes that BESP is reflective of reasonable pricing of that deliverable as if priced on a stand-alone basis. | |
Under the revenue recognition rules for software-only products, the fee from a multiple-deliverable arrangement is allocated to each of the undelivered elements based upon VSOE, which is limited to the price charged when the same deliverable is sold separately, with the residual value from the arrangement allocated to the delivered element. The portion of the fee that is allocated to each deliverable is then recognized as revenue when the criteria for revenue recognition are met with respect to that deliverable. If VSOE does not exist for all of the undelivered elements, then all revenue from the arrangement is typically deferred until all elements have been delivered to the customer. | |
The Company’s products are sold directly to end users, as well as to resellers including original equipment manufacturers (OEMs), distributors, and integrators. Revenue is recognized upon delivery of the product to the reseller, assuming all other revenue recognition criteria have been met. The Company establishes reserves against revenue for potential product returns, since the amount of future returns can be reasonably estimated based upon experience. These reserves have historically been immaterial. | |
Amounts billed to customers related to shipping and handling, as well as reimbursements received from customers for out-of-pocket expenses, are classified as revenue, with the associated costs included in cost of revenue. | |
Research and Development | |
Research and development costs for internally-developed or acquired products are expensed when incurred until technological feasibility has been established for the product. Thereafter, all software costs are capitalized until the product is available for general release to customers. The Company determines technological feasibility at the time the product reaches beta in its stage of development. Historically, the time incurred between beta and general release to customers has been short, and therefore, the costs have been insignificant. As a result, the Company has not capitalized software costs associated with internally-developed products. | |
Advertising Costs | |
Advertising costs are expensed as incurred and totaled $1,656,000 in 2013, $1,792,000 in 2012, and $2,157,000 in 2011. | |
Stock-Based Compensation | |
The Company’s share-based payments that result in compensation expense consist solely of stock option grants. The Company has reserved a specific number of shares of its authorized but unissued shares for issuance upon the exercise of stock options. When a stock option is exercised, the Company issues new shares from this pool. The fair values of stock options are estimated on the grant date using a binomial lattice model. Management is responsible for determining the appropriate valuation model and estimating these fair values, and in doing so, considers a number of factors, including information provided by an outside valuation advisor. | |
The Company recognizes compensation expense using the graded attribution method, in which expense is recognized on a straight-line basis over the service period for each separately vesting portion of the stock option as if the option was, in substance, multiple awards. The amount of compensation expense recognized at the end of the vesting period is based upon the number of stock options for which the requisite service has been completed. No compensation expense is recognized for options that are forfeited for which the employee does not render the requisite service. The term “forfeitures” is distinct from “expirations” and represents only the unvested portion of the surrendered option. The Company applies estimated forfeiture rates to its unvested options to arrive at the amount of compensation expense that is expected to be recognized over the requisite service period. At the end of each separately vesting portion of an option, the expense that was recognized by applying the estimated forfeiture rate is compared to the expense that should be recognized based upon the employee’s service, and a credit to expense is recorded related to those employees that have not rendered the requisite service. | |
Taxes | |
The Company recognizes a tax position in its financial statements when that tax position, based solely upon its technical merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statutes of limitations. Derecognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. | |
Only the portion of the liability that is expected to be paid within one year is classified as a current liability. As a result, liabilities expected to be resolved without the payment of cash (e.g., resolution due to the expiration of the statutes of limitations) or are not expected to be paid within one year are not classified as current. It is the Company’s policy to record estimated interest and penalties as income tax expense and tax credits as a reduction in income tax expense. | |
Deferred tax assets and liabilities are determined based upon the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |
Sales tax in the United States and similar taxes in other jurisdictions that are collected from customers and remitted to government authorities are presented on a gross basis (i.e., a receivable from the customer with a corresponding payable to the government). Amounts collected from customers and retained by the Company during tax holidays are recognized as nonoperating income when earned. | |
Net Income Per Share | |
Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period plus potential dilutive common shares. Dilutive common equivalent shares consist of stock options and are calculated using the treasury stock method. Common equivalent shares do not qualify as participating securities. In periods where the Company records a net loss, potential common stock equivalents are not included in the calculation of diluted net loss per share. | |
Comprehensive Income | |
Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss, net of tax, as of December 31, 2013 and December 31, 2012, consists of foreign currency translation adjustments of $28,630,000 and $28,712,000, respectively; a net unrealized loss on available-for-sale investments of $36,000 and a net unrealized gain on available-for-sale investments of $468,000, respectively; a net unrealized gain on derivative instruments of $104,000 and $0, respectively; and losses on currency swaps, net of gains on long-term intercompany loans of $1,271,000 and $1,271,000, respectively. | |
Amounts reclassified from accumulated other comprehensive income to investment income on the Consolidated Statements of Operations were net realized gains of $314,000 and $1,695,000 for 2013 and 2012, respectively. Net reclassifications were immaterial in 2011. | |
Concentrations of Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments, and trade receivables. The Company has certain domestic and foreign cash balances that exceed the insured limits set by the Federal Deposit Insurance Corporation (FDIC) in the United States and equivalent regulatory agencies in foreign countries. The Company primarily invests in investment-grade debt securities and has established guidelines relative to credit ratings, diversification, and maturities of its debt securities that maintain safety and liquidity. The Company has not experienced any significant realized losses on its debt securities. | |
The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. The Company has not experienced any significant losses related to the collection of its accounts receivable. | |
A significant portion of the Company’s MVSD product is manufactured by two third-party contractors. These contractors have agreed to provide Cognex with termination notification periods and last-time-buy rights, if and when that may be applicable. We rely upon these contractors to provide quality product and meet delivery schedules. We engage in extensive product quality programs and processes, including actively monitoring the performance of our third-party manufacturers. Certain key electronic components that are purchased from strategic suppliers, such as processors or imagers, are fundamental to the design of Cognex products. A disruption in the supply of these key components, such as a last-time-buy announcement, natural disaster, financial bankruptcy, or other event, may require us to purchase a significant amount of inventory at unfavorable prices resulting in lower gross margins and higher risk of carrying excess or obsolete inventory. If we are unable to secure adequate supply from alternative sources, we may have to redesign our products, which may lead to a delay in manufacturing and a possible loss of sales. | |
The Company currently mitigates certain foreign currency exchange rate risk with derivative instruments. Currently, the Company enters into foreign currency forward contracts with one counterparty. If this counterparty experiences financial difficulties, or is otherwise unable to honor the terms of the contract, the Company may experience material losses. | |
Derivative Instruments | |
Derivative instruments are recorded on the Consolidated Balance Sheets at their fair value. Changes in the fair value of derivatives are recorded each period in current operations or in shareholders’ equity as other comprehensive income (loss), depending upon whether the derivative is designated as a hedge transaction and, if it is, the effectiveness of the hedge. At the inception of the contract, the Company designates foreign currency forward exchange contracts as either a cash flow hedge of certain forecasted foreign currency denominated sales and purchase transactions or as an economic hedge. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in shareholders’ equity as other comprehensive income (loss), and reclassified into earnings in the same period during which the hedged transaction affects earnings and in the same financial statement line item as that of the forecasted transaction. Cash flow hedges are evaluated for effectiveness quarterly. Any hedge ineffectiveness (which represents the amount by which the changes in the fair value of the derivative exceed the variability in the cash flows of the forecasted transaction) is recorded as “Foreign currency gain (loss)” on the Consolidated Statements of Operations in the period in which ineffectiveness is determined. Changes in the fair value of the Company’s economic hedges (not designated as a cash flow hedge) are reported in current earnings as “Foreign currency gain (loss)” on the Consolidated Statements of Operations. The cash flows from derivative instruments are presented in the same category on the Consolidated Statements of Cash Flows as the category for the cash flows from the hedged item. Generally, this accounting policy election results in cash flows related to derivative instruments being classified as an operating activity on the Consolidated Statements of Cash Flows. | |
The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific forecasted transactions. The Company also formally assesses (both at the hedge’s inception and on an ongoing basis) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value or cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. When it is determined that a derivative is not (or has ceased to be) highly effective as a hedge, the Company discontinues hedge accounting prospectively, as discussed below. | |
The Company discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (2) the derivative expires or is sold, terminated, or exercised; (3) it is no longer probable that the forecasted transaction will occur; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate or desired. When the Company discontinues hedge accounting because it is no longer probable that the forecasted transaction will occur in the originally expected period, the gain or loss on the derivative remains in accumulated other comprehensive income (loss) and is reclassified into earnings when the forecasted transaction affects earnings. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were accumulated in other comprehensive income (loss) will be recognized immediately in earnings. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will carry the derivative at its fair value on the Consolidated Balance Sheets, recognizing changes in the fair value in current earnings, unless it is designated in a new hedging relationship. | |
The Company recognizes all derivative instruments as either current assets or current liabilities at fair value on the Consolidated Balance Sheets. When the Company is engaged in more than one outstanding derivative contract with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, the “net” mark-to-market exposure represents the netting of the positive and negative exposures with that counterparty. Accordingly, cash flow hedges are presented net on the Consolidated Balance Sheets. |
New_Pronouncements
New Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
New Pronouncements | ' |
NOTE 2: New Pronouncements | |
Accounting Standards Update (ASU) 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” | |
The amendments in ASU 2013-01 require companies to present enhanced disclosure about certain financial instruments and derivative instruments that are offset in the balance sheet or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirement became effective, retrospectively, in the first quarter of our fiscal year ending December 31, 2013. However, as this ASU related only to presentation and disclosure it did not have an impact on our consolidated financial position, results of operations, or cash flows. | |
Accounting Standards Update (ASU) 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” | |
The amendments in ASU 2013-02 require companies to present information about amounts reclassified out of accumulated other comprehensive income (OCI) to net income, by component. The effect of significant reclassification adjustments being made out of accumulated OCI on the corresponding line items in net income must be presented when the item is reclassified in its entirety during one reporting period. While the new guidance in ASU 2013-12 changes the presentation of accumulated OCI, there are no changes to the components that are recognized in net income or OCI under current accounting guidance. This requirement became effective in the first quarter of our fiscal year ending December 31, 2013. However, prior period comparisons have been restated as well. | |
Accounting Standards Update (ASU) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” | |
The amendments in ASU 2013-11 require companies to present an unrecognized tax benefit, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss (NOL) carryforward or a similar tax loss or tax credit carryforward, unless the uncertain tax position is not available to reduce, or would not be used to reduce, the NOL or carryforward under the tax law in the same jurisdiction; otherwise, the unrecognized tax benefit should be presented as a gross liability and should not net the unrecognized tax benefit with a deferred tax asset. As the Company does not currently have any NOL carryforwards, this guidance will most likely apply to research and development tax credit carryforwrds. ASU 2013-11 is effective for annual periods beginning after December 15, 2013 and should be applied to all unrecognized tax benefits that exist as of the effective date. Companies may choose to apply this guidance retrospectively to each prior reporting period presented. Management is in the process of evaluating the impact of this update. | |
Internal Revenue Code Section 263(a) | |
In September 2013, the Treasury Department and the Internal Revenue Service released final regulations that provided guidance on the application of IRC Section 263(a) for amounts paid to acquire, produce, or improve tangible property, as well as the rules for materials and supplies and proposed regulations addressing dispositions and general asset accounts. The final regulations are generally effective for tax years beginning on or after January 1, 2014. Management is in the process of evaluating the impact of these new regulations. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Fair Value Measurements | ' | ||||||||
NOTE 3: 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 measured at fair value on a recurring basis as of December 31, 2013 (in thousands): | |||||||||
Quoted Prices in | Significant Other | ||||||||
Active Markets | Observable | ||||||||
for Identical | Inputs (Level 2) | ||||||||
Assets (Level 1) | |||||||||
Assets: | |||||||||
Money market instruments | $ | 520 | $ | - | |||||
Corporate bonds | - | 218,949 | |||||||
Asset-backed securities | - | 75,379 | |||||||
Treasury bills | - | 73,666 | |||||||
Sovereign bonds | - | 27,833 | |||||||
Municipal bonds | - | 15,195 | |||||||
Agency bonds | - | 1,499 | |||||||
Cash flow hedge forward contracts | - | 204 | |||||||
Economic hedge forward contracts | - | 6 | |||||||
Liabilities: | |||||||||
Cash flow hedge forward contracts | - | 98 | |||||||
Economic hedge forward contracts | - | 24 | |||||||
The Company’s money market instruments are reported at fair value based upon the daily market price for identical assets in active markets, and are therefore classified as Level 1. | |||||||||
The Company’s debt securities and forward contracts are reported at fair value based upon model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset and 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 foreign currency forward contracts are typically traded or executed in over-the-counter markets with a high degree of pricing transparency. The market participants are generally large commercial banks. | |||||||||
The Company did not record an other-than-temporary impairment of these financial assets or liabilities in 2013, 2012, or 2011. | |||||||||
Financial Assets that are Measured at Fair Value on a Non-recurring Basis | |||||||||
The Company has an interest in a limited partnership, which is accounted for using the cost method and is required to be measured at fair value on a non-recurring basis. Management is responsible for estimating the fair value of this investment, and in doing so, considers valuations of the partnership’s investments as determined by the General Partner. Publicly-traded investments in active markets are reported at the market closing price less a discount, as appropriate, to reflect restricted marketability. Fair value for private investments for which observable market prices in active markets do not exist is based upon the best information available including the value of a recent financing, reference to observable valuation measures for comparable companies (such as revenue multiples), public or private transactions (such as the sale of a comparable company), and valuations for publicly-traded comparable companies. The valuations also incorporate the General Partner’s own judgment and close familiarity with the business activities of each portfolio company. Significant increases or decreases in any of these inputs in isolation may result in a significantly lower or higher fair value measurement. The portfolio consists of securities of public and private companies, and consequently, inputs used in the fair value calculation are classified as Level 3. The Company did not record an other-than-temporary impairment of this investment in 2013, 2012, or 2011. | |||||||||
Non-financial Assets that are Measured at Fair Value on a Non-recurring Basis | |||||||||
Non-financial assets such as goodwill, intangible assets, and property, plant, and equipment are required to be measured at fair value only when an impairment loss is recognized. The Company did not record an impairment charge related to these assets in 2013, 2012, or 2011. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents, and Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||
Cash, Cash Equivalents, and Investments | ' | ||||||||||||||||||||||||
NOTE 4: Cash, Cash Equivalents, and Investments | |||||||||||||||||||||||||
Cash, cash equivalents, and investments consisted of the following (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Cash | $ | 40,124 | $ | 34,986 | |||||||||||||||||||||
Cash equivalents | - | 5,098 | |||||||||||||||||||||||
Money market instruments | 520 | 5,076 | |||||||||||||||||||||||
Cash and cash equivalents | 40,644 | 45,160 | |||||||||||||||||||||||
Corporate bonds | 109,040 | 46,001 | |||||||||||||||||||||||
Asset-backed securities | 53,559 | 17,666 | |||||||||||||||||||||||
Sovereign bonds | 11,448 | 3,986 | |||||||||||||||||||||||
Municipal bonds | 9,276 | 16,224 | |||||||||||||||||||||||
Agency bonds | 1,499 | 7,482 | |||||||||||||||||||||||
Treasury bills | - | 5,997 | |||||||||||||||||||||||
Covered bonds | - | 5,618 | |||||||||||||||||||||||
Corporate stock | - | 2,131 | |||||||||||||||||||||||
Short-term investments | 184,822 | 105,105 | |||||||||||||||||||||||
Corporate bonds | 109,909 | 100,072 | |||||||||||||||||||||||
Treasury bills | 73,666 | 36,276 | |||||||||||||||||||||||
Asset-backed securities | 21,820 | 34,710 | |||||||||||||||||||||||
Sovereign bonds | 16,385 | 10,606 | |||||||||||||||||||||||
Municipal bonds | 5,919 | 17,846 | |||||||||||||||||||||||
Agency bonds | - | 29,441 | |||||||||||||||||||||||
Covered bonds | - | 5,564 | |||||||||||||||||||||||
Limited partnership interest (accounted for using cost method) | 1,956 | 3,740 | |||||||||||||||||||||||
Long-term investments | 229,655 | 238,255 | |||||||||||||||||||||||
$ | 455,121 | $ | 388,520 | ||||||||||||||||||||||
The Company’s cash balance included foreign bank balances totaling $32,096,000 and $23,614,000 as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The Company’s investment portfolio includes corporate bonds, asset-backed securities, treasury bills, sovereign bonds, municipal bonds, and agency bonds. 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 both the U.S. and foreign governments; sovereign bonds consist of direct debt issued by foreign governments; municipal bonds consist of debt securities issued by state and local government entities; and agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing. | |||||||||||||||||||||||||
In 2012, the Company purchased equity securities, representing stock in a publicly-traded U.S. company, for $2,136,000. This balance was recorded in “Short-term investments” on the Consolidated Balance Sheets, as management considered this to be a trading security. In 2013, management liquidated all shares of this security at an aggregate fair value of $1,429,000, resulting in a realized loss of $702,000 recorded in “Investment income” on the Consolidated Statements of Operations in 2013. The Company recorded an unrealized loss of $5,000 related to this investment as of December 31, 2012. | |||||||||||||||||||||||||
The following tables summarize the Company’s available-for-sale investments as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term: | |||||||||||||||||||||||||
Corporate bonds | $ | 108,824 | $ | 281 | $ | (65 | ) | $ | 109,040 | ||||||||||||||||
Asset-backed securities | 54,061 | 13 | (515 | ) | 53,559 | ||||||||||||||||||||
Sovereign bonds | 11,445 | 16 | (13 | ) | 11,448 | ||||||||||||||||||||
Municipal bonds | 9,258 | 18 | - | 9,276 | |||||||||||||||||||||
Agency bonds | 1,500 | - | (1 | ) | 1,499 | ||||||||||||||||||||
Long-term: | |||||||||||||||||||||||||
Corporate bonds | 109,457 | 550 | (98 | ) | 109,909 | ||||||||||||||||||||
Treasury bills | 73,801 | 4 | (139 | ) | 73,666 | ||||||||||||||||||||
Asset-backed securities | 21,866 | 11 | (57 | ) | 21,820 | ||||||||||||||||||||
Sovereign bonds | 16,376 | 35 | (26 | ) | 16,385 | ||||||||||||||||||||
Municipal bonds | 5,901 | 22 | (4 | ) | 5,919 | ||||||||||||||||||||
$ | 412,489 | $ | 950 | $ | (918) | $ | 412,521 | ||||||||||||||||||
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 December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Unrealized Loss | Unrealized Loss | Total | |||||||||||||||||||||||
Position For Less than | Position For Greater than | ||||||||||||||||||||||||
12 Months | 12 Months | ||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Treasury bills | $ | 61,966 | $ | (139 | ) | $ | - | $ | - | $ | 61,966 | $ | (139 | ) | |||||||||||
Corporate bonds | 58,258 | (153 | ) | 3,122 | (10 | ) | 61,380 | (163 | ) | ||||||||||||||||
Asset-backed securities | 35,138 | (111 | ) | 18,452 | (461 | ) | 53,590 | (572 | ) | ||||||||||||||||
Sovereign bonds | 15,434 | (39 | ) | - | - | 15,434 | (39 | ) | |||||||||||||||||
Municipal bonds | 2,581 | (4 | ) | - | - | 2,581 | (4 | ) | |||||||||||||||||
Agency bonds | 1,499 | (1 | ) | - | - | 1,499 | (1 | ) | |||||||||||||||||
$ | 174,876 | $ | (447 | ) | $ | 21,574 | $ | (471 | ) | $ | 196,450 | $ | (918 | ) | |||||||||||
As of December 31, 2013, the Company did not recognize an other-than-temporary impairment of these investments. In its evaluation, management considered the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. The Company does not intend to sell, and is unlikely to be required to sell, any of these available-for-sale investments before its effective maturity or market price recovery. | |||||||||||||||||||||||||
The Company recorded gross realized gains on the sale of debt securities totaling $508,000 in 2013 and $1,990,000 in 2012, and gross realized losses on the sale of debt securities totaling $194,000 in 2013 and $295,000 in 2012. Gains and losses were immaterial in 2011. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, were recorded in shareholders’ equity as other comprehensive income (loss). In 2012, management changed the domicile of the subsidiary that held the Company’s Euro-denominated investment portfolio and also changed that subsidiary’s functional currency from the Euro to the U.S. Dollar. As a result of these changes, the investment portfolio was liquidated generating net gains and those funds were converted to U.S. Dollars. These funds were then used to purchase U.S. Dollar-denominated investments during 2012. | |||||||||||||||||||||||||
The following table presents the effective maturity dates of the Company’s available-for-sale investments as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
<1 Year | 1-2 Years | 2-3 Years | 3-4 Years | Total | |||||||||||||||||||||
Corporate bonds | $ | 109,040 | $ | 64,080 | $ | 42,686 | $ | 3,143 | $ | 218,949 | |||||||||||||||
Asset-backed securities | 53,559 | 14,917 | 6,903 | - | 75,379 | ||||||||||||||||||||
Treasury bills | - | 16,003 | 57,663 | - | 73,666 | ||||||||||||||||||||
Sovereign bonds | 11,448 | 8,810 | 7,575 | - | 27,833 | ||||||||||||||||||||
Municipal bonds | 9,276 | 1,269 | 2,754 | 1,896 | 15,195 | ||||||||||||||||||||
Agency bonds | 1,499 | - | - | - | 1,499 | ||||||||||||||||||||
$ | 184,822 | $ | 105,079 | $ | 117,581 | $ | 5,039 | $ | 412,521 | ||||||||||||||||
In 2000, the Company became a Limited Partner in Venrock Associates III, L.P. (Venrock), a venture capital fund. The Company has committed to a total investment in the limited partnership of up to $20,500,000, with the commitment period expiring December 31, 2015. As of December 31, 2013, the Company contributed $19,886,000 to the partnership. The remaining commitment of $614,000 can be called by Venrock at any time before December 31, 2015. Contributions and distributions are at the discretion of Venrock’s management. No contributions were made during 2013. The Company received stock distributions totaling $362,000 in 2013 and $2,193,000 in 2012. The Company immediately liquidated these stocks for proceeds of $347,000 and $2,128,000, respectively, resulting in realized losses of $15,000 and $65,000 in 2013 and 2012, respectively. Cash distributions in the amount of $1,422,000 were also received in 2013. All distributions are accounted for as return of capital. As of December 31, 2013, the carrying value of this investment was $1,956,000 compared to an estimated fair value of $4,315,000. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
NOTE 5: Inventories | |||||||||
Inventories consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 13,101 | $ | 12,667 | |||||
Work-in-process | 4,472 | 4,193 | |||||||
Finished goods | 8,121 | 9,322 | |||||||
$ | 25,694 | $ | 26,182 | ||||||
Property_Plant_and_Equipment
Property, Plant, and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property, Plant, and Equipment | ' | ||||||||
NOTE 6: Property, Plant, and Equipment | |||||||||
Property, plant, and equipment consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Land | $ | 3,951 | $ | 3,951 | |||||
Buildings | 18,371 | 18,371 | |||||||
Building improvements | 15,711 | 13,186 | |||||||
Leasehold improvements | 5,185 | 4,925 | |||||||
Computer hardware and software | 29,353 | 26,907 | |||||||
Manufacturing test equipment | 14,715 | 12,876 | |||||||
Furniture and fixtures | 3,917 | 3,790 | |||||||
91,203 | 84,006 | ||||||||
Less: accumulated depreciation | (54,067 | ) | (49,186 | ) | |||||
$ | 37,136 | $ | 34,820 | ||||||
The cost of property, plant, and equipment totaling $1,616,000 and $4,307,000 was removed from both the asset and accumulated depreciation balances in 2013 and 2012, respectively. Losses on these disposals were immaterial in both periods. | |||||||||
Buildings include rental property with a cost basis of $5,750,000 as of December 31, 2013 and 2012, and accumulated depreciation of $2,479,700 and $2,332,000 as of December 31, 2013 and 2012, respectively. | |||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Intangible Assets | ' | ||||||||||||
NOTE 7: Intangible Assets | |||||||||||||
Amortized intangible assets consisted of the following (in thousands): | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Value | Value | ||||||||||||
Distribution networks | $ | 38,060 | $ | 28,479 | $ | 9,581 | |||||||
Customer contracts and relationships | 6,690 | 5,661 | 1,029 | ||||||||||
Completed technologies | 4,420 | 407 | 4,013 | ||||||||||
Other | 370 | 270 | 100 | ||||||||||
Balance as of December 31, 2013 | $ | 49,540 | $ | 34,817 | $ | 14,723 | |||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Value | Value | ||||||||||||
Distribution networks | $ | 38,060 | $ | 25,193 | $ | 12,867 | |||||||
Customer contracts and relationships | 6,690 | 5,310 | 1,380 | ||||||||||
Completed technologies | 670 | 311 | 359 | ||||||||||
Other | 370 | 206 | 164 | ||||||||||
Balance as of December 31, 2012 | $ | 45,790 | $ | 31,020 | $ | 14,770 | |||||||
The cost and related amortization of certain fully-amortized customer contracts totaling $8,535,000 were removed from these accounts in 2012. | |||||||||||||
In October 2013, the Company paid $3,750,000 to purchase application development software that will run on top of the Company’s existing vision software to make it easier to use and develop custom applications more effectively. This purchased technology will be amortized to “Cost of revenue” on the Consolidated Statements of Operations over its estimated useful life of five years beginning in the second quarter of 2014 when the Company expects to start to sell product that incorporates this software. | |||||||||||||
Estimated amortization expense for each of the five succeeding fiscal years and thereafter is as follows (in thousands): | |||||||||||||
Year Ending December 31, | Amount | ||||||||||||
2014 | $ | 4,213 | |||||||||||
2015 | 4,366 | ||||||||||||
2016 | 3,427 | ||||||||||||
2017 | 1,617 | ||||||||||||
2018 | 913 | ||||||||||||
Thereafter | 187 | ||||||||||||
$ | 14,723 | ||||||||||||
Goodwill
Goodwill | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill | ' | ||||||||||||
NOTE 8: Goodwill | |||||||||||||
The Company has two reporting units with goodwill, the Modular Vision Systems Division (MVSD) and the Surface Inspection Systems Division (SISD), which are also reportable segments. | |||||||||||||
The changes in the carrying value of goodwill were as follows (in thousands): | |||||||||||||
MVSD | SISD | Consolidated | |||||||||||
Balance as of December 31, 2011 | $ | 77,556 | $ | 4,473 | $ | 82,029 | |||||||
Foreign currency exchange rate changes | (168 | ) | (172 | ) | (340 | ) | |||||||
Balance as of December 31, 2012 | 77,388 | 4,301 | 81,689 | ||||||||||
Foreign currency exchange rate changes | - | - | - | ||||||||||
Balance as of December 31, 2013 | $ | 77,388 | $ | 4,301 | $ | 81,689 | |||||||
For its 2013 analysis of goodwill, management elected to perform a qualitative assessment. Based upon this assessment, management does not believe that it is more likely than not that the carrying value of either reporting unit exceeds its fair value. Factors that management considered in this assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management or strategy, and changes in the composition or carrying amount of net assets. In addition, management took into consideration the goodwill valuation performed under the last quantitative analysis as of October 4, 2010. At that date, the fair value of the MVSD unit exceeded its carrying value by approximately 208%, while the fair value of the SISD unit exceeded its carrying value by approximately 119%. As of December 31, 2013, management does not believe any qualitative factors exist that would change the conclusion of their assessment. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Expenses | ' | ||||||||
NOTE 9: Accrued Expenses | |||||||||
Accrued expenses consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Company bonuses | $ | 6,880 | $ | 5,057 | |||||
Salaries, commissions, and payroll taxes | 6,111 | 5,563 | |||||||
Vacation | 4,598 | 4,237 | |||||||
Foreign retirement obligations | 3,726 | 3,487 | |||||||
Warranty obligations | 3,016 | 2,256 | |||||||
Japanese consumption taxes | 1,372 | 3,405 | |||||||
Other | 8,628 | 5,585 | |||||||
$ | 34,331 | $ | 29,590 | ||||||
The changes in the warranty obligation were as follows (in thousands): | |||||||||
Balance as of December 31, 2011 | $ | 2,097 | |||||||
Provisions for warranties issued during the period | 1,725 | ||||||||
Fulfillment of warranty obligations | (1,609 | ) | |||||||
Foreign exchange rate changes | 43 | ||||||||
Balance as of December 31, 2012 | 2,256 | ||||||||
Provisions for warranties issued during the period | 2,770 | ||||||||
Fulfillment of warranty obligations | (2,114 | ) | |||||||
Foreign exchange rate changes | 104 | ||||||||
Balance as of December 31, 2013 | $ | 3,016 | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
NOTE 10: Commitments and Contingencies | |||||
Commitments | |||||
As of December 31, 2013, the Company had outstanding purchase orders totaling $3,470,000 to purchase inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate to expected sales in 2014. | |||||
The Company conducts certain of its operations in leased facilities. These lease agreements expire at various dates through 2021 and are accounted for as operating leases. Certain of these leases contain renewal options, retirement obligations, escalation clauses, rent holidays, and leasehold improvement incentives. Annual rental expense totaled $5,772,000 in 2013, $5,806,000 in 2012, and $5,557,000 in 2011. Future minimum rental payments under these agreements are as follows (in thousands): | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 5,560 | |||
2015 | 4,259 | ||||
2016 | 2,480 | ||||
2017 | 1,416 | ||||
2018 | 775 | ||||
Thereafter | 2,153 | ||||
$ | 16,643 | ||||
The Company owns buildings adjacent to its corporate headquarters that are currently occupied with tenants who have lease agreements that expire at various dates through 2021. Annual rental income totaled $676,000 in 2013, $854,000 in 2012, and $791,000 in 2011. Rental income and related expenses are included in “Other income (expense)” on the Consolidated Statements of Operations. Future minimum rental receipts under non-cancelable lease agreements are as follows (in thousands): | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 1,408 | |||
2015 | 1,658 | ||||
2016 | 1,660 | ||||
2017 | 1,415 | ||||
2018 | 1,009 | ||||
Thereafter | 2,451 | ||||
$ | 9,601 | ||||
Contingencies | |||||
In May 2008, the Company filed a complaint against MvTec Software GmbH, MvTec LLC, and Fuji America Corporation in the United States District Court for the District of Massachusetts alleging infringement of certain patents owned by the Company. This matter is ongoing. | |||||
In May 2009, the Company pre-filed a complaint with the United States International Trade Commission (ITC) pursuant to Section 337 of the Tariff Act of 1930, as amended, 19 U.S.C. §1337, against MvTec Software GmbH, MvTec LLC, Fuji America, and several other respondents alleging unfair methods of competition and unfair acts in the unlawful importation into the United States, sale for importation, or sale within the United States after importation. By this filing, the Company requested the ITC to investigate the Company’s contention that certain machine vision software, machine vision systems, and products containing the same infringe, and respondents directly infringe and/or actively induce and/or contribute to the infringement in the United States, of one or more of the Company’s U.S. patents. In July 2009, the ITC issued an order that it would institute an investigation based upon the Company’s assertions. In September 2009, the Company reached a settlement with two of the respondents, and in December 2009, the Company reached a settlement with five additional respondents. In March 2010, the Company reached a settlement with respondent Fuji Machine Manufacturing Co., Ltd. and its subsidiary Fuji America Corporation. These settlements did not have a material impact on the Company’s financial results. An ITC hearing was held in May 2010. In July 2010, the Administrative Law Judge issued an initial determination finding two of the Company’s patents invalid and that respondents did not infringe the patents-at-issue. In September 2010, the ITC issued a notice that it would review the initial determination of the Administrative Law Judge. The ITC issued its Final Determination in November 2010 in which it determined to modify-in-part and affirm-in-part the Administrative Law Judge’s determination, and terminate the investigation with a finding of no violation of Section 337 of the Tariff Act of 1930 (as amended 19 U.S.C. §1337). The Company has filed an appeal of the decision with the United States Court of Appeals for the Federal Circuit. An oral hearing before the United States Court of Appeals occurred in February 2012. In December 2013, the Federal Circuit affirmed the ITC’s finding of non-infringement, but did not address the ITC’s finding regarding validity. This matter is ongoing. | |||||
In March 2013, the Company filed a lawsuit against Microscan Systems, Inc. (“Microscan”) and Code Corporation in the United States District Court for the Southern District of New York alleging that Microscan’s Mobile Hawk handheld imager infringes U.S. Patent 7,874,487 owned by the Company. The lawsuit seeks to prohibit Code Corporation from manufacturing the product, and Microscan from selling and distributing the product. The Company is also seeking monetary damages resulting from the alleged infringement. Both parties have filed motions for summary judgment and a hearing on these motions was held in October 2013. Trial was originally scheduled for October 2013, but has been moved to April 2014. This matter is ongoing. | |||||
The Company cannot predict the outcome of the above-referenced pending matters and an adverse resolution of these lawsuits could have a material adverse effect on the Company’s financial position, liquidity, results of operations, and/or indemnification obligations. In addition, various other 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 incidental 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. | |||||
Guarantees
Guarantees | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Guarantees [Abstract] | ' | ||||||
Guarantees | ' | ||||||
NOTE 11: Guarantees | |||||||
In the ordinary course of business, the Company enters into guarantee contracts with certain customers, generally in the Company’s Surface Inspection Systems Division (SISD) business. These guarantees are collateralized by standby letters of credit (LOC) which can be grouped into three categories: (1) bank guarantees which may require the Company to return a customer’s initial payment if the Company cannot deliver the order; (2) warranty bonds which may require the Company to resolve warranty issues within a specified time period; and (3) performance bonds which include a combination of the above two options. The type of LOC is generally determined based upon customer request and the guarantee amount represents the maximum potential amount of future payments. All of the Company’s LOCs are with the same counterparty and they do not contain any recourse provisions or collateral obligations. | |||||||
The following table details the letters of credit outstanding as of December 31, 2013 (in thousands): | |||||||
Type | Guarantee Amount | Guarantee due date | |||||
Performance Bonds | $ | 399 | Various from January 2014 to July 2016 | ||||
Bank Guarantees | 420 | Various from January 2014 to May 2014 | |||||
Warranty Bonds | 1,127 | Various from January 2014 to June 2016 | |||||
$ | 1,946 | ||||||
The Company evaluates losses for guarantees under accounting for contingencies. The Company considers such factors as the degree of probability that the Company would be required to satisfy the liability and the ability to make a reasonable estimate of the loss. To date, the Company has not incurred any losses as a result of these obligations, and therefore, has not recorded any liability related to such obligation in its financial statements. The fair value of the Company’s outstanding guarantees is immaterial for all periods presented. | |||||||
Indemnification_Provisions
Indemnification Provisions | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Indemnification Provisions | ' |
NOTE 12: Indemnification Provisions | |
Except as limited by Massachusetts law, the by-laws of the Company require it to indemnify current or former directors and officers of the Company against expenses incurred by them in connection with each proceeding in which he or she is involved as a result of serving or having served in certain capacities. Indemnification is not available with respect to a proceeding as to which it has been adjudicated that the person did not act in good faith in the reasonable belief that the action was in the best interests of the Company. The maximum potential amount of future payments the Company could be required to make under these provisions is unlimited. The Company has never incurred significant costs related to these indemnification provisions. As a result, the Company believes the estimated fair value of these provisions is minimal. | |
In the ordinary course of business, the Company may accept standard limited indemnification provisions in connection with the sale of its products, whereby it indemnifies its customers for certain direct damages incurred in connection with third-party patent or other intellectual property infringement claims with respect to the use of the Company’s products. The term of these indemnification provisions generally coincides with the customer’s use of the Company’s products. The maximum potential amount of future payments the Company could be required to make under these provisions is generally subject to fixed monetary limits. The Company has never incurred significant costs to defend lawsuits or settle claims related to these indemnification provisions. As a result, the Company believes the estimated fair value of these provisions is minimal. | |
In the ordinary course of business, the Company also accepts limited indemnification provisions from time to time, whereby it indemnifies customers for certain direct damages incurred in connection with bodily injury and property damage arising from the installation of the Company’s products. The term of these indemnification provisions generally coincides with the period of installation. The maximum potential amount of future payments the Company could be required to make under these provisions is generally limited and is likely recoverable under the Company’s insurance policies. As a result of this coverage, and the fact that the Company has never incurred significant costs to defend lawsuits or settle claims related to these indemnification provisions, the Company believes the estimated fair value of these provisions is minimal. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||
NOTE 13: Derivative Instruments | |||||||||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations including foreign currency exchange rate risk and interest rate risk. The Company currently mitigates certain foreign currency exchange rate risks with derivative instruments. The Company does not currently manage its interest rate risk with derivative instruments. | |||||||||||||||||||||
The Company faces exposure to foreign currency exchange rate fluctuations, as a significant portion of its revenues, expenses, assets, and liabilities are denominated in currencies other than the functional currencies of the Company’s subsidiaries or the reporting currency of the Company, which is the U.S. Dollar. The Company faces two types of foreign currency exchange rate exposures: | |||||||||||||||||||||
• | Transactional currency/functional currency exchange rate exposures from transactions that are denominated in currencies other than the functional currency of the subsidiary. These transactions gains and losses are reported on the Consolidated Statements of Operations as a component of “Foreign currency gain (loss).” | ||||||||||||||||||||
• | Functional currency/reporting currency exchange rate exposures from the revaluation of the assets and liabilities of our foreign subsidiaries, whose functional currency is generally their local currency, to the Company’s reporting currency, which is the U.S. Dollar. The net effect of these translation gains and losses are reported in “Accumulated other comprehensive loss” on the Consolidated Balance Sheets and also on the Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||
The Company’s foreign currency risk management strategy is principally designed to mitigate the potential financial impact of changes in the value of transactions and balances denominated in foreign currencies resulting from changes in foreign currency exchange rates. Currently, the Company enters into two types of hedges to manage this risk. The first are economic hedges which utilize foreign currency forward contracts with maturities of up to 45 days to manage the exposure to fluctuations in foreign currency exchange rates arising primarily from foreign-denominated receivables and payables. The gains and losses on these derivatives are largely offset by the changes in the fair value of the assets and liabilities being hedged. The second are cash flow hedges which utilize foreign currency forward contracts with maturities of up to 18 months to hedge specific forecasted transactions of the Company’s foreign subsidiaries with the goal of protecting our budgeted revenues and expenses against foreign currency exchange rate changes compared to our budgeted rates. | |||||||||||||||||||||
The Company had the following outstanding forward contracts that were entered into to mitigate foreign currency exchange rate risk (in thousands): | |||||||||||||||||||||
As of December 31, | As of December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Currency | Notional | USD | Notional | USD | |||||||||||||||||
Value | Equivalent | Value | Equivalent | ||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||
Japanese Yen | 625,000 | $ | 6,122 | - | $ | - | |||||||||||||||
Hungarian Forint | 570,175 | 2,603 | - | - | |||||||||||||||||
Singapore Dollar | 2,867 | 2,346 | - | - | |||||||||||||||||
British Pound | 613 | 1,010 | - | - | |||||||||||||||||
Canadian Dollar | 985 | 932 | - | - | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||
Euro | 2,828 | $ | 3,887 | 2,743 | $ | 3,590 | |||||||||||||||
Japanese Yen | 294,500 | 2,797 | - | - | |||||||||||||||||
British Pound | 1,100 | 1,820 | - | - | |||||||||||||||||
Chinese Renminbi | 9,000 | 1,467 | - | - | |||||||||||||||||
Taiwanese Dollar | 27,000 | 908 | - | - | |||||||||||||||||
Korean Won | 650,000 | 620 | - | - | |||||||||||||||||
Hungarian Forint | 123,000 | 568 | - | - | |||||||||||||||||
Brazilian Real | 250 | 106 | - | - | |||||||||||||||||
Information regarding the fair value of the forward contracts outstanding as of December 31, 2013 and December 31, 2012 were as follows (in thousands): | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Balance | Fair Value | Balance | Fair Value | ||||||||||||||||||
Sheet | Sheet | ||||||||||||||||||||
Location | December 31, | December 31, | Location | December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||
Cash flow hedge forward contracts | Prepaid | $ | 204 | $ | - | Accrued | $ | 98 | $ | - | |||||||||||
expenses and | expenses | ||||||||||||||||||||
other current | |||||||||||||||||||||
assets | |||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||
Economic hedge forward contracts | Prepaid | $ | 6 | $ | 44 | Accrued | $ | 24 | $ | 14 | |||||||||||
expenses and | expenses | ||||||||||||||||||||
other current | |||||||||||||||||||||
assets | |||||||||||||||||||||
Information regarding the effect of the derivative instruments, net of the underlying exposure, on the consolidated financial statements for each of the periods presented were as follows (in thousands): | |||||||||||||||||||||
Location in Financial | 2013 | 2012 | 2011 | ||||||||||||||||||
Statements | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||
Gains (losses) in Shareholders’ equity on derivatives (effective portion) | Accumulated other comprehensive income (loss) | $ | 104 | $ | - | $ | - | ||||||||||||||
Gains (losses) recognized in earnings on derivatives (ineffective portion and discontinued derivatives) | Foreign currency gain (loss) | $ | - | $ | - | $ | - | ||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||
Gains (losses) recognized in earnings | Foreign currency gain (loss) | $ | (193 | ) | $ | (722 | ) | $ | 34 | ||||||||||||
The following table provides the balances and changes in accumulated other comprehensive income (loss) related to derivative instruments for the indicated periods (in thousands): | |||||||||||||||||||||
Beginning balance December 31, 2012 | $ | - | |||||||||||||||||||
Amount reclassified to earnings | - | ||||||||||||||||||||
Net change | 104 | ||||||||||||||||||||
Ending balance December 31, 2013 | $ | 104 | |||||||||||||||||||
The net amount of existing gains and losses expected to be reclassified from accumulated other comprehensive income (loss) into earnings within the next twelve months is $111,000. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
NOTE 14: Shareholders’ Equity | |
Preferred Stock | |
The Company has 400,000 shares of authorized but unissued $.01 par value preferred stock. | |
Common Stock | |
Each outstanding share of common stock entitles the record holder to one vote on all matters submitted to a vote of the Company’s shareholders. Common shareholders are also entitled to dividends when and if declared by the Company’s Board of Directors. | |
In July 2013, the Company’s Board of Directors declared a two-for-one stock split, effected in the form of a stock dividend, on the shares of the Company’s common stock. Each shareholder of record on August 26, 2013, received an additional share of common stock for each share of common stock then held. The stock was distributed on September 16, 2013. The Company retained the current par value of $0.002 per share for all shares of common stock. All references in the financial statements to the number of shares outstanding, number of shares repurchased, per-share amounts, and stock option data related to the Company’s common stock have been restated to reflect the effect of the stock split for all periods presented. | |
Stockholders’ equity reflects the stock split by reclassifying from “Additional paid in capital” to “Common stock” an amount equal to the par value of the additional shares arising from the split. | |
Shareholder Rights Plan | |
The Company has adopted a Shareholder Rights Plan, the purpose of which is, among other things, to enhance the Board of Directors’ ability to protect shareholder interests and to ensure that shareholders receive fair treatment in the event any coercive takeover attempt of the Company is made in the future. The Shareholder Rights Plan could make it more difficult for a third party to acquire, or could discourage a third party from acquiring, the Company or a large block of the Company’s common stock. The following summary description of the Shareholder Rights Plan does not purport to be complete and is qualified in its entirety by reference to the Company’s Shareholder Rights Plan, which has been previously filed by the Company with the Securities and Exchange Commission as an exhibit to a Registration Statement on Form 8-A filed on December 5, 2008. | |
In connection with the adoption of the Shareholder Rights Plan, the Board of Directors of the Company declared a dividend distribution of one purchase right (a “Right”) for each outstanding share of common stock to shareholders of record as of the close of business on December 5, 2008. The Rights currently are not exercisable and are attached to and trade with the outstanding shares of common stock. Under the Shareholder Rights Plan, the Rights become exercisable if a person becomes an “acquiring person” by acquiring 15% or more of the outstanding shares of common stock or if a person commences a tender offer that would result in that person owning 15% or more of the common stock. If a person becomes an “acquiring person,” each holder of a Right (other than the acquiring person) would be entitled to purchase, at the then-current exercise price, such number of shares of the Company’s preferred stock which are equivalent to shares of common stock having twice the exercise price of the Right. If the Company is acquired in a merger or other business combination transaction after any such event, each holder of a Right would then be entitled to purchase, at the then-current exercise price, shares of the acquiring company’s common stock having a value of twice the exercise price of the Right. | |
Stock Repurchase Program | |
In April 2008, the Company’s Board of Directors authorized the repurchase of up to $50,000,000 of the Company’s common stock, primarily as a means to reduce the dilutive effect of employee stock options. As of December 31, 2013, the Company had repurchased a total of 3,578,000 shares at a cost of $50,000,000 under this program, including 827,000 shares at a cost of $20,000,000 in 2013. Stock repurchases under this program are now complete. In November 2011, the Company’s Board of Directors authorized the repurchase of up to $80,000,000 of the Company’s common stock to help reduce the dilutive effect of employee stock options. Purchases under this 2011 program began in the third quarter of 2013 upon completion of the 2008 program. In 2013, the Company repurchased a total of 892,000 shares at a cost of $27,908,000 under this 2011 program. The Company may repurchase shares under the 2011 program in future periods depending on a variety of factors, including, among other things, the impact of dilution from employee stock options, stock price, share availability, and cash requirements. | |
Dividends | |
The Company’s Board of Directors declared and paid a cash dividend of $0.05 per share in the first quarter of 2012, and $0.055 per share in the second, third, and fourth quarters of 2012. The Company also declared and paid an additional $0.055 dividend in the fourth quarter of 2012 that would normally be declared in the first quarter of 2013 in conjunction with the 2012 earnings release. A special dividend of $0.50 was also declared and paid in the fourth quarter of 2012 to replace expected quarterly dividend declarations for the next eight quarters, beginning in 2013. The additional $0.055 dividend and the $0.50 dividend were accelerated due to the anticipated increase in the federal tax on dividends paid after December 31, 2012. Due to the accelerated payments, no cash dividends were declared or paid in 2013. Future dividends will be declared at the discretion of the Company’s Board of Directors and will depend upon such factors as the Board deems relevant, including, among other things, the Company’s ability to generate positive cash flow from operations. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
NOTE 15: Stock-Based Compensation | |||||||||||||||||
Stock Option Plans | |||||||||||||||||
The Company’s share-based payments that result in compensation expense consist solely of stock option grants. As of December 31, 2013, the Company had 11,165,480 shares available for grant. Generally, stock options are granted with an exercise price equal to the market value of the Company’s common stock at the grant date, vest over four years based upon continuous service, and expire ten years from the grant date. | |||||||||||||||||
The following table summarizes the Company’s stock option activity for the year ended December 31, 2013: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||||||||
Exercise | Remaining | (in thousands) | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding as of December 31, 2012 | 7,118 | $ | 12.78 | ||||||||||||||
Granted | 1,740 | 21.47 | |||||||||||||||
Exercised | (2,445 | ) | 11.37 | ||||||||||||||
Forfeited or expired | (275 | ) | 16.39 | ||||||||||||||
Outstanding as of December 31, 2013 | 6,138 | $ | 15.65 | 7.2 | $ | 138,302 | |||||||||||
Exercisable as of December 31, 2013 | 1,678 | $ | 11.72 | 5.3 | $ | 44,386 | |||||||||||
Options vested or expected to vest at December 31, 2013 (1) | 5,541 | $ | 15.32 | 7.1 | $ | 126,670 | |||||||||||
-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: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free rate | 2 | % | 2 | % | 2.9 | % | |||||||||||
Expected dividend yield | - | % | 1.2 | % | 1.1 | % | |||||||||||
Expected volatility | 42 | % | 44 | % | 43 | % | |||||||||||
Expected term (in years) | 5.8 | 5.7 | 5.5 | ||||||||||||||
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. However, in the fourth quarter of 2012, the Company paid the full annual dividends for 2013 and 2014 in advance, and therefore, the dividend yield for those years has been adjusted to zero. At the time of the 2013 valuation, a dividend yield of 1.04% was estimated for future periods from 2015 through the expected life of the option. | |||||||||||||||||
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 value of stock options granted was $8.21 in 2013, $6.58 in 2012, and $6.16 in 2011. | |||||||||||||||||
The Company stratifies its employee population into two groups: one consisting of senior management and another consisting of all other employees. The Company currently expects that approximately 71% of its stock options granted to senior management and 69% of its options granted to all other employees will actually vest. Therefore, the Company currently applies an estimated forfeiture rate of 12% to all unvested options for senior management and a rate of 13% for all other employees. The Company revised its estimated forfeiture rates in the first quarter of 2013 and 2012 and the second quarter of 2011, resulting in an increase to compensation expense of $300,000 and $200,000 in 2013 and 2012, respectively, and a reduction to compensation expense of $80,000 in 2011. | |||||||||||||||||
The total stock-based compensation expense and the related income tax benefit recognized was $10,620,000 and $3,482,000, respectively, in 2013, $8,520,000 and $2,772,000, respectively, in 2012, and $8,068,000 and $2,660,000, respectively, in 2011. No compensation expense was capitalized in 2013, 2012, or 2011. | |||||||||||||||||
The following table details the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Product cost of revenue | $ | 747 | $ | 581 | $ | 456 | |||||||||||
Service cost of revenue | 177 | 161 | 172 | ||||||||||||||
Research, development, and engineering | 2,585 | 2,149 | 2,268 | ||||||||||||||
Selling, general, and administrative | 7,111 | 5,629 | 5,172 | ||||||||||||||
$ | 10,620 | $ | 8,520 | $ | 8,068 | ||||||||||||
The total intrinsic value of stock options exercised was $32,096,000 in 2013, $16,296,000 in 2012, and $20,108,000 in 2011. The total fair value of stock options vested was $9,717,000 in 2013, $9,362,000 in 2012, and $10,202,000 in 2011. | |||||||||||||||||
As of December 31, 2013, total unrecognized compensation expense related to non-vested stock options was $8,464,000, which is expected to be recognized over a weighted-average period of 1.18 years. | |||||||||||||||||
Employee_Savings_Plan
Employee Savings Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employee Savings Plan | ' |
NOTE 16: Employee Savings Plan | |
Under the Company’s Employee Savings Plan, a defined contribution plan, U.S. employees who have attained age 21 may contribute up to 25% of their salary on a pretax basis subject to the annual dollar limitations established by the Internal Revenue Service. The Company currently contributes fifty cents for each dollar an employee contributes, with a maximum contribution of 3% of an employee’s pretax salary. Company contributions vest 20%, 40%, 60%, and 100% after two, three, four, and five years of continuous employment with the Company, respectively. Company contributions totaled $1,423,000 in 2013, $1,362,000 in 2012, and $1,218,000 in 2011. Cognex stock is not an investment alternative and Company contributions are not made in the form of Cognex stock. |
Taxes
Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Taxes | ' | ||||||||||||
NOTE 17: Taxes | |||||||||||||
Domestic income before taxes was $29,576,000 in 2013, $36,754,000 in 2012, and $24,836,000 in 2011. Foreign income before taxes was $58,310,000 in 2013, $49,876,000 in 2012, and $62,281,000 in 2011. | |||||||||||||
The provision for income taxes consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 8,720 | $ | 11,284 | $ | 6,711 | |||||||
State | 721 | 789 | 806 | ||||||||||
Foreign | 3,167 | 5,790 | 10,519 | ||||||||||
12,608 | 17,863 | 18,036 | |||||||||||
Deferred: | |||||||||||||
Federal | 1,580 | 428 | (812 | ) | |||||||||
State | 119 | 36 | 34 | ||||||||||
Foreign | 6 | 205 | (10 | ) | |||||||||
1,705 | 669 | (788 | ) | ||||||||||
$ | 14,313 | $ | 18,532 | $ | 17,248 | ||||||||
A reconciliation of the United States federal statutory corporate tax rate to the Company’s effective tax rate was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax provision at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal benefit | 1 | 1 | 1 | ||||||||||
Foreign tax rate differential | (17 | ) | (14 | ) | (15 | ) | |||||||
Tax credit | (1 | ) | - | (1 | ) | ||||||||
Discrete tax events | (3 | ) | - | - | |||||||||
Other | 1 | (1 | ) | - | |||||||||
Income tax provision | 16 | % | 21 | % | 20 | % | |||||||
The effective tax rate for 2013 included the impact of the following discrete events: (1) a decrease in tax expense of $1,790,000 from the expiration of statutes of limitations for certain reserves for income tax uncertainties, (2) an increase in tax expense of $267,000 from the final true-up of the prior year’s tax accrual upon filing the actual tax returns, and (3) a decrease in tax expense of $555,000 from the retroactive application of the 2012 research and development credit. The American Taxpayer Relief Act of 2012 was passed by Congress and signed into law on January 1, 2013. The provisions under this law are to be applied retroactively to January 1, 2012. As a result of the law being signed on January 1, 2013, the financial impact of the retroactive provision was recorded as a discrete event in the first quarter of 2013. Interest and penalties included in these amounts was a decrease to tax expense of $854,000. | |||||||||||||
The effective tax rate for 2012 included the impact of the following discrete events: (1) a decrease in tax expense of $441,000 from the expiration of the statutes of limitations for certain reserves for income tax uncertainties, (2) an increase in tax expense of $101,000 from the write-down of a non-current deferred tax asset based upon a change in the tax rate in Japan, and (3) an increase in tax expense of $84,000 from the final true-up of the prior year’s tax accrual upon filing the actual tax returns. Interest and penalties included in these amounts was a decrease to tax expense of $58,000. | |||||||||||||
The effective tax rate for 2011 included the impact of the following discrete events: (1) a decrease in tax expense of $808,000 from the expiration of the statutes of limitations for certain reserves for income tax uncertainties, (2) a decrease in tax expense of $155,000 from the finalization of the Advanced Pricing Agreement between Japan and Ireland, partially offset by, (3) an increase in tax expense of $574,000 from the final true-up of the prior year’s tax accrual upon filing the actual tax returns, and (4) an increase in tax expense of $201,000 from the write-down of a noncurrent deferred tax asset based upon a change in the tax rate in Japan. Interest and penalties included in these amounts was a decrease to tax expense of $2,000. | |||||||||||||
The changes in the reserve for income taxes, excluding interest and penalties, were as follows (in thousands): | |||||||||||||
Balance of reserve for income taxes as of December 31, 2011 | $ | 4,148 | |||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods | 43 | ||||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 642 | ||||||||||||
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | (424 | ) | |||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | (385 | ) | |||||||||||
Balance of reserve for income taxes as of December 31, 2012 | 4,024 | ||||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods | 438 | ||||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,048 | ||||||||||||
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | - | ||||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | (1,102 | ) | |||||||||||
Balance of reserve for income taxes as of December 31, 2013 | $ | 4,408 | |||||||||||
The Company’s reserve for income taxes, including gross interest and penalties, was $4,765,000 and $5,216,000, as of December 31, 2013 and December 31, 2012, respectively, all of which was classified as non-current. The amount of gross interest and penalties included in these balances was $357,000 and $1,192,000 as of December 31, 2013 and December 31, 2012, respectively. If the Company’s tax positions were sustained or the statutes of limitations related to certain positions expired, these reserves would be released and income tax expense would be reduced in a future period. As a result of the expiration of certain statutes of limitations, there is a potential that a portion of these reserves could be released, which would decrease income tax expense by approximately $450,000 to $550,000 over the next twelve months. | |||||||||||||
The Company has defined its major tax jurisdictions as the United States, Ireland, China, and Japan, and within the United States, Massachusetts and California. Within the United States, the tax years 2010 through 2012 remain open to examination by various taxing authorities, while the tax years 2009 through 2012 remain open to examination by various taxing authorities in other jurisdictions in which the Company operates. The Internal Revenue Service is currently auditing the Company’s U.S. Federal tax returns for years 2010 and 2011. The Company believes it is adequately reserved for these years. | |||||||||||||
In 2010, the Company concluded its Competent Authority tax case with Japan. A settlement was finalized between Japan and Ireland as a transfer price adjustment and no finding of a permanent establishment against the Company in Japan was noted. This Competent Authority agreement closed the Company’s tax years 2002 through 2005 to future examination in Japan. In 2011, the Company finalized an Advanced Pricing Agreement (APA) with Japan that will cover tax years 2006 through 2011, with a requested extension to 2012. The Company believes it is adequately reserved for these open years. | |||||||||||||
Deferred tax assets consisted of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets: | |||||||||||||
Inventory and revenue related | $ | 5,614 | $ | 4,303 | |||||||||
Bonuses, commissions, and other compensation | 1,377 | 1,280 | |||||||||||
Other | 1,292 | 1,093 | |||||||||||
Gross current deferred tax assets | 8,283 | 6,676 | |||||||||||
Valuation allowance | (672 | ) | (307 | ) | |||||||||
Net current deferred tax assets | $ | 7,611 | $ | 6,369 | |||||||||
Noncurrent deferred tax assets: | |||||||||||||
Stock-based compensation expense | $ | 7,488 | $ | 7,242 | |||||||||
Federal and state tax credit carryforwards | 5,418 | 9,747 | |||||||||||
Depreciation | 1,831 | 1,819 | |||||||||||
Acquired completed technologies and other intangible assets | 835 | 1,119 | |||||||||||
Unrealized investment gains and losses | 601 | 1,075 | |||||||||||
Correlative tax relief and deferred interest related to reserves | 252 | 520 | |||||||||||
Capital loss carryforward | - | 373 | |||||||||||
Acquired in-process technology | - | 90 | |||||||||||
Other | 1,178 | 1,960 | |||||||||||
Gross noncurrent deferred tax assets | 17,603 | 23,945 | |||||||||||
Noncurrent deferred tax liabilities: | |||||||||||||
Nondeductible intangible assets | (3,662 | ) | (4,945 | ) | |||||||||
Other | (548 | ) | (2,171 | ) | |||||||||
Gross noncurrent deferred tax liabilities | (4,210 | ) | (7,116 | ) | |||||||||
Valuation allowance | (1,086 | ) | (1,182 | ) | |||||||||
Net noncurrent deferred tax assets | $ | 12,307 | $ | 15,647 | |||||||||
In 2013, the Company recorded a valuation allowance of $642,000, which includes an allowance of $628,000 for current-year state research and experimentation tax credits that were not considered to be realizable. Partially offsetting this increase was a decrease to a valuation allowance of $373,000 against certain capital losses that are no longer realizable. The total net change in the valuation allowance in the current year is an increase of $269,000. The state research and development tax credits may be utilized in a future period, and the reserve associated with these credits will be reversed in the period when it is determined that the credits can be utilized to offset future federal and state income tax liabilities. In addition, the Company had $5,050,000 of state research and experimentation tax credit carryforwards, net of federal tax, as of December 31, 2013, which will begin to expire in 2016. | |||||||||||||
If certain of the Company’s tax liabilities were paid, the Company would receive correlative tax relief in other jurisdictions. Accordingly, the Company has recognized a deferred tax asset in the amount of $252,000 as of December 31, 2013, which represents this correlative tax relief and deferred interest. | |||||||||||||
The Company recorded certain intangible assets as a result of the acquisition of DVT Corporation in 2005. The amortization of these intangible assets is not deductible for U.S. tax purposes. A deferred tax liability was established to reflect the federal and state liability associated with not deducting the acquisition-related amortization expenses. The balance of this liability was $3,662,000 as of December 31, 2013. | |||||||||||||
While the deferred tax assets, net of valuation allowance, are not assured of realization, management has evaluated the realizability of these deferred tax assets and has determined that it is more likely than not that these assets will be realized. In reaching this conclusion, we have evaluated certain relevant criteria including the Company’s historical profitability, current projections of future profitability, and the lives of tax credits, net operating losses, and other carryforwards. Should the Company fail to generate sufficient pretax profits in future periods, we may be required to establish valuation allowances against these deferred tax assets, resulting in a charge to income in the period of determination. | |||||||||||||
The Company does not provide U.S. income taxes on its foreign subsidiaries’ undistributed earnings, as they are deemed to be permanently reinvested outside the United States. Non-U.S. income taxes are, however, provided on those foreign subsidiaries’ undistributed earnings. Upon repatriation, the Company would provide the appropriate U.S. income taxes on these earnings, net of applicable foreign tax credits. It is not practicable to determine the income tax liability that might be incurred if the earnings were to be distributed. | |||||||||||||
The Company recorded $354,000 and $141,000 of other income in the first quarters of 2013 and 2012, respectively, upon the expiration of the statutes of limitations relating to tax holidays, during which time the Company collected value-added taxes from customers that were not required to be remitted to the government authority. | |||||||||||||
Cash paid for income taxes totaled $8,831,000 in 2013, $13,551,000 in 2012, and $18,389,000 in 2011. |
Weighted_Average_Shares
Weighted Average Shares | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Weighted Average Shares | ' | ||||||||||||
NOTE 18: Weighted Average Shares | |||||||||||||
In July 2013, the Company’s Board of Directors declared a two-for-one stock split of the Company’s common stock, which was effected through a stock dividend distributed on September 16, 2013. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures reflect this two-for-one stock split. | |||||||||||||
Weighted-average shares were calculated as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic weighted-average common shares outstanding | 86,946 | 85,666 | 83,718 | ||||||||||
Effect of dilutive stock options | 1,955 | 1,614 | 1,806 | ||||||||||
Diluted weighted-average common and common-equivalent shares outstanding | 88,901 | 87,280 | 85,524 | ||||||||||
Stock options to purchase 1,385,901, 1,790,911, and 2,003,000 shares of common stock, on a weighted-average basis, were outstanding in 2013, 2012, and 2011, respectively, but were not included in the calculation of dilutive net income per share because they were anti-dilutive. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Segment and Geographic Information | ' | ||||||||||||||||||||
NOTE 19: Segment and Geographic Information | |||||||||||||||||||||
The Company has two reportable segments: the Modular Vision Systems Division (MVSD) and the Surface Inspection Systems Division (SISD). MVSD develops, manufactures, and markets modular vision systems and ID products that are used to automate the manufacture and tracking of discrete items by locating, identifying, inspecting, and measuring them during the manufacturing or distribution process. SISD develops, manufactures, and markets surface inspection vision systems that are used to inspect surfaces of materials processed in a continuous fashion, such as metals, papers, nonwoven, plastics, and glass, to ensure there are no flaws or defects on the surfaces. Segments are determined based upon the way that management organizes its business for making operating decisions and assessing performance. The Company evaluates segment performance based upon income or loss from operations, excluding stock-based compensation expense. | |||||||||||||||||||||
The following table summarizes information about the Company’s segments (in thousands): | |||||||||||||||||||||
MVSD | SISD | Reconciling | Consolidated | ||||||||||||||||||
Items | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Product revenue | $ | 298,186 | $ | 28,600 | $ | 326,786 | |||||||||||||||
Service revenue | 9,465 | 17,635 | 27,100 | ||||||||||||||||||
Depreciation and amortization | 9,569 | 1,078 | $ | 455 | 11,102 | ||||||||||||||||
Goodwill and intangibles | 90,718 | 5,694 | - | 96,412 | |||||||||||||||||
Operating income | 99,383 | 8,990 | (22,005 | ) | 86,368 | ||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Product revenue | $ | 263,308 | $ | 32,280 | $ | 295,588 | |||||||||||||||
Service revenue | 10,388 | 18,303 | 28,691 | ||||||||||||||||||
Depreciation and amortization | 9,505 | 963 | $ | 390 | 10,858 | ||||||||||||||||
Goodwill and intangibles | 90,390 | 6,069 | - | 96,459 | |||||||||||||||||
Operating income | 89,378 | 11,941 | (17,912 | ) | 83,407 | ||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||
Product revenue | $ | 264,956 | $ | 32,354 | $ | 297,310 | |||||||||||||||
Service revenue | 8,717 | 15,887 | 24,604 | ||||||||||||||||||
Depreciation and amortization | 8,445 | 908 | $ | 403 | 9,756 | ||||||||||||||||
Goodwill and intangibles | 94,322 | 6,617 | - | 100,939 | |||||||||||||||||
Operating income | 94,201 | 10,301 | (19,147 | ) | 85,355 | ||||||||||||||||
Reconciling items consist of stock-based compensation expense and unallocated corporate expenses, which primarily include corporate headquarters costs, professional fees, and patent infringement litigation. Additional asset information by segment is not produced internally for use by the chief operating decision maker, and therefore, is not presented. Additional asset information is not provided because cash and investments are commingled and the segments share assets and resources in a number of locations around the world. | |||||||||||||||||||||
No customer accounted for greater than 10% of total revenue in 2013, 2012, or 2011. | |||||||||||||||||||||
The following table summarizes information about geographic areas (in thousands): | |||||||||||||||||||||
United States | Europe | Japan | Other | Total | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Product revenue | $ | 103,610 | $ | 104,497 | $ | 33,763 | $ | 84,916 | $ | 326,786 | |||||||||||
Service revenue | 13,505 | 6,012 | 4,103 | 3,480 | 27,100 | ||||||||||||||||
Long-lived assets | 118,619 | 5,059 | 1,732 | 10,276 | 135,686 | ||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Product revenue | $ | 87,877 | $ | 95,376 | $ | 38,151 | $ | 74,184 | $ | 295,588 | |||||||||||
Service revenue | 13,248 | 6,083 | 5,043 | 4,317 | 28,691 | ||||||||||||||||
Long-lived assets | 120,596 | 4,939 | 2,229 | 6,342 | 134,106 | ||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||
Product revenue | $ | 87,166 | $ | 100,984 | $ | 45,295 | $ | 63,865 | $ | 297,310 | |||||||||||
Service revenue | 10,796 | 6,343 | 4,147 | 3,318 | 24,604 | ||||||||||||||||
Long-lived assets | 121,174 | 10,811 | 2,773 | 952 | 135,710 | ||||||||||||||||
Revenue is presented geographically based upon the customer’s country of domicile. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | ||||||||||||||||||||||||
COGNEX CORPORATION – SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||||||
Additions | |||||||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Other | Balance at | |||||||||||||||||||
Beginning | Costs and | to Other | End of | ||||||||||||||||||||||
of Period | Expenses | Accounts | Period | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Reserve for Uncollectible Accounts: | |||||||||||||||||||||||||
2013 | $ | 1,131 | $ | 286 | $ | - | $ | (77 | ) (a) | $ | 14 | (b) | $ | 1,354 | |||||||||||
2012 | $ | 1,240 | $ | 63 | $ | - | $ | (184 | ) (a) | $ | 12 | (b) | $ | 1,131 | |||||||||||
2011 | $ | 1,235 | $ | 173 | $ | - | $ | (154 | ) (a) | $ | (14 | ) (b) | $ | 1,240 | |||||||||||
Reserve for Excess and Obsolete Inventory: | |||||||||||||||||||||||||
2013 | $ | 3,414 | $ | 2,368 | $ | - | $ | (1,009 | ) (a) | $ | 120 | (c) | $ | 4,893 | |||||||||||
2012 | $ | 4,359 | $ | 949 | $ | - | $ | (1,924 | ) (a) | $ | 30 | (c) | $ | 3,414 | |||||||||||
2011 | $ | 5,052 | $ | 1,078 | $ | - | $ | (1,688 | ) (a) | $ | (83 | ) (c) | $ | 4,359 | |||||||||||
Deferred Tax Valuation Allowance: | |||||||||||||||||||||||||
2013 | $ | 1,489 | $ | 642 | $ | - | $ | (373 | ) | - | $ | 1,758 | |||||||||||||
2012 | $ | 3,400 | $ | 546 | $ | - | $ | (2,457 | ) | - | $ | 1,489 | |||||||||||||
2011 | $ | 373 | $ | 3,027 | $ | - | $ | - | - | $ | 3,400 | ||||||||||||||
(a) | Specific write-offs | ||||||||||||||||||||||||
(b) | Collections of previously written-off accounts and foreign currency exchange rate changes | ||||||||||||||||||||||||
(c) | Foreign currency exchange rate changes |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
Nature of Operations | |
Cognex Corporation is a leading provider of machine vision products that capture and analyze visual information in order to automate tasks, primarily in manufacturing processes, where vision is required. | |
Use of Estimates in the Preparation of Financial Statements | ' |
Use of Estimates in the Preparation of Financial Statements | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the balance sheet date, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. Significant estimates and judgments include those related to revenue recognition, investments, accounts receivable, inventories, long-lived assets, goodwill, warranty obligations, contingencies, stock-based compensation, income taxes, derivative instruments, and purchase accounting. | |
Basis of Consolidation | ' |
Basis of Consolidation | |
The consolidated financial statements include the accounts of Cognex Corporation and its subsidiaries, all of which are wholly-owned. All intercompany accounts and transactions have been eliminated. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
The financial statements of the Company’s foreign subsidiaries, where the local currency is the functional currency, are translated using exchange rates in effect at the end of the year for assets and liabilities and average exchange rates during the year for results of operations. The resulting foreign currency translation adjustment, net of tax, is recorded in shareholders’ equity as other comprehensive loss. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
The Company applies a three-level valuation hierarchy for fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. Level 1 inputs to the valuation methodology utilize unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets and liabilities, quoted prices for identical and similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 inputs to the valuation methodology are unobservable inputs based upon management’s best estimate of the inputs that market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. A change to the level of an asset or liability within the fair value hierarchy is determined at the end of a reporting period. | |
Cash, Cash Equivalents, and Investments | ' |
Cash, Cash Equivalents, and Investments | |
Money market instruments purchased with original maturities of three months or less are classified as cash equivalents and are stated at amortized cost. Debt securities with original maturities greater than three months and remaining maturities of one year or less are classified as short-term investments, as well as equity securities that the Company intends to sell within one year. Debt securities with remaining maturities greater than one year, as well as a limited partnership interest, are classified as long-term investments. It is the Company’s policy to invest in debt securities with effective maturities that do not exceed ten years. | |
Debt securities with original maturities greater than three months are designated as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in shareholders’ equity as other comprehensive income (loss). Equity securities that are held for short periods of time with the intention of selling them in the near term are designated as trading and are reported at fair value, with unrealized gains and losses recorded in current operations. Realized gains and losses are included in current operations, along with the amortization of the discount or premium on debt securities arising at acquisition, and are calculated using the specific identification method. The Company’s limited partnership interest is accounted for using the cost method because the Company’s investment is less than 5% of the partnership and the Company has no influence over the partnership’s operating and financial policies. Furthermore, the investment does not have a readily determinable market value, and therefore, does not qualify for fair value accounting. | |
Management monitors the carrying value of its investments in debt securities and a limited partnership interest compared to their fair value to determine whether an other-than-temporary impairment has occurred. If the fair value of a debt security is less than its amortized cost, the Company assesses whether the impairment is other-than-temporary. In considering whether a decline in fair value is other-than-temporary, we consider many factors. In its evaluation of its debt securities, management considers the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. An impairment is considered other-than-temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security. If impairment is considered other-than-temporary based upon condition (i) or (ii) described above, the entire difference between the amortized cost and the fair value of the security is recognized in current operations. If an impairment is considered other-than-temporary based upon condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the security) will be recognized in current operations and the amount relating to all other factors will be recognized in other comprehensive income (loss). In its evaluation of its limited partnership interest, management considers the duration and extent of the decline, the length of the Company’s commitment to the investment, general economic trends, and specific communications with the General Partner. | |
Accounts Receivable | ' |
Accounts Receivable | |
The Company extends credit with various payment terms to customers based upon an evaluation of their financial condition. Accounts that are outstanding longer than the payment terms are considered to be past due. The Company establishes reserves against its accounts receivable for potential credit losses when it determines receivables are at risk for collection based upon the length of time the receivable has been outstanding, the customer’s current ability to pay its obligations to the Company, general economic and industry conditions, as well as various other factors. Receivables are written off against these reserves in the period they are determined to be uncollectible and payments subsequently received on previously written-off receivables are recorded as a reversal of the bad debt provision. | |
For certain customers in Japan, as part of its customary business practice, the Company accepts promissory notes of up to 180 days after the original credit terms expire. Promissory notes receivable totaled $1,372,000 and $1,211,000 as of December 31, 2013 and 2012, respectively, and are included in “Accounts receivable” on the Consolidated Balance Sheets. | |
Inventories | ' |
Inventories | |
Inventories are stated at the lower of cost or market. Cost is determined using standard costs, which approximates actual costs under the first-in, first-out (FIFO) method. The Company’s inventory is subject to rapid technological change or obsolescence. The Company reviews inventory quantities on hand and estimates excess and obsolescence exposures based upon assumptions about future demand, product transitions, and market conditions, and records reserves to reduce the carrying value of inventories to their net realizable value. If actual future demand is less than estimated, additional inventory write-downs would be required. | |
The Company generally disposes of obsolete inventory upon determination of obsolescence. The Company does not dispose of excess inventory immediately, due to the possibility that some of this inventory could be sold to customers as a result of differences between actual and forecasted demand. When inventory has been written down below cost, such reduced amount is considered the new cost basis for subsequent accounting purposes. As a result, the Company would recognize a higher than normal gross margin if the reserved inventory were subsequently sold. | |
Property, Plant, and Equipment | ' |
Property, Plant, and Equipment | |
Property, plant, and equipment are stated at cost and depreciated using the straight-line method over the assets’ estimated useful lives. Buildings’ useful lives are 39 years, building improvements’ useful lives are ten years, and the useful lives of computer hardware and software, manufacturing test equipment, and furniture and fixtures range from two to five years. Leasehold improvements are depreciated over the shorter of the estimated useful lives or the remaining terms of the leases. Maintenance and repairs are expensed when incurred; additions and improvements are capitalized. Upon retirement or disposition, the cost and related accumulated depreciation of the disposed assets are removed from the accounts, with any resulting gain or loss included in current operations. | |
Intangible Assets | ' |
Intangible Assets | |
Intangible assets are stated at cost and amortized over the assets’ estimated useful lives. Intangible assets are either amortized in relation to the relative cash flows anticipated from the intangible asset or using the straight-line method, depending upon facts and circumstances. The useful lives of distribution networks range from eleven to twelve years, of customer contracts and relationships from eight to twelve years, and of completed technologies and other intangible assets from three to eight years. The Company evaluates the possible impairment of long-lived assets, including intangible assets, whenever events or circumstances indicate the carrying value of the assets may not be recoverable. At the occurrence of a certain event or change in circumstances, the Company evaluates the potential impairment of an asset by estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the sum of the estimated future cash flows is less than the carrying value, the Company determines the amount of such impairment by comparing the fair value of the asset to its carrying value. The fair value is based upon the present value of the estimated future cash flows using a discount rate commensurate with the risks involved. | |
Goodwill | ' |
Goodwill | |
Goodwill is stated at cost. The Company evaluates the possible impairment of goodwill annually each fourth quarter and whenever events or circumstances indicate the carrying value of the goodwill may not be recoverable. For the past three years, the Company has performed a qualitative assessment of goodwill (commonly known as “step zero”) to determine whether further impairment testing is necessary. Factors that management considers in this assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management or strategy, and changes in the composition or carrying amount of net assets. In addition, management takes into consideration the goodwill valuation under the last quantitative analysis that was performed. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would proceed to a two-step process. Step one compares the fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount exceeds the fair value of the reporting unit, step two is required to measure the amount of impairment loss. Step two compares the implied fair value of the reporting unit goodwill to the carrying amount of the goodwill. | |
Warranty Obligations | ' |
Warranty Obligations | |
The Company warrants its products to be free from defects in material and workmanship for periods primarily ranging from six months to two years from the time of sale based upon the product being purchased and the terms of the customer arrangement. Warranty obligations are evaluated and recorded at the time of sale since it is probable that customers will make claims under warranties related to products that have been sold and the amount of these claims can be reasonably estimated based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or circumstances impacting product quality become known that would not have been taken into account using historical data. | |
Contingencies | ' |
Contingencies | |
Loss contingencies are accrued if the loss is probable and the amount of the loss can be reasonably estimated. Legal costs associated with potential loss contingencies, such as patent infringement matters, are expensed as incurred. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company’s product revenue is derived from the sale of machine vision systems, which can take the form of hardware with embedded software or software-only, and related accessories. The Company also generates revenue by providing maintenance and support, training, consulting, and installation services to its customers. Certain of the Company’s arrangements include multiple deliverables that provide the customer with a combination of products or services. In order to recognize revenue, the Company requires that a signed customer contract or purchase order is received, the fee from the arrangement is fixed or determinable, and collection of the resulting receivable is probable. Assuming that these criteria have been met, product revenue is generally recognized upon delivery, revenue from maintenance and support programs is recognized ratably over the program period, revenue from training and consulting services is recognized over the period that the services are provided, and revenue from installation services is recognized when the customer has signed off that the installation is complete. When customer-specified acceptance criteria exists that are substantive, product revenue is deferred until these criteria have been met. | |
The majority of the Company’s product offerings consist of hardware with embedded software. Under the revenue recognition rules for tangible products, the fee from a multiple-deliverable arrangement is allocated to each of the deliverables based upon their relative selling prices as determined by a selling-price hierarchy. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. A delivered item that does not qualify as a separate unit of accounting is combined with the other undelivered items in the arrangement and revenue is recognized for those combined deliverables as a single unit of accounting. The selling price used for each deliverable is based upon vendor-specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, and management’s best estimate of selling price (BESP) if neither VSOE nor TPE are available. VSOE is the price charged for a deliverable when it is sold separately. TPE is the price of the Company’s or any competitor’s largely interchangeable products or services in stand-alone sales to similarly-situated customers. BESP is the price at which the Company would sell the deliverable if it were sold regularly on a stand-alone basis, considering market conditions and entity-specific factors. | |
The selling prices used in the relative selling price allocation method for (1) certain of the Company’s services are based upon VSOE, (2) third-party accessories available from other vendors are based upon TPE, and (3) hardware products with embedded software, custom accessories, and services for which VSOE does not exist are based upon BESP. The Company does not believe TPE exists for these products and services because they are differentiated from competing products and services in terms of functionality and performance and there are no competing products or services that are largely interchangeable. For the Company’s Modular Vision Systems Division (MVSD), BESP has been established for each product line within each region, and for the Company’s Surface Inspection Systems Division (SISD), BESP has been established for each industry within each region. Management establishes BESP with consideration for market conditions, such as the impact of competition and geographic considerations, and entity-specific factors, such as the cost of the product and the division’s profit objectives. Management believes that BESP is reflective of reasonable pricing of that deliverable as if priced on a stand-alone basis. | |
Under the revenue recognition rules for software-only products, the fee from a multiple-deliverable arrangement is allocated to each of the undelivered elements based upon VSOE, which is limited to the price charged when the same deliverable is sold separately, with the residual value from the arrangement allocated to the delivered element. The portion of the fee that is allocated to each deliverable is then recognized as revenue when the criteria for revenue recognition are met with respect to that deliverable. If VSOE does not exist for all of the undelivered elements, then all revenue from the arrangement is typically deferred until all elements have been delivered to the customer. | |
The Company’s products are sold directly to end users, as well as to resellers including original equipment manufacturers (OEMs), distributors, and integrators. Revenue is recognized upon delivery of the product to the reseller, assuming all other revenue recognition criteria have been met. The Company establishes reserves against revenue for potential product returns, since the amount of future returns can be reasonably estimated based upon experience. These reserves have historically been immaterial. | |
Amounts billed to customers related to shipping and handling, as well as reimbursements received from customers for out-of-pocket expenses, are classified as revenue, with the associated costs included in cost of revenue. | |
Research and Development | ' |
Research and Development | |
Research and development costs for internally-developed or acquired products are expensed when incurred until technological feasibility has been established for the product. Thereafter, all software costs are capitalized until the product is available for general release to customers. The Company determines technological feasibility at the time the product reaches beta in its stage of development. Historically, the time incurred between beta and general release to customers has been short, and therefore, the costs have been insignificant. As a result, the Company has not capitalized software costs associated with internally-developed products. | |
Advertising Costs | ' |
Advertising Costs | |
Advertising costs are expensed as incurred and totaled $1,656,000 in 2013, $1,792,000 in 2012, and $2,157,000 in 2011. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company’s share-based payments that result in compensation expense consist solely of stock option grants. The Company has reserved a specific number of shares of its authorized but unissued shares for issuance upon the exercise of stock options. When a stock option is exercised, the Company issues new shares from this pool. The fair values of stock options are estimated on the grant date using a binomial lattice model. Management is responsible for determining the appropriate valuation model and estimating these fair values, and in doing so, considers a number of factors, including information provided by an outside valuation advisor. | |
The Company recognizes compensation expense using the graded attribution method, in which expense is recognized on a straight-line basis over the service period for each separately vesting portion of the stock option as if the option was, in substance, multiple awards. The amount of compensation expense recognized at the end of the vesting period is based upon the number of stock options for which the requisite service has been completed. No compensation expense is recognized for options that are forfeited for which the employee does not render the requisite service. The term “forfeitures” is distinct from “expirations” and represents only the unvested portion of the surrendered option. The Company applies estimated forfeiture rates to its unvested options to arrive at the amount of compensation expense that is expected to be recognized over the requisite service period. At the end of each separately vesting portion of an option, the expense that was recognized by applying the estimated forfeiture rate is compared to the expense that should be recognized based upon the employee’s service, and a credit to expense is recorded related to those employees that have not rendered the requisite service. | |
Taxes | ' |
Taxes | |
The Company recognizes a tax position in its financial statements when that tax position, based solely upon its technical merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statutes of limitations. Derecognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. | |
Only the portion of the liability that is expected to be paid within one year is classified as a current liability. As a result, liabilities expected to be resolved without the payment of cash (e.g., resolution due to the expiration of the statutes of limitations) or are not expected to be paid within one year are not classified as current. It is the Company’s policy to record estimated interest and penalties as income tax expense and tax credits as a reduction in income tax expense. | |
Deferred tax assets and liabilities are determined based upon the differences between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |
Sales tax in the United States and similar taxes in other jurisdictions that are collected from customers and remitted to government authorities are presented on a gross basis (i.e., a receivable from the customer with a corresponding payable to the government). Amounts collected from customers and retained by the Company during tax holidays are recognized as nonoperating income when earned. | |
Accounting Standards Update (ASU) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” | |
The amendments in ASU 2013-11 require companies to present an unrecognized tax benefit, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss (NOL) carryforward or a similar tax loss or tax credit carryforward, unless the uncertain tax position is not available to reduce, or would not be used to reduce, the NOL or carryforward under the tax law in the same jurisdiction; otherwise, the unrecognized tax benefit should be presented as a gross liability and should not net the unrecognized tax benefit with a deferred tax asset. As the Company does not currently have any NOL carryforwards, this guidance will most likely apply to research and development tax credit carryforwards. ASU 2013-11 is effective for annual periods beginning after December 15, 2013 and should be applied to all unrecognized tax benefits that exist as of the effective date. Companies may choose to apply this guidance retrospectively to each prior reporting period presented. Management is in the process of evaluating the impact of this update. | |
Net Income Per Share | ' |
Net Income Per Share | |
Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period plus potential dilutive common shares. Dilutive common equivalent shares consist of stock options and are calculated using the treasury stock method. Common equivalent shares do not qualify as participating securities. In periods where the Company records a net loss, potential common stock equivalents are not included in the calculation of diluted net loss per share. | |
Comprehensive Income | ' |
Comprehensive Income | |
Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss, net of tax, as of December 31, 2013 and December 31, 2012, consists of foreign currency translation adjustments of $28,630,000 and $28,712,000, respectively; a net unrealized loss on available-for-sale investments of $36,000 and a net unrealized gain on available-for-sale investments of $468,000, respectively; a net unrealized gain on derivative instruments of $104,000 and $0, respectively; and losses on currency swaps, net of gains on long-term intercompany loans of $1,271,000 and $1,271,000, respectively. | |
Amounts reclassified from accumulated other comprehensive income to investment income on the Consolidated Statements of Operations were net realized gains of $314,000 and $1,695,000 for 2013 and 2012, respectively. Net reclassifications were immaterial in 2011. | |
Concentrations of Risk | ' |
Concentrations of Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments, and trade receivables. The Company has certain domestic and foreign cash balances that exceed the insured limits set by the Federal Deposit Insurance Corporation (FDIC) in the United States and equivalent regulatory agencies in foreign countries. The Company primarily invests in investment-grade debt securities and has established guidelines relative to credit ratings, diversification, and maturities of its debt securities that maintain safety and liquidity. The Company has not experienced any significant realized losses on its debt securities. | |
The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. The Company has not experienced any significant losses related to the collection of its accounts receivable. | |
A significant portion of the Company’s MVSD product is manufactured by two third-party contractors. These contractors have agreed to provide Cognex with termination notification periods and last-time-buy rights, if and when that may be applicable. We rely upon these contractors to provide quality product and meet delivery schedules. We engage in extensive product quality programs and processes, including actively monitoring the performance of our third-party manufacturers. Certain key electronic components that are purchased from strategic suppliers, such as processors or imagers, are fundamental to the design of Cognex products. A disruption in the supply of these key components, such as a last-time-buy announcement, natural disaster, financial bankruptcy, or other event, may require us to purchase a significant amount of inventory at unfavorable prices resulting in lower gross margins and higher risk of carrying excess or obsolete inventory. If we are unable to secure adequate supply from alternative sources, we may have to redesign our products, which may lead to a delay in manufacturing and a possible loss of sales. | |
The Company currently mitigates certain foreign currency exchange rate risk with derivative instruments. Currently, the Company enters into foreign currency forward contracts with one counterparty. If this counterparty experiences financial difficulties, or is otherwise unable to honor the terms of the contract, the Company may experience material losses. | |
Derivative Instruments | ' |
Derivative Instruments | |
Derivative instruments are recorded on the Consolidated Balance Sheets at their fair value. Changes in the fair value of derivatives are recorded each period in current operations or in shareholders’ equity as other comprehensive income (loss), depending upon whether the derivative is designated as a hedge transaction and, if it is, the effectiveness of the hedge. At the inception of the contract, the Company designates foreign currency forward exchange contracts as either a cash flow hedge of certain forecasted foreign currency denominated sales and purchase transactions or as an economic hedge. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in shareholders’ equity as other comprehensive income (loss), and reclassified into earnings in the same period during which the hedged transaction affects earnings and in the same financial statement line item as that of the forecasted transaction. Cash flow hedges are evaluated for effectiveness quarterly. Any hedge ineffectiveness (which represents the amount by which the changes in the fair value of the derivative exceed the variability in the cash flows of the forecasted transaction) is recorded as “Foreign currency gain (loss)” on the Consolidated Statements of Operations in the period in which ineffectiveness is determined. Changes in the fair value of the Company’s economic hedges (not designated as a cash flow hedge) are reported in current earnings as “Foreign currency gain (loss)” on the Consolidated Statements of Operations. The cash flows from derivative instruments are presented in the same category on the Consolidated Statements of Cash Flows as the category for the cash flows from the hedged item. Generally, this accounting policy election results in cash flows related to derivative instruments being classified as an operating activity on the Consolidated Statements of Cash Flows. | |
The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific forecasted transactions. The Company also formally assesses (both at the hedge’s inception and on an ongoing basis) whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the fair value or cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. When it is determined that a derivative is not (or has ceased to be) highly effective as a hedge, the Company discontinues hedge accounting prospectively, as discussed below. | |
The Company discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (2) the derivative expires or is sold, terminated, or exercised; (3) it is no longer probable that the forecasted transaction will occur; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate or desired. When the Company discontinues hedge accounting because it is no longer probable that the forecasted transaction will occur in the originally expected period, the gain or loss on the derivative remains in accumulated other comprehensive income (loss) and is reclassified into earnings when the forecasted transaction affects earnings. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were accumulated in other comprehensive income (loss) will be recognized immediately in earnings. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will carry the derivative at its fair value on the Consolidated Balance Sheets, recognizing changes in the fair value in current earnings, unless it is designated in a new hedging relationship. | |
The Company recognizes all derivative instruments as either current assets or current liabilities at fair value on the Consolidated Balance Sheets. When the Company is engaged in more than one outstanding derivative contract with the same counterparty and also has a legally enforceable master netting agreement with that counterparty, the “net” mark-to-market exposure represents the netting of the positive and negative exposures with that counterparty. Accordingly, cash flow hedges are presented net on the Consolidated Balance Sheets. | |
Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities | ' |
Accounting Standards Update (ASU) 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” | |
The amendments in ASU 2013-01 require companies to present enhanced disclosure about certain financial instruments and derivative instruments that are offset in the balance sheet or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirement became effective, retrospectively, in the first quarter of our fiscal year ending December 31, 2013. However, as this ASU related only to presentation and disclosure it did not have an impact on our consolidated financial position, results of operations, or cash flows. | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | ' |
Accounting Standards Update (ASU) 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” | |
The amendments in ASU 2013-02 require companies to present information about amounts reclassified out of accumulated other comprehensive income (OCI) to net income, by component. The effect of significant reclassification adjustments being made out of accumulated OCI on the corresponding line items in net income must be presented when the item is reclassified in its entirety during one reporting period. While the new guidance in ASU 2013-12 changes the presentation of accumulated OCI, there are no changes to the components that are recognized in net income or OCI under current accounting guidance. This requirement became effective in the first quarter of our fiscal year ending December 31, 2013. However, prior period comparisons have been restated as well. | |
Presentation of an Unrecognized Tax Benefit When Net Operating Loss Carryforward, Similar Tax Loss, or Tax Credit Carryforward Exists | ' |
Accounting Standards Update (ASU) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” | |
The amendments in ASU 2013-11 require companies to present an unrecognized tax benefit, or a portion thereof, as a reduction to a deferred tax asset for a net operating loss (NOL) carryforward or a similar tax loss or tax credit carryforward, unless the uncertain tax position is not available to reduce, or would not be used to reduce, the NOL or carryforward under the tax law in the same jurisdiction; otherwise, the unrecognized tax benefit should be presented as a gross liability and should not net the unrecognized tax benefit with a deferred tax asset. As the Company does not currently have any NOL carryforwards, this guidance will most likely apply to research and development tax credit carryforwards. ASU 2013-11 is effective for annual periods beginning after December 15, 2013 and should be applied to all unrecognized tax benefits that exist as of the effective date. Companies may choose to apply this guidance retrospectively to each prior reporting period presented. Management is in the process of evaluating the impact of this update. | |
Internal Revenue Code | ' |
Internal Revenue Code Section 263(a) | |
In September 2013, the Treasury Department and the Internal Revenue Service released final regulations that provided guidance on the application of IRC Section 263(a) for amounts paid to acquire, produce, or improve tangible property, as well as the rules for materials and supplies and proposed regulations addressing dispositions and general asset accounts. The final regulations are generally effective for tax years beginning on or after January 1, 2014. Management is in the process of evaluating the impact of these new regulations. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||
The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 (in thousands): | |||||||||
Quoted Prices in | Significant Other | ||||||||
Active Markets | Observable | ||||||||
for Identical | Inputs (Level 2) | ||||||||
Assets (Level 1) | |||||||||
Assets: | |||||||||
Money market instruments | $ | 520 | $ | - | |||||
Corporate bonds | - | 218,949 | |||||||
Asset-backed securities | - | 75,379 | |||||||
Treasury bills | - | 73,666 | |||||||
Sovereign bonds | - | 27,833 | |||||||
Municipal bonds | - | 15,195 | |||||||
Agency bonds | - | 1,499 | |||||||
Cash flow hedge forward contracts | - | 204 | |||||||
Economic hedge forward contracts | - | 6 | |||||||
Liabilities: | |||||||||
Cash flow hedge forward contracts | - | 98 | |||||||
Economic hedge forward contracts | - | 24 | |||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents, and Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||
Components of Cash, Cash Equivalents, and Investments | ' | ||||||||||||||||||||||||
Cash, cash equivalents, and investments consisted of the following (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Cash | $ | 40,124 | $ | 34,986 | |||||||||||||||||||||
Cash equivalents | - | 5,098 | |||||||||||||||||||||||
Money market instruments | 520 | 5,076 | |||||||||||||||||||||||
Cash and cash equivalents | 40,644 | 45,160 | |||||||||||||||||||||||
Corporate bonds | 109,040 | 46,001 | |||||||||||||||||||||||
Asset-backed securities | 53,559 | 17,666 | |||||||||||||||||||||||
Sovereign bonds | 11,448 | 3,986 | |||||||||||||||||||||||
Municipal bonds | 9,276 | 16,224 | |||||||||||||||||||||||
Agency bonds | 1,499 | 7,482 | |||||||||||||||||||||||
Treasury bills | - | 5,997 | |||||||||||||||||||||||
Covered bonds | - | 5,618 | |||||||||||||||||||||||
Corporate stock | - | 2,131 | |||||||||||||||||||||||
Short-term investments | 184,822 | 105,105 | |||||||||||||||||||||||
Corporate bonds | 109,909 | 100,072 | |||||||||||||||||||||||
Treasury bills | 73,666 | 36,276 | |||||||||||||||||||||||
Asset-backed securities | 21,820 | 34,710 | |||||||||||||||||||||||
Sovereign bonds | 16,385 | 10,606 | |||||||||||||||||||||||
Municipal bonds | 5,919 | 17,846 | |||||||||||||||||||||||
Agency bonds | - | 29,441 | |||||||||||||||||||||||
Covered bonds | - | 5,564 | |||||||||||||||||||||||
Limited partnership interest (accounted for using cost method) | 1,956 | 3,740 | |||||||||||||||||||||||
Long-term investments | 229,655 | 238,255 | |||||||||||||||||||||||
$ | 455,121 | $ | 388,520 | ||||||||||||||||||||||
Summary of Available-for-Sale Investments | ' | ||||||||||||||||||||||||
The following tables summarize the Company’s available-for-sale investments as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Short-term: | |||||||||||||||||||||||||
Corporate bonds | $ | 108,824 | $ | 281 | $ | (65 | ) | $ | 109,040 | ||||||||||||||||
Asset-backed securities | 54,061 | 13 | (515 | ) | 53,559 | ||||||||||||||||||||
Sovereign bonds | 11,445 | 16 | (13 | ) | 11,448 | ||||||||||||||||||||
Municipal bonds | 9,258 | 18 | - | 9,276 | |||||||||||||||||||||
Agency bonds | 1,500 | - | (1 | ) | 1,499 | ||||||||||||||||||||
Long-term: | |||||||||||||||||||||||||
Corporate bonds | 109,457 | 550 | (98 | ) | 109,909 | ||||||||||||||||||||
Treasury bills | 73,801 | 4 | (139 | ) | 73,666 | ||||||||||||||||||||
Asset-backed securities | 21,866 | 11 | (57 | ) | 21,820 | ||||||||||||||||||||
Sovereign bonds | 16,376 | 35 | (26 | ) | 16,385 | ||||||||||||||||||||
Municipal bonds | 5,901 | 22 | (4 | ) | 5,919 | ||||||||||||||||||||
$ | 412,489 | $ | 950 | $ | (918) | $ | 412,521 | ||||||||||||||||||
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 December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Unrealized Loss | Unrealized Loss | Total | |||||||||||||||||||||||
Position For Less than | Position For Greater than | ||||||||||||||||||||||||
12 Months | 12 Months | ||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Treasury bills | $ | 61,966 | $ | (139 | ) | $ | - | $ | - | $ | 61,966 | $ | (139 | ) | |||||||||||
Corporate bonds | 58,258 | (153 | ) | 3,122 | (10 | ) | 61,380 | (163 | ) | ||||||||||||||||
Asset-backed securities | 35,138 | (111 | ) | 18,452 | (461 | ) | 53,590 | (572 | ) | ||||||||||||||||
Sovereign bonds | 15,434 | (39 | ) | - | - | 15,434 | (39 | ) | |||||||||||||||||
Municipal bonds | 2,581 | (4 | ) | - | - | 2,581 | (4 | ) | |||||||||||||||||
Agency bonds | 1,499 | (1 | ) | - | - | 1,499 | (1 | ) | |||||||||||||||||
$ | 174,876 | $ | (447 | ) | $ | 21,574 | $ | (471 | ) | $ | 196,450 | $ | (918 | ) | |||||||||||
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 December 31, 2013 (in thousands): | |||||||||||||||||||||||||
<1 Year | 1-2 Years | 2-3 Years | 3-4 Years | Total | |||||||||||||||||||||
Corporate bonds | $ | 109,040 | $ | 64,080 | $ | 42,686 | $ | 3,143 | $ | 218,949 | |||||||||||||||
Asset-backed securities | 53,559 | 14,917 | 6,903 | - | 75,379 | ||||||||||||||||||||
Treasury bills | - | 16,003 | 57,663 | - | 73,666 | ||||||||||||||||||||
Sovereign bonds | 11,448 | 8,810 | 7,575 | - | 27,833 | ||||||||||||||||||||
Municipal bonds | 9,276 | 1,269 | 2,754 | 1,896 | 15,195 | ||||||||||||||||||||
Agency bonds | 1,499 | - | - | - | 1,499 | ||||||||||||||||||||
$ | 184,822 | $ | 105,079 | $ | 117,581 | $ | 5,039 | $ | 412,521 | ||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
Inventories consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 13,101 | $ | 12,667 | |||||
Work-in-process | 4,472 | 4,193 | |||||||
Finished goods | 8,121 | 9,322 | |||||||
$ | 25,694 | $ | 26,182 | ||||||
Property_Plant_and_Equipment_T
Property, Plant, and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Components of Property, Plant, and Equipment | ' | ||||||||
Property, plant, and equipment consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Land | $ | 3,951 | $ | 3,951 | |||||
Buildings | 18,371 | 18,371 | |||||||
Building improvements | 15,711 | 13,186 | |||||||
Leasehold improvements | 5,185 | 4,925 | |||||||
Computer hardware and software | 29,353 | 26,907 | |||||||
Manufacturing test equipment | 14,715 | 12,876 | |||||||
Furniture and fixtures | 3,917 | 3,790 | |||||||
91,203 | 84,006 | ||||||||
Less: accumulated depreciation | (54,067 | ) | (49,186 | ) | |||||
$ | 37,136 | $ | 34,820 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Amortized Intangible Assets | ' | ||||||||||||
Amortized intangible assets consisted of the following (in thousands): | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Value | Value | ||||||||||||
Distribution networks | $ | 38,060 | $ | 28,479 | $ | 9,581 | |||||||
Customer contracts and relationships | 6,690 | 5,661 | 1,029 | ||||||||||
Completed technologies | 4,420 | 407 | 4,013 | ||||||||||
Other | 370 | 270 | 100 | ||||||||||
Balance as of December 31, 2013 | $ | 49,540 | $ | 34,817 | $ | 14,723 | |||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Value | Value | ||||||||||||
Distribution networks | $ | 38,060 | $ | 25,193 | $ | 12,867 | |||||||
Customer contracts and relationships | 6,690 | 5,310 | 1,380 | ||||||||||
Completed technologies | 670 | 311 | 359 | ||||||||||
Other | 370 | 206 | 164 | ||||||||||
Balance as of December 31, 2012 | $ | 45,790 | $ | 31,020 | $ | 14,770 | |||||||
Estimated Amortization Expense Succeeding Fiscal Years | ' | ||||||||||||
Estimated amortization expense for each of the five succeeding fiscal years and thereafter is as follows (in thousands): | |||||||||||||
Year Ending December 31, | Amount | ||||||||||||
2014 | $ | 4,213 | |||||||||||
2015 | 4,366 | ||||||||||||
2016 | 3,427 | ||||||||||||
2017 | 1,617 | ||||||||||||
2018 | 913 | ||||||||||||
Thereafter | 187 | ||||||||||||
$ | 14,723 | ||||||||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Changes in Carrying Value of Goodwill | ' | ||||||||||||
The changes in the carrying value of goodwill were as follows (in thousands): | |||||||||||||
MVSD | SISD | Consolidated | |||||||||||
Balance as of December 31, 2011 | $ | 77,556 | $ | 4,473 | $ | 82,029 | |||||||
Foreign currency exchange rate changes | (168 | ) | (172 | ) | (340 | ) | |||||||
Balance as of December 31, 2012 | 77,388 | 4,301 | 81,689 | ||||||||||
Foreign currency exchange rate changes | - | - | - | ||||||||||
Balance as of December 31, 2013 | $ | 77,388 | $ | 4,301 | $ | 81,689 | |||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Constituents of Accrued Expenses | ' | ||||||||
Accrued expenses consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Company bonuses | $ | 6,880 | $ | 5,057 | |||||
Salaries, commissions, and payroll taxes | 6,111 | 5,563 | |||||||
Vacation | 4,598 | 4,237 | |||||||
Foreign retirement obligations | 3,726 | 3,487 | |||||||
Warranty obligations | 3,016 | 2,256 | |||||||
Japanese consumption taxes | 1,372 | 3,405 | |||||||
Other | 8,628 | 5,585 | |||||||
$ | 34,331 | $ | 29,590 | ||||||
Changes in Warranty Obligations | ' | ||||||||
The changes in the warranty obligation were as follows (in thousands): | |||||||||
Balance as of December 31, 2011 | $ | 2,097 | |||||||
Provisions for warranties issued during the period | 1,725 | ||||||||
Fulfillment of warranty obligations | (1,609 | ) | |||||||
Foreign exchange rate changes | 43 | ||||||||
Balance as of December 31, 2012 | 2,256 | ||||||||
Provisions for warranties issued during the period | 2,770 | ||||||||
Fulfillment of warranty obligations | (2,114 | ) | |||||||
Foreign exchange rate changes | 104 | ||||||||
Balance as of December 31, 2013 | $ | 3,016 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Rental Payments Under Lease Agreements | ' | ||||
Future minimum rental payments under these agreements are as follows (in thousands): | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 5,560 | |||
2015 | 4,259 | ||||
2016 | 2,480 | ||||
2017 | 1,416 | ||||
2018 | 775 | ||||
Thereafter | 2,153 | ||||
$ | 16,643 | ||||
Future Minimum Rental Receipts Under Non - Cancelable Lease Agreements | ' | ||||
Future minimum rental receipts under non-cancelable lease agreements are as follows (in thousands): | |||||
Year Ending December 31, | Amount | ||||
2014 | $ | 1,408 | |||
2015 | 1,658 | ||||
2016 | 1,660 | ||||
2017 | 1,415 | ||||
2018 | 1,009 | ||||
Thereafter | 2,451 | ||||
$ | 9,601 | ||||
Guarantees_Tables
Guarantees (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Guarantees [Abstract] | ' | ||||||
Details of Letters of Credit Outstanding | ' | ||||||
The following table details the letters of credit outstanding as of December 31, 2013 (in thousands): | |||||||
Type | Guarantee Amount | Guarantee due date | |||||
Performance Bonds | $ | 399 | Various from January 2014 to July 2016 | ||||
Bank Guarantees | 420 | Various from January 2014 to May 2014 | |||||
Warranty Bonds | 1,127 | Various from January 2014 to June 2016 | |||||
$ | 1,946 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Outstanding Forward Contracts | ' | ||||||||||||||||||||
The Company had the following outstanding forward contracts that were entered into to mitigate foreign currency exchange rate risk (in thousands): | |||||||||||||||||||||
As of December 31, | As of December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Currency | Notional | USD | Notional | USD | |||||||||||||||||
Value | Equivalent | Value | Equivalent | ||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||
Japanese Yen | 625,000 | $ | 6,122 | - | $ | - | |||||||||||||||
Hungarian Forint | 570,175 | 2,603 | - | - | |||||||||||||||||
Singapore Dollar | 2,867 | 2,346 | - | - | |||||||||||||||||
British Pound | 613 | 1,010 | - | - | |||||||||||||||||
Canadian Dollar | 985 | 932 | - | - | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||
Euro | 2,828 | $ | 3,887 | 2,743 | $ | 3,590 | |||||||||||||||
Japanese Yen | 294,500 | 2,797 | - | - | |||||||||||||||||
British Pound | 1,100 | 1,820 | - | - | |||||||||||||||||
Chinese Renminbi | 9,000 | 1,467 | - | - | |||||||||||||||||
Taiwanese Dollar | 27,000 | 908 | - | - | |||||||||||||||||
Korean Won | 650,000 | 620 | - | - | |||||||||||||||||
Hungarian Forint | 123,000 | 568 | - | - | |||||||||||||||||
Brazilian Real | 250 | 106 | - | - | |||||||||||||||||
Fair Value of Forward Contracts Outstanding | ' | ||||||||||||||||||||
Information regarding the fair value of the forward contracts outstanding as of December 31, 2013 and December 31, 2012 were as follows (in thousands): | |||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
Balance | Fair Value | Balance | Fair Value | ||||||||||||||||||
Sheet | Sheet | ||||||||||||||||||||
Location | December 31, | December 31, | Location | December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||
Cash flow hedge forward contracts | Prepaid | $ | 204 | $ | - | Accrued | $ | 98 | $ | - | |||||||||||
expenses and | expenses | ||||||||||||||||||||
other current | |||||||||||||||||||||
assets | |||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||
Economic hedge forward contracts | Prepaid | $ | 6 | $ | 44 | Accrued | $ | 24 | $ | 14 | |||||||||||
expenses and | expenses | ||||||||||||||||||||
other current | |||||||||||||||||||||
assets | |||||||||||||||||||||
Effect of the Derivative Instruments Net of the Underlying Exposure | ' | ||||||||||||||||||||
Information regarding the effect of the derivative instruments, net of the underlying exposure, on the consolidated financial statements for each of the periods presented were as follows (in thousands): | |||||||||||||||||||||
Location in Financial | 2013 | 2012 | 2011 | ||||||||||||||||||
Statements | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||
Gains (losses) in Shareholders’ equity on derivatives (effective portion) | Accumulated other comprehensive income (loss) | $ | 104 | $ | - | $ | - | ||||||||||||||
Gains (losses) recognized in earnings on derivatives (ineffective portion and discontinued derivatives) | Foreign currency gain (loss) | $ | - | $ | - | $ | - | ||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||
Gains (losses) recognized in earnings | Foreign currency gain (loss) | $ | (193 | ) | $ | (722 | ) | $ | 34 | ||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) Related to Derivative Instruments | ' | ||||||||||||||||||||
The following table provides the balances and changes in accumulated other comprehensive income (loss) related to derivative instruments for the indicated periods (in thousands): | |||||||||||||||||||||
Beginning balance December 31, 2012 | $ | - | |||||||||||||||||||
Amount reclassified to earnings | - | ||||||||||||||||||||
Net change | 104 | ||||||||||||||||||||
Ending balance December 31, 2013 | $ | 104 | |||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following table summarizes the Company’s stock option activity for the year ended December 31, 2013: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
(in thousands) | Average | Average | Intrinsic Value | ||||||||||||||
Exercise | Remaining | (in thousands) | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding as of December 31, 2012 | 7,118 | $ | 12.78 | ||||||||||||||
Granted | 1,740 | 21.47 | |||||||||||||||
Exercised | (2,445 | ) | 11.37 | ||||||||||||||
Forfeited or expired | (275 | ) | 16.39 | ||||||||||||||
Outstanding as of December 31, 2013 | 6,138 | $ | 15.65 | 7.2 | $ | 138,302 | |||||||||||
Exercisable as of December 31, 2013 | 1,678 | $ | 11.72 | 5.3 | $ | 44,386 | |||||||||||
Options vested or expected to vest at December 31, 2013 (1) | 5,541 | $ | 15.32 | 7.1 | $ | 126,670 | |||||||||||
-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: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free rate | 2 | % | 2 | % | 2.9 | % | |||||||||||
Expected dividend yield | - | % | 1.2 | % | 1.1 | % | |||||||||||
Expected volatility | 42 | % | 44 | % | 43 | % | |||||||||||
Expected term (in years) | 5.8 | 5.7 | 5.5 | ||||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||
The following table details the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Product cost of revenue | $ | 747 | $ | 581 | $ | 456 | |||||||||||
Service cost of revenue | 177 | 161 | 172 | ||||||||||||||
Research, development, and engineering | 2,585 | 2,149 | 2,268 | ||||||||||||||
Selling, general, and administrative | 7,111 | 5,629 | 5,172 | ||||||||||||||
$ | 10,620 | $ | 8,520 | $ | 8,068 | ||||||||||||
Taxes_Tables
Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Constituents of Provision for Income Taxes | ' | ||||||||||||
The provision for income taxes consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 8,720 | $ | 11,284 | $ | 6,711 | |||||||
State | 721 | 789 | 806 | ||||||||||
Foreign | 3,167 | 5,790 | 10,519 | ||||||||||
12,608 | 17,863 | 18,036 | |||||||||||
Deferred: | |||||||||||||
Federal | 1,580 | 428 | (812 | ) | |||||||||
State | 119 | 36 | 34 | ||||||||||
Foreign | 6 | 205 | (10 | ) | |||||||||
1,705 | 669 | (788 | ) | ||||||||||
$ | 14,313 | $ | 18,532 | $ | 17,248 | ||||||||
Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate | ' | ||||||||||||
A reconciliation of the United States federal statutory corporate tax rate to the Company’s effective tax rate was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax provision at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal benefit | 1 | 1 | 1 | ||||||||||
Foreign tax rate differential | (17 | ) | (14 | ) | (15 | ) | |||||||
Tax credit | (1 | ) | - | (1 | ) | ||||||||
Discrete tax events | (3 | ) | - | - | |||||||||
Other | 1 | (1 | ) | - | |||||||||
Income tax provision | 16 | % | 21 | % | 20 | % | |||||||
Changes in the Reserve for Income Taxes, Excluding Interest and Penalties | ' | ||||||||||||
The changes in the reserve for income taxes, excluding interest and penalties, were as follows (in thousands): | |||||||||||||
Balance of reserve for income taxes as of December 31, 2011 | $ | 4,148 | |||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods | 43 | ||||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 642 | ||||||||||||
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | (424 | ) | |||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | (385 | ) | |||||||||||
Balance of reserve for income taxes as of December 31, 2012 | 4,024 | ||||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods | 438 | ||||||||||||
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,048 | ||||||||||||
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | - | ||||||||||||
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | (1,102 | ) | |||||||||||
Balance of reserve for income taxes as of December 31, 2013 | $ | 4,408 | |||||||||||
Constituents of Deferred Tax Assets | ' | ||||||||||||
Deferred tax assets consisted of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets: | |||||||||||||
Inventory and revenue related | $ | 5,614 | $ | 4,303 | |||||||||
Bonuses, commissions, and other compensation | 1,377 | 1,280 | |||||||||||
Other | 1,292 | 1,093 | |||||||||||
Gross current deferred tax assets | 8,283 | 6,676 | |||||||||||
Valuation allowance | (672 | ) | (307 | ) | |||||||||
Net current deferred tax assets | $ | 7,611 | $ | 6,369 | |||||||||
Noncurrent deferred tax assets: | |||||||||||||
Stock-based compensation expense | $ | 7,488 | $ | 7,242 | |||||||||
Federal and state tax credit carryforwards | 5,418 | 9,747 | |||||||||||
Depreciation | 1,831 | 1,819 | |||||||||||
Acquired completed technologies and other intangible assets | 835 | 1,119 | |||||||||||
Unrealized investment gains and losses | 601 | 1,075 | |||||||||||
Correlative tax relief and deferred interest related to reserves | 252 | 520 | |||||||||||
Capital loss carryforward | - | 373 | |||||||||||
Acquired in-process technology | - | 90 | |||||||||||
Other | 1,178 | 1,960 | |||||||||||
Gross noncurrent deferred tax assets | 17,603 | 23,945 | |||||||||||
Noncurrent deferred tax liabilities: | |||||||||||||
Nondeductible intangible assets | (3,662 | ) | (4,945 | ) | |||||||||
Other | (548 | ) | (2,171 | ) | |||||||||
Gross noncurrent deferred tax liabilities | (4,210 | ) | (7,116 | ) | |||||||||
Valuation allowance | (1,086 | ) | (1,182 | ) | |||||||||
Net noncurrent deferred tax assets | $ | 12,307 | $ | 15,647 | |||||||||
Weighted_Average_Shares_Tables
Weighted Average Shares (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Calculation of Weighted-Average Shares | ' | ||||||||||||
Weighted-average shares were calculated as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic weighted-average common shares outstanding | 86,946 | 85,666 | 83,718 | ||||||||||
Effect of dilutive stock options | 1,955 | 1,614 | 1,806 | ||||||||||
Diluted weighted-average common and common-equivalent shares outstanding | 88,901 | 87,280 | 85,524 | ||||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Information About Segments | ' | ||||||||||||||||||||
The following table summarizes information about the Company’s segments (in thousands): | |||||||||||||||||||||
MVSD | SISD | Reconciling | Consolidated | ||||||||||||||||||
Items | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Product revenue | $ | 298,186 | $ | 28,600 | $ | 326,786 | |||||||||||||||
Service revenue | 9,465 | 17,635 | 27,100 | ||||||||||||||||||
Depreciation and amortization | 9,569 | 1,078 | $ | 455 | 11,102 | ||||||||||||||||
Goodwill and intangibles | 90,718 | 5,694 | - | 96,412 | |||||||||||||||||
Operating income | 99,383 | 8,990 | (22,005 | ) | 86,368 | ||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Product revenue | $ | 263,308 | $ | 32,280 | $ | 295,588 | |||||||||||||||
Service revenue | 10,388 | 18,303 | 28,691 | ||||||||||||||||||
Depreciation and amortization | 9,505 | 963 | $ | 390 | 10,858 | ||||||||||||||||
Goodwill and intangibles | 90,390 | 6,069 | - | 96,459 | |||||||||||||||||
Operating income | 89,378 | 11,941 | (17,912 | ) | 83,407 | ||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||
Product revenue | $ | 264,956 | $ | 32,354 | $ | 297,310 | |||||||||||||||
Service revenue | 8,717 | 15,887 | 24,604 | ||||||||||||||||||
Depreciation and amortization | 8,445 | 908 | $ | 403 | 9,756 | ||||||||||||||||
Goodwill and intangibles | 94,322 | 6,617 | - | 100,939 | |||||||||||||||||
Operating income | 94,201 | 10,301 | (19,147 | ) | 85,355 | ||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ' | ||||||||||||||||||||
The following table summarizes information about geographic areas (in thousands): | |||||||||||||||||||||
United States | Europe | Japan | Other | Total | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Product revenue | $ | 103,610 | $ | 104,497 | $ | 33,763 | $ | 84,916 | $ | 326,786 | |||||||||||
Service revenue | 13,505 | 6,012 | 4,103 | 3,480 | 27,100 | ||||||||||||||||
Long-lived assets | 118,619 | 5,059 | 1,732 | 10,276 | 135,686 | ||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Product revenue | $ | 87,877 | $ | 95,376 | $ | 38,151 | $ | 74,184 | $ | 295,588 | |||||||||||
Service revenue | 13,248 | 6,083 | 5,043 | 4,317 | 28,691 | ||||||||||||||||
Long-lived assets | 120,596 | 4,939 | 2,229 | 6,342 | 134,106 | ||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||
Product revenue | $ | 87,166 | $ | 100,984 | $ | 45,295 | $ | 63,865 | $ | 297,310 | |||||||||||
Service revenue | 10,796 | 6,343 | 4,147 | 3,318 | 24,604 | ||||||||||||||||
Long-lived assets | 121,174 | 10,811 | 2,773 | 952 | 135,710 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Contractor | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Maximum maturities period of debt securities | '10 years | ' | ' |
Maximum investment of the company in partnership | 'Less than 5% | ' | ' |
Promissory notes receivable | $1,372,000 | $1,211,000 | ' |
Advertising costs | 1,656,000 | 1,792,000 | 2,157,000 |
Accumulated other comprehensive loss consists of foreign currency translation adjustments, net of tax | 28,630,000 | 28,712,000 | ' |
Net unrealized gain (loss) on available-for-sale investments, net of tax | -36,000 | 468,000 | ' |
Net unrealized gain on derivative instruments, net of tax | 104,000 | 0 | ' |
Net of gains on long-term intercompany loans, net of tax | 1,271,000 | 1,271,000 | ' |
Reclassification from accumulated other comprehensive income to investment income | $314,000 | $1,695,000 | ($181,000) |
Number of manufacture contractor | 2 | ' | ' |
Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Product warranty period | '2 years | ' | ' |
Maximum [Member] | Distribution Networks [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful estimated life, intangible assets | '12 years | ' | ' |
Maximum [Member] | Customer Contracts and Relationships [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful estimated life, intangible assets | '12 years | ' | ' |
Maximum [Member] | Completed Technologies and Other Intangible Assets [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful estimated life, intangible assets | '8 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Product warranty period | '6 months | ' | ' |
Minimum [Member] | Distribution Networks [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful estimated life, intangible assets | '11 years | ' | ' |
Minimum [Member] | Customer Contracts and Relationships [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful estimated life, intangible assets | '8 years | ' | ' |
Minimum [Member] | Completed Technologies and Other Intangible Assets [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful estimated life, intangible assets | '3 years | ' | ' |
Japan [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Expiration term of promissory notes | '180 days | ' | ' |
Buildings [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful lives | '39 years | ' | ' |
Building Improvements [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful lives | '10 years | ' | ' |
Computer Hardware and Software [Member] | Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful lives | '5 years | ' | ' |
Computer Hardware and Software [Member] | Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful lives | '2 years | ' | ' |
Manufacturing Test Equipment [Member] | Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful lives | '5 years | ' | ' |
Manufacturing Test Equipment [Member] | Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful lives | '2 years | ' | ' |
Furniture and Fixtures [Member] | Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful lives | '5 years | ' | ' |
Furniture and Fixtures [Member] | Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Useful lives | '2 years | ' | ' |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Money market instruments | $520 | $5,076 |
Financial assets at fair value | 412,521 | ' |
Corporate Bonds [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 218,949 | ' |
Asset-Backed Securities [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 75,379 | ' |
Treasury Bills [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 73,666 | ' |
Sovereign Bonds [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 27,833 | ' |
Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 15,195 | ' |
Agency Bonds [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 1,499 | ' |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets: | ' | ' |
Money market instruments | 520 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 218,949 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-Backed Securities [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 75,379 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Treasury Bills [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 73,666 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Sovereign Bonds [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 27,833 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 15,195 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Agency Bonds [Member] | ' | ' |
Assets: | ' | ' |
Financial assets at fair value | 1,499 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash Flow Hedge Forward Contracts [Member] | ' | ' |
Assets: | ' | ' |
Hedge forward contracts, Assets | 204 | ' |
Liabilities: | ' | ' |
Hedge forward contracts, Liabilities | 98 | ' |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Economic Hedge Forward Contracts [Member] | ' | ' |
Assets: | ' | ' |
Hedge forward contracts, Assets | 6 | ' |
Liabilities: | ' | ' |
Hedge forward contracts, Liabilities | $24 | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Other-than-temporary impairment loss | $0 | $0 | $0 |
Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Other-than-temporary impairment loss | 0 | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Other-than-temporary impairment loss | $0 | $0 | $0 |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents, and Investments - Components of Cash, Cash Equivalents, and Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Cash | $40,124,000 | $34,986,000 | ' | ' |
Cash equivalents | ' | 5,098,000 | ' | ' |
Money market instruments | 520,000 | 5,076,000 | ' | ' |
Cash and cash equivalents | 40,644,000 | 45,160,000 | 38,103,000 | 33,203,000 |
Short-term investments | 184,822,000 | 105,105,000 | ' | ' |
Limited partnership interest (accounted for using cost method) | 1,956,000 | 3,740,000 | ' | ' |
Long-term investments | 229,655,000 | 238,255,000 | ' | ' |
Total | 455,121,000 | 388,520,000 | ' | ' |
Corporate Bonds [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Short-term investments | 109,040,000 | 46,001,000 | ' | ' |
Long-term investments | 109,909,000 | 100,072,000 | ' | ' |
Asset-Backed Securities [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Short-term investments | 53,559,000 | 17,666,000 | ' | ' |
Long-term investments | 21,820,000 | 34,710,000 | ' | ' |
Sovereign Bonds [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Short-term investments | 11,448,000 | 3,986,000 | ' | ' |
Long-term investments | 16,385,000 | 10,606,000 | ' | ' |
Municipal Bonds [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Short-term investments | 9,276,000 | 16,224,000 | ' | ' |
Long-term investments | 5,919,000 | 17,846,000 | ' | ' |
Agency Bonds [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Short-term investments | 1,499,000 | 7,482,000 | ' | ' |
Long-term investments | ' | 29,441,000 | ' | ' |
Treasury Bills [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Short-term investments | ' | 5,997,000 | ' | ' |
Long-term investments | 73,666,000 | 36,276,000 | ' | ' |
Covered Bonds [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Short-term investments | ' | 5,618,000 | ' | ' |
Long-term investments | ' | 5,564,000 | ' | ' |
Corporate Stock [Member] | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Short-term investments | ' | $2,131,000 | ' | ' |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents, and Investments - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cash balance included foreign bank balance | $32,096,000 | $23,614,000 |
Gross realized gains on sale of investments | 508,000 | 1,990,000 |
Gross realized losses on sale of investments | 194,000 | 295,000 |
Maximum amount committed to invest in limited partnership | 20,500,000 | ' |
Contribution to limited partnership | 19,886,000 | ' |
Shares were trading investment were sold | 347,000 | 2,128,000 |
Cash distributions | 1,422,000 | ' |
Remaining amount of commitment in limited partnership | 614,000 | ' |
Investment expiration date | 31-Dec-15 | ' |
Number of contributions made during the period | 0 | ' |
Received a stock distribution | 362,000 | 2,193,000 |
Recorded a realized loss on stock distribution | 15,000 | 65,000 |
Carrying value of investment | 1,956,000 | 3,740,000 |
Estimated fair value of investment | 4,315,000 | ' |
Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Purchase of equity securities | ' | 2,136,000 |
Aggregate fair value of liquidated share | 1,429,000 | ' |
Realized loss | 702,000 | ' |
Net unrealized loss | ' | $5,000 |
Cash_Cash_Equivalents_and_Inve4
Cash, Cash Equivalents, and Investments - Summary of Available-for-Sale Investments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | $412,489 |
Gross Unrealized Gains | 950 |
Gross Unrealized Losses | -918 |
Fair Value | 412,521 |
Corporate Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value | 218,949 |
Corporate Bonds [Member] | Short-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 108,824 |
Gross Unrealized Gains | 281 |
Gross Unrealized Losses | -65 |
Fair Value | 109,040 |
Corporate Bonds [Member] | Long-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 109,457 |
Gross Unrealized Gains | 550 |
Gross Unrealized Losses | -98 |
Fair Value | 109,909 |
Asset-Backed Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value | 75,379 |
Asset-Backed Securities [Member] | Short-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 54,061 |
Gross Unrealized Gains | 13 |
Gross Unrealized Losses | -515 |
Fair Value | 53,559 |
Asset-Backed Securities [Member] | Long-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 21,866 |
Gross Unrealized Gains | 11 |
Gross Unrealized Losses | -57 |
Fair Value | 21,820 |
Sovereign Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value | 27,833 |
Sovereign Bonds [Member] | Short-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 11,445 |
Gross Unrealized Gains | 16 |
Gross Unrealized Losses | -13 |
Fair Value | 11,448 |
Sovereign Bonds [Member] | Long-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 16,376 |
Gross Unrealized Gains | 35 |
Gross Unrealized Losses | -26 |
Fair Value | 16,385 |
Municipal Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value | 15,195 |
Municipal Bonds [Member] | Short-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 9,258 |
Gross Unrealized Gains | 18 |
Fair Value | 9,276 |
Municipal Bonds [Member] | Long-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 5,901 |
Gross Unrealized Gains | 22 |
Gross Unrealized Losses | -4 |
Fair Value | 5,919 |
Agency Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value | 1,499 |
Agency Bonds [Member] | Short-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 1,500 |
Gross Unrealized Losses | -1 |
Fair Value | 1,499 |
Treasury Bills [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value | 73,666 |
Treasury Bills [Member] | Long-Term Investments [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost | 73,801 |
Gross Unrealized Gains | 4 |
Gross Unrealized Losses | -139 |
Fair Value | $73,666 |
Cash_Cash_Equivalents_and_Inve5
Cash, Cash Equivalents, and Investments - Gross Unrealized Losses and Fair Values for Available-for-Sale Investments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than 12 Months | $174,876 |
Unrealized Losses, Less than 12 Months | -447 |
Fair Value, Greater than 12 Months | 21,574 |
Unrealized Losses, Greater than 12 Months | -471 |
Total Fair Value | 196,450 |
Total Unrealized Losses | -918 |
Treasury Bills [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than 12 Months | 61,966 |
Unrealized Losses, Less than 12 Months | -139 |
Total Fair Value | 61,966 |
Total Unrealized Losses | -139 |
Corporate Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than 12 Months | 58,258 |
Unrealized Losses, Less than 12 Months | -153 |
Fair Value, Greater than 12 Months | 3,122 |
Unrealized Losses, Greater than 12 Months | -10 |
Total Fair Value | 61,380 |
Total Unrealized Losses | -163 |
Asset-Backed Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than 12 Months | 35,138 |
Unrealized Losses, Less than 12 Months | -111 |
Fair Value, Greater than 12 Months | 18,452 |
Unrealized Losses, Greater than 12 Months | -461 |
Total Fair Value | 53,590 |
Total Unrealized Losses | -572 |
Sovereign Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than 12 Months | 15,434 |
Unrealized Losses, Less than 12 Months | -39 |
Total Fair Value | 15,434 |
Total Unrealized Losses | -39 |
Municipal Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than 12 Months | 2,581 |
Unrealized Losses, Less than 12 Months | -4 |
Total Fair Value | 2,581 |
Total Unrealized Losses | -4 |
Agency Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fair Value, Less than 12 Months | 1,499 |
Unrealized Losses, Less than 12 Months | -1 |
Total Fair Value | 1,499 |
Total Unrealized Losses | ($1) |
Cash_Cash_Equivalents_and_Inve6
Cash, Cash Equivalents, and Investments - Effective Maturity Dates of Available-for-Sale Investments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 1 Year | $184,822 |
1-2 Years | 105,079 |
2-3 Years | 117,581 |
3-4 Years | 5,039 |
Fair Value | 412,521 |
Corporate Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 1 Year | 109,040 |
1-2 Years | 64,080 |
2-3 Years | 42,686 |
3-4 Years | 3,143 |
Fair Value | 218,949 |
Asset-Backed Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 1 Year | 53,559 |
1-2 Years | 14,917 |
2-3 Years | 6,903 |
Fair Value | 75,379 |
Treasury Bills [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
1-2 Years | 16,003 |
2-3 Years | 57,663 |
Fair Value | 73,666 |
Sovereign Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 1 Year | 11,448 |
1-2 Years | 8,810 |
2-3 Years | 7,575 |
Fair Value | 27,833 |
Municipal Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 1 Year | 9,276 |
1-2 Years | 1,269 |
2-3 Years | 2,754 |
3-4 Years | 1,896 |
Fair Value | 15,195 |
Agency Bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 1 Year | 1,499 |
Fair Value | $1,499 |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $13,101 | $12,667 |
Work-in-process | 4,472 | 4,193 |
Finished goods | 8,121 | 9,322 |
Inventories | $25,694 | $26,182 |
Property_Plant_and_Equipment_C
Property, Plant, and Equipment - Components of Property, Plant, and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and equipment, gross | $91,203 | $84,006 |
Less: accumulated depreciation | -54,067 | -49,186 |
Property, Plant and Equipment, Net, Total | 37,136 | 34,820 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and equipment, gross | 3,951 | 3,951 |
Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and equipment, gross | 18,371 | 18,371 |
Building Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and equipment, gross | 15,711 | 13,186 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and equipment, gross | 5,185 | 4,925 |
Computer Hardware and Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and equipment, gross | 29,353 | 26,907 |
Manufacturing Test Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and equipment, gross | 14,715 | 12,876 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and equipment, gross | $3,917 | $3,790 |
Property_Plant_and_Equipment_A
Property, Plant, and Equipment - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment [Abstract] | ' | ' |
Depreciated property, plant, and equipment | $1,616,000 | $4,307,000 |
Buildings include rental property | 5,750,000 | 5,750,000 |
Accumulated depreciation | $2,479,700 | $2,332,000 |
Intangible_Assets_Amortized_In
Intangible Assets - Amortized Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | $49,540 | $45,790 |
Accumulated Amortization | 34,817 | 31,020 |
Net Carrying Value | 14,723 | 14,770 |
Distribution Networks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 38,060 | 38,060 |
Accumulated Amortization | 28,479 | 25,193 |
Net Carrying Value | 9,581 | 12,867 |
Customer Contracts and Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 6,690 | 6,690 |
Accumulated Amortization | 5,661 | 5,310 |
Net Carrying Value | 1,029 | 1,380 |
Completed Technologies [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 4,420 | 670 |
Accumulated Amortization | 407 | 311 |
Net Carrying Value | 4,013 | 359 |
Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 370 | 370 |
Accumulated Amortization | 270 | 206 |
Net Carrying Value | $100 | $164 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Cost and related amortization finite lived intangible assets | ' | ' | $8,535,000 |
Payment done to purchase technology | $3,750,000 | $3,750,000 | ' |
Purchased Technologies [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Estimated useful life | '5 years | ' | ' |
Intangible_Assets_Estimated_Am
Intangible Assets - Estimated Amortization Expense Succeeding Fiscal Years (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
2014 | $4,213 | ' |
2015 | 4,366 | ' |
2016 | 3,427 | ' |
2017 | 1,617 | ' |
2018 | 913 | ' |
Thereafter | 187 | ' |
Net Carrying Value | $14,723 | $14,770 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Oct. 04, 2010 | Oct. 04, 2010 | |
Segment | MVSD [Member] | SISD [Member] | |
Goodwill [Line Items] | ' | ' | ' |
Number of reportable segments | 2 | ' | ' |
Fair value in excess to carrying value | ' | 208.00% | 119.00% |
Goodwill_Changes_in_Carrying_V
Goodwill - Changes in Carrying Value of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Goodwill, Beginning Balance | $82,029 | $81,689 |
Foreign currency exchange rate changes | -340 | ' |
Goodwill, Ending Balance | 81,689 | 81,689 |
MVSD [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Beginning Balance | 77,556 | 77,388 |
Foreign currency exchange rate changes | -168 | ' |
Goodwill, Ending Balance | 77,388 | 77,388 |
SISD [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Beginning Balance | 4,473 | 4,301 |
Foreign currency exchange rate changes | -172 | ' |
Goodwill, Ending Balance | $4,301 | $4,301 |
Accrued_Expenses_Constituents_
Accrued Expenses - Constituents of Accrued Expenses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Company bonuses | $6,880 | $5,057 |
Salaries, commissions, and payroll taxes | 6,111 | 5,563 |
Vacation | 4,598 | 4,237 |
Foreign retirement obligations | 3,726 | 3,487 |
Warranty obligations | 3,016 | 2,256 |
Japanese consumption taxes | 1,372 | 3,405 |
Other | 8,628 | 5,585 |
Accrued expenses | $34,331 | $29,590 |
Accrued_Expenses_Changes_in_Wa
Accrued Expenses - Changes in Warranty Obligations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Payables And Accruals [Abstract] | ' | ' |
Beginning Balance | $2,256 | $2,097 |
Provisions for warranties issued during the period | 2,770 | 1,725 |
Fulfillment of warranty obligations | -2,114 | -1,609 |
Foreign exchange rate changes | 104 | 43 |
Ending Balance | $3,016 | $2,256 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Patents | Respondent | Respondent | ||||
Leases [Abstract] | ' | ' | ' | ' | ' | ' |
Purchase order outstanding | ' | ' | ' | $3,470,000 | ' | ' |
Total annual rental expense | ' | ' | ' | 5,772,000 | 5,806,000 | 5,557,000 |
Operating lease expiration year | ' | ' | ' | '2021 | ' | ' |
Total annual rental income | ' | ' | ' | $676,000 | $854,000 | $791,000 |
Number of respondents with whom settlement reached | ' | 5 | 2 | ' | ' | ' |
Number of the company's patents found invalid | 2 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Rental Payments Under Lease Agreements (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Due [Abstract] | ' |
2014 | $5,560 |
2015 | 4,259 |
2016 | 2,480 |
2017 | 1,416 |
2018 | 775 |
Thereafter | 2,153 |
Total | $16,643 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Future Minimum Rental Receipts Under Non - Cancelable Lease Agreements (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Receivable [Abstract] | ' |
2014 | $1,408 |
2015 | 1,658 |
2016 | 1,660 |
2017 | 1,415 |
2018 | 1,009 |
Thereafter | 2,451 |
Total | $9,601 |
Guarantees_Additional_Informat
Guarantees - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Category | |
Guarantees [Abstract] | ' |
Number of categories of letters of credit | 3 |
Guarantees_Details_of_Letters_
Guarantees - Details of Letters of Credit Outstanding (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Guarantor Obligations [Line Items] | ' |
Guarantee Amount | $1,946 |
Performance Bonds [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Guarantee Amount | 399 |
Guarantee due date | 'Various from January 2014 to July 2016 |
Bank Guarantees [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Guarantee Amount | 420 |
Guarantee due date | 'Various from January 2014 to May 2014 |
Warranty Bonds [Member] | ' |
Guarantor Obligations [Line Items] | ' |
Guarantee Amount | $1,127 |
Guarantee due date | 'Various from January 2014 to June 2016 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | ' |
Net amount of existing gains and losses | $111,000 |
Economic Hedge Forward Contracts [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Derivative instruments maturity period | '45 days |
Number of derivative instruments to manage foreign currency risk | 2 |
Cash Flow Hedge Forward Contracts [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Derivative instruments maturity period | '18 months |
Derivative_Instruments_Outstan
Derivative Instruments - Outstanding Forward Contracts (Detail) (Foreign Exchange Forward [Member]) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] | Not Designated as Hedging Instruments [Member] |
Japanese Yen [Member] | Japanese Yen [Member] | Hungarian Forint [Member] | Hungarian Forint [Member] | Singapore Dollar [Member] | Singapore Dollar [Member] | British Pound [Member] | British Pound [Member] | Canadian Dollar [Member] | Canadian Dollar [Member] | Japanese Yen [Member] | Japanese Yen [Member] | Hungarian Forint [Member] | Hungarian Forint [Member] | British Pound [Member] | British Pound [Member] | Euro [Member] | Euro [Member] | Euro [Member] | Euro [Member] | Chinese Renminbi [Member] | Chinese Renminbi [Member] | Taiwanese Dollar [Member] | Taiwanese Dollar [Member] | Korean Won [Member] | Korean Won [Member] | Brazilian Real [Member] | Brazilian Real [Member] | |
USD ($) | JPY (¥) | USD ($) | HUF | USD ($) | SGD | USD ($) | GBP (£) | USD ($) | CAD | USD ($) | JPY (¥) | USD ($) | HUF | USD ($) | GBP (£) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | CNY | USD ($) | TWD | USD ($) | KRW | USD ($) | BRL | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding forward contracts | $6,122 | ¥ 625,000 | $2,603 | 570,175 | $2,346 | 2,867 | $1,010 | £ 613 | $932 | 985 | $2,797 | ¥ 294,500 | $568 | 123,000 | $1,820 | £ 1,100 | $3,887 | € 2,828 | $3,590 | € 2,743 | $1,467 | 9,000 | $908 | 27,000 | $620 | 650,000 | $106 | 250 |
Derivative_Instruments_Fair_Va
Derivative Instruments - Fair Value of Forward Contracts Outstanding (Detail) (Currency Forward Contracts [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Designated as Hedging Instruments [Member] | Cash Flow Hedge Forward Contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives, Fair Value | $204 | ' |
Designated as Hedging Instruments [Member] | Cash Flow Hedge Forward Contracts [Member] | Accrued Expenses [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives, Fair Value | 98 | ' |
Not Designated as Hedging Instruments [Member] | Economic Hedge Forward Contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives, Fair Value | 6 | 44 |
Not Designated as Hedging Instruments [Member] | Economic Hedge Forward Contracts [Member] | Accrued Expenses [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives, Fair Value | $24 | $14 |
Derivative_Instruments_Effect_
Derivative Instruments - Effect of the Derivative Instruments Net of the Underlying Exposure (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Designated as Hedging Instruments [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gains (losses) in Shareholders' equity on derivatives (effective portion) | $104 | ' | ' |
Designated as Hedging Instruments [Member] | Foreign Currency Gain (Loss) [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gains (losses) recognized in earnings on derivatives (ineffective portion and discontinued derivatives) | ' | ' | ' |
Not Designated as Hedging Instruments [Member] | Foreign Currency Gain (Loss) [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gains (losses) recognized in earnings | ($193) | ($722) | $34 |
Derivative_Instruments_Changes
Derivative Instruments - Changes in Accumulated Other Comprehensive Income (Loss) Related to Derivative Instruments (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Offsetting [Abstract] | ' |
Beginning balance December 31, 2012 | ' |
Amount reclassified to earnings | ' |
Net change | 104 |
Ending balance December 31, 2013 | $104 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Jul. 28, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2008 | Dec. 31, 2013 | Nov. 30, 2011 | Dec. 31, 2013 | ||||
vote_per_share | 2008 Stock Repurchase Program [Member] | 2008 Stock Repurchase Program [Member] | 2011 Stock Repurchase Program [Member] | 2011 Stock Repurchase Program [Member] | |||||||||||
Right | |||||||||||||||
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Authorized shares | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | |||
Preferred stock, par value | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | |||
Vote entitled for each common share outstanding | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | |||
Stock split conversion ratio | 2 | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | |||
Common stock, par value | ' | $0.00 | [1] | ' | ' | ' | $0.00 | [1] | $0.00 | [1] | ' | ' | ' | ' | ' |
Number of preferred stock purchase right for dividend distribution | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | |||
Outstanding common shares percentage to be acquired | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | |||
Repurchase of authorized common stock | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | $80,000,000 | ' | |||
Repurchase of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,578,000 | ' | 892,000 | |||
Repurchase of shares, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | 27,908,000 | |||
Repurchase of shares during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 827,000 | ' | ' | |||
Repurchase of shares during period, value | ' | ' | ' | ' | ' | 47,908,000 | ' | 10,000,000 | ' | 20,000,000 | ' | ' | |||
Cash dividend declared per common share | ' | $0.06 | $0.06 | $0.06 | $0.05 | ' | ' | ' | ' | ' | ' | ' | |||
Additional dividend declared and paid | ' | $0.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Special dividend declared and paid | ' | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Payment of dividends | ' | ' | ' | ' | ' | 0 | 66,213,000 | 15,114,000 | ' | ' | ' | ' | |||
Dividend declared | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | |||
[1] | Prior period amounts have been adjusted to reflect the two-for-one stock split effected in the form of a stock dividend which occurred in the third quarter of 2013. |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares available for grant under stock option plans | 11,165,480 | ' | ' |
Expected dividend yield | 0.00% | 1.20% | 1.10% |
Weighted-average grant-date fair values of stock options granted | $8.21 | $6.58 | $6.16 |
Number of groups within the employee population | 2 | ' | ' |
Percentage of stock options granted to senior management expected to vest | 71.00% | ' | ' |
Percentage of stock options granted to all other employees expected to vest | 69.00% | ' | ' |
Estimated forfeiture rate for unvested options for senior management | 12.00% | ' | ' |
Estimated forfeiture rate for unvested options for all non-senior management | 13.00% | ' | ' |
Increase in compensation expense due to revised estimated forfeiture rates | $300,000 | $200,000 | ' |
Reduction in compensation expense due to revised estimated forfeiture rates | ' | ' | 80,000 |
Stock-based compensation expense | 10,620,000 | 8,520,000 | 8,068,000 |
Income tax benefit recognized related to stock-based compensation expense | 3,482,000 | 2,772,000 | 2,660,000 |
Compensation expense was capitalized | 0 | 0 | 0 |
Total intrinsic values of stock options exercised | 32,096,000 | 16,296,000 | 20,108,000 |
Total fair values of stock options vested | 9,717,000 | 9,362,000 | 10,202,000 |
Total unrecognized compensation expense related to non-vested stock options | $8,464,000 | ' | ' |
Weighted-average period for unrecognized compensation expense related to non-vested stock options (years) | '1 year 2 months 5 days | ' | ' |
Stock Option and Incentive Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expiration period of stock option plan | '10 years | ' | ' |
Vesting period for stock option plans | '4 years | ' | ' |
2015 Through Expected Life of Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend yield | 1.04% | ' | ' |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Outstanding shares, beginning balance | 7,118 |
Granted, Shares | 1,740 |
Exercised, Shares | -2,445 |
Forfeited or expired, Shares | -275 |
Outstanding shares, ending balance | 6,138 |
Exercisable, Shares | 1,678 |
Options vested or expected to vest, Shares | 5,541 |
Outstanding, Weighted-Average Exercise Price, beginning balance | $12.78 |
Granted, Weighted-Average Exercise Price | $21.47 |
Exercised, Weighted-Average Exercise Price | $11.37 |
Forfeited or expired, Weighted-Average Exercise Price | $16.39 |
Outstanding, Weighted-Average Exercise Price, ending balance | $15.65 |
Exercisable, Weighted-Average Exercise Price | $11.72 |
Options vested or expected to vest, Weighted-Average Exercise Price | $15.32 |
Outstanding, Weighted-Average Remaining Contractual Term (in years) | '7 years 2 months 12 days |
Exercisable, Weighted-Average Remaining Contractual Term (in years) | '5 years 3 months 18 days |
Options vested or expected to vest, Weighted-Average Remaining Contractual Term (in years) | '7 years 1 month 6 days |
Outstanding, Aggregate Intrinsic Value | $138,302 |
Exercisable, Aggregate Intrinsic Value | 44,386 |
Options vested or expected to vest, Aggregate Intrinsic Value | $126,670 |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Risk-free rate | 2.00% | 2.00% | 2.90% |
Expected dividend yield | 0.00% | 1.20% | 1.10% |
Expected volatility | 42.00% | 44.00% | 43.00% |
Expected term (in years) | '5 years 9 months 18 days | '5 years 8 months 12 days | '5 years 6 months |
StockBased_Compensation_StockB
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $10,620 | $8,520 | $8,068 |
Product Cost of Revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 747 | 581 | 456 |
Service Cost of Revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 177 | 161 | 172 |
Research, Development, and Engineering [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 2,585 | 2,149 | 2,268 |
Selling, General, and Administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $7,111 | $5,629 | $5,172 |
Employee_Savings_Plan_Addition
Employee Savings Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Y | |||
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Minimum age eligible to defined contribution plan | 21 | ' | ' |
Maximum contributable pre tax salary of employee under defined contribution plan | 25.00% | ' | ' |
Company contribution per dollar of employee contribution | $0.50 | ' | ' |
Maximum contribution by company expressed as percentage of employee pre-tax salary | 3.00% | ' | ' |
Company contributions vest at end of two years | 20.00% | ' | ' |
Company contributions vest at end of three years | 40.00% | ' | ' |
Company contributions vest at end of four years | 60.00% | ' | ' |
Company contributions vest at end of five years | 100.00% | ' | ' |
Defined contribution plan, cost recognized | $1,423,000 | $1,362,000 | $1,218,000 |
Taxes_Additional_Information_D
Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2013 | Apr. 01, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' |
Domestic income from continuing operations before taxes | ' | ' | $29,576,000 | $36,754,000 | $24,836,000 |
Foreign income from continuing operations before taxes | ' | ' | 58,310,000 | 49,876,000 | 62,281,000 |
Decrease in tax expense upon the expiration of the statutes of limitation for certain reserves for income tax uncertainties | ' | ' | 1,790,000 | 441,000 | 808,000 |
Increase (decrease) in tax expense for the final true-up of the prior year's tax accrual upon filing the actual tax returns | ' | ' | 267,000 | 84,000 | 574,000 |
Decrease in interest and penalties | ' | ' | 854,000 | 58,000 | 2,000 |
Increase (decrease) in tax expense from write down of noncurrent deferred tax asset | ' | ' | ' | 101,000 | 201,000 |
Increase (decrease) in tax expense for the finalization of advanced pricing agreement | ' | ' | ' | ' | -155,000 |
Reserve for income taxes, total | ' | ' | 4,765,000 | 5,216,000 | ' |
Reserve for income taxes, noncurrent | ' | ' | 4,765,000 | 5,216,000 | ' |
Interest and penalties, gross | ' | ' | 357,000 | 1,192,000 | ' |
Minimum decrease in income tax expense due to release in reserves | ' | ' | 450,000 | ' | ' |
Maximum decrease in income tax expense due to release in reserves | ' | ' | 550,000 | ' | ' |
Tax years open to examination by various taxing authorities | ' | ' | '2010 through 2012 | ' | ' |
Tax years open to examination by various taxing authorities for other entities | ' | ' | '2009 through 2012 | ' | ' |
Tax years currently under audit by internal revenue service for U.S. federal returns | ' | ' | '2010 and 2011 | ' | ' |
Tax years covered through Advanced Pricing Agreement | ' | ' | ' | ' | '2006 through 2011 |
Valuation allowance | ' | ' | 642,000 | ' | ' |
Decrease in valuation allowance attributable to capital losses | ' | ' | 373,000 | ' | ' |
Net changed in valuation allowance | ' | ' | 269,000 | ' | ' |
Recognized a deferred tax asset | ' | ' | 252,000 | 520,000 | ' |
Non deductible federal and state liabilities | ' | ' | 3,662,000 | 4,945,000 | ' |
Income from expiration of the statutes of limitations relating to a tax | 354,000 | 141,000 | ' | ' | ' |
Income tax paid net | ' | ' | 8,831,000 | 13,551,000 | 18,389,000 |
Research and Development Tax Credit [Member] | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' |
Reduction in tax expense | ' | ' | 555,000 | ' | ' |
State Research and Experimentation [Member] | ' | ' | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' | ' | ' |
Tax credits | ' | ' | 5,050,000 | ' | ' |
Valuation allowance | ' | ' | $628,000 | ' | ' |
Expiry date | ' | ' | '2016 | ' | ' |
Taxes_Constituents_of_Provisio
Taxes - Constituents of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $8,720 | $11,284 | $6,711 |
State | 721 | 789 | 806 |
Foreign | 3,167 | 5,790 | 10,519 |
Current income tax expense (benefit), Total | 12,608 | 17,863 | 18,036 |
Deferred: | ' | ' | ' |
Federal | 1,580 | 428 | -812 |
State | 119 | 36 | 34 |
Foreign | 6 | 205 | -10 |
Deferred income tax expense (benefit), Total | 1,705 | 669 | -788 |
Income tax expense (benefit), continuing operations, Total | $14,313 | $18,532 | $17,248 |
Taxes_Reconciliation_of_United
Taxes - Reconciliation of United States Federal Statutory Corporate Tax Rate to Company's Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income tax provision at federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.00% | 1.00% | 1.00% |
Foreign tax rate differential | -17.00% | -14.00% | -15.00% |
Tax credit | -1.00% | ' | -1.00% |
Discrete tax events | -3.00% | ' | ' |
Other | 1.00% | -1.00% | ' |
Income tax provision | 16.00% | 21.00% | 20.00% |
Taxes_Changes_in_the_Reserve_f
Taxes - Changes in the Reserve for Income Taxes, Excluding Interest and Penalties (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Beginning Balance of reserve for income taxes | $4,024 | $4,148 |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in prior periods | 438 | 43 |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 1,048 | 642 |
Gross amounts of decreases in unrecognized tax benefits relating to settlements with taxing authorities | ' | -424 |
Gross amounts of decreases in unrecognized tax benefits as a result of the expiration of the applicable statutes of limitations | -1,102 | -385 |
Ending balance of reserve for income taxes | $4,408 | $4,024 |
Taxes_Constituents_of_Deferred
Taxes - Constituents of Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current deferred tax assets: | ' | ' |
Inventory and revenue related | $5,614,000 | $4,303,000 |
Bonuses, commissions, and other compensation | 1,377,000 | 1,280,000 |
Other | 1,292,000 | 1,093,000 |
Gross current deferred tax assets | 8,283,000 | 6,676,000 |
Valuation allowance | -672,000 | -307,000 |
Net current deferred tax assets | 7,611,000 | 6,369,000 |
Noncurrent deferred tax assets: | ' | ' |
Stock-based compensation expense | 7,488,000 | 7,242,000 |
Federal and state tax credit carryforwards | 5,418,000 | 9,747,000 |
Depreciation | 1,831,000 | 1,819,000 |
Acquired completed technologies and other intangible assets | 835,000 | 1,119,000 |
Unrealized investment gains and losses | 601,000 | 1,075,000 |
Correlative tax relief and deferred interest related to reserves | 252,000 | 520,000 |
Capital loss carryforward | ' | 373,000 |
Acquired in-process technology | ' | 90,000 |
Other | 1,178,000 | 1,960,000 |
Gross noncurrent deferred tax assets | 17,603,000 | 23,945,000 |
Noncurrent deferred tax liabilities: | ' | ' |
Nondeductible intangible assets | -3,662,000 | -4,945,000 |
Other | -548,000 | -2,171,000 |
Gross noncurrent deferred tax liabilities | -4,210,000 | -7,116,000 |
Valuation allowance | -1,086,000 | -1,182,000 |
Net noncurrent deferred tax assets | $12,307,000 | $15,647,000 |
Weighted_Average_Shares_Additi
Weighted Average Shares - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Jul. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Stock split conversion ratio | 2 | 2 | ' | ' |
Stock options to purchase anti-dilutive common stock | ' | 1,385,901 | 1,790,911 | 2,003,000 |
Weighted_Average_Shares_Calcul
Weighted Average Shares - Calculation of Weighted-Average Shares (Detail) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Earnings Per Share [Abstract] | ' | ' | ' | |||
Basic weighted-average common shares outstanding | 86,946 | [1] | 85,666 | [1] | 83,718 | [1] |
Effect of dilutive stock options | 1,955 | 1,614 | 1,806 | |||
Diluted weighted-average common and common-equivalent shares outstanding | 88,901 | [1] | 87,280 | [1] | 85,524 | [1] |
[1] | Prior period results have been adjusted to reflect the two-for-one stock split effected in the form of a stock dividend which occurred in the third quarter of 2013. |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Customer | Customer | Customer | |
Segment | |||
Segment Information [Line Items] | ' | ' | ' |
Number of reportable segments | 2 | ' | ' |
Number of customers accounted for greater than 10% of total revenue | 0 | 0 | 0 |
Product Revenue [Member] | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' |
Maximum percentage of revenue accountability | 10.00% | 10.00% | 10.00% |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Information About Segments (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Product revenue | $326,786 | $295,588 | $297,310 |
Service revenue | 27,100 | 28,691 | 24,604 |
Depreciation and amortization | 11,102 | 10,858 | 9,756 |
Goodwill and intangibles | 96,412 | 96,459 | 100,939 |
Operating income | 86,368 | 83,407 | 85,355 |
Operating Segments [Member] | MVSD [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Product revenue | 298,186 | 263,308 | 264,956 |
Service revenue | 9,465 | 10,388 | 8,717 |
Depreciation and amortization | 9,569 | 9,505 | 8,445 |
Goodwill and intangibles | 90,718 | 90,390 | 94,322 |
Operating income | 99,383 | 89,378 | 94,201 |
Operating Segments [Member] | SISD [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Product revenue | 28,600 | 32,280 | 32,354 |
Service revenue | 17,635 | 18,303 | 15,887 |
Depreciation and amortization | 1,078 | 963 | 908 |
Goodwill and intangibles | 5,694 | 6,069 | 6,617 |
Operating income | 8,990 | 11,941 | 10,301 |
Reconciling Items [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 455 | 390 | 403 |
Operating income | ($22,005) | ($17,912) | ($19,147) |
Segment_and_Geographic_Informa4
Segment and Geographic Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Product revenue | $326,786 | $295,588 | $297,310 |
Service revenue | 27,100 | 28,691 | 24,604 |
Long-lived assets | 135,686 | 134,106 | 135,710 |
United States [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Product revenue | 103,610 | 87,877 | 87,166 |
Service revenue | 13,505 | 13,248 | 10,796 |
Long-lived assets | 118,619 | 120,596 | 121,174 |
Europe [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Product revenue | 104,497 | 95,376 | 100,984 |
Service revenue | 6,012 | 6,083 | 6,343 |
Long-lived assets | 5,059 | 4,939 | 10,811 |
Japan [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Product revenue | 33,763 | 38,151 | 45,295 |
Service revenue | 4,103 | 5,043 | 4,147 |
Long-lived assets | 1,732 | 2,229 | 2,773 |
Other [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Product revenue | 84,916 | 74,184 | 63,865 |
Service revenue | 3,480 | 4,317 | 3,318 |
Long-lived assets | $10,276 | $6,342 | $952 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reserve for Uncollectible Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | $1,131 | $1,240 | $1,235 |
Charged to Costs and Expenses | 286 | 63 | 173 |
Charged to Other Accounts | ' | ' | ' |
Deductions | -77 | -184 | -154 |
Other | 14 | 12 | -14 |
Balance at End of Period | 1,354 | 1,131 | 1,240 |
Reserve for Excess and Obsolete Inventory [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 3,414 | 4,359 | 5,052 |
Charged to Costs and Expenses | 2,368 | 949 | 1,078 |
Charged to Other Accounts | ' | ' | ' |
Deductions | -1,009 | -1,924 | -1,688 |
Other | 120 | 30 | -83 |
Balance at End of Period | 4,893 | 3,414 | 4,359 |
Deferred Tax Valuation Allowance [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 1,489 | 3,400 | 373 |
Charged to Costs and Expenses | 642 | 546 | 3,027 |
Charged to Other Accounts | ' | ' | ' |
Deductions | -373 | -2,457 | ' |
Balance at End of Period | $1,758 | $1,489 | $3,400 |